<PAGE>
DEFINED ASSET FUNDSSM
- --------------------------------------------
- ----------------------------------
MUNICIPAL INVESTMENT TRUST FUND
MULTISTATE SERIES--308
(A UNIT INVESTMENT TRUST)
O COLORADO, MISSOURI AND NEW YORK PORTFOLIOS
O PORTFOLIOS OF LONG-TERM MUNICIPAL BONDS
O DESIGNED FOR FEDERALLY TAX-FREE INCOME
O EXEMPT FROM SOME STATE TAXES
O MONTHLY DISTRIBUTIONS
SPONSORS:
Merrill Lynch,
Pierce, Fenner & Smith -------------------------------------------------
Incorporated The Securities and Exchange Commission has not
Salomon Smith Barney Inc. approved or disapproved these Securities or
Prudential Securities passed upon the adequacy of this prospectus. Any
Incorporated representation to the contrary is a criminal
PaineWebber Incorporated offense.
Dean Witter Reynolds Inc. Prospectus dated June 25, 1999.
<PAGE>
- --------------------------------------------------------------------------------
Def ined Asset FundsSM
Defined Asset FundsSM is America's oldest and largest family of unit investment
trusts, with over $160 billion sponsored over the last 28 years. Defined Asset
Funds has been a leader in unit investment trust research and product
innovation. Our family of Funds helps investors work toward their financial
goals with a full range of quality investments, including municipal, corporate
and government bond portfolios, as well as domestic and international equity
portfolios.
Defined Asset Funds offer a number of advantages:
o A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
o Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
o Defined Portfolios: We choose the stocks and bonds in advance, so you know
what you're investing in.
o Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
o Ongoing supervision: We monitor each portfolio on an ongoing basis.
No matter what your investment goals, tolerance for risk or time horizon,
there's probably a Defined Asset Fund that suits your investment style. Your
financial professional can help you select a Defined Asset Fund that works best
for your investment portfolio.
THE FINANCIAL INFORMATION IN THIS PROSPECTUS IS AS OF MARCH 31, 1999, THE
EVALUATION DATE.
CONTENTS
PAGE
-----------
Colorado Portfolio--
Risk/Return Summary.................................. 3
Missouri Insured Portfolio-- Risk/Return Summary........ 6
New York Insured Portfolio-- Risk/Return Summary........ 9
What You Can Expect From Your Investment................ 13
Monthly Income....................................... 13
Return Figures....................................... 13
Records and Reports.................................. 13
The Risks You Face...................................... 14
Interest Rate Risk................................... 14
Call Risk............................................ 14
Reduced Diversification Risk......................... 14
Liquidity Risk....................................... 14
Concentration Risk................................... 14
State Concentration Risk............................. 15
Bond Quality Risk.................................... 17
Insurance Related Risk............................... 17
Litigation and Legislation Risks..................... 17
Selling or Exchanging Units............................. 17
Sponsors' Secondary Market........................... 18
Selling Units to the Trustee......................... 18
Exchange Option...................................... 19
How The Fund Works...................................... 19
Pricing.............................................. 19
Evaluations.......................................... 19
Income............................................... 19
Expenses............................................. 19
Portfolio Changes.................................... 20
Fund Termination..................................... 20
Certificates......................................... 21
Trust Indenture...................................... 21
Legal Opinion........................................ 22
Auditors............................................. 22
Sponsors............................................. 22
Trustee.............................................. 22
Underwriters' and Sponsors' Profits 22
Public Distribution.................................. 23
Code of Ethics....................................... 23
Year 2000 Issues..................................... 23
Taxes................................................... 23
Supplemental Information................................ 25
Financial Statements.................................... D-1
2
<PAGE>
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COLORADO PORTFOLIO--RISK/RETURN SUMMARY
1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of long
term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.
3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 9 long-term tax-exempt
municipal bonds, any some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$3,130,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o When the bonds were initially deposited they were rated A
or better by Standard & Poor's, Moody's or Fitch. The
quality of the bonds may currently be lower.
o Many of the bonds can be called at a premium declining over
time to par value. Some bonds may be called earlier at par
for extraordinary reasons.
o 76% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).
The Portfolio consists of municipal bonds of the following
types:
APPROXIMATE
PORTFOLIO
PERCENTAGE
/ / Airports/Ports/Highways 22%
/ / General Obligation 16%
/ / Hospital/Health Care 14%
/ / Industrial Development Revenue 16%
/ / Lease Rental Appropriation 16%
/ / Municipal Water/Sewer Utilities 16%
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.
3
<PAGE>
ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF COLORADO SO
IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT
TO RISKS PARTICULAR TO COLORADO WHICH ARE BRIEFLY DESCRIBED
UNDER STATE CONCENTRATION RISKS LATER IN THIS PROSPECTUS.
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in bonds of
several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.
DEFINING YOUR INCOME
WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.46
Annual Income per unit: $ 53.61
These figures are estimates determined on the evaluation
day; actual payments may vary.
6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August, through May, 2000. Employees of
some of the Sponsors and their affiliates may pay a reduced
sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
----------------------------------- -----------------
Less than $100,000 2.90%
$100,000 to $249,999 2.65%
$250,000 to $499,999 2.40%
$500,000 to $999,999 2.15%
$1,000,000 and over 1.90%
Maximum Exchange Fee 1.90%
ESTIMATED ANNUAL FUND OPERATING EXPENSES
AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.43
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.73
Other Operating Expenses
-----------
$ 2.53
TOTAL
The Sponsors historically paid organization costs and
updating expenses.
7. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not managed and bonds
are not sold because of market changes. Rather,
experienced Defined Asset Funds financial analysts
regularly review the bonds in the Fund. The Fund may sell
a bond if certain adverse credit or other conditions
exist.
4
<PAGE>
8. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,083.75
(as of March 31, 1999)
Unit price is based on the net asset value of the Fund plus
the sales fee. An amount equal to any principal cash, as
well as net accrued but undistributed interest on the unit,
is added to the unit price. An independent evaluator prices
the bonds at 3:30 p.m. Eastern time every business day.
Unit price changes every day with changes in the prices of
the bonds in the Fund.
9. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale less any remaining deferred
sales fee. You will not pay any other fee when you sell
your units.
10. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some Colorado state and local personal income
taxes if you live in Colorado.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
11. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective. Income from this program will
generally be subject to state and local income taxes. For
more complete information about the program, including
charges and fees, ask the Trustee for the program's
prospectus. Read it carefully before you invest. The Trustee
must receive your written election to reinvest at least 10
days before the record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.
5
<PAGE>
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MISSOURI INSURED PORTFOLIO--RISK/RETURN SUMMARY
1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of
insured, long term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.
3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 9 long-term tax-exempt
municipal bonds, and some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$2,705,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o The bonds are rated AAA or Aaa by Standard & Poor's,
Moody's or Fitch.
o Many of the bonds can be called at a premium declining over
time to par value. Some bonds may be called earlier at par
for extraordinary reasons.
o 100% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).
The Portfolio consists of municipal bonds of the following
types:
APPROXIMATE
PORTFOLIO
PERCENTAGE
/ / Hospital/Health Care 18%
/ / Lease Rental Appropriation 64%
/ / Parking Revenue 9%
/ / Municipal Electric Utilities 9%
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in lease rental
appropriation bonds, adverse developments in this sector
may affect the value of your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.
ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF MISSOURI SO
IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT
TO RISKS PARTICULAR TO MISSOURI WHICH ARE BRIEFLY DESCRIBED
UNDER STATE CONCENTRATION RISKS LATER IN THIS PROSPECTUS.
6
<PAGE>
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in insured
bonds of several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.
DEFINING YOUR INCOME
WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.25
Annual Income per unit: $ 51.01
These figures are estimates determined on the evaluation
day; actual payments may vary.
6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August through May, 2000. Employees of
some of the Sponsors and their affiliates may pay a reduced
sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
----------------------------------- -----------------
Less than $100,000 2.90%
$100,000 to $249,999 2.65%
$250,000 to $499,999 2.40%
$500,000 to $999,999 2.15%
$1,000,000 and over 1.90%
Maximum Exchange Fee 1.90%
ESTIMATED ANNUAL FUND OPERATING EXPENSES
AMOUNT
PER UNIT
-----------
$ 0.72
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.50
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.87
Other Operating Expenses
-----------
$ 2.75
TOTAL
The Sponsors historically paid organization costs and
updating expenses.
7. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not managed and bonds
are not sold because of market changes. Rather,
experienced Defined Asset Funds financial analysts
regularly review the bonds in the Fund. The Fund may sell
a bond if certain adverse credit or other conditions
exist.
8. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,071.46
(as of March 31, 1999)
Unit price is based on the net asset value of the Fund
plus the sales fee. An amount equal to any principal cash,
as well as net accrued but undistributed interest on the
unit, is added to the unit price. An independent evaluator
prices the bonds at 3:30 p.m. Eastern time every business
day. Unit price changes every day with changes in the
prices of the bonds in the Fund.
7
<PAGE>
9. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale, less any remaining deferred
sales fee. You will not pay any other fee when you sell
your units.
10. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some Missouri state and local personal income
taxes if you live in Missouri.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
11. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective. Income from this program will
generally be subject to state and local income taxes. For
more complete information about the program, including
charges and fees, ask the Trustee for the program's
prospectus. Read it carefully before you invest. The Trustee
must receive your written election to reinvest at least 10
days before the record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.
8
<PAGE>
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NEW YORK INSURED PORTFOLIO--RISK/RETURN SUMMARY
1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of
insured, long term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.
3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 9 long-term tax-exempt
municipal bonds, and some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$3,250,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o The bonds are rated AAA or Aaa by Standard & Poor's,
Moody's or Fitch.
o Many of the bonds can be called at a premium declining over
time to par value. Some bonds may be called earlier at par
for extraordinary reasons.
o 100% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).
The Portfolio consists of municipal bonds of the following
types:
APPROXIMATE
PORTFOLIO
PERCENTAGE
/ / Hospital/Health Care 37%
/ / Industrial Development Revenue 12%
/ / Refunded Bonds 4%
/ / Municipal Combined Utilities 12%
/ / Universities/Colleges 35%
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in hospital/health care
and university/college bonds, adverse developments in these
sectors may affect the value of your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.
ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF NEW YORK SO
IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT
TO RISKS PARTICULAR TO NEW YORK WHICH ARE BRIEFLY DESCRIBED
UNDER STATE CONCENTRATION RISKS LATER IN THIS PROSPECTUS.
9
<PAGE>
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in insured
bonds of several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.
DEFINING YOUR INCOME
WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.26
Annual Income per unit: $ 51.21
These figures are estimates determined on the evaluation
day; actual payments may vary.
6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August through May, 2000. Employees of
some of the Sponsors and their affiliates may pay a reduced
sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
----------------------------------- -----------------
Less than $100,000 2.90%
$100,000 to $249,999 2.65%
$250,000 to $499,999 2.40%
$500,000 to $999,999 2.15%
$1,000,000 and over 1.90%
Maximum Exchange Fee 1.90%
ESTIMATED ANNUAL FUND OPERATING EXPENSES
AMOUNT
PER UNIT
-----------
$ 0.72
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.41
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.77
Other Operating Expenses
-----------
$ 2.56
TOTAL
The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
New York Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior New York Series
were offered between January 14, 1988 and October 16, 1996
and were outstanding on March 31, 1999. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 3/31/99.
WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 10 YEARS 1 YEAR 5 YEARS 10 YEARS
- -------------------------------------------------------------------
High 5.38% 7.23% 7.44% 7.65% 8.43% 8.04%
Average 2.37 5.33 7.17 5.49 6.33 7.76
Low -0.98 4.23 7.00 3.37 5.12 7.59
- -------------------------------------------------------------------
Average
Sales fee 3.11% 4.90% 5.77%
- -------------------------------------------------------------------
Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.
8. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not managed and bonds are
not sold because of market changes. Rather, experienced
Defined Asset Funds financial analysts regularly review the
bonds in the Fund. The Fund may sell a bond if certain
adverse credit or other conditions exist.
10
<PAGE>
9. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,070.92
(as of March 31, 1999)
Unit price is based on the net asset value of the Fund plus
the sales fee. An amount equal to any principal cash, as
well as net accrued but undistributed interest on the unit,
is added to the unit price. An independent evaluator prices
the bonds at 3:30 p.m. Eastern time every business day.
Unit price changes every day with changes in the prices of
the bonds in the Fund.
10. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale, less any remaining deferred
sales fee. You will not pay any other fee when you sell
your units.
11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some New York state and local personal income
taxes if you live in New York.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective, but the bonds generally will not be
insured. Income from this program will generally be subject
to state and local income taxes. For more complete
information about the program, including charges and fees,
ask the Trustee for the program's prospectus. Read it
carefully before you invest. The Trustee must receive your
written election to reinvest at least 10 days before the
record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.
11
<PAGE>
- --------------------------------------------------------------------------------
TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS
FOR COLORADO RESIDENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1998* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 3% 3.5% 4% 4.5% 5% 5.5% 6% 6.5%
IS EQUIVALENT TO A TAXABLE YIELD OF
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0- 25,350 $ 0- 42,350 19.25 3.72 4.33 4.95 5.57 6.18 6.81 7.43 8.05
$ 25,350- 81,400 $ 42,350-102,300 31.60 4.39 5.12 5.85 6.58 7.31 8.04 8.77 9.50
$ 81,400-128,100 $102,300-155,950 34.45 4.58 5.34 6.10 6.86 7.83 8.39 9.15 9.92
$128,100-278,450 $155,950-278,450 38.20 4.93 5.76 6.58 7.40 8.22 9.05 9.87 10.69
OVER $278,450 OVER $278,450 42.62 5.23 6.10 6.97 7.84 8.71 9.59 10.46 11.33
</TABLE>
FOR MISSOURI RESIDENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1998* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 3% 3.5% 4% 4.5% 5% 5.5% 6% 6.5%
IS EQUIVALENT TO A TAXABLE YIELD OF
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0- 25,350 $ 0- 42,350 19.37 3.72 4.34 4.96 5.58 6.20 6.82 7.44 8.06
$ 25,350- 81,400 $ 42,350-102,300 31.16 4.35 5.08 5.81 6.54 7.26 7.89 8.72 9.44
$ 81,400-128,100 $102,300-155,950 33.90 4.54 5.30 6.05 6.81 7.56 8.32 9.08 9.83
$128,100-278,450 $155,950-278,450 38.50 4.88 5.89 6.50 7.32 8.13 8.84 9.76 10.57
OVER $278,450 OVER $278,450 41.82 5.15 6.02 6.88 7.73 8.59 9.45 10.31 11.37
</TABLE>
FOR NEW YORK CITY RESIDENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0- 43,060 23.59 5.24 5.89 6.54 7.20 7.85 8.51 9.16 9.82 10.47
$ 0-25,750- 23.63 5.24 5.89 6.55 7.20 7.86 8.51 9.17 9.82 10.48
$ 25,751- 62,450 $ 43,051-104,050 35.35 6.19 6.96 7.73 8.51 9.28 10.05 10.83 11.60 12.37
$ 62,451-130,250 $104,051-158,550 38.04 6.46 7.26 8.07 8.88 9.68 10.49 11.30 12.11 12.91
$130,251-283,150 $158,551-283,150 42.53 6.96 7.83 8.70 9.57 10.44 11.31 12.18 13.05 13.92
OVER $283,151 OVER $283,151 45.77 7.38 8.30 9.22 10.14 11.06 11.98 12.91 13.83 14.75
</TABLE>
FOR NEW YORK STATE RESIDENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0- 25,750 $ 0- 43,050 20.82 5.05 5.68 6.31 6.95 7.58 8.21 8.84 9.47 10.10
$ 25,751- 62,450 $ 43,051-104,050 32.93 5.96 6.71 7.46 8.20 8.95 9.69 10.44 11.18 11.93
$ 62,451-130,250 $104,051-158,550 35.73 6.22 7.00 7.78 8.56 9.34 10.11 10.69 11.67 12.45
$130,251-283,150 $158,551-283,150 40.38 6.71 7.55 8.39 9.23 10.06 10.90 11.74 12.58 13.42
OVER $283,151 OVER $283,151 43.74 7.11 8.00 8.89 9.78 10.66 11.55 12.44 13.33 14.22
</TABLE>
To compare the yield of a taxable security with the yield of a tax-free
security, find your taxable income and read across. The table incorporates 1999
federal and applicable State (and City) income tax rates and assumes that all
income would otherwise be taxed at the investor's highest tax rate. Yield
figures are for example only.
*Based upon net amount subject to federal income tax after deductions and
exemptions. This table does not reflect the possible effect of other tax
factors, such as alternative minimum tax, personal exemptions, the phase out of
exemptions, itemized deductions or the possible partial disallowance of
deductions. Consequently, investors are urged to consult their own tax advisers
in this regard.
12
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT
MONTHLY INCOME
The Fund will pay you regular monthly income. Your monthly income may vary
because of:
o elimination of one or more bonds from the Fund's portfolio because of
calls, redemptions or sales;
o a change in the Fund's expenses; or
o the failure by a bond's issuer to pay interest.
Changes in interest rates generally will not affect your income because the
portfolio is fixed.
Along with your income, you will receive your share of any available bond
principal.
RETURN FIGURES
We cannot predict your actual return, which will vary with unit price, how long
you hold your investment and changes in the portfolio, interest income and
expenses.
Estimated Current Return equals the estimated annual cash to be received from
the bonds in the Fund less estimated annual Fund expenses, divided by the Unit
Price (including the maximum sales fee):
Estimated Annual Estimated
Interest Income - Annual Expenses
- -------------------------------------------------
Unit Price
Estimated Long Term Return is a measure of the estimated return over the
estimated life of the Fund. Unlike Estimated Current Return, Estimated Long Term
Return reflects maturities, discounts and premiums of the bonds in the Fund. It
is an average of the yields to maturity (or in certain cases, to an earlier call
date) of the individual bonds in the portfolio, adjusted to reflect the Fund's
maximum sales fee and estimated expenses. We calculate the average yield for the
portfolio by weighting each bond's yield by its market value and the time
remaining to the call or maturity date.
