<PAGE>
DEFINED ASSET FUNDS--REGISTERED TRADEMARK--
----------------------------------------------------
EQUITY INVESTOR FUND
CONCEPT SERIES
BABY BOOM ECONOMY PORTFOLIO-REGISTERED TRADEMARK-
2000 GROWTH & INCOME SERIES A
(A UNIT INVESTMENT TRUST)
- DESIGNED TO TAKE ADVANTAGE OF THE ECONOMIC IMPACT
OF THE BABY BOOM GENERATION
-----------------------------------------------------
SPONSORS: The Securities and Exchange Commission has not
MERRILL LYNCH, approved or disapproved these Securities or passed
PIERCE, FENNER & SMITH upon the adequacy of this prospectus. Any
INCORPORATED representation to the contrary is a criminal offense.
PAINEWEBBER INCORPORATED Prospectus dated April 19, 2000.
<PAGE>
- --------------------------------------------------------------------------------
Defined Asset Funds-SM-
Defined Asset Funds-Registered Trademark- is America's oldest and largest family
of unit investment trusts, with over $160 billion sponsored over the last 28
years. Defined Asset Funds has been a leader in unit investment trust research
and product innovation. Our family of Funds helps investors work toward their
financial goals with a full range of quality investments, including municipal,
corporate and government bond portfolios, as well as domestic and international
equity portfolios.
Defined Asset Funds offer a number of advantages:
- Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
- Defined Portfolios: We choose the stocks and bonds in advance, so you know
what you're investing in.
- Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
- Ongoing supervision: We monitor each portfolio on an ongoing basis.
No matter what your investment goals, tolerance for risk or time horizon,
there's probably a Defined Asset Fund that suits your investment style. Your
financial professional can help you select a Defined Asset Fund that works best
for your investment portfolio.
<TABLE>
<S> <C>
CONTENTS
PAGE
--
Risk/Return Summary and Portfolio.... 3
What You Can Expect From Your
Investment......................... 6
Income............................. 6
Records and Reports................ 6
The Risks You Face................... 6
Foreign Issuer Risk................ 6
Interest Rate Risk on the U.S.
Treasury Securities.............. 7
Litigation and Legislation Risks... 7
Selling or Exchanging Units.......... 7
Sponsors' Secondary Market......... 7
Selling Units to the Trustee....... 8
Rollover/Exchange Option........... 8
How The Portfolio Works.............. 9
Pricing............................ 9
Evaluations........................ 9
Income............................. 10
Expenses........................... 10
Portfolio Changes.................. 11
Portfolio Termination.............. 12
No Certificates.................... 12
Trust Indenture.................... 12
Legal Opinion...................... 13
Auditors........................... 13
Sponsors........................... 13
Trustee............................ 13
Underwriters' and Sponsors'
Profits.......................... 13
Public Distribution................ 14
Code of Ethics..................... 14
Year 2000 Issues................... 14
Advertising and Sales Literature... 15
Taxes................................ 15
Supplemental Information............. 17
Financial Statements................. 18
Report of Independent Accountants.. 18
Statement of Condition............. 18
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
RISK/RETURN SUMMARY
<TABLE>
<C> <S>
1. WHAT IS THE PORTFOLIO'S OBJECTIVE?
The Portfolio seeks total return through
capital appreciation and current income
by investing approximately 75% of its
assets in a diversified portfolio of
global equity securities and
approximately 25% of its assets in
fixed-income securities for approximately
one year.
2. WHAT IS THE PORTFOLIO'S INVESTMENT
STRATEGY?
- The Portfolio plans to invest
approximately 75% of its assets in a
number of stocks favored by demographic
trends--companies which should experience
growth as the "baby boomer" generation
grows older. Our Portfolio Consultants
are Wall Street veterans William Sterling
and Stephen Waite, authors of the book
"Boomernomics," and authorities on the
trends of baby boomers. Sterling and
Waite, together with their team of
financial professionals, selected the
securities for this Portfolio. They
believe that in the decade to come,
economic globalization and advances in
technology, coupled with the spending and
saving patterns of this demographic
group, are likely to have an important
impact on the healthcare, technology,
telecommunications, consumer products and
financial services industries, and
accordingly, have selected Portfolio
securities in these industries.
- The baby boomers, the generation born
between 1946 and 1964, have remarkably
consistent saving, spending, and
life-style patterns. Past baby boomer
spending patterns appear to have a direct
correlation to the growth of certain
industries that meet the needs of baby
boomers.
- The Sponsors believe that as the baby
boomers and their children mature and
adjust their lives for later years,
spending patterns are likely to have a
positive effect on the industries
represented in the Portfolio.
- The Portfolio will invest approximately
25% of its assets in fixed-income
securities consisting of U.S. Government
Treasury Securities with various
maturities.
3. WHAT COUNTRIES AND INDUSTRIES ARE
REPRESENTED IN THE PORTFOLIO?
Based on current market values, the
following countries are represented in
the Portfolio:
</TABLE>
<TABLE>
United States--Equity 46%
<C> <S>
United States--Fixed Income 25%
Japan 9%
United Kingdom 6%
Canada 3%
Sweden 3%
Switzerland 3%
Finland 2%
France 1.5%
Netherlands 1.1%
Singapore 0.4%
</TABLE>
<TABLE>
<C> <S>
Based upon the principal business of each
equity issuer and current market values, the
Portfolio represents the following industries:
</TABLE>
<TABLE>
- Financial Services 17%
<C> <S>
- Technology 16%
- Health Sciences 15%
- Telecommunications/Equipment 15%
- Consumer Products 9%
- Diversified Manufacturing Operations 2%
- Utilities 1%
</TABLE>
<TABLE>
<C> <S>
In addition, approximately 25% of the
Portfolio is invested in U.S. Government
Treasury Securities.
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE
PORTFOLIO. THIS CAN HAPPEN FOR VARIOUS
REASONS, INCLUDING:
- Domestic and international stock prices
can be volatile. Market factors may cause
the prices of the stocks to change.
