Aspect FuturesAccess 10-Q 2006 Q2 Quarterly report

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, 2006

OR

o 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 0-51085

ML ASPECT FUTURESACCESS LLC
(Exact Name of Registrant as
specified in its charter)

Delaware	20-1227650
(State or other jurisdiction of	(IRS Employer Identification No.)
incorporation or organization)

c/o Merrill Lynch Alternative Investments LLC
Princeton Corporate Campus
800 Scudders Mill Road - Section 2G
Plainsboro, New Jersey 08536

(Address of principal executive offices)

(Zip Code)

609-282-6996

(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 o

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes o   No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes o   No x

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 o

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 II of this Form 10-Q or any amendment to this Form 10-Q. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o      Accelerated filer o      Non-accelerated filer x     

Indicate by check mark if the registrant is a shell company (as defined by Rule 12b-2 of the Act).

Yes o   No x

ML ASPECT FUTURESACCESS LLC

QUARTERLY REPORT FOR JUNE 30, 2006 ON FORM 10-Q

Table of Contents

		PAGE
	PART I
Item 1.	Financial Statements	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4.	Controls and Procedures	12
	PART II
Item 1.	Legal Proceedings	13
Item 2.	Changes in Securities and Use of Proceeds	13
Item 3.	Defaults Upon Senior Securities	13
Item 4.	Submission of Matters to a Vote of Security Holders	13
Item 5.	Other Information	13
Item 5a.	Recent Sales of Unregistered Securities: Uses of Proceeds From Registered Securities	14
Item 6.	Exhibits	14

PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements

ML ASPECT FUTURESACCESS LLC
(a Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION

	June 30,		December 31,
	2006		2005
	(unaudited)
ASSETS:
Equity in commodity futures trading accounts:
Cash	$	69,492,027	$	30,348,029
Net unrealized profit on open contracts	2,231,621		638,884
Cash	403,769		18,796
Prepaid filing fee	5,646		—
Accrued interest receivable	261,611		104,310
TOTAL ASSETS	$	72,394,674	$	31,110,019
LIABILITIES AND MEMBERS’ CAPITAL:
LIABILITIES:
Brokerage commissions payable	$	36,081	$	15,491
Management fee payable	119,830		50,943
Sponsor’s fee payable	107,017		43,565
Performance fee payable	527,054		422,270
Redemptions payable	159,009		37,220
Initial offering costs payable	50,695		60,707
Other payables	—		75,170
Total liabilities	999,686		705,366
MEMBERS’ CAPITAL:
Sponsor’s Interest (20,647 and 20,647 Units issued and outstanding)	23,103		21,954
Members’ Interest (63,546,021 and 28,535,392 Units issued and outstanding)	71,371,885		30,382,699
Total members’ capital	71,394,988		30,404,653
TOTAL LIABILITIES AND MEMBERS’ CAPITAL	$	72,394,674	$	31,110,019
NET ASSET VALUE PER UNIT (Note 2)

See notes to financial statements.

2

ML ASPECT FUTURESACCESS LLC
(a Delaware Limited Liability Company)

STATEMENTS OF OPERATIONS
(unaudited)

	For the three			For the three			For the six
	months ended			months ended			months ended
	June 30,			June 30,			June 30,
	2006			2005(1)			2006
TRADING PROFITS (LOSSES):
Realized	$	920,020		$	470,354		$	875,524
Change in unrealized	(903,204		)	477,438			1,595,874
Brokerage commissions	(104,892		)	(26,264		)	(154,431		)
Total trading profits (losses)	(88,076		)	921,528			2,316,967
INVESTMENT INCOME:
Interest	689,806			88,248			1,058,711
EXPENSES:
Management fee	314,102			68,775			500,796
Sponsor’s fee	278,718			40,925			446,486
Performance fee	17,749			181,562			527,054
Other	192,561			28,049			229,601
Total expenses	803,130			319,311			1,703,937
NET INVESTMENT LOSS	(113,324		)	(231,063		)	(645,226		)
NET INCOME (LOSS)	$	(201,400	)	$	690,465		$	1,671,741
NET INCOME (LOSS) PER UNIT:
Weighted average number of Units outstanding
Class A	4,344,235			598,933			3,439,662
Class C	33,315,712			5,847,053			26,648,689
Class D	9,494,264			6,544,805			6,284,828
Class I	7,871,193			494,517			7,224,462
Net income (loss) per weighted average Unit
Class A	$	0.0010		$	0.0508		$	0.0455
Class C	$	(0.0040	)	$	0.0568		$	0.0361
Class D	$	(0.0181	)	$	0.0453		$	0.0162
Class I	$	0.0128		$	0.0638		$	0.0625

(1) commencement of operations April 1, 2005

See notes to financial statements.

