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Filed pursuant to Rule 424(b)(3)
Registration No. 333-10749
ML Global Horizons L.P.
Dear Limited Partner,
The Net Asset Value per Unit of ML Global Horizons L.P. (the "Fund") decreased
0.05% during June to $146.46 per Unit on June 30, 1997 from $146.53 on May 31,
1997.
Trading results proved disappointing in June, despite the return of clear price
trends to some markets, such as global equities. Stock index, metals, currency
and interest rate trading recorded profits while trading losses were incurred in
agricultural commodity and energy markets.
In June, equity markets worldwide trended mostly upward. The U.S. stock market
continued to rally to several new highs in June, before faltering somewhat by
month-end. Non U.S. stock markets, such as German and Australian, also moved
higher in June. Although trading in the Standard & Poor's 500(R) Stock Index
resulted in losses, German Stock and the Australian All Ordinaries indices
produced profits.
Metals trading recorded overall profits. Gold prices trended downward through
most of the month, following a price surge on June 5 as a halt in Russian
precious metal exports left supplies scarce. In contrast, base metals prices
experienced sharp price volatility. For example, initially copper futures prices
rose to their highest levels in a year, as world inventories dwindled amid
production problems, but prices fell dramatically by month-end. Aluminum prices
moved similarly to copper.
Difficult trading conditions in energy markets throughout June resulted in
losses. Crude oil trended downward for the first half of the month, before a
sudden price reversal occurred amid speculation that the resumption of Iraq
exports could be delayed until August, reducing supplies despite growing demand.
Unleaded gas prices fell early in June, but remained range-bound for the
remainder of the month. The price movement of heating oil proved to be even more
trendless than unleaded gas, as conflicting reports were released regarding
petroleum production supply and demand factors.
Special Notice to Limited Partners
Merrill Lynch Investment Partners Inc. ("MLIP") believes that it would be
advantageous for its multiple advisor pools, including the Fund, to increase the
flexibility of the Fund's leverage policy. Consequently,
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while the Fund's risk/reward objectives remain unchanged, beginning in July 1997
MLIP may from time to time direct certain individual Advisors to manage their
Fund accounts as if they were managing up to 50% more equity than the actual
capital allocated to them. This additional leverage is subject to the condition
that the Fund as a whole will not trade as if it had in excess of 20% more
equity than actual capital.
It is not possible to predict the effect upleveraging may have, particularly
given the Advisors' ongoing leverage adjustments to their own trading and the
anticipated non-correlation of their strategies. Increasing leverage can
generally be expected to increase profit potential, risk of loss and volatility
of returns. The flat-rate fees charged to the Fund will not be affected by this
leverage policy change. These fees will continue to be based on only the actual
capital allocated to trading.
Any change in leverage by MLIP of the Fund's trading will be reflected in the
asset allocation tables included in Fund's monthly reports.
Effective July 1, 1997, the program traded on behalf of the Fund by Di Tomasso
Group Inc. ("Di Tomasso") has been changed from Di Tomasso's Turbo Program to Di
Tomasso's Equilibrium Program. As of May 31, 1997, the Equilibrium Program's
best monthly rate of return was 31.45%, its worst monthly rate of return was
(23.95%), and Di Tomasso was managing approximately $85 million of customer
funds ("notional" funds excluded) under the Equilibrium Program.
As of July 1, 1997, the Fund's assets were allocated as follows:
Trading Advisor % Allocation
- --------------- ------------
Cheasapeake Capital Corporation 37.00
John W. Henry & Company, Inc. 24.00
ARA Portfolio Management Company, L.L.C. 13.50
Graham Capital Management, L.P. 9.50
Willowbridge Associates Inc. 9.50
Di Tomasso Group Inc. 6.50
------
100.00%
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
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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.
James M. Bernard, formerly a Senior Vice President of Merrill Lynch Investment
Partners Inc., is no longer with the firm.
The Fund continues to maintain its diversified exposure to the agriculture,
currency, energy, financial and metals markets which helped reduce losses for
June. We look forward to future opportunities for profitability as favorable
market conditions arise.
Sincerely,
John R. Frawley, Jr.
President and Chief Executive Officer
Merrill Lynch Investment Partners Inc.
(General Partner)
FOR THE EXCLUSIVE USE OF INVESTORS IN ML GLOBAL HORIZONS L.P. THIS MONTHLY
REPORT IS NOT AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY ANY
SECURITIES. AN OFFER CAN ONLY BE MADE BY A CURRENT PROSPECTUS, AS SUPPLEMENTED,
TOGETHER WITH SUMMARY FINANCIAL INFORMATION FOR THE FUND CURRENT WITHIN 60 DAYS.
THESE MATERIALS CONTAIN IMPORTANT INFORMATION ABOUT RISK FACTORS, PERFORMANCE
AND OTHER ASPECTS OF THE FUND AND MUST BE READ CAREFULLY BEFORE INVESTING.
FUTURES TRADING IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
THIS MONTHLY REPORT MUST NOT BE REPRODUCED OR DISTRIBUTED IN ANY MANNER.
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<TABLE>
<CAPTION>
ML Global Horizons L.P.
June 30, 1997
Statement of Changes
in Net Asset Value
<S> <C>
Net Asset Value (676,814 Units) at
May 31, 1997 $ 99,174,806
Plus Additions of 36,391 Units 5,329,826
Net Income/(Loss) for June 1997 (50,971)
Less Redemptions of 5,498 Units (805,237)
------------
Net Asset Value (707,707 Units) at
June 30, 1997 $103,648,424
============
Net Asset Value per Unit at
June 30, 1997 $ 146.46
============
==========================================
Statement of Income/(Loss)
June
------------
Revenues:
Realized Profit/(Loss) $ (1,131,135)
Change in Unrealized Profit/(Loss) 1,321,998
------------
Total Trading Results 190,863
Interest Income 394,394
------------
Total Revenues 585,257
Expenses:
Brokerage Commissions 606,223
Administrative Fee 20,904
Allocation of New Profit Share 20,151
Incentive Fee Override (11,050)
------------
Total Expenses 636,228
------------
Net Income/(Loss) $ (50,971)
============
</TABLE>
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To the best of the knowledge and belief of the undersigned the
information contained in this report is accurate and complete.
/s/ Michael A. Karmelin
----------------------------
Michael A. Karmelin
Chief Financial Officer
Merrill Lynch Investment Partners Inc.
Please notify the following of any address changes:
Merrill Lynch Investment Partners Inc.
Merrill Lynch World Headquarters
South Tower
World Financial Center
New York, New York 10080-6106
1-800-765-0095
