<PAGE>
MERRILL LYNCH INVESTMENT PARTNERS INC.
[LOGO]
ML JWH STRATEGIC
ALLOCATION FUND L.P.
MONTHLY STATEMENT SEPTEMBER 1998
[MERRILL LYNCH LOGO]
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ML JWH STRATEGIC ALLOCATION FUND L.P.
Dear Limited Partner,
The Net Asset Value per Unit of ML JWH Strategic Allocation Fund L.P. (the
"Fund") increased 7.53% in September to $153.91 per Unit on September 30, 1998
from $143.13 on August 31, 1998.
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John W. Henry & Company, Inc. ("JWH") has informed the General Partner that,
effective September 21, 1998, the Investment Policy Committee of JWH determined
to reallocate the Fund's assets among the JWH trading programs used for the Fund
as set forth below:
<TABLE>
<CAPTION>
PREVIOUS NEW
ALLOCATION ALLOCATION
5/8/98 9/21/98
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<S> <C> <C>
Original Investment Program 18.6% 20.0%
Global Financial Portfolio 13.9% 15.0%
Financial & Metals Portfolio 19.7% 12.5%
G-7 Currency Portfolio 11.5% 12.5%
Global Diversified Portfolio 9.0% 10.0%
Dollar Program 6.8% 7.5%
Worldwide Bond Program 4.6% 5.0%
Global Analytics 15.9% 17.5%
</TABLE>
The new allocation will return the Fund to the allocation level of January 1,
1998.
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Set forth below is a report from John W. Henry & Company, Inc. commenting on the
Fund's performance for last quarter. This report is included for the
convenience of the Fund's investors and may not reflect the opinions or
recommendations of Merrill Lynch Investment Partners Inc. ("MLIP"). MLIP takes
no responsibility for the accuracy of any information contained in the report.
Sincerely,
John R. Frawley, Jr.
President & Chief Executive Officer
MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
<PAGE>
QUARTERLY MARKET REVIEW BY THE TRADING ADVISOR
JOHN W. HENRY & COMPANY, INC.
ML JWH Strategic Allocation Fund L.P. recorded strong gains in the three month
period ended September 30, 1998 - capitalizing for the most part on trending
opportunities in interest rate and agricultural commodity markets worldwide - in
the majority of the Fund's programs, reversing the modest losses experienced in
the first half of the year. This favorable performance for the quarter was in
direct contrast with the performance of world equity markets, which were down
substantially.
Worldwide economic turmoil was the focus of investors during the quarter.
Global investor uncertainty, the Russian default on its debt, decline in
financial market liquidity, fears of recession, commodity deflation and a flight
to quality, all contributed to the development of trends in key markets. Chief
among these trends were the rising government bond markets, particularly in
Germany and the U.S., where yields - which move in the opposite direction to
prices - fell to historic lows. Positions in this sector resulted in
substantial gains for the quarter.
Prices for agricultural commodities continued to be pressured downward by
reduced demand from emerging markets as well as expectations of large crops from
producer nations, the result of nearly ideal growing conditions. Corn and
sugar prices plummeted to 11-year lows on the bearish fundamentals; positions in
both commodities were profitable as were positions in wheat, cocoa, soybeans,
soybean oil and meal, offsetting losses in other commodities traded.
Currencies afforded fewer opportunities for profit. The U.S. dollar, rangebound
against the Japanese yen for much of the quarter, began a steep decline in
September, as Japanese officials renewed their threats of intervention in the
currency markets and prospects for passage of a bank reform bill in Parliament
improved. The German mark rose against its major counterparts, including the
dollar which suffered from its association with the declining U.S. equity
market. Trends in other currencies also shifted, negatively impacting positions
taken.
On balance for the quarter, profitable positions in interest rates and
agricultural commodities more than offset losses in currencies, metals and stock
indices. Performance in energy markets was mixed.
<PAGE>
FOR THE EXCLUSIVE USE OF INVESTORS IN ML JWH STRATEGIC ALLOCATION FUND 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 THE CURRENT PROSPECTUS 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.
<PAGE>
ML JWH STRATEGIC ALLOCATION FUND L.P.
SEPTEMBER 30, 1998
STATEMENT OF CHANGES
IN NET ASSET VALUE
(UNAUDITED)
<TABLE>
<S> <C>
Net Asset Value (1,725,237 Units)
at August 31, 1998 $ 246,927,915
Additions of 137,254 Units 19,645,165
Net Income/(Loss) for September 1998 20,074,174
Redemptions of 12,117 Units (1,864,927)
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Net Asset Value (1,850,374 Units) at
September 30, 1998 $ 284,782,327
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Net Asset Value per Unit at
September 30, 1998 $ 153.91
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-------------
</TABLE>
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STATEMENT OF INCOME/(LOSS)
(UNAUDITED)
<TABLE>
<CAPTION>
September
-------------
<S> <C>
Revenues:
Realized Profit/(Loss) $ 4,086,573
Change in Unrealized Profit/(Loss) 20,058,904
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Total Trading Results 24,145,477
Interest Income 1,171,994
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Total Revenues 25,317,471
Expenses:
Brokerage Commissions 1,897,781
Administrative Fees 61,219
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Total Expenses 1,959,000
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Income/(Loss) Before Special Profit
Share Allocation and Minority Interest 23,358,471
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Minority Interest (10,818)
Special Profit Share Allocation (3,273,479)
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Net Income/(Loss) $ 20,074,174
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</TABLE>
TO THE BEST OF THE KNOWLEDGE AND BELIEF OF THE UNDERSIGNED THE INFORMATION
CONTAINED IN THIS REPORT IS ACCURATE AND COMPLETE.
/s/ Jo Ann Di Dario
---------------------------------------
Jo Ann Di Dario
Chief Financial Officer
MERRILL LYNCH INVESTMENT PARTNERS, INC.
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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
JWHSDOM
