<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
---------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 0-16746
ML FUTURES INVESTMENTS II L.P.
------------------------------
(Exact Name of Registrant as
specified in its charter)
Delaware 13-3481305
- ------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
c/o Merrill Lynch Investment Partners Inc.
Merrill Lynch World Headquarters - South Tower, 6th Fl.
World Financial Center New York, New York 10080-6106
-----------------------------------------------------
(Address of principal executive offices)
(Zip Code)
212-236-5662
--------------------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
----- -----
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ML FUTURES INVESTMENTS II L.P.
------------------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
-------------------- -------------------
ASSETS
- ------
<S> <C> <C>
Accrued interest $ 1,187 $ 26,760
Equity in commodity futures trading accounts:
Cash and option premiums 28,939 5,939,906
Net unrealized profit on open contracts - 68,216
Investments 11,294,574 6,789,050
Receivable from outside investments 239,046 72,626
-------------------- -------------------
TOTAL $11,563,746 $12,896,558
==================== ===================
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $ 219,563 $ 97,997
Brokerage commissions payable - 44,153
Profit shares payable - 3,398
Administrative fees payable - 1,262
-------------------- -------------------
Total liabilities 219,563 146,810
-------------------- -------------------
PARTNERS' CAPITAL:
General Partners (681 and 1229 Units) 118,479 218,182
Limited Partners (64523 and 70589 Units) 11,225,704 12,531,566
-------------------- -------------------
Total partners' capital 11,344,183 12,749,748
-------------------- -------------------
TOTAL $11,563,746 $12,896,558
==================== ===================
NET ASSET VALUE PER UNIT
(Based on 65204 and 71818 Units outstanding) $173.98 $177.53
==================== ===================
See notes to financial statements.
</TABLE>
2
<PAGE>
ML FUTURES INVESTMENTS II L.P.
------------------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF OPERATIONS
------------------------
<TABLE>
<CAPTION>
For the three For the three For the six For the six
months ended months ended months ended months ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
-------------------- -------------------- --------------- -----------------
<S> <C> <C> <C> <C>
REVENUES:
Trading (loss) profits:
Realized $(151,031) $ 52,873 $(459,001) $441,363
Change in unrealized (86,758) 13,962 (60,431) 48,173
-------------------- -------------------- --------------- -----------------
Total trading results (237,789) 66,835 (519,432) 489,536
-------------------- -------------------- --------------- -----------------
Interest income 45,392 89,530 118,360 180,484
Income (loss) from investments 24,591 (82,821) 357,583 266,754
-------------------- -------------------- --------------- -----------------
Total revenues (167,806) 73,544 (43,489) 936,774
-------------------- -------------------- --------------- -----------------
EXPENSES:
Profit shares - 850 - 50,956
Brokerage commissions 74,610 152,396 198,734 318,355
Administrative fees 2,132 4,354 5,678 8,922
-------------------- -------------------- --------------- -----------------
Total expenses 76,742 157,600 204,412 378,233
-------------------- -------------------- --------------- -----------------
NET (LOSS) INCOME $(244,548) $(84,056) $(247,901) $558,541
==================== ==================== =============== =================
NET (LOSS) INCOME PER UNIT:
Weighted average number of units
outstanding 67,764 79,948 69,462 81,799
==================== ==================== =============== =================
Weighted average net (loss) income
per Limited Partner
and General Partner Unit $(3.61) $(1.05) $(3.57) $6.83
==================== ==================== =============== =================
See notes to financial statements.
</TABLE>
3
<PAGE>
ML FUTURES INVESTMENTS II L.P.
------------------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
------------------------------------------
For the six months ended June 30, 1998 and 1997
-----------------------------------------------
<TABLE>
<CAPTION>
Units Limited Partners General Partner Total
---------------- ----------------- ------------------ ----------------
<S> <C> <C> <C> <C>
PARTNERS' CAPITAL,
December 31, 1996 84,366 $14,088,386 $208,266 $14,296,652
Net income - 550,443 8,098 558,541
Redemptions (8,461) (1,492,161) - (1,492,161)
---------------- ----------------- ------------------ ----------------
PARTNERS' CAPITAL,
June 30, 1997 75,905 $13,146,668 $216,364 $13,363,032
================ ================= ================== ================
PARTNERS' CAPITAL,
December 31, 1997 71,818 $12,531,566 $218,182 $12,749,748
Net loss - (243,445) (4,456) (247,901)
Redemptions (6,614) (1,062,417) (95,247) (1,157,664)
---------------- ----------------- ------------------ ----------------
PARTNERS' CAPITAL,
June 30, 1998 65,204 $11,225,704 $118,479 $11,344,183
================ ================= ================== ================
See notes to financial statements.