- This Portfolio contains a number of
foreign securities. Some of the risks of
holding foreign securities include:
--political/economic developments;
--withholding taxes;
</TABLE>
3
<PAGE>
- --------------------------------------------------------------------------------
Portfolio
- -------------------------------------------------------------------
Baby Boom Economy Portfolio 2000 Growth & Income Series A
Defined Asset Funds
<TABLE>
<CAPTION>
PRICE PER SHARE
PERCENTAGE OF TO PORTFOLIO COST TO PORTFOLIO
LOCATION AND NAME OF ISSUER PORTFOLIO (1) IN U.S. DOLLARS IN U.S. DOLLARS (2)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
CANADA
1. Ballard Power Systems, Inc.*+ 0.75% $ 80.0625 $ 12,810.00
2. Nortel Networks Corporation+ 1.51 108.7500 25,665.00
3. PMC-Sierra, Inc.*+ 0.76 160.9375 12,875.00
FINLAND
4. Nokia Corporation+ 0.74 51.1875 12,540.94
5. Sonera Corporation+ 1.49 50.2500 25,376.25
FRANCE
6. Axa+ 1.48 72.9375 25,163.44
JAPAN
7. DDI Corporation+ 0.65 10,989.0110 10,989.01
8. Fuji Soft ABC, Inc.+ 0.75 42.8094 12,842.81
9. Nintendo Company Ltd.+ 1.44 18.8750 24,537.50
10. Nippon Telegraph & Telephone
Corporation+ 1.47 66.2500 24,976.25
11. NTT Data Corporation+ 0.71 12,135.6904 12,135.69
12. NTT DoCoMo, Inc.+ 2.03 172.5000 34,500.00
13. Softbank Corporation+ 0.58 490.2054 9,804.11
14. Sony Corporation+ 1.48 244.3750 25,170.63
NETHERLANDS
15. Equant N.V.*+ 0.74 80.0000 12,640.00
16. ING Groep N.V.+ 0.36 55.5637 6,167.57
SINGAPORE
17. DBS Group Holdings Limited+ 0.38 12.7782 6,389.12
SWEDEN
18. Skandia Forsakrings AB+ 2.28 43.5968 38,844.77
19. Telefonaktiebolaget LM Ericsson
AB+ 1.12 83.9375 19,137.75
</TABLE>
- ----------------------------
(1) Based on Cost to Portfolio in U.S. dollars.
(2) Valuation by the Trustee made on the basis of closing sale prices at the
evaluation time on April 18, 2000, the business day prior to the initial
date of deposit. The value of the Securities on any subsequent business day
will vary.
+ The issuer is a foreign corporation; dividends, if any, may be subject to
withholding taxes.
* These stocks currently do not pay dividends.
--------------------------------
The securities were acquired on April 18, 2000 and are represented entirely by
contracts to purchase the securities. Any of the Sponsors may have acted as
underwriters, managers or co-managers of a public offering of the securities in
this Portfolio during the last three years. Affiliates of the Sponsors may serve
as specialists in the securities in this Portfolio on one or more stock
exchanges and may have a long or short position in any of these securities or
options on any of them, and may be on the opposite side of public orders
executed on the floor of an exchange where the securities are listed. An
officer, director or employee of any of the Sponsors may be an officer or
director of one or more of the issuers of the securities in the Portfolio. A
Sponsor may trade for its own account as an odd-lot dealer, market maker, block
positioner and/or arbitrageur in any of the securities or in options on them.
Any Sponsor, its affiliates, directors, elected officers and employee benefits
programs may have either a long or short position in any securities or in
options on them.
--------------------------------
PLEASE NOTE THAT IF THIS PROSPECTUS IS USED AS A PRELIMINARY
PROSPECTUS
FOR A FUTURE PORTFOLIO IN THIS SERIES, THE PORTFOLIO WILL
CONTAIN DIFFERENT
STOCKS FROM THOSE DESCRIBED ABOVE.
<PAGE>
- --------------------------------------------------------------------------------
Portfolio
- -------------------------------------------------------------------
Baby Boom Economy Portfolio 2000 Growth & Income Series A
Defined Asset Funds
<TABLE>
<CAPTION>
PRICE PER SHARE
PERCENTAGE OF TO PORTFOLIO COST TO PORTFOLIO
LOCATION AND NAME OF ISSUER PORTFOLIO (1) IN U.S. DOLLARS IN U.S. DOLLARS (2)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
SWITZERLAND
20. Julius Baer Holding Ltd.+ 1.49% $3,613.8047 $ 25,296.63
21. Novartis AG+ 0.33 1,414.2023 5,656.81
22. Phonak Holding AG+ 0.41 2,348.9731 7,046.92
23. Roche Holding AG+ 0.37 108.0000 6,264.00
UNITED KINGDOM
24. ARM Holdings PLC*+ 0.76 50.0575 12,864.77
25. COLT Telecom Group PLC*+ 1.16 42.8252 19,699.59
26. Glaxo Wellcome PLC+ 1.11 29.0081 18,942.27
27. Lloyds TSB Group PLC+ 0.36 9.8773 6,193.05
28. SmithKline Beecham PLC+ 0.37 12.9960 6,277.06
29. Vodafone AirTouch PLC+ 1.55 4.7847 26,406.61
30. WPP Group PLC+ 0.75 13.3750 12,679.48
UNITED STATES
31. Abgenix, Inc.* 0.38 81.9375 6,473.06
32. America Online, Inc.* 0.75 60.5000 12,765.50
33. American Home Products
Corporation 0.37 56.3125 6,363.31
34. American International Group,
Inc. 1.50 105.1875 25,455.38
35. Best Buy Co., Inc.* 1.11 80.4375 18,902.81
36. Bristol-Myers Squibb Company 0.74 65.2500 12,658.50
37. Broadcom Corporation* 0.79 157.0000 13,502.00
38. The Charles Schwab Corporation 0.71 44.5625 12,076.44
39. The Chase Manhattan Corporation 1.49 80.7500 25,436.25
40. Chiron Corporation* 0.39 45.5000 6,597.50
41. Circuit City Stores-Circuit
City Group 1.12 56.0625 19,061.25
42. Cisco Systems, Inc.* 1.49 69.2500 25,276.25
43. Citigroup, Inc. 1.85 62.3750 31,499.38
44. CuraGen Corporation* 0.38 29.8125 6,499.13
45. Dell Computer Corporation* 1.10 50.5000 18,786.00
</TABLE>
- ----------------------------
(1) Based on Cost to Portfolio in U.S. dollars.
(2) Valuation by the Trustee made on the basis of closing sale prices at the
evaluation time on April 18, 2000, the business day prior to the initial
date of deposit. The value of the Securities on any subsequent business day
will vary.
+ The issuer is a foreign corporation; dividends, if any, may be subject to
withholding taxes.
* These stocks currently do not pay dividends.
--------------------------------
The securities were acquired on April 18, 2000 and are represented entirely by
contracts to purchase the securities. Any of the Sponsors may have acted as
underwriters, managers or co-managers of a public offering of the securities in
this Portfolio during the last three years. Affiliates of the Sponsors may serve
as specialists in the securities in this Portfolio on one or more stock
exchanges and may have a long or short position in any of these securities or
options on any of them, and may be on the opposite side of public orders
executed on the floor of an exchange where the securities are listed. An
officer, director or employee of any of the Sponsors may be an officer or
director of one or more of the issuers of the securities in the Portfolio. A
Sponsor may trade for its own account as an odd-lot dealer, market maker, block
positioner and/or arbitrageur in any of the securities or in options on them.
Any Sponsor, its affiliates, directors, elected officers and employee benefits
programs may have either a long or short position in any securities or in
options on them.
--------------------------------
PLEASE NOTE THAT IF THIS PROSPECTUS IS USED AS A PRELIMINARY
PROSPECTUS
FOR A FUTURE PORTFOLIO IN THIS SERIES, THE PORTFOLIO WILL
CONTAIN DIFFERENT
STOCKS FROM THOSE DESCRIBED ABOVE.
