<PAGE>
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-75299
ML JWH STRATEGIC ALLOCATION FUND L.P.
SUPPLEMENT DATED FEBRUARY 4, 2000 TO PROSPECTUS
DATED MAY 4, 1999
In accordance with the rules of the Commodity Futures Trading
Commission (the "CFTC"), this Supplement updates certain information contained
in the Prospectus dated May 4, 1999 (the "Prospectus") of ML JWH Strategic
Allocation Fund L.P. (the "Fund"). All capitalized terms used in this Supplement
have the same meaning as in the Prospectus.
Prospective investors in the Fund should review carefully the contents
of both this Supplement and the Prospectus.
This Supplement contains certain updated information relating to the
Fund, including:
(1) an updated version of the performance record of the Fund
set forth on page 15 of the Prospectus;
(2) a description of the upcoming termination of the
exclusivity arrangement between Merrill Lynch Investment
Partners Inc. ("MLIP") and John W. Henry & Company, Inc.
("JWH-REGISTERED TRADEMARK-");
(3) the reduction in the ongoing production credits to
financial consultants; and
(4) the updated performance record of the JWH trading programs
set forth on pages 39-44 and 56-64 of the Prospectus and
updated information related to the description of JWH set
forth on pages 48-51 and 69 of the Prospectus.
The updated performance records must be read in conjunction with the
notes on pages 16 and 51-55 of the Prospectus.
* * * * * * * * * * * * * * * * * * *
All information in the Prospectus is restated pursuant to this
Supplement, except as updated hereby.
------------------------------
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL
OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
------------------------------
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF
PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED UPON THE
ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT
------------------------------
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
SELLING AGENT
MERRILL LYNCH INVESTMENT PARTNERS INC.
GENERAL PARTNER
<PAGE>
PERFORMANCE OF THE FUND
The following are the monthly rates of return and the month-end Net Asset
Value per Share from the inception of the Fund through December 31, 1999.
ML JWH STRATEGIC ALLOCATION FUND L.P.
JULY 15, 1996-DECEMBER 31, 1999
AGGREGATE SUBSCRIPTIONS: $430,989,741.93
CURRENT CAPITALIZATION: $360,852,409.21
WORST MONTHLY DECLINE (MONTH/YEAR): (7.80)% (11/98)
WORST PEAK-TO-VALLEY DECLINE (MONTH/YEAR): (12.54)% (7/99-12/99)
NET ASSET VALUE PER SHARE, DECEMBER 31, 1999: $146.40
NUMBER OF SHAREHOLDERS, DECEMBER 31, 1999: 9399
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
MONTH MONTHLY RATES OF RETURN MONTH-END NAV PER UNIT
<S> <C> <C>
1996
July (1/2 mo.) (1.02)% $98.98
August (0.09) 98.89
September 5.49 104.32
October 10.20 114.86
November 6.62 122.68
December 0.47 123.16
COMPOUND RATE OF RETURN 23.16%
(5 1/2 MOS.)
1997
January 3.01% $126.87
February (0.03) 126.83
March 0.07 126.92
April (0.46) 126.34
May (3.11) 122.41
June 0.27 122.74
July 7.11 131.47
August (3.31) 127.12
September (0.66) 126.28
October 2.58 129.54
November 0.97 130.80
December 3.52 135.40
COMPOUND ANNUAL RATE OF RETURN 9.94%
1998
January (1.51)% $133.35
February (0.66) 132.47
March 0.77 133.48
April (3.38) 128.97
May 4.04 134.18
June (1.54) 132.11
July (1.22) 130.50
August 9.68 143.13
September 7.53 153.91
October 0.83 155.19
November (8.11) 142.61
December 8.23 154.34
COMPOUND ANNUAL RATE OF RETURN 13.99%
1999
January (2.82)% $149.98
February 2.56 153.82
March (1.11) 152.11
April 4.30 158.66
May (0.15) 158.41
June 3.69 164.26
July (2.81) 159.64
August 0.07 159.75
September (2.26) 156.13
October (7.99) 143.66
November 2.25 146.91
December (0.35) 146.40
COMPOUND ANNUAL RATE OF RETURN (5.15)%
- ----------------------------------------------------------------------------------------------
</TABLE>
CUMULATIVE STATISTICS
CORRELATION COEFFICIENT VS. S&P 500: (0.04) /
BETA VS. S&P 500: (0.03) / SHARPE RATIO: 0.46
ALL FINANCIAL INFORMATION RELATES TO THE
PERFORMANCE OF THE JOINT VENTURE BETWEEN THE
FUND AND JWH, NOT OF THE FUND ITSELF.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
-1-
<PAGE>
Effective February 29, 2000, MLIP and JWH have agreed to terminate
their exclusivity arrangement, as described on page 6 of the Prospectus, whereby
MLIP had the exclusive right to market both public and private funds using the
JWH Strategic Allocation Program with minimum investment amounts of less than $5
million. The termination of the exclusivity arrangement should have no adverse
impact on the Fund or Limited Partners.
