<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, 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 FUND/SM/ 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 FUND/SM/ VI L.P.
--------------------------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Accrued interest $ 145,776 $ 221,036
Equity in commodity futures trading accounts:
Cash and option premiums 36,867,125 51,992,222
Net unrealized gain on open contracts 235,637 2,515,186
------------- -------------
TOTAL $37,248,538 $54,728,444
============= =============
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $ 1,272,044 $ 3,684,264
Brokerage commissions payable (Note 2) 229,775 295,137
Profit shares 32,225 318,030
Administrative expense payable (Note 2) 5,892 -
------------- -------------
Total liabilities 1,539,936 4,297,431
------------- -------------
PARTNERS' CAPITAL:
General Partners (6,971 and 6,971 Units) 726,295 723,241
Limited Partners (334,799 and 477,746 Units) 34,982,307 49,707,772
------------- -------------
Total partners' capital 35,708,602 50,431,013
------------- -------------
TOTAL $37,248,538 $54,728,444
============= =============
NET ASSET VALUE PER UNIT
(Based on 341,770 and 484,717 Units outstanding) $104.48 $104.04
======= =======
</TABLE>
See notes to financial statements.
2
<PAGE>
THE SECTOR STRATEGY FUND/SM/ VI 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, 1996 June 30, 1995 June 30, 1996 June 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES:
Trading profits (loss):
Realized $1,354,967 $ 6,799,277 $ 3,628,026 $ 9,679,997
Change in unrealized (1,293,628) (4,980,446) (2,279,549) (4,464,041)
------------- ------------- ------------- -------------
Total trading results 61,339 1,818,831 1,348,477 5,215,956
------------- ------------- ------------- -------------
Interest income 463,080 1,169,487 976,551 2,392,293
------------- ------------- ------------- -------------
Total revenues 524,419 2,988,318 2,325,028 7,608,249
------------- ------------- ------------- -------------
EXPENSES:
Profit shares 32,225 383,024 370,985 616,370
Brokerage commissions (Note 2) 708,501 1,727,318 1,505,905 3,421,900
Administrative expense (Note 2) 18,166 - 38,613 -
------------- ------------- ------------- -------------
Total expenses 758,892 2,110,342 1,915,503 4,038,270
------------- ------------- ------------- -------------
NET (LOSS) INCOME $ (234,473) $ 877,976 $ 409,525 $ 3,569,979
============= ============= ============= =============
NET (LOSS) INCOME PER UNIT:
Weighted average number of units
outstanding 376,592 859,507 409,190 903,597
======= ======= ======= =======
Weighted average net (loss)
income per unit $(.62) $1.02 $1.00 $3.95
===== ===== ===== =====
</TABLE>
See notes to financial statements.
3
<PAGE>
THE SECTOR STRATEGY FUND/SM/ VI L.P.
--------------------------------------
(a Delaware limited partnership)
------------------------------
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
------------------------------------------
For the six months ended June 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 - 3,523,705 46,274 3,569,979
Redemptions (156,348) (15,711,007) - (15,711,007)
----------- ------------- ----------- -------------
PARTNERS' CAPITAL,
JUNE 30, 1995 803,102 $79,828,048 $1,218,136 $81,046,184
=========== ============= =========== =============
PARTNERS' CAPITAL,
DECEMBER 31, 1995 484,717 $49,707,772 $723,241 $50,431,013
Net income - 406,471 3,054 409,525
Redemptions (142,947) (15,131,936) - (15,131,936)
----------- ------------- ----------- -------------
PARTNERS' CAPITAL,
JUNE 30, 1996 341,770 $34,982,307 $726,295 $35,708,602
=========== ============= =========== =============
</TABLE>
See notes to financial statements.
4
<PAGE>
THE SECTOR STRATEGY FUND/SM/ 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 Fund/SM/ VI L.P. (the
"Partnership") as of June 30, 1996 and the results of its operations for
the six months ended June 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 six months ended June 30, 1996 and 1995 was approximately $97 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 six months ended June
30, 1996 were as follows:
<TABLE>
<CAPTION>
1996
----
<S> <C>
Interest rates $ (743,220)
Stock indices 669,091
Commodities (258,923)
Currencies 1,468,603
Energy 904,136
Metals (691,210)
---------------
$1,348,477
===============
</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 June 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 $ 64,362,148 $30,852,151 $256,222,206 $40,197,235
Stock indices 12,019,396 1,668,252 15,444,099 152,859
Commodities 15,292,607 1,124,155 10,022,922 1,592,560
Currencies 23,309,598 32,408,455 18,652,929 28,557,604
Energy 5,760,975 - 7,836,813 -
Metals 13,861,908 11,034,270 10,771,040 3,811,615
--------------- -------------- --------------- --------------
$134,606,632 $77,087,283 $318,950,009 $74,311,873
=============== ============== =============== ==============
</TABLE>
Substantially all of the Partnership's derivative instruments outstanding
as of June 30, 1996 expire within one year.