</TABLE>
4
<PAGE>
ML FUTURES INVESTMENTS II L.P.
------------------------------
(A Delaware Limited Partnership)
------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting of
only normal recurring adjustments) necessary to present fairly the financial
position of ML Futures Investments II L.P. (the "Partnership" or the "Fund") as
of June 30, 1998 and the results of its operations for the six months ended
June 30, 1998 and 1997. However, the operating results for the interim periods
may not be indicative of the results expected for the full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these financial statements
be read in conjunction with the financial statements and notes thereto included
in the Partnership's Annual Report on Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 1997 (the "Annual Report").
2. INVESTMENTS
Many of the multi-advisor funds (the "Multi-Advisor Funds") sponsored by Merrill
Lynch Investment Partners Inc. ("MLIP") allocate their assets to a number of the
same Trading Advisors. However, because different Multi-Advisor Funds have
historically allocated assets to slightly different Advisor groups, the Multi-
Advisor Funds have often been required to open and maintain individual trading
accounts with each Advisor. MLIP has decided to consolidate the trading
accounts of nine of its Multi-Advisor Funds (including the Partnership) as of
June 1, 1998. The consolidation is achieved by having these Multi-Advisor Funds
close their existing trading accounts and invest in a limited liability company,
ML Multi-Manager Portfolio L.L.C. ("MM LLC ") which will open a single account
with each Advisor selected. MM LLC is managed by MLIP, initially has no
investors other than the Multi-Advisor Funds and serves solely as the vehicle
through which the assets of such Multi-Advisor Funds are combined in order to be
managed through single rather than multiple accounts.
As of June 30, 1998 the Partnership had an investment in the MM LLC and as of
December 31, 1997, the Partnership had investments in the ML Chesapeake
Diversified L.L.C. ("Chesapeake LLC") and the ML Sjo Prospect L.L.C. ("SJO
LLC") as follows:
<TABLE>
<CAPTION>
1998 1997
------------------- -------------------
<S> <C> <C> <C>
MM LLC $11,294,574 $ -
Chesapeake LLC - 3,383,225
SJO LLC - 3,405,825
------------------- -------------------
Total $11,294,574 $6,789,050
=================== ===================
</TABLE>
During the second quarter of 1998, the Partnership withdrew its investments in
Chesapeake LLC and SJO LLC.
5
<PAGE>
Total revenues and fees with respect to such investments are set forth as
follows:
<TABLE>
<CAPTION>
For the three months Total Brokerage Administrative Profit Income (loss) from
ended June 30, 1998 Revenue Commissions Fees Shares Investments
----------------- ----------------- ------------------- -------------- ---------------------------
<S> <C> <C> <C> <C> <C>
Chesapeake LLC $ 21,810 $ 50,867 $1,453 $ (6,231) $ (24,279)
MM LLC 122,369 84,285 2,408 25,066 10,610
SJO LLC 92,630 48,530 1,387 4,453 38,260
----------------- ----------------- ------------------- -------------- ---------------------------
Total $236,809 $183,682 $5,248 $ 23,288 $ 24,591
================= ================= =================== ============== ===========================
For the three months Total Brokerage Administrative Profit Income (loss) from
ended June 30, 1997 Revenue Commissions Fees Shares Investments
----------------- ----------------- ------------------- -------------- ---------------------------
Chesapeake LLC $(86,539) $ 78,800 $2,251 $(33,569) $(134,021)
SJO LLC 137,791 79,555 2,273 4,763 51,200
----------------- ----------------- ------------------- -------------- ---------------------------
Total $ 51,252 $158,355 $4,524 $(28,806) $ (82,821)
================= ================= =================== ============== ===========================
For the six months Total Brokerage Administrative Profit Income from Investments
ended June 30, 1998 Revenue Commissions Fees Shares
----------------- ----------------- ------------------- -------------- ---------------------------
Chesapeake LLC $414,399 $127,990 $3,659 $56,452 $226,298
MM LLC 122,369 84,285 2,408 25,066 10,610
SJO LLC 264,922 125,718 3,592 14,937 120,675
----------------- ----------------- ------------------- -------------- ---------------------------
Total $801,690 $337,993 $9,659 $96,455 $357,583
================= ================= =================== ============== ===========================
For the six months Total Brokerage Administrative Profit Income from Investments
ended June 30, 1997 Revenue Commissions Fees Shares
----------------- ----------------- ------------------- -------------- ---------------------------
Chesapeake LLC $267,672 $167,289 $4,689 $19,909 $ 75,785
SJO LLC 387,301 165,854 4,649 25,829 190,969
----------------- ----------------- ------------------- -------------- ---------------------------
Total $654,973 $333,143 $9,338 $45,738 $266,754
================= ================= =================== ============== ===========================
</TABLE>
6
<PAGE>
Condensed statements of financial condition and statements of income for MM
