ML GLOBAL HORIZONS LP - 10-K Annual Report

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(x) Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

For the fiscal year ended: December 31, 2002
or
( ) Transition Report Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934

Commission file number: 0-23240

ML GLOBAL HORIZONS L.P.
-----------------------
(Exact name of registrant as specified in its charter)

DELAWARE 13-3716393
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

c/o MERRILL LYNCH INVESTMENT MANAGERS LLC
222 BROADWAY
27TH FLOOR
NEW YORK, NY 10038-2510
-----------------------
(Address of principal executive offices)

Registrant's telephone number, including area code: (609) 282-6996

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: None

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: Limited Partnership
Units

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
--- ---

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

Aggregate market value of the voting and non-voting common equity held by
non-affiliates: the registrant is a limited partnership; as of February 1, 2003,
limited partnership units with an aggregate value of $49,308,161, were
outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

The registrant's "2002 Annual Report and Independent Auditors' Report," the
annual report to security holders for the fiscal year ended December 31, 2002,
is incorporated by reference into Part II, Item 8 and Part IV hereof and filed
as an Exhibit herewith.

ML GLOBAL HORIZONS L.P.

ANNUAL REPORT FOR 2002 ON FORM 10-K

TABLE OF CONTENTS

i

PART I

ITEM 1: BUSINESS

(a) GENERAL DEVELOPMENT OF BUSINESS:

ML Global Horizons L.P. (the "Partnership") was organized under the
Delaware Revised Uniform Limited Partnership Act on May 11, 1993 and began
trading operations on January 4, 1994. The Partnership trades in the
international futures and forward markets under the direction of multiple
independent professional advisors ( the "Advisors") applying proprietary
strategies. The Partnership's objective is to achieve, through speculative
trading, substantial capital appreciation over time.

MLIM Alternative Strategies LLC ("MLIM AS LLC"), a wholly-owned
subsidiary of Merrill Lynch Investment Managers, LP ("MLIM") which, in turn, is
an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("Merrill
Lynch"), was the general partner of the Partnership. As of February 28, 2003 the
general partner interest and the management authority of the Partnership was
assigned from MLIM AS LLC to Merrill Lynch Investment Managers LLC ("MLIM LLC"),
a wholly-owned subsidiary of MLIM, as part of an internal Merrill Lynch
reorganization. This change did not affect the personnel involved in the
management of the Partnership. Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("MLPF&S") is the Partnership's commodity broker.

When the Partnership is offering its units of limited partnership
interest ("Units"), it receives and processes subscriptions on a continuous
basis throughout each month. Investors whose subscriptions are accepted during a
month are admitted to the Partnership as Limited Partners as of the beginning of
the immediately following month, acquiring Units at the Net Asset Value per Unit
as of the date of admission. Investors' customer securities accounts are debited
in the amount of their subscriptions on a single monthly settlement date within
approximately five business days of the issuance of the Units.

As of December 31, 2002, the capitalization of the Partnership was
$46,942,277, and the Net Asset Value per Unit, originally $100 as of January 4,
1994, had risen to $198.48.

Through December 31, 2002, the highest month-end Net Asset Value per
Unit was $203.27 (September 30, 2002) and the lowest $97.36 (February 28, 1994).

(b) FINANCIAL INFORMATION ABOUT SEGMENTS:

The Partnership's business constitutes only one segment for financial
reporting purposes, i.e., a speculative "commodity pool." The Partnership does
not engage in sales of goods or services.

(c) NARRATIVE DESCRIPTION OF BUSINESS:

GENERAL

The Partnership trades in the international futures, options on
futures and forward markets with the objective of achieving substantial capital
appreciation over time.

The Partnership's assets are allocated and reallocated by MLIM LLC to
the trading management of independent Advisors applying proprietary strategies
in numerous markets.

MLIM LLC may, from time to time, direct certain individual Advisors to
manage their Partnership accounts as if they were managing more equity than the
actual capital allocated to them.

One of the objectives of the Partnership is to provide diversification
for a limited portion of the risk segment of the Limited Partners' portfolios.
Commodity pool performance has historically demonstrated a low degree of
performance correlation with traditional stock and bond holdings. Since it began
trading, the Partnership's returns have, in fact, frequently been significantly
non-correlated with the United States stock and bond markets.

USE OF PROCEEDS AND INTEREST INCOME

1

SUBSCRIPTION PROCEEDS.

MLIM LLC pays from its own funds the selling commissions relating to
the sale of the Units. Accordingly, 100% of the proceeds of Unit sales are
received in cash by the Partnership and available for use in its speculative
trading. In such trading, the Partnership's assets are used as security for and
to pay the Partnership's trading losses, as well as any expenses and
redemptions. The primary use of the proceeds of the sale of the Units is to
permit the Advisors to trade on a speculative basis in a wide range of different
futures, forwards and options on futures markets on behalf of the Partnership.
While being used for this purpose, the Partnership's assets are also generally
available to earn interest, as more fully described below. The Partnership's
last offering of Units was through March 31, 1998, for trading effective
April 1, 1998.

MARKET SECTORS.

The Partnership trades in a diversified group of markets under the
direction of multiple independent Advisors. These Advisors can, and do, from
time to time, materially alter the allocation of their overall trading
commitments among different market sectors. There is, essentially, no
restriction on the commodity interests which may be traded by any Advisor or the
rapidity with which an Advisor may alter its market sector allocations.

MARKET TYPES.

The Partnership trades on a variety of United States and foreign
futures exchanges. Substantially all of the Partnership's off-exchange trading
takes place in the highly liquid, institutionally-based currency forward
markets.

Many of the Partnership's currency trades are executed in the spot and
forward foreign exchange markets (the "FX Markets") where there are no direct
execution costs. Instead, the participants, banks and dealers, in the FX Markets
take a "spread" between the prices at which they are prepared to buy and sell a
particular currency and such spreads are built into the pricing of the spot or
forward contracts with the Partnership. In its exchange of futures for physical
("EFP") trading, the Partnership acquires cash currency positions through banks
and dealers. The Partnership pays a spread when it exchanges these positions for
futures. This spread reflects, in part, the different settlement dates of the
cash and the futures contracts, as well as prevailing interest rates, but also
includes a pricing spread in favor of the banks and dealers, which may include a
Merrill Lynch entity.

As in the case of its market sector allocations, the Partnership's
commitments to different types of markets -- U.S. and non-U.S., regulated and
nonregulated -- differ substantially from time to time, as well as over time.

CUSTODY OF ASSETS.

All of the Partnership's assets are currently held in customer
accounts at MLPF&S.