3

ML ASPECT FUTURESACCESS LLC
(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL
For the six months ended June 30, 2006 and the three months ended June 30, 2005
(unaudited)

	Initial Offering	Offering Costs	Subscriptions	Redemptions		Net Income	Members’ Capital June 30, 2005	Members’ Capital December 31, 2005	Subscriptions	Redemptions		Net Income	Members’ Capital June 30, 2006
Class A	500,175	—	215,267	—		—	715,442	2,099,133	4,053,913	(402,920	)	—	5,750,126
Class C	4,195,000	—	3,327,827	(130,000	)	—	7,392,827	15,745,021	23,928,586	(822,516	)	—	38,851,091
Class D	6,531,336	—	40,407	—		—	6,571,743	4,742,754	10,548,305	(4,371,011	)	—	10,920,048
Class I	337,750	—	257,515	(10,000	)	—	585,265	5,948,484	2,076,272	—		—	8,024,756
Total Members’ Units	11,564,261	—	3,841,016	(140,000	)	—	15,265,277	28,535,392	40,607,076	(5,596,447	)	—	63,546,021
Class A	—	—	10,319	—		—	10,319	10,319	—	—		—	10,319
Class C	—	—	10,328	—		—	10,328	10,328	—	—		—	10,328
Class D	—	—	—	—		—	—	—	—	—		—	—
Class I	—	—	—	—		—	—	—	—	—		—	—
Total Sponsor’s Units	—	—	20,647	—		—	20,647	20,647	—	—		—	20,647

See notes to financial statements.

4

ML ASPECT FUTURESACCESS LLC
(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL
For the six months ended June 30, 2006 and the three months ended June 30, 2005 (continued)
(unaudited)

	Initial Offering		Initial Offering Costs			Subscriptions		Redemptions			Net Income		Members’ Capital June 30, 2005		Members’ Capital December 31, 2005		Subscriptions		Redemptions			Net Income		Members’ Capital June 30, 2006
Class A	$	500,175	$	(5,246	)	$	214,495	$	—		$	29,689	$	739,113	$	2,233,102	$	4,526,823	$	(452,978	)	$	155,965	$	6,462,912
Class C	4,195,000		(39,432		)	3,275,948		(130,030		)	331,531		7,633,017		16,664,400		26,492,550		(899,944		)	961,646		43,218,652
Class D	6,531,336		(15,300		)	40,794		—			296,228		6,853,058		5,186,047		12,349,023		(4,979,747		)	101,734		12,657,057
Class I	337,750		(14,003		)	250,947		(10,417		)	31,567		595,844		6,299,150		2,282,867		—			451,247		9,033,264
Total Members’ Interests	$	11,564,261	$	(73,981	)	$	3,782,184	$	(140,447	)	$	689,015	$	15,821,032	$	30,382,699	$	45,651,263	$	(6,332,669	)	$	1,670,592	$	71,371,885
Class A	$	—	$	—		$	9,999	$	—		$	734	$	10,733	$	11,001	$	—	$	—		$	605	$	11,606
Class C	—		—			10,000		—			716		10,716		10,953		—		—			544		11,497
Class D	—		—			—		—			—		—		—		—		—			—		—
Class I	—		—			—		—			—		—		—		—		—			—		—
Total Sponsor’s Interest	$	—	$	—		$	19,999	$	—		$	1,450	$	21,449	$	21,954	$	—	$	—		$	1,149	$	23,103
Total Members’ Capital	$	11,564,261	$	(73,981	)	$	3,802,183	$	(140,447	)	$	690,465	$	15,842,481	$	30,404,653	$	45,651,263	$	(6,332,669	)	$	1,671,741	$	71,394,988

See notes to financial statements.