LLC, Chesapeake LLC and SJO LLC are set forth as follows:
<TABLE>
<CAPTION>
MM LLC Chesepeake LLC SJO LLC
June 30, 1998 December 31, 1997 December 31, 1997
<S> <C> <C> <C>
Assets $123,484,970 $17,195,182 $21,240,207
=============================== ================================== =================================
Liabilities $ 3,872,011 $ 704,681 $ 2,058,617
Members' Capital 119,612,959 16,490,501 19,181,590
------------------------------- ---------------------------------- ---------------------------------
Total $123,484,970 $17,195,182 $21,240,207
=============================== ================================== =================================
MM LLC
For the three months For the six months
ended June 30, 1998 ended June 30, 1998
------------------------------------ ----------------------------------
Revenues $ 1,307,775 $ 1,307,775
Expenses 1,187,403 1,187,403
------------------------------------ ----------------------------------
Net Income $ 120,372 $ 120,372
==================================== ==================================
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Chespeake LLC
For the three months For the three months For the six months For the six months
ended June 30, 1998 ended June 30, 1997 ended June 30, 1998 ended June 30, 1997
----------------------- ------------------------ --------------------- -----------------------
<S> <C> <C> <C> <C>
Revenues $ 95,555 $(448,098) $1,985,575 $1,531,788
Expenses 299,321 250,719 903,412 1,051,638
----------------------- ------------------------ --------------------- -----------------------
Net (Loss) Income $(203,766) $(698,817) $1,082,163 $ 480,150
======================= ======================== ===================== =======================
SJO LLC
For the three months For the three months For the six months For the six months
ended June 30, 1998 ended June 30, 1997 ended June 30, 1998 ended June 30, 1997
----------------------- ------------------------ --------------------- ----------------------
Revenues $ 500,566 $ 765,489 $1,472,849 $2,174,836
Expenses 299,321 481,869 802,877 1,101,197
----------------------- ------------------------ --------------------- ----------------------
Net Income $ 201,245 $ 283,620 $ 669,972 $1,073,639
======================= ======================== ===================== ======================
</TABLE>
3. FAIR VALUE AND OFF-BALANCE SHEET RISK
As of June 1, 1998, the Partnership invested all of its assets in MM LLC. The
Partnership is thus, invested indirectly in the trading of derivative
instruments.
The Partnership's total trading results by reporting category for the
respective periods are as follows:
<TABLE>
<CAPTION>
For the three For the three For the six For the six
months ended months ended months ended months ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
---------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
Interest rates &
Stock indices $ (89,541) $ 8,701 $(132,201) $105,383
Commodities (4,130) (68,376) (23,767) (77,889)
Currencies (149,629) 143,361 (367,636) 459,041
Energy 10,796 (41,804) 18,372 (18,287)
Metals (5,285) 24,953 (14,200) 21,288
---------------- ---------------- --------------- ---------------
$(237,789) $ 66,835 $(519,432) $489,536
================ ================ =============== ===============
</TABLE>
Fair Value
- ----------
The contract/notional values of the Partnership's open derivative instrument
positions as of June 30, 1998 and December 31, 1997 were as follows:
8
<PAGE>
<TABLE>
<CAPTION>
1998 1997
---------------------------------------------- --------------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
---------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C>
Interest rate &
Stock Indices $ - $ - $ 5,031,192 $ 742,619
Commodities - - 26,500 253,889
Currencies - - 11,161,667 15,160,081
Energy - - - 456,740
Metals - - - 58,575
-------------------- ------------------ ------------------ ------------------
$ - $ - $16,219,359 $16,671,904
==================== ================== ================== ==================
</TABLE>
The contract/notional values of the Partnership's exchange-traded and non-
exchange-traded open derivative instrument positions as of June 30, 1998 and
December 31, 1997 were as follows:
<TABLE>
<CAPTION>
1998 1997
------------------------------------------------ ------------------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
------------------------------------------------ -----------------------------------------------
<S> <C> <C> <C> <C>
Exchange
traded $ - $ - $ 5,419,491 $ 4,112,608
Non-Exchange
traded - - 10,799,868 12,559,296
-------------------- -------------------- -------------------- --------------------
$ - $ - $16,219,359 $16,671,904
==================== ==================== ==================== ====================
</TABLE>
9
<PAGE>
The average fair values, based on contract/notional values, of the Partnership's
derivative instrument positions which were open as of the end of each calendar
month during the six months ended June 30, 1998 and the year ended December 31,
1997 were as follows:
<TABLE>
<CAPTION>
1998 1997
