<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, 1997
---------------
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.
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
----- -----
This document contains 11 pages.
<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
---------------------------------
(a Delaware limited partnership)
--------------------------------
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
------------- ------------
<S> <C> <C>
ASSETS
- ------
Accrued interest $ 76,053 $ 93,352
Equity in commodity futures trading
accounts:
Cash and option premiums 18,274,900 22,269,250
Net unrealized profit on open
contracts 56,555 60,210
Investments 16,655,788 8,288,948
Receivable from outside investments - 1,278,557
------------ ------------
TOTAL $35,063,296 $31,990,317
============ ============
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $ 745,187 $ 928,164
Profit shares payable 283 69,505
Brokerage commissions payable 43,113 43,959
Administrative fees payable 1,229 1,782
Payable to outside investments 6,555,918 -
------------ ------------
Total liabilities 7,345,730 1,043,410
------------ ------------
PARTNERS' CAPITAL:
General Partners (6971 and 6971 Units) 768,901 758,780
Limited Partners (244322 and 277342
Units) 26,948,665 30,188,127
------------ ------------
Total partners' capital 27,717,566 30,946,907
------------ ------------
TOTAL $35,063,296 $31,990,317
============ ============
NET ASSET VALUE PER UNIT
(Based on 251293 and 284313
Units outstanding) $ 110.30 $ 108.85
============ ============
</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, June 30, June 30, June 30,
1997 1996 1997 1996
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
REVENUES:
Trading profits (loss):
Realized $ (75,615) $ 1,354,967 $171,731 $ 3,628,026
Change in unrealized (184,348) (1,293,628) (3,655) (2,279,549)
--------- ----------- --------- -----------
Total trading results (259,963) 61,339 168,076 1,348,477
--------- ----------- --------- -----------
Interest income 243,546 463,080 492,839 976,551
Income from investments (360,227) - 58,949 -
--------- ----------- --------- -----------
Total revenues (376,644) 524,419 719,864 2,325,028
--------- ----------- --------- -----------
EXPENSES:
Profit shares (45,619) 32,225 2,404 370,985
Brokerage commissions 132,536 708,501 284,093 1,505,905
Administrative fees 3,787 18,166 7,958 38,613
--------- ----------- --------- -----------
Total expenses 90,704 758,892 294,455 1,915,503
--------- ----------- --------- -----------
NET INCOME (LOSS) $(467,348) $ (234,473) $425,409 $ 409,525
========= =========== ========= ===========
NET INCOME (LOSS) PER UNIT:
Weighted average number of units
outstanding 263,680 376,592 271,238 409,190
========= =========== ========= ===========
Weighted average net income (loss)
per Limited Partner and General
Partner Unit $ (1.77) $ (0.62) $ 1.57 $ 1.00
========= =========== ========= ===========
</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, 1997 and 1996
-----------------------------------------------
<TABLE>
<CAPTION>
Units Limited General Total
Partners Partner
---------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
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
========== ============= ========== ============
PARTNERS' CAPITAL,
December 31, 1996 284,313 $ 30,188,127 $758,780 $ 30,946,907
Net income - 415,288 10,121 425,409
Redemptions (33,020) (3,654,750) - (3,654,750)
---------- ------------- ---------- ------------
PARTNERS' CAPITAL,
June 30, 1997 251,293 $ 26,948,665 $768,901 $ 27,717,566
========== ============= ========== ============
</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" or the "Fund") as of June 30, 1997 and the results of its
operations for the six months ended June 30, 1997 and 1996. 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, 1996 (the "Annual Report").
2. INVESTMENT
At June 30, 1997 the Partnership had an investment in the ML JWH Financial
and Metals Portfolio L.L.C. ("JWH LLC"), ML Chesapeake Diversified L.L.C.
("Chesapeake LLC"), and the Sjo Prospect Global Diversified Portfolio
L.L.C. ("SJO LLC").
