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THE
COMPETITIVE EDGE
"BEST IDEAS" PORTFOLIO
JULY 1998
(A Unit Investment Trust)
- - FIXED PORTFOLIO
- - CAPITAL APPRECIATION POTENTIAL
- - GLOBAL DIVERSIFICATION
- - EASY LIQUIDITY
UNITS OF THE TRUST ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND THE UNITS ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. INVESTMENT IN UNITS OF
THE TRUST IS SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED.
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Summary of Essential Information
as of July 17, 1998
SIZE OF OFFERING
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Aggregate Value of Securities.... $246,130.55
Number of Units.................. 25,000
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PRICE
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Public Offering Price Per Unit
(including sales charge)..... $9.9333
Minimum Purchase: $1,000
Public Offering Price Per 100
Units (including sales
charge)...................... $993.33
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RECORD DATES
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December 1, 1998, June 1, 1999 and March 31, 2000
DISTRIBUTION DATES
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December 15, 1998, June 15, 1999 and on or about April 7, 2000
TERMINATION DATE
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March 31, 2000
SALES CHARGE
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The one-year sales charge is 2.90% of the Public Offering Price of which $20 per
100 Units is deferred. The one-year deferred sales charge generally is paid from
the proceeds of securities sold each month commencing September 30, 1998 ($2.00
per 100 Units per month for 10 months). The additional six-month deferred sales
charge of $10 per 100 units applies to any unitholder holding units on September
30, 1999. In such case, the total sales charge would be 3.9% (assuming a $10 per
unit offering price). Volume discounts begin on orders of $25,000 or more.
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TRUSTEE SPONSOR
The Bank of New York Dean Witter Reynolds
101 Barclay Street Inc.
New York, NY 10286 2 World Trade Center
New York, NY 10048
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MORGAN STANLEY DEAN WITTER IS A SERVICE MARK OF MORGAN STANLEY DEAN WITTER &
CO.
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INVEST IN THE 40 "BEST IDEAS" STOCKS IN TODAY'S GLOBAL
MARKET PLACE FOR AS LITTLE AS $1,000 ($250 FOR IRAS)
YOUR EDGE FOR GLOBAL INVESTING
The Morgan Stanley Dean Witter Competitive Edge "Best Ideas" Portfolio brings
together the research, the expertise and the diversification needed to invest in
today's global market place. This unit investment trust features a fixed
Portfolio of professionally selected stocks, representing Morgan Stanley Dean
Witter (MSDW) Global Equity Research group's July, 1998 Competitive Edge "Best
Ideas" list of common stocks. With the purchase of the Competitive Edge unit
trust, the investor has access to a portfolio that encompasses a world-class
collection of companies--each of which is considered by MSDW to be a global
leader within its industry.
FULLY LIQUID INVESTMENT
All or a portion of your units may be sold at any time. The price received will
be based upon the then current market value of the securities in the portfolio
(including deductions for any remaining deferred sales charge), which may be
more or less than the original price paid.
AUTOMATIC DIVIDEND REINVESTMENT
Investors may elect to have distributions automatically reinvested in additional
units of the portfolio, subject to any remaining deferred sales charge.
GLOBAL DIVERSIFICATION
The Competitive Edge "Best Ideas" Trust helps reduce risk by investing in a 40
stock portfolio. Although there are certain risks associated with investment in
common stocks, the Trust helps reduce risk because an investment is divided
among 40 stocks from various global industry groups. It would be difficult for
the average investor in individual stocks to achieve a comparable level of
diversification, without making a substantial capital commitment or incurring
odd lot charges.
SUITABLE FOR RETIREMENT ACCOUNTS
This Trust may be an attractive investment vehicle for a self-directed IRA or
self-employed retirement plan ("Keogh plan"). Unless held in an IRA or other
tax-deferred vehicle, there may be current tax consequences associated with an
investment in this type of unit investment trust. As a capital
appreciation-oriented investment it may be a suitable complement to help
increase the growth potential of an investor's overall portfolio.
SHORT-TERM LIFE
Unitholders may choose to hold their units for approximately one year. They may
also choose to hold their units for approximately 18 months for an additional
deferred sales charge of approximately 1.00% (total sales charge of
approximately 3.90%). The portfolio will then either be liquidated or
distributed to unitholders in-kind at their election. Investors may, of course,
sell or redeem their units at any time prior to the Trust's termination.
Although the Trust is an approximately one and one half-year investment, and
many investors may choose to hold units for less time, the strategy is
long-term. Investors should consider reinvesting in successive trusts--for
example, for at least three to five years--to take advantage of the long-term
strategy.
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FOR A COPY OF THE PROSPECTUS CONTAINING MORE COMPLETE INFORMATION INCLUDING
CHARGES, EXPENSES AND RISKS, CONTACT YOUR FINANCIAL ADVISOR. READ THE PROSPECTUS
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
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RISKS
Investors should note that MSDW Global Equity Research currently reviews and
updates its Competitive Edge Best Ideas list on a quarterly basis. The list is
expected to change, and may substantially change, over the life of the Trust.