Yields on individual bonds depend on many factors including general conditions
of the bond markets, the size of a particular offering and the maturity and
quality rating of the particular issues. Yields can vary among bonds with
similar maturities, coupons and ratings.
These return quotations are designed to be comparative rather than predictive.
RECORDS AND REPORTS
You will receive:
o a monthly statement of income payments and any principal payments;
o a notice from the Trustee when new bonds are deposited in exchange or
substitution for bonds originally deposited;
o an annual report on Fund activity; and
o annual tax information. This will also be sent to the IRS. You must report the
amount of tax-exempt interest received during the year.
You may request:
o copies of bond evaluations to enable you to comply with federal and state tax
reporting requirements; and
o audited financial statements of the Fund.
You may inspect records of Fund transactions at the Trustee's office during
regular business hours.
13
<PAGE>
THE RISKS YOU FACE
INTEREST RATE RISK
Investing involves risks, including the risk that your investment will decline
in value if interest rates rise. Generally, bonds with longer maturities will
change in value more than bonds with shorter maturities. Bonds in the Fund are
more likely to be called when interest rates decline. This would result in early
returns of principal to you and may result in early termination of the Fund. Of
course, we cannot predict how interest rates may change.
CALL RISK
Many bonds can be prepaid or 'called' by the issuer before their stated
maturity.
For example, some bonds may be required to be called pursuant to mandatory
sinking fund provisions.
Also, an issuer might call its bonds during periods of falling interest rates,
if the issuer's bonds have a coupon higher than current market rates.
An issuer might call its bonds in extraordinary cases, including if:
o it no longer needs the money for the original purpose;
o the project is condemned or sold;
o the project is destroyed and insurance proceeds are used to redeem the
bonds;
o any related credit support expires and is not replaced; or
o interest on the bonds become taxable.
If the bonds are called, your income will decline and you may not be able to
reinvest the money you receive at as high a yield or as long a maturity. An
early call at par of a premium bond will reduce your return.
REDUCED DIVERSIFICATION RISK
If many investors sell their units, the Fund will have to sell bonds. This could
reduce the diversification of your investment and increase your share of Fund
expenses.
LIQUIDITY RISK
You can always sell back your units, but we cannot assure you that a liquid
trading market will always exist for the bonds in the portfolio, especially
since current law may restrict the Fund from selling bonds to any Sponsor. The
bonds will generally trade in the over-the-counter market. The value of the
bonds, and of your investment, may be reduced if trading in bonds is limited or
absent.
CONCENTRATION RISK
When a certain type of bond makes up 25% or more of the portfolio, it is said to
be 'concentrated' in that bond type, which makes the Portfolio less diversified.
Here is what you should know about the New York Portfolio's concentration in
hospital and health care bonds.
o payment for these bonds depends on revenues from private third-party payors
and government programs, including Medicare and Medicaid, which have
generally undertaken cost containment measures to limit payments to health
care providers;
o hospitals face increasing competition resulting from hospital mergers and
affiliations;
o hospitals need to reduce costs as HMOs increase market penetration and
hospital supply and drug companies raise prices;
o hospitals and health care providers are subject to various legal claims by
patients and others and are adversely affected by increasing costs of
insurance; and
14
<PAGE>
o many hospitals are aggressively buying physician practices and assuming
risk contracts to gain market share. If revenues do not increase
accordingly, this practice could reduce profits;
o Medicare is changing its reimbursement system for nursing homes. Many
nursing home providers are not sure how they will be treated. In many
cases, the providers may receive lower reimbursements and these would have
to cut expenses to maintain profitability; and
o most retirement/nursing home providers rely on entrance fees for operating
revenues. If people live longer than expected and turnover is lower than
budgeted, operating revenues would be adversely affected by less than
expected entrance fees.
Here is what you should know about the New York Portfolio's concentration in
university/college bonds. Payment for these bonds depends on:
o level or amount and diversity of sources of revenue;
o availability of endowments and other funds;
o enrollment;
o financial management;
o reputation; and
o for public institutions, the financial condition of the government and its
educational policies.
Here is what you should know about the Missouri Fund's concentration in lease
rental bonds. Lease rental bonds are generally issued by governmental financing
authorities that cannot assess a tax to cover the cost of equipment or
construction of buildings that will be used by a state or local government. The
risks associated with these bonds include:
o the failure of the government to appropriate funds for the leasing rental
payments to service the bonds; and
o rental obligations, and therefore payments, may terminate in the event of
damages to or destruction or condemnation of the of the equipment or
building.
Changes to the portfolio from bond redemptions, maturities and sales may affect
the Fund's concentrations over time.
STATE CONCENTRATION RISK
COLORADO RISKS
Generally
Colorado has experienced above-average economic growth for the last nine years,
and its unemployment rate has been below the national average. This has been due
in large part to above-average population growth, job growth and net migration
into the state. However, both net migration and job growth have slowed recently,
and any further slowdown could hurt Colorado's future economic performance.
The most important sectors of Colorado's economy, other than state government,
are:
o service;
o trade;
o manufacturing; and
o tourism.
State and Local Government
The 1992 TABOR amendment to the Colorado Constitution restricts the ability of
the state and its subdivisions to increase taxes, revenues, debt and spending in
the following ways:
o state and local spending is capped at the prior year's spending, with some
adjustments, unless voters approve an increase;
o excess revenues must be refunded;
15
<PAGE>
o voter approval is required for any new tax, tax increase or, with some
exceptions, new debt;
o certain new taxes are prohibited entirely; and
o the state and local entities must establish emergency reserves, and can
reduce or end spending on any programs (other than public education) if
necessary.
These restrictions could hurt the financial condition of the state and its
subdivisions, especially in times of slow economic growth.
The effect of TABOR on government finance has been very significant, but it is
impossible to predict how it will affect the bonds held by the Fund.
Short-term notes issued by Colorado in 1998 received the highest possible
short-term ratings by Standard & Poor's and Fitch, but because of their term and
specific payment source they should not be considered indicative of the state's
general financial condition.
MISSOURI RISKS
Generally
Defense-related businesses are a significant part of the Missouri economy, and
changes in the industry could hurt the state's economy. Risks specific to
Missouri include the following:
o The Boeing Company's McDonnell Defense Systems, based in St. Louis, is the
state's largest employer; and
o the number of people employed by McDonnell Defense Systems in Missouri has
dropped 30% over the last five years, and any further reductions in defense
spending or the shift of production operations out of Missouri could hurt
Missouri, and St. Louis in particular, more than other areas.
State and Local Government
Certain state and federal laws affect taxation and spending by the state of
Missouri and its local governments. For example:
o the state constitution limits the amount of taxes, licenses and fees that
Missouri and its local governments can impose without voter approval, even
if needed to pay debt obligations; and
o court-mandated funding for school desegregation in St. Louis and Kansas
City accounts for as much as 5% of the state's total spending.
The state's general obligations are rated Aaa by Moody's and AAA by Standard &
Poor's.
NEW YORK RISKS
Generally
For decades, New York's economy has trailed the rest of the nation. Both the
state and New York City have experienced long-term structural imbalances between
revenues and expenses, and have repeatedly relied substantially on non-recurring
measures to achieve budget balance. The pressures that contribute to budgetary
problems at both the state and local level include:
o the high combined state and local tax burden;
o a decline in manufacturing jobs, leading to above-average unemployment;
o sensitivity to the financial services industry; and
o dependence on federal aid.
State Government
The State government frequently has difficulty approving budgets on time. Budget
gaps of $1
16
<PAGE>
billion and $4 billion are projected for the next two years. The State's general
obligation bonds are rated A by Standard & Poor's and A2 by Moody's. There is
$37 billion of state-related debt outstanding.
New York City Government
Even though the City had budget surpluses each year from 1981, budget gaps of $2
billion are projected for each of the next three years. New York City faces
fiscal pressures from:
o aging public facilities that need repair or replacement;
o welfare and medical costs;
o expiring labor contracts; and
o a high and increasing debt burden.
The City requires substantial state aid, and its fiscal strength depends heavily
on the securities industry. Its general obligation bonds are rated A-by Standard
& Poor's and A3 by Moody's.
BOND QUALITY RISK
A reduction in a bond's rating may decrease its value and, indirectly, the value
of your investment in the Fund.
INSURANCE RELATED RISK
Some bonds are backed by insurance companies (as shown under Portfolios).
Insurance policies generally make payments only according to a bond's original
payment schedule and do not make early payments when a bond defaults or becomes
taxable. Although the federal government does not regulate the insurance
business, various state laws and federal initiatives and tax law changes could
significantly affect the insurance business. The claims-paying ability of the
insurance companies is generally rated A or better by Standard & Poor's or
another nationally recognized rating organization. The insurance company ratings
are subject to change at any time at the discretion of the rating agencies.
LITIGATION AND LEGISLATION RISKS
We do not know of any pending litigation that might have a material adverse
effect upon the Fund.
Future tax legislation could affect the value of the portfolio by:
o limiting real property taxes,
o reducing tax rates,
o imposing a flat or other form of tax, or
o exempting investment income from tax.
