-----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, CVGiyNXBM8bG5RXvzo8g6XrUDi32IHV31llHTKdh811PZlaoqFyM4yfDFXd/Bilu ppFbAKwBK5BlQQPEQ14hgw== 0000950131-98-002806.txt : 19980430 0000950131-98-002806.hdr.sgml : 19980430 ACCESSION NUMBER: 0000950131-98-002806 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980428 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: 98602581 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: 98602582 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 STATEMENT FOR MARCH 1998 Merrill Lynch Investment Partners Inc. [LOGO] ML Principal Protection L.P. Monthly Statement March 1998 - ---------------------------- [LOGO] Merrill Lynch ML Principal Protection L.P. Dear Limited Partner, The Net Asset Value ("NAV") of ML Principal Protection L.P. (the "Fund") decreased during March. Please see the accompanying summary financial information for the NVA of your series of Units. Quarterly Market Summary During the first quarter of 1998, the Fund's NAV decreased as profitable trading in the interest rate, currency, stock index and agriculture markets was offset by losses in the energy and metals markets. The Fund's most profitable positions during the quarter were in the global interest rate markets, particularly in European bonds where an extended bond market rally continued despite an environment of robust growth in the United States, Canada and the United Kingdom, as well as a strong pick-up in growth in continental Europe. Specifically, strong gains were recorded in French and German bonds. Gold and crude oil trading resulted in losses. Gold prices drifted sideways and lower as Asian demand continued to slow and demand in the Middle East was affected by low oil prices. Initially buoyed on concerns about a U.S.-led military strike against Iraq, crude oil fell to a nine year low, as the globally warm winter, the return of Iraq as a producer and the Asian economic crisis added to OPEC's supply glut problems. Trading results in stock index markets were mixed, but marginally profitable, despite a strong first-quarter performance by the U.S. equity market as several consecutive weekly gains were recorded with most market averages setting new highs. Results in currency trading were also mixed, but marginally profitable. Strong gains were realized in positions on the Swiss franc, which weakened versus the U.S. dollar, while trading losses resulted from positions in the Deutsche mark and the Australian dollar. Agricultural commodity markets provided profits. Live cattle and hog prices trended downward throughout the quarter resulting in strong gains. Cotton prices moved mostly upward during the quarter, but dropped off sharply at the end of March, causing losses. ----------------------------------------------------------------- Effective April 1, 1998, Millburn Ridgefield Corporation will begin trading its Diversified Program on behalf of the Fund. Millburn Ridgefield currently manages a total of approximately $152 million in this technical, trend- 2 following Program. For the period from January 1, 1993 through January 31, 1998, the Program's worst monthly rate of return was negative 10.54% and the best monthly return was 19.38%. The Program's annualized standard deviation of return was 16%. ---------------------------------------------------------------- As of April 1, 1998, the Fund's assets were allocated as follows: Trading Advisor % Allocation - --------------- ------------ Millburn Ridgefield Corporation 5.58 Bridgewater Associates, Inc. 5.49 John W. Henry & Company, Inc. 4.82 ARA Portfolio Management Company, L.L.C. 4.69 AIS Futures Management, L.L.C. 4.55 Trendstat Capital Management, Inc. 4.55* Quantitative Financial Strategies, Inc. 4.35 Graham Capital Management, L.P. 4.02* Grinham Managed Futures Pty Ltd. 3.82 Dominion Capital Management, Inc. 3.75 Hill Financial Group, Ltd. 3.68 Chesapeake Capital Corporation 3.66 Millennium Global Investments Ltd. 3.35 Range Wise, Inc. 3.28 Allied Irish Capital Management Ltd. 2.68** Fundamental Futures, Inc. 2.01 Telesis Management Inc. 1.67 Northfield Trading L.P. 1.00 Cash 33.05*** ------- 100.00 *Each of these advisors is currently managing the Fund's assets allocated to it as if the advisor were managing 50% more equity than the capital allocation indicated above. **This advisor is currently managing the Fund's assets allocated to it as if the advisor were managing 100% more equity than the capital allocation indicated above. ***Reflects blended allocations of the different series. 3 1998 Year-to-Date Gross Total Trading Results* Through March 31 Agriculture $ 208,150 Currencies 422,105 Energy (1,163,062) Financial Instruments 519,712 Metals (94,054) Stock Indices 212,737 ----------- Total $ 105,588 *Before deduction of any fees and charges ----------------------------------------- Mr. Michael A. Karmelin, Chief Financial Officer, Vice President and Treasurer of Merrill Lynch Investment Partners Inc. ("MLIP"), has announced that he will resign from MLIP effective April 15, 1998 to pursue other business opportunities. MLIP expects to announce his successor in the near future. ----------------------------------------- MLIP apologizes for the delay in providing the K-1 tax information for your investment in the Fund. We at MLIP have always made it a high priority to have annual K-1s in the mail to our investors during February. Unfortunately, this year due to a confluence of events, including the significant tax changes resulting from passage of the Taxpayer Relief Act of 1997 (as disclosed in the August 1997 monthly statement for our funds) and various computer system upgrades, mailing the K-1s was unavoidably delayed. Please be assured that the K-1 process received the highest priority, this year as every year. We are committed that next year's K-1s will again be in the mail in February. ----------------------------------------- Although the markets during the first quarter of 1998 have proven somewhat difficult, we look forward with confidence to the investment challenges of the remainder of the year and thank you for your continued support. Sincerely, John R. Frawley, Jr. President & Chief Executive Officer Merrill Lynch Investment Partners, Inc. (General Partner) 4 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. 5 ML Principal Protection L.P. March 31, 1998 Statement of Changes in Net Asset Value Net Asset Value (974,383.57 Units) at February 28, 1998 $ 103,204,095 Net Income/(Loss) for March 1998 104,662 Redemptions of 21,027.44 Units (2,254,308) -------------- Net Asset Value (953,356.13 Units) at March 31, 1998 $ 101,054,449 =============== Net Asset Value at March 31, 1998 Series A Units $ 113.37* =============== Series B Units $ 108.81* =============== Series C Units $ 107.81* =============== Series D Units $ 109.59* =============== Series E Units $ 109.05* =============== Series F Units $ 103.96* =============== Series G Units $ 106.19* =============== Series H Units $ 106.28* =============== Series K Units $ 104.33 =============== Series L Units $ 101.61 =============== Series M Units $ 103.15 =============== Series N Units $ 99.46 =============== *The Net Asset Value per Unit does not include the annual distributions paid to Unitholders. - -------------------------------------------------------------------------------- Statement of Income/(Loss) Revenues: March ----- Realized Profit/(Loss) $ (719,295) Change in Unrealized Profit/(Loss) 1,008,442 --------------- Total Trading Results $ 289,147 Interest Income 494,947 --------------- Total Revenues 784,094 Expenses: Brokerage Commissions $ 508,883 Administrative Fees 14,539 Allocation of New Profit Share 156,583 --------------- Total Expenses $ 680,005 --------------- Net Income/(Loss) Before Minority Interest 104,089 --------------- Minority Interest 573 --------------- Net Income/(Loss) $ 104,662 =============== 6 To the best of the knowledge and belief of the undersigned the information contained in this report is accurate and complete. /s/ John R. Frawley, Jr. -------------------------------------- John R. Frawley, Jr. President & Chief Executive Officer Merrill Lynch Investment Partners Inc. 7 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 1-800-765-0995 8 -----END PRIVACY-ENHANCED MESSAGE-----