<PAGE>
- --------------------------------------------------------------------------------
Portfolio
- -------------------------------------------------------------------
Baby Boom Economy Portfolio 2000 Growth & Income Series A
Defined Asset Funds
<TABLE>
<CAPTION>
PRICE PER SHARE
PERCENTAGE OF TO PORTFOLIO COST TO PORTFOLIO
LOCATION AND NAME OF ISSUER* PORTFOLIO (1) IN U.S. DOLLARS IN U.S. DOLLARS (2)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
UNITED STATES--CONTINUED
46. Eli Lilly and Company 0.74% $ 73.2500 $ 12,599.00
47. EMC Corporation* 1.11 129.8750 18,831.88
48. Genentech, Inc.* 1.52 136.5000 25,798.50
49. General Electric Company 1.87 156.5000 31,769.50
50. The Goldman Sachs Group, Inc. 1.50 93.7500 25,500.00
51. The Home Depot, Inc. 1.10 58.6875 18,780.00
52. Human Genome Sciences, Inc.* 0.38 69.3125 6,446.06
53. ImClone Systems, Inc.* 0.36 73.0000 6,132.00
54. Immunex Corporation* 0.78 48.0625 13,265.25
55. Intel Corporation 1.10 129.0000 18,705.00
56. JDS Uniphase Corporation* 1.48 94.0625 25,114.69
57. Johnson & Johnson 1.10 81.5000 18,745.00
58. Lowe's Companies, Inc. 1.12 54.8750 18,986.75
59. MCI WorldCom, Inc.* 0.37 41.2500 6,352.50
60. MedImmune, Inc.* 0.76 151.0000 12,986.00
61. Merck & Company, Inc. 0.37 66.2500 6,360.00
62. Microsoft Corporation* 1.49 80.5625 25,296.63
63. Millenium Pharmaceuticals,
Inc.* 0.38 114.8750 6,547.88
64. Morgan Stanley Dean Witter &
Co. 2.22 75.5625 37,856.81
65. Motorola, Inc. 0.75 117.5000 12,690.00
66. Network Appliance, Inc.* 1.17 60.2500 19,942.75
67. Northern Trust Corporation 1.91 70.0000 32,550.00
68. Oracle Corporation* 1.12 78.9375 19,102.88
69. Pfizer, Inc. 1.48 39.5625 25,240.88
70. Schering-Plough Corporation 0.74 39.9375 12,620.25
71. Sepracor, Inc.* 0.73 84.0000 12,432.00
72. Texas Instruments, Inc. 0.77 148.6875 13,084.50
73. Wal-Mart Stores, Inc. 1.11 54.5625 18,824.06
74. Warner-Lambert Company 0.75 107.5000 12,685.00
75. Xilinx, Inc.* 1.17 69.5000 19,668.50
------ -------------
75.00% $1,276,160.06
------ -------------
</TABLE>
- ----------------------------
(1) Based on Cost to Portfolio in U.S. dollars.
(2) Valuation by the Trustee made on the basis of closing sale prices at the
evaluation time on April 18, 2000, the business day prior to the initial
date of deposit. The value of the Securities on any subsequent business day
will vary.
+ The issuer is a foreign corporation; dividends, if any, may be subject to
withholding taxes.
* These stocks currently do not pay dividends.
--------------------------------
The securities were acquired on April 18, 2000 and are represented entirely by
contracts to purchase the securities. Any of the Sponsors may have acted as
underwriters, managers or co-managers of a public offering of the securities in
this Portfolio during the last three years. Affiliates of the Sponsors may serve
as specialists in the securities in this Portfolio on one or more stock
exchanges and may have a long or short position in any of these securities or
options on any of them, and may be on the opposite side of public orders
executed on the floor of an exchange where the securities are listed. An
officer, director or employee of any of the Sponsors may be an officer or
director of one or more of the issuers of the securities in the Portfolio. A
Sponsor may trade for its own account as an odd-lot dealer, market maker, block
positioner and/or arbitrageur in any of the securities or in options on them.
Any Sponsor, its affiliates, directors, elected officers and employee benefits
programs may have either a long or short position in any securities or in
options on them.
--------------------------------
PLEASE NOTE THAT IF THIS PROSPECTUS IS USED AS A PRELIMINARY
PROSPECTUS
FOR A FUTURE PORTFOLIO IN THIS SERIES, THE PORTFOLIO WILL
CONTAIN DIFFERENT
STOCKS FROM THOSE DESCRIBED ABOVE.
<PAGE>
- --------------------------------------------------------------------------------
Portfolio
- -------------------------------------------------------------------
Baby Boom Economy Portfolio 2000 Growth & Income Series A
Defined Asset Funds
<TABLE>
<CAPTION>
PERCENTAGE OF COST
PORTFOLIO TITLE S&P RATING FACE AMOUNT COUPON PORTFOLIO MATURITY TO PORTFOLIO
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT TREASURY SECURITIES (25%)
United States Treasury Notes AAA $ 85,000 6.50% 5.01% 05/31/01 $ 85,292.19
United States Treasury Notes AAA 85,000 6.25 4.99 06/30/02 84,973.44
United States Treasury Notes AAA 85,000 6.25 5.00 02/15/03 85,026.56
United States Treasury Notes AAA 85,000 6.00 4.95 08/15/04 84,256.25
United States Treasury Notes AAA 85,000 6.50 5.05 05/15/05 85,929.69
-------------
25.00% Total Cost of Treasuries: $ 425,478.13
----- -------------
Total Cost $1,701,638.19
=============
</TABLE>
----------------------------
PLEASE NOTE THAT IF THIS PROSPECTUS IS USED AS A PRELIMINARY
PROSPECTUS
FOR A FUTURE PORTFOLIO IN THIS SERIES, THE PORTFOLIO WILL
CONTAIN DIFFERENT
BONDS FROM THOSE DESCRIBED ABOVE.
<PAGE>
- --------------------------------------------------------------------------------
RISK/RETURN SUMMARY (CONTINUED)
<TABLE>
<C> <S>
-- exchange controls or local
restrictions on dividend payments;
-- currency risk;
-- less available public information;
and
-- less liquidity.
- Rising interest rates will reduce the
value of the bonds.
- Generally, bonds with longer maturities
will change in value more than those
with shorter maturities.
- You may suffer a loss if the prices of
the stocks and bonds decline prior to
the termination of the portfolio or any
earlier time that you may sell your
units.
- The asset allocation percentages of the
Portfolio are calculated as of the date
of deposit. Asset allocation percentages
may vary on any subsequent day due to
fluctuations in the market value of the
Portfolio securities.
- The Portfolio may continue to purchase
or hold the securities originally
selected even though their market value
may have changed, or they may be subject
to sell recommendations from one or more
of the Sponsors.
- Even if there are no changes in the
Portfolio securities from year to year,
you still must pay taxes on any gain.
5. IS THIS PORTFOLIO APPROPRIATE FOR YOU?
- This Portfolio was designed to meet the
financial needs of investors who are
generally in their prime earning years.
While they frequently can afford to
invest more of their money, they have
less time in the workforce to recover
assets in the event of a loss in the
stock market.
- When it comes to investing, it's
important to balance how much risk
you're willing to take with your
investment portfolio, with the reward
that you want for the long-term. One way
to do this is to find the appropriate
allocation of stocks and bonds to
provide the growth you want, with a risk
level that is comfortable for you. If
accumulating assets is your investment
goal, you may want to take a more
moderate approach to stocks, and include
bonds to help offset your risk.
