File No. 333-48255
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
POST-EFFECTIVE
AMENDMENT NO. 2
TO
FORM S-6
For Registration Under the Securities Act of 1933 of Securities
of Unit Investment Trusts Registered on Form N-8B-2
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
FUNDAMENTAL VALUE TRUST SERIES
INSURANCE GROWTH TRUST SERIES
INTERNET GROWTH TRUST, SERIES 4
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
MEDIAL GROWTH TRUST SERIES
(Exact Name of Trust)
NIKE SECURITIES L.P.
(Exact Name of Depositor)
1001 Warrenville Road
Lisle, Illinois 60532
(Complete address of Depositor's principal executive offices)
NIKE SECURITIES L.P. CHAPMAN AND CUTLER
Attn: James A. Bowen Attn: Eric F. Fess
1001 Warrenville Road 111 West Monroe Street
Lisle, Illinois 60532 Chicago, Illinois 60603
(Name and complete address of agents for service)
It is proposed that this filing will become effective (check
appropriate box)
: : immediately upon filing pursuant to paragraph (b)
: x : July 31, 2000
: : 60 days after filing pursuant to paragraph (a)
: : on (date) pursuant to paragraph (a) of rule (485 or 486)
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
1,330,728 UNITS
PROSPECTUS
Part One
Dated July 26, 2000
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Communications Growth Trust, Series 2 (the "Trust") is a unit investment
trust consisting of a portfolio containing common stocks issued by
communication companies. At June 16, 2000, each Unit represented a
1/1,330,728 undivided interest in the principal and net income of the Trust
(see "The Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per Unit is equal to the aggregate value of the
Securities in the Portfolio of the Trust, plus or minus cash, if any, in the
Income and Capital Accounts of the Trust divided by the number of Units
outstanding, plus a sales charge of 3.5% of the Public Offering Price (3.627%
of the net amount invested) excluding income and principal cash. Effective on
each April 30 the sales charge will be reduced by 1/2 of 1% to a minimum sales
charge of 3.0%. At June 16, 2000, the Public Offering Price per Unit was
$24.579 (see "Public Offering" in Part Two). The minimum purchase is $1,000
($500 for Individual Retirement Accounts or other retirement plans).
Please retain all parts of this Prospectus for future reference.
______________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
______________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
SUMMARY OF ESSENTIAL INFORMATION AS OF JUNE 16, 2000
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 1,330,728
Fractional Undivided Interest in the Trust per Unit 1/1,330,728
Public Offering Price:
Aggregate Value of Securities in the Portfolio $31,554,589
Aggregate Value of Securities per Unit $23.712
Income and Principal cash in the Portfolio $8,927
Income and Principal cash per Unit $.007
Sales Charge 3.627% (3.5% of Public Offering Price,
excluding income and principal cash) $.860
Public Offering Price per Unit $24.579
Redemption Price and Sponsor's Repurchase Price per
Unit ($.860 less than the Public Offering Price
per Unit) $23.719
</TABLE>
Date Trust Established April 15, 1998
Mandatory Termination Date April 15, 2003
Evaluator's Annual Fee: $.0030 per Unit outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to Maximum of $.0035 per
an affiliate of the Sponsor Unit outstanding annually
Bookkeeping and administrative expenses Maximum of $.0010 per
payable to the Sponsor Unit outstanding annually
Annual amortization of organization
and offering costs $3,374 annually
Trustee's Annual Fee: $.0096 per Unit outstanding.
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $.01 per Unit. Notwithstanding,
distributions of funds in the Capital Account, if any, will be made in
December of each year.
Income Distribution Record Date: Fifteenth day of each June and December.
Income Distribution Date: The last day of each June and December.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon redemption or upon termination of the Trust. See "Rights
of Unit Holders - How are Income and Capital Distributed?" in Part Two.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of FT 250,
Communications Growth Trust, Series 2
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of FT 250, Communications Growth Trust, Series 2 as
of March 31, 2000, and the related statements of operations and changes in net
assets for the year then ended and for the period from the Initial Date of
Deposit, April 15, 1998, to March 31, 1999. These financial statements are
the responsibility of the Trust's Sponsor. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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. Our procedures included confirmation of securities owned as of
March 31, 2000, by correspondence with the Trustee. An audit also includes
assessing the accounting principles used and significant estimates made by the
Sponsor, 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 FT 250, Communications Growth
Trust, Series 2 at March 31, 2000, and the results of its operations and
changes in its net assets for the year then ended and for the period from the
Initial Date of Deposit, April 15, 1998, to March 31, 1999, in conformity with
accounting principles generally accepted in the United States.
ERNST & YOUNG LLP
Chicago, Illinois
July 9, 2000
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at market value (cost, $13,276,266)
(Note 1) $32,721,077
Dividends receivable 20,535
Cash 24,454
Unamortized deferred organization and offering costs 10,249
Receivable from investment transactions 55,908
___________
32,832,223
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 6,688
Unit redemptions payable 139,252
__________
145,940
__________
Net assets, applicable to 1,429,026 outstanding
units of fractional undivided interest:
Cost of Trust assets (Note 1) $13,276,266
Net unrealized appreciation (Note 2) 19,444,811
Distributable funds 816,565
Less deferred sales charges paid (Note 3) (851,359)
___________
$32,686,283
===========
Net asset value per unit $22.873
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
PORTFOLIO - See notes to portfolio.
March 31, 2000
<TABLE>
<CAPTION>
Number of Market
shares Name of Issuer of Equity Securities value
<C> <S> <C>
Computer Networking
16,814 3COM Corporation $935,279
47,837 (1) Cisco Systems, Inc. 3,698,422
Communications Equipment
42,444 (2) ADC Telecommunications, Inc. 2,286,671
18,624 ADTRAN, Inc. 1,106,973
20,565 Aspect Telecommunications Corporation 762,201
39,038 (3) Lucent Technologies, Inc. 2,371,559
46,445 (2)(4) Nortel Networks Corporation (formerly
Northern Telecom Ltd.) 5,852,070
25,273 Pairgain Technologies, Inc. 472,302
16,223 (2) Tellabs, Inc. 1,021,789
Communications Services
12,434 ALLTEL Corporation 784,125
17,692 BellSouth Corporation 831,524
14,525 Cable & Wireless plc (ADR) 813,400
18,418 (5) Century Tel, Inc. (formerly Century
Telephone Enterprises, Inc.) 683,768
21,337 Compania de Telefonos de Chile S.A. (ADR) 485,417
16,329 Loral Space & Communications Ltd. 166,360
30,009 (6) SBC Communications, Inc. 1,260,378
12,723 (7) Telefonica de Espana SA (ADR) 949,454
18,477 (5) MCI WorldCom, Inc. 837,248
Wireless Communications
19,958 LM Ericsson AB (ADR) 1,872,320
18,713 (2) Nokia Oy AB (ADR) 4,065,399
26,356 (8) Vodafone Airtouch Plc (ADR) (formerly
Vodafone Group plc) 1,464,418
___________
Total investments $32,721,077
===========
</TABLE>
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
NOTES TO PORTFOLIO
March 31, 2000
(1) The number of shares reflects the effect of two two for one stock
splits.
(2) The number of shares reflects the effect of a two for one stock split.
(3) In June 1999, Ascend Communications, Inc. (Ascend), one of the Trust's
original holdings, was acquired by Lucent Technologies, Inc. (Lucent),
which was also one of the Trust's original holdings. Each shareholder
of Ascend received 1.65 shares of Lucent for each share of Ascend held.
Lucent had effected a two for one stock split prior to the acquisition.
(4) This equity security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
(5) The number of shares reflects the effect of a three for two stock split.
(6) In June 1999, Ameritech Corporation (Ameritech), one of the Trust's
original holdings, was acquired by SBC Communication, Inc. (SBC), which
was also one of the Trust's original holdings. Each shareholder of
Ameritech received 1.316 shares of SBC for each share of Ameritech held.
(7) The number of shares reflects the effect of two 2% stock dividends and a
three for one stock split.
(8) The number of shares reflects the effect of a five for one stock split.
See accompanying notes to financial statements.
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividends $118,090 138,439
Expenses:
Trustee's fees and related expenses (31,673) (19,066)
Evaluator's fees (4,606) (5,385)
Supervisory fees (5,813) (6,564)
Administrative fees (1,634) (1,875)
Amortization of organization and offering costs (3,374) (3,245)
_______________________
Total expenses (47,100) (36,135)
_______________________
Investment income - net 70,990 102,304
Net gain (loss) on investments:
Net realized gain (loss) 3,370,780 481,765
Change in net unrealized appreciation
or depreciation 14,184,399 5,260,412
_______________________
17,555,179 5,742,177
_______________________
Net increase in net assets resulting
from operations $17,626,169 5,844,481
=======================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Net increase in net assets resulting
from operations:
Investment income - net $70,990 102,304
Net realized gain (loss) on investments 3,370,780 481,765
Change in net unrealized appreciation
or depreciation on investments 14,184,399 5,260,412
_______________________
17,626,169 5,844,481
Units issued (2,417,432 units in 1999,
net of deferred sales charges of $846,101) - 22,696,400
Units redeemed (523,146 and 480,283 units in
2000 and 1999, respectively) (8,418,609) (5,100,150)
Distributions to unit holders:
Investment income - net (66,461) (39,014)
Principal from investment transactions - -
_______________________
(66,461) (39,014)
_______________________
Total increase (decrease) in net assets 9,141,099 23,401,717
Net assets:
At the beginning of the period
(representing 1,952,172 and 15,023 units
outstanding at March 31, 1999 and
April 15, 1998, respectively) 23,545,184 143,467
_______________________
At the end of the period (including
distributable funds applicable to Trust
units of $816,565 and $827,065 at
March 31, 2000 and 1999, respectively) $32,686,283 23,545,184
=======================
Trust units outstanding at the end of
the period 1,429,026 1,952,172
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities as
reported by First Trust Advisors L.P. (the Evaluator), an affiliate of the
Sponsor.
Dividend income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the equity securities is based on the market value of such securities
on the dates the securities were deposited in the Trust. The cost of
securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank, which
is based on $.0096 per annum per unit outstanding based on the largest
aggregate number of units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.0030 per unit outstanding.
The Trust also pays recurring financial reporting costs, an annual supervisory
fee payable to an affiliate of the Sponsor and an annual administrative fee
payable to the Sponsor.
Organization and offering costs -
The Trust has paid a portion of its organization and offering costs, including
costs of preparing the registration statement, the Trust indenture and other
closing documents, registering units with the Securities and Exchange
Commission and states, the initial audit of the Trust's portfolio, legal fees
and the initial fees and expenses of the Trustee. Such costs, totaling
$16,868, have been deferred and are being amortized over five years from the
Initial Date of Deposit.
<PAGE>
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at March 31, 2000 follows:
<TABLE>
<S> <C>
Unrealized appreciation $19,731,009
Unrealized depreciation (286,198)
___________
$19,444,811
===========
</TABLE>
3. Other information
Cost to investors -
The cost to initial investors of units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a deferred sales charge of $.35 per unit which was paid to the
Sponsor over a five-month period ending on March 19, 1999, plus an initial
sales charge equal to the difference between the deferred sales charge and the
total sales charge of 4.5% of the public offering price which is equivalent to
approximately 4.545% of the net amount invested, exclusive of the deferred
sales charge.
Distributions to unit holders -
Income distributions to unit holders are made monthly on the last day of June
and December to unit holders of record on the fifteenth day of June and
December. Capital distributions to unit holders, if any, are made on the last
day of each month to unit holders of record on the fifteenth day of such month
if the amount available for distribution equals at least $.01 per unit.
Notwithstanding, capital distributions, if any, will be made in December of
each year.
<PAGE>
Selected data per unit of the Trust
outstanding throughout each period -
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividend income $.071 .076
Expenses (.028) (.020)
_____________________
Investment income - net .043 .056
Distributions to unit holders:
Investment income - net (.039) (.018)
Principal from investment transactions - -
Net gain (loss) on investments 10.808 2.473
_____________________
Total increase (decrease) in net assets 10.812 2.511
Net assets:
Beginning of the period 12.061 9.550
_____________________
End of the period $22.873 12.061
=====================
</TABLE>
Dividend income, Expenses and Investment income - net per unit have been
calculated based on the weighted-average number of units outstanding during
each period (1,660,991 and 1,819,137 units in 2000 and 1999, respectively).
Distributions to unit holders of Investment income - net per unit reflects the
Trust's actual distributions of approximately $.022 per unit to 1,797,289
units on June 30, 1999, approximately $.017 per unit to 1,575,584 units on
December 31, 1999 and approximately $.018 per unit to 2,220,471 units on
December 31, 1998. The Net gain (loss) on investments per unit during the
period ended March 31, 1999 includes the effects of changes arising from
issuance of 2,417,432 additional units during the period at net asset values
which differed from the net asset value per unit of the original 15,023 units
($9.550 per unit) on April 15, 1998.
<PAGE>
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
PART ONE
Must be Accompanied by Part Two and Part Three
___________________
P R O S P E C T U S
___________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
282,378 UNITS
PROSPECTUS
Part One
Dated July 26, 2000
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Fundamental Value Trust Series (the "Trust") is a unit investment trust
consisting of a portfolio containing common stocks issued by companies which
the Sponsor believed represented excellent value in the marketplace at the
Initial Date of Deposit. At June 16, 2000, each Unit represented a 1/282,378
undivided interest in the principal and net income of the Trust (see "The
Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per Unit is equal to the aggregate value of the
Securities in the Portfolio of the Trust, plus or minus cash, if any, in the
Income and Capital Accounts of the Trust divided by the number of Units
outstanding, plus a sales charge of 3.5% of the Public Offering Price (3.627%
of the net amount invested) excluding income and principal cash. Effective on
each April 30 the sales charge will be reduced by 1/2 of 1% to a minimum sales
charge of 3.0%. At June 16, 2000, the Public Offering Price per Unit was
$15.764 (see "Public Offering" in Part Two). The minimum purchase is $1,000
($500 for Individual Retirement Accounts or other retirement plans).
Please retain all parts of this Prospectus for future reference.
______________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
______________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
SUMMARY OF ESSENTIAL INFORMATION AS OF JUNE 16, 2000
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 282,378
Fractional Undivided Interest in the Trust per Unit 1/282,378
Public Offering Price:
Aggregate Value of Securities in the Portfolio $4,158,340
Aggregate Value of Securities per Unit $14.726
Income and Principal cash in the Portfolio $142,316
Income and Principal cash per Unit $.504
Sales Charge 3.627% (3.5% of Public Offering Price,
excluding income and principal cash) $.534
Public Offering Price per Unit $15.764
Redemption Price and Sponsor's Repurchase Price per
Unit ($.534 less than the Public Offering Price
per Unit) $15.230
</TABLE>
Date Trust Established April 15, 1998
Mandatory Termination Date April 15, 2003
Evaluator's Annual Fee: $.0030 per Unit outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to Maximum of $.0035 per
an affiliate of the Sponsor Unit outstanding annually
Bookkeeping and administrative expenses Maximum of $.0010 per
payable to the Sponsor Unit outstanding annually
Annual amortization of organization
and offering costs $2,884 annually
Trustee's Annual Fee: $.0096 per Unit outstanding.
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $.01 per Unit. Notwithstanding,
distributions of funds in the Capital Account, if any, will be made in
December of each year.
Income Distribution Record Date: Fifteenth day of each June and December.
Income Distribution Date: The last day of each June and December.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon redemption or upon termination of the Trust. See "Rights
of Unit Holders - How are Income and Capital Distributed?" in Part Two.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of FT 250,
Fundamental Value Trust Series
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of FT 250, Fundamental Value Trust Series as of March
31, 2000, and the related statements of operations and changes in net assets
for the year then ended and for the period from the Initial Date of Deposit,
April 15, 1998, to March 31, 1999. These financial statements are the
responsibility of the Trust's Sponsor. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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. Our procedures included confirmation of securities owned as of
March 31, 2000, by correspondence with the Trustee. An audit also includes
assessing the accounting principles used and significant estimates made by the
Sponsor, 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 FT 250, Fundamental Value
Trust Series at March 31, 2000, and the results of its operations and changes
in its net assets for the year then ended and for the period from the Initial
Date of Deposit, April 15, 1998, to March 31, 1999, in conformity with
accounting principles generally accepted in the United States.
ERNST & YOUNG LLP
Chicago, Illinois
July 9, 2000
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at market value (cost, $2,577,379)
(Note 1) $4,586,766
Dividends receivable 1,051
Unamortized deferred organization and offering costs 8,761
Cash 137,472
__________
4,734,050
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 1,614
__________
Net assets, applicable to 310,478 outstanding
units of fractional undivided interest:
Cost of Trust assets (Note 1) $2,577,379
Net unrealized appreciation (Note 2) 2,009,387
Distributable funds 481,419
Less deferred sales charges paid (Note 3) (335,749)
__________
$4,732,436
==========
Net asset value per unit $15.242
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
PORTFOLIO - See notes to portfolio.
March 31, 2000
<TABLE>
<CAPTION>
Number of Market
shares Name of Issuer of Equity Securities value
<C> <S> <C>
8,891 (1) ADC Telecommunications, Inc. $479,003
3,076 Abbott Laboratories 108,238
1,386 Anchor Gaming 52,582
6,632 (1) Applied Materials, Inc. 625,066
3,370 Becton, Dickinson and Company 88,675
3,197 Carnival Corporation (Class A) 79,327
6,529 Clayton Homes, Inc. 66,106
4,027 HEALTHSOUTH Corporation 22,402
3,110 IDEX Corporation 84,747
2,668 Lancaster Colony Corporation 81,542
2,104 Lear Corporation 59,175
4,222 Leggett & Platt, Inc. 90,773
3,987 MICROS Systems, Inc. 250,934
4,744 Nature's Sunshine Products, Inc. 37,952
4,233 Nautica Enterprises, Inc. 49,738
2,787 Network Associates, Inc. 89,881
3,122 T. Rowe Price Associates, Inc. 123,319
3,930 R&B Falcon Corporation 77,374
4,912 The Reynolds and Reynolds Company (Class A) 132,624
3,721 Roper Industries, Inc. 126,283
5,225 (2) Solectron Corporation 209,329
11,401 3) Sun Microsystems, Inc. 1,068,308
6,006((1) Teradyne, Inc. 493,993
2,810 Tidewater, Inc. 89,395
__________
Total investments $4,586,766
==========
</TABLE>
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
NOTES TO PORTFOLIO
March 31, 2000
(1) The number of shares reflects the effect of a two for one stock split.
(2) In December 1999, SMART Modular Technologies, Inc. (SMART Modular), one
of the Trust's original holdings, was acquired by Solectron Corporation
(Solectron). Each shareholder of SMART Modular received .51 shares of
Solectron for each share of SMART Modular held.
(3) The number of shares reflects the effect of two two for one stock
splits.
See accompanying notes to financial statements.
