|
Previous: EQUITY INVESTOR FUND SELECT S&P IND POR 2000 SER E DEF AS FU, 487, EX-99.24, 2000-08-07 |
Next: E PROFILE INC, S-1, 2000-08-07 |
![]() |
|
The
Technology Sector n It
has been considered an investment only for those with the most robust of
temperaments. This sector has shown Wall Street lofty highs and humble
lows, and we believe it offers great possibilities for the future. Defined
Asset Funds® gives you a convenient way to invest in the
potential of technology with the...
Defined Technology PortfolioSM
|
|||
![]() |
Why
Technology Now?
Imagine your world without cable TV, a cellular phone or a home computer. How would your place of business operate without online services and networking capabilities? While many technology companies have seen ups and downs, overall, the industry's products have become essential to the way we do business and how we live. Despite wide variations over the last few years in the performance of certain stocks in the Merrill Lynch 100 Technology Index (ML 100 Index), the sector itself continues to redefine our economy and future in dramatic ways. The Rebalancing Model By applying a Rebalancing Model to the ML 100 Index, the Portfolio seeks to outperform the Index by reweighting each stock to increase potential return. Bernard V. Tew, Ph.D., Chairman of Q.E.D. Investments, designed his quantitative model as a means for improving returns and controlling risks in speculative equity sectors. As Portfolio Consultant for the Defined Technology Portfolio, Dr. Tew works with Defined Asset Funds to apply the following stock selection process: Define the Universe
|
Construct an
Enhanced Portfolio
Stocks in the ML 100 Index are then analyzed by the Portfolio Consultant for historical correlation relationships to identify stocks whose prices move inversely to one another. These relationships create a portfolio of stocks that complement each other, which may reduce volatility. Reweight the Index
Rebalance the Portfolio
|
Past Performance of Prior Defined Technology Portfolios | |||||
Past performance is no guarantee of future results. | |||||
From Inception Through 6/30/00 (including annual rollovers) | Most Recently Completed Portfolio | ||||
|
|||||
Series | Inception Date | Annualized Return | Period | Annualized Return | |
99C* | 8/25/98 | 76.32% | 8/25/98-9/24/99 | 66.73% | |
A | 1/14/99 | 61.02 | 1/14/99-2/16/00 | 94.83 | |
C | 5/5/99 | 75.90 | 5/5/99-6/6/00 | 81.46 | |
The chart above shows average annual total returns which represent price changes plus dividends reinvested, divided by the initial public offering price, and reflect deduction of maximum sales charges and expenses. Return for Series From Inception differ from Most Recently Completed Portfolio because the former figures reflect different performance periods and a reduced sales charge on annual rollovers. * This Portfolio was originally
Series I and rolled into Series 99C on August 30, 1999.
|
T H E M E R R I L L L Y N C H 1 0 0 T E C H N O L O G Y I N D E X § |
---|
Company | Symbol | Company | Symbol | |||||
1. | 3Com Corporation | COMS | 51. | KLA-Tencor Corporation | KLAC | |||
2. | ADC Telecommunications, Inc. | ADCT | 52. | Lexmark International Group, Inc. | LXK | |||
3. | Adobe Systems, Inc. || | ADBE | 53. | Linear Technology Corporation || | LLTC | |||
4. | Alcatel || # | ALA | 54. | LSI Logic Corporation | LSI | |||
5. | Altera Corporation | ALTR | 55. | Lucent Technologies, Inc. || | LU | |||
6. | Amazon.com, Inc. | AMZN | 56. | Maxim Integrated Products, Inc. | MXIM | |||
7. | America Online, Inc. | AOL | 57. | Metromedia Fiber Network, Inc. | MFNX | |||
8. | Analog Devices, Inc. | ADI | 58. | Micron Technology, Inc. | MU | |||
9. | Apple Computer, Inc. | AAPL | 59. | Microsoft Corporation | MSFT | |||
10. | Applied Materials, Inc. | AMAT | 60. | Molex, Inc. || | MOLX | |||
11. | Ariba, Inc. | ARBA | 61. | Motorola, Inc. || | MOT | |||
12. | ASM Lithography Holding N.V # | ASML | 62. | National Semiconductor Corporation | NSM | |||
