<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 September 30, 1996
------------------
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 0-21112
THE SECTOR STRATEGY FUND (SM) V L.P.
---------------------------------
(Exact Name of Registrant as
specified in its charter)
Delaware 13-3674792
- ---------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
c/o Merrill Lynch Investment Partners Inc.
(formerly ML Futures 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)
212-236-4161
------------------------------------------------
(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
--- ---
This document contains 11 pages.
There are no exhibits and no exhibit index filed with this document.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
THE SECTOR STRATEGY FUND (SM) V L.P.
-----------------------------------------
(a Delaware limited partnership)
--------------------------------
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Accrued interest $ 51,407 $ 105,038
Equity in commodity futures trading accounts:
Cash and option premiums 13,596,229 24,941,940
Net unrealized gain on open contracts 713,092 2,001,534
------------------ ------------------
TOTAL $14,360,728 $27,048,512
================== ==================
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $ 409,981 $ 743,243
Brokerage commissions payable (Note 2) 68,928 174,332
Profit shares payable - 74,883
Administrative expense payable (Note 2) 1,768 -
------------------ ------------------
Total liabilities 480,677 992,458
------------------ ------------------
PARTNERS' CAPITAL:
General Partner (2,990 and 2,990 units) 327,890 345,379
Limited Partners (123,593 and 222,604 units) 13,552,161 25,710,675
------------------ ------------------
Total partners' capital 13,880,051 26,056,054
------------------ ------------------
TOTAL $14,360,728 $27,048,512
================== ==================
NET ASSET VALUE PER UNIT
(Based on 126,583, and 225,594 Units outstanding) $109.65 $115.50
======= =======
</TABLE>
See notes to financial statements.
2
<PAGE>
THE SECTOR STRATEGY FUND (SM) V L.P.
------------------------------------
(a Delaware limited partnership)
--------------------------------
STATEMENTS OF OPERATIONS
------------------------
<TABLE>
<CAPTION>
For the three For the three For the nine For the nine
months ended months ended months ended months ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------ ------ ------ -----
<S> <C> <C> <C> <C>
REVENUES:
Trading profits (loss):
Realized $406,266 $(1,147,234) $ 35,592 $4,498,766
Change in unrealized 424,442 (326,451) (1,288,442) (2,009,645)
--------------- ---------------- ----------------- ------------------
Total trading results 830,708 (1,473,685) (1,252,850) 2,489,121
--------------- ---------------- ----------------- ------------------
Interest income 163,571 378,588 658,585 1,313,767
--------------- ---------------- ----------------- ------------------
Total revenues 994,279 (1,095,097) (594,265) 3,802,888
--------------- ---------------- ----------------- ------------------
EXPENSES:
Profit shares - - 4,590 449,993
Brokerage commissions (Note 2) 218,218 551,263 1,040,546 1,876,982
Administrative expense (Note 2) 5,596 - 26,681 -
--------------- ---------------- ----------------- ------------------
Total expenses 223,814 551,263 1,071,817 2,326,975
--------------- ---------------- ----------------- ------------------
NET INCOME (LOSS) $770,465 $(1,646,360) $(1,666,082) $ 1,475,913
=============== ================ ================= ==================
NET (LOSS) INCOME PER UNIT:
Weighted average number of units
outstanding 135,836 274,959 180,351 310,968
======= ======== ======== =======
Weighted average net income (loss)
per Limited Partner unit and
General Partner unit $5.67 $(5.99) $(9.24) $4.75
===== ======= ======= =====
</TABLE>
See notes to financial statements.
3
<PAGE>
THE SECTOR STRATEGY FUND (SM) V L.P.
------------------------------------
(a Delaware limited partnership)
--------------------------------
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
------------------------------------------
For the nine months ended September 30, 1996 and 1995
-----------------------------------------------------
<TABLE>
<CAPTION>
Limited General
Units Partners Partner Total
----- -------- ------- -----
<S> <C> <C> <C> <C>
PARTNERS' CAPITAL,
DECEMBER 31, 1994 381,064 $ 38,004,265 $528,877 $ 38,533,142
Net income - 1,457,357 18,556 1,475,913
Redemptions (129,383) (13,666,219) - (13,666,219)
------------- ----------------- -------------- -----------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1995 251,681 $25,795,403 $547,433 $26,342,836
============= ================= ============== =================
PARTNERS' CAPITAL,
DECEMBER 31, 1995 225,594 $25,710,675 $345,379 $26,056,054
Net loss - (1,648,593) (17,489) (1,666,082)
Redemptions (99,011) (10,509,921) - (10,509,921)
------------- ----------------- -------------- -----------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1996 126,583 $13,552,161 $327,890 $13,880,051
============= ================= ============== =================
</TABLE>
See notes to financial statements.