INTEREST PAID BY MERRILL LYNCH ON THE PARTNERSHIP'S U.S. DOLLAR AND
NON-U.S. DOLLAR ASSETS

The Partnership's U.S. dollar assets are maintained at MLPF&S. On
assets held in U.S. dollars, Merrill Lynch credits the Partnership with interest
at the prevailing 91-day U.S. Treasury bill rate. The Partnership is credited
with interest on any of its assets and net gains actually held by Merrill Lynch
in non-U.S. dollar currencies at a prevailing local rate received by Merrill
Lynch. Merrill Lynch may derive certain economic benefit, in excess of the
interest which Merrill Lynch pays to the Partnership, from possession of such
assets.

Merrill Lynch charges the Partnership Merrill Lynch's cost of
financing realized and unrealized losses on the Partnership's non-U.S. dollar
denominated positions.

CHARGES

The following table summarizes the charges incurred by the Partnership
during 2002, 2001 and 2000.

2

----------------------------

The foregoing table does not reflect the bid-ask spreads paid by the
Partnership on its forward trading, or the benefits which may be derived by
Merrill Lynch from the deposit of certain of the Partnership's U.S. dollar
available assets maintained at MLPF&S.

The Partnership's average month-end Net Assets during 2002, 2001 and
2000 equaled $48,237,517, $55,652,433, and $65,365,539, respectively.

During 2002, 2001 and 2000, the Partnership earned $801,151,
$1,987,808, and $3,939,708, respectively, in interest income, or approximately
1.66%, 3.57% and 6.03%, of the Partnership's average month-end Net Assets.

3

----------------------

REGULATION

MLIM LLC, the Advisors and MLPF&S are each subject to regulation by
the Commodity Futures Trading Commission (the "CFTC") and the National Futures
Association ("NFA"). Other than in respect of its periodic reporting
requirements under the Securities Exchange Act of 1934, and the registration of
the Units for continuous public distribution under the Securities Act of 1933,
the Partnership itself is generally not subject to regulation by the Securities
and Exchange Commission. However, MLIM LLC itself is registered as an
"investment adviser" under the Investment Advisers Act of 1940.

4

(i) through (xii)-- not applicable.

(xiii) The Partnership has no employees.

(d) FINANCIAL INFORMATION ABOUT GEOGRAPHIC AREAS

The Partnership does not engage in material operations in foreign
countries, nor is a material portion of the Partnership's revenue derived from
customers in foreign countries. However, the Partnership trades, from the United
States, on a number of foreign commodity exchanges. The Partnership does not
engage in the sales of goods or services.

ITEM 2: PROPERTIES

The Partnership does not use any physical properties in the conduct of
its business.

The Partnership's administrative offices are the administrative
offices of MLIM LLC (Merrill Lynch Investment Managers LLC, 222 Broadway, 27th
Floor, New York, NY 10038-2510). MLIM LLC performs all administrative services
for the Partnership from MLIM LLC's offices.

ITEM 3: LEGAL PROCEEDINGS

Merrill Lynch -- a partner of MLIM, which is the sole member of MLIM
LLC, as well as certain of its subsidiaries and affiliates have been named as
defendants in civil actions, arbitration proceedings and claims arising out of
their respective business activities. Although the ultimate outcome of these
actions cannot be predicted at this time and the results of legal proceedings
cannot be predicted with certainty, it is the opinion of management that the
result of these matters will not be materially adverse to the business
operations or financial condition of MLIM LLC or the Partnership.

MLIM LLC itself has never been the subject of any material litigation.

ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Partnership has never submitted any matters to a vote of its
Limited Partners.

PART II

ITEM 5: MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Item 5(a)

(a) MARKET INFORMATION:

There is no established public trading market for the Units, nor will
one develop. Rather, Limited Partners may purchase or redeem Units as of the end
of each month at Net Asset Value, subject to certain early redemption charges.

(b) HOLDERS:

As of December 31, 2002, there were 1,649 holders of Units, including
MLIM LLC.

(c) DIVIDENDS:

The Partnership has made no distributions since trading commenced, nor
does MLIM LLC presently intend to make any distributions in the future.

(d) SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS:

Not applicable.

5

Item 5(b)

Not applicable.

ITEM 6: SELECTED FINANCIAL DATA

The following selected financial data has been derived from the audited
financial statements of the Partnership:

6

ML GLOBAL HORIZONS L.P.
DECEMBER 31, 2002

TYPE OF POOL: Selected-Advisor/Publicly-Offered/Non-"Principal Protected"(1)
INCEPTION OF TRADING: January 4, 1994
AGGREGATE SUBSCRIPTIONS: $174,343,595
CURRENT CAPITALIZATION: $46,942,277

WORST MONTHLY DRAWDOWN(2): (7.13)% (11/01)
WORST PEAK-TO-VALLEY DRAWDOWN(3): (11.25)% (11/01-4/02)

-------------

NET ASSET VALUE PER UNIT, DECEMBER 31, 2002: $198.48

(1) Pursuant to applicable CFTC regulations, a "Multi-Advisor"
Partnership is defined as one that allocates no more than 25% of its trading
assets to any single manager. As the Partnership currently allocates more than
25% of its trading assets to one or more Advisors, it is referred to as a
"Selected-Advisor" Partnership. Certain partnerships, including partnerships
sponsored by MLIM LLC, are structured so as to guarantee to investors that their
investment will be worth no less than a specified amount (typically, the initial
purchase price) as of a date certain after the date of investment. The CFTC
refers to such Partnerships as "principal protected." The Partnership has no
such feature.

(2) Worst Monthly Drawdown represents the largest negative Monthly
Rate of Return experienced since January 1, 1998 by the Partnership; a Drawdown
is measured on the basis of month-end Net Asset Value only, and does not reflect
intra-month figures.

(3) Worst Peak-to-Valley Drawdown represents the greatest percentage
decline since January 1, 1998 from a month-end cumulative Monthly Rate of Return
without such cumulative Monthly Rate of Return being equalled or exceeded as of
a subsequent month-end. For example, if the Monthly Rate of Return was (1)% in
each of January and February, 1% in March and (2)% in April, the Peak-to-Valley
Drawdown would still be continuing at the end of April in the amount of
approximately (3)%, whereas if the Monthly Rate of Return had been approximately
3% in March, the Peak-to-Valley Drawdown would have ended as of the end of
February at approximately the (2)% level.

(4) Monthly Rate of Return is the net performance of the Partnership
during the month of determination (including interest income and after all
expenses have been accrued or paid) divided by the total equity of the
Partnership as of the beginning of such month.

ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

OPERATIONAL OVERVIEW; ADVISOR SELECTIONS

The Partnership's results of operations depend on MLIM LLC's ability
to select Advisors and the Advisors' ability to trade profitably. MLIM LLC's
selection procedures, as well as the Advisors' trading methods, are
confidential, so that substantially the only available information relevant to
the Partnership's results of operations is its actual performance record to
date. However, because of the speculative nature of its trading, the
Partnership's past performance is not necessarily indicative of its future
results.

7

MLIM LLC's decision to terminate or reallocate assets among Advisors
is based on a combination of factors. Advisors are, in general, terminated
primarily for unsatisfactory performance, but other factors -- for example, a
change in MLIM LLC's or an Advisor's market outlook, apparent deviation from
announced risk control policies, excessive turnover of positions, changes in
principals, commitment of resources to other business activities, etc. -- may
also have a role in the termination or reallocation decision. The market
judgment and experience of MLIM LLC's principals is an important factor in its
allocation decisions.

MLIM LLC has no timetable or schedule for making Advisor changes or
reallocations, and generally makes a medium- to long-term commitment to all
Advisors selected. In particular, MLIM LLC has to date made significantly fewer
reallocations of trading assets and adjustments in the Advisor combinations for
the Partnership than in the case of many of MLIM LLC's multi-advisor funds.
However, there can be no assurance as to the frequency or number of Advisor
changes that may take place in the future, or as to how long any of the current
Advisors will continue to manage assets for the Partnership.

RESULTS OF OPERATIONS

GENERAL.

MLIM LLC believes that selected advisor futures funds should be
regarded as medium- to long-term (i.e., three to five year) investments, but it
is difficult to identify trends in the Partnership's operations and virtually
impossible to make any predictions regarding future results based on the results
to date. An investment in the Partnership may be less successful over a longer
than a shorter period.

Markets with sustained price trends 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 price trends will occur
and (iii) different Advisors are affected differently by trending markets as
well as by particular types of trends.

MLIM LLC attempts to control credit risk in the Partnership's futures,
forward and options trading by trading only through MLPF&S. MLPF&S acts solely
as a broker or counterparty to the Partnership's trades; it does not advise with
respect to, or direct, any such trading.

MLIM LLC attempts to control the market risk inherent in the
Partnership's trading by MLIM LLC's selected advisor strategy and Advisor
selections. MLIM LLC reviews the positions acquired by the Advisors on a daily
basis in an effort to determine whether the overall positions of the Partnership
may have become what MLIM LLC determines as being excessively concentrated in a
limited number of markets -- in which case MLIM LLC may, as of the next
month-end or quarter-end, adjust the Partnership's Advisor combination and/or
allocations so as to attempt to reduce the risk of such over-concentration
occurring in the future.

MLIM LLC may consider making distributions to investors under certain
circumstances (for example, if substantial profits are recognized); however,
MLIM AS LLC has not done so to date and MLIM LLC does not presently intend to do
so.

8

PERFORMANCE SUMMARY

2002

The Partnership's overall trading performance was profitable with
gains in interest rates and currency sectors contributing the most profits.

Results from the interest rate sector provided solid positive
performance for the Partnership. Most profits were returned in the third quarter
and the month of December. The yield curve on major debt instruments declined
throughout the third quarter. This market environment was supported by the
increased risk aversion, the continued U.S. stock market decline and the
conflicting reports regarding the pace of the U.S. economic recovery. The
economic news from Europe also pointed to a weak recovery overseas. During
December, trading strategies capitalized on the lowered interest rates by the
European Central Bank, causing the Euribor rates to trend higher.

Profits resulting from trading in the currency sector provided the
Partnership with gains in the second quarter and December, which outweighed
losses sustained during other periods in the year. The decline in the U.S.
dollar during the first half of the year continued through June unabated, fueled
by the decline in the U.S. equity markets. The trading strategies were able to
capitalize on the declining U.S. dollar in December and weather the volatility
of the currency market during the last two weeks of the year.

The trading in stock indices found profits from its short positions
during the second and third quarters of the year offsetting losses in the first
and last quarter. The strength of U.S. economic data continued to surprise on
the upside, pointing toward a stronger recovery than expected, but the equity
markets remained weak. The downward trending market created a good environment
for the trend following traders, as investors in the equity markets were still
liquidating equity exposure during the third quarter.

The metals sector brought slight gains to the Partnership due to a
settlement payment in August relating to certain copper trades made by a number
of investors, including the Partnership, during a period in the mid-1990s.
Members of the class were those who purchased or sold Comex copper futures or
options contracts between June 24, 1993 and June 15, 1996. The effect of the
settlement payment was included in the Partnership's performance in August.

Agricultural commodities brought in trading losses for the year. A
slight second and third quarter run up was unable to offset the losses sustained
in the fourth quarter, especially in December. The beginning of the year brought
uncertainty in the global market place creating a difficult trading environment.
The continued weakness in the U.S. dollar and low stockpiles in grains and
soybeans aided in sustaining a price rally in the summer months. Grains and
soybeans rallied due to weather and supply concerns. The summer drought produced
expectations of a reduced harvest. The sector returned some gains later in
September, as harvests were not as bad as was feared. In December, soybeans had
a large sell-off, which had a large impact on the soybean oil spread trade being
held by the Partnership.

The energy sector brought in the most losses for the year. Recoveries
being made in August and September were completely reversed and worsened in
October and November. Crude oil led the gains in August and September as
continued talk of military action against Iraq built a risk premium into prices.
In October, crude oil reversed sharply as fears over a war with Iraq subsided
and reversed its long trend going from $31 a barrel to $27 during the month. In
November, news of the Iraqi acceptance of the UN resolution for arms inspections
was expected to further drive prices down but unexpectedly failed to do so,
resulting in continued losses in the portfolio of short crude positions.

9

2001

The Partnership's overall trading strategy was profitable. Gains
realized in the interest rates and stock indices sectors more than offset other
losses.

Trading in the interest rates markets was the most profitable strategy
for the Partnership. Eurodollar futures contracts rose dramatically early in the
year as the U. S. economy weakened and the Federal Reserve cut interest rates.
The announcement by the U.S. Treasury in October to cease issuing 30 year debt,
coupled with worldwide governments easing of monetary policy, benefited long
positions across the global yield curve. The global fixed income market rally
fizzled in November, returning to pre-September 11 levels.

Stock index trading was also profitable. Short positions in the S&P
500 and Nikkei 225 indices produced gains early in the year. Various short
positions also were successful as major indices in the world markets fell as
corporate earnings were poor and the global economic slump could worsen as a
result of the September 11 attacks. By year end, positive reports on the U.S.
economy and growing optimism for a brighter 2002 caused stock markets to rally.

