<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 0-22448
THE SECTOR STRATEGY FUNDSM VI L.P.
--------------------------------------
(Exact Name of Registrant as
specified in its charter)
Delaware 13-3714541
- ------------------------------- ---------------------------------
(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 FUNDSM VI L.P.
------------------------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Accrued interest $ 118,654 $ 221,036
Equity in commodity futures trading accounts:
Cash and option premiums 31,783,612 51,992,222
Net unrealized gain on open contracts 778,600 2,515,186
------------------ ------------------
TOTAL $32,680,866 $54,728,444
================== ==================
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $ 724,439 $ 3,684,264
Brokerage commissions payable (Note 2) 139,609 295,137
Profit shares - 318,030
Administrative expense payable (Note 2) 3,580 -
------------------ ------------------
Total liabilities 867,628 4,297,431
------------------ ------------------
PARTNERS' CAPITAL:
General Partners (6,971 and 6,971 Units) 707,615 723,241
Limited Partners (305,554 and 477,746 Units) 31,105,623 49,707,772
------------------ ------------------
Total partners' capital 31,813,238 50,431,013
------------------ ------------------
TOTAL $32,680,866 $54,728,444
================== ==================
NET ASSET VALUE PER UNIT
(Based on 312,525 and 484,717 Units outstanding) $101.79 $104.04
======= =======
</TABLE>
See notes to financial statements.
2
<PAGE>
THE SECTOR STRATEGY FUNDSM VI 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 (loss) profit:
Realized $(1,415,658) $(23,079) $2,212,368 $9,656,916
Change in unrealized 542,963 (1,130,909) (1,736,586) (5,594,950)
-------------- ------------- ------------- -------------
Total trading results (872,695) (1,153,988) 475,782 4,061,966
-------------- ------------- ------------- -------------
Interest income 387,494 980,315 1,364,045 3,372,608
-------------- ------------- ------------- -------------
Total revenues (485,201) (173,673) 1,839,827 7,434,574
-------------- ------------- ------------- -------------
EXPENSES:
Profit shares - 151,765 370,985 768,135
Brokerage commissions (Note 2) 482,156 1,444,633 1,988,061 4,866,533
Administrative expense (Note 2) 12,363 - 50,976 -
-------------- ------------- ------------- -------------
Total expenses 494,519 1,596,398 2,410,022 5,634,668
-------------- ------------- ------------- -------------
NET (LOSS) INCOME $ (979,720) $(1,770,071) $ (570,195) $1,799,906
============== ============= ============= =============
NET (LOSS) INCOME PER UNIT:
Weighted average number of units
outstanding 330,885 784,398 382,921 863,864
======== ======== ======== ========
Weighted average net (loss)
income per Limited Partner
unit and General Partner unit $(2.96) $(2.26) $(1.49) $2.08
======= ======= ======= ======
</TABLE>
See notes to financial statements.
3
<PAGE>
THE SECTOR STRATEGY FUNDSM VI 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 959,450 $92,015,350 $1,171,862 $93,187,212
Net income - 1,780,310 19,596 1,799,906
Organization and offering
cost recovery - 3,938 51 3,989
Redemptions (372,403) (37,041,434) - (37,041,434)
---------------- ------------------ ------------------ ------------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1995 587,047 $56,758,164 $1,191,509 $57,949,673
================ ================== ================== ==================
PARTNERS' CAPITAL,
DECEMBER 31, 1995 484,717 $49,707,772 $723,241 $50,431,013
Net loss - (554,569) (15,626) (570,195)
Redemptions (172,192) (18,047,580) - (18,047,580)
---------------- ------------------ ------------------ ------------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1996 312,525 $31,105,623 $ 707,615 $31,813,238
================ ================== ================== ==================
</TABLE>
See notes to financial statements.
4
<PAGE>
THE SECTOR STRATEGY FUNDSM VI 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 FundSM VI 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 $91
and $27, respectively (not including, in calculating round-turn
equivalents, forward contracts on a futures-equivalent basis).