SELLING OR EXCHANGING UNITS
You can sell your units at any time for a price based on net asset value. Your
net asset value is calculated each business day by:
o adding the value of the bonds, net accrued interest, cash and any other
Fund assets;
o subtracting accrued but unpaid Fund expenses, unreimbursed Trustee
advances, cash held to buy back units or for distribution to investors and
any other Fund liabilities; and
o dividing the result by the number of outstanding units.
Your net asset value when you sell may be more or less than your cost because of
sales fees, market movements and changes in the portfolio.
If you sell your units before the final deferred sales fee installment, the
amount of any remaining installments will be deducted from your proceeds.
17
<PAGE>
SPONSORS' SECONDARY MARKET
While we are not obligated to do so, we will buy back units at net asset value
without any other fee or charge other than any remaining deferred sales charge.
We may resell the units to other buyers or to the Trustee. You should consult
your financial professional for current market prices to determine if other
broker-dealers or banks are offering higher prices.
We have maintained the secondary market continuously for over 25 years, but we
could discontinue it without prior notice for any business reason.
SELLING UNITS TO THE TRUSTEE
Regardless of whether we maintain a secondary market, you can sell your units to
the Trustee at any time by sending the Trustee a letter (with any outstanding
certificates if you hold Unit certificates). You must properly endorse your
certificates (or execute a written transfer instrument with signatures
guaranteed by an eligible institution). Sometimes, additional documents are
needed such as a trust document, certificate of corporate authority, certificate
of death or appointment as executor, administrator or guardian.
Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.
As long as we are maintaining a secondary market, the Trustee will sell your
units to us at a price based on net asset value. If there is no secondary
market, the Trustee may sell your units in the over-the-counter market for a
higher price, but it is not obligated to do so. In that case, you will receive
the net proceeds of the sale.
If the Fund does not have cash available to pay you for units you are selling,
the agent for the Sponsors will select bonds to be sold. Bonds will be selected
based on market and credit factors. These sales could be made at times when the
bonds would not otherwise be sold and may result in your receiving less than the
unit par value and also reduce the size and diversity of the Fund.
If you acquire 25% or more of the outstanding units of the Fund and you sell
units with a value exceeding $250,000, the Trustee may choose to pay you 'in
kind' by distributing bonds and cash with a total value equal to the price of
those units. The Trustee will try to distribute bonds in the portfolio pro rata,
but it reserves the right to distribute only one or a few bonds. The Trustee
will act as your agent in an in kind distribution and will either hold the bonds
for your account or sell them as you instruct. You must pay any transaction
costs as well as transfer and ongoing custodial fees on sales of bonds
distributed in kind.
There could be a delay in paying you for your units:
o if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
o if the SEC determines that trading on the New York Stock Exchange is
restricted or that an emergency exists making sale or evaluation of the
bonds not reasonably practicable; and
o for any other period permitted by SEC order.
18
<PAGE>
EXCHANGE OPTION
You may exchange units of certain Defined Asset Funds for units of this Fund at
a maximum exchange fee of 1.90%. You may exchange units of this Fund for units
of certain other Defined Asset Funds at a reduced sales fee if your investment
goals change. To exchange units, you should talk to your financial professional
about what funds are exchangeable, suitable and currently available.
Normally, an exchange is taxable and you must recognize any gain or loss on the
exchange. However, the IRS may try to disallow a loss if the portfolios of the
two funds are not materially different; you should consult your own tax adviser.
We may amend or terminate this exchange option at any time without notice.
HOW THE FUND WORKS
PRICING
The price of a unit includes interest accrued on the bonds, less expenses, from
the initial most recent Record Day up to, but not including, the settlement
date, which is usually three business days after the purchase date of the unit.
A portion of the price of a unit consists of cash so that the Trustee can
provide you with regular monthly income. When you sell your units you will
receive your share of this cash.
In addition, as with mutual funds, the Fund (and therefore the investors) pay
all or some of the costs of organizing the Fund including:
o cost of initial preparation of legal documents;
o federal and state registration fees;
o initial fees and expenses of the Trustee;
o initial audit; and
o legal expenses and other out-of-pocket expenses.
EVALUATIONS
An independent Evaluator values the bonds on each business day (excluding
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Presidents' Day, Martin Luther King, Jr. Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas).
Bond values are based on current bid or offer prices for the bonds or comparable
bonds. In the past, the difference between bid and offer prices of publicly
offered tax-exempt bonds has ranged from 0.5% of face amount on actively traded
issues to 3.5% on inactively traded issues; the difference has averaged between
1 and 2%.
INCOME
The Trustee credits interest to an Income Account and other receipts to a
Capital Account. The Trustee may establish a Reserve Account by withdrawing from
these accounts amounts it considers appropriate to pay any material liability.
These accounts do not bear interest.
EXPENSES
The Trustee is paid monthly. It also benefits when it holds cash for the Fund in
non-interest bearing accounts. The Trustee may also receive additional amounts:
o to reimburse the Trustee for the Fund's operating expenses;
19
<PAGE>
o for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
o costs of actions taken to protect the Fund and other legal fees and
expenses;
o expenses for keeping the Fund's registration statement current; and
o Fund termination expenses and any governmental charges.
The Sponsors are currently reimbursed up to 45 cents per $1,000 face amount
annually for providing portfolio supervisory, bookkeeping and administrative
services and for any other expenses properly chargeable to the Fund. Legal,
typesetting, electronic filing and regulatory filing fees and expenses
associated with updating the Portfolio's registration statement yearly are also
now chargeable to the Portfolio. While this fee may exceed the amount of these
costs and expenses attributable to this Fund, the total of these fees for all
Series of Defined Asset Funds will not exceed the aggregate amount attributable
to all of these Series for any calendar year. The Fund also pays the Evaluator's
fees.
The Trustee's, Sponsors' and Evaluator's fees may be adjusted for inflation
without investors' approval.
Any quarterly deferred sales fees you owe are paid with interest and principal
from certain bonds. If these amounts are not enough, the rest will be paid out
of distributitons to you from the Fund's Capital and Income Accounts.
The Sponsors will pay advertising and selling expenses at no charge to the Fund.
If Fund expenses exceed initial estimates, the Fund will owe the excess. The
Trustee has a lien on Fund assets to secure reimbursement of Fund expenses and
may sell bonds if cash is not available.
PORTFOLIO CHANGES
The Sponsors and Trustee are not liable for any default or defect in a bond; if
a contract to buy any bond.
Unlike a mutual fund, the portfolio is designed to remain intact and we may keep
bonds in the portfolio even if their credit quality declines or other adverse
financial circumstances occur. However, we may sell a bond in certain cases if
we believe that certain adverse credit conditions exist or if a bond becomes
taxable.
If we maintain a secondary market in units but are unable to sell the units that
we buy in the secondary market, we will redeem units, which will affect the size
and composition of the portfolio. Units offered in the secondary market may not
represent the same face amount of bonds that they did originally.
We decide whether or not to offer units for sale that we acquire in the
secondary market after reviewing:
o diversity of the portfolio;
o size of the Fund relative to its original size;
o ratio of Fund expenses to income;
o current and long-term returns;
o degree to which units may be selling at a premium over par; and
o cost of maintaining a current prospectus.
FUND TERMINATION
The Fund will terminate following the stated maturity or sale of the last bond
in the portfolio. The Fund may also terminate earlier with the consent of
investors holding 51% of the units or if total assets of the Fund have
20
<PAGE>
fallen below 40% of the face amount of bonds deposited. We will decide whether
to terminate the Fund early based on the same factors used in deciding whether
or not to offer units in the secondary market.
When the Fund is about to terminate you will receive a notice, and you will be
unable to sell your units after that time. On or shortly before termination, we
will sell any remaining bonds, and you will receive your final distribution. Any
bond that cannot be sold at a reasonable price may continue to be held by the
Trustee in a liquidating trust pending its final sale.
You will pay your share of the expenses associated with termination, including
brokerage costs in selling bonds. This may reduce the amount you receive as your
final distribution.
CERTIFICATES
Certificates for units are issued on request. You may transfer certificates by
complying with the requirements for redeeming certificates, described above. You
can replace lost or mutilated certificates by delivering satisfactory indemnity
and paying the associated costs.
TRUST INDENTURE
The Fund is a 'unit investment trust' governed by a Trust Indenture, a contract
among the Sponsors, the Trustee and the Evaluator, which sets forth their duties
and obligations and your rights. A copy of the Indenture is available to you on
request to the Trustee. The following summarizes certain provisions of the
Indenture.
The Sponsors and the Trustee may amend the Indenture without your consent:
o to cure ambiguities;
o to correct or supplement any defective or inconsistent provision;
o to make any amendment required by any governmental agency; or
o to make other changes determined not to be materially adverse to your best
interest (as determined by the Sponsors).
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in the Fund without your written consent.
The Trustee may resign by notifying the Sponsors. The Sponsors may remove the
Trustee without your consent if:
o it fails to perform its duties and the Sponsors determine that its
replacement is in your best interest; or
o it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsors and the Trustee without the consent of
investors. The resignation or removal of either becomes effective when a
successor accepts appointment. The Sponsors will try to appoint a successor
promptly; however, if no successor has accepted within 30 days after notice of
resignation, the resigning Trustee or Evaluator may petition a court to appoint
a successor.