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividends $23,410 42,645
Expenses:
Trustee's fees and related expenses (13,702) (7,190)
Evaluator's fees (1,563) (2,053)
Supervisory fees (1,494) (2,639)
Administrative fees (427) (754)
Amortization of organization and offering costs (2,884) (2,773)
______________________
Total expenses (20,070) (15,409)
______________________
Investment income - net 3,340 27,236
Net gain (loss) on investments:
Net realized gain (loss) 585,586 (322,935)
Change in net unrealized appreciation
or depreciation 1,916,253 93,134
______________________
2,501,839 (229,801)
______________________
Net increase (decrease) in net assets resulting
from operations $2,505,179 (202,565)
======================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Net increase (decrease) in net assets resulting
from operations:
Investment income - net $3,340 27,236
Net realized gain (loss) on investments 585,586 (322,935)
Change in net unrealized appreciation
or depreciation on investments 1,916,253 93,134
______________________
2,505,179 (202,565)
Units issued (973,832 units in 1999, net of
deferred sales charges of $330,494) - 8,478,886
Units redeemed (332,641 and 345,726 units
in 2000 and 1999, respectively) (3,406,081) (2,773,970)
Distributions to unit holders:
Investment income - net (5,557) (6,834)
Principal from investment transactions - -
______________________
(5,557) (6,834)
______________________
Total increase (decrease) in net assets (906,459) 5,495,517
Net assets:
At the beginning of the period
(representing 643,119 and 15,013 units
outstanding at March 31, 1999 and
April 15, 1998, respectively) 5,638,895 143,378
______________________
At the end of the period (including
distributable funds applicable to Trust
units of $481,419 and $344,862 at
March 31, 2000 and 1999, respectively) $4,732,436 5,638,895
======================
Trust units outstanding at the end of
the period 310,478 643,119
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities as
reported by First Trust Advisors L.P. (the Evaluator), an affiliate of the
Sponsor.
Dividend income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the equity securities is based on the market value of such securities
on the dates the securities were deposited in the Trust. The cost of
securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank, which
is based on $.0096 per annum per unit outstanding based on the largest
aggregate number of units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.0030 per unit outstanding.
The Trust also pays recurring financial reporting costs, an annual supervisory
fee payable to an affiliate of the Sponsor and an annual administrative fee
payable to the Sponsor.
Organization and offering costs -
The Trust has paid a portion of its organization and offering costs, including
costs of preparing the registration statement, the Trust indenture and other
closing documents, registering units with the Securities and Exchange
Commission and states, the initial audit of the Trust's portfolio, legal fees
and the initial fees and expenses of the Trustee. Such costs, totaling
$14,418, have been deferred and are being amortized over five years from the
Initial Date of Deposit.
<PAGE>
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at March 31, 2000 follows:
<TABLE>
<S> <C>
Unrealized appreciation $2,509,032
Unrealized depreciation (499,645)
__________
$2,009,387
==========
</TABLE>
3. Other information
Cost to investors -
The cost to initial investors of units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a deferred sales charge of $.35 per unit which was paid to the
Sponsor over a five-month period ending on March 19, 1999, plus an initial
sales charge equal to the difference between the deferred sales charge and the
total sales charge of 4.5% of the public offering price which is equivalent to
approximately 4.545% of the net amount invested, exclusive of the deferred
sales charge.
Distributions to unit holders -
Income distributions to unit holders are made monthly on the last day of June
and December to unit holders of record on the fifteenth day of June and
December. Capital distributions to unit holders, if any, are made on the last
day of each month to unit holders of record on the fifteenth day of such month
if the amount available for distribution equals at least $.01 per unit.
Notwithstanding, capital distributions, if any, will be made in December of
each year.
<PAGE>
Selected data per unit of the Trust
outstanding throughout each period -
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividend income $.055 .066
Expenses (.047) (.024)
_____________________
Investment income - net .008 .042
Distributions to unit holders:
Investment income - net (.010) (.009)
Principal from investment transactions - -
Net gain (loss) on investments 6.476 (.815)
_____________________
Total increase (decrease) in
net assets 6.474 (.782)
Net assets:
Beginning of the period 8.768 9.550
_____________________
End of the period $15.242 8.768
=====================
</TABLE>
Dividend income, Expenses and Investment income - net per unit have been
calculated based on the weighted-average number of units outstanding during
each period (426,752 and 646,281 units in 2000 and 1999, respectively).
Distributions to unit holders of Investment income - net per unit reflects the
Trust's actual distributions of approximately $.010 per unit to 534,332 units
on June 30, 1999 and approximately $.009 per unit to 753,494 units on December
31, 1998. The Net gain (loss) on investments per unit during the period ended
March 31, 1999 includes the effects of changes arising from issuance of
973,832 additional units during the period at net asset values which differed
from the net asset value per unit of the original 15,013 units ($9.550 per
unit) on April 15, 1998.
<PAGE>
FT 250
FUNDAMENTAL VALUE TRUST SERIES
PART ONE
Must be Accompanied by Part Two and Part Three
___________________
P R O S P E C T U S
___________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
1,273,190 UNITS
PROSPECTUS
Part One
Dated July 26, 2000
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Insurance Growth Trust Series (the "Trust") is a unit investment trust
consisting of a portfolio containing common stocks issued by insurance
companies. At June 16, 2000, each Unit represented a 1/1,273,190 undivided
interest in the principal and net income of the Trust (see "The Trust" in Part
Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per Unit is equal to the aggregate value of the
Securities in the Portfolio of the Trust, plus or minus cash, if any, in the
Income and Capital Accounts of the Trust divided by the number of Units
outstanding, plus a sales charge of 3.5% of the Public Offering Price (3.627%
of the net amount invested) excluding income and principal cash. Effective on
each April 30 the sales charge will be reduced by 1/2 of 1% to a minimum sales
charge of 3.0%. At June 16, 2000, the Public Offering Price per Unit was
$8.315 (see "Public Offering" in Part Two). The minimum purchase is $1,000
($500 for Individual Retirement Accounts or other retirement plans).
Please retain all parts of this Prospectus for future reference.
______________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
______________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
SUMMARY OF ESSENTIAL INFORMATION AS OF JUNE 16, 2000
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 1,273,190
Fractional Undivided Interest in the Trust per Unit 1/1,273,190
Public Offering Price:
Aggregate Value of Securities in the Portfolio $10,215,789
Aggregate Value of Securities per Unit $8.024
Income and Principal cash (overdraft) in the Portfolio $300
Income and Principal cash (overdraft) per Unit $-
Sales Charge 3.627% (3.5% of Public Offering Price,
excluding income and principal cash) $.291
Public Offering Price per Unit $8.315
Redemption Price and Sponsor's Repurchase Price per
Unit ($.291 less than the Public Offering Price
per Unit) $8.024
</TABLE>
Date Trust Established April 15, 1998
Mandatory Termination Date April 15, 2003
Evaluator's Annual Fee: $.0030 per Unit outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to Maximum of $.0035 per
an affiliate of the Sponsor Unit outstanding annually
Bookkeeping and administrative expenses Maximum of $.0010 per
payable to the Sponsor Unit outstanding annually
Annual amortization of organization
and offering costs $6,061 annually
Trustee's Annual Fee: $.0096 per Unit outstanding.
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $.01 per Unit. Notwithstanding,
distributions of funds in the Capital Account, if any, will be made in
December of each year.
Income Distribution Record Date: Fifteenth day of each June and December.
Income Distribution Date: The last day of each June and December.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon redemption or upon termination of the Trust. See "Rights
of Unit Holders - How are Income and Capital Distributed?" in Part Two.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of FT 250,
Insurance Growth Trust Series
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of FT 250, Insurance Growth Trust Series as of March
31, 2000, and the related statements of operations and changes in net assets
for the year then ended and for the period from the Initial Date of Deposit,
April 15, 1998, to March 31, 1999. These financial statements are the
responsibility of the Trust's Sponsor. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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. Our procedures included confirmation of securities owned as of
March 31, 2000, by correspondence with the Trustee. An audit also includes
assessing the accounting principles used and significant estimates made by the
Sponsor, 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 FT 250, Insurance Growth
Trust Series at March 31, 2000, and the results of its operations and changes
in its net assets for the year then ended and for the period from the Initial
Date of Deposit, April 15, 1998, to March 31, 1999, in conformity with
accounting principles generally accepted in the United States.
ERNST & YOUNG LLP
Chicago, Illinois
July 9, 2000
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2000
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at market value (cost, $10,853,279)
(Note 1) $9,764,099
Dividends receivable 14,554
Cash 9,515
Unamortized deferred organization and offering costs 18,416
__________
9,806,584
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 6,457
Unit redemptions payable 2,772
__________
9,229
__________
Net assets, applicable to 1,310,304 outstanding
units of fractional undivided interest:
Cost of Trust assets (Note 1) $10,853,279
Net unrealized depreciation (Note 2) (1,089,180)
Distributable funds 1,059,544
Less deferred sales charges paid (Note 3) (1,026,288)
___________
$9,797,355
==========
Net asset value per unit $7.477
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
PORTFOLIO - See notes to portfolio.
March 31, 2000
<TABLE>
<CAPTION>
Number of Market
shares Name of Issuer of Equity Securities value
<C> <S> <C>
Financial Guarantee
10,499 (1) ACE Limited $240,165
14,919 Enhance Financial Services Group, Inc. 210,731
6,322 MBIA, Inc. 329,142
7,720 MGIC Investment Corporation 336,785
8,336 Radian Group, Inc. (formerly CMAC
Investment Corporation) 397,002
Life/Health
16,042 AFLAC, Inc. 730,922
11,260 Nationwide Financial Services, Inc. (Class A) 329,355
10,769 ReliaStar Financial Corporation 364,800
Multi-Line
7,703 (2) AEGON N.V. (American Registered Shares) 620,577
8,651 AXA-UAP (ADR) 620,173
10,806 Allstate Corporation 257,323
17,444 (3) American International Group, Inc. 1,910,118
7,443 CIGNA Corporation 563,807
11,316 (4) CitiGroup, Inc. 671,186
9,242 The Hartford Financial Services Group, Inc. 487,515
14,116 Horace Mann Educators Corporation 260,271
16,817 Old Republic International Corporation 231,234
Property/Casualty
6,388 The Chubb Corporation 431,592
11,269 Everest Re Group, Ltd. (formerly
Everest Reinsurance Holdings, Inc.) 367,651
17,435 Fremont General Corporation 103,529
3,947 Progressive Corporation 300,221
__________
Total investments $9,764,099
==========
</TABLE>
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
NOTES TO PORTFOLIO
March 31, 2000
(1) In January 2000, Capital Re Corporation (Capital Re), one of the Trust's
original holdings, was acquired by ACE Limited (ACE). Each shareholder
of Capital Re received .65 shares of ACE for each share of Capital Re
held.
(2) This Equity Security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
(3) The number of shares reflects the effect of a five for four stock split.
(4) The number of shares reflects the effect of a three for two stock split.
See accompanying notes to financial statements.
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividends $152,549 238,355
Expenses:
Trustee's fees and related expenses (36,538) (24,645)
Evaluator's fees (5,045) (7,577)
Supervisory fees (7,994) (9,103)
Administrative fees (1,857) (2,601)
Amortization of organization and
offering costs (6,061) (5,829)
______________________
Total expenses (57,495) (49,755)
______________________
Investment income - net 95,054 188,600
Net gain (loss) on investments:
Net realized gain (loss) (692,783) (559,873)
Change in net unrealized
appreciation or depreciation (380,391) (708,789)
______________________
(1,073,174) (1,268,662)
______________________
Net increase (decrease) in net assets
resulting from operations $(978,120) (1,080,062)
======================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Net increase (decrease) in net assets
resulting from operations:
Investment income - net $95,054 188,600
Net realized gain (loss) on investments (692,783) (559,873)
Change in net unrealized appreciation
or depreciation on investments (380,391) (708,789)
_______________________
(978,120) (1,080,062)
Units issued (2,917,275 units in 1999, net
of deferred sales charges of $1,021,024) - 27,621,933
Units redeemed (995,283 and 626,729 units
in 2000 and 1999, respectively) (8,168,806) (5,551,417)
Distributions to unit holders:
Investment income - net (107,537) (105,867)
Principal from investment transactions (1,976,411) -
_______________________
(2,083,948) (105,867)
_______________________
Total increase (decrease) in net assets (11,230,874) 20,884,587
Net assets:
At the beginning of the period
(representing 2,307,587 and 15,041 units
outstanding at March 31, 1999 and
April 15, 1998, respectively) 21,028,229 143,642
______________________
At the end of the period (including
distributable funds applicable to Trust
units of $1,059,544 and $2,465,733
at March 31, 2000 and 1999, respectively) $9,797,355 21,028,229
======================
Trust units outstanding at the end of
the period 1,310,304 2,305,587
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities as
reported by First Trust Advisors L.P. (the Evaluator), an affiliate of the
Sponsor.
Dividend income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the equity securities is based on the market value of such securities
on the dates the securities were deposited in the Trust. The cost of
securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank, which
is based on $.0096 per annum per unit outstanding based on the largest
aggregate number of units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.0030 per unit outstanding.
The Trust also pays recurring financial reporting costs, an annual supervisory
fee payable to an affiliate of the Sponsor and an annual administrative fee
payable to the Sponsor.
Organization and offering costs -
The Trust has paid a portion of its organization and offering costs, including
costs of preparing the registration statement, the Trust indenture and other
closing documents, registering units with the Securities and Exchange
Commission and states, the initial audit of the Trust's portfolio, legal fees
and the initial fees and expenses of the Trustee. Such costs, totaling
$30,306, have been deferred and are being amortized over five years from the
Initial Date of Deposit.
<PAGE>
2. Unrealized appreciation and depreciation
An analysis of net unrealized depreciation at March 31, 2000 follows:
<TABLE>
<S> <C>
Unrealized depreciation $(2,761,942)
Unrealized appreciation 1,672,762
___________
$(1,089,180)
===========
</TABLE>
3. Other information
Cost to investors -
The cost to initial investors of units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a deferred sales charge of $.35 per unit which was paid to the
Sponsor over a five-month period ending on March 19, 1999, plus an initial
sales charge equal to the difference between the deferred sales charge and the
total sales charge of 4.5% of the public offering price which is equivalent to
approximately 4.545% of the net amount invested, exclusive of the deferred
sales charge.
Distributions to unit holders -
Income distributions to unit holders are made monthly on the last day of June
and December to unit holders of record on the fifteenth day of June and
December. Capital distributions to unit holders, if any, are made on the last
day of each month to unit holders of record on the fifteenth day of such month
if the amount available for distribution equals at least $.01 per unit.
Notwithstanding, capital distributions, if any, will be made in December of
each year.
<PAGE>
Selected data per unit of the Trust
outstanding throughout each period -
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividend income $.088 .095
Expenses (.033) (.020)
____________________
Investment income - net .055 .075
Distributions to unit holders:
Investment income - net (.060) (.041)
Principal from investment transactions (1.125) -
Net gain (loss) on investments (.514) (.463)
____________________
Total increase (decrease) in net assets (1.644) (.429)
Net assets:
Beginning of the period 9.121 9.550
____________________
End of the period $7.477 9.121
====================
</TABLE>
Dividend income, Expenses and Investment income - net per unit have been
calculated based on the weighted-average number of units outstanding during
each period (1,741,099 and 2,521,290 units in 2000 and 1999, respectively).
Distributions to unit holders of Investment income - net per unit reflects the
Trust's actual distributions of approximately $.028 per unit to 2,033,447
units on June 30, 1999, approximately $.032 per unit to 1,580,559 units on
December 31, 1999, approximately $.010 per unit to 2,552,059 units on June 30,
1998 and approximately $.031 per unit to 2,599,100 units on December 31, 1998.
Distributions to unit holders of principal from investment transactions
reflects the Trust's distributions of approximately $.675 per unit to
2,033,447 units on June 30, 1999 and approximately $.450 per unit to 1,340,970
units on March 31, 2000. The Net gain (loss) on investments per unit during
the period ended March 31, 1999 includes the effects of changes arising from
issuance of 2,917,275 additional units during the period at net asset values
which differed from the net asset value per unit of the original 15,041 units
($9.550 per unit) on April 15, 1998.
<PAGE>
FT 250
INSURANCE GROWTH TRUST SERIES
PART ONE
Must be Accompanied by Part Two and Part Three
___________________
P R O S P E C T U S
___________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
3,616,348 UNITS
PROSPECTUS
Part One
Dated July 26, 2000
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Internet Growth Trust, Series 4 (the "Trust") is a unit investment trust
consisting of a portfolio containing common stocks issued by companies which
the Sponsor believed were ideally positioned to take advantage of the rapid
growth of the Internet as of the Initial Date of Deposit. At June 16, 2000,
each Unit represented a 1/3,616,348 undivided interest in the principal and
net income of the Trust (see "The Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per Unit is equal to the aggregate value of the
Securities in the Portfolio of the Trust, plus or minus cash, if any, in the
Income and Capital Accounts of the Trust divided by the number of Units
outstanding, plus a sales charge of 3.5% of the Public Offering Price (3.627%
of the net amount invested) excluding income and principal cash. Effective on
each April 30 the sales charge will be reduced by 1/2 of 1% to a minimum sales
charge of 3.0%. At June 16, 2000, the Public Offering Price per Unit was
$29.992 (see "Public Offering" in Part Two). The minimum purchase is $1,000
($500 for Individual Retirement Accounts or other retirement plans).
Please retain all parts of this Prospectus for future reference.
______________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
______________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
SUMMARY OF ESSENTIAL INFORMATION AS OF JUNE 16, 2000
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 3,616,348
Fractional Undivided Interest in the Trust per Unit 1/3,616,348
Public Offering Price:
Aggregate Value of Securities in the Portfolio $104,839,862
Aggregate Value of Securities per Unit $28.991
Income and Principal cash (overdraft) in the Portfolio $(179,962)
Income and Principal cash (overdraft) per Unit $(.050)
Sales Charge 3.627% (3.5% of Public Offering Price,
excluding income and principal cash) $1.051
Public Offering Price per Unit $29.992
Redemption Price and Sponsor's Repurchase Price per
Unit ($1.051 less than the Public Offering Price
per Unit) $28.941
</TABLE>
Date Trust Established April 15, 1998
Mandatory Termination Date April 15, 2003
Evaluator's Annual Fee: $.0030 per Unit outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to Maximum of $.0035 per
an affiliate of the Sponsor Unit outstanding annually
Bookkeeping and administrative expenses Maximum of $.0010 per
payable to the Sponsor Unit outstanding annually
Annual amortization of organization
and offering costs $9,318 annually
Trustee's Annual Fee: $.0096 per Unit outstanding.
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $.01 per Unit. Notwithstanding,
distributions of funds in the Capital Account, if any, will be made in
December of each year.
Income Distribution Record Date: Fifteenth day of each June and December.
Income Distribution Date: The last day of each June and December.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon redemption or upon termination of the Trust. See "Rights
of Unit Holders - How are Income and Capital Distributed?" in Part Two.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of FT 250,
Internet Growth Trust, Series 4
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of FT 250, Internet Growth Trust, Series 4 as of
March 31, 2000, and the related statements of operations and changes in net
assets for the year then ended and for the period from the Initial Date of
Deposit, April 15, 1998, to March 31, 1999. These financial statements are
the responsibility of the Trust's Sponsor. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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. Our procedures included confirmation of securities owned as of
March 31, 2000, by correspondence with the Trustee. An audit also includes
assessing the accounting principles used and significant estimates made by the
Sponsor, 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 FT 250, Internet Growth
Trust, Series 4 at March 31, 2000, and the results of its operations and
changes in its net assets for the year then ended and for the period from the
Initial Date of Deposit, April 15, 1998, to March 31, 1999, in conformity with
accounting principles generally accepted in the United States.