5

ML ASPECT FUTURESACCESS LLC
(a Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS
(unaudited)

1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In the opinion of management, the financial statements contain all adjustments necessary to present fairly the financial position of ML Aspect FuturesAccess LLC (the “Fund”) as of June 30, 2006, and the results of its operations for the three and six months ended June 30, 2006 and for the three months ended June 30, 2005, respectively.  However, the operating results for the interim periods may not be indicative of the results for the full year. The Fund commenced operations on April 1, 2005. Therefore, the Statements of Operations and Statements of Changes in Members’ Capital contain information only for the three month period ended June 30, 2005.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been omitted.  It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Fund’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the period ended December 31, 2005.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

2.NET ASSET VALUE PER UNIT

For financial reporting purposes, in conformity with US GAAP, the Fund deducted the total initial offering costs at inception from Members’ Capital for purposes of determining Net Asset Value.  For all other purposes, including computing Net Asset Value for purposes of member subscription and redemption activity, such costs are amortized over 60 months. Consequently, the Net Asset Value and Net Asset Value per Unit of the different Classes for financial reporting purposes and for all other purposes are as follows:

At June 30, 2006 the Net Asset Values of the different series of Units are as follows:

	Net Asset Value					Net Asset Value per Unit
	All Other Purposes		Financial Reporting		Number of Shares	All Other Purposes		Financial Reporting
Class A	$	6,478,212	$	6,474,518	5,760,445	$	1.1246	$	1.1240
Class C	43,257,478		43,230,149		38,861,419	$	1.1131	$	1.1124
Class D	12,665,754		12,657,057		10,920,048	$	1.1599	$	1.1591
Class I	9,044,239		9,033,264		8,024,756	$	1.1270	$	1.1257
	$	71,445,683	$	71,394,988	63,566,668

6

At December 31, 2005 the Net Asset Values of the different series of Units are as follows:

	Net Asset Value					Net Asset Value per Unit
	All Other Purposes		Financial Reporting		Number of Units	All Other Purposes		Financial Reporting
Class A	$	2,248,584	$	2,244,103	2,109,452	$	1.0660	$	1.0638
Class C	$	16,708,648	$	16,675,353	15,755,349	$	1.0605	$	1.0584
Class D	$	5,196,400	$	5,186,047	4,742,754	$	1.0957	$	1.0935
Class I	$	6,311,728	$	6,299,150	5,948,484	$	1.0611	$	1.0590
	$	30,465,360	$	30,404,653	28,556,039

3.FAIR VALUE AND OFF-BALANCE SHEET RISK

The nature of this Fund has certain risks, which cannot all be presented on the financial statements.  The following summarizes some of those risks.

Market Risk

Derivative instruments involve varying degrees of off-balance sheet market risk.  Changes in the level or volatility of interest rates, foreign currency exchange rates or the market values of the financial instruments or commodities underlying such derivative instruments frequently result in changes in the Fund’s net unrealized profit (loss) on such derivative instruments as reflected in the Statement of Financial Condition.  The Fund’s exposure to market risk is influenced by a number of factors, including the relationships among the derivative instruments held by the Fund as well as the volatility and liquidity of the markets in which the derivative instruments are traded.

The sponsor of the Fund, Merrill Lynch Alternative Investments (“MLAI”), 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 Aspect Capital Limited (“Aspect”), the trading advisor, calculating the Net Asset Value of the Fund as of the close of business on each day and reviewing outstanding positions for over-concentrations.  While MLAI does not itself intervene in the markets to hedge or diversify the Fund’s market exposure, MLAI may urge Aspect to reallocate positions in an attempt to avoid over-concentrations.  However, such interventions are expected to be unusual.  It is expected that MLAI’s basic risk control procedures will consist of the ongoing process of advisor monitoring, with the market risk controls being applied by Aspect itself.

7

Credit Risk

The risks associated with exchange-traded contracts are typically perceived to be less than those associated with over-the-counter (non-exchange-traded) transactions, because exchanges typically provide clearinghouse arrangements in which the collective credit (in some cases limited in amount, in some cases not) of the members of the exchange is pledged to support the financial integrity of the exchange.  In over-the-counter transactions, on the other hand, traders must rely solely on the credit of their respective individual counterparties.  Margins, which may be subject to loss in the event of a default, are generally required in exchange trading, and counterparties may also require margin in the over-the-counter markets.