Since January 1, 2000 has passed, the risk factor regarding Year 2000
Issues set forth on page 12 of the Prospectus and the related discussion set
forth on pages 22-23 have been updated as follows: "Although the advent of the
Year 2000 proved to be uneventful for most computer functions, it is unclear
that all the related systemic issues have been resolved. Furthermore, there
may be other computer critical dates or events which could result in
material disruptions to the computer programs employed by the Fund as well as by
its service providers."
In respect of sales of all Units sold after February 1, 2000, the
ongoing production credits to financial consultants, as described on page 73 of
the Prospectus, will be reduced from 3% per annum to 2% per annum.
The following information updates the description of John W. Henry &
Company, Inc. ("JWH") set forth on pages 48-51 and 69 of the Prospectus.
JWH PRINCIPALS
Mr. David I. Ginsberg is a member of the JWH Board of Directors and
special advisor to the chairman. Mr. Ginsberg joined JWH in October 1999. He
served as the managing director of the Multi-Manager Group at Global Asset
Management ("GAM") from its inception in September 1989 until July 1995. This
GAM group was, and continues to be, one of the largest multi-advisor groups
specializing in hedge funds. Since leaving GAM, Mr. Ginsberg has been a private
investor. Mr. Ginsberg received a BA from Kenyon College and an MBA with a
concentration in Finance from Boston University.
Mr. Ginsberg is a member of the board of directors of GAM Diversity,
Inc., a global multi-advisor hedge fund with assets in excess of $1 billion that
specializes in hedge funds, and a director of the Adelphi Europe Fund, a hedge
fund specializing in European equities. He is also vice chairman of the Florida
Marlins Baseball Club LLC.
Mr. John A. Wing is a member of the JWH board of directors. Mr. Wing
is also a professor of Law and Finance at the Illinois Institute of Technology
(IIT) and director of its Center for the Study of Law and Financial Markets.
Before joining JWH in February 2000 and IIT in July 1998, he was chairman of the
board and chief executive officer of ABN-AMRO Incorporated, formerly The Chicago
Corporation. Mr. Wing joined The Chicago Corporation as its chief executive
officer in 1981 and continued to lead the firm following its merger with
ABN-AMRO in January 1997 until his retirement in July 1998.
Mr. Wing is currently chairman of the board for the Risk Management
Committee of the Commercial Club and of Market Liquidity Holding, LLC. He is
also a director of AmerUs Life Holdings. In addition, he has served as a
director of the Midwest Stock Exchange, The Chicago Board Options Exchange,
Securities Industry Association, Futures Industry Association, National Futures
Association and Chicago Capital Fund. Mr. Wing has also been a governor of the
National Association of Securities Dealers, a member of the New York Stock
Exchange Regional Firms Committee, and a member of the Chicago Mercantile
Exchange's special panel to review trading rules and practices. Mr. Wing has
also served as a trustee of IIT and chairman of the Board of Overseers of its
Stuart School of Business. He received a BA in Economics from Union College and
an LLB from George Washington University.
Ms. Wendy B. Goodyear is vice president, investor services of JWH.
Mr. William G. Kelley is no longer a principal of JWH.
LEGAL CONCERNS
Principals of JWH serve on the boards of directors and committees of
various organizations, both in and outside the managed futures industry. In such
capacities, these individuals have a fiduciary duty to the other organizations
they serve, and they are required to act in the best interests of those
organizations, even if those actions were to be adverse to the interests of JWH
and its clients.
JWH PERFORMANCE
Investors should be aware that commencing in May 1998, JWH increased
position size in relation to account equity by 20% for the International
Currency and Bond Portfolio.
Additional Note to JWH GlobalAnalytics-REGISTERED TRADEMARK- 99: In
March 1999, an additional account began trading pursuant to the JWH
GlobalAnalytics-REGISTERED TRADEMARK- Family of Programs methodology. Due to
the size of the account, it may have different results than other accounts
using the same methodology. As a result, performance for this account is
shown separately in the performance tables.
-2-
<PAGE>
The following updates and replaces the second and third paragraphs of
the section titled "Proprietary Trading" on page 69:
JWH and Mr. Henry may engage in discretionary trading for their own
accounts, and may trade for the purpose of testing new investment programs and
concepts, as long as such trading does not amount to a breach of fiduciary
duty. In the course of such trading, JWH and Mr. Henry may take positions in
their own accounts which are the same or opposite from the Fund's positions, due
to testing a new quantitative model or investment program, a neutral allocation
system and/or trading pursuant to individual discretionary methods. In addition,
Mr. Ginsberg may engage in discretionary trading for his own account pursuant to
his own personal trading approach as long as such trading does not amount to a
breach of fiduciary duty. Mr. Ginsberg's trades may be the same as or opposite
to positions that JWH takes for its clients. Trades for the accounts of JWH, Mr.
Henry and Mr. Ginsberg may on occasion receive better fills than client
accounts. Records for these accounts will not be made available to the Fund.
Employees and principals of JWH (other than Messrs. Henry and
Ginsberg) are not permitted to trade in futures, options on futures or forward
contracts. However, such principals and employees may invest in investment
vehicles that trade futures, options on futures, or forward contracts, when an
independent trader manages trading in that vehicle, and in The JWH Employee Fund
L.P., for which JWH is the trading advisor. The records of these accounts will
not be made available to the Fund.