Losses were realized in the energy markets. Natural gas prices pulled
back in January on low inventories and stagnant production. The sector as a
whole faced downside pressure from the slowing global economy and OPEC's
decision to leave production levels unchanged. Oil prices sank as traders feared
the September 11 attacks would cripple the airline industry. By year-end, OPEC
and non-OPEC countries agreed to limit production, causing a sharp reversal in
the year long downward trend, resulting in losses in short positions.

Metals trading resulted in losses for the Partnership. Demand
restraints and a lack of momentum were the overall theme for the year. Weakness
in the Euro, a decline in the Australian dollar to an all time low and producer
and central bank selling sent gold prices lower. Long gold positions were
profitable as investors flocked to safety following the terrorists attacks.

Trading in the agricultural commodities sector was unprofitable. Gains
were realized early in the year on short cotton positions as the market sank to
a 15-year low on poor demand and a possible planting increase. Grain prices rose
in July on concerns that hot and dry weather would cause lower 2001 production.
Cattle fell to a one year low on demand concerns.

Currency trading was unprofitable. The Euro fell from a high near 96
cents in the first quarter back to the 90 cent level, causing losses in long
positions. The weakening of the Euro and Japanese yen displayed how the world
economy was not immune to the economic slowdown of the U.S. Post September 11
trading had long Swiss franc positions appreciating versus the U.S. dollars as
investors were attracted to Switzerland's neutral status.

10

2000

The Partnership's overall trading strategy was profitable in 2000.
Trading in the currency, interest rates, energy and agricultural markets was
successful, while losses were realized in the stock indices and metal markets.
The majority of the Partnership's profits were realized in November and
December.

Currency trading started slowly but was profitable by year-end. The
Euro declined against the U.S. dollar after officials from the Group of Seven
met and failed to express concern about its low levels. Other factors for its
decline include the slow pace of microeconomic reform in Europe, plans for a
European withholding tax and the scale of direct investment flows outside of
Europe. In the second quarter, currencies suffered overall when the yen
appreciated against the U.S. dollar due to speculation that the Japanese
government was considering a stimulus package after the G8 summit in July. In
September, short yen positions were profitable as the yen weakened against the
U.S. dollar in anticipation that the U.S. Federal Reserve would continue to
increase interest rates. The Euro fell to a record low despite stronger than
expected European data and the success of the German tax reform package. Short
positions in the Canadian dollar were profitable despite weakening U.S. dollar
fundamentals, a large Canadian budget surplus and plans for tax cuts in Canada.
Euro and yen trading was profitable in December.

Trading in the interest rate markets was successful despite volatile
market conditions. Short Eurodollar trading was profitable as European Union
ministers blamed its slide in January on rapid U.S. growth and fears the Federal
Reserve would continue to raise interest rates. Losses were realized in the
Japanese ten-year bond, U.S. ten-year Treasury note and long U.S. Treasury
positions as the yield curve fluctuated widely during the first quarter. U.S.
bond yields fell in the second quarter as investors shifted to Treasuries due to
increased volatility in the NASDAQ and other equity markets. U.S. bonds were
unprofitable when bonds rallied during June after a higher than expected
unemployment report and a lack of interest rate action by the Federal Reserve.
Losses were incurred in the third quarter on Japanese ten-year bond positions.
In November and December, trading was profitable as uncertainty surrounding the
U.S. Presidential election caused investors to favor bond markets over equities.

Energy trading was successful for the year. Long crude oil and
unleaded gas positions realized gains early in the year despite the possibility
of OPEC increasing crude oil production. Such a hike would still leave oil
inventories at levels much below normal. Prices continued to rise in the second
quarter as the International Energy Agency reported the need for additional oil
to prevent an inventory shortage. By August, long light crude oil positions
profited as the oil balance faced a significant inventory deficit, shrinking
production capacity, limited prospects of non-OPEC supply growth and OPEC's key
countries's desire for a higher average price. Fears of supply shortages pushed
prices higher as December saw colder temperatures than last year.

Agriculture commodity trading resulted in modest gains for the year.
Losses were realized in the first quarter on short corn positions due to dry
conditions in Argentina, pushing corn prices higher. Long sugar positions were
profitable mid year on a report from Brazil stating unfavorable weather
conditions will lead to a significant drop in 2000/2001 sugar production.
Agricultural trading resulted in gains in November as imbalance in supply versus
demand has caused weakness in the markets.

Metals trading alternated from profitable to unprofitable during the
year. Base metal prices rose early on as concerns over higher interest rates and
the decline in global equity prices created defensive tones in the markets. Gold
prices ended the second quarter higher in reaction to the Federal Reserve
leaving interest rates unchanged and a report that the South African Reserve
Bank received a $500 million gold denominated loan. Long copper positions
profited from reports from China on increased production. Gold prices rose on
October 12 as result of heightened tensions between Israel and Palestine, a
surge in crude oil prices and a plunge in global equities. However, within three
days, prices fell below pre-rally levels.

11

Trading in the stock index markets was the most unprofitable strategy
for the Partnership. Volatile market conditions led to unprofitable positions in
the S&P 500 and the FTSE - Financial Times index early in the year. Signs of
rising inflation led to losses in Nikkei 225 and S&P 500 positions on concerns
the Federal Reserve will continue to raise interest rates aggressively to slow
the robust economy. The S&P 500 finished September lower as buyers retreated due
to fears of an economic slowdown. The year closed with losses from DAX German
Stock Index and Hang Seng trading.

VARIABLES AFFECTING PERFORMANCE

The principal variables which determine the net performance of the
Partnership are gross profitability and interest income.

During all periods set forth under "Selected Financial Data," the
interest rates in many countries were at unusually low levels. The low interest
rates in the United States (although higher than in many other countries)
negatively impacted revenues because interest income is typically a major
component of the Partnership's profitability. In addition, low interest rates
are frequently associated with reduced fixed income market volatility, and in
static markets the Partnership's profit potential generally tends to be
diminished. On the other hand, during periods of higher interest rates, the
relative attractiveness of a high risk investment such as the Partnership may be
reduced as compared to high yielding and much lower risk fixed income
investments.

The Partnership's Brokerage Commissions and Administrative Fees are a
constant percentage of the Partnership's assets allocated to trading. The only
Partnership costs (other than the insignificant currency trading costs) which
are not based on a percentage of the Partnership's assets (allocated to trading
or total) are the Profit Shares payable to the Advisors on an Advisor-by-Advisor
basis and the Incentive Override. Gross profitability is in turn affected by the
percentages of the Partnership's assets allocated to trading. During periods
when Profit Shares are a high percentage of net trading gains, it is likely that
there has been substantial performance non-correlation among the Advisors (so
that the total Profit Shares paid to those Advisors which have traded profitably
are a high percentage, or perhaps even in excess, of the total profits
recognized, as other Advisors have incurred offsetting losses, reducing overall
trading gains but not the Profit Shares paid to the successful Advisors) --
suggesting the likelihood of generally trendless, non-consensus markets.