- The Portfolio is not appropriate for you
if you are not comfortable with the
Strategy or are unwilling to take the
risk involved with an equity investment
or the interest risk involved with a
bond investment. It may not be
appropriate if you want a speculative
investment that changes to take
advantage of market movements, or if you
are seeking preservation of capital or
high current income.
6. WHAT ARE THE PORTFOLIO'S FEES AND
EXPENSES?
This table shows the costs and expenses
you may pay, directly or indirectly,
when you invest in the Portfolio.
ESTIMATED ANNUAL PORTFOLIO OPERATING
EXPENSES
</TABLE>
<TABLE>
<CAPTION>
AS A %
OF AMOUNT
NET PER 1,000
ASSETS UNITS
------ ---------
<C> <S> <C> <C>
.091 % $0.90
Trustee's Fee
.003 % $0.03
Evaluator's Fee
.071 % $0.70
Portfolio Supervision,
Bookkeeping and
Administrative Fees
.151 % $1.49
Portfolio Consultants' Fee
.250 % $2.48
Creation and Development Fee
.118 % $1.17
Other Operating Expenses
------- -----
.684 % $6.77
TOTAL
</TABLE>
<TABLE>
<C> <S>
The Creation and Development Fee (estimated at
$.00248 per unit) compensates the Sponsors for
the creation and development of the Portfolio
and is computed based on the Portfolio's
average daily net asset value through the date
of collection. This fee historically had been
included in the sales fee.
</TABLE>
<TABLE>
<C> <S> <C>
ORGANIZATION COSTS per 1,000 $2.21
units (deducted from Portfolio
assets at the close of the
initial offering period)
</TABLE>
<TABLE>
<C> <S> <C>
INVESTOR FEES
2.50%
Maximum Sales Fee (Load) on new
purchases (as a percentage of $1,000
invested)
</TABLE>
<TABLE>
<C> <S>
You will pay an up-front sales fee of 1.00%, as
well as a total deferred sales fee of $15.00
($2.50 per 1,000 units deducted from the
Portfolio's net asset value in six monthly
payments beginning September 1, 2000).
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
RISK/RETURN SUMMARY (CONTINUED)
<TABLE>
<C> <S>
EXAMPLE
This example may help you compare the
cost of investing in the Portfolio to
the cost of investing in other
portfolios.
The example assumes that you invest
$10,000 in the Portfolio for the periods
indicated and sell all your units at the
end of those periods. The example also
assumes a 5% return on your investment
each year and that the Portfolio's
operating expenses stay the same.
Although your actual costs may be higher
or lower, based on these assumptions
your costs would be:
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
$343 $848 $1,379 $2,831
</TABLE>
<TABLE>
<C> <S>
The aggregate fees and expenses will not
exceed the applicable NASD limit which is
6.25% of the initial public offering
price.
7. IS THE PORTFOLIO MANAGED?
Unlike a mutual fund, the Portfolio is
not managed and securities are not sold
because of market changes. The Sponsors
monitor the Portfolio and may instruct
the Trustee to sell securities under
certain limited circumstances. However,
given the investment philosophy of the
Portfolio, the Sponsors are not likely to
do so.
8. HOW DO I BUY UNITS?
The minimum investment is $250.
You can buy units from any of the
Sponsors and other broker-dealers. The
Sponsors are listed later in this
prospectus. Some banks may offer units
for sale through special arrangements
with the Sponsors, although certain legal
restrictions may apply.
UNIT PRICE PER 1,000 UNITS $999.88
(as of April 18, 1999)
Unit price is based on the net asset
value of the Portfolio plus the up-front
sales fee. An amount equal to any
principal cash, as well as net accrued
but undistributed interest on the unit,
is added to the unit price. Unit price
also includes the organization costs
shown on page 4, to which no sales fee
has been applied. Domestic Portfolio
securities are valued by the Trustee on
the basis of their closing prices at 4:00
p.m. Eastern time, and foreign Portfolio
stocks are valued at the U.S. dollar
exchange rate at 2:30 p.m. Eastern time,
every business day.
An independent evaluator prices the bonds
at 3:30 p.m. Eastern time every business
day, during the initial offering period
and any subsequent offering periods
designated by the Sponsors, at a price at
which the bonds can be directly purchased
by the public assuming they were
available, and at all other times on the
basis of current bid prices.
Unit price changes every day with changes
in the prices of the securities in the
Portfolio.
9. HOW DO I SELL UNITS?
You may sell your units at any time to
any Sponsor or the Trustee for the net
asset value determined at the close of
business on the date of sale, less any
remaining deferred sales fee and the
costs of liquidating securities to meet
the redemption.
10. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Portfolio pays distributions of any
income, net of expenses, on the 25th of
December, 2000, if you own units on the
10th of those months. Distributions of
ordinary income will be dividends for
federal income tax purposes. Corporate
investors may be eligible for the
dividends-received deduction with respect
to a portion of these distributions.
Distributions to foreign investors will
generally be subject to withholding
taxes. Because some of the income
received by the Portfolio would generally
not be subject to U.S. withholding taxes
if received directly by foreign
investors, an investment in the Portfolio
may be inappropriate for these investors.
11. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You may choose to reinvest your
distributions into additional units of
the Portfolio. Unless you choose
reinvestment, you will receive your
distributions in cash.
EXCHANGE PRIVILEGES
You may exchange units of this Portfolio
for units of another Baby Boom Economy
Portfolio at no additional sales fee, and
certain other Defined Asset Funds at a
reduced sales fee. You may also exchange
into this Portfolio from certain other
funds.
</TABLE>
5
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT
INCOME
Each Portfolio will pay to you any income it has received one time during its
life. There can be no assurance that any dividends will be declared or paid.
Changes in interest rates generally will not affect your income because the
portfolio is fixed.
Along with your income, you will receive your share of any available bond
principal.
RECORDS AND REPORTS
You will receive:
- - a notice from the Trustee if new securities are deposited in exchange or
substitution for securities originally deposited;
- - a statement of income payments two times a year;
- - a final report on Portfolio activity; and
- - annual tax information. THIS WILL ALSO BE SENT TO THE IRS. YOU MUST REPORT THE
AMOUNT OF INCOME RECEIVED DURING THE YEAR. PLEASE CONTACT YOUR TAX ADVISER IN
THIS REGARD.
You may request copies of securities evaluations to enable you to comply with
federal and state tax reporting requirements and audited financial statements of
the Portfolio from the Trustee.
You may inspect records of Portfolio transactions at the Trustee's office during
regular business hours.
THE RISKS YOU FACE
FOREIGN ISSUER RISK
Investments in securities of foreign issuers involve risks that are different
from investments in securities of domestic issuers. They may include:
- political and economic developments;
- possibility of withholding taxes;
- exchange controls or other governmental restrictons on the payment of
dividends;
- conversion of local currency to U.S. dollars upon the sale of Portfolio
Securities;
- less publicly available information; and
- absence of uniform accounting, auditing and financial reporting standards,
practices and requirements.