The credit risk associated with these instruments from counterparty nonperformance is the net unrealized profit, if any, included in the Statements of Financial Condition. The Fund attempts to mitigate this risk by dealing exclusively with Merrill Lynch & Co., Inc. (“Merrill Lynch”) entities as clearing brokers.

The Fund, in its normal course of business, enters into various contracts, with Merrill Lynch Pierce Fenner & Smith Inc. (“MLPF&S”) acting as its commodity broker.  Pursuant to the brokerage arrangement with MLPF&S (which includes a netting arrangement), to the extent that such trading results in receivables from and payables to MLPF&S, these receivables and payables are offset and reported as a net receivable or payable and included in equity from commodity futures trading accounts in the Statements of Financial Condition.

8

Item 2:Management’s Discussion and Analysis of Financial Condition and Results of Operations

MONTH-END NET ASSET VALUE PER UNIT (1)

(NON US GAAP)

Class A

	Jan.		Feb.		Mar.		Apr.		May		Jun.
2005	n/a		n/a		n/a		$	0.9690	$	1.0071	$	1.0401
2006	$	1.0832	$	1.0733	$	1.1176	$	1.1701	$	1.1235	$	1.1246

Class C

	Jan.		Feb.		Mar.		Apr.		May		Jun.
2005	n/a		n/a		n/a		$	0.9682	$	1.0054	$	1.0376
2006	$	1.0768	$	1.0662	$	1.1093	$	1.1595	$	1.1115	$	1.1131

Class D

	Jan.		Feb.		Mar.		Apr.		May		Jun.
2005	n/a		n/a		n/a		$	0.9702	$	1.0096	$	1.0447
2006	$	1.1148	$	1.1086	$	1.1563	$	1.2076	$	1.1546	$	1.1599

Class I

	Jan.		Feb.		Mar.		Apr.		May		Jun.
2005	n/a		n/a		n/a		$	0.9693	$	1.0078	$	1.0417
2006	$	1.0786	$	1.0690	$	1.1139	$	1.1664	$	1.1231	$	1.1270

(1) Represents Net Asset Value per unit for all other purposes as discussed in Note 2 to the Financial Statements.

Performance Summary

January 1, 2006 to June 30, 2006

January 1, 2006 to March 31, 2006

The Fund posted an overall gain for the quarter with stock indices, metals and interest rate sectors posted gains while agricultural, currencies, and energy sectors posted losses.

Stock indices were the most profitable for the Fund. Stock indices continued their recent rally to the benefit of the Fund, despite a sharp correction the beginning of the first quarter following the Japanese Livedoor scandal. U.S. and global indices reacted to strong mid-and small-cap U.S. corporate results, and sentiment regarding the rate cycle, while Europe was lifted by large cap merger activity and high commodity prices. The quarter ended with most major stock markets still experiencing an uptrend, driven by continued optimistic sentiment around the markets.

The metals sector was also profitable for this Fund. Strong profits came from metals as bullish trends continued through the beginning of the first quarter. Prices were driven higher by global industrial growth set against producers’ capacity problems. Aluminum had large gains as smelters closed in China and Switzerland, while zinc was helped on its way by decreasing inventories and South American labor disputes. Metal prices continued to rise through the end of the quarter driven by increasingly strong demand which benefited the Fund’s long positions.

9

The interest rate sector posted gains for the Fund. The beginning of the quarter found the best single market was in the interest rates sector, where the short in the Eurodollar profited from market expectations of further U.S. rate hikes.

The currency sector posted a loss for this Fund. Bonds contributed a loss to the Fund, with their recent meager rally extinguished by a sharp correction in the beginning of the quarter sparked by a strong German business confidence survey, a closing of European/U.S. interest rate differentials and a second month of Japanese price increases. However, the Fund profited mid-quarter from the weakening Swedish krona after bearish Swedish inflation figures, and from the strengthening U.S. dollar. The Japanese yen presented problems, however, as it strengthened amid speculation that Japanese rates might be raised sooner than expected.  The quarter ended with bonds posting profits for the Fund, due to profits from the short position in Japanese ten year bonds. The Bank of Japan’s decision on March 9, 2006 to drop its policy of “quantitative easing” caused yields to rise sharply. Profits were also posted from the program’s short position in the Euribor. The fall in price was triggered by various data releases fuelling expectations of further rate hikes from the European Central Bank.