-------------------------------------------- --------------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
----------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C>
Interest rate &
Stock Indices $ 4,804,906 $ 3,937,171 $ 6,524,597 $ 2,675,877
Commodities 77,463 102,771 316,417 237,959
Currencies 11,169,707 13,514,026 6,866,705 9,184,590
Energy 29,010 88,840 279,102 249,165
Metals 101,536 - 117,033 178,938
------------------ ------------------ ------------------ ------------------
$16,182,622 $17,642,808 $14,103,854 $12,526,529
================== ================== ================== ==================
</TABLE>
The gross unrealized profit and the net unrealized profit (loss) on the
Partnership's open derivative instrument positions as of June 30, 1998 and
December 31, 1997 were as follows:
<TABLE>
<CAPTION>
1998 1997
--------------------------------- ----------------------------------
Gross Net Gross Net
Unrealized Unrealized Unrealized Unrealized
Profit Profit Profit Profit
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Exchange
traded $ - $ - $ 69,448 $59,134
Non-Exchange
traded - - 286,112 9,082
-------------- -------------- -------------- --------------
$ - $ - $355,560 $68,216
============== ============== ============== ==============
</TABLE>
Item 2: Management's Discussion and Analysis of Financial Condition and Results
-----------------------------------------------------------------------
of Operations
-------------
The significant variations in both the statement of financial condition and the
statement of operations line items is primarily due to the Partnership placing
assets under the management of Advisors not through opening managed accounts
with them but rather through investing in MM LLC.
MONTH-END NET ASSET VALUE PER UNIT
<TABLE>
<CAPTION>
Jan. Feb. Mar. Apr. May Jun.
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1997 $173.97 $178.86 $177.05 $174.21 $175.72 $176.05
- ----------------------------------------------------------------------------------------------------
1998 $176.25 $176.78 $177.50 $170.80 $173.81 $173.98
- ----------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Performance Summary
January 1, 1997 to June 30, 1997
January 1, 1997 to March 31, 1997
In currency markets, the U.S. dollar rallied and started 1997 on a strong
note, rising to a four-year high versus the Japanese yen and two-and-a-half year
highs versus the Deutsche mark and the Swiss franc. January and February proved
profitable for currencies; however, losses were incurred in March.
Global interest rate markets began the year on a volatile note, as
investors evaluated economic
data for signs of inflation. Profits were incurred in January and February.
Losses were incurred in interest rates in March.
In energy markets, a slump in crude oil prices was characteristic of its
lackluster performance from the beginning of the year. Early in 1997,
volatility returned in the energy markets, reflecting the impact of a winter
significantly warmer than normal. January and March saw losses in energy;
however, February proved profitable.
Agricultural commodity trading proved profitable in February and March.
Soybean prices reached their highest level in over eight years, on continued
demand and fears that inventories could fall to critically low levels before the
next harvest.
April 1, 1997 to June 30, 1997
In the currency markets, the dollar underwent a significant correction in the
Spring against the Japanese yen due to the G7 finance ministers' determination
that a further dollar advance would be counter-productive to their current
goals. Currency trading was profitable for the quarter.
Global interest rate trading provided varied results for the quarter. Losses
were incurred in April.due to U.S. bond prices having moved in a directionless
pattern, as investors remained concerned over inflation and its impact on
further increases in interest rates by the U.S. Federal Reserve.
Energy trading saw losses throughout the quarter. In June crude oil trended
downward during the beginning of the month, before a sudden price reversal
occurred amid speculation that Iraq exports could be delayed until August.
Price movement of heating oil and unleaded gas proved to be trendless.
Agricultural commodity trading was unprofitable for the quarter; May however was
a profitable month. May's profits were due to coffee prices surging beyond
three dollars a pound for the first time in twenty years, on the possibility of
frost in Brazil and reports of poor crops in smaller countries.
January 1, 1998 to June 30, 1998
January 1, 1998 to March 31, 1998
The Fund's positions in the global interest rate markets were profitable during
the quarter. In Europe, 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.
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 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 unprofitable. In
particular, the Swiss franc weakened versus the U.S. dollar.
Agricultural commodity markets provided profitable trading results overall.
Live cattle and hog prices trended downward throughout the quarter. Cotton
prices moved mostly upward during the quarter, but prices dropped off sharply at
the end of March.