AMERICAN DEPOSITARY SHARES AND RECEIPTS
American depositary shares and receipts are issued by an American bank or trust
company to evidence ownership of underlying common stock issued by a foreign
corporation and deposited in a depositary facility. The terms and conditions of
the depositary facility may result in less liquidity or lower market prices for
the ADRs than for the underlying shares. Certain of the Portfolio Securities
were purchased in ADR form in the United States.
FOREIGN CURRENCY RISK
Because securities of non-U.S. issuers generally pay dividends and trade in
foreign currencies, there is the risk that the U.S. dollar value of these
securities will vary with fluctuations in foreign exchange rates.
At the present time the Sponsors do not believe that any of the Portfolio
Securities is subject to exchange control restrictions which would materially
interfere with payment to the Portfolio of amounts due on the Portfolio
Securities. The adoption of
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<PAGE>
exchange control regulations or other legal restrictions could have an adverse
impact on the marketability of international securities in the Portfolio and on
the ability of the Portfolio to satisfy redemptions. There can be no assurance
that exchange control regulations might not be adopted in the future that would
adversely affect payments to the Portfolio.
LIQUIDITY
Sales of foreign securities in United States securities markets are ordinarily
subject to severe restrictions and will generally be made only in foreign
securities markets. You should know that:
- securities may be traded in foreign countries where the securities markets
are not as developed or efficient and may not be as liquid as those in the
United States;
- a foreign market's liquidity might become impaired as a result of economic
or political turmoil, or if relations between the United States and the
foreign country deteriorate markedly; and
- the principal trading market for the Portfolio Securities, even if otherwise
listed, may be the over-the-counter market in which liquidity will depend on
whether dealers will make a market in the Portfolio Securities.
INTEREST RATE RISK ON THE U.S. TREASURY SECURITIES
Investing involves risks, including the risk that your investment will decline
in value if interest rates rise. Generally, fixed income securities with longer
maturities will change in value more than those with shorter maturities. Of
course, we cannot predict how interest rates may change.
LITIGATION AND LEGISLATION RISKS
We do not know of any pending litigation that might have a material adverse
effect upon the Portfolios.
Future tax legislation could affect the value of the a Portfolio by:
- reducing the dividends-received deduction or
- increasing the corporate tax rate resulting in less money available for
dividend payments.
SELLING OR EXCHANGING UNITS
You can sell your units at any time for a price based on their net asset value.
Your net asset value is calculated each business day by:
- ADDING the value of the Portfolio Securities, cash and any other Portfolio
assets;
- SUBTRACTING accrued but unpaid Portfolio expenses, unreimbursed Trustee
advances, cash held to buy back units or for distribution to investors, and
any other Portfolio liabilities; and
- DIVIDING the result by the number of outstanding units.
Your net asset value when you sell may be more or less than your cost because of
sales fees, market movements and changes in a Portfolio.
If you sell your units before the final deferred sales fee payment, the amount
of any remaining payments will be deducted from your proceeds.
SPONSORS' SECONDARY MARKET
While we are not obligated to do so, we will buy back units at net asset value
less any remaining deferred sales fee and the cost of
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liquidating securities to meet the redemption. We may resell the units to other
buyers or to the Trustee. You should consult your financial professional for
current market prices to determine if other broker-dealers or banks are offering
higher prices.
We have maintained a secondary market continuously for more than 28 years, but
we could discontinue it without prior notice for any business reason.
SELLING UNITS TO THE TRUSTEE
Regardless of whether we maintain a secondary market, you can sell your units to
the Trustee at any time by contacting your broker, dealer or financial
institution that holds your units in street name. Sometimes, additional
documents are needed such as a trust document, certificate of corporate
authority, certificate of death or appointment as executor, administrator or
guardian.
Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.
As long as we are maintaining a secondary market, the Trustee will sell your
units to us at a price based on net asset value. If there is no secondary
market, the Trustee will sell your units in the over-the-counter market if it
believes it can obtain a higher price. In that case, you will receive the net
proceeds of the sale.
If the Portfolio does not have cash available to pay you for the units you are
selling, the agent for the Sponsors will select securities to be sold. These
sales could be made at times when the securities would not otherwise be sold and
may result in your receiving less than you paid for your unit and also reduce
the size and diversity of the Portfolio.
If you sell units with a value of at least $2,000,000 you may choose to receive
your distribution "in kind." If you so choose, you will receive securities and
cash with a total value equal to the price of your units. The Trustee will try
to distribute securities in the Portfolio pro rata, but it reserves the right to
distribute only one or a few securities. The Trustee will act as your agent in
an in-kind distribution and will either hold the securities for your account or
transfer them as you instruct. You must pay any transaction costs as well as
transfer and ongoing custodial fees on sales of securities distributed in kind.
There could be a delay in paying you for your units:
- if the New York Stock Exchange or any other foreign exchanges on which
portfolio securities are listed, if any, is closed (other than customary
weekend and holiday closings);
- if the SEC determines that trading on the New York Stock Exchange or any
other foreign exchanges on which portfolio securities are listed, if any, is
restricted or that an emergency exists making sale or evaluation of the
securities not reasonably practicable; and
- for any other period permitted by SEC order.
ROLLOVER/EXCHANGE OPTION
When the Portfolio is about to terminate, you may have the option to roll your
proceeds into the next Baby Boom Economy Portfolio Series if one is available.
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If you hold your Units with one of the Sponsors and notify your financial
adviser by May 31, 2001, your units will be redeemed and the proceeds from the
sale of the securities will be reinvested in units of a new Baby Boom Economy
Portfolio Series. If you decide not to roll over your proceeds, you will receive
a cash distribution (or, if you are eligible and you so choose, an in-kind
distribution) after the Portfolios terminate.
The Portfolio will terminate by July 5, 2001. However, the Sponsors may extend
the termination date for a period no longer than 30 days without notice to
Unitholders.
If you participate in the rollover, you may realize taxable capital gain but may
not be entitled to a deduction for any capital loss recognized on the rollover.
You should consult your tax adviser in this regard.
If you continue to hold your units, you may exchange units of this Portfolio any
time before the Portfolio terminates for units of other Defined Asset Funds at a
reduced sales fee if your investment goals change. In addition, you may exchange
into this Portfolio from certain other Defined Asset Funds and unit trusts. To
exchange units, you should talk to your financial professional about what
Portfolios are exchangeable, suitable and currently available.
We may amend or terminate the options to exchange your units or roll your
proceeds at any time without notice.
HOW THE PORTFOLIO WORKS
PRICING
Units are charged a combination of initial and deferred sales fees.
In addition, during the initial offring period, a portion of the price of a unit
also consists of securities to pay all or some of the costs of organizing the
Portfolio including:
- cost of initial preparation of legal documents;
- federal and state registration fees;
- initial fees and expenses of the Trustee;
- initial audit; and
- legal expenses and other out-of-pocket expenses.
The estimated organization costs will be deducted from the assets of the
Portfolio as of the close of the initital offering period.