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)
ended June 30, 1997 Revenue Commissions Fees Shares from Investments
----------- ------------ -------------- --------- ------------------
<S> <C> <C> <C> <C> <C>
JWH LLC $ (159,834) $ 69,011 $ 1,971 $ - $ (230,816)
Chesapeake LLC (106,047) 98,941 2,827 (41,621) (166,194)
SJO LLC 101,000 59,154 1,690 3,373 36,783
----------- ------------ -------------- --------- ------------------
Total ($164,881) $227,106 $ 6,488 ($38,248) ($360,227)
=========== ============ ============== ========= ==================
<CAPTION>
For the six months Total Brokerage Administrative Profit Income (loss)
ended June 30, 1997 Revenue Commissions Fees Shares from Investments
----------- ------------ -------------- --------- ------------------
<S> <C> <C> <C> <C> <C>
JWH LLC $ (26,936) $149,335 $ 4,182 $ 639 $ (181,092)
Chesapeake LLC 341,432 211,231 5,873 25,853 98,475
SJO LLC 288,219 124,015 3,475 19,163 141,566
----------- ------------ -------------- --------- ------------------
Total $ 602,715 $484,581 $13,530 $ 45,655 $ 58,949
=========== ============ ============== ========= ==================
</TABLE>
5
<PAGE>
3. FAIR VALUE AND OFF-BALANCE SHEET RISK
The Partnership's revenues 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,
1997 1996 1997 1996
-------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Interest rates $ (90,581) $(441,442) $(88,402) $ (743,220)
Stock indices 20,479 45,434 107,467 669,091
Commodities (72,009) (121,344) 74,907 (258,923)
Currencies (24,430) 844,987 138,866 1,468,603
Energy (90,482) 413,482 (68,382) 904,136
Metals (2,940) (679,778) 3,620 (691,210)
-------------- -------------- ------------- ------------
$(259,963) $ 61,339 $168,076 $1,348,477
============== ============== ============= ============
</TABLE>
Fair Value
- ----------
The contract/notional values of the Partnership's open derivative instrument
positions as of June 30, 1997 and December 31, 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
---------------------------------------- ----------------------------------------
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 $ 7,946,938 $2,691,982 $19,868,322 $1,564,238
Stock Indices 938,027 600,884 - 250,367
Commodities 469,975 509,163 120,648 324,279
Currencies 822,968 1,896,735 1,050,027 3,065,985
Energy 39,600 231,984 82,109 -
Metals 462,370 797,670 639,127 1,085,360
--------------- --------------- --------------- ---------------
$10,679,878 $6,728,418 $21,760,233 $6,290,229
=============== =============== =============== ===============
</TABLE>
The contract/notional value of the Partnership's exchange-traded and non-
exchange-traded open derivative instrument positions as of June 30, 1997 and
December 31, 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
---------------------------------------- ----------------------------------------
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 $10,217,507 $6,266,047 $21,171,231 $5,598,019
Non-Exchange
traded 462,371 462,371 589,002 692,210
--------------- --------------- --------------- ---------------
$10,679,878 $6,728,418 $21,760,233 $6,290,229
=============== =============== =============== ===============
</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, 1997 and the year ended December 31, 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
---------------------------------------- ----------------------------------------
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 $19,419,336 $12,925,071 $ 99,859,109 $61,662,340
Stock Indices 1,010,058 752,341 9,556,040 2,455,672
Commodities 1,393,384 629,444 8,046,443 1,227,924
Currencies 1,639,985 3,794,966 21,644,329 27,211,306
Energy 470,038 460,106 3,186,493 101,599
Metals 1,040,636 926,748 12,593,308 6,776,261
--------------- --------------- --------------- ---------------
$24,973,437 $19,488,676 $154,885,722 $99,435,102
=============== =============== =============== ===============
</TABLE>
As of June 30, 1997 and December 31, 1996, $15,874,494 and $19,264,937 of the
Partnership's assets, respectively, were held in segregated accounts at MLF in
accordance with Commodity Futures Trading Commission regulations.