Mr. Wing is chairman of the board of Market Liquidity Holding, LLC
("MLHL"). MLHL acts as the general partner of partnerships or sponsors entities
that will trade futures, options on futures, and equity options for hedging and
risk management purposes in connection with those entities' equity trading. Mr.
Wing is not involved in directing or overseeing such trading. Records of MLHL's
accounts will not be made available to the Fund.
The following information updates the performance records of the JWH
programs set forth on pages 39-44 and 56-64 of the Prospectus.
The updated performance records must be read in conjunction with the
notes on pages 51-55 of the Prospectus.
-3-
<PAGE>
JOHN W. HENRY & COMPANY, INC. PROGRAMS
JANUARY 1, 1994 - NOVEMBER 30, 1999
JWH BEGAN TRADING CLIENT CAPITAL IN OCTOBER 1982.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROGRAM: Financial and Original Global Global G-7
Metals Portfolio Investment Diversified Financial Currency
Program Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCEPTION OF CLIENT ACCOUNT October 1984 October 1982 June 1988 June 1994 February 1991
TRADING IN PROGRAM:
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF OPEN ACCOUNTS: 26 18 8 4 4
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED IN PROGRAM: $786,998,699 $260,820,762 $114,244,697 $75,462,493 $38,561,534
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED BY JWH: $2.0 billion $2.0 billion $2.0 billion $2.0 billion $2.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
WORST MONTHLY DECLINE ON AN (10.1)% (2/96) (16.3)% (10/94) (15.0)% (10/99) (19.5)% (11/94) (12.3)% (11/94)
INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
WORST PEAK-TO-VALLEY DECLINE (30.5)% (31.0)% (24.1)% (48.9)% (31.4)%
ON AN INDIVIDUAL ACCOUNT BASIS: (6/94-1/95) (7/94-10/94) (6/95-10/95) (7/94-1/95) (10/92-1/95)
- ------------------------------------------------------------------------------------------------------------------------------------
1999 COMPOUND ANNUAL RATE OF RETURN (16.4)% (8.9)% (14.8)% 2.2% 20.1%
(11 MONTHS):
- ------------------------------------------------------------------------------------------------------------------------------------
1998 COMPOUND ANNUAL RATE OF RETURN: 7.2% 10.8% 23.5% 9.9% (4.8)%
- ------------------------------------------------------------------------------------------------------------------------------------
1997 COMPOUND ANNUAL RATE OF RETURN: 15.2% 5.7% 3.3% 4.9% 21.0%
- ------------------------------------------------------------------------------------------------------------------------------------
1996 COMPOUND ANNUAL RATE OF RETURN: 29.7% 22.6% 26.9% 32.4% 14.5%
- ------------------------------------------------------------------------------------------------------------------------------------
1995 COMPOUND ANNUAL RATE OF RETURN: 38.5% 53.2% 19.6% 86.2% 32.2%
- ------------------------------------------------------------------------------------------------------------------------------------
1994 COMPOUND ANNUAL RATE OF RETURN: (5.3)% (5.7)% 10.1% (37.7)% (4.9)%
(7 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROGRAM: International Foreign JWH Global- JWH International
Exchange Program Analytics GlobalAnalytics Currency and Bond
-REGISTERED -REGISTERED Portfolio
TRADEMARK- TRADEMARK-
Family of 99
Programs*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEPTION OF CLIENT ACCOUNT August 1986 June 1997 March 1999 January 1993
TRADING IN PROGRAM:
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF OPEN ACCOUNTS: 4 0 1 1
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED IN PROGRAM: $78,754,204 $0 $7,257,891 $25,655,608
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED BY JWH: $2.0 billion $2.0 billion $2.0 billion $2.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
WORST MONTHLY DECLINE ON AN (8.3)% (5/97) (5.0)% (4/98) (9.4)% (10/99) (7.8)% (7/94)
INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
WORST PEAK-TO-VALLEY DECLINE (35.9)% (9/92-1/95) (5.3)% (4/98-5/98) (15.1)% (7/99-10/99) (23.6)% (7/94-1/95)
ON AN INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
1999 COMPOUND ANNUAL RATE OF RETURN (5.2)% N/A (9.1)% 2.0%
(11 MONTHS): (9 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1998 COMPOUND ANNUAL RATE OF RETURN: 13.9% (3.6)% N/A 16.1%
(5 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1997 COMPOUND ANNUAL RATE OF RETURN: 71.1% 17.6% N/A 17.0%
(7 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1996 COMPOUND ANNUAL RATE OF RETURN: 3.7% N/A N/A 19.9%
- ------------------------------------------------------------------------------------------------------------------------------------
1995 COMPOUND ANNUAL RATE OF RETURN: 16.9% N/A N/A 36.5%
- ------------------------------------------------------------------------------------------------------------------------------------
1994 COMPOUND ANNUAL RATE OF RETURN: (6.3)% N/A N/A (2.3)%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*THE PERFORMANCE DATA FOR THIS PROGRAM IS ONLY THROUGH MAY 7, 1998. THE
PROGRAM CONTINUES TO OPERATE, BUT ONLY AS A PORTION OF THE FUND AND ITS
OFFSHORE COUNTERPART, ML JWH STRATEGIC ALLOCATION FUND LTD. FOR PERFORMANCE
INFORMATION SUBSEQUENT TO MAY 7, 1998, SEE THE PERFORMANCE OF THE EXCLUSIVE
FUND ACCOUNTS ON PAGE 6.