Any Sponsor may resign as long as one Sponsor with a net worth of $2 million
remains and agrees to the resignation. The remaining Sponsors and the Trustee
may appoint a replacement. If there is only one
21
<PAGE>
Sponsor and it fails to perform its duties or becomes bankrupt the Trustee may:
o remove it and appoint a replacement Sponsor;
o liquidate the Fund; or
o continue to act as Trustee without a Sponsor.
Merrill Lynch, Pierce, Fenner & Smith Incorporated acts as agent for the
Sponsors.
The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsors and the Evaluator.
LEGAL OPINION
Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
counsel for the Sponsors, has given an opinion that the units are validly
issued. Special counsel located in the relevant states have given state and
local tax opinions.
AUDITORS
Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Statements of Condition included in this
prospectus.
SPONSORS
The Sponsors are:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051
SALOMON SMITH BARNEY INC. (an indirectly wholly-owned subsidiary of Citigroup
Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048
PRUDENTIAL SECURITIES INCORPORATED (an
indirect wholly-owned subsidiary of the
Prudential Insurance Company of America)
One New York Plaza
New York, NY 10292
PAINEWEBBER INCORPORATED (a wholly-owned subsidiary of PaineWebber Group Inc.)
1285 Avenue of the Americas,
New York, NY 10019
Each Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer each
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.
TRUSTEE
The Bank of New York, 101 Barclay Street, 17 W, New York, New York 10268, is the
Trustee.
It is supervised by the Federal Deposit Insurance Corporation, the Board of
Governors of the Federal Reserve System and New York State banking authorities.
UNDERWRITERS' AND SPONSORS' PROFITS
Underwriters receive sales charges when they sell units. The Sponsors also
realized a profit or loss on the initial date of deposit of the bonds. Any cash
made available by you to the Sponsors before the settlement date for those units
may be used in the Sponsors' businesses
22
<PAGE>
to the extent permitted by federal law and may benefit the Sponsors.
A Sponsor or Underwriter may realize profits or sustain losses on bonds in the
Fund which were acquired from underwriting syndicates of which it was a member.
In maintaining a secondary market, the Sponsors will also realize profits or
sustain losses in the amount of any difference between the prices at which they
buy units and the prices at which they resell or redeem them.
PUBLIC DISTRIBUTION
The Sponsors do not intend to qualify units for sale in any foreign countries.
This prospectus does not constitute an offer to sell units in any country where
units cannot lawfully be sold.
CODE OF ETHICS
Merrill Lynch, as agent for the Sponsors, has adopted a code of ethics requiring
preclearance and reporting of personal securities transactions by its employees
with access to information on portfolio transactions. The goal of the code is to
prevent fraud, deception or misconduct against the Fund and to provide
reasonable standards of conduct.
YEAR 2000 ISSUES
Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the 'Year
2000 Problem'). We do not expect that the computer system changes necessary to
prepare for the Year 2000 will cause any major operational difficulties for the
Fund. The Year 2000 Problem may adversely affect the issuers of the securities
contained in the Portfolio, but we cannot predict whether any impact will be
material to the Portfolio as a whole.
TAXES
The following summary describes some of the important income tax consequences of
holding units. It assumes that you are not a dealer, financial institution,
insurance company or other investor with special circumstances. You should
consult your own tax adviser about your particular circumstances.
At the date of issue of each bond, counsel for the issuer delivered an opinion
to the effect that interest on the bond is exempt from regular federal income
tax. However, interest may be subject to state and local taxes and federal
alternative minimum tax. Neither we nor our counsel have reviewed the issuance
of the bonds, related proceedings or the basis for the opinions of counsel for
the issuers. We cannot assure you that the issuer (or other users) have complied
or will comply with any requirements necessary for a bond to be tax-exempt. If
any of the bonds were determined not to be tax-exempt, you could be required to
pay income tax for current and prior years, and if the Fund were to sell the
bond, it might have to sell it at a substantial discount.
In the opinion of our counsel, under existing law:
GENERAL TREATMENT OF THE FUND AND YOUR INVESTMENT
The Fund will not be taxed as a corporation for federal income tax purposes, and
you will be considered to own directly your share of each bond in the Fund.
23
<PAGE>
INCOME OR LOSS UPON DISPOSITION
When all or part of your share of a bond is disposed of (for example, when the
Fund sells, exchanges or redeems a bond or when you sell or exchange your
units), you will generally recognize capital gain or loss. Your gain, however,
will generally be ordinary income to the extent of any accrued 'market
discount'. Generally you will have market discount to the extent that your basis
in a bond when you purchase a unit is less than its stated redemption price at
maturity (or, if it is an original issue discount bond, the issue price
increased by original issue discount that has accrued on the bond before your
purchase). You should consult your tax adviser in this regard.
If your net long-term capital gains exceed your net short-term capital losses,
the excess may be subject to tax at a lower rate than ordinary income. Any
capital gain from the Fund will be long-term if you are considered to have held
your investment on each bond for more than one year and short-term if you held
it for one year or less. If you are an individual and sell your units after
holding them for more than one year, you may be entitled to a 20% maximum
federal tax rate on any resulting gains. Consult your tax adviser in this
regard. Because the deductibility of capital losses is subject to limitations,
you may not be able to deduct all of your capital losses.
YOUR BASIS IN THE BONDS
Your aggregate basis in the bonds will be equal to the cost of your units,
including any sales charges and the organizational expenses you pay, adjusted to
reflect any accruals of 'original issue discount,' 'acquisition premium' and
'bond premium'. You should consult your tax adviser in this regard.
EXPENSES
If you are not a corporate investor, you will not be entitled to a deduction for
your share of fees and expenses of the Fund. Also, if you borrowed money in
order to purchase or carry your units, you will not be able to deduct the
interest on this borrowing for federal income tax purposes. The IRS may treat
your purchase of units as made with borrowed money even if the money is not
directly traceable to the purchase of units.
STATE AND LOCAL TAXES
Under the income tax laws of the State and City of New York, the Fund will not
be taxed as a corporation. If you are a New York taxpayer, your income from the
Fund will not be tax-exempt in New York except to the extent that the income is
earned on bonds that are tax-exempt for New York purposes. Depending on where
you live, your income from the Fund may be subject to state and local taxation.
You should consult your tax adviser in this regard.
COLORADO TAXES
In the opinion of Holme Roberts & Owen LLP, Denver, Colorado, special counsel on
Colorado tax matters:
1. The Colorado Trust will be treated as a trust and will not be taxable as a
corporation. Income of the Colorado Trust will be treated as income of its
investors in the same manner as for federal income tax purposes.
2. You will be treated as receiving your pro rata share of interest on each bond
in the
24
<PAGE>
Colorado Trust when it is received by the Colorado Trust. Interest on bonds in
the Colorado Trust that would be exempt from Colorado income tax if paid
directly to you will be treated as exempt from Colorado income tax when received
by the Colorado Trust and distributed to you.
3. You will be treated as recognizing gain or loss when the Colorado Trust
disposes of a bond or when you dispose of all or a portion of your units in the
Colorado Trust, whether by sale, exchange, redemption or payment at maturity, in
the same manner as for federal income tax purposes. The amount of such gain or
loss is determined by reference to the amount of such gain or loss for federal
income tax purposes.
4. Interest on indebtedness you incur or continue to purchase or carry units in
the Colorado Trust is not deductible for Colorado income tax purposes to the
extent it is not deductible for federal income tax purposes.
Under the income tax laws of Colorado, the Trust will not be taxed as a
corporation and the income of the Trust will be your income in proportion to
your ownership of units. Your interest income from bonds owned by the Trust is
exempt from Colorado income tax to the same extent as if it were paid directly
to you. If the Trust disposes of bonds, you will have a gain or loss in
proportion to your ownership of units in the Trust. If you borrow to purchase
units, you will probably not be able to deduct the interest you pay. You should
consult your tax adviser regarding these matters.
MISSOURI TAXES
In the opinion of Bryan Cave LLP, Kansas City, Missouri, special counsel on
Missouri tax matters:
So long as the Fund is not taxed as a corporation for federal income tax
purposes it will not be taxed as a corporation under the income tax laws of the
State of Missouri. If you are a Missouri income taxpayer, your income from the
Fund will not be tax-exempt in Missouri unless, and only to the extent that,
your share of the interest income of the Fund is derived from bonds the interest
on which is exempt from taxation for Missouri income tax law purposes. Depending
on where you live, your income from the Fund may be subject to other state and
local taxation. You should consult your tax adviser in this regard.
SUPPLEMENTAL INFORMATION
You can receive at no cost supplemental information about the Fund by calling
the Trustee. The supplemental information includes more detailed risk disclosure
about the types of bonds that may be in the Fund's portfolios, general risk
disclosure concerning any insurance securing certain bonds, and general
information about the structure and operation of the Fund. The supplemental
information is also available from the SEC.