The gross unrealized profit and the net unrealized profit (loss) on the
Partnership's open derivative instrument positions as of June 30, 1997 and
December 31, 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
-------------------------------- -------------------------------
Gross Net Gross Net
Unrealized Unrealized Unrealized Unrealized
Profit Profit (Loss) Profit Profit (Loss)
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Exchange
traded $124,401 $ 67,699 $ 80,876 $64,542
Non-Exchange
traded 13,037 (11,144) 34,397 (4,332)
--------------- --------------- --------------- ---------------
$137,438 $ 56,555 $115,273 $60,210
=============== =============== =============== ===============
</TABLE>
Item 2: Management's Discussion and Analysis of Financial Condition and Results
-----------------------------------------------------------------------
of Operations
-------------
Operational Overview; Advisor Selections
- ----------------------------------------
Due to the nature of the Fund's business, its results of operations
depend on Merrill Lynch Investment Partners Inc.'s ("MLIP") 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.
7
<PAGE>
As of July 1, 1997, the Partnership's assets were allocated as follows:
<TABLE>
<CAPTION>
%
Trading Advisor Sector Allocation
--------------- ------ -----------
<S> <C> <C>
Chesapeake Capital Corp. Diversified 20.03
John W. Henry & Company, Inc. Financial/
Metals 20.03
Sjo, Inc. Financials 20.03
Northfield Trading Diversified 20.03
Cash 19.88
------
100.00%
</TABLE>
MLIP expects to continue to change both allocations and Advisor
selections from time to time without advance notice to existing investors.
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.
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 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 average month-end Net Assets. Brokerage commissions of
$1,505,905 or 3.56%, Administrative fees of $38,613 or 0.09%, and Profit Shares
of $370,985 or 0.88% of average month-end Net Assets were paid. Interest income
of $976,551 or 2.31% of average month-end Net Assets resulted in a net gain 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.
During the first six months of 1997, the Fund's average month-end Net
Assets equalled $29,730,636 and the Fund recognized gross trading gains of
$168,076 or .57% and Income from Investments of $58,949 or .20% of such average
month-end Net Assets. Brokerage commissions of $284,093 or .96%, Administrative
fees of $7,958 or .03% and Profit Shares of $2,404 or .01% of average month-end
Net Assets were paid. Interest income of $492,839 or 1.66% of average month-end
Net Assets resulted in a net gain of $425,409 or 1.43% of average month-end Net
Assets, which resulted in a 1.33% gain in the Net Asset Value per Unit since
December 31, 1996.
During the first six months of 1997 and 1996, the Fund experienced 6
profitable months and 6 unprofitable months.
<TABLE>
<CAPTION>
MONTH-END NET ASSET VALUE PER UNIT
------------------------------------------------------------
Jan. Feb. Mar. Apr. May June
------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1996 $107.43 $103.23 $105.23 $108.01 $104.83 $104.48
------------------------------------------------------------
1997 $110.66 $112.34 $112.02 $110.16 $109.61 $110.30
------------------------------------------------------------
</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
8
<PAGE>
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.
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 Merrill
Lynch & Co., Inc. has guaranteed to investors.
9
<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.
John W. Henry & Company, Inc. ("JWH") is one of the Advisors retained by
the Fund, managing approximately 20.03% of the Fund's assets committed to
trading July 1, 1997. In September 1996, JWH was named as a co-defendant in a
class action lawsuit brought in the California Superior Court, Los Angeles
County and in the New York Supreme Court, New York County. In November, JWH was
named as a co-defendant in a class action complaint filed in Superior Court of
the State of Delaware for Newcastle County that contained the same allegations
as the New York and California complaints. The actions, which seek unspecified
damages, purport to be brought on behalf of investors in certain Dean Witter,
Discover & Co. ("Dean Witter") commodity pools, some of which are advised by
JWH, and are primarily directed at Dean Witter's alleged fraudulent selling
practices in connection with the marketing of those pools. JWH is essentially
alleged to have aided and abetted or directly participated with Dean Witter in
those practices. JWH believes the allegations against it are without merit; it
intends to contest these allegations vigorously, and is convinced that it will
be shown to have acted properly and in the best interest of the investors.