Unlike many investment fields, there is no meaningful distinction in
the operation of the Partnership between realized and unrealized profits. Most
of the contracts traded by the Partnership are highly liquid and can be closed
out at any time.

Except in unusual circumstances, factors (e.g. regulatory approvals,
cost of goods sold, employee relations and the like) which often materially
affect an operating business have virtually no impact on the Partnership.

LIQUIDITY; CAPITAL RESOURCES

The Partnership borrows only to a limited extent and only on a
strictly short-term basis in order to finance losses on a non-U.S. dollar
denominated trading positions pending the conversion of the Partnership's U.S.
dollar deposits. These borrowings are at a prevailing short-term rate in the
relevant currency. They have been immaterial to the Partnership's operation to
date and are expected to continue to be so.

All of the Partnership's assets are held in cash except for the net
unrealized profit on open positions. The Net Asset Value of the Partnership's
cash is not affected by inflation. However, changes in interest rates could
cause periods of strong up or down price trends, during which the Partnership's
profit potential generally increases. Inflation in commodity prices could also
generate price movements which the strategies might successfully follow.

Except in very unusual circumstances, the Partnership should be able
to close out any or all of its open trading positions and liquidate any or all
of its securities holdings quickly and at market prices. This permits an Advisor
to limit losses as well as reduce market exposure on short notice should its
strategies indicate doing so. In addition, because there is a readily available
market value for the Partnership's positions and assets, the Partnership's
monthly Net Asset Value calculations are precise, and investors need only wait
ten business days to receive the full redemption proceeds of their Units.

ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

12

INTRODUCTION

PAST PERFORMANCE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

The Partnership is a speculative commodity pool. Unlike an operating
company, the risk of market sensitive instruments traded by it is integral, not
incidental, to the Partnership's main line of business.

Market movements result in frequent changes in the fair market value
of the Partnership's open positions and, consequently, in its earnings and cash
flows. The Partnership's market risk is influenced by a wide variety of factors,
including the level and volatility of interest rates, exchange rates, equity
price levels, the market value of financial instruments and contracts, the
diversification effects among the Partnership's open positions and the liquidity
of the markets in which it trades.

The Partnership, under the direction of its Advisors, rapidly acquires
and liquidates both long and short positions in a wide range of different
markets. Consequently, it is not possible to predict how a possible future
market scenario will affect performance, and the Partnership's past performance
is not necessarily indicative of its future results.

Value at Risk is a measure of the maximum amount which the Partnership
could reasonably be expected to lose in a given market sector. However, the
inherent uncertainty of the Partnership's speculative trading and the recurrence
in the markets traded by the Partnership of market movements far exceeding
expectations could result in actual trading or non-trading losses far beyond the
indicated Value at Risk or the Partnership's experience to date (i.e., "risk of
ruin"). In light of the foregoing, as well as the risks and uncertainties
intrinsic to all future projections, the inclusion of the quantification in this
section should not be considered to constitute any assurance or representations
that the Partnership's losses in any market sector will be limited to Value at
Risk or by the Partnership's attempt to manage market risk.

QUANTIFYING THE PARTNERSHIP'S TRADING VALUE AT RISK

QUANTITATIVE FORWARD-LOOKING STATEMENTS

The following quantitative disclosures regarding the Partnership's
market risk exposures contain "forward-looking statements" within the meaning of
the safe harbor from civil liability provided for such statements by the Private
Securities Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
All quantitative disclosures in this section are deemed to be forward-looking
statements for purposes of the safe harbor, except for statements of historical
fact.

The Partnership's risk exposure in the various market sectors traded
by the Advisors is quantified below in terms of Value at Risk. Due to the
Partnership's mark-to-market accounting, any loss in the fair value of the
Partnership's open positions is directly reflected in the Partnership's earnings
(realized or unrealized) and cash flows (at least in the case of exchange-traded
contracts in which profits and losses on open positions are settled daily
through variation margin).

Exchange maintenance margin requirements have been used by the
Partnership as the measure of its Value at Risk. Maintenance margin requirements
are set by exchanges to equal or exceed the maximum loss in the fair value of
any given contract incurred in 95% - 99% of the one-day time periods included in
the historical sample (generally approximately one year) researched for purposes
of establishing margin levels. Maintenance margin levels are established by
dealers and exchanges using historical price studies, as well as an assessment
of current market volatility and economic fundamentals to provide a
probabilistic estimate of the maximum expected near-term one-day price
fluctuation.

In the case of market sensitive instruments which are not
exchange-traded (almost exclusively currencies in the case of the Partnership),
the margin requirements for the equivalent futures positions have been used as
Value at Risk. In those rare cases in which a futures-equivalent margin is not
available, dealers' margins have been used.

The fair value of the Partnership's futures and forward positions does
not have any optionality component. However, certain of the Advisors trade
commodity options. The Value at Risk associated with options is reflected in the
following table as the margin requirement attributable to the instrument
underlying each option.

13

100% positive correlation in the different positions held in each
market risk category has been assumed. Consequently, the margin requirements
applicable to the open contracts have been aggregated to determine each trading
category's aggregate Value at Risk. The diversification effects resulting from
the fact that the Partnership's positions are rarely, if ever, 100% positively
correlated have not been reflected.

THE PARTNERSHIP'S TRADING VALUE AT RISK IN DIFFERENT MARKET SECTORS

The following table indicates the average, highest and lowest trading
Value at Risk associated with the Partnership's open positions by market
category for the fiscal years 2002 and 2001. During the fiscal year 2002, the
Partnership's average capitalization was approximately $48,237,517. During the
fiscal year 2001, the Partnership's average capitalization was approximately
$55,652,433.

Average, highest and lowest Value at Risk amounts relate to the quarter-end
amounts for each calendar quarter-end during the fiscal year. Average
Capitalization is the average of the Partnership's capitalization at the end of
each calendar quarter of fiscal years 2002 and 2001.

MATERIAL LIMITATIONS ON VALUE AT RISK AS AN ASSESSMENT OF MARKET RISK

The face value of the market sector instruments held by the
Partnership is typically many times the applicable maintenance margin
requirement (maintenance margin requirements generally ranging between
approximately 1% and 10% of contract face value) as well as many times the
capitalization of the Partnership. The magnitude of the Partnership's open
positions creates a "risk of ruin" not typically found in most other investment
vehicles. Because of the size of its positions, certain market conditions
unusual, but historically recurring from time to time could cause the
Partnership to incur severe losses over a short period of time. The foregoing
Value at Risk table as well as the past performance of the Partnership gives no
indication of this "risk of ruin."