WORST MONTHLY DECLINE ON AN INDIVIDUAL ACCOUNT BASIS IS THE WORST MONTHLY
RATE OF RETURN DURING ANY MONTH.
WORST PEAK-TO-VALLEY DECLINE IS THE LARGEST PERCENTAGE LOSS WITHOUT SUCH
LOSS BEING EARNED BACK. FOR EXAMPLE, IF THE MONTHLY RATE OF RETURN WAS (1)%
IN EACH OF JULY AND AUGUST, 1% IN SEPTEMBER AND (2)% IN OCTOBER, THE
"PEAK-TO-VALLEY DECLINE" WOULD STILL BE CONTINUING AT THE END OF OCTOBER IN
THE AMOUNT OF APPROXIMATELY (3)%, WHEREAS IF THE MONTHLY RATE OF RETURN HAD
BEEN APPROXIMATELY 3% IN SEPTEMBER, THE "PEAK-TO-VALLEY DECLINE" WOULD HAVE
ENDED AS OF THE END OF AUGUST AT APPROXIMATELY THE (2)% LEVEL.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
-4-
<PAGE>
JOHN W. HENRY & COMPANY, INC. PROGRAMS
JANUARY 1, 1994 - NOVEMBER 30, 1999 (CONT'D)
JWH BEGAN TRADING CLIENT CAPITAL IN OCTOBER 1982.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROGRAM: The World Financial Dollar Program* Worldwide Bond Delevered Yen
Perspective Program* Denominated
Financial and
Metals Profile
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEPTION OF CLIENT ACCOUNT April 1987 July 1996 July 1996 October 1995;
TRADING IN PROGRAM: ceased trading 12/96
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF OPEN ACCOUNTS: 2 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED IN PROGRAM: $26,382,919 $0 $0 $0
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED BY JWH: $2.0 billion $2.0 billion $2.0 billion $2.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
WORST MONTHLY DECLINE ON AN (11.7)% (2/94) (8.4)% (5/97) (3.8)% (4/97) (3.2)% (2/96)
INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
WORST PEAK-TO-VALLEY DECLINE (25.9)% (7/94-1/95) (11.6)% (5/97-9/97) (6.2)% (12/96-5/97) (5.1)% (2/96-8/96)
ON AN INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
1999 COMPOUND ANNUAL RATE OF RETURN (2.9)% N/A N/A N/A
(11 MONTHS):
- ------------------------------------------------------------------------------------------------------------------------------------
1998 COMPOUND ANNUAL RATE OF RETURN: 7.2% (4.9)% (0.4)% N/A
(5 mos.) (5 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1997 COMPOUND ANNUAL RATE OF RETURN: 10.4% 6.8% 9.5% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1996 COMPOUND ANNUAL RATE OF RETURN: 40.9% 10.6% 17.8% 9.4%
(6 mos.) (6 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1995 COMPOUND ANNUAL RATE OF RETURN: 32.2% N/A N/A 0.2%
(3 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1994 COMPOUND ANNUAL RATE OF RETURN: (15.2)% N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROGRAM: InterRate-TM- KT Diversified JWH II
Program Financial and Metals
Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCEPTION OF CLIENT ACCOUNT December 1988; January 1984; September 1991;
TRADING IN PROGRAM: ceased trading 7/96 ceased trading 2/94 ceased trading 7/95
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF OPEN ACCOUNTS: 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED IN PROGRAM: $0 $0 $0
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED BY JWH: $2.0 billion $2.0 billion $0**
- ------------------------------------------------------------------------------------------------------------------------------------
WORST MONTHLY DECLINE ON AN (3.1)% (11/94) (19.6)% (8/93) (4.8)% (7/94)
INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
WORST PEAK-TO-VALLEY DECLINE (19.7)% (9/92-11/93) (33.9)% (8/93-2/94) (12.2)% (7/94-12/94)
ON AN INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
1999 COMPOUND ANNUAL RATE OF RETURN N/A N/A N/A
(11 MONTHS):
- ------------------------------------------------------------------------------------------------------------------------------------
1998 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1997 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1996 COMPOUND ANNUAL RATE OF RETURN: 5.79% N/A N/A
(7 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1995 COMPOUND ANNUAL RATE OF RETURN: 5.19% N/A 30.3%
(7 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1994 COMPOUND ANNUAL RATE OF RETURN: 3.42% (14.0)% (0.8)%
(2 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*THE PERFORMANCE DATA FOR THIS PROGRAM IS ONLY THROUGH MAY 7, 1998. THE
PROGRAM CONTINUES TO OPERATE, BUT ONLY AS A PORTION OF THE FUND AND ITS
OFFSHORE COUNTERPART, ML JWH STRATEGIC ALLOCATION FUND LTD. FOR PERFORMANCE
INFORMATION SUBSEQUENT TO MAY 7, 1998, SEE THE PERFORMANCE OF THE EXCLUSIVE
FUND ACCOUNTS ON PAGE 6.