April 1, 1998 to June 30, 1998
As swings in the U.S. dollar and developments in Japan affected bond markets,
the Fund's interest rate trading during the quarter resulted in losses,
particularly in Eurodollar deposits. Early in the quarter, U.S. Treasury
trading was range-bound, as concern that the economy might be overheating was
balanced by the potential impact of the Asian recession. Additionally,
Australian bonds and bills saw a dramatic drop
11
<PAGE>
in prices in early June, as dollar-bloc currencies remained under pressure
versus the U.S. dollar due to the Japanese/Asian crisis.
Metals trading also resulted in losses, while energy trading was profitable.
The depressed gold market weakened further following news of a European Central
Bank consensus that ten to fifteen percent of reserves should be made up of gold
bullion which was at the low end of expectations. Despite production cuts
initiated by OPEC at the end of March, world oil supplies remained excessive and
oil prices stood at relatively low levels throughout the quarter.
Results in currency trading were unprofitable, as the Japanese yen weakened
during June to an eight-year low versus the U.S. dollar. Trading results in
stock index markets were also unprofitable, as the Asia-Pacific region's equity
markets weakened across the board. In particular, Hong Kong's Hang Seng index
trended downward during most of the quarter and traded at a three-year low.
Agricultural commodity trading produced profits. The U.S. soybean crop got off
to a good start which contributed to higher yield expectations and a more
burdensome supply outlook and soybean prices traded in a volatile pattern for
the second half of the quarter. Sugar futures maintained mostly a downtrend, as
no major buyers emerged to support the market. Similarly, coffee prices trended
downward, as good weather conditions in Central America and Mexico increased the
prospects of more output from these countries.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not Applicable
12
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no pending proceedings to which the Partnership or the General
Partner is a party.
Item 2. Changes in Securities and Use of Proceeds
(a) None.
(b) None.
(c) None.
(d) None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information.
Effective May 11, 1998, Jo Ann Di Dario became a Vice President, Treasurer
and Chief Financial Officer of Merrill Lynch Investment Partners Inc. ("MLIP").
Ms. Di Dario was born in 1946. Before joining MLIP, she was self-employed for
one year. From February 1996 to May 1997, she worked as a consultant for Global
Asset Management, an international mutual fund organizer and operator
headquartered in London, where she offered advice on restructuring the back
office operations. From May 1992 to January 1996, Ms. Di Dario served as Vice
President of Meridian Bank Corporation, a regional bank holding company. She
was responsible for managing the treasury operations of the bank holding company
and its wholly-owned subsidiary, Meridian Investment Company Inc. Ms. Di Dario
managed the domestic treasury operation of First Fidelity Bank, a regional bank,
from September 1991 to May 1992. From 1985 until December 1990, Ms. Di Dario
was Vice President, Secretary and Controller of Caxton Corporation, a commodity
pool operator and commodity trading advisor. Her background includes seven
years of public accounting experience. She graduated with high honors from
Stockton State College with a Bachelor of Science Degree in Accounting.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
--------
There are no exhibits required to be filed as part of this document.
(b) Reports on Form 8-K
-------------------
There were no reports on Form 8-K filed during the first six months of
fiscal 1998.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ML FUTURES INVESTMENTS II L.P.
By: MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
Date: August 11, 1998 By /s/ JOHN R . FRAWLEY, JR.
-------------------------
John R. Frawley, Jr.
Chairman, Chief Executive Officer,
President and Director
Date: August 11, 1998 By /s/ JO ANN DI DARIO
-------------------
Jo Ann Di Dario
Vice President, Chief Financial Officer
and Treasurer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-START> JAN-01-1998 JAN-01-1997
<PERIOD-END> JUN-30-1998 JUN-30-1997
<CASH> 0 0
<RECEIVABLES> 11,563,746 12,896,558
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 11,563,746 12,896,558
<SHORT-TERM> 0 0
<PAYABLES> 219,563 146,810
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 0 0
<OTHER-SE> 11,344,183 12,749,748
<TOTAL-LIABILITY-AND-EQUITY> 11,563,746 12,896,558
<TRADING-REVENUE> (519,432) 489,536
<INTEREST-DIVIDENDS> 118,360 180,484
<COMMISSIONS> 204,412 378,233
<INVESTMENT-BANKING-REVENUES> 357,583 266,754
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> (247,901) 558,541
<INCOME-PRE-EXTRAORDINARY> (247,901) 558,541
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (247,901) 558,541
<EPS-PRIMARY> (3.57) 6.83
<EPS-DILUTED> (3.57) 6.83
</TABLE>