NON-TRADING RISK

14

FOREIGN CURRENCY BALANCES; CASH ON DEPOSIT WITH MLPF&S

The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. However, these balances (as well as the market
risk they represent) are immaterial.

The Partnership also has non-trading market risk on the approximately
90%-95% of its assets which are held in cash at MLPF&S. The value of this cash
is not interest rate sensitive, but there is cash flow risk in that if interest
rates decline so will the cash flow generated on these monies. This cash flow
risk is immaterial.

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES

The following qualitative disclosures regarding the Partnership's
market risk exposures except for (i) those disclosures that are statements of
historical fact and (ii) the descriptions of how the Partnership manages its
primary market risk exposure constitute forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. The Partnership's primary market risk exposures as well as the
strategies used by MLIM AS LLC and to be used by MLIM LLC and the Advisors for
managing such exposures are subject to numerous uncertainties, contingencies and
risks, any one of which could cause the actual results of the Partnership's risk
controls to differ materially from the objectives of such strategies. Government
interventions, defaults and expropriations, illiquid markets, the emergence of
dominant fundamental factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased regulation and
many other factors could result in material losses as well as in material
changes to the risk exposures and the risk management strategies of the
Partnership. There can be no assurance that the Partnership's current market
exposure and/or risk management strategies will not change materially or that
any such strategies will be effective in either the short- or long-term.
Investors must be prepared to lose all or substantially all of their investment
in the Partnership.

The following were the primary trading risk exposures of the
Partnership as of December 31, 2002, by market sector.

INTEREST RATES.

Interest rate risk is the principal market exposure of the
Partnership. Interest rate movements directly affect the price of derivative
sovereign bond positions held by the Partnership and indirectly the value of its
stock index and currency positions. Interest rate movements in one country as
well as relative interest rate movements between countries materially impact the
Partnership's profitability. The Partnership's primary interest rate exposure is
to interest rate fluctuations in the United States and the other G-7 countries.
However, the Partnership also takes positions in the government debt of smaller
nations e.g., New Zealand and Australia. MLIM LLC anticipates that G-7 interest
rates will remain the primary market exposure of the Partnership for the
foreseeable future.

CURRENCIES.

The Partnership trades in a large number of currencies. However, the
Partnership's major exposures have typically been in the U.S.dollar/yen, U.S.
dollar/Euro and U.S. dollar/pound positions. MLIM LLC does not anticipate that
the risk profile of the Partnership's currency sector will change significantly
in the future. The currency trading Value at Risk figure includes foreign margin
amounts converted into U.S. dollars with an incremental adjustment to reflect
the exchange rate risk of maintaining Value at Risk in a functional currency
other than U.S. dollars.

STOCK INDICES.

The Partnership's primary equity exposure is to G-7 equity index price
movements. As of December 31, 2002 the Partnership's primary exposures were in
the stock indices from Southeast Asian countries. The Partnership is primarily
exposed to the risk of adverse price trends or static markets in the major U.S.,
European and Asian indices.

METALS.

The Partnership's primary metals market exposure is to fluctuations in
the price of gold and silver. Although certain of the Advisors will from time to
time trade base metals such as aluminum, nickel, copper and tin, the principal
market exposures of the Partnership have consistently been in the precious
metals, gold and silver (and, to an extent, platinum). MLIM LLC anticipates that
gold and silver will remain the primary metals market exposure for the
Partnership.

AGRICULTURAL COMMODITES.

15

The Partnership's primary agricultural commodities exposure is to
agricultural price movements which are often directly affected by severe or
unexpected weather conditions. Soybeans, grains, livestock and sugar accounted
for the substantial bulk of the Partnership's commodities exposure as of
December 31, 2002. In the past, the Partnership has had material market exposure
to orange juice and cotton and may do so again in the future. However, MLIM LLC
anticipates that the Advisors will maintain an emphasis on soybeans, grains and
sugar, in which the Partnership has historically taken its largest positions.

ENERGY.

The Partnership's primary energy market exposure is to natural gas and
oil price movements, often resulting from political developments in the Middle
East. Oil prices can be volatile and substantial profits and losses have been
and are expected to continue to be experienced in this market.

QUALITATIVE DISCLOSURES REGARDING NON-TRADING RISK EXPOSURE

The following were the only non-trading risk exposures of the
Partnership as of December 31, 2002.

FOREIGN CURRENCY BALANCES.

The Partnership's primary foreign currency balances are in Japanese
yen, British pounds and Euro. The Partnership has minimal exchange rate exposure
on these balances.

U.S. DOLLAR BALANCES.

The Partnership holds its U.S. dollars in cash at MLPF&S. The
Partnership has immaterial cash-flow and interest-rate risk on its cash on
deposit with MLPF&S in that declining interest rates would cause the income from
such cash to decline.

QUALITATIVE DISCLOSURES REGARDING MEANS OF MANAGING RISK EXPOSURE

TRADING RISK

MLIM LLC has procedures in place intended to control market risk
exposure, 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, and reviewing
outstanding positions for over-concentrations both on an Advisor-by-Advisor and
on an overall Partnership basis. While MLIM LLC does not itself intervene in the
markets to hedge or diversify the Partnership's market exposure, MLIM LLC 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.

At the Advisor level, each Advisor applies its own risk management
policies to its trading. These policies generally limit the total exposure that
may be taken per "risk unit" of assets under management. In addition, many
Advisors follow diversification guidelines (often formulated in terms of the
maximum margin which they will commit to positions in any one contract or group
of related contracts), as well as imposing "stop-loss" points at which open
positions must be closed out. Occasionally, Advisors will limit the market
exposure of their Partnership account through acquiring put or call options
which "collar" the risk of open positions. However, because of the typically
high degree of liquidity in the markets traded by the Partnership and the
expense of acquiring options, most Advisors rely simply on stop-loss policies,
requiring the liquidation of positions once losses of a certain magnitude have
been incurred.

Certain Advisors treat their risk control policies as strict rules;
others only as general guidelines for controlling risk.

NON-TRADING RISK

The Partnership controls the non-trading exchange rate risk of its
foreign currency balances by regularly converting these balances back into U.S.
dollars on a weekly basis.

The Partnership has cash flow interest rate risk on its cash on
deposit with MLPF&S in that declining interest rates would cause the income from
such cash to decline. However, a certain amount of cash or cash equivalents must
be held by the Partnership in order to facilitate margin payments and pay
expenses and redemptions. MLIM LLC does not take any steps to limit the cash
flow risk on its cash held on deposit at MLPF&S.