ERNST & YOUNG LLP
Chicago, Illinois
July 9, 2000
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at market value (cost, $36,370,293)
(Note 1) $113,145,760
Dividends receivable 6,320
Unamortized deferred organization and offering costs 28,312
Receivable from investment transactions 394,110
___________
113,574,502
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 17,999
Cash overdraft 297,662
Unit redemptions payable 299,387
__________
615,048
__________
Net assets, applicable to 3,824,546 outstanding
units of fractional undivided interest:
Cost of Trust assets (Note 1) $36,370,293
Net unrealized appreciation (Note 2) 76,775,467
Distributable funds 2,056,462
Less deferred sales charges paid (Note 3) (2,242,768)
___________
$112,959,454
============
Net asset value per unit $29.535
============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
PORTFOLIO - See notes to portfolio.
March 31, 2000
<TABLE>
<CAPTION>
Number of Market
shares Name of Issuer of Equity Securities value
<C> <S> <C>
Access/Information Providers
160,676 (1) America Online, Inc. $10,805,461
47,355 First Data Corporation 2,095,459
120,860 (1) Earthlink, Inc. (formerly MindSpring
Enterprises, Inc.) 2,349,277
49,750 (2) MCI WorldCom, Inc. 2,254,322
Computer Networking
46,580 3Com Corporation 2,591,012
61,183 (3) Lucent Technologies, Inc. 3,716,867
76,134 (4) Nortel Networks Corporation (formerly
Northern Telecom, Ltd.) 9,592,884
130,918 (5) Cisco Systems, Inc. 10,121,663
Computers
56,436 Compaq Computer Corporation 1,502,609
85,133 Dell Computer Corporation 4,591,904
62,697 (1) Gateway, Inc. (formerly Gateway 2000, Inc.) 3,322,941
24,420 Hewlett-Packard Company 3,237,188
148,000 (5) Sun Microsystems, Inc. 13,868,044
Semiconductors
38,380 (1) Intel Corporation 5,063,780
68,612 (6) Solectron Corporation 2,748,803
Software
34,354 BMC Software, Inc. 1,696,229
26,821 Computer Associates International, Inc. 1,587,481
71,725 (1) Check Point Software Technologies, Ltd. 12,269,494
33,540 Microsoft Corporation 3,563,625
36,193 Network Associates, Inc. 1,167,224
156,891 (1) Oracle Corporation 12,247,382
27,498 PeopleSoft, Inc. 549,960
60,749 Wind River Systems, Inc. 2,202,151
____________
Total investments $113,145,760
============
</TABLE>
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
NOTES TO PORTFOLIO
March 31, 2000
(1) The number of shares reflects the effect of a two for one stock split.
(2) The number of shares reflects the effect of a three for two stock split.
(3) In June 1999, Ascend Communications, Inc. (Ascend), one of the Trust's
original holdings, was acquired by Lucent Technologies, Inc. (Lucent).
Each shareholder of Ascend received 1.65 shares of Lucent for each share
of Ascend held.
(4) This equity security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
(5) The number of shares reflects the effect of two two for one stock
splits.
(6) In November 1999, SMART Modular Technologies, Inc. (SMART Modular), one
of the Trust's original holdings, was acquired by Solectron Corporation
(Solectron). Each shareholders of SMART Modular received .51 shares of
Solectron for each share of SMART Modular held.
See accompanying notes to financial statements.
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividends $50,667 44,555
Expenses:
Trustee's fees and related expenses (86,954) (49,741)
Evaluator's fees (12,480) (14,402)
Supervisory fees (15,575) (17,758)
Administrative fees (4,509) (5,074)
Amortization of organization and
offering costs (9,318) (8,961)
_______________________
Total expenses (128,836) (95,936)
_______________________
Investment income (loss) - net (78,169) (51,381)
Net gain (loss) on investments:
Net realized gain (loss) 13,467,676 5,104,094
Change in net unrealized appreciation
or depreciation 44,337,266 32,438,201
_______________________
57,804,942 37,542,295
_______________________
Net increase in net assets resulting
from operations $57,726,773 37,490,914
=======================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Net increase in net assets resulting
from operations:
Investment income (loss) - net $(78,169) (51,381)
Net realized gain (loss) on investments 13,467,676 5,104,094
Change in net unrealized appreciation
or depreciation on investments 44,337,266 32,438,201
________________________
57,726,773 37,490,914
Units issued (6,392,928 units in 1999, net
of deferred sales charges of $2,237,525) - 62,444,270
Units redeemed (1,307,950 and 1,275,413 units
in 2000 and 1999, respectively) (26,965,400)(17,880,171)
Distributions to unit holders:
Investment income - net - -
Principal from investment transactions - -
________________________
- -
________________________
Total increase (decrease) in net assets 30,761,373 82,055,013
Net assets:
At the beginning of the period
(representing 5,132,496 and 14,981 units
outstanding at March 31, 1999 and
April 15, 1998, respectively) 82,198,081 143,068
________________________
At the end of the period (including
distributable funds applicable to Trust
units of $2,056,462 and $2,222,184
at March 31, 2000 and 1999, respectively) $112,959,454 82,198,081
========================
Trust units outstanding at the end of
the period 3,824,546 5,132,496
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities as
reported by First Trust Advisors L.P. (the Evaluator), an affiliate of the
Sponsor.
Dividend income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the equity securities is based on the market value of such securities
on the dates the securities were deposited in the Trust. The cost of
securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank, which
is based on $.0096 per annum per unit outstanding based on the largest
aggregate number of units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.0030 per unit outstanding.
The Trust also pays recurring financial reporting costs, an annual supervisory
fee payable to an affiliate of the Sponsor and an annual administrative fee
payable to the Sponsor.
Organization and offering costs -
The Trust has paid a portion of its organization and offering costs, including
costs of preparing the registration statement, the Trust indenture and other
closing documents, registering units with the Securities and Exchange
Commission and states, the initial audit of the Trust's portfolio, legal fees
and the initial fees and expenses of the Trustee. Such costs, totaling
$46,591, have been deferred and are being amortized over five years from the
Initial Date of Deposit.
<PAGE>
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at March 31, 2000 follows:
<TABLE>
<S> <C>
Unrealized appreciation $78,046,482
Unrealized depreciation (1,271,015)
___________
$76,775,467
===========
</TABLE>
3. Other information
Cost to investors -
The cost to initial investors of units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a deferred sales charge of $.35 per unit which was paid to the
Sponsor over a five-month period ending on March 19, 1999, plus an initial
sales charge equal to the difference between the deferred sales charge and the
total sales charge of 4.5% of the public offering price which is equivalent to
approximately 4.545% of the net amount invested, exclusive of the deferred
sales charge.
Distributions to unit holders -
Income distributions to unit holders, if any, are made monthly on the last day
of June and December to unit holders of record on the fifteenth day of June
and December. Capital distributions to unit holders, if any, are made on the
last day of each month to unit holders of record on the fifteenth day of such
month if the amount available for distribution equals at least $.01 per unit.
Notwithstanding, capital distributions, if any, will be made in December of
each year.
<PAGE>
Selected data per unit of the Trust
outstanding throughout each period -
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividend income $.011 .009
Expenses (.029) (.019)
_____________________
Investment income (loss) - net (.018) (.010)
Distributions to unit holders:
Investment income - net - -
Principal from investment transactions - -
Net gain (loss) on investments 13.538 6.475
_____________________
Total increase (decrease)
in net assets 13.520 6.465
Net assets:
Beginning of the period 16.015 9.550
_____________________
End of the period $29.535 16.015
=====================
</TABLE>
Dividend income, Expenses and Investment income (loss) - net per unit have
been calculated based on the weighted-average number of units outstanding
during each period (4,450,021 and 4,894,279 units in 2000 and 1999,
respectively). The Net gain (loss) on investments per unit during the period
ended March 31, 1999, includes the effects of changes arising from issuance of
6,392,928 additional units during the period at net asset values which
differed from the net asset value per unit of the original 14,981 units
($9.550 per unit) on April 15, 1998.
<PAGE>
FT 250
INTERNET GROWTH TRUST, SERIES 4
PART ONE
Must be Accompanied by Part Two and Part Three
___________________
P R O S P E C T U S
___________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
525,716 UNITS
PROSPECTUS
Part One
Dated July 26, 2000
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Media & Entertainment Growth Trust, Series 2 (the "Trust") is a unit
investment trust consisting of a portfolio containing common stocks issued by
media & entertainment companies. At June 16, 2000, each Unit represented a
1/525,716 undivided interest in the principal and net income of the Trust (see
"The Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per Unit is equal to the aggregate value of the
Securities in the Portfolio of the Trust, plus or minus cash, if any, in the
Income and Capital Accounts of the Trust divided by the number of Units
outstanding, plus a sales charge of 3.5% of the Public Offering Price (3.627%
of the net amount invested) excluding income and principal cash. Effective on
each April 30 the sales charge will be reduced by 1/2 of 1% to a minimum sales
charge of 3.0%. At June 16, 2000, the Public Offering Price per Unit was
$14.839 (see "Public Offering" in Part Two). The minimum purchase is $1,000
($500 for Individual Retirement Accounts or other retirement plans).
Please retain all parts of this Prospectus for future reference.
______________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
______________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
SUMMARY OF ESSENTIAL INFORMATION AS OF JUNE 16, 2000
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 525,716
Fractional Undivided Interest in the Trust per Unit 1/525,716
Public Offering Price:
Aggregate Value of Securities in the Portfolio $7,338,242
Aggregate Value of Securities per Unit $13.959
Income and Principal cash (overdraft) in the Portfolio $196,742
Income and Principal cash (overdraft) per Unit $.374
Sales Charge 3.627% (3.5% of Public Offering Price,
excluding income and principal cash) $.506
Public Offering Price per Unit $14.839
Redemption Price and Sponsor's Repurchase Price per
Unit ($.506 less than the Public Offering Price
per Unit) $14.333
</TABLE>
Date Trust Established April 15, 1998
Mandatory Termination Date April 15, 2003
Evaluator's Annual Fee: $.0030 per Unit outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to Maximum of $.0035 per
an affiliate of the Sponsor Unit outstanding annually
Bookkeeping and administrative expenses Maximum of $.0010 per
payable to the Sponsor Unit outstanding annually
Annual amortization of organization
and offering costs $2,884 annually
Trustee's Annual Fee: $.0096 per Unit outstanding.
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $.01 per Unit. Notwithstanding,
distributions of funds in the Capital Account, if any, will be made in
December of each year.
Income Distribution Record Date: Fifteenth day of each June and December.
Income Distribution Date: The last day of each June and December.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon redemption or upon termination of the Trust. See "Rights
of Unit Holders - How are Income and Capital Distributed?" in Part Two.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of FT 250,
Media & Entertainment Growth Trust, Series 2
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of FT 250, Media & Entertainment Growth Trust, Series
2 as of March 31, 2000, and the related statements of operations and changes
in net assets for the year then ended and for the period from the Initial Date
of Deposit, April 15, 1998, to March 31, 1999. These financial statements are
the responsibility of the Trust's Sponsor. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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. Our procedures included confirmation of securities owned as of
March 31, 2000, by correspondence with the Trustee. An audit also includes
assessing the accounting principles used and significant estimates made by the
Sponsor, 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 FT 250, Media & Entertainment
Growth Trust, Series 2 at March 31, 2000, and the results of its operations
and changes in its net assets for the year then ended and for the period from
the Initial Date of Deposit, April 15, 1998, to March 31, 1999, in conformity
with accounting principles generally accepted in the United States.
ERNST & YOUNG LLP
Chicago, Illinois
July 9, 2000
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at market value (cost, $5,316,553)
(Note 1) $7,993,169
Dividends receivable 3,524
Unamortized deferred organization and offering costs 8,761
Cash 2,475
Receivable from investment transactions 7,351
__________
8,015,280
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 2,538
Unit redemptions payable 7,289
_________
9,827
_________
Net assets, applicable to 545,143 outstanding
units of fractional undivided interest:
Cost of Trust assets (Note 1) $5,316,553
Net unrealized appreciation (Note 2) 2,676,616
Distributable funds 239,521
Less deferred sales charges paid (Note 3) (227,237)
__________
$8,005,453
==========
Net asset value per unit $14.685
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
PORTFOLIO - See notes to portfolio.
March 31, 2000
<TABLE>
<CAPTION>
Number of Market
shares Name of Issuer of Equity Securities value
<C> <S> <C>
Advertising
6,698 (1) The Interpublic Group of Companies, Inc. $316,480
4,349 Omnicom Group, Inc. 406,362
Broadcasting
4,130 AMFM, Inc. (formerly Chancellor Media
Corporation) 256,576
9,332 The Ackerley Group, Inc. 141,147
11,716 (2) CBS Corporation 663,418
8,552 (3) Clear Channel Communications, Inc. 590,627
8,085 (1) Emmis Broadcasting Corporation (Class A) 375,953
5,720 Hearst-Argyle Television, Inc. 133,705
3,398 PanAmSat Corporation 166,716
6,990 Sinclair Broadcasting Group, Inc. (Class A) 62,477
Cable Television
12,046 (1) Comcast Corporation (Class A) 522,496
12,818 (1) Liberty Media Corporation 759,466
7,855 (4) AT&T Corporation 441,844
15,484 (1) USA Networks, Inc. 349,365
155 US West, Inc. 11,257
5,675 MediaOne Group, Inc. 459,675
Entertainment
5,509 The Walt Disney Company 227,935
7,345 (5) Imax Corporation 158,380
7,472 News Corporation Limited (ADR) 420,300
5,334 Time Warner, Inc. 533,400
7,521 (1) Viacom, Inc. (Class B) 396,733
Media
2,749 Gannett Company, Inc. 193,461
3,710 Knight Ridder 188,980
5,919 (1) Tribune Company 216,416
__________
Total investments $7,993,169
==========
</TABLE>
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
NOTES TO PORTFOLIO
March 31, 2000
(1) The number of shares reflects the effect of a two for one stock split.
(2) In November 1999, King World Productions, Inc. (King World), one of the
Trust's original holdings, was acquired by CBS Corporation (CBS), which
was also one of the Trust's original holdings. Each shareholder of King
World received .81 shares of CBS for each share of King World held.
(3) In May 1999, Jacor Communications, Inc. (Jacor), one of the Trust's
original holdings, was acquired by Clear Channel Communications, Inc.
(Clear Channel), which was also one of the Trust's original holdings.
Each shareholder of Jacor received 1.1573 shares of Clear Channel for
each share of Jacor held.
(4) The number of shares reflects the effect of a three for two stock split.
(5) This Equity Security represents the common stock of a foreign company
which trades directly on a United States securities exchange.
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividends $28,001 18,405
Expenses:
Trustee's fees and related expenses (13,072) (5,276)
Evaluator's fees (1,730) (1,563)
Supervisory fees (2,527) (1,915)
Administrative fees (593) (547)
Amortization of organization and offering costs (2,884) (2,773)
______________________
Total expenses (20,806) (12,074)
______________________
Investment income - net 7,195 6,331
Net gain (loss) on investments:
Net realized gain (loss) 632,660 45,223
Change in net unrealized appreciation
or depreciation 1,603,911 1,072,705
______________________
2,236,571 1,117,928
______________________
Net increase in net assets resulting
from operations $2,243,766 1,124,259
======================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Net increase in net assets resulting
from operations:
Investment income - net $7,195 6,331
Net realized gain (loss) on investments 632,660 45,223
Change in net unrealized appreciation
or depreciation on investments 1,603,911 1,072,705
______________________
2,243,766 1,124,259
Units issued (23,961 and 728,351 units
in 2000 and 1999, respectively,
net of deferred sales charges of
$221,983 in 1999) 273,613 7,059,706
Units redeemed (192,179 and 30,000 units
in 2000 and 1999, respectively) (2,505,346) (333,895)
Distributions to unit holders:
Investment income - net - -
Principal from investment transactions - -
______________________
- -
______________________
Total increase (decrease) in net assets 12,033 7,850,070
Net assets:
At the beginning of the period
(representing 713,361 and 15,010 units
outstanding at March 31, 1999 and
April 15, 1998, respectively) 7,993,420 143,350
______________________
At the end of the period (including
distributable funds applicable to Trust
units of $239,521 and $221,444 at
March 31, 2000 and 1999, respectively) $8,005,453 7,993,420
======================
Trust units outstanding at the end of
the period 545,143 713,361
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities as
reported by First Trust Advisors L.P. (the Evaluator), an affiliate of the
Sponsor.
Dividend income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the equity securities is based on the market value of such securities
on the dates the securities were deposited in the Trust. The cost of
securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank, which
is based on $.0096 per annum per unit outstanding based on the largest
aggregate number of units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.0030 per unit outstanding.
The Trust also pays recurring financial reporting costs, an annual supervisory
fee payable to an affiliate of the Sponsor and an annual administrative fee
payable to the Sponsor.
Organization and offering costs -
The Trust has paid a portion of its organization and offering costs, including
costs of preparing the registration statement, the Trust indenture and other
closing documents, registering units with the Securities and Exchange
Commission and states, the initial audit of the Trust's portfolio, legal fees
and the initial fees and expenses of the Trustee. Such costs, totaling
$14,418, have been deferred and are being amortized over five years from the
Initial Date of Deposit.
<PAGE>
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at March 31, 2000 follows:
<TABLE>
<S> <C>
Unrealized appreciation $2,938,790
Unrealized depreciation (262,174)
__________
$2,676,616
==========
</TABLE>
3. Other information
Cost to investors -
The cost to initial investors of units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a deferred sales charge of $.35 per unit which was paid to the
Sponsor over a five-month period ending on March 19, 1999, plus an initial
sales charge equal to the difference between the deferred sales charge and the
total sales charge of 4.5% of the public offering price which is equivalent to
approximately 4.545% of the net amount invested, exclusive of the deferred
sales charge.
Distributions to unit holders -
Income distributions to unit holders, if any, are made monthly on the last day
of June and December to unit holders of record on the fifteenth day of June
and December. Capital distributions to unit holders, if any, are made on the
last day of each month to unit holders of record on the fifteenth day of such
month if the amount available for distribution equals at least $.01 per unit.
Notwithstanding, capital distributions, if any, will be made in December of
each year.
<PAGE>
Selected data per unit of the Trust
outstanding throughout each period -
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividend income $.043 .034
Expenses (.032) (.022)
_____________________
Investment income - net .011 .012
Distributions to unit holders:
Investment income - net - -
Principal from investment transactions - -
Net gain (loss) on investments 3.469 1.643
_____________________
Total increase (decrease)
in net assets 3.480 1.655
Net assets:
Beginning of the period 11.205 9.550
_____________________
End of the period $14.685 11.205
=====================
</TABLE>
Dividend income, Expenses and Investment income - net per unit have been
calculated based on the weighted-average number of units outstanding during
each period (646,454 and 540,761 units in 2000 and 1999, respectively). The
Net gain (loss) on investments per unit during each period includes the
effects of changes arising from issuance of additional units during each
period at net asset values which differed from the net asset value per unit at
the beginning of the period.
<PAGE>
FT 250
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
PART ONE
Must be Accompanied by Part Two and Part Three
___________________
P R O S P E C T U S
___________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
1,106,418 UNITS
PROSPECTUS
Part One
Dated July 26, 2000
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Medical Growth Trust Series (the "Trust") is a unit investment trust
consisting of a portfolio containing common stocks issued by companies
involved in the medical industry. At June 16, 2000, each Unit represented a
1/1,106,418 undivided interest in the principal and net income of the Trust
(see "The Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per Unit is equal to the aggregate value of the
Securities in the Portfolio of the Trust, plus or minus cash, if any, in the
Income and Capital Accounts of the Trust divided by the number of Units
outstanding, plus a sales charge of 3.5% of the Public Offering Price (3.627%
of the net amount invested) excluding income and principal cash. Effective on
each April 30 the sales charge will be reduced by 1/2 of 1% to a minimum sales
charge of 3.0%. At June 16, 2000, the Public Offering Price per Unit was
$14.044 (see "Public Offering" in Part Two). The minimum purchase is $1,000
($500 for Individual Retirement Accounts or other retirement plans).