4
<PAGE>
THE SECTOR STRATEGY FUND (SM) V 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 The SECTOR Strategy Fund (SM) V L.P. (the
"Partnership" or the "Fund") as of September 30, 1996 and the results of
its operations for the nine months ended September 30, 1996 and 1995.
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 general 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, 1995 (the "Annual Report").
2. RELATED PARTY TRANSACTIONS
The Partnership pays brokerage commissions to MLF, at a flat monthly rate
of 0.833 of 1% (a 10% annual rate) of the Partnership's month-end Net
Assets allocated to trading. Assets allocated to trading are not reduced,
for purposes of calculating brokerage commissions, by any accrued but
unpaid brokerage commissions, Profit shares or other fees or charges.
Effective January 1, 1996, the brokerage commission the Partnership pays
to the Commodity Broker was reduced to .8125% (a 9.75% annual rate), and
the Partnership began to pay an administrative fee to the General Partner
of .020833% (a .25% annual rate). The General Partner estimates that the
round-turn equivalent commission rate charged to the Partnership during
the nine months ended September 30, 1996 and 1995 was approximately $54
and $21 respectively (not including, in calculating round-turn
equivalents, forward contracts on a futures-equivalent basis).
MLF pays the Advisors annual Consulting Fees ranging from 2% to 4% of
the Partnership's average month-end assets allocated to them for
management, after reduction for a portion of the brokerage commissions.
3. FAIR VALUE AND OFF-BALANCE SHEET RISK
The Partnership trades futures, options and forward contracts in interest
rates, stock indices, commodities, currencies, energy and metals. The
Partnership's revenues by reporting category for the nine months ended
September 30, 1996 were as follows:
<TABLE>
<CAPTION>
1996
----
<S> <C>
Interest rate and Stock Indices $(512,967)
Commodities (143,679)
Currencies 169,792
Energy (603,339)
Metals (162,657)
--------------------
$1,252,850
====================
</TABLE>
Market Risk
-----------
Derivative instruments involve varying degrees of off-balance sheet market
risk, and changes in the level or volatility of interest rates, foreign
currency exchange rates or the market values of the financial instruments
or commodities underlying such derivative instruments frequently result in
changes in the Partnership's unrealized gain or loss on such derivative
instruments as reflected in the Statements of Financial Condition. The
Partnership's exposure to market risk is influenced by a number of
factors, including the relationships among the derivative instruments held
by the
5
<PAGE>
Partnership as well as the volatility and liquidity of the markets
in which the derivative instruments are traded.
The General Partner has procedures in place intended to control market
risk, although there can be no assurance that they will, in fact, succeed
in doing so. These procedures focus primarily on monitoring the trading of
the Advisors selected from time to time for the Partnership, adjusting the
percentage of the Partnership's total assets allocated to trading,
calculating the Net Asset Value of the Advisors' respective Partnership
accounts as of the close of business on each day and reviewing outstanding
positions for over-concentration both on an Advisor-by-Advisor and on an
overall Partnership basis. While the General Partner does not itself
intervene in the markets to hedge or diversify the Partnership's market
exposure (although the General Partner does adjust the percentage of the
Partnership's total assets allocated to trading), the General Partner may
urge Advisors to reallocate positions, or itself reallocate Partnership
assets among Advisors (although typically only as of the end of a month)
in an attempt to avoid over-concentrations. However, such interventions
are unusual. Except in cases in which it appears that an Advisor has begun
to deviate from past practice or trading policies or to be trading
erratically, the General Partner's basic risk control procedures consist
simply of the ongoing process of Advisor monitoring and selection, with
the market risk controls being applied by the Advisors themselves.
Fair Value
----------
The derivative instruments used in the Partnership's trading activities
are marked to market daily with the resulting unrealized gains or losses
recorded in the Statements of Financial Condition and the related profit
or loss reflected in trading revenues in the Statements of Operations. The
contract/notional values of open contracts as of September 30, 1996 and
December 31, 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
---------------------------------------------- -------------------------------------------------
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
and Stock
indices $82,693,226 $ 1,905,314 $179,096,703 $56,850,064
Commodities 576,152 330,447 14,318,195 4,314,805
Currencies 6,441,221 5,981,764 6,547,272 20,755,132
Energy 1,700,988 83,952 10,409,141 1,849,351
Metals 1,704,145 5,430,247 3,153,302 4,949,099
------------------ ----------------- -------------------- -------------------
$93,115,732 $13,731,724 $213,524,613 $88,718,451
================== ================= ==================== ===================
</TABLE>
Substantially all of the Partnership's derivative instruments outstanding
as of September 30, 1996 expire within one year.