On June 24, 1997, the Commodity Futures Trading Commission("CFTC")
accepted an Offer of Settlement from Merrill Lynch Futures Inc. ("MLF") and
others, in a matter captioned "In the Matter of Mitsubishi Corporation and
Merrill Lynch Futures Inc., et al.", CFTC Docket No. 97-10, pursuant to which
MLF, without admitting or denying the allegations against it, consented to a
finding by the CFTC that MLF had violated Section 4c(a)(A) of the Commodity
Exchange Act (the "Act"), relating to wash sales, and CFTC Regulation 1.37(a),
relating to recordkeeping requirements . MLF agreed to cease and desist from
violating Section 4c(a)(A) of the Act and Regulation 1.37(a), and to pay a civil
monetary penalty of $175,000.
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
James M. Bernard, formerly a Senior Vice President of MLIP is no longer
with the firm.
Michael A. Karmelin has been appointed Chief Financial Officer, Vice
President and Treasurer of MLIP. Mr. Karmelin assumed these positions on April
14, 1997, when he completed his tenure as Chief Financial Officer of Merrill
Lynch, Hubbard Inc. ("ML Hubbard"), a sponsor of real estate limited
partnerships. Mr. Karmelin was born in 1947. Mr. Karmelin joined ML Hubbard in
January 1994 as a Vice President. From May 1994 until he joined MLIP, Mr.
Karmelin was the Chief Financial Officer of ML Hubbard, responsible for its
accounting, treasury and tax functions. Prior to joining ML Hubbard, Mr.
Karmelin held several senior financial positions with Merrill Lynch & Co., Inc.
("ML&Co.") and Merrill Lynch, Pierce, Fenner & Smith Incorporated from December
1985 to December 1993, including Vice President/Senior Financial Officer
Corporate Real Estate and Purchasing, Manager Commitment Control/Capital
Budgeting, and Senior Project Manager/Project Analysis. Prior to joining
ML&Co., Mr. Karmelin was employed at Avco Corporation for 17 years, where he
held a variety of financial positions. Mr. Karmelin holds a B.B.A. degree in
Accounting from Baruch College, C.U.N.Y. and a Master of Business Administration
degree in Corporate Strategy and Finance from New York University. Mr. Karmelin
passed the Certified Public Accountant examination in 1974 and is a member of
the Treasury Management Association, the Institute of Management Accountants and
The Strategic Leadership Forum.
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 1997.
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 12, 1997 By /s/ JOHN R. FRAWLEY, JR.
------------------------
John R. Frawley, Jr.
President, Chief Executive Officer
and Director
Date: August 12, 1997 By /s/ MICHAEL A. KARMELIN
-----------------------
Michael A. Karmelin
Chief Financial Officer, Vice President
and Treasurer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1997 JAN-01-1996
<PERIOD-END> JUN-30-1997 JUN-30-1996
<CASH> 0 0
<RECEIVABLES> 35,063,296 92,143,682
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 35,063,296 92,143,682
<SHORT-TERM> 0 0
<PAYABLES> 7,345,730 6,477,367
<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> 27,717,566 85,666,315
<TOTAL-LIABILITY-AND-EQUITY> 35,063,296 92,143,682
<TRADING-REVENUE> 168,076 1,348,477
<INTEREST-DIVIDENDS> 492,839 976,551
<COMMISSIONS> 294,455 1,915,503
<INVESTMENT-BANKING-REVENUES> 58,949 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> 425,409 409,525
<INCOME-PRE-EXTRAORDINARY> 425,409 409,525
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 425,409 409,525
<EPS-PRIMARY> 1.57 1.00
<EPS-DILUTED> 1.57 1.00
</TABLE>