The agricultural sector posted losses for the Fund. The agricultural market was soft which attributed to the difficult trading environment resulting in the sector posting losses for the Fund.

The energy sector was the least profitable for the Fund. Long positions in crude oil suffered heavily early in mid-quarter wherein the price dropped by nearly U.S. $10/bbl amid bountiful inventory figures, before recovering somewhat following violence in Nigeria and an attempted refinery bombing in Saudi Arabia. However, the short positions in natural gas produced good returns as the price continued it’s strong downwards trend, despite the short cold snap in North America. The quarter ended with a disappointment to the Fund, wherein short positions in unleaded gasoline and crude oil were affected by geopolitical concerns driving prices higher.

April 1, 2006 to June 30, 2006

The Fund posted an overall loss for the quarter with interest rates and metal sectors posting gains while energy, currencies, agriculture and stock indices sectors posted losses.

The interest rate sector was the most profitable for the Fund. Bonds continued to profit from its short positions as the global economy remained in an environment of rising short-term interest rates. Short positions in the U.K. ten year gilt were the best single market performers for the Fund. There were losses from short positions in bonds mid-quarter, however, interest rates proved profitable as the Federal Reserve’s focus on inflation became important. The quarter ended with the best single market in the interest rates sector, where the short in the Eurodollar profited from market participants’ focusing their attention on the central banks announcements and commentaries on inflation.

The metals sector was also profitable for this Fund. Strong profits came from metals as bullish trends continued through the middle of the second quarter. Several metals hit record highs at the beginning of the quarter as robust Chinese economic growth further increased global demand. Profits were also generated for the Fund mid-quarter contrary to the highly volatile price action. Prices started to fall again at the end of the quarter due to the Fund’s reduced, but remaining long positions.

The energy sector posted losses for the Fund. Modest gains were posted to the Fund beginning of the quarter only to fall mid quarter. Equity markets corrected sharply amid concerns over rising inflation and speculation that the long bull market might be coming to an end. The Fund’s long positions suffered as a result, especially in the highly commodity-influenced FTSE 100 as energies and metals markets also fell sharply. Energy markets proved difficult for the Fund, with the worst loss in crude oil. However, the quarter ended posting gains for the Fund from long positions in crude oil and short positions in natural gas.

10

The currency sector posted losses for the Fund. Long positions in the U.S. dollar contributed a loss to the Fund at the beginning of the quarter due to the weakening of the U.S. dollar to other currencies. A turbulent period in the markets mid-quarter resulted in most sectors witnessing sharp reversals, which hurt established positions. Short position in the Eurodollar did post a slight gain for the Fund at quarter’s end however, it was not enough to offset the losses.

The agricultural sector posted losses for the Fund. The agricultural market was soft which attributed to the difficult trading environment resulting in the sector posting losses for the Fund. The worst single performance at quarter’s end came from cocoa futures which was a sharp reversal in June after two bearish months, affecting the Fund’s short positions.

Stock indices were the least profitable for the Fund. Modest gains were posted at the beginning of the quarter only to have sharp reversals mid quarter which hurt established positions.  The Fund’s losses in stock indices were limited at quarter’s end as long positions were largely reduced, quickly adapting to the current market environment.

April 1, 2005 to June 30, 2005

The Fund posted an overall gain for the quarter after incurring losses early on.   The interest rate sector posted the majority of the profits, followed by the currency and stock indices sectors.  Losses were posted in the metals, agriculture, and energy sectors.

Trading in interest rates was profitable throughout the quarter.  Short term interest rates were profitable as speculation that the next move in U.K. interest rates could be downwards.  The Riskbank cut interest rates as well.  Speculation that the U.K. will likely cut interest rates before the end of the year continued.

The currency sector posted gains despite losses early on.  Currency markets were dominated by the strengthening U.S. dollar and the Euro falling to seven month lows after the French rejected the European constitution.  The currency markets were the most profitable towards the end of the quarter.

Trading in stock indices was also profitable for the Fund.  Trading in stock indices was turbulent in the beginning of the quarter as the sharp mid-month falls triggered by the Asian indices impacted performance.  Mid-quarter global markets recovered and stock indices were a source of profit.  The quarter ended with gains as European and Asian markets enjoyed a good month.

Losses were posted in the metals sector throughout the month.  Base metal markets suffered a sharp drop after copper reached new highs, hurting the long positions held in the Fund.

