-----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, SVaG60cljqwIRFzWMt6upI/HhA+gqPi6NVOKTtY5QdL+ypGKwUNu/RT7wmd1rGvD s638vpwQNwdGiwmuIVg1ug== 0000950131-97-005461.txt : 19970912 0000950131-97-005461.hdr.sgml : 19970912 ACCESSION NUMBER: 0000950131-97-005461 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19970909 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: SEC FILE NUMBER: 333-07593 FILM NUMBER: 97677301 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: 97677302 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 - JUNE 1997 Filed pursuant to Rule 424(b)(3) Registration No. 333-7593 ML Principal Protection L.P. Dear Limited Partner, The Net Asset Value ("NAV") of ML Principal Protection L.P. (the "Fund") increased during June. Please see the accompanying summary financial information for the NAV of your series of Units. Trading results improved in June as clear price trends returned to some markets, such as global equities. Stock index, currency, interest rate and metals trading recorded profits while trading losses were incurred in energy and agricultural commodity markets. In June, equity markets worldwide trended mostly upward. The U.S. stock market continued to rally to several new highs in June, before faltering somewhat by month-end. Non-U.S. stock markets, such as German and Australian, also moved higher in June. Trading in the Standard & Poor's 500(R) Stock, German Stock and the Australian All Ordinaries indices produced profits. Metals trading recorded overall profits. Gold prices trended downward through most of the month, following a price surge on June 5 as a halt in Russian precious metals exports left supplies scarce. In contrast, base metals prices experienced sharp price volatility. For example, initially copper futures prices rose to their highest levels in a year, as world inventories dwindled amid production problems, but prices fell dramatically by month-end. Aluminum prices moved similarly to copper. Difficult trading conditions in energy markets throughout June resulted in losses. Crude oil trended downward for the first half of the month, before a sudden price reversal occurred amid speculation that the resumption of Iraq exports could be delayed until August, reducing supplies despite growing demand. Unleaded gas prices fell early in June, but remained range-bound for the remainder of the month. The price movement of heating oil proved to be even more trendless than unleaded gas, as conflicting reports were released regarding petroleum production supply and demand factors. Effective July 1, 1997, the program traded on behalf of the Fund by AIS Futures Management, Inc. ("AIS") has been changed from AIS's MAAP Program (Two-Four Times Leverage) to AIS's MAAP Program (Up to Six Times Leverage). Using the MAAP Program (Up to Six Times Leverage), AIS's best monthly rate of return was 25.07% and its worst monthly rate of return was (18.71)%. As of May 31, 1997, AIS was managing approximately $130 and $56 million of customer funds ("notional" equity excluded) in the MAAP Program (Two-Four Times Leverage) and the MAAP Program (Up to Six Times Leverage), respectively. As of July 1, 1997, the Fund's assets were allocated as follows: Trading Adviser % Allocation - --------------- ------------ Chesapeake Capital Corporation 11.81 John W. Henry & Company, Inc. 9.33 AIS Futures Management, Inc. 5.29 ARA Portfolio Management Company, L.L.C. 5.29 Graham Capital Management, L.P. 5.29* Trendstat Capital Management, Inc. 5.29 Hill Financial Group, Ltd. 4.66 Millburn Ridgefield Corporation 4.48 Quantitative Financial Strategies, Inc. 3.42 Range Wise, Inc. 3.11 Allied Irish Capital Management Ltd. 2.67 Fundamental Futures, Inc. 1.55 Cash 37.81** ------ 100.00% *Graham Capital Management, L.P. is currently managing the Fund's assets allocated to it as if Graham were managing 50% more equity than the capital allocation indicated above. **Reflects blended allocations of the different series. 1997 Year-to-Date Gross Total Trading Results* Thru June 30 Agriculture $1,750,969 Currencies 1,402,897 Energy (932,627) Financial Instruments (1,052,121) Metals 613,072 Stock Indices 536,590 ---------- Total $2,318,780 *Before deduction of any fees and charges As planned, effective June 30, 1997, the Fund paid the annual fixed-rate distribution to all Series D and Series H Unitholders in the amount of $3.50. In addition, the Fund paid discretionary distributions to all Series D and Series H Unitholders in the amounts of $1.00 and $2.50, respectively. The July 1, 1997 NAVs of the Series D and H Units are reduced by the amount of these distributions. On June 24, 1997, the Commodity Futures Trading Commission ("CFTC") accepted an Offer of Settlement from Merrill Lynch Futures Inc. ("MLF") and others, in a matter captioned "In the Matter of Mitsubishi Corporation and Merrill Lynch Futures Inc., et al.", CFTC Docket No. 97-10, pursuant to which MLF, without admitting or denying the allegations against it, consented to a finding by the CFTC that MLF had violated Section 4c(a)(A) of the Commodity Exchange Act (the "Act"), relating to wash sales, and CFTC Regulation 1.37(a), relating to recordkeeping requirements. MLF agreed to cease and desist from violating Section 4c(a)(A) of the Act and Regulation 1.37(a), and to pay a civil monetary penalty of $175,000. James M. Bernard, formerly a Senior Vice President of Merrill Lynch Investment Partners Inc., is no longer with the firm. The Fund continues to maintain its diversified exposure to the agriculture, currency, energy, financial and metals markets which helped make the overall profit possible for June. We look forward to future opportunities for profitability as favorable market conditions arise. 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. June 30, 1997 Statement of Changes in Net Asset Value
Net Asset Value (755,150.21 Units) at May 31, 1997 $ 80,934,266 Net Income/(Loss) for June 1997 564,544 Less Redemptions of 10,687.63 Units (1,139,104) ------------ Net Asset Value (744,462.58 Units) at June 30, 1997 $ 80,359,706 ============ Net Asset Value at June 30, 1997 Series A Units $ 113.05* ============ Series B Units $ 110.01* ============ Series C Units $ 104.22* ============ Series D Units $ 110.44* ============ Series E Units $ 110.84* ============ Series F Units $ 105.06* ============ Series G Units $ 102.65* ============ Series H Units $ 108.73 ============ Series K Units $ 100.71 ============
* The Net Asset Value per Unit does not include the annual distributions paid to Unitholders. Statement of Income/(Loss)
June ---- Revenues: Realized Profit/(Loss) $ 14,716 Change in Unrealized Profit\(Loss) 601,581 ---------- Total Trading Results 616,297 Interest Income 393,440 ---------- Total Revenues 1,009,737 Expenses: Brokerage Commissions 378,304 Administrative Fees 10,809 Allocation of New Profit Share 43,377 Organizational Expenses 6,641 ---------- Total Expenses 439,131 ---------- Net Income/(Loss) Before Minority Interest 570,606 ---------- Minority Interest (6,062) ---------- Net Income/Loss $ 564,544 ==========
To the best of the knowledge and belief of the undersigned the information contained in this report is accurate and complete. /s/ Michael A. Karmelin --------------------------------- Michael A. Karmelin 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 1-800-765-0095 -----END PRIVACY-ENHANCED MESSAGE-----