**REFLECTS ASSETS MANAGED BY JWHII, AN AFFILIATE OF JWH, WHICH HAS CEASED
OPERATIONS.
WORST MONTHLY DECLINE ON AN INDIVIDUAL ACCOUNT BASIS IS THE WORST MONTHLY
RATE OF RETURN DURING ANY MONTH.
WORST PEAK-TO-VALLEY DECLINE IS THE LARGEST PERCENTAGE LOSS WITHOUT SUCH
LOSS BEING EARNED BACK. FOR EXAMPLE, IF THE MONTHLY RATE OF RETURN WAS (1)%
IN EACH OF JULY AND AUGUST, 1% IN SEPTEMBER AND (2)% IN OCTOBER, THE
"PEAK-TO-VALLEY DECLINE" WOULD STILL BE CONTINUING AT THE END OF OCTOBER IN
THE AMOUNT OF APPROXIMATELY (3)%, WHEREAS IF THE MONTHLY RATE OF RETURN HAD
BEEN APPROXIMATELY 3% IN SEPTEMBER, THE "PEAK-TO-VALLEY DECLINE" WOULD HAVE
ENDED AS OF THE END OF AUGUST AT APPROXIMATELY THE (2)% LEVEL.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
-5-
<PAGE>
JOHN W. HENRY & COMPANY, INC. PROGRAMS
EXCLUSIVE FUND ACCOUNTS
MAY 8, 1998 - NOVEMBER 30, 1999
JWH BEGAN TRADING CLIENT CAPITAL IN OCTOBER 1982.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROGRAM: Financial and Original Global International Global
Metals Portfolio Investment Diversified Foreign Financial
Exclusive Program Portfolio Exchange Program Portfolio
Exclusive Exclusive Exclusive Exclusive
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCEPTION OF CLIENT ACCOUNT May 1998 May 1998 May 1998 April 1999 May 1998
TRADING IN PROGRAM:
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF OPEN ACCOUNTS: 2 2 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED IN PROGRAM: $62,704,925 $104,402,523 $49,097,023 $27,105,088 $84,280,881
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED BY JWH: $2.0 billion $2.0 billion $2.0 billion $2.0 billion $2.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
WORST MONTHLY DECLINE ON AN (8.7)% (10/99) (12.0)% (11/98) (14.0)% (10/99) (6.3)% (10/99) (8.8)% (10/99)
INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
WORST PEAK-TO-VALLEY DECLINE (21.6)% (13.9)% (19.5)% (10.8)% (11.6)%
ON AN INDIVIDUAL ACCOUNT BASIS: (7/99-11/99) (7/99-10/99) (8/99-11/99) (4/99-10/99) (7/99-10/99)
- ------------------------------------------------------------------------------------------------------------------------------------
1999 COMPOUND ANNUAL RATE OF RETURN (15.4)% (4.2)% (9.7)% (6.4)% 4.0%
(11 MONTHS): (8 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1998 COMPOUND ANNUAL RATE OF RETURN: 33.5% 20.2% 39.7% N/A 18.4%
(8 mos.) (8 mos.) (8 mos.) (8 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1997 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1996 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1995 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1994 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROGRAM: G-7 Currency Portfolio Worldwide Bond JWH Global- Dollar Program
Exclusive Program Exclusive Analytics-REGISTERED Exclusive
TRADEMARK- Family of
Programs Exclusive
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEPTION OF CLIENT ACCOUNT May 1998 May 1998 May 1998 May 1998
TRADING IN PROGRAM:
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF OPEN ACCOUNTS: 2 2 2 2
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED IN PROGRAM: $61,948,064 $28,204,447 $95,403,679 $30,633,452
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS MANAGED BY JWH: $2.0 billion $2.0 billion $2.0 billion $2.0 billion
- ------------------------------------------------------------------------------------------------------------------------------------
WORST MONTHLY DECLINE ON AN (8.6)% (11/98) (7.0)% (10/98) (9.2)% (10/99) (7.2)% (11/98)
INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
WORST PEAK-TO-VALLEY DECLINE (11.9)% (11/98-1/99) (8.2)% (8/99-11/99) (13.5)% (7/99-10/99) (7.7)% (11/98-1/99)
ON AN INDIVIDUAL ACCOUNT BASIS:
- ------------------------------------------------------------------------------------------------------------------------------------
1999 COMPOUND ANNUAL RATE OF RETURN 18.9% (6.2)% (3.3)% 10.7%
(11 MONTHS):
- ------------------------------------------------------------------------------------------------------------------------------------
1998 COMPOUND ANNUAL RATE OF RETURN: 0.7% 25.9% 25.5% 2.7%
(8 mos.) (8 mos.) (8 mos.) (8 mos.)