Please retain all parts of this Prospectus for future reference.
______________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
______________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
SUMMARY OF ESSENTIAL INFORMATION AS OF JUNE 16, 2000
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 1,106,418
Fractional Undivided Interest in the Trust per Unit 1/1,106,418
Public Offering Price:
Aggregate Value of Securities in the Portfolio $14,999,490
Aggregate Value of Securities per Unit $13.557
Income and Principal cash (overdraft) in the Portfolio $(5,076)
Income and Principal cash (overdraft) per Unit $(.005)
Sales Charge 3.627% (3.5% of Public Offering Price,
excluding income and principal cash) $.492
Public Offering Price per Unit $14.044
Redemption Price and Sponsor's Repurchase Price per
Unit ($.492 less than the Public Offering Price
per Unit) $13.552
</TABLE>
Date Trust Established April 15, 1998
Mandatory Termination Date April 15, 2003
Evaluator's Annual Fee: $.0030 per Unit outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to Maximum of $.0035 per
an affiliate of the Sponsor Unit outstanding annually
Bookkeeping and administrative expenses Maximum of $.0010 per
payable to the Sponsor Unit outstanding annually
Annual amortization of organization
and offering costs $2,884 annually
Trustee's Annual Fee: $.0096 per Unit outstanding.
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $.01 per Unit. Notwithstanding,
distributions of funds in the Capital Account, if any, will be made in
December of each year.
Income Distribution Record Date: Fifteenth day of each June and December.
Income Distribution Date: The last day of each June and December.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon redemption or upon termination of the Trust. See "Rights
of Unit Holders - How are Income and Capital Distributed?" in Part Two.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of FT 250,
Medical Growth Trust Series
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of FT 250, Medical Growth Trust Series as of March
31, 2000, and the related statements of operations and changes in net assets
for the year then ended and for the period from the Initial Date of Deposit,
April 15, 1998, to March 31, 1999. These financial statements are the
responsibility of the Trust's Sponsor. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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. Our procedures included confirmation of securities owned as of
March 31, 2000, by correspondence with the Trustee. An audit also includes
assessing the accounting principles used and significant estimates made by the
Sponsor, 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 FT 250, Medical Growth Trust
Series at March 31, 2000, and the results of its operations and changes in its
net assets for the year then ended and for the period from the Initial Date of
Deposit, April 15, 1998, to March 31, 1999, in conformity with accounting
principles generally accepted in the United States.
ERNST & YOUNG LLP
Chicago, Illinois
July 9, 2000
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at market value (cost, $10,695,575)
(Note 1) $14,684,945
Dividends receivable 3,759
Unamortized deferred organization and offering costs 8,761
Cash
13,772
Receivable from investment transactions 61,184
___________
14,772,421
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 5,528
Unit redemptions payable 127,581
__________
133,109
__________
Net assets, applicable to 1,158,846 outstanding
units of fractional undivided interest:
Cost of Trust assets (Note 1) $10,695,575
Net unrealized appreciation (Note 2) 3,989,370
Distributable funds 515,536
Less deferred sales charges paid (Note 3) (561,169)
___________
$14,639,312
===========
Net asset value per unit $12.633
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
PORTFOLIO - See notes to portfolio.
March 31, 2000
<TABLE>
<CAPTION>
Number of Market
shares Name of Issuer of Equity Securities value
<C> <S> <C>
Medical Devices
15,069 Biomet, Inc. $548,135
13,362 Boston Scientific Corporation 284,784
479 Clinichem Development, Inc. 5,509
8,046 (1) Kimberly-Clark Corporation 450,576
35,240 (2) Medtronic, Inc. 1,812,676
9,341 Stryker Corporation 651,535
14,043 Theragenics Corporation 187,825
Medical Products
12,798 Becton, Dickinson and Company 336,754
14,240 DENTSPLY International, Inc. 404,060
6,116 Johnson & Johnson 428,505
11,520 Life Technologies, Inc. 576,000
16,517 STERIS Corporation 169,299
15,480 Sybron International Corporation 448,920
Pharmaceuticals/Biotech
11,895 Abbott Laboratories 418,561
30,875 (2) Amgen, Inc. 1,894,953
19,258 (3) BioChem Pharma, Inc. 426,083
8,587 Bristol-Myers Squibb Company 495,899
19,090 Dura Pharmaceticals, Inc. 235,055
13,931 (4) Genzyme Corporation 698,291
1,540 Genzyme Molecular Oncology, Inc. 23,293
2,562 (4) Genzyne Surgical Products, Inc. 30,103
9,490 ICN Pharmaceuticals, Inc. 258,603
22,505 (2) IDEC Pharmaceuticals Corporation 2,211,116
30,267 (5) Jones Medical Industries, Inc. 919,360
15,351 Medicis Pharmaceutical Corporation 614,040
16,424 PAREXEL International Corporation 155,010
___________
Total investments $14,684,945
===========
</TABLE>
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
NOTES TO PORTFOLIO
March 31, 2000
(1) In June 1999, Ballard Medical Products (Ballard), one of the Trust's
original holdings, was acquired by Kimberly-Clark Corporation (Kimberly-
Clark). Each shareholder of Ballard received .4439 shares of Kimberly-
Clark for each share of Ballard held.
(2) The number of shares reflects the effect of a two for one stock split.
(3) This Equity Security represents the common stock of a foreign company
which trades directly on a United States security exchange.
(4) In September 1999, Genzyme Corporation (Genzyme), one of the Trust's
original holdings, spun off Genzyme Surgical Products, Inc. (Genzyme
Surgical). Each shareholder of Genzyme received .179 shares of Genzyme
Surgical for each share of Genzyme held.
(5) The number of shares reflects the effect of two three for two stock
splits.
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividends $61,036 54,479
Expenses:
Trustee's fees and related expenses (32,089) (13,287)
Evaluator's fees (3,976) (3,845)
Supervisory fees (5,839) (4,684)
Administrative fees (1,368) (1,338)
Amortization of organization and offering costs (2,884) (2,773)
______________________
Total expenses (46,156) (25,927)
______________________
Investment income - net 14,880 28,552
Net gain (loss) on investments:
Net realized gain (loss) 1,011,848 144,532
Change in net unrealized
appreciation or depreciation 2,215,704 1,773,666
______________________
3,227,552 1,918,198
______________________
Net increase in net assets
resulting from operations $3,242,432 1,946,750
======================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Net increase in net assets resulting
from operations:
Investment income - net $14,880 28,552
Net realized gain (loss) on investments 1,011,848 144,532
Change in net unrealized appreciation
or depreciation on investments 2,215,704 1,773,666
_______________________
3,242,432 1,946,750
Units issued (11,956 and 1,774,349 units
in 2000 and 1999, respectively, net
of deferred sales charges of $555,905
in 1999) 104,257 16,880,281
Units redeemed (622,500 and 20,000 units
in 2000 and 1999, respectively) (6,774,109) (220,980)
Distributions to unit holders:
Investment income - net (13,948) -
Principal from investment transactions - (669,013)
_______________________
(13,948) (669,013)
_______________________
Total increase (decrease) in net assets (3,441,368) 17,937,038
Net assets:
At the beginning of the period
(representing 1,769,390 and 15,041 units
outstanding at March 31, 1999 and
April 15, 1998, respectively) 18,080,680 143,642
_______________________
At the end of the period (including
distributable funds applicable to Trust
units of $515,536 and $565,482 at
March 31, 2000 and 1999, respectively) $14,639,312 18,080,680
=======================
Trust units outstanding at the end of
the period 1,158,846 1,769,390
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities as
reported by First Trust Advisors L.P. (the Evaluator), an affiliate of the
Sponsor.
Dividend income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the equity securities is based on the market value of such securities
on the dates the securities were deposited in the Trust. The cost of
securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank, which
is based on $.0096 per annum per unit outstanding based on the largest
aggregate number of units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.0030 per unit outstanding.
The Trust also pays recurring financial reporting costs, an annual supervisory
fee payable to an affiliate of the Sponsor and an annual administrative fee
payable to the Sponsor.
Organization and offering costs -
The Trust has paid a portion of its organization and offering costs, including
costs of preparing the registration statement, the Trust indenture and other
closing documents, registering units with the Securities and Exchange
Commission and states, the initial audit of the Trust's portfolio, legal fees
and the initial fees and expenses of the Trustee. Such costs, totaling
$14,418, have been deferred and are being amortized over five years from the
Initial Date of Deposit.
<PAGE>
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at March 31, 2000 follows:
<TABLE>
<S> <C>
Unrealized appreciation $5,532,259
Unrealized depreciation (1,542,889)
__________
$3,989,370
==========
</TABLE>
3. Other information
Cost to investors -
The cost to initial investors of units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a deferred sales charge of $.35 per unit which was paid to the
Sponsor over a five-month period ending on March 19, 1999, plus an initial
sales charge equal to the difference between the deferred sales charge and the
total sales charge of 4.5% of the public offering price which is equivalent to
approximately 4.545% of the net amount invested, exclusive of the deferred
sales charge.
Distributions to unit holders -
Income distributions to unit holders, if any, are made monthly on the last day
of June and December to unit holders of record on the fifteenth day of June
and December. Capital distributions to unit holders, if any, are made on the
last day of each month to unit holders of record on the fifteenth day of such
month if the amount available for distribution equals at least $.01 per unit.
Notwithstanding, capital distributions, if any, will be made in December of
each year.
<PAGE>
Selected data per unit of the Trust
outstanding throughout each period -
<TABLE>
<CAPTION>
Period from
the Initial
Date of
Deposit,
April 15,
Year ended 1998, to
March 31, March 31,
2000 1999
<S> <C> <C>
Dividend income $.041 .041
Expenses (.031) (.020)
_____________________
Investment income - net .010 .021
Distributions to unit holders:
Investment income - net (.008) -
Principal from investment transactions - (.446)
Net gain (loss) on investments 2.412 1.094
_____________________
Total increase (decrease) in net assets 2.414 .669
Net assets:
Beginning of the period 10.219 9.550
_____________________
End of the period $12.633 10.219
=====================
</TABLE>
Dividend income, Expenses and Investment income - net per unit have been
calculated based on the weighted-average number of units outstanding during
each period (1,488,374 and 1,332,312 units in 2000 and 1999, respectively).
Distributions to unit holders of Investment Income - net reflects the Trust's
actual distribution of approximately $.008 per unit to 1,680,537 units on June
30, 1999. Distributions to unit holders of principal from investment
transactions per unit reflects the Trust's actual distribution of
approximately $.446 per unit to 1,332,312 units on December 31, 1998. The Net
gain (loss) on investments per unit during each period includes the effects of
changes arising from issuance of additional units during each period at net
asset values which differed from the net asset value per unit at the beginning
of the period.
<PAGE>
FT 250
MEDICAL GROWTH TRUST SERIES
PART ONE
Must be Accompanied by Part Two and Part Three
___________________
P R O S P E C T U S
___________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
THE FIRST TRUST SPECIAL SITUATIONS TRUST
FT SERIES
PROSPECTUS NOTE: THIS PART TWO PROSPECTUS MAY
Part Two ONLY BE USED WITH PART ONE
Dated May 31, 2000 AND PART THREE
The FT Series (formerly known as The First Trust Special Situations
Trust) is a unit investment trust. The FT Series has many separate
series. The Part One which accompanies this Part Two describes one such
series of the FT Series. Each series of the FT Series consists of one or
more portfolios ("Trust(s)") which invest in one or more of the
following: common stock ("Equity Securities"), preferred stock
("Preferred Stocks"), trust preferred securities ("Trust Preferred
Securities"), real estate investment trusts ("REITs") and/or closed-end
funds ("Closed-End Funds"). See Part One and Part Three for a more
complete description of the portfolio for each Trust.
All Parts of the Prospectus Should be Retained for Future Reference.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED
OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
First Trust (registered trademark)
1-800-621-9533
Page 1
Table of Contents
The FT Series 3
Risk Factors 3
Public Offering 4
Distribution of Units 5
The Sponsor's Profits 6
The Secondary Market 6
How We Purchase Units 6
Expenses and Charges 6
Tax Status 7
Retirement Plans 9
Rights of Unit Holders 9
Income and Capital Distributions 10
Redeeming Your Units 11
Removing Securities from a Trust 12
Amending or Terminating the Indenture 13
Information on the Sponsor, Trustee and Evaluator 13
Other Information 14
Page 2
The FT Series
The FT Series Defined.
We, Nike Securities L.P. (the "Sponsor"), have created hundreds of
similar yet separate series of a unit investment trust which we have
named the FT Series or its predecessor, The First Trust Special
Situations Trust. See Part One for a description of the series and
Trusts for which this Part Two Prospectus relates.
Each Trust was created under the laws of the State of New York by a
Trust Agreement (the "Indenture") dated the Initial Date of Deposit.
This agreement, entered into among Nike Securities L.P., as Sponsor, The
Chase Manhattan Bank as Trustee and First Trust Advisors L.P. as
Portfolio Supervisor and Evaluator, governs the operation of the Trusts.
How We Created the Trusts.
On the Initial Date of Deposit for each Trust, we deposited a portfolio
or portfolios of one or more of following: Equity Securities, Preferred
Stocks, Trust Preferred Securities, Closed-End Funds and/or REITs,
(collectively, the "Securities") with the Trustee and in turn, the
Trustee delivered documents to us representing our ownership of the
Trusts in the form of units ("Units").
See "The Objective of the Trusts" in Part Three for each Trust for a
specific description of such Trust's objective.
We cannot guarantee that a Trust will keep its present size and
composition for any length of time. Since the prices of the Securities
will fluctuate daily, the ratio of Securities in the Trusts, on a market
value basis, will also change daily. Securities may periodically be sold
under certain circumstances, and the proceeds from these sales will be
used to meet Trust obligations or distributed to Unit holders, but will
not be reinvested. However, Securities will not be sold to take
advantage of market fluctuations or changes in anticipated rates of
appreciation or depreciation, or if they no longer meet the criteria by
which they were selected. You will not be able to dispose of or vote any
of the Securities in the Trusts. As the holder of the Securities, the
Trustee will vote all of the Securities and will do so based on our
instructions.
Neither we nor the Trustee will be liable for a failure in any of the
Securities.
Risk Factors
Price Volatility. The Trusts may invest in any of the securities set
forth in "The FT Series." The value of a Trust's Units will fluctuate
with changes in the value of these securities. The prices of securities
fluctuate for several reasons including, the type of security, changes
in investor's perceptions of the financial condition of an issuer or the
general condition of the relevant market, or when political or economic
events effecting the issuers occur. In addition, prices may be
particularly sensitive to rising interest rates, as the cost of capital
rises and borrowing costs increase. However, because preferred stock
dividends are fixed (though not guaranteed) and preferred stocks
typically have superior rights to common stocks in dividend
distributions and liquidation, they are generally less volatile than
common stocks.
Because the Trusts are not managed, the Trustee will not sell securities
in response to or in anticipation of market fluctuations, as is common
in managed investments. As with any investment, we cannot guarantee that
the performance of any Trust will be positive over any period of time,
or that you won't lose money. Units of the Trusts are not deposits of
any bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Certain of the Securities in certain of the Trusts may be issued by
companies with market capitalizations of less than $1 billion. The share
prices of these small-cap companies are often more volatile than those
of larger companies as a result of several factors common to many such
issuers, including limited trading volumes, products or financial
resources, management inexperience and less publicly available
information.
Dividends. There is no guarantee that the issuers of the Equity
Securities will declare dividends in the future or that if declared they
will either remain at current levels or increase over time. In addition,
there is no assurance that the issuers of the Preferred Stocks included
in a Trust will be able to pay dividends at their stated rate in the
future.
Trust Preferred Securities. Certain Trusts may contain trust preferred
securities. Trust preferred securities are limited-life preferred
securities typically issued by corporations, generally in the form of
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interest-bearing notes or preferred securities, or by an affiliated
business trust of a corporation, generally in the form of beneficial
interests in subordinated debentures or similarly structured securities.
Dividend payments of the trust preferred securities generally coincide
with interest payments on the underlying obligations. Trust preferred
securities generally have a yield advantage over traditional preferred
stocks, but unlike preferred stocks, distributions are treated as
interest rather than dividends for federal income tax purposes and
therefore, are not eligible for the dividends-received deduction. Trust
preferred securities are subject to unique risks which include the fact
that dividend payments will only be paid if interest payments on the
underlying obligations are made, which interest payments are dependent
on the financial condition of the issuer and may be deferred for up to
20 consecutive quarters, and that the underlying obligations, and thus
the trust preferred securities, may be prepaid after a stated call date
or as a result of certain tax or regulatory events.
Closed End Funds. Certain Trusts may contain common stocks issued by
closed-end investment companies. The closed-end investment companies in
turn invest in other securities. Shares of closed-end funds frequently
trade at a discount from their net asset value in the secondary market.
This risk is separate and distinct from the risk that the net asset
value of the closed-end fund shares may decrease. The amount of such
discount from net asset value is subject to change from time to time in
response to various factors.
Real Estate Investment Trusts. Certain Trusts may contain securities
issued by Real Estate Investment Trusts ("REITs"). REITs are financial
vehicles that pool investors' capital to purchase or finance real
estate. REITs may concentrate their investments in specific geographic
areas or in specific property types, i.e., hotels, shopping malls,
residential complexes and office buildings. The value of the REITs and
the ability of the REITs to distribute income may be adversely affected
by several factors, including rising interest rates, changes in the
national, state and local economic climate and real estate conditions,
perceptions of prospective tenants of the safety, convenience and
attractiveness of the properties, the ability of the owner to provide
adequate management, maintenance and insurance, the cost of complying
with the Americans with Disabilities Act, increased competition from new
properties, the impact of present or future environmental legislation
and compliance with environmental laws, changes in real estate taxes and
other operating expenses, adverse changes in governmental rules and
fiscal policies, adverse changes in zoning laws, and other factors
beyond the control of the issuers of the REITs.
Legislation/Litigation. From time to time, various legislative
initiatives are proposed in the United States and abroad which may have
a negative impact on certain of the companies represented in the Trusts.
In addition, litigation regarding any of the issuers of the Securities,
or of the industries represented by such issuers may negatively impact
the share prices of these Securities. We cannot predict what impact any
pending or proposed legislation or pending or threatened litigation will
have on the share prices of the Securities.
Foreign Stocks. Certain of the Securities in certain of the Trusts may
be issued by foreign companies, which makes the Trusts subject to more
risks than if they invested solely in domestic common stocks. These
Securities are either directly listed on a U.S. securities exchange or
are in the form of American Depositary Receipts ("ADRs") which are
listed on a U.S. securities exchange. Risks of foreign common stocks
include higher brokerage costs; different accounting standards;
expropriation, nationalization or other adverse political or economic
developments; currency devaluations, blockages or transfer restrictions;
restrictions on foreign investments and exchange of securities;
inadequate financial information; and lack of liquidity of certain
foreign markets.
Public Offering
The Public Offering Price.
You may buy Units at the Public Offering Price, the per Unit price of
which is comprised of the following:
- The aggregate underlying value of the Securities;
- The amount of any cash in the Income and Capital Accounts;
- Dividends receivable on Securities; and
- The total sales charge.
The price you pay for your Units will differ from the amount stated
under "Summary of Essential Information" in Part One due to various
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factors, including fluctuations in the prices of the Securities and
changes in the value of the Income and/or Capital Accounts.
