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THE
COMPETITIVE EDGE
"BEST IDEAS" PORTFOLIO
OCTOBER 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 October 15, 1998
SIZE OF OFFERING
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Aggregate Value of Securities.... $249,111.75
Number of Units.................. 25,000
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PRICE
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Public Offering Price Per Unit
(including sales charge)..... $10.0561
Minimum Purchase: $100
Public Offering Price Per 100
Units (including sales
charge)...................... $1,005.61
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RECORD DATES
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March 1, 1999 and January 21, 2000
DISTRIBUTION DATES
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March 15, 1999 and on or about January 28, 2000
TERMINATION DATE
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January 21, 2000
SALES CHARGE
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The sales charge is 2.90% of the Public Offering Price of which $20 per 100
Units is deferred. The deferred sales charge generally is paid from the proceeds
of securities sold each month commencing January 29, 1999 ($2.50 per 100 Units
per month for 8 months). 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 $100
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 department's October, 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. 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 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 continually throughout the year.
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 October 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 OCTOBER 1998
ON DATE OF DEPOSIT, OCTOBER 15, 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. $ 6,125.00 175 2.04% 2.46% $ 35.0000
2. AXA-UAP 6,255.78 61 0.71 2.51 102.5538
3. American Express Co. 7,031.00 79 0.92 2.82 89.0000
4. American Home Products Corporation 6,520.50 138 1.61 2.62 47.2500
5. The Bank of New York Company, Inc. 6,773.63 223 2.60 2.72 30.3750
6. Bayerische Motorenwerke AG (BMW) 6,488.71 10 0.12 2.60 648.8714
7. The Boeing Co. 6,312.38 186 2.17 2.53 33.9375
8. Chevron Corp. 6,340.88 74 0.86 2.55 85.6875
9. Cisco Systems Inc. 6,946.38 122 1.42 2.79 56.9375
10. Coca-Cola Enterprises Inc. 6,047.38 202 2.35 2.43 29.9375
11. Computer Associates International, 6,520.50 184 2.14 2.62 35.4375
Inc.
12. Diageo PLC 6,175.21 664 7.74 2.48 9.3000
13. E.I. DuPont de Nemours & Co. 6,352.50 105 1.22 2.55 60.5000
14. Emerson Electric Co. 6,443.75 100 1.16 2.59 64.4375
15. FDX Corp. 6,768.13 130 1.51 2.72 52.0625
16. Fuji Photo Film Co. Ltd. 6,480.23 181 2.11 2.60 35.8024
17. General Electric Co. 6,642.00 81 0.94 2.67 82.0000
18. HSBC Holdings 4,426.19 211 2.46 1.78 20.9772
19. Halliburton Co. 6,586.25 220 2.56 2.64 29.9375
20. Heineken N.V. 6,474.21 134 1.56 2.60 48.3150
21. Holderbank Financiere Glaris AG 6,932.51 6 0.07 2.78 1155.4177
22. Intel Corp. 6,257.63 74 0.86 2.51 84.5625
23. Eli Lilly and Company 6,311.25 85 0.99 2.53 74.2500
24. MAN AG 3,000.18 9 0.10 1.20 333.3538
25. Medtronic, Inc. 6,578.63 106 1.23 2.64 62.0625
26. Microsoft Corp. 6,748.00 64 0.75 2.71 105.4375
27. Nestle S.A. 6,253.78 3 0.03 2.51 2084.5944
28. News Corp. Ltd. 6,126.63 1224 14.26 2.46 5.0054
29. Quintiles Transnational Corp. 3,250.00 65 0.76 1.30 50.0000
30. Schlumberger Ltd. 6,550.38 139 1.62 2.63 47.1250
31. Siebe PLC 5,835.28 1526 17.78 2.34 3.8239
32. Skandia Forsakring 6,223.53 503 5.86 2.50 12.3728
33. Sony Corp. 6,115.32 90 1.05 2.45 67.9480
34. Southern Company 6,458.25 218 2.54 2.59 29.6250
35. Time Warner Inc. 6,699.00 77 0.90 2.69 87.0000
36. TOTAL S.A. 5,931.97 51 0.59 2.38 116.3132
37. UPM-Kymmene OY 6,694.09 283 3.30 2.69 23.6540
38. Unilever PLC 6,231.81 643 7.49 2.50 9.6918
39. Wal-Mart Stores 6,656.38 103 1.20 2.67 64.6250
40. Wolters Kluwer N.V. 6,546.52 35 0.41 2.63 187.0433
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$ 249,111.75 8,584
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