Defined Asset Funds(R)
Standard & Poor's Industrial Series 00C (5/8/00- Current
Portfolio Offering) / cusip: 29471Q655
Fund Overview
As of May 15, 2000
Closing NAV: 1.02513 Previous Close: 1.02078 Change: 0.00435 % Change +0.43000%
[graphic omitted]
The Objective:
The Portfolio seeks total return through a combination of current dividend
income and capital appreciation.
The Strategy:
The Select S&P Industrial Portfolio selects the 15 highest dividend-yielding
stocks in a pre- screened subgroup of the S&P Industrial Index.
The Select S&P Industrial Portfolio employs a disciplined "buy and hold"
strategy. Each year, we intend to reapply the screening process to select a new
Portfolio. You can roll your proceeds into the next Portfolio, if available, at
a reduced sales charge, or you can redeem your investment. Although each
Portfolio is a one-year investment, we recommend you stay with the Strategy for
at least three to five years for potentially more consistent results.
Offered By:
This portfolio is offered by Merrill Lynch (IND00C).
Portfolio Holdings
Dividend information for the securities listed below is available in the
prospectus for this Fund. Current security weightings (% of Portfolio) cannot
be used to calculate Fund performance.
As of May 16, 2000
- -----------------------------------------------------------------------
Security Symbol Price % of Portfolio
- -------- ------ ----- --------------
HERSHEY FOODS CORP COM HSY 51.31 7.03
ALBERTSONS INC COM ABS 34.63 6.95
CLOROX CO DEL COM CLX 38.75 6.91
AIR PRODS & CHEM INC COM APD 34.06 6.84
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As of May 16, 2000
- -----------------------------------------------------------------------
Security Symbol Price % of Portfolio
- -------- ------ ----- --------------
NEWELL RUBBERMAID INC NWL 27.44 6.73
TEXTRON INC COM TXT 65.56 6.69
EMERSON ELEC CO COM EMR 58.13 6.67
CONAGRA INC COM CAG 21.75 6.65
MAY DEPT STORES CO COM MAY 29.63 6.61
PITNEY BOWES INC COM PBI 41.25 6.57
ABBOTT LABS COM ABT 38.88 6.57
ROHM & HAAS CO COM ROH 38.88 6.57
Bestfoods Inc BFO 63.94 6.52
ALLTELL CORP COM AT 64.81 6.40
GENUINE PARTS CO COM GPC 25.94 6.36
Selection Methodology
Through a disciplined four-part screening process, the Select S&P Industrial
Portfolio looks for potential values in the equity market.
1. Defining the Universe: We begin with the S&P Industrial Index, a subset of
the S&P 500 Index, which includes only industrial stocks. Defined Asset
Funds then removes any stocks that are also in the Dow Jones Industrial
Average (DJIA).
2. Quality Screen: We only consider stocks that are ranked "A+" or "A" by
Standard & Poor's. Standard & Poor's determines these stock rankings using
a computerized system which focuses primarily on the growth and stability
of per-share earnings and dividends. It then assigns a symbol to each
stock, from "A+" for the highest ranked stocks to "D" for stocks Standard
& Poor's considers to be the most speculative. These rankings differ from
credit-worthiness rankings of bonds and are not intended to predict stock
price movements.
3. Market Capitalization: We then rank the stocks by market capitalization
and eliminate the lowest 25%. This allows the Portfolio to avoid smaller,
less-liquid issues.
4. Dividend Yield: Finally, we rank the remaining stocks according to
dividend yield. From this group, we select the 15 highest
dividend-yielding stocks of the Portfolio, whose prices may be
undervalued.
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Performance
Performance From Inception Through March 31, 2000 (including annual rollovers)
Series Inception Cumulative Average Most Recently Completed Return
Date Total Return Annual Total Portfolio
Return Offer to End Date
- -------------------------------------------------------------------------------
Series A 1/22/97 7.70% 2.35% 2/17/99 - 3/24/00 -19.41%
Series B 2/24/97 9.23% 2.89% 3/23/98 - 4/23/99 6.13%
Series C 4/21/97 12.51% 4.08% 4/27/98 - 6/4/99 12.29%
Series D 6/9/97 -5.51% -2.00% 6/15/98 - 7/23/99 7.93%
Series E 7/21/97 -5.18% -1.95% 7/27/98 - 8/27/99 1.39%
Series F 9/8/97 4.71% 1.81% 9/14/98 - 10/15/99 -1.91%
Series G 10/20/97 -5.23% -2.17% 10/26/98 - 12/3/99 5.03%
Series H 12/2/97 -9.73% -4.30% 12/14/98 - 1/14/00 -10.68%
Series J 1/8/98 -12.02% -5.59% 1/11/99 - 2/11/00 -25.77%
Fees & Expenses
Defining Your Costs
First-time investors pay an initial sales charge of about 1% when they buy. In
addition, all investors pay a deferred sales charge of $15.00 per 1,000 units,
about 1.50%.