The deferred sales fee is generally a monthly charge of $2.50 per 1,000 units
and is accrued in six monthly installments. Units redeemed or repurchased prior
to the accrual of the final deferred sales fee installment will have the amount
of any remaining installments deducted from the redemption or repurchase
proceeds or deducted in calculating an in-kind distribution. (This deduction
will be waived in the event of the death or disability, as defined in the
Internal Revenue Code of 1986, of an investor.) The initial sales fee is equal
to the aggregate sales fee less the aggregate amount of any remaining
installments of the deferred sales fee.
It is anticipated that securities will not be sold to pay the deferred sales fee
until after the date of the last installment. Investors will be at risk for
market price fluctuations in the securities from the several installment accrual
dates to the dates of actual sale of securities to satisfy this liability.
EVALUATIONS
The Trustee and the independent evaluator value the securities on each business
day
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(i.e., any day other than Saturdays, Sundays and the following holidays as
observed by the New York Stock Exchange: New Year's Day, Martin Luther King, Jr.
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas). If the securities are listed on a national
securities exchange or the Nasdaq National Market, evaluations are generally
based on closing sales prices on that exchange or that system or, if closing
sales prices are not available, at the mean between the closing bid and offer
prices. Evaluations for foreign stocks are generally based on the U.S. dollar
equivalent of the last reported closing sales prices or, if closing sales prices
are not available, at the mean between the closing bid and offer prices. On
holidays when the U.S. Government is closed (Columbus Day and Veterans's Day),
the portion of the net asset value relating to the U.S. Government Treasury
Securities will be based on the previous day's closing price. Bonds are
generally evaluated on the offer side during the initial offering period and
during any subsequent offering periods designated by the Sponsors, and on the
bid side at all other times. Under current market conditions, the bid prices for
Treasury obligations of the type deposited in the Portfolios are expected to be
approximately .1875% less than the offer price.
INCOME
- - Interest on any fixed income securities purchased on a when-issued basis or
for a delayed delivery does not begin to accrue until the securities are
delivered to the Portfolio. If a security is not delivered on time and the
Trustee's annual fee and expenses do not cover the additional accrued
interest, we will treat the contract to buy the security as failed.
- - The Trustee credits any dividends received and any interest income to an
Income Account and other receipts to a Capital Account. The Trustee may
establish a reserve account by withdrawing from these accounts amounts it
considers appropriate to pay any material liability. These accounts do not
bear interest.
- - Each unit receives an equal share of distributions of interest and dividend
income, if any, net of estimated expenses. Because dividends on the securities
are not received at a constant rate throughout the year, any distribution may
be more or less than the amount then credited to the Income Account.
EXPENSES
The Trustee is paid a fee monthly. It also benefits when it holds cash for the
Portfolio in non-interest bearing accounts. The Trustee may also receive
additional amounts:
- for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
- costs of actions taken to protect the Portfolio and other legal fees and
expenses;
- expenses for keeping the Portfolio's registration statement current; and
- Portfolio termination expenses and any governmental charges.
The Sponsors are currently reimbursed up to 70 CENTS per 1,000 units annually
for providing portfolio supervisory, bookkeeping and administrative services and
for any other expenses properly chargeable to the Portfolio. While this fee may
exceed the amount of these costs and expenses
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attributable to this Series, the total of these fees for all Series of Defined
Asset Funds will not exceed the aggregate amount attributable to all of these
Series for any calendar year. Certain of these expenses were previously paid for
by the Sponsors. The Portfolio also pay the Evaluator's fees.
The Sponsors will receive a Creation and Development Fee of .25% of the
Portfolio's average daily net asset value through the date of collection. This
fee, which has historically been included in the gross sales fee, compensates
the Sponsors for the creation and development of the Portfolio, including
determination of the Portfolio's objective and policies and portfolio
composition and size, selection of service providers and information services.
No portion of the Creation and Development Fee is applied to the payment of
distribution expenses or as compensation for sales efforts.
The Trustee's, Evaluator's and Sponsors' fees may be adjusted for inflation
without investors' approval.
The maximum sales fee is 2.50%. If you hold units in certain eligible accounts
offered by the Sponsors, you will pay no sales fee. Employees and non-employee
directors of the Sponsors may be charged a reduced sales fee of no less than
$5.00 per 1,000 units. If your aggregate sales fee is less than the deferred
sales fee, you will be given additional units which will decrease the effective
maximum sales fee to the amount shown below.
The maximum sales fee is effectively reduced if you invest as follows:
<TABLE>
<CAPTION>
YOUR MAXIMUM SALES
IF YOU INVEST: FEE WILL BE:
-------------- ------------------
<S> <C>
Less than $50,000 2.50%
$50,000 to $99,999 2.25%
$100,000 to $249,999 1.75%
$250,000 to $999,999 1.50%
$1,000,000 to
$4,999,999 0.75%
</TABLE>
The deferred sales fees you owe are paid from the Capital Account. Although we
may collect the deferred sales charge monthly, to keep Units more fully invested
we do not currently plan to pay the deferred sales charge until after the
rollover notification date.
The Portfolio Consultants will continue to monitor the Portfolio and will
periodically report their findings and recommendations, if any, to the Sponsors.
They will receive a fee of 0.15% of net assets accrued daily and paid quarterly.
The Sponsors will pay advertising and selling expenses at no charge to the
Portfolio. If Portfolio expenses exceed initial estimates, the Portfolio will
owe the excess. The Trustee has a lien on Portfolio assets to secure
reimbursement of Portfolio expenses and may sell securities if cash is not
available.
PORTFOLIO CHANGES
If we maintain a secondary market in units but are unable to sell the units that
we buy in the secondary market, we will redeem units, which will affect the size
and composition of the portfolio.
We decide whether to offer for sale units that we acquire in the secondary
market after reviewing:
- diversity of the Portfolio;
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- size of the Portfolio relative to its original size;
- ratio of Portfolio expenses to income; and
- cost of maintaining a current prospectus.
If the Portfolio is buying or selling a stock actively traded on a national
securities exchange or certain foreign exchanges, it may buy from or sell to
another Defined Asset Fund at the stock's closing sale price (without any
brokerage commissions).
PORTFOLIO TERMINATION
When the Portfolio is about to terminate you will receive a notice, and you will
be unable to sell your units after that time. Unless you choose to receive an
in-kind distribution of securities, we will sell any remaining securities, and
you will receive your final distribution in cash.
You will pay your share of the expenses associated with termination, including
brokerage costs in selling securities. This may reduce the amount you receive as
your final distribution.
NO CERTIFICATES
All investors are required to hold their Units in uncertificated form and in
"street name" by their broker, dealer or financial institution at the Depository
Trust Company.
TRUST INDENTURE
The Portfolio is a "unit investment trust" governed by a Trust Indenture, a
contract among the Sponsors, the Trustee and the Evaluator which sets forth
their duties and obligations and your rights. A copy of the Indenture is
available to you on request to the Trustee. The following summarizes certain
provisions of the Indenture.
The Sponsors and the Trustee may amend the Indenture without your consent:
- 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
interest (as determined by the Sponsors).
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in the Portfolio without your written consent.