25
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO, MISSOURI AND NEW YORK TRUSTS)
DEFINED ASSET FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders
of Municipal Investment Trust Fund,
Multistate Series - 308 (Colorado, Missouri and New York Trusts)
Defined Asset Funds:
We have audited the accompanying statements of condition of Municipal
Investment Trust Fund, Multistate Series - 308 (Colorado, Missouri
and New York Trusts) Defined Asset Funds, including the portfolios,
as of March 31, 1999 and the related statements of operations and of
changes in net assets for the year ended March 31, 1999 and the
period April 4, 1997 to March 31, 1998. These financial statements
are the responsibility of the Trustee. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Securities owned at March
31, 1999, as shown in such portfolios, were confirmed to us by The
Bank of New York, the Trustee. An audit also includes assessing the
accounting principles used and significant estimates made by the
Trustee, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Municipal
Investment Trust Fund, Multistate Series - 308 (Colorado, Missouri
and New York Trusts) Defined Asset Funds at March 31, 1999 and the
results of their operations and changes in their net assets for the
above-stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
June 4, 1999
D - 1
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO TRUST),
DEFINED ASSET FUNDS
STATEMENT OF CONDITION
AS OF MARCH 31, 1999
<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $3,081,400)(Note 1)...................... $3,300,401
Accrued interest receivable...................... 49,470
Accrued interest on segregated bonds............. 1,171
Deferred organization costs (Note 6)............. 1,970
_____________
Total trust property................. 3,353,012
LESS LIABILITIES:
Advance from Trustee............................. $ 9,059
Accrued expenses................................. 1,741
Deferred sales charge (Note 5)................... 18,362 29,162
_____________ _____________
NET ASSETS, REPRESENTED BY:
3,079 units of fractional undivided
interest outstanding (Note 3).................. 3,311,854
Undistributed net investment income.............. 11,996
_____________
$3,323,850
=============
UNIT VALUE ($3,323,850/3,079 units)................ $1,079.52
=============
</TABLE>
See Notes to Financial Statements.
D - 2
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO TRUST),
DEFINED ASSET FUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 4,
1997
Year Ended to
March 31, March 31,
1999 1998
___________________________
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................... $180,555 $184,221
Interest income on segregated bonds....... 5,309 7,143
Trustee's fees and expenses............... (4,302) (5,831)
Sponsors' fees............................ (1,494) (1,506)
Organizational expenses................... (656) (656)
___________________________
Net investment income..................... 179,412 183,371
___________________________
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Realized gain on securities
sold or redeemed........................ 13,362
Unrealized appreciation of investments.... 25,092 193,910
___________________________
Net realized and unrealized gain on
investments............................. 38,454 193,910
___________________________
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $217,866 $377,281
===========================
</TABLE>
See Notes to Financial Statements.
D - 3
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO TRUST),
DEFINED ASSET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 4,
1997
Year Ended to
March 31, March 31,
1999 1998
__________________________
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 179,412 $ 183,371
Realized gain on securities
sold or redeemed.............................. 13,362
Unrealized appreciation of investments.......... 25,092 193,910
__________________________
Net increase in net assets resulting
from operations............................... 217,866 377,281
__________________________
INCOME DISTRIBUTIONS TO HOLDERS (Note 2).......... (172,756) (165,150)
DEFERRED SALES CHARGE (Note 5).................... (53,036) (36,922)
CAPITAL SHARE TRANSACTIONS - Redemptions of 203
units........................................... (215,960)
__________________________
NET INCREASE (DECREASE) IN NET ASSETS............. (223,886) 175,209
NET ASSETS AT BEGINNING OF PERIOD................. 3,547,736 3,372,527
__________________________
NET ASSETS AT END OF PERIOD....................... $3,323,850 $3,547,736
==========================
PER UNIT:
Income distributions during period.............. $53.83 $50.32
==========================
Net asset value at end of period................ $1,079.52 $1,080.97
==========================
TRUST UNITS OUTSTANDING AT END OF PERIOD.......... 3,079 3,282
==========================
</TABLE>
See Notes to Financial Statements.
D - 4
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO TRUST),
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as
a Unit Investment Trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator
based on bid side evaluations for the securities, except that
value on April 4, 1997 was based upon offer side evaluations
at April 2, 1997, the day prior to the Date of Deposit. Cost
of securities at April 4, 1997 was also based on such offer
side evaluations.
(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.
(c) Interest income is recorded as earned.
2. DISTRIBUTIONS
A distribution of net investment income is made to Holders each
month. Receipts other than interest, after deductions for
redemptions and applicable expenses, are also distributed
peridically.
3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 3,079 units at Date of Deposit.............. $3,163,927
Redemptions of units - net cost of 203 units
redeemed less redemption amounts.................. (6,930)
Realized gain on securities sold or redeemed........ 13,362
Interest income on segregated bonds................. 12,452
Deferred sales charge (Note 5)...................... (89,958)
Unrealized appreciation of investments.............. 219,001
______________
Net capital applicable to Holders................... $3,311,854
==============
</TABLE>
4. INCOME TAXES
As of March 31, 1999, unrealized appreciation of investments, based
on cost for Federal income tax purposes, aggregated $219,001, all of
which related to appreciated securities. The cost of investment
securities for Federal income tax purposes was $3,081,400 at
March 31, 1999.
D - 5
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO TRUST),
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
5. DEFERRED SALES CHARGE
The sales charges are being paid for with the interest received
and by periodic sales of these bonds. A deferred sales charge
of $ 3.75 per unit is charged on a quarterly basis, and paid to the
sponsors annually by the Trustee on behalf of the Holders, up to an
aggregate of $ 45.00 per unit over the first three years of the life
of the Fund. Should a Holder redeem units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales
charge will be charged.
6. DEFERRED ORGANIZATIONAL COSTS
Organizational costs have been deferred and are being amortized over
five years.
D - 6
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308
DEFINED ASSET FUNDS
PORTFOLIO OF THE COLORADO TRUST
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
__________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
1 Stonegate Village Metro. Dist., AAA $ 460,000 5.600% 2025 12/01/06 $ 450,321 $ 482,614
Douglas Cnty., CO, G.O. Rfdg. and @ 101.000
Imp. Bonds, Ser 1996 A (FSA Ins.)
(5)
2 El Paso Cnty., CO, Sch. Dist. AAA 465,000 5.700 2015 12/15/06 465,000 492,881
Number 20 - Academy, Lease Purchase @ 100.000
Agreement certs. of Part. (AMBAC
Ins.) (5)
3 City and County of Denver, CO, AAA 450,000 5.500 2025 11/15/06 428,211 466,294
Dept. of Aviation, Arpt. Sys. Rev. @ 101.000
Bond,Ser. 1996 D (MBIA Ins.) (5)
4 City of Colorado Springs, CO, AAA 410,000 6.000 2024 12/15/05 416,425 444,596
Hosp. Rev. and Rfdg. Bonds, Ser. @ 102.000
1995 (MBIA Ins.) (5)
5 City of Colorado Springs, CO, AAA 500,000 5.750 2023 11/15/06 500,000 530,385
Util. Sys. Rev. Bonds, Ser. 1996 A @ 100.000
(MBIA Ins) (5)
6 City of Fort Collins, CO, Poll. A+ 500,000 6.000 2031 09/01/06 507,705 539,265
Ctl. Rfdg. Rev. Bonds (Anheuser- @ 101.000
Busch Proj.) Ser. 1996
7 Commonwealth of Puerto Rico, G.O. A 50,000 5.500 2000 None 51,263 51,334
Pub. Imp. Bonds, Ser. 1992 (AMBAC
Ins.) (5) (6)
8 Puerto Rico Hwy. and Trans. Auth., A 250,000 5.000 2036 07/01/16 217,430 247,893
Hwy. Rev. Bonds, Ser.Y @ 100.000
</TABLE>
D - 7
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308
DEFINED ASSET FUNDS
PORTFOLIO OF THE COLORADO TRUST
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
__________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
9 Puerto Rico Pub. Bldgs. Auth., Govt. AAA $ 45,000 4.300% 1999 None $ 45,045 $ 45,139
Facs. Rev. Bonds, Ser. A (AMBAC
Ins.) (5) (6)
______________ ______________ _____________
TOTAL $3,130,000 $3,081,400 $3,300,401
============== ============== =============
</TABLE>
See Notes to Portfolios on Pages D - 23 and D - 24.
D - 8
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (MISSOURI INSURED TRUST),
DEFINED ASSET FUNDS
STATEMENT OF CONDITION
AS OF MARCH 31, 1999
<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $2,600,320)(Note 1)...................... $2,792,791
Accrued interest receivable...................... 34,076
Accrued interest on segregated bonds............. 1,395
Deferred organization costs (Note 6)............. 1,968
_____________
Total trust property................. 2,830,230
LESS LIABILITIES:
Advance from Trustee............................. $ 2,266
Accrued expenses................................. 1,681
Deferred sales charge (Note 5)................... 43,546 47,493
_____________ _____________
NET ASSETS, REPRESENTED BY:
2,635 units of fractional undivided
interest outstanding (Note 3).................. 2,772,525
Undistributed net investment income.............. 10,212
_____________
$2,782,737
=============
UNIT VALUE ($2,782,737/2,635 units)................ $1,056.07
=============
</TABLE>
See Notes to Financial Statements.