- ------------------------------------------------------------------------------------------------------------------------------------
1997 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1996 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1995 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
1994 COMPOUND ANNUAL RATE OF RETURN: N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ABOVE PERFORMANCE REPRESENTS THE COMBINED PERFORMANCE OF THE FUND AND
ITS OFFSHORE COUNTERPART, ML JWH STRATEGIC ALLOCATION FUND LTD., SINCE
MAY 8, 1998.
WORST MONTHLY DECLINE ON AN INDIVIDUAL ACCOUNT BASIS IS THE WORST MONTHLY
RATE OF RETURN DURING ANY MONTH.
WORST PEAK-TO-VALLEY DECLINE IS THE LARGEST PERCENTAGE LOSS WITHOUT SUCH
LOSS BEING EARNED BACK. FOR EXAMPLE, IF THE MONTHLY RATE OF RETURN WAS (1)%
IN EACH OF JULY AND AUGUST, 1% IN SEPTEMBER AND (2)% IN OCTOBER, THE
"PEAK-TO-VALLEY DECLINE" WOULD STILL BE CONTINUING AT THE END OF OCTOBER IN
THE AMOUNT OF APPROXIMATELY (3)%, WHEREAS IF THE MONTHLY RATE OF RETURN HAD
BEEN APPROXIMATELY 3% IN SEPTEMBER, THE "PEAK-TO-VALLEY DECLINE" WOULD HAVE
ENDED AS OF THE END OF AUGUST AT APPROXIMATELY THE (2)% LEVEL.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
-6-
<PAGE>
THE JWH PROGRAMS MONTHLY RATES OF RETURN
<TABLE>
<CAPTION>
JWH
GLOBAL-
INTERNATIONAL INTERNATIONAL ANALYTICS
FINANCIAL ORIGINAL FOREIGN THE WORLD GLOBAL G-7 CURRENCY GLOBAL -REGISTERED
AND METALS INVESTMENT EXCHANGE FINANCIAL DIVERSIFIED CURRENCY AND BOND FINANCIAL TRADEMARK-
PORTFOLIO PROGRAM PROGRAM PERSPECTIVE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO 99
--------- ------- ------- ----------- --------- --------- --------- --------- --
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999
January (4.8)% (3.9)% (3.0)% 1.2% (7.0)% (2.2)% (1.8)% (1.4)%
February 0.9 5.1 0.7 (0.2) 3.0 3.3 (1.4) 2.8
March (2.6) (2.2) 2.9 4.8 (1.6) 5.9 2.2 (2.3) (4.7)
April 1.6 6.0 1.4 3.4 7.6 5.0 1.5 6.9 2.9
May 5.9 (2.8) (3.2) (7.4) (1.0) (1.4) 1.4 (0.2) 2.3
June 6.1 2.1 (0.6) 7.1 5.0 (0.3) 3.2 6.2 2.9
July (2.3) (2.3) (6.6) (4.7) 1.1 (5.6) (2.2) (4.9) (3.2)
August (3.1) 0.6 2.1 (2.3) (3.2) 4.2 (1.4) 3.1 (1.5)
September (7.0) (3.8) 3.4 2.0 (3.0) 1.4 0.2 (1.7) (1.7)
October (8.1) (11.4) (6.6) (7.4) (13.0) (0.1) (1.8) (8.7) (9.4)
November (3.2) 4.6 5.0 1.8 (2.0) 9.1 2.2 3.4 3.7
December
COMPOUND
ANNUAL ROR
(11 MONTHS) (16.4)% (8.9)% (5.2)% (2.9)% (14.8)% 20.1% 2.0% 2.2% (9.1)%
1998
January (3.5)% (1.3)% (1.6)% 1.8% (3.2)% (4.1)% 1.0% (1.5)%
February (4.0) 2.2 (6.0) 2.5 3.8 (2.6) (2.3) (0.1)
March (1.6) (4.1) 2.9 1.6 (1.4) 4.7 1.3 2.0
April (7.9) (0.5) (3.4) (3.1) (3.2) (1.9) (4.0) (3.5)
May 3.2 4.4 8.2 1.2 3.1 6.6 5.4 2.0
June (4.8) 1.7 19.6 (4.6) (1.3) (2.8) (3.2) (1.0)
July (0.9) (4.0) 1.8 (4.1) 0.1 0.4 0.4 (3.6)
August 17.5 4.0 2.2 9.1 19.5 (2.5) 9.4 5.3
September 15.3 2.7 (6.8) 1.1 9.4 2.0 11.2 4.0
October (3.8) 5.2 7.2 3.2 (9.4) 7.4 (2.2) 2.8
November (7.5) (12.8) (6.1) (8.6) (2.5) (9.1) (5.2) (9.5)
December 8.9 15.4 (1.8) 8.3 9.4 (1.7) 4.8 14.4
COMPOUND
ANNUAL ROR 7.2% 10.8% 13.9% 7.2% 23.5% (4.8)% 16.1% 9.9%
1997
January 4.4% 3.4% 2.9% 1.1% 1.5% 2.5% 2.2% 2.7%
February (2.2) 0.2 9.7 0.2 (0.4) 3.9 1.4 (0.6)
March (0.7) 1.6 4.1 (2.3) (1.0) 0.4 0.0 (0.4)
April (2.9) 0.5 5.0 (0.8) (7.2) 3.1 (1.9) (0.4)
May (8.3) 1.1 (6.9) (5.2) (0.8) (3.3) (2.9) (3.7)
June 4.1 (4.4) 1.5 4.5 (2.1) 5.7 4.9 (2.2)
July 15.8 2.0 9.5 6.0 11.5 4.1 10.2 5.4
August (3.7) (0.8) 7.0 (6.4) (7.8) (3.5) (6.1) (1.4)
September 2.2 (6.0) 2.4 1.1 (0.2) (1.2) 2.8 (2.1)
October 2.0 3.6 5.1 (1.3) 4.5 1.2 2.7 4.2
November 2.5 0.0 6.5 8.4 (0.5) 6.0 2.0 (1.5)
December 2.9 4.9 9.2 5.9 7.3 0.9 1.3 5.3
COMPOUND
ANNUAL ROR 15.2% 5.7% 71.1% 10.4% 3.3% 21.0% 17.0% 4.9%
</TABLE>
- ---------------
"ROR" MEANS "RATE OF RETURN."