The portfolio of the Trust is an unmanaged, fixed portfolio. It is based on a
longer term strategy, taking the July 1998 Competitive Edge Best Ideas list and
holding these stocks for the life of the Trust. Regardless of any changes to the
list, the identity and proportionate relationship of the Trust's securities is
expected to remain the same as shown in "Schedule of Portfolio Securities".
Therefore, the performance of the Trust will vary from the list, which is
continually updated.
The Trust is not an appropriate investment for those seeking high current income
or capital preservation. Investors must be able and willing to assume the risks
associated with equity investing in a fixed portfolio of common stocks. Risks of
investing in common stocks such as the Trust's securities include price
volatility resulting from factors affecting particular common stock and the
equity markets in general. Equity markets have been at historically high levels
and no assurance can be given that these levels will continue.
In addition, the Portfolio will contain securities of non-U.S. issuers, which
may involve risks that are different from those involved in holding securities
of domestic issuers. These include currency risk, the risk of future political
and economic developments, as well as price volatility. Read the prospectus for
more complete risk information.
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SCHEDULE OF PORTFOLIO SECURITIES
THE COMPETITIVE EDGE "BEST IDEAS" PORTFOLIO JULY 1998
ON DATE OF DEPOSIT, JULY 17, 1998
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PROPORTIONATE PERCENTAGE
COST OF RELATIONSHIP OF AGGREGATE PRICE PER
PORTFOLIO SECURITIES NUMBER OF BETWEEN NO. MARKET VALUE SHARE TO
NO. NAME OF COMMON STOCK ISSUER TO TRUST SHARES OF SHARES OF TRUST TRUST
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1. AES Corp. $ 6,288.00 128 2.26% 2.55% $ 49.1250
2. AXA-UAP 6,657.20 48 0.85 2.70 138.6916
3. American Express Co. 6,366.25 55 0.97 2.59 115.7500
4. American Home Products Corp. 6,665.06 123 2.17 2.71 54.1875
5. The Bank of New York Company, Inc. 6,589.94 97 1.71 2.68 67.9375
6. Bayerische Motorenwerke AG (BMW) 6,542.40 6 0.11 2.66 1,090.4002
7. The Boeing Co. 6,458.06 129 2.28 2.62 50.0625
8. Chevron Corp. 6,293.75 76 1.34 2.56 82.8125
9. Cisco Systems, Inc. 6,583.50 66 1.17 2.67 99.7500
10. Citicorp 6,423.75 36 0.64 2.61 178.4375
11. Coca-Cola Enterprises, Inc. 6,249.75 156 2.76 2.54 40.0625
12. Computer Associates International, Inc. 6,552.00 112 1.98 2.66 58.5000
13. Diageo PLC 6,213.51 498 8.80 2.52 12.4769
14. Dresser Industries, Inc. 6,381.38 154 2.72 2.59 41.4375
15. E.I. Dupont de Nemours & Co. 6,335.63 93 1.64 2.57 68.1250
16. Emerson Electric Company 6,287.25 101 1.79 2.55 62.2500
17. FDX Corp. 6,414.13 97 1.71 2.61 66.1250
18. Fuji Photo Film Co. Ltd. 6,415.78 170 3.01 2.61 37.7399
19. General Electric Co. 6,478.06 67 1.18 2.63 96.6875
20. HSBC Holdings 6,483.44 255 4.51 2.63 25.4253
21. Holderbank Financiere Glaris AG 7,015.80 5 0.09 2.85 1,403.1594
22. Intel Corp. 6,234.38 75 1.33 2.53 83.1250
23. Eli Lilly and Co. 6,762.50 100 1.77 2.75 67.6250
24. MAN AG 2,450.04 6 0.11 1.00 408.3403
25. Medtronic, Inc. 6,287.81 95 1.68 2.55 66.1875
26. Michelin 6,754.95 105 1.86 2.74 64.3329
27. Microsoft Corp. 6,368.63 54 0.95 2.59 117.9375
28. Nestle S.A. 6,837.91 3 0.05 2.78 2,279.3044
29. News Corp. Ltd. 5,815.70 796 14.07 2.36 7.3062
30. Quintiles Transnational Corp. 2,401.00 49 0.87 0.98 49.0000
31. Sandvik AB 2,444.75 89 1.57 0.99 27.4691
32. Schlumberger Ltd. 6,114.06 91 1.61 2.48 67.1875
33. Siebe PLC 6,292.39 329 5.82 2.56 19.1258
34. Skandia Forsakring 6,618.21 377 6.66 2.69 17.5549
35. Sony Corp. 6,497.78 69 1.22 2.64 94.1707
36. Time Warner Inc. 6,774.50 68 1.20 2.75 99.6250
37. TOTAL S.A. 6,499.46 52 0.92 2.64 124.9896
38. UBS 6,411.79 15 0.27 2.61 427.4525
39. UPM-Kymmene OY 6,476.04 235 4.15 2.63 27.5576
40. Unilever PLC 6,394.01 577 10.20 2.60 11.0815
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$ 246,130.55 5,657
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