Although you are not required to pay for your Units until three business
days following your order (the "date of settlement"), you may pay before
then. You will become the owner of Units ("Record Owner") on the date of
settlement if payment has been received. If you pay for your Units
before the date of settlement, we may use your payment during this time
and it may be considered a benefit to us, subject to the limitations of
the Securities Exchange Act of 1934.
Sales Charges.
The sales charge you will pay will consist of a one-time initial sales
charge as listed in Part One for each Trust. See Part Three "Public
Offering" for additional information for each Trust.
The Value of the Securities.
The Evaluator will appraise the aggregate underlying value of the
Securities in a Trust as of the Evaluation Time on each business day and
will adjust the Public Offering Price of the Units according to this
valuation. This Public Offering Price will be effective for all orders
received before the Evaluation Time on each such day. If we or the
Trustee receive orders for purchases, sales or redemptions after that
time, or on a day which is not a business day, they will be held until
the next determination of price. The term "business day" as used in this
prospectus will exclude Saturdays, Sundays and certain national holidays
on which the NYSE is closed.
The aggregate underlying value of the Securities in a Trust will be
determined as follows: if the Securities are listed on a securities
exchange or The Nasdaq Stock Market, their value is generally based on
the closing sale prices on that exchange or system (unless it is
determined that these prices are not appropriate as a basis for
valuation). However, if there is no closing sale price on that exchange
or system, they are valued based on the closing bid prices. If the
Securities are not so listed, or, if so listed and the principal market
for them is other than on that exchange or system, their value will
generally be based on the current bid prices on the over-the-counter
market (unless it is determined that these prices are not appropriate as
a basis for valuation). If current bid prices are unavailable, the
valuation is generally determined:
a) On the basis of current bid prices for comparable securities;
b) By appraising the value of the Securities on the bid side of the
market; or
c) By any combination of the above.
Distribution of Units
We intend to qualify Units of the Trusts for sale in a number of states.
All Units will be sold at the then current Public Offering Price.
Dealer Concessions.
Dealers will receive concessions on the sale of Units in the amounts set
forth in Part Three of this prospectus. We reserve the right to change
the amount of concessions or agency commissions from time to time.
Certain commercial banks may be making Units of the Trusts available to
their customers on an agency basis. A portion of the sales charge paid
by these customers is kept by or given to the banks in the amounts shown
above.
Award Programs.
From time to time we may sponsor programs which provide awards to a
dealer's registered representatives who have sold a minimum number of
Units during a specified time period. We may also pay fees to qualifying
dealers for services or activities which are meant to result in sales of
Units of the Trusts. In addition, we will pay to dealers who sponsor
sales contests or recognition programs that conform to our criteria, or
participate in our sales programs, amounts equal to no more than the
total applicable sales charge on Units sold by such persons during such
programs. We make these payments out of our own assets and not out of
Trust assets. These programs will not change the price you pay for your
Units.
Investment Comparisons.
From time to time we may compare the estimated returns of the Trusts
(which may show performance net of the expenses and charges the Trusts
would have incurred) and returns over specified periods of other similar
trusts we sponsor in our advertising and sales materials, with (1)
returns on other taxable investments such as the common stocks
comprising various market indexes, corporate or U.S. Government bonds,
bank CDs and money market accounts or funds, (2) performance data from
Morningstar Publications, Inc. or (3) information from publications such
as Money, The New York Times, U.S. News and World Report, BusinessWeek,
Page 5
Forbes or Fortune. The investment characteristics of each Trust differ
from other comparative investments. You should not assume that these
performance comparisons will be representative of a Trust's future
performance.
The Sponsor's Profits
We will receive a gross sales commission equal to the maximum sales
charge per Unit of a Trust less any reduced sales charge as stated in
Part Three of this prospectus. In maintaining a market for the Units,
any difference between the price at which we purchase Units and the
price at which we sell or redeem them will be a profit or loss to us.
The Secondary Market
Although not obligated, we intend to maintain a market for the Units and
continuously offer to purchase Units at prices based on the Redemption
Price per Unit.
We will pay all expenses to maintain a secondary market, except the
Evaluator fees, Trustee costs to transfer and record the ownership of
Units and costs incurred in annually updating each Trust's registration
statement. We may discontinue purchases of Units at any time. IF YOU
WISH TO DISPOSE OF YOUR UNITS, YOU SHOULD ASK US FOR THE CURRENT MARKET
PRICES BEFORE MAKING A TENDER FOR REDEMPTION TO THE TRUSTEE.
How We Purchase Units
The Trustee will notify us of any tender of Units for redemption. If our
bid at that time is equal to or greater than the Redemption Price per
Unit, we may purchase the Units. You will receive your proceeds from the
sale no later than if they were redeemed by the Trustee. We may tender
Units that we hold to the Trustee for redemption as any other Units. If
we elect not to purchase Units, the Trustee may sell tendered Units in
the over-the-counter market, if any. However, the amount you will
receive is the same as you would have received on redemption of the Units.
Expenses and Charges
The estimated annual expenses of each Trust are set forth under "Summary
of Essential Information" in Part One of this prospectus. If actual
expenses of a Trust exceed the estimate, that Trust will bear the
excess. The Trustee will pay operating expenses of a Trust from the
Income Account of such Trust if funds are available, and then from the
Capital Account. The Income and Capital Accounts are noninterest-bearing
to Unit holders, so the Trustee may earn interest on these funds, thus
benefiting from their use.
As Sponsor, we will be compensated for providing bookkeeping and other
administrative services to the Trusts, and will receive brokerage fees
when a Trust uses us (or an affiliate of ours) as agent in buying or
selling Securities. Legal, typesetting, electronic filing and regulatory
filing fees and expenses associated with updating those Trusts'
registration statements yearly are also now chargeable to such Trusts.
Historically, we paid these fees and expenses. First Trust Advisors
L.P., an affiliate of ours, acts as both Portfolio Supervisor and
Evaluator to the Trusts and will receive the fees set forth under
"Summary of Essential Information" in Part One of this prospectus for
providing portfolio supervisory and evaluation services to the Trusts.
In providing portfolio supervisory services, the Portfolio Supervisor
may purchase research services from a number of sources, which may
include underwriters or dealers of the Trusts.
The fees payable to us, First Trust Advisors L.P. and the Trustee are
based on the largest aggregate number of Units of a Trust outstanding at
any time during the calendar year. These fees may be adjusted for
inflation without Unit holders' approval, but in no case will the annual
fees paid to us or our affiliates for providing a given service to all
unit investment trusts for which we provide such services be more than
the actual cost of providing such services in such year.
For certain Trusts, as set forth in the "Summary of Essential
Information" appearing in Part One for such Trusts, expenses incurred in
establishing such Trusts, including costs of preparing the registration
statement, the trust indenture and other closing documents, registering
Units with the Securities and Exchange Commission and states, the
initial audit of the Trust portfolio and the initial fees and expenses
of the Trustee and any other out-of-pocket expenses, have been paid by
the Trust and are being charged off over a period not to exceed five
years from such Trust's Initial Date of Deposit, or over a period not to
exceed the life of the Trust, if shorter than five years.
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In addition to a Trust's operating expenses and those fees described
above, each Trust may also incur the following charges:
- License fees payable by a Trust for the use of certain trademarks and
trade names associated with such Trust, if any;
- All legal and annual auditing expenses of the Trustee according to its
responsibilities under the Indenture;
- The expenses and costs incurred by the Trustee to protect a Trust and
your rights and interests;
- Fees for any extraordinary services the Trustee performed under the
Indenture;
- Payment for any loss, liability or expense the Trustee incurred
without negligence, bad faith or willful misconduct on its part, in
connection with its acceptance or administration of a Trust;
- Payment for any loss, liability or expenses we incurred without
negligence, bad faith or willful misconduct in acting as Depositor of a
Trust; and/or
- All taxes and other government charges imposed upon the Securities or
any part of a Trust.
The above expenses and the Trustee's annual fee are secured by a lien on
the Trusts. Since the dividend income is unpredictable, we cannot
guarantee that dividends will be sufficient to meet any or all expenses
of the Trusts. If there is not enough cash in the Income or Capital
Account, the Trustee has the power to sell Securities in a Trust to make
cash available to pay these charges which may result in capital gains or
losses to you. See "Tax Status."
Each Trust will be audited annually. We will bear the cost of these
annual audits to the extent the costs exceed $0.0050 per Unit.
Otherwise, each Trust will pay for the audit. You can request a copy of
the audited financial statements from the Trustee.
Tax Status
Federal Tax Status.
This section summarizes some of the main U.S. federal income tax
consequences of owning Units of a Trust. This section is current as of
the date of this prospectus. Tax laws and interpretations change
frequently, and these summaries do not describe all of the tax
consequences to all taxpayers. For example, these summaries generally do
not describe your situation if you are a non-U.S. person, a
broker/dealer, or other investor with special circumstances. In
addition, this section does not describe state or foreign taxes. As with
any investment, you should consult your own tax professional about your
particular consequences.
Assets of the Trusts.
Each Trust will hold one or more of the following: (i) stock in domestic
and foreign corporations (the "Stocks"), (ii) interests in real estate
investment trusts (the "REIT Shares"), (iii) Trust Preferred Securities
(the "Debt Obligations") and (iv) shares in funds qualifying as
regulated investment companies (the "RIC Shares"). All of the foregoing
assets constitute the "Trust Assets." For purposes of this federal tax
discussion, it is assumed that the Stocks constitute equity, the Debt
Obligations constitute debt and that the RIC Shares and the REIT Shares
constitute qualifying shares in regulated investment companies and real
estate investment trusts, respectively, for federal income tax purposes.
Trust Status.
Except if indicated otherwise in Part Three of this prospectus, each
Trust will not be taxed as a corporation for federal income tax
purposes. As a Unit owner, you will be treated as the owner of a pro
rata portion of each of the Trust Assets, and as such you will be
considered to have received a pro rata share of income (i.e., interest,
dividends, accruals of original issue discount and market discount, and
capital gains, if any) from each Trust Asset when such income is
considered to be received by the Trust. This is true even if you elect
to have your distributions automatically reinvested into additional
Units.
Your Tax Basis and Income or Loss upon Disposition.
If your Trust disposes of Trust Assets, you will generally recognize
gain or loss. If you dispose of your Units or redeem your Units for
cash, you will also generally recognize gain or loss. To determine the
amount of this gain or loss, you must subtract your tax basis in the
related Trust Assets from your share of the total proceeds received in
the transaction. You can generally determine your initial tax basis in
each Trust Asset by apportioning the cost of your Units, generally
including sales charges, among each Trust Asset ratably according to its
value on the date you acquire your Units. In certain circumstances,
however, you may have to adjust your tax basis after you acquire your
Page 7
Units (for example, in the case of certain dividends that exceed a
corporation's accumulated earnings and profits or in the case of
original issue discount, market discount, premium and accrued interest
with regard to the Debt Obligations, as discussed below).
If you are an individual, the maximum marginal federal tax rate for net
capital gain is generally 20% (10% for certain taxpayers in the lowest
tax bracket). Net capital gain equals net long-term capital gain minus
net short-term capital loss for the taxable year. Capital gain or loss
is long-term if the holding period for the asset is more than one year
and is short-term if the holding period for the asset is one year or
less. You must exclude the date you purchase your Units or the date your
Trust purchases a Trust Asset to determine the holding period. The tax
rates for capital gains realized from assets held for one year or less
are generally the same as for ordinary income. The Code may, however,
treat certain capital gains as ordinary income in special situations
(for example, in the case of gain on the Debt Obligations attributable
to market discount). In addition, capital gain received from assets held
for more than one year that is considered "unrecaptured section 1250
gain" (which may be the case, for example, with some capital gains
attributable to the REIT Shares) is taxed at a maximum stated tax rate
of 25%.
Dividends from RIC Shares and REIT Shares.
Some dividends on the REIT Shares or the RIC Shares may qualify as
"capital gain dividends," taxable to you as long-term capital gains. If
you hold a Unit for six months or less or if your Trust holds a RIC
Share or REIT Share for six months or less, any loss incurred by you
related to the disposition of such RIC Share or REIT Share will be
treated as a long-term capital loss to the extent of any long-term
capital gain distributions received (or deemed to have been received)
with respect to such RIC Share or REIT Share. Distributions of income or
capital gains declared on the REIT Shares or the RIC Shares in October,
November or December will be deemed to have been paid to you on December
31 of the year they are declared, even when paid by the REIT or the RIC
during the following January.
Discount, Accrued Interest and Premium on Debt Obligations.
Some Debt Obligations may have been sold with original issue discount.
This generally means that the Debt Obligations were originally issued at
a price below their face (or par) value. Original issue discount accrues
on a daily basis and generally is treated as interest income for federal
income tax purposes. The basis of your Unit and of each Debt Obligation
which was issued with original issue discount must be increased as
original issue discount accrues.
Some Debt Obligations may have been purchased by you or your Trust at a
market discount. Market discount is generally the excess of the stated
redemption price at maturity for the Debt Obligation over the purchase
price of the Debt Obligation (not including unaccrued original issue
discount). Market discount can arise based on the price your Trust pays
for a Debt Obligation or on the price you pay for your Units. Market
discount is taxed as ordinary income. You will recognize this income
when your Trust receives principal payments on the Debt Obligation, when
the Debt Obligation is sold or redeemed, or when you sell or redeem your
Units. Alternatively, you may elect to include market discount in
taxable income as it accrues. Whether or not you make this election will
affect how you calculate your basis and the timing of certain interest
expense deductions.
Alternatively, some Debt Obligations may have been purchased by you or
your Trust at a premium. Generally, if the tax basis of your pro rata
portion of any Debt Obligation exceeds the amount payable at maturity,
such excess is considered premium. You may elect to amortize premium. If
you make this election, you may reduce your interest income received on
the Debt Obligation by the amount of the premium that is amortized and
your tax basis will be reduced.
If the price of your Units included accrued interest on a Debt
Obligation, you must include the accrued interest in your tax basis in
that Debt Obligation. When your Trust receives this accrued interest,
you must treat it as a return of capital and reduce your tax basis in
the Debt Obligation.
This discussion provides only the general rules with respect to the tax
treatment of original issue discount, market discount and premium. The
rules, however, are complex and special rules apply in certain
circumstances. For example, the accrual of market discount or premium
Page 8
may differ from the discussion set forth above in the case of Debt
Obligations that were issued with original issue discount.
Dividends Received Deduction.
A corporation that owns Units will generally not be entitled to the
dividends received deduction with respect to many dividends received by
your Trust, because the dividends received deduction is not available
for dividends from most foreign corporations or from REITs.
Distributions on a RIC Share are eligible for the dividends received
deduction only to the extent that the dividends received by the Unit
owner are attributable to dividends received by the RIC itself from
certain domestic corporations and are designated by the RIC as being
eligible for the dividends received deduction. Finally, because the Debt
Obligations are treated as debt (not equity) for federal income tax
purposes, distributions from the Debt Obligations are not eligible for
the dividends received deduction.
In-Kind Distributions.
Under certain circumstances, you may request an In-Kind Distribution of
Trust Assets when you redeem your Units or at your Trust's termination.
By electing to receive an In-Kind Distribution, you will receive an
undivided interest in Trust Assets plus, possibly, cash. You will not
recognize gain or loss if you only receive Trust Assets in exchange for
your pro rata portion of the Trust Assets held by your Trust. However,
if you also receive cash in exchange for a fractional portion of a Trust
Asset, you will generally recognize gain or loss based on the difference
between the amount of cash you receive and your tax basis in such
fractional portion of the Trust Asset.
Limitations on the Deductibility of Trust Expenses.
Generally, for federal income tax purposes, you must take into account
your full pro rata share of your Trust's income, even if some of that
income is used to pay Trust expenses. You may deduct your pro rata share
of each expense paid by your Trust to the same extent as if you directly
paid the expense. You may be required to treat some or all of the
expenses of your Trust as miscellaneous itemized deductions. However,
individuals may only deduct certain miscellaneous itemized deductions to
the extent they exceed 2% of adjusted gross income.
Foreign, State and Local Taxes.
Interest and dividend payments on your Trust Assets of foreign companies
that are paid to your Trust may be subject to foreign withholding taxes.
Any income withheld will still be treated as income to you. Under the
grantor trust rules, you are considered to have paid directly your share
of foreign taxes. Therefore, for U.S. tax purposes, you may be entitled
to a foreign tax credit or deduction for those foreign taxes.
If you are a foreign investor (i.e., an investor other than a U.S.
citizen or resident or a U.S. corporation, partnership, estate or
trust), you will not be subject to U.S. federal income taxes, including
withholding taxes, on some of the income from your Trust or on any gain
from the sale or redemption of your Units, provided that certain
conditions are met. You should consult your tax advisor with respect to
the conditions you must meet in order to be exempt for U.S. tax purposes.
Under the existing income tax laws of the State and City of New York,
your Trust will not be taxed as a corporation, and the income of your
Trust will be treated as the income of the Unit holders in the same
manner as for federal income tax purposes. You should consult your tax
advisor regarding potential foreign, state or local taxation with
respect to your Units.
Retirement Plans
You may purchase Units of the Trusts for:
- Individual Retirement Accounts;
- Keogh Plans;
- Pension funds; and
- Other tax-deferred retirement plans.
Generally, the federal income tax on capital gains and income received
in each of the above plans is deferred until you receive distributions.
These distributions are generally treated as ordinary income but may, in
some cases, be eligible for special averaging or tax-deferred rollover
treatment. Before participating in a plan like this, you should review
the tax laws regarding these plans and consult your attorney or tax
advisor. Brokerage firms and other financial institutions offer these
plans with varying fees and charges.
Rights of Unit Holders
Unit Ownership.
The Trustee will treat as Record Owner of Units persons registered as
such on its books. It is your responsibility to notify the Trustee when
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you become Record Owner, but normally your broker/dealer provides this
notice. You may elect to hold your Units in either certificated or
uncertificated form.
Certificated Units. When you purchase your Units you can request that
they be evidenced by certificates, which will be delivered shortly after
your order. Certificates will be issued in fully registered form,
transferable only on the books of the Trustee in denominations of one
Unit or any multiple thereof. You can transfer or redeem your
certificated Units by endorsing and surrendering the certificate to the
Trustee, along with a written instrument of transfer. You must sign your
name exactly as it appears on the face of the certificate with your
signature guaranteed by an eligible institution. In certain cases the
Trustee may require additional documentation before they will transfer
or redeem your Units.
You may be required to pay a nominal fee to the Trustee for each
certificate reissued or transferred, and to pay any government charge
that may be imposed for each transfer or exchange. If a certificate gets
lost, stolen or destroyed, you may be required to furnish indemnity to
the Trustee to receive replacement certificates. You must surrender
mutilated certificates to the Trustee for replacement.
Uncertificated Units. You may also choose to hold your Units in
uncertificated form. If you choose this option, the Trustee will
establish an account for you and credit your account with the number of
Units you purchase. Within two business days of the issuance or transfer
of Units held in uncertificated form, the Trustee will send you:
- A written initial transaction statement containing a description of
the Trust;
- A list of the number of Units issued or transferred;
- Your name, address and Taxpayer Identification Number ("TIN");
- A notation of any liens or restrictions of the issuer and any adverse
claims; and
- The date the transfer was registered.
Uncertificated Units may be transferred the same way as certificated
Units, except that no certificate needs to be presented to the Trustee.
Also, no certificate will be issued when the transfer takes place unless
you request it. You may at any time request that the Trustee issue
certificates for your Units.
Unit Holder Reports.