Trading in agricultural commodities posted losses for the Fund. Trading in soft agricultural markets attributed to these losses.

The largest losses were posted in the energy sector.  Trading in energies was difficult as crude fell back from its highs, but remained volatile amid speculation about refinery capacity issues. The downward trend in natural gas continued throughout the quarter.

11

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

Not applicable

Item 4. Controls and Procedures

MLAI, the Sponsor of ML Aspect FuturesAccess LLC, with the participation of the Sponsor’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 Fund as of the end of the period of this quarterly report, and, based on this evaluation, has concluded that these disclosure controls and procedures are effective.  Additionally, there were no significant changes in the Fund’s internal controls or in other factors that could significantly affect these controls subsequent to the date of this evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

12

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Neither the Fund nor MLAI has ever been the subject of any material litigation.  Merrill Lynch is the 100% indirect owner of MLAI, MLPF&S and all other Merrill Lynch entities involved in the operations of the Fund. Merrill Lynch 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 the financial condition of MLAI or the Fund.

Item 2.	Changes in Securities and Use of Proceeds
	(a)  None.
	(b)  None.
	(c)  None.
	(d)  None.
Item 3.	Defaults Upon Senior Securities
	None.
Item 4.	Submission of Matters to a Vote of Security Holders
	None.
Item 5.	Other Information
	None.

13

Item 5(a).	Recent Sales of Unregistered Securities: Uses of Proceeds From Registered Securities:
	Issuance to accredited investors pursuant to Regulation D and Section 4(6) under the Securities Act. The selling agent of the following Class of Units was MLPF&S.

CLASS A

	Subscription Amount		Units	NAV(1)
Jan-06	$	193,045	181,093	$	1.0660
Feb-06	276,896		255,628	1.0832
Mar-06	629,668		586,665	1.0733
Apr-06	666,891		596,717	1.1176
May-06	651,288		556,609	1.1701
Jun-06	2,109,035		1,877,201	1.1235
Jul-06	1,533,088		1,363,230	1.1246

CLASS C

	Subscription Amount		Units	NAV(1)
Jan-06	$	2,522,952	2,379,021	$	1.0605
Feb-06	1,581,956		1,469,127	1.0768
Mar-06	4,424,936		4,150,193	1.0662
Apr-06	5,220,884		4,706,467	1.1093
May-06	6,439,891		5,554,024	1.1595
Jun-06	6,301,931		5,669,754	1.1115
Jul-06	9,734,819		8,745,682	1.1131

CLASS D

	Subscription Amount		Units	NAV(1)
Jan-06	$	1,079,998	985,670	$	1.0957
Feb-06	—		—	1.1148
Mar-06	—		—	1.1562
Apr-06	6,196,498		5,358,902	1.1563
May-06	4,987,527		4,130,115	1.2076
Jun-06	85,000		73,618	1.1546
Jul-06	1,166,147		1,005,386	1.1599

CLASS I

	Subscription Amount		Units	NAV(1)
Jan-06	$	70,998	66,910	$	1.0611
Feb-06	867,997		804,744	1.0786
Mar-06	82,872		77,523	1.0690
Apr-06	959,261		861,173	1.1139
May-06	82,996		71,156	1.1664
Jun-06	218,743		194,766	1.1231
Jul-06	1,165,493		1,034,155	1.1270

(1)Net Asset Value for all other purposes

Item 6.	Exhibits
	The following exhibits are incorporated by reference or are filed herewith to this Quarterly Report on Form 10-Q:
	31.01 and
	31.02	Rule 13a-14(a)/15d-14(a) Certifications
	Exhibit 31.01
	and 31.02:	Are filed herewith.
	32.01 and
	32.02	Section 1350 Certifications
	Exhibit 32.01
	and 32.02	Are filed herewith.

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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.

	ML ASPECT FUTURESACCESS LLC
	By:	MERRILL LYNCH ALTERNATIVE
		INVESTMENTS LLC
		(General Partner)
Date: August 14, 2006	By	/s/ BENJAMIN WESTON
		Benjamin Weston
		Chief Executive Officer and President
		(Principal Executive Officer)
Date: August 14, 2006
	By	/s/ MICHAEL L. PUNGELLO
		Michael L. Pungello
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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