The contract/notional value of exchange-traded and non-exchange-traded
open derivative instrument positions as of September 30, 1996 and December 31,
1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
------------------------------------------------------ -----------------------------------------------------
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 $87,282,661 $7,951,786 $205,483,343 $75,005,128
Non-Exchange
traded 5,833,071 5,779,938 8,041,270 13,713,323
-------------------- -------------------- --------------------- --------------------
$93,115,732 $13,731,724 $213,524,613 $88,718,451
==================== ==================== ===================== ====================
</TABLE>
The average fair value of the Partnership's derivative instrument
positions which were open as of the end of each calendar month during the
nine months ended September 30, 1996 and the year ended December 31, 1995
were as follows:
6
<PAGE>
<TABLE>
<CAPTION>
1996 1995
---------------------------------------------- -------------------------------------------------
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
and Stock
indices $71,861,120 $52,893,142 $137,303,534 $18,139,506
Commodities 5,780,293 1,500,465 8,709,133 3,311,991
Currencies 14,652,120 17,897,093 29,404,375 28,992,505
Energy 2,557,953 1,377,395 3,972,514 2,644,938
Metals 3,156,638 3,531,245 3,487,022 6,130,981
------------------ ----------------- -------------------- -------------------
$98,008,124 $77,199,340 $182,876,578 $59,219,921
================== ================= ==================== ===================
</TABLE>
A portion of the amounts indicated as off-balance sheet risk reflects
offsetting commitments to purchase and sell the same derivative instrument
on the same date in the future. These commitments are economically
offsetting but are not, as a technical matter, offset in the forward
market until the settlement date.
Credit Risk
-----------
The risks associated with exchange-traded contracts are typically
perceived to be less than those associated with over-the-counter
(non-exchange-traded) transactions, because exchanges typically (but not
universally) provide clearinghouse arrangements in which the collective
credit (in some cases limited in amount, in some cases not) of the members
of the exchange is pledged to support the financial integrity of the
exchange. In over-the-counter transactions, on the other hand, traders
must rely solely on the credit of their respective individual
counterparties. Margins, which may be subject to loss in the event of a
default, are generally required in exchange trading, and counterparties
may also require margin in the over-the-counter markets.
The fair value amounts in the above tables represent the extent of the
Partnership's market exposure in the particular class of derivative
instrument listed, but not the credit risk associated with counterparty
nonperformance. The credit risk associated with these instruments from
counterparty nonperformance is the net unrealized gain, if any, included
in the Statements of Financial Condition. The Partnership also has credit
risk because the sole counterparty or broker with respect to most of the
Partnership's assets is MLF.
As of September 30, 1996 and December 31, 1995, $11,438,323.34 and
$20,795,559 of the Partnership's assets, respectively, were held in
segregated accounts at MLF in accordance with Commodity Futures Trading
Commission regulations.
The gross unrealized gain and the net unrealized gain (loss) on the
Partnership's open derivative instrument positions as of September 30,
1996 and December 31, 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
---- ----
Gross Net Gross Net
Unrealized Unrealized Unrealized Unrealized
Gain Gain (Loss) Gain Gain (Loss)
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Exchange
traded $779,101 $690,972 $2,644,507 $2,009,512
Non-Exchange
traded 149,987 22,120 10,261 (7,978)
-------------------- -------------------- --------------------- --------------------
$929,088 $713,092 $2,654,768 $2,001,534
==================== ==================== ===================== ====================
</TABLE>
The Partnership controls credit risk by dealing almost exclusively with
Merrill Lynch entities as brokers and counterparties.
The Partnership through its normal course of business enters into various
contracts with MLF acting as its commodity broker. Pursuant to the
brokerage arrangement with MLF, such trading which results in receivables
from and payables to MLF will be offset and reported as a net receivable
or payable.
Item 2: Management's Discussion and Analysis of Financial Condition and
Results of Operation
7
<PAGE>
Operational Overview; Advisor Selections
----------------------------------------
Due to the nature of the Fund's business, its results of
operations depend on MLIP's ability to select Advisors and determine the
appropriate percentage of assets to allocate to them for trading, as well
as the Advisors' ability to recognize and capitalize on trends and other
profit opportunities in different sectors of the world commodity markets.