In connection with each distribution, the Trustee will provide you with
a statement detailing the per Unit amount of income (if any)
distributed. After the end of each calendar year, the Trustee will
provide you with the following information:
- A summary of transactions in your Trust for the year;
- A list of any Securities sold during the year and the Securities held
at the end of that year by your Trust;
- The Redemption Price per Unit, computed on the 31st day of December of
such year (or the last business day before); and
- Amounts of income and capital distributed during the year.
You may request from the Trustee copies of the evaluations of the
Securities as prepared by the Evaluator to enable you to comply with
federal and state tax reporting requirements.
Income and Capital Distributions
You will begin receiving distributions on your Units only after you
become a Record Owner. The Trustee will credit dividends received on a
Trust's Securities to the Income Account of such Trust. All other
receipts, such as return of capital, are credited to the Capital Account
of such Trust.
The Trustee will distribute any net income in the Income Account on or
near the Income Distribution Dates to Unit holders of record on the
preceding Income Distribution Record Date. See "Summary of Essential
Information" in Part One of this prospectus. No income distribution will
be paid if accrued expenses of a Trust exceed amounts in the Income
Account on the Income Distribution Dates. Distribution amounts will vary
with changes in a Trust's fees and expenses, in dividends received and
with the sale of Securities. The Trustee will distribute amounts in the
Capital Account, net of amounts designated to meet redemptions or pay
expenses on the last day of each month to Unit holders of record on the
fifteenth day of each month provided the amount equals at least $1.00
per 100 Units ($1.00 per 1,000 Units if the Initial Public Offering
Price was approximately $1.00 per Unit). If the Trustee does not have
your TIN, it is required to withhold a certain percentage of your
distribution and deliver such amount to the Internal Revenue Service
Page 10
("IRS"). You may recover this amount by giving your TIN to the Trustee,
or when you file a tax return. However, you should check your statements
to make sure the Trustee has your TIN to avoid this "back-up withholding."
Within a reasonable time after a Trust is terminated, you will receive
the pro rata share of the money from the sale of the Securities.
However, if you are eligible, you may elect to receive an In-Kind
Distribution as described under "Amending or Terminating the Indenture."
You will receive a pro rata share of any other assets remaining in your
Trust after deducting any unpaid expenses.
The Trustee may establish reserves (the "Reserve Account") within a
Trust to cover anticipated state and local taxes or any governmental
charges to be paid out of such Trust.
Distribution Reinvestment Option. If applicable, you may elect to have
each distribution of income and/or capital reinvested into additional
Units of your Trust by notifying the Trustee at least 10 days before any
Record Date. Each later distribution of income and/or capital on your
Units will be reinvested by the Trustee into additional Units of your
Trust. There is no sales charge on Units acquired through the
Distribution Reinvestment Option. This option may not be available in
all states.PLEASE NOTE THAT EVEN IF YOU REINVEST DISTRIBUTIONS, THEY ARE
STILL CONSIDERED DISTRIBUTIONS FOR INCOME TAX PURPOSES.See Part Three of
this prospectus to determine whether the distribution reinvestment
option is available for a particular Trust.
Redeeming Your Units
You may redeem all or a portion of your Units at any time by sending the
certificates representing the Units you want to redeem to the Trustee at
its unit investment trust office. If your Units are uncertificated, you
need only deliver a request for redemption to the Trustee. In either
case, the certificates or the redemption request must be properly
endorsed with proper instruments of transfer and signature guarantees as
explained in "Rights of Unit Holders-Unit Ownership" (or by providing
satisfactory indemnity if the certificates were lost, stolen, or
destroyed). No redemption fee will be charged, but you are responsible
for any governmental charges that apply. Three business days after the
day you tender your Units (the "Date of Tender") you will receive cash
in an amount for each Unit equal to the Redemption Price per Unit
calculated at the Evaluation Time on the Date of Tender.
The Date of Tender is considered to be the date on which the Trustee
receives your certificates or redemption request (if such day is a day
the NYSE is open for trading). However, if your certificates or
redemption request are received after 4:00 p.m. Eastern time (or after
any earlier closing time on a day on which the NYSE is scheduled in
advance to close at such earlier time), the Date of Tender is the next
day the NYSE is open for trading.
Any amounts paid on redemption representing income will be withdrawn
from the Income Account if funds are available for that purpose, or from
the Capital Account. All other amounts paid on redemption will be taken
from the Capital Account. The IRS will require the Trustee to withhold a
portion of your redemption proceeds if it does not have your TIN, as
generally discussed under "Income and Capital Distributions."
For certain Trusts, if you tender at least the minimum number of Units
specified in "Summary of Essential Information" in Part One of this
prospectus, rather than receiving cash, you may elect to receive an In-
Kind Distribution in an amount equal to the Redemption Price per Unit by
making this request in writing to the Trustee at the time of tender.
However, no In-Kind Distribution requests submitted during the nine
business days prior to a Trust's Mandatory Termination Date will be
honored. Where possible, the Trustee will make an In-Kind Distribution
by distributing each of the Securities in book-entry form to your bank
or broker/dealer account at the Depository Trust Company. The Trustee
will subtract any customary transfer and registration charges from your
In-Kind Distribution. As a tendering Unit holder, you will receive your
pro rata number of whole shares of the Securities that make up the
portfolio, and cash from the Capital Account equal to the fractional
shares to which you are entitled.
The Trustee may sell Securities to make funds available for redemption.
If Securities are sold, the size and diversification of a Trust will be
reduced. These sales may result in lower prices than if the Securities
were sold at a different time.
Your right to redeem Units (and therefore, your right to receive
payment) may be delayed:
- If the NYSE is closed (other than customary weekend and holiday
closings);
- If the SEC determines that trading on the NYSE is restricted or that
Page 11
an emergency exists making sale or evaluation of the Securities not
reasonably practical; or
- For any other period permitted by SEC order.
The Trustee is not liable to any person for any loss or damage which may
result from such a suspension or postponement.
The Redemption Price.
The Redemption Price per Unit is determined by the Trustee by:
adding
1. cash in the Income and Capital Accounts of a Trust not designated to
purchase Securities;
2. the aggregate value of the Securities held in a Trust; and
3. dividends receivable on the Securities trading ex-dividend as of the
date of computation; and
deducting
1. any applicable taxes or governmental charges that need to be paid out
of a Trust;
2. any amounts owed to the Trustee for its advances;
3. estimated accrued expenses of a Trust, if any;
4. cash held for distribution to Unit holders of record of a Trust as of
the business day before the evaluation being made;
5. liquidation costs for foreign Securities, if any; and
6. other liabilities incurred by a Trust; and
dividing
1. the result by the number of outstanding Units of a Trust.
Removing Securities from a Trust
The portfolios of the Trusts are not managed. However, we may, but are
not required to, direct the Trustee to dispose of a Security in certain
limited circumstances, including situations in which:
- The issuer of the Security defaults in the payment of a declared
dividend;
- Any action or proceeding prevents the payment of dividends;
- There is any legal question or impediment affecting the Security;
- The issuer of the Security has breached a covenant which would affect
the payment of dividends, the issuer's credit standing, or otherwise
damage the sound investment character of the Security;
- The issuer has defaulted on the payment of any other of its
outstanding obligations;
- There has been a public tender offer made for a Security or a merger
or acquisition is announced affecting a Security, and that in our
opinion the sale or tender of the Security is in the best interest of
Unit holders; or
- The price of the Security has declined to such an extent, or such
other credit factors exist, that in our opinion keeping the Security
would be harmful to a Trust.
A Trust may not acquire any securities or other property other than the
Securities. The Trustee, on behalf of the Trusts, will reject any offer
for new or exchanged securities or property in exchange for a Security,
such as those acquired in a merger or other transaction. If such
exchanged securities or property are nevertheless acquired by a Trust,
at our instruction, they will either be sold or held in such Trust. In
making the determination as to whether to sell or hold the exchanged
securities or property we may get advice from each Portfolio Supervisor.
Any proceeds received from the sale of Securities, exchanged securities
or property will be credited to the Capital Account for distribution to
Unit holders or to meet redemption requests. The Trustee may retain and
pay us or an affiliate of ours to act as agent for a Trust to facilitate
selling Securities, exchanged securities or property from the Trusts. If
we or our affiliate act in this capacity, we will be held subject to the
restrictions under the Investment Company Act of 1940, as amended.
The Trustee may sell Securities designated by us or, absent our
direction, at its own discretion, in order to meet redemption requests
or pay expenses. In designating Securities to be sold, we will try to
maintain the proportionate relationship among the Securities. If this is
not possible, the composition and diversification of a Trust may be
changed. To get the best price for a Trust we may specify minimum
amounts (generally 100 shares) in which blocks of Securities are to be
sold. We may consider sales of units of unit investment trusts which we
sponsor when we make recommendations to the Trustee as to which
broker/dealers they select to execute a Trust's portfolio transactions,
or when acting as agent for a Trust in acquiring or selling Securities
on behalf of the Trusts.
Page 12
Amending or Terminating the Indenture
Amendments. The Indenture may be amended by us and the Trustee without
your consent:
- To cure ambiguities;
- To correct or supplement any defective or inconsistent provision;
- To make any amendment required by any governmental agency; or
- To make other changes determined not to be materially adverse to your
best interests (as determined by us and the Trustee).
Termination. As provided by the Indenture, the Trusts will terminate on
the Mandatory Termination Date as stated in the "Summary of Essential
Information" in Part One for each Trust. The Trusts may be terminated
earlier:
- Upon the consent of 100% of the Unit holders of a Trust;
- If the value of the Securities owned by a Trust as shown by any
evaluation is less than the lower of $2,000,000 or 20% of the total
value of Securities deposited in such Trust during the initial offering
period ("Discretionary Liquidation Amount"); or
- In the event that Units of a Trust not yet sold aggregating more than
60% of the Units of such Trust are tendered for redemption by
underwriters, including the Sponsor.
Prior to termination, the Trustee will send written notice to all Unit
holders which will specify how you should tender your certificates, if
any, to the Trustee. For various reasons, a Trust may be reduced below
the Discretionary Liquidation Amount and could therefore be terminated
before the Mandatory Termination Date.
Unless terminated earlier, the Trustee will begin to sell Securities in
connection with the termination of a Trust during the period beginning
nine business days prior to, and no later than, the Mandatory
Termination Date. We will determine the manner and timing of the sale of
Securities. Because the Trustee must sell the Securities within a
relatively short period of time, the sale of Securities as part of the
termination process may result in a lower sales price than might
otherwise be realized if such sale were not required at this time.
If you qualify for an In-Kind Distribution, the Trustee will send you a
form at least 30 days prior to the Mandatory Termination Date which will
enable you to receive an In-Kind Distribution (reduced by customary
transfer and registration charges) rather than the typical cash
distribution. See "Tax Status" for additional information. You must
notify the Trustee at least ten business days prior to the Mandatory
Termination Date if you elect this In-Kind Distribution option. If you
do not elect to participate in the In-Kind Distribution option, you will
receive a cash distribution from the sale of the remaining Securities,
along with your interest in the Income and Capital Accounts, within a
reasonable time after such Trust is terminated. Regardless of the
distribution involved, the Trustee will deduct from the Trusts any
accrued costs, expenses, advances or indemnities provided for by the
Indenture, including estimated compensation of the Trustee and costs of
liquidation and any amounts required as a reserve to pay any taxes or
other governmental charges.
Information on the Sponsor, Trustee and Evaluator
The Sponsor.
We, Nike Securities L.P., specialize in the underwriting, trading and
wholesale distribution of unit investment trusts under the "First Trust"
brand name and other securities. An Illinois limited partnership formed
in 1991, we act as Sponsor for successive series of:
- The First Trust Combined Series
- FT Series (formerly known as The First Trust Special Situations Trust)
- The First Trust Insured Corporate Trust
- The First Trust of Insured Municipal Bonds
- The First Trust GNMA
First Trust introduced the first insured unit investment trust in 1974.
To date we have deposited more than $27 billion in First Trust unit
investment trusts. Our employees include a team of professionals with
many years of experience in the unit investment trust industry.
We are a member of the National Association of Securities Dealers, Inc.
and Securities Investor Protection Corporation. Our principal offices
are at 1001 Warrenville Road, Lisle, Illinois 60532; telephone number
(630) 241-4141. As of December 31, 1999, the total partners' capital of
Nike Securities L.P. was $19,881,035 (audited).
Page 13
This information refers only to us and not to the Trusts or to any
series of the Trusts or to any other dealer. We are including this
information only to inform you of our financial responsibility and our
ability to carry out our contractual obligations. We will provide more
detailed financial information on request.
Code of Ethics. The Sponsor and the Trusts have adopted a code of ethics
requiring the Sponsor's employees who have access to information on
Trust transactions to report personal securities transactions. The
purpose of the code is to avoid potential conflicts of interest and to
prevent fraud, deception or misconduct with respect to the Trusts.
The Trustee.
The Trustee is The Chase Manhattan Bank, with its principal executive
office located at 270 Park Avenue, New York, New York 10017 and its unit
investment trust office at 4 New York Plaza, 6th Floor, New York, New
York, 10004-2413. If you have questions regarding the Trusts, you may
call the Customer Service Help Line at 1-800-682-7520. The Trustee is
supervised by the Superintendent of Banks of the State of New York, the
Federal Deposit Insurance Corporation and the Board of Governors of the
Federal Reserve System.
The Trustee has not participated in selecting the Securities for the
Trusts; it only provides administrative services.
Limitations of Liabilities of Sponsor and Trustee.
Neither we nor the Trustee will be liable for taking any action or for
not taking any action in good faith according to the Indenture. We will
also not be accountable for errors in judgment. We will only be liable
for our own willful misfeasance, bad faith, gross negligence (ordinary
negligence in the Trustee's case) or reckless disregard of our
obligations and duties. The Trustee is not liable for any loss or
depreciation when the Securities are sold. If we fail to act under the
Indenture, the Trustee may do so, and the Trustee will not be liable for
any action it takes in good faith under the Indenture.
The Trustee will not be liable for any taxes or other governmental
charges or interest on the Securities which the Trustee may be required
to pay under any present or future law of the United States or of any
other taxing authority with jurisdiction. Also, the Indenture states
other provisions regarding the liability of the Trustee.
If we do not perform any of our duties under the Indenture or are not
able to act or become bankrupt, or if our affairs are taken over by
public authorities, then the Trustee may:
- Appoint a successor sponsor, paying them a reasonable rate not more
than that stated by the SEC;
- Terminate the Indenture and liquidate the Trusts; or
- Continue to act as Trustee without terminating the Indenture.
The Evaluator.
The Evaluator is First Trust Advisors L.P., an Illinois limited
partnership formed in 1991 and an affiliate of the Sponsor. The
Evaluator's address is 1001 Warrenville Road, Lisle, Illinois 60532.
The Trustee, Sponsor and Unit holders may rely on the accuracy of any
evaluation prepared by the Evaluator. The Evaluator will make
determinations in good faith based upon the best available information,
but will not be liable to the Trustee, Sponsor or Unit holders for
errors in judgment.
Other Information
Legal Opinions.
Our counsel is Chapman and Cutler, 111 W. Monroe St., Chicago, Illinois,
60603. They have passed upon the legality of the Units offered hereby
and certain matters relating to federal tax law. Carter, Ledyard &
Milburn acts as the Trustee's counsel, as well as special New York tax
counsel for the Trusts.
Experts.
Ernst & Young LLP, independent auditors, have audited the Trusts'
statements of net assets, including the schedules of investments,
appearing in each Part One of this prospectus, as set forth in their
report. We've included the Trusts' statements of net assets, including
the schedules of investments, in the prospectus and elsewhere in the
registration statement in reliance on Ernst & Young LLP's report, given
on their authority as experts in accounting and auditing.
Page 14
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Page 15
FIRST TRUST (registered trademark)
THE FIRST TRUST SPECIAL SITUATIONS TRUST
FT SERIES
Prospectus
Part Two
Sponsor:
NIKE SECURITIES L.P.
1001 Warrenville Road, Suite 300
Lisle, Illinois 60532
1-630-241-4141
Trustee:
The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
1-800-682-7520
24-Hour Pricing Line:
1-800-446-0132
This prospectus contains information relating to the above-mentioned
unit investment trusts, but does not contain all of the information
about this investment company as filed with the Securities and Exchange
Commission in Washington, D.C. under the:
- Securities Act of 1933 (set forth in Part One for each Trust) and
- Investment Company Act of 1940 (file no. 811-05903)
Information about the Trusts, including their Codes of Ethics, can be
reviewed and copied at the Securities and Exchange Commission's Public
Reference Room in Washington D.C. Information regarding the operation of
the Commission's Public Reference Room may be obtained by calling the
Commission at 1-202-942-8090.
Information about the Trusts is available on the EDGAR Database on the
Commission's Internet site at
http://www.sec.gov.
To obtain copies at prescribed rates -
Write: Public Reference Section of the Commission
450 Fifth Street, N.W.
Washington, D.C. 20549-0102
e-mail address: [email protected]
May 31, 2000
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE
Page 16
Communications Growth Trust Series
Communications Growth Portfolio Series
The First Trust(registered trademark) Special Situations Trust
FT Series
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated July 31, 2000 PART ONE AND PART TWO
The Trusts. The Trusts consist of common stocks of communications
companies, including common stock of foreign issuers in American
Depositary Receipt ("ADR") form. The Trusts do not include Treasury
Obligations. See "Portfolio" appearing in Part One for each Trust.
The Objective of the Trusts. The objective of each Trust is to provide
potential for above-average capital appreciation by investing a Trust's
portfolio in common stocks of communications companies, including common
stock of foreign issuers in American Depositary Receipt ("ADR") form
("Equity Securities"). There is, of course, no guarantee that the
objective of the Trusts will be achieved.
Portfolio. The Trusts consist of different issues of Equity Securities
of communications companies which are listed on a national securities
exchange, The Nasdaq Stock Market or are traded in the over-the-counter
market.
An investment in Units of the Trusts should be made with an
understanding of the problems and risks inherent in the communications
sector in general.
The market for high-technology communications products and services is
characterized by rapidly changing technology, rapid product
obsolescence, cyclical market patterns, evolving industry standards and
frequent new product introductions. The success of the issuers of the
Equity Securities depends in substantial part on the timely and
successful introduction of new products and services. An unexpected
change in one or more of the technologies affecting an issuer's products
or in the market for products based on a particular technology could
have a material adverse affect on an issuer's operating results.
Furthermore, there can be no assurance that the issuers of the Equity
Securities will be able to respond in a timely manner to compete in the
rapidly developing marketplace.
The communications industry is subject to governmental regulation.
However, as market forces develop, the government will continue to
deregulate the communications industry, promoting vigorous economic
competition and resulting in the rapid development of new communications
technologies. The products and services of communications companies may
be subject to rapid obsolescence. These factors could affect the value
of a Trust's Units. For example, while telephone companies in the United
States are subject to both state and federal regulations affecting
permitted rates of returns and the kinds of services that may be
offered, the prohibition against phone companies delivering video
services has been lifted. This creates competition between phone
companies and cable operators and encourages phone companies to
modernize their communications infrastructure. Certain types of
companies represented in a Trust's portfolio are engaged in fierce
competition for a share of the market of their products. As a result,
competitive pressures are intense and the stocks are subject to rapid
price volatility.
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
Many communications companies rely on a combination of patents,
copyrights, trademarks and trade secret laws to establish and protect
their proprietary rights in their products and technologies. There can
be no assurance that the steps taken by the issuers of the Equity
Securities to protect their proprietary rights will be adequate to
prevent misappropriation of their technology or that competitors will
not independently develop technologies that are substantially equivalent
or superior to such issuers' technology.