The Trustee may resign by notifying the Sponsors. The Sponsors may remove the
Trustee without your consent if:
- it fails to perform its duties;
- it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities; or
- the Sponsors determine that its replacement is in your best interest.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsors and the Trustee without consent of
investors. The Trustee may resign or be removed by the Sponsors without the
consent of investors. The resignation or removal of either becomes effective
when a successor accepts appointment. The Sponsors will try to appoint a
successor promptly; however, if no successor has accepted within 30 days after
notice of resignation, the resigning
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Trustee or Evaluator may petition a court to appoint a successor.
Any Sponsor may resign as long as one Sponsor with a net worth of $2 million
remains and agrees to the resignation. The remaining Sponsors and the Trustee
may appoint a replacement. If there is only one Sponsor and it fails to perform
its duties or becomes bankrupt the Trustee may:
- remove it and appoint a replacement Sponsor;
- liquidate the Portfolios; or
- continue to act as Trustee without a Sponsor.
Merrill Lynch, Pierce, Fenner & Smith Incorporated acts as agent for the
Sponsors.
The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Evaluator and the Sponsors.
LEGAL OPINION
Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
special counsel for the Sponsors, has given an opinion that the units are
validly issued.
AUDITORS
Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Statements of Condition included in this
prospectus.
SPONSORS
The Sponsors are:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051
PAINEWEBBER INCORPORATED (a wholly-owned subsidiary of PaineWebber Group Inc.)
1285 Avenue of the Americas,
New York, NY 10019
SELECTED DEALERS
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048
Each Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer each
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.
TRUSTEE
The Chase Manhattan Bank, Unit Trust Department, 4 New York Plaza--6th Floor,
New York, New York 10004, is the Trustee. It is supervised by the Federal
Deposit Insurance Corporation, the Board of Governors of the Federal Reserve
System and New York State banking authorities.
UNDERWRITERS' AND SPONSORS' PROFITS
Underwriters receive sales charges when they sell units. Sponsors also realize a
profit or loss on deposit of the securities shown under Defined Portfolio. Any
cash made available by you to the Sponsors before the settlement date for those
units may be used in the Sponsors' businesses to the extent permitted by federal
law and may benefit the Sponsors.
A Sponsor or Underwriter may realize profits or sustain losses on stocks in the
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Portfolio which were acquired from underwriting syndicates of which it was a
member.
The Sponsors will receive a Creation and Development Fee of .25% of the
Portfolio's average daily net asset value through the date of collection. This
fee, which has historically been included in the gross sales fee, compensates
the Sponsors for the creation and development of the Portfolio, including
determination of the Portfolio's objective and policies and portfolio
composition and size, selection of service providers and information services.
No portion of the Creation and Development Fee is applied to the payment of
distribution expenses or as compensation for sales efforts.
During the initial offering period, the Sponsors may realize profits or sustain
losses on units they hold due to fluctuations in the price per unit. The
Sponsors experienced a loss of $2,305.99 on the initial deposit of the
Securities. Any profit or loss to the Portfolio will be effected by the receipt
of applicable sales fees and a gain or loss on subsequent deposits of
securities. In maintaining a secondary market, the Sponsors will also realize
profits or sustain losses in the amount of any difference between the prices at
which they buy units and the prices at which they resell or redeem them.
PUBLIC DISTRIBUTION
During the initial offering period, units will be distributed to the public by
the Sponsors and dealers who are members of the National Association of
Securities Dealers, Inc.
Dealers will be entitled to the concession stated below on Units sold or
redeemed during the first year.
<TABLE>
<CAPTION>
DEALER CONCESSION AS
A % OF PUBLIC
AMOUNT PURCHASED OFFERING PRICE
---------------- --------------------
<C> <S> <C>
Less than $50,000 2.00%
$50,000 to $99,999 1.80%
$100,000 to $249,999 1.45%
$250,000 to $999,999 1.25%
$1,000,000 and over 0.50%
</TABLE>
The Sponsors do not intend to qualify units for sale in any foreign countries.
This prospectus does not constitute an offer to sell units in any country where
units cannot lawfully be sold.
CODE OF ETHICS
The Portfolio and the Agent for the Sponsors have each adopted a code of ethics
requiring pre-clearance and reporting of personal securities transactions by its
employees with access to information on Portfolio transactions. Subject to
certain conditions, the codes permit employees to invest in Portfolio securities
for their own accounts. The codes are designed to prevent fraud, deception and
misconduct against the Portfolio and to provide reasonable standards of conduct.
These codes are on file with the Commission and you may obtain a copy by
contacting the Commission at the address listed on the back cover of this
prospectus.
YEAR 2000 ISSUES
Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the "Year
2000 Problem"). To date, we are not aware of any major operational difficulties
resulting from the computer system changes necessary to prepare for the Year
2000.
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However, there can be no assurance that the Year 2000 Problem will not adversely
affect the issuers of the securities contained in the Portfolio. We cannot
predict whether any impact would be material to the Portfolio as a whole.
ADVERTISING AND SALES LITERATURE
Sales material may discuss developing a long-term financial plan, working with
your financial professional; the nature and risks of various investment
strategies and Defined Asset Funds that could help you toward your financial
goals and the importance of discipline; how securities are selected for these
funds, how the funds are created and operated, features such as convenience and
costs, and options available for certain types of funds including automatic
reinvestment, rollover, exchanges and redemption. It may also summarize some
similarities and differences with mutual funds and discuss the philosophy of
spending time in the market rather than trying to time the market, including
probabilities of negative returns over various holding periods.
Sales literature and articles may state research opinions on the economy,
countries and industry sectors and include a list of funds generally appropriate
for pursuing these recommendations.
Advertising and sales literature may include brief descriptions of the principal
businesses and products of the companies represented in the Portfolio. This
material may include a chart showing the historical development of baby boomers
and related events.
Advertising and sales literature may state past total return performance of the
Portfolio for various periods. Returns are computed by taking price changes for
the period plus income reinvested, divided by the initial public offering price,
and reflecting deduction of maximum Portfolio sales charges and expenses. For
periods of more than a year, average annualized returns shall be stated, which
may be accompanied with no greater prominence by statement of cumulative total
returns. Returns without reflecting deduction of sales charges or only of
deferred sales charges may also be stated with no greater prominence than total
returns reflecting deduction of all sales charges when the different basis of
computation is disclosed.
TAXES
The following summarizes some of the important income tax consequences of
holding units. It assumes that you are not a dealer, financial institution,
insurance company or other investor with special circumstances. You should
consult your own tax adviser about your particular circumstances.
In the opinion of our counsel, under existing law:
GENERAL TREATMENT OF THE FUND AND YOUR INVESTMENT
The Portfolio intends to qualify for special tax treatment as a regulated
investment company so that it will not be subject to federal income tax on the
portion of its taxable income that it distributes to investors in a timely
manner.
DISTRIBUTIONS
Distributions to you of the Portfolio's interest income and dividend income and
of the Portfolio's gains from Securities it has held for one year or less will
generally be taxed to you as ordinary income, to the
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extent of the Portfolio's taxable income not attributable to the Portfolio's net
capital gain. Distributions to you in excess of the Portfolio's taxable income
will be treated as a return of capital and will reduce your basis in your Units.