D - 9
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (MISSOURI INSURED TRUST),
DEFINED ASSET FUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 4,
1997
Year Ended to
March 31, March 31,
1999 1998
___________________________
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................... $141,677 $160,779
Interest income on segregated bonds....... 5,646 7,227
Trustee's fees and expenses............... (3,032) (6,540)
Sponsors' fees............................ (1,239) (1,428)
Organizational expenses................... (656) (656)
___________________________
Net investment income..................... 142,396 159,382
___________________________
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain (loss) on securities
sold or redeemed........................ (551) 23,302
Unrealized appreciation of investments.... 27,119 165,352
___________________________
Net realized and unrealized gain on
investments............................. 26,568 188,654
___________________________
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $168,964 $348,036
===========================
</TABLE>
See Notes to Financial Statements.
D - 10
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (MISSOURI INSURED TRUST),
DEFINED ASSET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 4,
1997
Year Ended to
March 31, March 31,
1999 1998
__________________________
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 142,396 $ 159,382
Realized gain (loss) on securities
sold or redeemed.............................. (551) 23,302
Unrealized appreciation of investments.......... 27,119 165,352
__________________________
Net increase in net assets resulting
from operations............................... 168,964 348,036
__________________________
INCOME DISTRIBUTIONS TO HOLDERS (Note 2).......... (134,358) (142,821)
DEFERRED SALES CHARGE (Note 5).................... (39,225) (58,969)
CAPITAL SHARE TRANSACTIONS - Redemptions of
645 units....................................... (646,831)
__________________________
NET DECREASE IN NET ASSETS........................ (4,619) (500,585)
NET ASSETS AT BEGINNING OF PERIOD................. 2,787,356 3,287,941
__________________________
NET ASSETS AT END OF PERIOD....................... $2,782,737 $2,787,356
==========================
PER UNIT:
Income distributions during period.............. $50.99 $47.83
==========================
Net asset value at end of period................ $1,056.07 $1,057.82
==========================
TRUST UNITS OUTSTANDING AT END OF PERIOD.......... 2,635 2,635
==========================
</TABLE>
See Notes to Financial Statements.
D - 11
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (MISSOURI INSURED TRUST),
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as
a Unit Investment Trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator
based on bid side evaluations for the securities, except that
value on April 4, 1997 was based upon offer side evaluations
at April 2, 1997 the day prior to the Date of Deposit. Cost
of securities at April 4, 1997, was also based on such offer
side evaluations.
(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.
(c) Interest income is recorded as earned.
2. DISTRIBUTIONS
A distribution of net investment income is made to Holders each
month. Receipts other than interest, after deductions for
redemptions and applicable expenses, are also distributed
periodically.
3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 2,635 units at Date of Deposit.............. $2,641,379
Redemptions of units - net cost of 645 units
redeemed less redemption amounts.................. 1,245
Realized gain on securities sold or redeemed........ 22,751
Interest income on segregated bonds................. 12,873
Deferred sales charge (Note 5)...................... (98,194)
Net unrealized appreciation of investments.......... 192,471
______________
Net capital applicable to Holders................... $2,772,525
==============
</TABLE>
4. INCOME TAXES
As of March 31, 1999, net unrealized appreciation of investments, based
on cost for Federal income tax purposes, aggregated $192,471 of which
$193,060 related to appreciated securities and $589 related to
depreciated securities. The cost of investment securities for Federal
income tax purposes was $2,600,320 at March 31, 1999.
D - 12
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (MISSOURI INSURED TRUST),
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
5. DEFERRED SALES CHARGE
The sales charges are being paid for with the interest received
and by periodic sales of these bonds. A deferred sales charge
of $3.75 per unit is charged on a quarterly basis, and paid to the
sponsors annually by the Trustee on behalf of the Holders, up to an
aggregate of $45.00 per unit over the first three years of the life
of the Fund. Should a Holder redeem units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales
charge will be charged.
6. DEFERRED ORGANIZATIONAL COSTS
Organizational costs have been deferred and are being amortized over
five years.
D - 13
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308
DEFINED ASSET FUNDS
PORTFOLIO OF THE MISSOURI TRUST (INSURED)
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities(4) Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
_____________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
1 Health and Educl. Facs. Auth. of AAA $ 500,000 5.375% 2026 11/15/06 $ 470,060 $ 507,285
the State of Missouri, Hlth. Facs. @ 102.000
Rev. Bonds(St. Luke's/Shawnee
Mission Hlth. Sys., Inc.), Ser.
1996 B (MBIA Ins.)
2 Regional Conv. & Sports Complex AAA 455,000 5.300 2020 08/15/07 428,824 463,904
Auth., MO, Conv. & Sports Fac. @ 100.000
Proj. & Rfdg. bonds, Ser. 1997 C
(AMBAC Ins.)
3 Kansas City Mun. Asst. Corp., AAA 285,000 5.375 2016 04/15/06 274,315 294,995
Corp., MO, Leasehold Rfdg. Rev. @ 101.000
Bonds, Ser. 1996 A (MBIA Ins.) (H.
Roe Bartle Conv. Ctr. Proj.)
4 The City of St. Louis, MO, Pkg. AAA 245,000 5.375 2021 12/15/06 232,936 251,787
Rev. Rfdg. Bonds, Ser. 1996 (MBIA @ 102.000
Ins.)
5 St. Louis Mun. Fin. Corp., MO, AAA 420,000 6.000 2019 02/15/06 428,362 455,759
City Justice Ctr. Leasehold Rev. @ 102.000
Imp. Bonds, Ser. 1996A (AMBAC Ins)
6 St. Louis Mun. Fin. Corp., MO, AAA 500,000 5.500 2022 02/15/06 483,530 519,040
Forest Park Leasehold Rev. Imp. @ 101.000
Bonds, Ser. 1997 (Financial
Guaranty Ins.)
7 City of Sikeston, MO, Elec. Sys. AAA 190,000 5.000 2022 06/01/06 169,995 188,186
Rev. Rfdg. Bonds, Ser. 1996 (MBIA @ 101.000
Ins.)
8 Puerto Rico Elec. Pwr. Auth., Pwr. AAA 50,000 6.000 2000 None 52,238 51,649
Rev. Rfdg. Bonds, Ser. W (MBIA Ins.)
(6)
</TABLE>
D - 14
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308
DEFINED ASSET FUNDS
PORTFOLIO OF THE MISSOURI TRUST (INSURED)
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities(4) Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
_____________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
9 Puerto Rico Pub. Bldgs. Auth., Govt. AAA $ 60,000 4.300% 1999 None $ 60,060 $ 60,186
Facs. Rev. Bonds, Ser. A (AMBAC
Ins.) (6)
______________ ______________ ______________
TOTAL $2,705,000 $2,600,320 $2,792,791
============== ============== ==============
</TABLE>
See Notes to Portfolios on Pages D - 23 and D - 24.
D - 15
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (NEW YORK INSURED TRUST),
DEFINED ASSET FUNDS
STATEMENT OF CONDITION
AS OF MARCH 31, 1999
<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $3,065,711)(Note 1)...................... $3,349,504
Accrued interest receivable...................... 39,735
Accrued interest on segregated bonds............. 1,388
Deferred organization costs (Note 6)............. 2,422
_____________
Total trust property................. 3,393,049
LESS LIABILITIES:
Advance from Trustee............................. 96
Accrued expenses................................. 1,752
Deferred sales charge (Note 5)................... 34,244 36,092
_____________ _____________
NET ASSETS, REPRESENTED BY:
3,162 units of fractional undivided
interest outstanding (Note 3).................. 3,345,099
Undistributed net investment income.............. 11,858
_____________
$3,356,957
=============
UNIT VALUE ($3,356,957/3,162 units)................ $1,061.66
=============
</TABLE>
See Notes to Financial Statements.
D - 16
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (NEW YORK INSURED TRUST),
DEFINED ASSET FUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 4,
1997
Year Ended to
March 31, March 31,
1999 1998
___________________________
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................... $173,023 $209,042
Interest income on segregated bonds....... 6,059 7,543
Trustee's fees and expenses............... (4,335) (6,276)
Sponsors' fees............................ (1,578) (1,794)
Organizational expenses................... (808) (808)
___________________________
Net investment income..................... 172,361 207,707
___________________________
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Realized gain on securities sold
or redeemed............................. 7,172 42,662
Unrealized appreciation of investments.... 37,042 246,751
___________________________
Net realized and unrealized gain on
investments............................. 44,214 289,413
___________________________
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $216,575 $497,120
===========================
</TABLE>
See Notes to Financial Statements.
D - 17
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (NEW YORK INSURED TRUST),
DEFINED ASSET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 4,
1997
Year Ended to
March 31, March 31,
1999 1998
__________________________
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 172,361 $ 207,707
Realized gain on securities sold
or redeemed................................... 7,172 42,662
Unrealized appreciation of investments.......... 37,042 246,751
__________________________
Net increase in net assets resulting
from operations............................... 216,575 497,120
__________________________
INCOME DISTRIBUTIONS TO HOLDERS (Note 2).......... (164,812) (188,072)
DEFERRED SALES CHARGE (Note 5).................... (50,670) (71,753)
CAPITAL SHARE TRANSACTIONS - Redemptions of 96
and 780 units, respectively..................... (99,037) (797,030)
__________________________
NET DECREASE IN NET ASSETS........................ (97,944) (559,735)
NET ASSETS AT BEGINNING OF PERIOD................. 3,454,901 4,014,636
__________________________
NET ASSETS AT END OF PERIOD....................... $3,356,957 $3,454,901
==========================
PER UNIT:
Income distributions during period.............. $51.22 $48.61
==========================
Net asset value at end of period................ $1,061.66 $1,060.44
==========================
TRUST UNITS OUTSTANDING AT END OF PERIOD.......... 3,162 3,258
==========================
</TABLE>
See Notes to Financial Statements.