MLF pays the Advisors annual Consulting Fees ranging from 1.5% 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 rates $ 391,106
Stock indices (426,843)
Commodities (581,963)
Currencies 830,480
Energy 1,212,507
Metals (949,505)
----------------
$ 475,782
================
</TABLE>
5
<PAGE>
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 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 rates $114,307,615 $2,952,203 $256,222,206 $40,197,235
Stock indices 2,524,973 96,768 15,444,099 152,859
Commodities 3,116,801 940,268 10,022,922 1,592,560
Currencies 11,696,142 14,592,966 18,652,929 28,557,604
Energy 2,087,272 - 7,836,813 -
Metals 7,821,498 12,924,089 10,771,040 3,811,615
------------------ ----------------- -------------------- -------------------
$141,554,301 $31,506,294 $318,950,009 $74,311,873
================== ================= ==================== ===================
</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
was 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 $129,050,576 $20,110,409 $301,919,279 $55,897,578
Non-Exchange
traded 12,503,725 11,395,885 17,030,730 18,414,295
-------------------- -------------------- --------------------- --------------------
$141,554,301 $31,506,294 $318,950,009 $74,311,873
==================== ==================== ===================== ====================
</TABLE>
6
<PAGE>
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 was 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 rates $110,590,271 $80,390,564 $226,431,553 $36,514,961
Stock indices 11,252,311 3,202,474 8,650,654 6,898,187
Commodities 10,292,010 1,240,563 16,530,777 5,190,177
Currencies 27,099,294 35,017,690 61,510,231 58,498,408
Energy 3,965,971 101,599 6,458,041 1,283,541
Metals 15,717,849 8,340,494 16,223,182 12,306,169
------------------ ----------------- -------------------- -------------------
$178,917,706 $128,293,384 $335,804,438 $120,691,443
================== ================= ==================== ===================
</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, $29,271,651 and $40,105,401 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 $1,145,588 $770,027 $3,033,800 $2,654,820
Non-Exchange
traded 390,434 8,573 127,073 (139,634)
-------------------- -------------------- --------------------- --------------------
$1,536,022 $778,600 $3,160,873 $2,515,186
==================== ==================== ===================== ====================
</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.
7
<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operation
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>
Chesapeake Capital Corp. Diversified 14.92
John W. Henry & Co., Inc. Financial/
Metals 12.41
SJO, Inc. Financials 8.37
West Course Capital, Inc. Diversified 8.23
Rabar Market Research, Inc. Diversified 8.44
Cash 47.63
------
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 $83,590,829, and the Fund recognized gross trading gains of
$4,061,966 or 4.86% of such average month-end Net Assets. Brokerage commissions
of $4,866,533 or 5.82%, Profit Shares of $768,135 or .92%. Interest income of
$3,372,608 or 4.03% of average month-end Net Assets resulted in a net gain of
$1,799,906 or 2.15% of average month-end Net Assets, which resulted in a 1.25%
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 $38,840,897, and the Fund recognized gross trading gains of
$475,782 or 1.22% of such average month-end Net Assets. Brokerage commissions of
$1,988,061 or 5.12%, Administrative expenses of $50,976 or .13%, and Profit
Shares of $370,985 or .96% of average month-end Net Assets were paid. Interest
income of $1,364,045 or 3.52% of average month-end Net Assets resulted in net
loss of $570,195 or 1.47% of average month-end Net Assets which resulted in a
2.16% decrease in the Net Asset Value per Unit since December 31, 1995.
During the first nine months of 1996 and 1995, the Fund
experienced 10 profitable months and 8 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 $ 95.55 $ 96.06 $100.28 $101.28 $103.18 $101.04 $98.30 $99.31 $ 98.71
- -------------------------------------------------------------------------------------------------------
1996 $107.43 $103.23 $105.23 $108.01 $104.83 $104.48 $98.33 $99.85 $101.79
- -------------------------------------------------------------------------------------------------------
</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
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
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 trading, as interest rates
affect the calculation of the discounted minimum Net Asset Value per Unit which
ML&Co. has guaranteed to investors.
9
<PAGE>
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 FUNDSM VI 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>
<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> 32,680,866 76,195,855
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 32,680,866 76,195,855
<SHORT-TERM> 0 0
<PAYABLES> 867,628 18,246,182
<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> 31,813,238 57,949,673
<TOTAL-LIABILITY-AND-EQUITY> 32,680,866 76,195,855
<TRADING-REVENUE> 475,782 4,061,966
<INTEREST-DIVIDENDS> 1,364,045 3,372,608
<COMMISSIONS> 2,410,022 5,634,668
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> (570,195) 1,799,906
<INCOME-PRE-EXTRAORDINARY> (570,195) 1,799,906
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
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