For a discussion of American Depositary Receipts ("ADRs"), see "Risk
Factors" in Part Two of the Prospectus.
Public Offering Price. The applicable sales charge is reduced by a
discount as indicated below for aggregate volume purchases (except for
sales made pursuant to a "wrap fee account" or similar arrangements as
set forth below):
Percent of Percent of
Dollar Amount of Transaction Offering Net Amount
at Public Offering Price* Price Invested
____________________________ __________ __________
$ 50,000 but less than $100,000 0.25% 0.2506%
$100,000 but less than $250,000 0.50% 0.5025%
$250,000 but less than $500,000 1.00% 1.0101%
$500,000 or more 2.00% 2.0408%
* The breakpoint sales charges are also applied on a Unit basis
utilizing a breakpoint equivalent in the above table of $10 per Unit and
will be applied on whichever basis is more favorable to the investor.
The breakpoints will be adjusted to take into consideration purchase
orders stated in dollars which cannot be completely fulfilled due to the
requirement that only whole Units be issued.
Any such reduced sales charge shall be the responsibility of the selling
broker/dealer, bank or other selling agent. The reduced sales charge
structure will apply on all purchases of Units in a Trust by the same
person on any one day from any one broker/dealer, bank or other selling
agent. Additionally, Units purchased in the name of the spouse of a
purchaser or in the name of a child of such purchaser under 21 years of
age will be deemed, for the purposes of calculating the applicable sales
charge, to be additional purchases by the purchaser. The reduced sales
charges will also be applicable to a trustee or other fiduciary
purchasing securities for a single trust estate or single fiduciary
account. The purchaser must inform the broker/dealer, bank or other
selling agent of any such combined purchase prior to the sale in order
to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, siblings, mothers-in-law, fathers-in-law, sons-in-law and
daughters-in-law, and trustees, custodians or fiduciaries for the
benefit of such persons) of the Sponsor, broker/dealers, banks or other
selling agents and their subsidiaries and vendors providing services to
the Sponsor, Units may be purchased at the Public Offering Price less
the concession the Sponsor typically allows to dealers and other selling
agents.
Units may be purchased at the Public Offering Price less the concession
the Sponsor typically allows to dealers and other selling agents for
purchases by investors who purchase Units through registered investment
advisers, certified financial planners or registered broker/dealers who
in each case either charge periodic fees for financial planning,
investment advisory or asset management services, or provide such
services in connection with the establishment of an investment account
for which a comprehensive "wrap fee" charge is imposed.
It is the intention of the Sponsor to qualify Units of the Trusts for
sale in a number of states. Sales will be made to dealers and other
selling agents at prices which represent a concession or agency
commission of 65% of the then current maximum sales charge.
Page 2
Communications Growth Trust Series
Communications Growth Portfolio Series
The First Trust(registered trademark) Special Situations Trust
FT Series
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 3
FUNDAMENTAL VALUE GROWTH TRUST SERIES
FT Series
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated July 31, 2000 PART ONE AND PART TWO
The Trusts. The Trusts consist of common stocks of companies which the
Sponsor believed represented, at the Initial Date of Deposit, excellent
value in the marketplace. The Trusts do not include Treasury
Obligations. See "Portfolio" appearing in Part One for each Trust.
The Objective of the Trusts. The objective of each Trust is to provide
for the potential for above-average capital appreciation through an
investment in a diversified portfolio of common stocks of companies
which the Sponsor believes represent excellent value in the marketplace
("Equity Securities"). There is, of course, no guarantee that the
objective of the Trusts will be achieved.
Portfolio. The Trusts consist of different issues of Equity Securities
of companies which are listed on a national securities exchange, The
Nasdaq Stock Market or are traded in the over-the-counter market. A
diversified portfolio helps to offset the risks normally associated with
such an investment, although it does not eliminate them entirely. The
companies selected for the Trusts have been researched and evaluated
using database screening techniques, fundamental analysis and the
judgment of the Sponsor's research analysts.
Public Offering Price. The applicable sales charge is reduced by a
discount as indicated below for aggregate volume purchases (except for
sales made pursuant to a "wrap fee account" or similar arrangements as
set forth below):
Percent of Percent of
Dollar Amount of Transaction Offering Net Amount
at Public Offering Price* Price Invested
____________________________ __________ __________
$ 50,000 but less than $100,000 0.25% 0.2506%
$100,000 but less than $250,000 0.50% 0.5025%
$250,000 but less than $500,000 1.00% 1.0101%
$500,000 or more 2.00% 2.0408%
* The breakpoint sales charges are also applied on a Unit basis
utilizing a breakpoint equivalent in the above table of $10 per Unit and
will be applied on whichever basis is more favorable to the investor.
The breakpoints will be adjusted to take into consideration purchase
orders stated in dollars which cannot be completely fulfilled due to the
requirement that only whole Units be issued.
It is the intention of the Sponsor to qualify Units of the Trusts for
sale in a number of states. Sales will be made to dealers and other
selling agents at prices which represent a concession or agency
commission of 65% of the then current maximum sales charge.
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
Any such reduced sales charge shall be the responsibility of the selling
broker/dealer, bank or other selling agent. The reduced sales charge
structure will apply on all purchases of Units in a Trust by the same
person on any one day from any one broker/dealer, bank or other selling
agent. Additionally, Units purchased in the name of the spouse of a
purchaser or in the name of a child of such purchaser under 21 years of
age will be deemed, for the purposes of calculating the applicable sales
charge, to be additional purchases by the purchaser. The reduced sales
charges will also be applicable to a trustee or other fiduciary
purchasing securities for a single trust estate or single fiduciary
account. The purchaser must inform the broker/dealer, bank or other
selling agent of any such combined purchase prior to the sale in order
to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, siblings, mothers-in-law, fathers-in-law, sons-in-law and
daughters-in-law, and trustees, custodians or fiduciaries for the
benefit of such persons) of the Sponsor, broker/dealers, banks or other
selling agents and their subsidiaries and vendors providing services to
the Sponsor, Units may be purchased at the Public Offering Price less
the concession the Sponsor typically allows to dealers and other selling
agents.
Units may be purchased at the Public Offering Price less the concession
the Sponsor typically allows to dealers and other selling agents for
purchases by investors who purchase Units through registered investment
advisers, certified financial planners or registered broker/dealers who
in each case either charge periodic fees for financial planning,
investment advisory or asset management services, or provide such
services in connection with the establishment of an investment account
for which a comprehensive "wrap fee" charge is imposed.
Page 2
Fundamental Value Growth Trust Series
FT Series
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 3
INSURANCE GROWTH TRUST SERIES
FT Series
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated July 31, 2000 PART ONE AND PART TWO
The Trusts. The Trusts consist of common stocks of stocks of companies
that are involved in several lines of insurance, including financial
guarantee, life and health, multi-line, and property and casualty. The
Trusts do not include Treasury Obligations. See "Portfolio" appearing in
Part One for each Trust.
The Objective of the Trusts. The objective of each Trust is to provide
potential for above-average capital appreciation by investing in a
diversified portfolio of companies that are involved in several lines of
insurance, including financial guarantee, life and health, multi-line,
and property and casualty ("Equity Securities"). There is, of course, no
guarantee that the objective of the Trusts will be achieved.
Portfolio. The Trusts consist of different issues of Equity Securities
of companies which are listed on a national securities exchange, The
Nasdaq Stock Market or are traded in the over-the-counter market. A
diversified portfolio helps to offset the risks normally associated with
such an investment, although it does not eliminate them entirely. The
companies selected for the Trusts have been researched and evaluated
using database screening techniques, fundamental analysis and the
judgment of the Sponsor's research analysts.
An investment in Units of the Trusts should be made with an
understanding of the risks involved with owning insurance companies,
including the fact that the insurance industry is subject to adverse
effects of volatile interest rates, economic recession, increased
competition, and the potential for increased regulation.
Companies involved in the insurance industry are engaged in
underwriting, reinsuring, selling, distributing or placing of property
and casualty, life or health insurance. Other growth areas within the
insurance industry include brokerage, reciprocals, claims processors and
multiline insurance companies. Multiline insurance companies provide
property and casualty coverage, as well as life and health insurance.
The Trusts may also invest in diversified financial companies with
subsidiaries (including insurance brokerage, reciprocals and claims
processors) engaged in underwriting, reinsuring, selling, distributing
or placing insurance with independent third parties.
Insurance company profits are affected by interest rate levels, general
economic conditions, and price and marketing competition. Property and
casualty insurance profits may also be affected by weather catastrophes
and other disasters. Life and health insurance profits may be affected
by mortality and morbidity rates. Individual companies may be exposed to
material risks including reserve inadequacy and the inability to collect
from reinsurance carriers. Insurance companies are subject to extensive
governmental regulation, including the imposition of maximum rate
levels, which may not be adequate for some lines of business. Proposed
or potential tax law changes may also adversely affect insurance
companies' policy sales, tax obligations, and profitability. In addition
to the foregoing, profit margins of these companies continue to shrink
due to the commoditization of traditional businesses, new competitors,
capital expenditures on new technology and the pressures to compete
globally.
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
In addition to the normal risks of business, companies involved in the
insurance industry are subject to significant risk factors, including
those applicable to regulated insurance companies, such as: (i) the
inherent uncertainty in the process of establishing property-liability
loss reserves, particularly reserves for the cost of environmental,
asbestos and mass tort claims, and the fact that ultimate losses could
materially exceed established loss reserves which could have a material
adverse effect on results of operations and financial condition; (ii)
the fact that insurance companies have experienced, and can be expected
in the future to experience, catastrophe losses which could have a
material adverse impact on their financial condition, results of
operations and cash flow; (iii) the inherent uncertainty in the process
of establishing property-liability loss reserves due to changes in loss
payment patterns caused by new claims settlement practices; (iv) the
need for insurance companies and their subsidiaries to maintain
appropriate levels of statutory capital and surplus, particularly in
light of continuing scrutiny by rating organizations and state insurance
regulatory authorities, and in order to maintain acceptable financial
strength or claims-paying ability rating; (v) the extensive regulation
and supervision to which insurance companies' subsidiaries are subject,
various regulatory initiatives that may affect insurance companies, and
regulatory and other legal actions; (vi) the adverse impact that
increases in interest rates could have on the value of an insurance
company's investment portfolio and on the attractiveness of certain of
its products; (vii) the need to adjust the effective duration of the
assets and liabilities of life insurance operations in order to meet the
anticipated cash flow requirements of its policyholder obligations; and
(vii) the uncertainty involved in estimating the availability of
reinsurance and the collectibility of reinsurance recoverables.
The state insurance regulatory framework has, during recent years, come
under increased federal scrutiny, and certain state legislatures have
considered or enacted laws that alter and, in many cases, increase state
authority to regulate insurance companies and insurance holding company
systems. Further, the National Association of Insurance Commissioners
("NAIC") and state insurance regulators are re-examining existing laws
and regulations, specifically focusing on insurance companies,
interpretations of existing laws and the development of new laws. In
addition, Congress and certain federal agencies have investigated the
condition of the insurance industry in the United States to determine
whether to promulgate additional federal regulation. The Sponsor is
unable to predict whether any state or federal legislation will be
enacted to change the nature or scope of regulation of the insurance
industry, or what effect, if any, such legislation would have on the
industry.
All insurance companies are subject to state laws and regulations that
require diversification of their investment portfolios and limit the
amount of investments in certain investment categories. Failure to
comply with these laws and regulations would cause non-conforming
investments to be treated as non-admitted assets for purposes of
measuring statutory surplus and, in some instances, would require
divestiture.
Environmental pollution clean-up is the subject of both federal and
state regulation. By some estimates, there are thousands of potential
waste sites subject to clean up. The insurance industry is involved in
extensive litigation regarding coverage issues. The Comprehensive
Environmental Response Compensation and Liability Act of 1980
("Superfund") and comparable state statutes ("mini-Superfund") govern
the clean-up and restoration by "Potentially Responsible Parties"
("PRP's"). Superfund and the mini-Superfunds ("Environmental Clean-up
Laws or "ECLs") establish a mechanism to pay for clean-up of waste sites
if PRP's fail to do so, and to assign liability to PRP's. The extent of
liability to be allocated to a PRP is dependent on a variety of factors.
Further, the number of waste sites subject to clean-up is unknown. Very
few sites have been subject to clean-up to date. The extent of clean-up
necessary and the assignment of liability has not been established. The
insurance industry is disputing many such claims. Key coverage issues
include whether Superfund response costs are considered damages under
the policies, when and how coverage is triggered, applicability of
pollution exclusions, the potential for joint and several liability and
definition of an occurrence. Similar coverage issues exist for clean up
and waste sites not covered under Superfund. To date, courts have been
inconsistent in their rulings on these issues. An insurer's exposure to
liability with regard to its insureds which have been, or may be, named
as PRPs is uncertain. Superfund reform proposals have been introduced in
Congress, but none have been enacted. There can be no assurance that any
Superfund reform legislation will be enacted or that any such
legislation will provide for a fair, effective and cost-efficient system
for settlement of Superfund related claims.
While current federal income tax law permits the tax-deferred
Page 2
accumulation of earnings on the premiums paid by an annuity owner and
holders of certain savings-oriented life insurance products, no
assurance can be given that future tax law will continue to allow such
tax deferrals. If such deferrals were not allowed, consumer demand for
the affected products would be substantially reduced. In addition,
proposals to lower the federal income tax rates through a form of flat
tax or otherwise could have, if enacted, a negative impact on the demand
for such products.
Public Offering Price. The applicable sales charge is reduced by a
discount as indicated below for aggregate volume purchases (except for
sales made pursuant to a "wrap fee account" or similar arrangements as
set forth below):
Percent of Percent of
Dollar Amount of Transaction Offering Net Amount
at Public Offering Price* Price Invested
____________________________ __________ __________
$ 50,000 but less than $100,000 0.25% 0.2506%
$100,000 but less than $250,000 0.50% 0.5025%
$250,000 but less than $500,000 1.00% 1.0101%
$500,000 or more 2.00% 2.0408%
* The breakpoint sales charges are also applied on a Unit basis
utilizing a breakpoint equivalent in the above table of $10 per Unit and
will be applied on whichever basis is more favorable to the investor.
The breakpoints will be adjusted to take into consideration purchase
orders stated in dollars which cannot be completely fulfilled due to the
requirement that only whole Units be issued.
It is the intention of the Sponsor to qualify Units of the Trusts for
sale in a number of states. Sales will be made to dealers and other
selling agents at prices which represent a concession or agency
commission of 65% of the then current maximum sales charge.
Any such reduced sales charge shall be the responsibility of the selling
broker/dealer, bank or other selling agent. The reduced sales charge
structure will apply on all purchases of Units in a Trust by the same
person on any one day from any one broker/dealer, bank or other selling
agent. Additionally, Units purchased in the name of the spouse of a
purchaser or in the name of a child of such purchaser under 21 years of
age will be deemed, for the purposes of calculating the applicable sales
charge, to be additional purchases by the purchaser. The reduced sales
charges will also be applicable to a trustee or other fiduciary
purchasing securities for a single trust estate or single fiduciary
account. The purchaser must inform the broker/dealer, bank or other
selling agent of any such combined purchase prior to the sale in order
to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, siblings, mothers-in-law, fathers-in-law, sons-in-law and
daughters-in-law, and trustees, custodians or fiduciaries for the
benefit of such persons) of the Sponsor, broker/dealers, banks or other
selling agents and their subsidiaries and vendors providing services to
the Sponsor, Units may be purchased at the Public Offering Price less
the concession the Sponsor typically allows to dealers and other selling
agents.
Units may be purchased at the Public Offering Price less the concession
the Sponsor typically allows to dealers and other selling agents for
purchases by investors who purchase Units through registered investment
advisers, certified financial planners or registered broker/dealers who
in each case either charge periodic fees for financial planning,
investment advisory or asset management services, or provide such
services in connection with the establishment of an investment account
for which a comprehensive "wrap fee" charge is imposed.
Page 3
Insurance Growth Trust Series
FT Series
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 4
INTERNET GROWTH TRUST SERIES
The First Trust (registered trademark) Special Situations Trust
FT Series
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated April 28, 2000 PART ONE AND PART TWO
The Trusts. The Trusts consist of common stocks issued by companies
that, in the Sponsor's opinion, as of the Initial Date of Deposit, are
ideally positioned to take advantage of the rapid growth of the
Internet. The Trusts do not include Treasury Obligations. See
"Portfolio" appearing in Part One for each Trust.
The Objective of the Trusts. The objective of each Trust is to provide
the potential for above-average capital appreciation by investing a
Trust's portfolio in common stocks as described above ("Equity
Securities"). There is, of course, no guarantee that the objective of
the Trusts will be achieved.
Portfolio. The Trusts consist of different issues of Equity Securities,
all of which are listed on a national securities exchange, The Nasdaq
Stock Market or are traded in the over-the-counter market. A portfolio
of a Trust is diversified across many related sectors:
access/information providers, communications equipment, computer
networking, computer services, computers, Internet content, on-line
brokerage, semiconductors and software. Diversifying a portfolio helps
to offset the risks normally associated with equity investments,
although risk cannot be entirely eliminated. This type of
diversification provides a convenient, efficient way for the investor to
own stocks in a number of companies without considerable time and
capital commitments.
In the Sponsor's opinion, as of the Initial Date of Deposit, the growing
numbers of users and web sites along with expanding capabilities make
the Trusts an attractive investment opportunity. At the Initial Date of
Deposit, more than 58 million adults were on-line in the United States
alone, and the number of on-line users is expected to dramatically
increase in the future. In fact, at the time of the Initial Date of
Deposit, a new computer was being added to the Internet approximately
every four seconds, and nearly 3,000 new websites were being added every
day. Rising standards of living and more disposable income worldwide,
combined with faster, more efficient and affordable technology will
dramatically expand the potential number of users. In addition, improved
security measures are helping to increase the number of consumer
transactions over the Web. Corporations have made huge strides in the
way they conduct business-to-business transactions over the Internet,
making it more commercially feasible for the mass market. Business-to-
business electronic commerce was estimated to exceed $20 billion by
2000, up from an estimated $9.5 billion in 1997. Consolidation and
mergers among companies involved with the Internet are increasing.
Technological improvement like high-speed data and video transmission
through cable connections are helping to fuel this growth. Overall, new
technologies are accepted more rapidly than ever. In fact, while it took
35 years for one-quarter of U.S. households to own a telephone, the
Internet reached the same level of penetration in only seven years. All
of these factors lead the Sponsor to believe the companies selected for
the portfolios stand to benefit from the combination of increased
demand, faster and more efficient services, and more affordable equipment.
The companies selected for the Trusts have been researched and evaluated
using database screening techniques, fundamental analysis, and the
judgment of the Sponsor's research analysts. To help reduce risk, the
Trusts avoid small companies, newly-issued stocks, and stocks with
little or no earnings. In general, the Sponsor believed, as of the
Initial Date of Deposit, the companies selected have above-average
growth prospects for sales and earnings, established market shares for
their services, and lower than average debt. In addition, the Sponsor
believes that employing a "buy and hold" philosophy encourages investors
to be disciplined and patient while looking at the future prospects of
the companies, rather than focusing on short-term performance.
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
The Sponsor believed, as of the Initial Date of Deposit, that the
enormous growth potential of the Internet offers a compelling investment
opportunity. However, since the Internet is in the early stages of its
development and the direction of its evolution is unpredictable,
tremendous risks exist. It is important to note that companies engaged
in business related to the Internet are subject to fierce competition
and their products and services may be subject to rapid obsolescence.