MLIP's Advisor selection procedure and leveraging analysis, as well as the
Advisors' trading methods, are confidential, so that substantially the
only information that can be furnished regarding the Fund's results of
operations is contained in the performance record of its trading. Unlike
operating businesses, general economic or seasonal conditions do not
directly affect the profit potential of the Fund, and its past performance
is not necessarily indicative of future results. Because of the
speculative nature of its trading, operational or economic trends have
little relevance to the Fund's results. MLIP believes, however, that there
are certain market conditions, for example, markets with strong price
trends, in which the Fund has a better likelihood of being profitable than
in others.
As of October 1, 1996, the Partnership's assets were allocated
as follows:
<TABLE>
<CAPTION>
Trading Advisor Sector Allocation
--------------- ------ ----------
<S> <C> <C>
John W. Henry & Co., Inc. Diversified 21.77
Sjo, Inc. Financials 17.41
Blenheim Investments, Inc. Diversified 8.47
Rabar Market Research, Inc. Diversified 11.22
Cash 41.13
------
100.00%
</TABLE>
MLIP expects to continue to change both allocations and Advisor
selections from time to time without advance notice to existing investors.
Results of Operations - General
-------------------------------
MLIP believes that multi-Advisor futures funds should be
regarded as medium- to long-term investments but, unlike an operating
business, it is difficult to identify "trends" in the Fund's operations
and virtually impossible to make any predictions regarding future results
based on results to date.
Markets in which sustained price trends occur with some
frequency tend to be more favorable to managed futures investments than
"whipsaw," "choppy" markets, but (i) this is not always the case, (ii) it
is impossible to predict when trending markets will occur and (iii)
different Advisors are affected differently by trends in general as well
as by particular types of trends.
The Fund controls credit risk in its trading in the derivatives
markets by trading only through Merrill Lynch entities which MLIP believes
to be creditworthy. The Fund attempts to control the market risk inherent
in its derivatives trading by utilizing a multi-advisor, multi-strategy
structure. This structure purposefully attempts to diversify the Fund's
Advisor group among different strategy types and market sectors in an
effort to reduce risk (although the Fund's portfolio currently emphasizes
technical and trend-following approaches).
Performance Summary
-------------------
During the first nine months of 1995, the Fund's average
month-end Net Assets equalled $33,183,528, and the Fund recognized gross
trading gains of $2,489,121 or 7.50% of such average month-end Net Assets.
Brokerage commissions of $1,876,982 or 5.66%, Profit Shares of $449,993 or
1.36% of average month-end Net Assets were paid. Interest income of
$1,313,767 or 3.96% of average month-end Net Assets resulted in a net gain
of $1,475,913 or 4.45% of average month-end Net Assets, which resulted in
a 3.51% increase in the Net Asset Value per Unit since December 31, 1994.
During the first nine months of 1996, the Fund's average
month-end Net Assets equalled $18,831,565, and the Fund recognized gross
trading losses of $1,252,850 or 6.65% of such average month-end Net
Assets. Brokerage commissions of $1,040,546 or 5.53%, Administrative
expense of $26,681 or .14% and Profit Shares of $4,590 or .02% of average
month-end Net Assets were paid. Interest income of $658,585 or 3.5% of
average month-end Net Assets resulted in net loss of $1,666,082 or 8.85%
of average month-end Net Assets which resulted in a 5.06% decrease in the
Net Asset Value per Unit since December 31, 1995.
During the first nine months of 1996 and 1995, the Fund
experienced 9 profitable months and 9 unprofitable months.
8
<PAGE>
<TABLE>
<CAPTION>
MONTH-END NET ASSET VALUE PER UNIT
- ---------------------------------------------------------------------------------------
Jan. Feb. Mar. April May June July Aug. Sept.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
1995 $99.58 $103.91 $107.84 $109.57 $113.00 $110.57 $106.99 $105.71 $104.67
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
1996 $115.53 $106.85 $105.04 $107.19 $104.38 $103.82 $104.12 $105.68 $109.65
=======================================================================================
</TABLE>
Importance of Market Factors
----------------------------
Comparisons between the Fund's performance in a given period in
one fiscal year to the same period in a prior year are unlikely to be
meaningful, given the uncertainty of price movements in the markets traded
by the Fund. In general, MLIP expects that the Fund is most likely to
trade successfully in markets which exhibit strong and sustained price
trends. The current Advisor group emphasizes technical and trend-following
methods. Consequently, one would expect that in trendless, "choppy"
markets the Fund would likely be unprofitable, while in markets in which
major price movements occur, the Fund would have its best profit potential
(although there could be no assurance that the Fund would, in fact, trade
profitably). However, trend-followers not infrequently will miss major
price movements, and market corrections can result in rapid and material
losses (sometimes as much as 5% in a single day). Although MLIP monitors
market conditions and Advisor performance on an ongoing basis in
overseeing the Fund's trading, MLIP does not attempt to "market forecast"
or to "match" trading styles with predicted market conditions. Rather,
MLIP concentrates on quantitative and qualitative analysis of prospective
Advisors, as well as on statistical studies of the historical performance
parameters of different Advisor combinations in selecting Advisors and
allocating and reallocating Fund assets among them.