D - 18
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (NEW YORK INSURED TRUST),
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as
a Unit Investment Trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator
based on bid side evaluations for the securities, except that
value on April 4, 1997 was based upon offer side evaluations
at April 2, 1997 the day prior to the Date of Deposit. Cost
of securities at April 4, 1997 was also based on such offer
side evaluations.
(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.
(c) Interest income is recorded as earned.
2. DISTRIBUTIONS
A distribution of net investment income is made to Holders each
month. Receipts other than interest, after deductions for
redemptions and applicable expenses, are also distributed
periodically.
3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 3,162 units at Date of Deposit.............. $3,143,704
Redemptions of units - net cost of 876 units
redeemed less redemption amounts.................. (23,411)
Realized gain on securities sold or redeemed........ 49,834
Interest income on segregated bonds................. 13,602
Deferred sales charge (Note 5)...................... (122,423)
Net unrealized appreciation of investments.......... 283,793
______________
Net capital applicable to Holders................... $3,345,099
==============
</TABLE>
4. INCOME TAXES
As of March 31, 1999, net unrealized appreciation of investments, based
on cost for Federal income tax purposes, aggregated $283,793 of which
$284,103 related to appreciated securities and $310 related to
depreciated securities. The cost of investment securities for Federal
income tax purposes was $3,065,711 at March 31, 1999.
D - 19
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (NEW YORK INSURED TRUST),
DEFINED ASSET FUNDS
NOTES TO FINANCIAL STATEMENTS
5. DEFERRED SALES CHARGE
The sales charges are being paid for with the interest received
and by periodic sales of these bonds. A deferred sales charge
of $3.75 per unit is charged on a quarterly basis, and paid to the
sponsors annually by the Trustee on behalf of the Holders, up to an
aggregate of $45.00 per unit over the first three years of the life
of the Fund. Should a Holder redeem units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales
charge will be charged.
6. DEFERRED ORGANIZATIONAL COSTS
Organizational costs have been deferred and are being amortized over
five years.
D - 20
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308
DEFINED ASSET FUNDS
PORTFOLIO OF THE NEW YORK TRUST (INSURED)
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities(4) Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
_____________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
1 Dormitory Auth. of the State of New AAA $ 60,000 4.500% 1999 None $ 60,529 $ 60,219
York, Ithaca Coll., Ins. Rev. Bonds,
Ser. 1997 (AMBAC Ins.) (6)
2 Dormitory Auth. of the State of New AAA 60,000 4.750 2000 None 60,529 61,084
York, Ithaca Coll., Ins. Rev. Bonds,
Ser 1997 (AMBAC Ins) (6)
3 Dormitory Auth. of the State of AAA 425,000 5.500 2024 07/01/06 404,812 444,070
New York. City Univ. Sys., Consol. @ 102.000
Third Gen. Resolution Rev. Bonds.
1996 Ser 1 (MBIA Ins.)
4 Dormitory Auth. of the State of AAA 600,000 5.400 2023 05/15/04 560,244 614,916
New York, State Univ. Educl. Facs. @ 102.000
Rev. Bonds, Ser. 1993C (Financial
Guaranty Ins.)
5 New York State Energy Research and AAA 400,000 5.500 2021 01/01/06 384,592 417,168
Dev. Auth. (Brooklyn Union Gas Co. @ 102.000
Proj.), Gas Facs. Bonds, Ser. 1996
(MBIA Ins.)
6 New York State Med. Care Facs. AAA 600,000 5.375 2025 02/15/04 557,124 611,862
Fin. Agy., Hosp. Ins. Mtge. Rev. @ 102.000
Bonds, Rfdg. Ser. 1994 A (MBIA
Ins.)
7 New York State Thruway Auth., Gen. AAA 145,000 6.000 2025(7) 01/01/05 146,581 161,984
Rev. Bonds, Ser. C (Financial @ 102.000
Guaranty Ins.)
8 New York City, NY, Mun. Wtr. Fin. AAA 360,000 5.500 2023 06/15/04 343,181 372,729
Auth., Wtr. and Swr. Sys. Rev. @ 101.500
Bonds, Fixed Rate Fiscal 1994 Ser.
F ( MBIA Ins).
</TABLE>
D - 21
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308
DEFINED ASSET FUNDS
PORTFOLIO OF THE NEW YORK TRUST (INSURED)
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities(4) Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
_____________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
9 New York State Med. Care Facs. AAA $ 600,000 5.250% 2023 02/15/04 $ 548,119 $ 605,472
Fin. Agy., Mental Hlth. Svcs. Fac. @ 102.000
Imp. Rev. Bonds, Ser 1994 A
(Financial Guaranty Ins.)
______________ ______________ ____________
TOTAL $3,250,000 $3,065,711 $3,349,504
============== ============== ============
</TABLE>
See Notes to Portfolios on Pages D - 23 and D - 24 .
D - 22
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO, MISSOURI AND NEW YORK TRUSTS)
DEFINED ASSET FUNDS
NOTES TO PORTFOLIOS
AS OF MARCH 31, 1999
(1) The ratings of the bonds are by Standard & Poor's Ratings
Group, or by Moody's Investors Service, Inc. if followed by
"(m)", or by Fitch Investors Service, Inc. if followed by
"(f)"; "NR" indicates that this bond is not currently rated by
any of the above-mentioned rating services. These ratings have
been furnished by the Evaluator but not confirmed with
the rating agencies.
(2) See Notes to Financial Statements.
(3) Optional redemption provisions, which may be exercised in whole
or in part, are initially at prices of par plus a premium, then
subsequently at prices declining to par. Certain securities may
provide for redemption at par prior or in addition to any
optional or mandatory redemption dates or maturity, for
example, through the operation of a maintenance and replacement
fund, if proceeds are not able to be used as contemplated, the
project is condemned or sold or the project is destroyed and
insurance proceeds are used to redeem the securities. Many of
the securities are also subject to mandatory sinking fund
redemption commencing on dates which may be prior to the date
on which securities may be optionally redeemed. Sinking fund
redemptions are at par and redeem only part of the issue. Some
of the securities have mandatory sinking funds which contain
optional provisions permitting the issuer to increase the
principal amount of securities called on a mandatory redemption
date. The sinking fund redemptions with optional provisions
may, and optional refunding redemptions generally will, occur
at times when the redeemed securities have an offering side
evaluation which represents a premium over par. To the extent
that the securities were acquired at a price higher than the
redemption price, this will represent a loss of capital when
compared with the Public Offering Price of the Units when
acquired. Distributions will generally be reduced by the amount
of the income which would otherwise have been paid with respect
to redeemed securities and there will be distributed to Holders
any principal amount and premium received on such redemption
after satisfying any redemption requests for Units received by
the Fund. The estimated current return may be affected by
redemptions.
(4) All Securities are insured either on an individual basis or by
portfolio insurance, by a municipal bond insurance company
which has been assigned "AAA" claims paying ability by
Standard & Poor's. Accordingly, Standard & Poor's has assigned
"AAA" ratings to the Securities. Securities covered by
portfolio insurance are rated "AAA" only as long as they
remain in this Trust.
D - 23
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 308 (COLORADO, MISSOURI AND NEW YORK TRUSTS)
DEFINED ASSET FUNDS
NOTES TO PORTFOLIOS
AS OF MARCH 31, 1999
(5) Insured by the indicated municipal bond insurance company.
(6) It is anticipated that interest and principal received from
these bonds will be applied to the payment of the Trust's
deferred sales charges.
(7) Bonds with aggregate face amount of $145,000 for the New
York Trust have been pre-refunded and is expected to be
called for redemption on the optional redemption provision
date shown.
D - 24
<PAGE>
D - 9
D - 17
<PAGE>
Defined
Asset FundsSM
HAVE QUESTIONS ? MUNICIPAL INVESTMENT TRUST FUND
Request the most MULTISTATE SERIES--308
recent free Information (A Unit Investment Trust)
Supplement that gives more ---------------------------------------
details about the Fund, This Prospectus does not contain
by calling: complete information about the
The Bank of New York investment company filed with the
1-800-221-7771 Securities and Exchange Commission in
Washington, D.C. under the:
o Securities Act of 1933 (file no.
333-21531) and
o Investment Company Act of 1940 (file
no. 811-1777).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
When units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a
future series, but some of the
information in this Prospectus will be
changed for that series.
Units of any future series may not be
sold nor may offers to buy be accepted
until that series has become effective
with the Securities and Exchange
Commission. No units can be sold in any
State where a sale would be illegal.
11542--6/99