There is, however, no assurance that the objective of the Trusts will be
achieved.
An investment in Units of the Trusts should be made with an
understanding of the risks such an investment may entail. The Trusts
concentrate their Equity Securities in the technology industry and, as a
result, the value of the Units of a Trust may be susceptible to factors
affecting the technology industry.
Technology companies generally include companies involved in the
development, design, manufacture and sale of computers and peripherals,
software, Internet access/information providers, semiconductors,
computer-related equipment, computer networks, communications systems,
telecommunications products, electronic products and other related
products, systems and services. The market for these products,
especially those specifically related to the Internet, is characterized
by rapidly changing technology, rapid product obsolescence, cyclical
market patterns, evolving industry standards and frequent new product
introductions. The success of the issuers of the Equity Securities
depends in substantial part on the timely and successful introduction of
new products. An unexpected change in one or more of the technologies
affecting an issuer's products or in the market for products based on a
particular technology could have a material adverse affect on an
issuer's operating results. Furthermore, there can be no assurance that
the issuers of the Equity Securities will be able to respond in a timely
manner to compete in the rapidly developing marketplace.
Based on trading history of common stock, factors such as announcements
of new products or development of new technologies and general
conditions of the industry have caused and are likely to cause the
market price of high-technology common stocks to fluctuate
substantially. In addition, technology company stocks have experienced
extreme price and volume fluctuations that often have been unrelated to
the operating performance of such companies. This market volatility may
adversely affect the market price of the Equity Securities and therefore
the ability of a Unit holder to redeem Units at a price equal to or
greater than the original price paid for such Units.
Some key components of certain products of technology issuers are
currently available only from single sources. There can be no assurance
that in the future suppliers will be able to meet the demand for
components in a timely and cost effective manner. Accordingly, an
issuer's operating results and customer relationships could be adversely
affected by either an increase in price for, or an interruption or
reduction in supply of, any key components. Additionally, many
technology issuers are characterized by a highly concentrated customer
base consisting of a limited number of large customers who may require
product vendors to comply with rigorous industry standards. Any failure
to comply with such standards may result in a significant loss or
reduction of sales. Because many products and technologies of technology
companies are incorporated into other related products, such companies
are often highly dependent on the performance of the personal computer,
electronics and telecommunications industries. There can be no assurance
that these customers will place additional orders, or that an issuer of
Equity Securities will obtain orders of similar magnitude as past orders
from other customers. Similarly, the success of certain technology
companies is tied to a relatively small concentration of products or
technologies. Accordingly, a decline in demand of such products,
technologies or from such customers could have a material adverse impact
on issuers of the Equity Securities.
Many technology companies rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their
proprietary rights in their products and technologies. There can be no
assurance that the steps taken by the issuers of the Equity Securities
to protect their proprietary rights will be adequate to prevent
misappropriation of their technology or that competitors will not
independently develop technologies that are substantially equivalent or
superior to such issuers' technology. In addition, due to the increasing
public use of the Internet, it is possible that other laws and
regulations may be adopted to address issues such as privacy, pricing,
characteristics, and quality of Internet products and services. For
example, recent proposals would prohibit the distribution of obscene,
lascivious or indecent communications on the Internet. The adoption of
any such laws could have a material adverse impact on the securities in
a Trust.
Page 2
Like many areas of technology, the semiconductor business environment is
highly competitive, notoriously cyclical and subject to rapid and often
unanticipated change. Recent industry downturns have resulted, in part,
from weak pricing, persistent overcapacity, slowdown in Asian demand and
a shift in retail personal computer sales toward the low end, or "sub-
$1,000" segment. Industry growth is dependent upon several factors,
including: the rate of global economic expansion; demand for products
such as personal computers and networking and communications equipment;
excess productive capacity and the resultant effect on pricing; and the
rate of growth in the market for low-priced personal computers.
Public Offering Price. The applicable sales charge is reduced by a
discount as indicated below for aggregate volume purchases (except for
sales made pursuant to a "wrap fee account" or similar arrangements as
set forth below):
Percent of Percent of
Dollar Amount of Transaction Offering Net Amount
at Public Offering Price* Price Invested
____________________________ _________ __________
$ 50,000 but less than $100,000 0.25% 0.2506%
$100,000 but less than $250,000 0.50% 0.5025%
$250,000 but less than $500,000 1.00% 1.0101%
$500,000 or more 2.00% 2.0408%
*The breakpoint sales charges are also applied on a Unit basis utilizing
a breakpoint equivalent in the above table of $10 per Unit and will be
applied on whichever basis is more favorable to the investor. The
breakpoints will be adjusted to take into consideration purchase orders
stated in dollars which cannot be completely fulfilled due to the
requirement that only whole Units be issued.
Sales will be made to dealers and other selling agents at prices which
reflect a concession or agency commission of 65% of the maximum sales
charge.
Any such reduced sales charge shall be the responsibility of the selling
broker/dealer, bank or other selling agent. The reduced sales charge
structure will apply on all purchases of Units in a Trust by the same
person on any one day from any one broker/dealer, bank or other selling
agent. An investor may aggregate purchases of Units of an Internet
Growth Trust and an Internet Growth & Treasury Trust for purposes of
qualifying for volume purchase discounts listed above. The aggregate
amount of Units of each Trust purchased will be used to determine the
applicable sales charge to be imposed on the purchase of Units of each
Trust. Additionally, Units purchased in the name of the spouse of a
purchaser or in the name of a child of such purchaser under 21 years of
age will be deemed, for the purposes of calculating the applicable sales
charge, to be additional purchases by the purchaser. The reduced sales
charges will also be applicable to a trustee or other fiduciary
purchasing securities for a single trust estate or single fiduciary
account. The purchaser must inform the broker/dealer, bank or other
selling agent of any such combined purchase prior to the sale in order
to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, siblings, mothers-in-law, fathers-in-law, sons-in-law and
daughters-in-law, and trustees, custodians or fiduciaries for the
benefit of such persons) of the Sponsor, broker/dealers, banks or other
selling agents and their subsidiaries and vendors providing services to
the Sponsor, Units may be purchased at the Public Offering Price less
the concession the Sponsor typically allows to dealers and other selling
agents.
Units may be purchased at the Public Offering Price less the concession
the Sponsor typically allows to dealers and other selling agents for
purchases (see "Public Offering-How are Units Distributed?" in Part Two
of the Prospectus) by investors who purchase Units through registered
investment advisers, certified financial planners or registered
broker/dealers who in each case either charge periodic fees for
financial planning, investment advisory or asset management services, or
provide such services in connection with the establishment of an
investment account for which a comprehensive "wrap fee" charge is imposed.
Page 3
INTERNET GROWTH TRUST SERIES
The First Trust (registered trademark) Special Situations Trust
FT Series
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 4
MEDIA AND ENTERTAINMENT GROWTH TRUST SERIES
The First Trust(registered trademark) Special Situations Trust
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated June 30, 2000 PART ONE AND PART TWO
The Trusts. The Trusts consist of common stocks issued primarily by
media and entertainment companies, including common stock of foreign
issuers in American Depositary Receipt ("ADR") form. The Trusts do not
include Treasury Obligations. See "Portfolio" appearing in Part One for
each Trust.
The Objective of the Trusts. The objective of each Trust is to provide
for capital appreciation potential by investing a Trust's portfolio in
common stocks issued primarily by media and entertainment companies,
including common stock of foreign issuers in American Depositary Receipt
("ADR") form ("Equity Securities"). There is, of course, no guarantee
that the objective of the Trusts will be achieved.
Portfolio. The Trusts consist of different issues of Equity Securities
of companies involved in the media and entertainment industry, including
advertising, broadcasting, cable television, entertainment and
publishing companies, all of which are listed on a national securities
exchange, The Nasdaq Stock Market or are traded in the over-the-counter
market.
An investment in companies in the media and entertainment industry
should be made with an understanding of the many factors which may have
an adverse impact on a particular company, or on the industry in
general. Certain of these include the cyclicality of revenues and
earnings of companies in the industry, the availability of discretionary
income of individuals, changing consumer tastes and interests, fierce
competition in the industry and increasing governmental regulations.
Certain of these companies may derive a significant portion of their
revenues from the discretionary income of individuals, which may be
adversely affected by economic downturns which reduce the amount of
personal income available for non-essential items. Many of the products
offered by the companies in the entertainment industry are subject to
the risks of rapid obsolescence and changing consumer tastes and
interests. In addition, certain types of companies are subject to
various government regulations. For example, cable and
telecommunications companies are subject to state and federal
regulations, affecting the price of their services and the kinds of
service which they may offer. Certain media communications companies are
subject to Federal Communications Commission regulations. As a result of
the foregoing, the Equity Securities in the Trusts may be subject to
rapid price volatility. The Sponsor is unable to predict what impact the
foregoing factors will have on the Equity Securities during the life of
the Trusts.
For a discussion of American Depositary Receipts ("ADRs"), see "What are
Equity Securities?" in Part Two of the Prospectus.
Public Offering Price. The applicable sales charge is reduced by a
discount as indicated below for volume purchases (except for sales made
pursuant to a "wrap fee account" or similar arrangements as set forth
below):
Percent of Percent of
Offering Net Amount
Number of Units Price Invested
_______________ __________ __________
5,000 but less than 10,000 0.25% 0.2506%
10,000 but less than 25,000 0.50% 0.5025%
25,000 but less than 50,000 1.00% 1.0101%
50,000 or more 2.00% 2.0408%
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
Sales will be made to dealers and other selling agents at prices which
represent a concession or agency commission of 65% of the then current
maximum sales charge.
Any such reduced sales charge shall be the responsibility of the selling
broker/dealer, bank or other selling agent. The reduced sales charge
structure will apply on all purchases of Units in a Trust by the same
person on any one day from any one broker/dealer, bank or other selling
agent. Additionally, Units purchased in the name of the spouse of a
purchaser or in the name of a child of such purchaser under 21 years of
age will be deemed, for the purposes of calculating the applicable sales
charge, to be additional purchases by the purchaser. The reduced sales
charges will also be applicable to a trustee or other fiduciary
purchasing securities for a single trust estate or single fiduciary
account. The purchaser must inform the broker/dealer, bank or other
selling agent of any such combined purchase prior to the sale in order
to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, siblings, mothers-in-law, fathers-in-law, sons-in-law and
daughters-in-law, and trustees, custodians or fiduciaries for the
benefit of such persons) of the Sponsor, broker/dealers, banks or other
selling agents and their subsidiaries, Units may be purchased at the
Public Offering Price less the concession the Sponsor typically allows
to dealers and other selling agents.
Units may be purchased at the Public Offering Price less the concession
the Sponsor typically allows to dealers and other selling agents for
purchases (see "Public Offering-How are Units Distributed?" in Part Two
of this Prospectus) by investors who purchase Units through registered
investment advisers, certified financial planners or registered
broker/dealers who in each case either charge periodic fees for
financial planning, investment advisory or asset management services, or
provide such services in connection with the establishment of an
investment account for which a comprehensive "wrap fee" charge is imposed.
Page 2
Media and Entertainment Growth Trust Series
The First Trust(registered trademark) Special Situations Trust
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 3
MEDICAL GROWTH TRUST SERIES
FT Series
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated July 31, 2000 PART ONE AND PART TWO
The Trusts. The Trusts consist of common stocks of medical companies
that have active participation in the expanding markets of medical
devices, medical products and pharmaceuticals/biotech. The Trusts do not
include Treasury Obligations. See "Portfolio" appearing in Part One for
each Trust.
The Objective of the Trusts. The objective of each Trust is to provide
potential for above-average capital appreciation through an investment
in a diversified portfolio of common stocks of medical companies that
have active participation in the expanding markets of medical devices,
medical products and pharmaceuticals/biotech ("Equity Securities").
There is, of course, no guarantee that the objective of the Trusts will
be achieved.
Portfolio. The Trusts consist of different issues of Equity Securities
of companies which are listed on a national securities exchange, The
Nasdaq Stock Market or are traded in the over-the-counter market.
It is important to note that companies engaged in the medical industry
are subject to government regulation of their products and services,
increasing competition, termination of patent protection, and the risk
that technological advances will render their products or services
obsolete.
An investment in the Trusts should be made with an understanding of the
problems and risks inherent in the medical sector in general.
Medical companies have risks unique to their sector of the healthcare
field. These companies are subject to governmental regulation of their
products and services, a factor which could have a significant and
possibly unfavorable effect on the price and availability of such
products or services. Furthermore, such companies face the risk of
increasing competition from new products or services, generic drug
sales, termination of patent protection for drug or medical supply
products and the risk that technological advances will render their
products obsolete. The research and development costs of bringing a drug
to market are substantial, and include lengthy governmental review
processes with no guarantee that the product will ever come to market.
Many of these companies may have losses and not offer certain products
for several years. Such companies may also have persistent losses during
a new product's transition from development to production, and revenue
patterns may be erratic.
As the population of the United States ages, the companies involved in
the healthcare field will continue to search for and develop new drugs,
medical products and medical services through advanced technologies and
diagnostics. On a worldwide basis, such companies are involved in the
development and distributions of drugs, vaccines, medical products and
medical services. These activities may make the healthcare and medical
services sector very attractive for investors seeking the potential for
growth in their investment portfolio. However, there are no assurances
that a Trust's objective will be met.
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
Legislative initiatives concerning healthcare are proposed in Congress
from time to time. These proposals span a wide range of topics,
including cost and price controls (which might include a freeze on the
prices of prescription drugs), national health insurance, incentives for
competition in the provision of healthcare services, tax incentives and
penalties related to healthcare insurance premiums and promotion of pre-
paid healthcare plans. The Sponsor is unable to predict the effect of
any of these proposals, if enacted, on the issuers of Equity Securities
in the Trusts.
Certain of the Equity Securities in the Trusts are issued by small-cap
companies (market capitalization between $100 million and $1 billion).
While historically small-cap company stocks have outperformed the stocks
of large companies, the former have customarily involved more investment
risk as well. Small-cap companies may have limited product lines,
markets or financial resources; may lack management depth or experience;
and may be more vulnerable to adverse general market or economic
developments than large companies. Some of the companies in which a
Trust may invest may distribute, sell or produce products which have
recently been brought to market and may be dependent on key personnel.
The prices of small company securities are often more volatile than
prices associated with large company issues, and can display abrupt or
erratic movements at times, due to limited trading volumes and less
publicly available information. Also, because small cap companies
normally have fewer shares outstanding and these shares trade less
frequently than large companies, it may be more difficult for a Trust to
buy and sell significant amounts of such shares without an unfavorable
impact on prevailing market prices. The securities of small companies
are often traded over-the-counter and may not be traded in the volumes
typical on a national securities exchange.
Public Offering Price. The applicable sales charge is reduced by a
discount as indicated below for aggregate volume purchases (except for
sales made pursuant to a "wrap fee account" or similar arrangements as
set forth below):
Percent of Percent of
Dollar Amount of Transaction Offering Net Amount
at Public Offering Price* Price Invested
____________________________ __________ __________
$ 50,000 but less than $100,000 0.25% 0.2506%
$100,000 but less than $250,000 0.50% 0.5025%
$250,000 but less than $500,000 1.00% 1.0101%
$500,000 or more 2.00% 2.0408%
* The breakpoint sales charges are also applied on a Unit basis
utilizing a breakpoint equivalent in the above table of $10 per Unit and
will be applied on whichever basis is more favorable to the investor.
The breakpoints will be adjusted to take into consideration purchase
orders stated in dollars which cannot be completely fulfilled due to the
requirement that only whole Units be issued.
It is the intention of the Sponsor to qualify Units of the Trusts for
sale in a number of states. Sales will be made to dealers and other
selling agents at prices which represent a concession or agency
commission of 65% of the then current maximum sales charge.
Any such reduced sales charge shall be the responsibility of the selling
broker/dealer, bank or other selling agent. The reduced sales charge
structure will apply on all purchases of Units in a Trust by the same
person on any one day from any one broker/dealer, bank or other selling
agent. Additionally, Units purchased in the name of the spouse of a
purchaser or in the name of a child of such purchaser under 21 years of
age will be deemed, for the purposes of calculating the applicable sales
charge, to be additional purchases by the purchaser. The reduced sales
charges will also be applicable to a trustee or other fiduciary
purchasing securities for a single trust estate or single fiduciary
account. The purchaser must inform the broker/dealer, bank or other
selling agent of any such combined purchase prior to the sale in order
to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, siblings, mothers-in-law, fathers-in-law, sons-in-law and
daughters-in-law, and trustees, custodians or fiduciaries for the
benefit of such persons) of the Sponsor, broker/dealers, banks or other
selling agents and their subsidiaries and vendors providing services to
the Sponsor, Units may be purchased at the Public Offering Price less
the concession the Sponsor typically allows to dealers and other selling
agents.
Page 2
Units may be purchased at the Public Offering Price less the concession
the Sponsor typically allows to dealers and other selling agents for
purchases by investors who purchase Units through registered investment
advisers, certified financial planners or registered broker/dealers who
in each case either charge periodic fees for financial planning,
investment advisory or asset management services, or provide such
services in connection with the establishment of an investment account
for which a comprehensive "wrap fee" charge is imposed.
Page 3
Medical Growth Trust Series
FT Series
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 4
CONTENTS OF POST-EFFECTIVE AMENDMENT
OF REGISTRATION STATEMENT
This Post-Effective Amendment of Registration Statement
comprises the following papers and documents:
The facing sheet
The prospectus
The signatures
The Consent of Independent Auditors
S-1
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the Registrant, FT 250 COMMUNICATIONS GROWTH TRUST, SERIES 2;
FUNDAMENTAL VALUE TRUST SERIES; INSURANCE GROWTH TRUST SERIES;
INTERNET GROWTH TRUST, SERIES 4; MEDIA & ENTERTAINMENT GROWTH
TRUST, SERIES 2; MEDIAL GROWTH TRUST SERIES, certifies that it
meets all of the requirements for effectiveness of this
Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this Post-Effective
Amendment of its Registration Statement to be signed on its
behalf by the undersigned thereunto duly authorized in the
Village of Lisle and State of Illinois on July 31, 2000.
FT 250
COMMUNICATIONS GROWTH TRUST, SERIES 2
FUNDAMENTAL VALUE TRUST SERIES
INSURANCE GROWTH TRUST SERIES
INTERNET GROWTH TRUST, SERIES 4
MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES
2
MEDIAL GROWTH TRUST SERIES
(Registrant)
By NIKE SECURITIES L.P.
(Depositor)
By Robert M. Porcellino
Senior Vice President
Pursuant to the requirements of the Securities Act of 1933,
this Post-Effective Amendment of Registration Statement has been
signed below by the following person in the capacity and on the
date indicated:
Signature Title Date
David J. Allen Sole Director of )
Nike Securities )
Corporation, ) July 31, 2000
the General Partner )
of Nike Securities L.P. )
)
) Robert M. Porcellino
) Attorney-in-Fact**
* The title of the person named herein represents his capacity
in and relationship to Nike Securities L.P., Depositor.
** An executed copy of the related power of attorney was filed
with the Securities and Exchange Commission in connection
with the Amendment No. 1 to Form S-6 of The First Trust
Combined Series 258 (File No. 33-63483) and the same is
hereby incorporated herein by this reference.
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption
"Experts" and to the use of our report dated July 9, 2000 in this
Post-Effective Amendment to the Registration Statement and
related Prospectus of FT Series dated July 26, 2000.
ERNST & YOUNG LLP
Chicago, Illinois
July 25, 2000