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MERRILL LYNCH INVESTMENT PARTNERS INC.
[LOGO]
ML JWH STRATEGIC
ALLOCATION FUND L.P.
MONTHLY STATEMENT DECEMBER 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 8.23% in December to $154.34 per Unit on December 31, 1998
from $142.61 on November 30, 1998.
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SPECIAL REMINDER
As tax season approaches and Merrill Lynch Investment Partners Inc. ("MLIP")
prepares for distribution of the Fund's tax information for 1998 on
Schedule K-1, investors should take steps to confirm that MLIP has their
current address. Please notify MLIP in writing of any recent or impending
change of address by notice mailed to Merrill Lynch Investment Partners Inc.,
World Financial Center, South Tower, 6th Floor, New York, NY 10080,
Attention: Winston Clinton. Thank you.
MLIP plans to mail the Schedule K-1 to investors during the month of February.
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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 and Chief Executive Officer
MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
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QUARTERLY MARKET REVIEW BY THE TRADING ADVISOR
JOHN W. HENRY & COMPANY, INC.
ML JWH Strategic Allocation Fund L.P. recorded substantial gains in the three
month period ended December 31, 1998, largely reflecting profitable positions
at quarter end in global currencies, interest rates and energy.
The performance of the Fund's programs for much of the quarter was mixed as
financial markets seemed to reverse direction and overall volatility
increased, resulting in an unfavorable trading environment. The worldwide
flight from risk that had sapped the financial markets of liquidity for much
of the third quarter shifted in the fourth quarter as investors responded
favorably to interest rate cuts by the U.S. Federal Reserve Bank intended to
avert a global credit crisis. The significant surge in liquidity boosted the
U.S. stock market to all-time highs, reversing its decidedly bearish position
of the previous quarter. After hitting price lows not seen since August, the
bond market also changed direction. Currency markets veered as well, with the
U.S. dollar rallying relative to most major currencies.
For the most part, commodity prices were indifferent to the change in
liquidity, trading in ranges for much of the period. Regardless of what the
Fed does to eliminate financial market strains, commodities usually are
affected by longer term production factors and demand. However, energy
markets proved the exception: tossed on the one hand by renewed conflict in
the Middle East and on the other by ample global inventory, crude oil prices
remained choppy, unable to find a stable price level.
By quarter's end, markets appeared to be more calm and underlying trends were
evident in a number of financial products. Gains were greatest in Japanese
Government bond positions as the yield rose to 2.01%, the highest level in
over 15 months, on reports that the Japanese Finance Ministry would reduce
its purchase of outstanding bonds and would instead flood the
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market with new issues in the new year. Worldwide trading volume was light in
the currency markets pending the launch of the euro on January 1. Profits
were recorded in crude oil, where prices rallied briefly with U.S. military
air strikes in Iraq, only to resume a downward trend at the end of December.
On balance for the quarter, profitable positions in global currencies,
interest rates and energy and small gains in metals offset losses in stock
indices and agricultural commodities.
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.
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ML JWH STRATEGIC ALLOCATION FUND L.P.
DECEMBER 31, 1998
STATEMENT OF CHANGES
IN NET ASSET VALUE
(UNAUDITED)
<TABLE>
<S> <C>
Net Asset Value (1,994,638 Units) at
November 30, 1998 $284,450,895
Additions of 81,756 Units 11,659,223
Net Income/(Loss) for December 1998 24,355,378
Redemptions of 38,568 Units (5,952,585)
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Net Asset Value (2,037,826 Units) at
December 31, 1998 $314,512,911
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Net Asset Value per Unit at
December 31, 1998 $ 154.34
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<CAPTION>
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STATEMENT OF INCOME/(LOSS)
(UNAUDITED)
December
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<S> <C>
Revenues:
Realized Profit/(Loss) $ 17,964,486
Change in Unrealized Profit/(Loss) 7,611,046
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Total Trading Results 25,575,532
Interest Income 1,226,682
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Total Revenues 26,802,214
Expenses:
Brokerage Commissions 2,086,278
Administrative Fees 67,299
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Total Expenses 2,153,577
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Income/(Loss) Before Special Profit
Share Allocation and Minority Interest 24,648,637
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Minority Interest (11,773)
Special Profit Share Allocation (281,486)
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Net Income/(Loss) $ 24,355,378
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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
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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