Because managed futures advisors' strategies are proprietary and
confidential and market movements unpredictable, selecting advisors to
implement speculative trading strategies involves considerable
uncertainty. Furthermore, the concentration of the Fund's current Advisor
portfolio, both in terms of the number of managers retained and the common
emphasis of their strategies on technical and trend-following methods,
increases the risk that unexpectedly bad performance, turbulent market
conditions or a combination of the two will result in significant losses.
MLIP's Advisor Selections
-------------------------
MLIP has no timetable or schedule for making Advisor changes or
reallocations, and generally intends to make a medium- to long-term
commitment to all Advisors selected. However, there can be no assurance as
to the frequency or number of the Advisor changes which may take place in
the future, or as to how long any of the current Advisors will continue to
manage assets for the Fund.
Liquidity
---------
Most of the Partnership's assets are held as cash which, in
turn, is used to margin its futures positions and earns interest income
and is withdrawn, as necessary, to pay redemptions and fees.
The futures contracts in which the Partnership trades may become
illiquid under certain market conditions. Commodity exchanges limit
fluctuations in futures prices during a single day by regulations referred
to as "daily limits." During a single day no trades may be executed at
prices beyond the daily limit. Once the price of a futures contract for a
particular commodity has increased or decreased by an amount equal to the
daily limit, positions in the commodity can generally neither be taken nor
liquidated unless traders are willing to effect trades at or within the
limit. Futures contracts have occasionally moved to the daily limit for
several consecutive days with little or no trading. Such market conditions
could prevent the Partnership from promptly liquidating its futures
(including its options) positions. There are no limitations on the daily
price moves in trading foreign currency forward contracts through banks,
although illiquidity may develop in the forward markets due to large
spreads between "bid" and "ask" prices quoted. (Forward contracts are the
bank version of currency futures contracts and are not traded on
exchanges.)
Capital Resources
-----------------
The Partnership does not have, nor does it expect to have, any
capital assets and has no material commitments for capital expenditures.
The Partnership uses its assets to supply the necessary margin or premiums
for, and to pay any losses incurred in connection with, its trading
activity and to pay redemptions and fees.
Inflation is not a significant factor in the Fund's
profitability, although inflationary cycles can give rise to the type of
major price movements which can have a materially favorable or adverse
impact on the Fund's performance.
Changes in the level of prevailing interest rates (a factor
generally associated with inflation) could have a material effect on the
percentage of the total capital which is committed to
9
<PAGE>
trading, as interest rates affect the calculation of the discounted
minimum Net Asset Value per Unit which Merrill Lynch & Co., Inc. has
guaranteed to investors.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
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 nine months
of fiscal 1996.
10
<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.
THE SECTOR STRATEGY FUND (SM) V L.P.
By: MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
Date: November 11, 1996 By /s/ JOHN R. FRAWLEY, JR.
-----------------------
John R. Frawley, Jr.
President, Chief Executive Officer
and Director
Date: November 11, 1996 By /s/ JAMES M. BERNARD
--------------------
James M. Bernard
Chief Financial Officer,
Treasurer and Senior Vice President
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION, CONSOLIDATED STATEMENTS OF OPERATIONS,
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000890015
<NAME> SECTOR STRATEGY FUND V L.P.
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> SEP-30-1996 SEP-30-1995
<CASH> 0 0
<RECEIVABLES> 14,360,728 28,105,106
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 14,360,728 28,105,106
<SHORT-TERM> 0 0
<PAYABLES> 480,677 1,762,270
<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> 13,880,051 26,342,836
<TOTAL-LIABILITY-AND-EQUITY> 14,360,728 28,105,106
<TRADING-REVENUE> (1,252,850) 2,489,121
<INTEREST-DIVIDENDS> 658,585 1,313,767
<COMMISSIONS> 1,071,817 2,326,975
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> (1,666,082) 1,475,913
<INCOME-PRE-EXTRAORDINARY> (1,666,082) 1,475,913
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (1,666,082) 1,475,913
<EPS-PRIMARY> (9.24) 4.75
<EPS-DILUTED> (9.24) 4.75
</TABLE>