-7-
<PAGE>
THE JWH PROGRAMS MONTHLY RATES OF RETURN (CONT'D)
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
FINANCIAL ORIGINAL FOREIGN THE WORLD GLOBAL G-7 CURRENCY GLOBAL
AND METALS INVESTMENT EXCHANGE FINANCIAL DIVERSIFIED CURRENCY AND BOND FINANCIAL
PORTFOLIO PROGRAM PROGRAM PERSPECTIVE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ------- ------- ----------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996
January 6.0% 5.3% 2.3% 7.4% (1.3)% 2.9% 3.6% 4.8%
February (5.5) (7.4) (4.8) (5.5) (9.8) (4.2) (4.6) (4.2)
March 0.7 1.0 2.9 6.7 1.3 (0.4) 1.1 2.4
April 2.3 3.8 1.0 2.4 7.1 2.2 0.1 1.3
May (1.7) (6.5) 2.0 (2.0) (9.1) 0.7 (0.3) (1.5)
June 2.2 8.0 1.0 2.7 1.7 1.8 (0.8) 1.4
July (1.1) (4.4) (3.0) (2.9) 2.2 (2.7) (2.5) (3.1)
August (0.8) (2.3) (8.1) 1.6 4.5 (4.3) (0.8) 4.3
September 3.2 8.2 1.2 7.8 7.6 1.6 5.2 8.1
October 14.3 10.4 6.1 9.3 14.6 10.9 12.2 8.8
November 10.9 5.2 3.1 9.1 9.1 4.1 7.6 6.3
December (2.6) 1.1 0.7 (0.6) (1.0) 1.8 (1.4) 0.8
COMPOUND
ANNUAL ROR 29.7% 22.6% 3.7% 40.9% 26.9% 14.5% 19.9% 32.4%
1995
January (3.8)% 2.2% (6.1)% (3.7)% (6.9)% (3.0)% (3.7)% (4.7)%
February 15.7 17.9 7.2 13.7 13.5 9.6 11.1 25.6
March 15.3 16.6 22.2 18.3 8.5 21.2 11.2 44.4
April 6.1 9.1 2.5 3.7 7.3 2.2 3.7 7.0
May 1.2 (4.4) (5.3) (3.3) 1.2 (4.3) 7.7 (5.1)
June (1.7) 1.7 (0.6) (2.6) (1.7) (0.2) (2.0) (1.0)
July (2.3) 0.0 (5.5) 0.5 (8.9) (1.8) (2.8) 1.4
August 2.1 (3.9) 5.8 1.7 (5.0) 5.3 (0.3) 4.6
September (2.1) (3.9) 0.5 (3.9) (5.1) 1.8 0.7 (4.9)
October 0.3 3.3 1.5 3.9 (2.2) 2.0 0.6 4.0
November 2.6 1.1 (2.8) (0.1) 5.9 (1.3) 5.1 0.4
December 1.7 6.8 (0.6) 2.4 14.9 (0.8) 1.5 1.8
COMPOUND
ANNUAL ROR 38.5% 53.2% 16.9% 32.2% 19.6% 32.2% 36.5% 86.2%
1994
January (2.9)% (2.9)% 1.0% (4.6)% (2.6)% (1.3)% (2.2)% N/A
February (0.6) 1.5 (3.0) 0.0 (0.8) (1.7) 1.5 N/A
March 7.2 4.4 (0.2) 9.2 4.0 0.9 5.4 N/A
April 0.9 0.2 (1.7) 0.9 0.9 (1.3) 3.0 N/A
May 1.3 5.5 (1.8) 2.4 7.9 (1.0) 4.3 N/A
June 4.5 6.6 3.2 1.7 10.8 7.9 4.8 9.8%
July (6.1) (7.1) (2.5) (8.9) (2.6) (3.5) (6.7) (7.4)
August (4.1) (4.7) (0.3) (3.1) (6.4) (0.3) (3.0) (8.8)
September 1.5 (2.8) 2.7 (0.0) 2.1 2.9 0.9 (4.0)
October 1.7 (14.1) 4.2 0.2 (3.6) 4.1 0.1 (8.3)
November (4.4) 10.2 (6.7) (5.8) 5.6 (7.2) (4.8) (17.4)
December (3.5) 0.0 (0.8) (6.8) (4.1) (3.6) (4.7) (7.7)
COMPOUND
ANNUAL ROR (5.3)% (5.7)% (6.3)% (15.2)% 10.1% (4.9)% (2.3)% (37.7)%
(7 MOS.)