As a % of Amount Per
Public Offering 1,000 Units
Price
- -------------------------------------------------------------------------------
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.50% $15.00
Maximum Sales Charge 2.50% $25.00
Creation and Development Fee 0.250% $2.48
(as a % of net assets on date of deposit - 5/8/00)
Estimated Annual Expenses 0.214% $2.11
(as a % of net assets on date of deposit)
Estimated Organization Costs $1.08
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If you sell your units before the termination date, the remaining balance of
your deferred sales charge will be deducted, along with the estimated costs of
selling Portfolio securities, from the proceeds you receive. If you roll over
to a successor Portfolio, if available, the initial sales charge on that
Portfolio will be waived. You will only pay the deferred sales charge on that
Portfolio.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Amount Purchased Total Sales Charge as a % of
Public Offering Price
- -------------------------------------------------------------------------------
Less than $50,000 2.50%
$50,000 to $99,999 2.25%
$100,000 to $249,000 1.75%
$250,000 to $999,999 1.50%
$1,000,000 or more .75%
Is this Fund best for you?
If you seek a combination of current dividend income and capital appreciation,
you may benefit from a professionally selected and supervised portfolio whose
risk is reduced by investing in equity securities of different issuers in a
variety of industries.
Risk Considerations
Please keep in mind the following factors when considering this investment.
Your financial professional will be happy to answer any questions you may have.
Portfolio results of this value-oriented Strategy may vary from the S&P
Industrial Index for various reasons. For example, the S&P Industrial Index
performance may be driven by stocks not held in the Portfolio, such as growth
stocks.
The Portfolio is designed for investors who can assume the risks associated
with equity investments, and may not be appropriate for investors seeking
capital preservation or current income.
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The value of your investment will fluctuate with the prices of the underlying
stocks. Stock prices can be volatile.
There can be no assurance that the Portfolio will meet its objective, that
dividend rates will be maintained, that stock prices will not decrease over the
life of the Portfolio or that the Portfolio will outperform the indices.
These stocks may have higher yields because they or their industries are
experiencing financial difficulties or are out of favor. There can be no
assurance that the market factors which caused these relatively low prices and
high yields will change.
Distributions and Taxes
Distribution Frequency (if any)
Four (4) per year
Reinvestment Options
By selecting the reinvestment option, you're choosing to have your distribution
payments used to purchase additional units of the fund (reinvestment), rather
than being paid directly to you. As such, your principal will increase each
distribution period, and because distribution payments are based in part on the
size of your invested principal, these payments may increase proportionately.
Taking part in the cycle of reinvestment may compound the returns of your
Defined Fund investment.
Tax Reporting
When seeking capital appreciation, managing tax liability on capital gains can
be important to your overall return. By holding this fund for more than one
year, individuals may be eligible for favorable federal tax rates on net
long-term capital gains (currently no more than 20%).
Generally, dividends and any gains will be subject to tax each year, whether or
not reinvested. However, on rollovers to future Portfolios, if available,
investors can defer recognition or gains and losses on stocks that are
transferred to the new Portfolio. Please consult your tax advisor concerning
state and local taxation.
Trustee
The Bank of New York
Unit Investment Trust Department
P.O. Box 974
Wall Street Division
New York, New York 10268-0974
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1-800-221-7771
Defined Asset Funds(R) are established as Unit Investment Trusts. By
definition, a trust account requires a trustee. The trustee holds the trust
securities, ensuring their safekeeping until the trust is terminated. The
trustee is also responsible for recordkeeping, for collecting any interest or
dividend income and principal payments, and for distributing this money to
investors.
Links to Sponsor Web Sites
Merrill Lynch
The Portfolio does not reflect the research opinions of any buy or sell
recommendation of any of the Sponsors or Standard & Poor's.
"Standard & Poor's", "S&P 500 Index", and "S&P 400 Index" are trademarks of the
McGraw-Hill Companies, Inc. and have been licensed for used by Defined Asset
Funds. The Portfolio is not sponsored, managed, sold or promoted by Standards &
Poor's.
Past performance is no indication of future results. Principal value, unit
prices and investment returns fluctuate with changes in market conditions. Your
investment may be worth more or less than your original cost when you redeem.
Return figures represent changes in unit price plus reinvestment of income and
principal distributions and reflect deduction of maximum applicable sales
charges and expenses. Average Annualized Return differs from Most Recently
Completed Portfolio because the figures reflect different performance periods
and a reduced sales charge on annual rollovers.
Contact your Financial Professional for a free prospectus (or download one from
this site) containing more complete information on any Defined Asset Fund,
including sales charges, expenses and risks. Please read it carefully before
you invest or send money.
Not all strategies are appropriate at all times. The opinions expressed in this
site do not constitute investment advice. Independent advise should be sought
in cases of doubt.
For more complete information about any of the funds, including their risks,
fees, sales charges and other expenses, please download a prospectus from this
site, or obtain one free of charge from your financial professional. The
prospectus should be read carefully before you invest or send money.
Not all funds are registered for sale in all states. Ask your financial
representative about the availability of specific funds in your state. In
addition, the funds described here are not available to investors outside the
U.S. Defined Asset Funds are sold by prospectus only. The prospectus is not an
offer to sell or a solicitation of an offer to buy units in the funds, nor
shall any such units be offered or sold to any person in any jurisdiction in
which such offer, solicitation or sale would
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be unlawful prior to registration or qualification under the securities laws of
any such jurisdiction.
As a unitholder, you may receive taxable dividends and capital gains. Taxes on
these distributions can affect the returns you realize from your investment.
The Sponsors do not offer tax advice except to suggest that you consider the
impact of taxes and that you may want to consult with your tax advisor before
making any investment.
Funds holding international securities can involve different risks that US
investments. The risks include political and economic instability, changing
currency exchange rates, foreign taxes and differences in financial accounting
standards.
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The information on this Internet site is directed at, and is intended only for
distribution to, and use by, persons in the United States only.
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