16

ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Selected Quarterly Financial Data
ML Global Horizons LP

Net Income by Quarter
Eight Quarters through December 31, 2002

The financial statements required by this Item are included in Exhibit
13.01.

The supplementary financial information ("information about oil and
gas producing activities") specified by Item 302 of Regulation S-K is not
applicable. MLIM AS LLC promoted the Partnership and MLIM LLC is now its
controlling person.

ITEM 9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

There were no changes in or disagreements with independent auditors on
accounting or financial disclosure.

PART III

ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

10(a) and 10(b) IDENTIFICATION OF DIRECTORS AND EXECUTIVE OFFICERS:

As a limited partnership, the Partnership itself has no officers or
directors and is managed by MLIM LLC. Trading decisions are made by the Advisors
on behalf of the Partnership. MLIM AS LLC promoted the Partnership and MLIM LLC
is now its controlling person.

17

The managers and executive officers of MLIM LLC and their respective
business backgrounds are as follows.

FABIO P. SAVOLDELLI Executive Vice President, Chief Investment Officer, and
Managing Director - Alternative Strategies Division

JAMES KASE President

PHILIP L. KIRSTEIN General Counsel

PATRICK HAYWARD Chief Financial Officer

VINAY MENDIRATTA Vice President and Chief Operations Officer - Alternative
Strategies Division

Fabio P. Savoldelli was born in 1961. Mr. Savoldelli is Executive
Vice President, Chief Investment Officer, and Managing Director - Alternative
Strategies Division of MLIM LLC. He oversees the Partnership's investments.
Mr. Savoldelli served as Managing Director for Merrill Lynch Corporate and
Institutional Client Group from 1996 to 1999. Prior to joining Merrill Lynch
he served as Chief Investment Officer for the Americas at the Chase Manhattan
Private Bank, responsible for managers investing assets in international and
domestic institutional, private client and ERISA Partnerships. Previously, he
was Deputy Chief Investment Officer and Head of Fixed Income and Foreign
Exchange at Swiss Bank Corp. London Portfolio Management International. Mr.
Savoldelli was educated at the University of Windsor, Canada, and the London
School of Economics.

James Kase was born in 1960. Mr. Kase is President of MLIM LLC and
Managing Director & Head of Distribution of Merrill Lynch Investment Managers
L.P. His previous position at Merrill Lynch was selling quantitative-based
equity products to institutional investors for 17 years. Prior to joining
Merrill Lynch, he was Head of Equity Sales and Research for Lehman Brothers,
Asia. He also managed equity derivative sales in the Americas for Lehman from
1995-1998. From 1986-1993, Mr. Kase was in Capital Market Sales at Bankers
Trust. He received his Bachelor of Arts in Political Science from Brown
University

Philip L. Kirstein was born in 1945. Mr. Kirstein has served
as General Council of MLIM LLC since August 2001. He also serves as General
Counsel of MLIM and Fund Asset Management, a position he has held since 1984. He
received his Bachelor of Science from the University of North Carolina, He
received his Juris Doctor from the Syracuse University School of Law and his LLB
from the New York University School of Law.

Patrick Hayward was born in 1967. He has served as Chief Financial
Officer for MLIM Americas Institutional and MLIM LLC since June 2002. Mr.
Hayward previously served as Vice President and Divisional Financial Officer for
Societe Generale. He received his Bachelor of Arts from College of William &
Mary.

Vinay Mendiratta was born in 1967. Mr. Mendiratta is Managing Director
& Chief Operating Officer for Alternative Strategies Division of MLIM LLC. He is
responsible for the management of MLIM's Hedge Fund of Funds business. Most
recently he was MLIM's Alternative Investments product specialist based in
London responsible for the marketing hedge fund products to clients in Europe
and the Middle East. Prior to joining MLIM, Mr. Mendiratta was a product
specialist for Bankers Trust's quantitaive investment team. He worked with
the portfolio management team to structure and market a variety of
quantitatively managed investment products to institutional and retail
investors. Mr. Mendiratta obtained his Bachelor of Arts in Economics from
Duke University and his MBA in Finance from Columbia University.

As of December 31, 2002, MLIM AS LLC's general partner interest in the
Partnership was valued at approximately $499,969.

As of February 28, 2003 MLIM LLC acts as general partner to three
public futures Partnerships whose units of limited partnership interest are
registered under the Securities Exchange Act of 1934: ML Futures Investments
L.P., ML Principal Protection L.P., and the Partnership. Because MLIM LLC serves
as the sole general partner of each of these funds, the officers and managers of
MLIM LLC effectively manage them as officers and directors of such funds.

(c) IDENTIFICATION OF CERTAIN SIGNIFICANT EMPLOYEES:

None.

18

(d) FAMILY RELATIONSHIPS:

None.

(e) BUSINESS EXPERIENCE:

See Items 10 (a) and 10(b) above.

(f) INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS:

None.

(g) PROMOTERS AND CONTROL PERSONS:

Not applicable.

ITEM 11: EXECUTIVE COMPENSATION

The managers and officers of MLIM LLC are remunerated by MLIM LLC in
their respective positions. The Partnership does not itself have any officers,
managers or employees. The Partnership pays Brokerage Commissions to an
affiliate of MLIM LLC and Incentive Overrides and Administrative Fees to MLIM
LLC. MLIM LLC or its affiliates may also receive certain economic benefits from
the possession of the Partnership's U.S. dollar assets in offset accounts, as
described in Item 1(c) above. The managers and officers receive no "other
compensation" from the Partnership, and the managers receive no compensation for
serving as managers of MLIM LLC. There are no compensation plans or arrangements
relating to a change in control of either the Partnership or MLIM LLC.

ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDERS MATTERS

(a) SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS:

As of December 31, 2002, no person or "group" is known to be or have
been the beneficial owner of more than 5% of the Units.

As of December 31, 2002, MLIM AS LLC owned 2,519 Units
(unit-equivalent general partnership interests), which was approximately 1.07%
of the total Units outstanding. Such amounts have now been assigned to MLIM LLC.

(c) CHANGES IN CONTROL:

None.

ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

(a) TRANSACTIONS BETWEEN MERRILL LYNCH AND THE PARTNERSHIP

All of the service providers to the Partnership, other than the
Advisors, are affiliates of Merrill Lynch. Merrill Lynch negotiated with the
Advisors over the level of its advisory fees and Profit Shares. However, none of
the fees paid by the Partnership to any Merrill Lynch party were negotiated, and
they are higher than would have been obtained in arm's-length bargaining.

The Partnership pays indirectly Merrill Lynch through MLPF&S and MLIM
LLC substantial Brokerage Commissions and Administrative Fees, respectively, as
well as bid-ask spreads on forward currency trades. The Partnership also pays
MLPF&S interest on short-term loans extended by MLPF&S to cover losses on
foreign currency positions.