</TABLE>
--------------------
"ROR" MEANS "RATE OF RETURN."
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
-8-
<PAGE>
THE JWH PROGRAMS
EXCLUSIVE FUND ACCOUNTS
MONTHLY RATES OF RETURN
For an explanation of the Exclusive Fund Accounts, see "Exclusive
Fund Accounts" on page 45 of the Prospectus.
<TABLE>
<CAPTION>
JWH GLOBAL-
ANALYTICS
INTERNATIONAL -REGISTERED
FINANCIAL ORIGINAL GLOBAL FOREIGN GLOBAL G-7 WORLDWIDE TRADEMARK-
AND METALS INVESTMENT DIVERSIFIED EXCHANGE FINANCIAL CURRENCY BOND FAMILY OF DOLLAR
PORTFOLIO PROGRAM PORTFOLIO PROGRAM PORTFOLIO PORTFOLIO PROGRAM PROGRAMS PROGRAM
EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE
--------- ---------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999
January (4.2)% (2.9)% (5.3)% (0.7)% (2.0)% (0.2)% (1.9)% (3.0)%
February 0.9 4.6 3.5 2.4 3.0 (3.2) 4.0 4.4
March (2.0) (1.6) 0.0 (2.4) 6.1 (0.3) (3.9) 0.7
April 1.6 6.2 7.6 (0.1) 7.5 4.3 (1.3) 3.7 2.4
May 5.7 (3.1) (0.8) (3.6) (0.6) (1.4) 2.1 2.6 1.7
June 6.0 4.0 5.9 (0.1) 7.8 (0.3) 4.0 3.0 1.7
July (2.2) (1.6) 1.3 (6.3) (4.7) (5.1) 1.0 (2.6) (4.3)
August (2.9) 1.3 (2.5) 2.1 3.8 4.0 (3.4) (0.7) 1.9
September (6.8) (4.3) (2.6) 3.5 (2.1) 1.3 (0.1) (1.0) 2.8
October (8.7) (9.8) (13.9) (6.3) (8.8) (0.1) (1.6) (9.2) (1.0)
November (3.0) 4.1 (1.5) 4.8 2.9 8.3 (3.2) 3.5 3.2
December
COMPOUND
ANNUAL ROR (15.4)% (4.2)% (9.7)% (6.4) 4.0% 18.9% (6.2)% (3.3)% 10.7%
(11 MONTHS) (8 MO.)
1998
January
February
March
April
May 3.5% 4.8% 5.1% 2.9% 6.0% 1.6% 6.2% 1.3%
June (5.2) 2.5 (0.5) (0.3) (2.5) (1.7) (1.9) (1.2)
July (0.3) (3.5) 1.4 (3.2) 0.6 0.6 0.6 (0.3)
August 19.1 5.5 22.1 6.6 (2.4) 13.7 12.4 (2.4)
September 17.8 3.7 11.0 5.0 2.1 11.5 8.2 4.8
October (3.4) 4.4 (9.3) 2.0 8.1 (7.0) (0.3) 5.6
November (8.5) (11.8) (3.2) (8.6) (8.5) (0.3) (5.6) (7.0)
December 10.1 15.2 10.8 14.2 (1.7) 6.6 4.8 2.5
COMPOUND
ANNUAL ROR 33.5% 20.2% 39.7% 18.4% 0.7% 25.9% 25.5% 2.7%
(8 MOS.)
</TABLE>
- --------------
"ROR" MEANS "RATE OF RETURN."
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
-9-
<PAGE>
ACKNOWLEDGMENT OF RECEIPT OF THE
SUPPLEMENT DATED FEBRUARY 4, 2000 TO THE PROSPECTUS
DATED MAY 4, 1999 OF ML JWH STRATEGIC ALLOCATION FUND L.P.
The undersigned hereby acknowledges that the undersigned has received
a copy of the Supplement dated February 4, 2000 to the Prospectus dated May 4,
1999 of ML JWH Strategic Allocation Fund L.P.
INDIVIDUAL SUBSCRIBERS: ENTITY SUBSCRIBERS:
- ---------------------------- ------------------------------------
(Name of Entity)
- ---------------------------- By: --------------------------------
Signature of Subscriber(s)
Title:
--------------------------------
(Trustee, partner or authorized officer)
Dated: ____________, 2000
A SIGNED COPY OF THIS ACKNOWLEDGMENT OF RECEIPT OF THIS FEBRUARY 4, 2000
SUPPLEMENT AND THE SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY SIGNATURE PAGE
FROM THE MAY 4, 1999 PROSPECTUS MUST BE RETURNED
TO YOUR MERRILL LYNCH FINANCIAL CONSULTANT.
-10-