To the extent such distributions exceed your basis, they will be treated as gain
from the sale of your Units.
Distributions to you that are treated as ordinary income will constitute
dividends for federal income tax purposes. Corporate investors may be eligible
for the 70% dividends-received deduction with respect to these distributions.
You should consult your tax adviser.
Distributions to you of the Portfolio's net capital gain will generally be
taxable to you as long-term capital gain, regardless of how long you have held
your Units.
GAIN OR LOSS UPON DISPOSITION
You will generally recognize capital gain or loss when you dispose of your
Units. If you receive Securities upon redemption of your Units (including
pursuant to the rollover option), you will generally recognize capital gain or
loss equal to the difference between your basis in your Units and the fair
market value of the Securities received in redemption.
If your net long-term capital gains exceed your net short-term capital losses,
the excess may be subject to tax at a lower rate than ordinary income. Any
capital gain or loss that you recognize on a disposition of your Units will be
long-term if you have held your Units for more than one year and short-term
otherwise. Because the deductibility of capital losses is subject to
limitations, you may not be able to deduct all of your capital losses. You
should consult your tax adviser in this regard.
YOUR BASIS IN THE SECURITIES
Your aggregate basis in the Units will generally be equal to the cost of your
Units, including the initial sales charge and the Creation and Development Fee.
You should not increase your basis in your Units by deferred sales charges or
organizational expenses.
FOREIGN INVESTORS
If you are a foreign investor and you are not engaged in a U.S. trade or
business, you generally will be subject to withholding tax at a rate of 30% (or
a lower applicable treaty rate) on distributions. You should consult your tax
adviser about the possible application of federal, state and local, and foreign
taxes.
RETIREMENT PLANS
You may wish to purchase units for an Individual Retirement Account ("IRAs") or
other retirement plan. Generally, capital gains and income received in each of
these plans are exempt from federal taxation. All distributions from these types
of plans are generally treated as ordinary income but may, in some cases, be
eligible for tax-deferred rollover treatment. You should consult your attorney
or tax adviser about the specific tax rules relating to these plans. These plans
are offered by brokerage firms, including the Sponsors of this Portfolio, and
other financial institutions. Fees and charges with respect to such plans may
vary.
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SUPPLEMENTAL INFORMATION
You can receive at no cost supplemental information about the Portfolios by
calling the Trustee. The supplemental information includes more detailed risk
disclosure and general information about the structure and operation of the
Portfolios. The supplemental information is also available from the SEC.
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REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders of Equity Investor Fund, Concept Series, Baby
Boom Economy Portfolio 2000 Growth & Income Series A, Defined Asset Funds (the
"Fund"):
We have audited the accompanying statement of condition and the related defined
portfolio included in the prospectus of the Fund as of April 19, 2000. This
financial statement is the responsibility of the Trustee. Our responsibility is
to express an opinion on this financial statement based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. Our procedures included
confirmation of an irrevocable letter of credit deposited for the purchase of
securities, as described in the statement of condition, with the Trustee. An
audit also includes assessing the accounting principles used and significant
estimates made by the Trustee, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of the Fund as of April 19, 2000
in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, NY
April 19, 2000
STATEMENT OF CONDITION AS OF APRIL 19, 2000
TRUST PROPERTY
<TABLE>
<S> <C>
Investments--Contracts to purchase Securities(1)......... $ 1,701,638.19
Accrued interest to initial date of deposit on underlying
Securities............................................. 7,932.54
-------------------
Total................................................ $ 1,709,570.73
===================
LIABILITIES AND INTEREST OF HOLDERS
Advance by Trustee for accrued interest(3)........... $ 7,932.54
Reimbursement of Sponsors for organizational
expenses(2)......................................... 3,798.61
-------------------
Subtotal............................................. 11,731.15
-------------------
Interest of Holders of 1,718,826 units of fractional
undivided interest outstanding(6)
Cost to investors(4)(5).............................. $ 1,718,619.74
Gross underwriting commissions and organization
expenses(2)(5)...................................... (20,780.16)
-------------------
Subtotal............................................. 1,697,839.58
-------------------
Total................................................ $ 1,709,570.73
===================
</TABLE>
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(1) Aggregate cost to the Portfolio of the securities listed under the
Portfolio determined by the Trustee at 4:00 p.m., Eastern time on April 18,
2000. The contracts to purchase securities are collateralized by an irrevocable
letter of credit which has been issued by San Paolo Bank, New York Branch, in
the amount of $1,711,876.72 and deposited with the Trustee. The amount of the
letter of credit includes $1,703,944.18 for the purchase of securities, plus
$7,932.54 for accrued interest.
(2) A portion of the Public Offering Price consists of securities in an
amount sufficient to pay all or a portion of the costs incurred in establishing
the Portfolio. These costs have been estimated at $2.21 per 1,000 Units. A
distribution will be made as of the close of the initial offering period to an
account maintained by the Trustee from which the organization expense obligation
of the investors will be satisfied. If the actual organization costs exceed the
estimated amount shown above the Sponsors will pay for this excess amount.
(3) Representing a special distribution to the Sponsors by the Trustee
of an amount equal to the accrued interest on the bonds.
(4) Aggregate Unit price computed on the basis of the value of the
underlying securities at 4:00 p.m., Eastern time on April 18, 2000.
(5) Assumes the maximum initial sales charge per 1,000 units of 1.00% of
the Unit Price. A deferred sales charge of $2.50 per 1,000 Units is payable on
September 1, 2000 and thereafter on the 1st day of each month through February
1, 2001. Distributions will be made to an account maintained by the Trustee from
which the deferred sales charge obligation of the investors to the Sponsors will
be satisfied.
(6) Because the value of securities at the evaluation time on the
Initial Date of Deposit may differ from the amounts shown in this statement of
condition, the number of Units offered on the Initial Date of Deposit will be
adjusted to maintain the $999.88 per 1,000 Units offering price only for that
day. The Unit Price on any subsequent business day will vary.
18
<PAGE>
DEFINED ASSET FUNDS-R-
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<S> <C>
HAVE QUESTIONS ? EQUITY INVESTOR FUND
Request the most BABY BOOM ECONOMY PORTFOLIO
recent free Information 2000 GROWTH & INCOME SERIES A
Supplement that gives more (A Unit Investment Trust)
details about the Fund, ---------------------------------------
by calling: This Prospectus does not contain
The Chase Manhattan Bank complete information about the
1-800-323-1508 investment company filed with the
Securities and Exchange Commission in
Washington, D.C. under the:
- Securities Act of 1933 (file no.
333-33410) and
- Investment Company Act of 1940 (file
no. 811-1777).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
When units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a
future series, but some of the
information in this Prospectus will be
changed for that series.
UNITS OF ANY FUTURE SERIES MAY NOT BE
SOLD NOR MAY OFFERS TO BUY BE ACCEPTED
UNTIL THAT SERIES HAS BECOME EFFECTIVE
WITH THE SECURITIES AND EXCHANGE
COMMISSION. NO UNITS CAN BE SOLD IN ANY
STATE WHERE A SALE WOULD BE ILLEGAL.
100611RR--4/00
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