The contract/notional value of exchange-traded and non-exchange-traded open
derivative instrument positions as of June 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 $118,503,844 $61,541,521 $301,919,279 $55,897,578
Non-Exchange
traded 16,102,788 15,545,762 17,030,730 18,414,295
---------------- --------------- ---------------- ----------------
$134,606,632 $77,087,283 $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 six months
ended June 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 $ 80,270,657 $111,000,042 $226,431,553 $ 36,514,961
Stock indices 15,463,566 1,974,222 8,650,654 6,898,187
Commodities 12,675,190 1,332,578 16,530,777 5,190,177
Currencies 24,001,147 39,925,429 61,510,231 58,498,408
Energy 4,658,580 101,598 6,458,041 1,283,541
Metals 18,064,623 6,845,379 16,223,182 12,306,169
------------ ------------ ------------ ------------
$155,133,763 $161,179,248 $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 June 30, 1996 and December 31, 1995, $33,524,296 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 June 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 $1,448,489 $470,616 $3,033,800 $2,654,820
Non-Exchange
traded 585,315 (234,979) 127,073 (139,634)
------------ -------------- ------------ -------------
$2,033,804 $235,637 $3,160,873 $2,515,186
============ ============== ============ =============
</TABLE>
The Partnership controls credit risk by dealing almost exclusively with
Merrill Lynch entities as brokers and counterparties.
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 each series' 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 July 1, 1996, the Partnership's assets were allocated as
follows:
<TABLE>
<CAPTION>
%
Trading Advisor Sector Allocation
--------------- ------ ----------
<S> <C> <C>
Chesapeake Capital Corp. Diversified 20.27
John W. Henry & Co., Inc. Financial/
Metals 16.22
Red Oak Commodity Advisors, Inc. Diversified 10.21
SJO, Inc. Financials 8.56
West Course Capital, Inc. Diversified 10.41
Rabar Market Research, Inc. Diversified 10.09
Cash 24.24
------
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 six months of 1995, the Fund's average month-end Net
Assets equalled $88,302,759, and the Fund recognized gross trading gains of
$5,215,956 or 5.91% of such average month-end Net Assets. Brokerage
commissions of $3,421,900 or 3.88%, Profit Shares of $616,370 or .70%.
Interest income of $2,392,293 or 2.71% of average month-end Net Assets
resulted in a net gain of $3,569,979 or 4.04% of average month-end Net
Assets, which resulted in a 3.64% increase in the Net Asset Value per Unit
since December 31, 1994.
During the first six months of 1996, the Fund's average month-end Net
Assets equalled $42,272,233, and the Fund recognized gross trading gains of
$1,348,477 or 3.19% of such average month-end Net Assets. Brokerage
commissions of $1,505,905 or 3.56%, Administrative expenses of $38,613 or
.09%, and Profit Shares of $370,985 or .88% of average month-end Net Assets
were paid. Interest income of $976,551 or 2.31% of average month-end Net
Assets resulted in net income of $409,525 or .97% of average month-end Net
Assets which resulted in a .42% increase in the Net Asset Value per Unit
since December 31, 1995.
8
<PAGE>
During the first six months of 1996 and 1995, the Fund experienced 7
profitable months and 5 unprofitable months.
<TABLE>
<CAPTION>
MONTH-END NET ASSET VALUE PER UNIT
---------------------------------------------------------------------
Jan. Feb. Mar. April May June
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1995 $ 95.55 $ 96.06 $100.28 $101.28 $103.18 $101.04
---------------------------------------------------------------------
1996 $107.43 $103.23 $105.23 $108.01 $104.83 $104.48
---------------------------------------------------------------------
</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.
9
<PAGE>
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 attributable to various series of Units 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.
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 six 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/ VI L.P.
By: MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
Date: August 9, 1996 By /s/JOHN R. FRAWLEY, JR.
-----------------------
John R. Frawley, Jr.
President, Chief Executive Officer
and Director
Date: August 9, 1996 By /s/JAMES M. BERNARD
-------------------
James M. Bernard
Chief Financial Officer,
Treasurer and Senior Vice President
<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> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> JUN-30-1996 JUN-30-1995
<CASH> 0 0
<RECEIVABLES> 37,248,538 84,386,882
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 37,248,538 84,386,882
<SHORT-TERM> 0 0
<PAYABLES> 1,539,936 3,340,698
<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> 35,708,602 81,046,184
<TOTAL-LIABILITY-AND-EQUITY> 37,248,538 84,386,882
<TRADING-REVENUE> 1,348,477 5,215,956
<INTEREST-DIVIDENDS> 976,551 2,392,293
<COMMISSIONS> 1,915,503 4,038,270
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> 409,525 3,569,979
<INCOME-PRE-EXTRAORDINARY> 409,525 3,569,979
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 409,525 3,569,979
<EPS-PRIMARY> 1.00 3.95
<EPS-DILUTED> 1.00 3.95
</TABLE>