Within the Merrill Lynch organization, MLIM LLC is the direct
beneficiary of the revenues received by different Merrill Lynch entities from
the Partnership. MLIM LLC controls the management of the Partnership and serves
as its promoter. Although, neither MLIM AS LLC nor MLIM LLC has sold any assets,
directly or indirectly, to the

19

Partnership, MLIM AS LLC had made and MLIM LLC may make substantial profits from
the Partnership due to the foregoing revenues.

No loans have been, are or will be outstanding between MLIM LLC or any
of its principals and the Partnership.

MLIM AS LLC paid and MLIM LLC may pay substantial selling commissions
and trailing commissions to MLPF&S for distributing the Units. MLIM AS LLC and
MLIM LLC are ultimately paid back for these expenditures from the revenues it
receives from the Partnership.

(b) CERTAIN BUSINESS RELATIONSHIPS:

MLPF&S, an affiliate of MLIM AS LLC and MLIM LLC, acts as the
principal commodity broker for the Partnership.

In 2002, the Partnership expensed: (i) Brokerage Commissions of
$3,571,969, which included $651,114 in consulting fees earned by the Advisors;
and (ii) Administrative Fees of $123,171 to MLIM LLC. In addition, MLIM AS LLC
and MLIM LLC and its affiliates may have derived certain economic benefits from
possession of the Partnership's assets, as well as from foreign exchange and EFP
trading.

See Item 1(c), "Narrative Description of Business -- Charges" and
"-- Description of Current Charges" for a discussion of other business dealings
between MLIM LLC affiliates and the Partnership.

The fact that MLIM LLC receives incentive compensation from the
Partnership (which is an unusual fee arrangement for MLIM LLC) could cause MLIM
LLC to manage the Partnership in a more speculative and "risky" fashion than
MLIM LLC otherwise would.

(c) INDEBTEDNESS OF MANAGEMENT:

The Partnership is prohibited from making any loans, to management or
otherwise.

(d) TRANSACTIONS WITH PROMOTERS:

Not applicable.

ITEM 14: CONTROLS AND PROCEDURES

Merrill Lynch Investment Managers LLC, the General Partner of ML
Global Horizons L.P., with the participation of the General Partner's Chief
Executive Officer and the Chief Financial Officer, has evaluated the
effectiveness of the design and operation of its disclosure controls and
procedures with respect to the Partnership within 90 days of the filing date of
this annual report, and, based on their evaluation, have concluded that these
disclosure controls and procedures are effective. Additionally, there were no
significant changes in the Partnership's internal controls or in other factors
that could significantly affect these controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

20

PART IV

ITEM 15: EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)28(d). FINANCIAL STATEMENT SCHEDULES:

Financial statement schedules not included in this Form 10-K have been
omitted for the reason that they are not required or are not applicable or that
equivalent information has been included in the financial statements or notes
thereto.

(a)3. EXHIBITS:

The following exhibits are incorporated by reference or are filed
herewith to this Annual Report on Form 10-K:

(b) REPORT ON FORM 8-K:

No reports on Form 8-K were filed during the fourth quarter of 2002.

22

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

ML GLOBAL HORIZONS L.P.

By: MERRILL LYNCH INVESTMENT MANAGERS LLC
General Partner

By:/s/Fabio P. Savoldelli
-------------------------
Fabio P. Savoldelli
Executive Vice President, Chief
Investment Officer, and Managing Director
- Alternative Strategies Division
(Principal Executive Officer)

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, this report has been signed on March 31, 2003 by the
following persons on behalf of the Registrant and in the capacities indicated.

By: /s/ Fabio P. Savoldelli
-------------------------
Fabio P. Savoldelli

23

EXHIBIT 99

FORM OF CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63
OF TITLE 180 OF THE UNITED STATES CODE

I, Fabio P. Savoldelli, certify that:

1. I have reviewed this annual report on Form 10-K of ML Global Horizons L.P.;

2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this annual report is being
prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and

c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of managers (or persons performing the equivalent function):

a) all significant deficiencies, in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and

6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date: March 31, 2003

- -----------------------
By /s/ FABIO P. SAVOLDELLI
-----------------------
Fabio P. Savoldelli
Executive Vice President, Chief
Investment Officer, and Managing Director
- - Alternative Strategies Division
(Principal Executive Officer)

24

EXHIBIT 99 (a)

AS ADOPTED TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this annual report of ML Global Horizons L.P. on Form 10-K
for the period ended December 31, 2002 as filed with the Securities and
Exchange Commission on the date hereof, I, Fabio P. Savoldelli, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant of the Sarbanes-Oxley
Act of 2002, that:

1. This annual report fully complies with the requirements of Section 13 or
15(d) of the Securities and Exchange Act of 1934; and

2. The information contained in this annual report fairly presents, in all
material respects, the financial condition and results of operations of ML
Global Horizons L.P.

Date: March 31, 2003

- -----------------------
By /s/ FABIO P. SAVOLDELLI
-----------------------
Fabio P. Savoldelli
Executive Vice President, Chief
Investment Officer, and Managing Director
- - Alternative Strategies Division
(Principal Executive Officer)

25

EXHIBIT 99

FORM OF CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63
OF TITLE 180 OF THE UNITED STATES CODE

I, Patrick Hayward, certify that:

1. I have reviewed this annual report on Form 10-K of ML Global Horizons L.P.;

2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this annual report is being
prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and

c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of managers (or persons performing the equivalent function):

a) all significant deficiencies, in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and

6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date: March 31, 2003

- -----------------------
By /s/ PATRICK HAYWARD
-------------------
Patrick Hayward
Chief Financial Officer
(Principal Financial and Accounting Officer)

26

EXHIBIT 99 (a)

AS ADOPTED TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this annual report of ML Global Horizons L.P. on Form 10-K
for the period ended December 31, 2002 as filed with the Securities and
Exchange Commission on the date hereof, I, Patrick Hayward, certify, pursuant
to 18 U.S.C. Section 1350, as adopted pursuant of the Sarbanes-Oxley Act of
2002, that:

1. This annual report fully complies with the requirements of Section 13 or
15(d) of the Securities and Exchange Act of 1934; and

2. The information contained in this annual report fairly presents, in all
material respects, the financial condition and results of operations of ML
Global Horizons L.P.

Date: March 31, 2003

- -----------------------
By /s/ PATRICK HAYWARD
-------------------
Patrick Hayward
Chief Financial Officer
(Principal Financial and Accounting Officer)

27

ML GLOBAL HORIZONS L.P.

2002 FORM 10-K

INDEX TO EXHIBITS