13. | At Home Corporation | ATHM | 63. | Network Appliance, Inc. | NTAP | |||
14. | Automatic Data Processing, Inc. || | AUD | 64. | Nextel Communications, Inc. | NXTL | |||
15. | BMC Software, Inc. | BMCS | 65. | Nokia Corporation || # | NOK | |||
16. | Broadcom Corporation | BRCM | 66. | Nortel Networks Corporation || # | NT | |||
17. | BroadVision, Inc. | BVSN | 67. | Novell, Inc. | NOVL | |||
18. | CIENA Corporation | CIEN | 68. | Oracle Corporation | ORCL | |||
19. | Cisco Systems, Inc. | CSCO | 69. | Parametric Technology Corporation | PMTC | |||
20. | Citrix Systems, Inc. | CTXS | 70. | Paychex, Inc. || | PAYX | |||
21. | CMGI, Inc. | CMGI | 71. | Philips Electronics NY || # | PHG | |||
22. | Commerce One, Inc. | CMRC | 72. | Phone.com, Inc. | PHCM | |||
23. | Compaq Computer Corporation || | CPQ | 73. | PMC-Sierra, Inc. # | PMCS | |||
24. | Computer Associates International, Inc. || | CA | 74. | Portal Software, Inc. | PRSF | |||
25. | Computer Sciences Corporation | CSC | 75. | Priceline.com, Inc. | PCLN | |||
26. | Compuware Corporation | CPWR | 76. | QUALCOMM, Inc. | QCOM | |||
27. | Comverse Technology, Inc. | CMVT | 77. | RealNetworks, Inc. | RNWK | |||
28. | Conexant Systems, Inc. | CNXT | 78. | SAPAG || # | SAP | |||
29. | Dell Computer Corporation | DELL | 79. | Seagate Technology, Inc. | SEG | |||
30. | DoubleClick, Inc. | DCLK | 80. | Siebel Systems, Inc. | SEBL | |||
31. | E*TRADE Group, Inc. | EGRP | 81. | Solectron Corporation | SLR | |||
32. | eBay, Inc. | EBAY | 82. | SONY Corporation || # | SNE | |||
33. | Electronic Arts, Inc. | ERTS | 83. | STMicroelectronics N.V. || # | STM | |||
34. | Electronic Data Systems Corporation || | EDS | 84. | Sun Microsystems, Inc. | SUNW | |||
35. | EMC Corporation | EMC | 85. | Sycamore Networks, Inc. | SCMR | |||
36. | Exodus Communications, Inc. | EXDS | 86. | Taiwan Semiconductor Manufacturing Company Limited # | TSM | |||
37. | First Data Corporation || | FDC | 87. | Telefonaktiebolaget LM Ericsson AB || # | ERICY | |||
38. | Foundry Networks, Inc. | FDRY | 88. | Tellabs, Inc. | TLAB | |||
39. | Gateway, Inc. | GTW | 89. | Teradyne, Inc. | TER | |||
40. | Hewlett-Packard Company || | HWP | 90. | Terra Networks, S.A. # | TRRA | |||
41. | i2 Technologies, Inc. | ITWO | 91. | Texas Instruments, Inc. || | TXN | |||
42. | Infosys Technologies Limited || # | INFY | 92. | TIBCO Software, Inc. | TIBX | |||
43. | Inktomi Corporation | INKT | 93. | Unisys Corporation | UIS | |||
44. | Intel Corporation || | INTC | 94. | VeriSign, Inc. | VRSN | |||
45. | Internap Network Services Corporation | INAP | 95. | VERITAS Software Corporation | VRTS | |||
46. | International Business Machines Corporation || | IBM | 96. | Vignette Corporation | VIGN | |||
47. | Internet Capital Group, Inc. | ICGE | 97. | Vitesse Semiconductor Corporation | VTSS | |||
48. | Intuit, Inc. | INTU | 98. | Xerox Corporation || | XRX | |||
49. | JDS Uniphase Corporation | JDSU | 99. | Xilinx, Inc. | XLNX | |||
50. | Juniper Networks, Inc. | JNPR | 100. | Yahoo! Inc. | YHOO | |||
§ Index as of 7/3/00. || Only these stocks currently pay dividends. # The issuer is a foreign corporation; dividends, if any, may be subject to withholding taxes. |
![]() |
QUANTITIVE RESEARCH & INDEX Institutional Holdings Portfolio Multinational PortfolioSM Principled Values Portfolio S&P Market Cap Plus Portfolio S&P 500 Trust S&P MidCap Trust Select S&P Industrial Portfolio Select Growth Portfolio Select Large-Cap Growth Portfolio Select Ten Portfolio (DJIA) Standard & Poor's Industry Turnaround Portfolio Standard & Poor's Intrinsic Value Portfolio United Kingdom Portfolio (Financial Times Index) SECTOR Biotechnology Portfolio Broadband Portfolio Defined Technology PortfolioSM Energy Portfolio Financial Services Portfolio Global Theme & Sector Portfolio Health Care Trust Internet Portfolio Media Portfolio Real Estate Income Fund Tele-Global Trust Utility Portfolio FUNDAMENTAL RESEARCH 2000 Year-Ahead (Domestic) Portfolio 2000 Year-Ahead International Portfolio Baby Boom Economy PortfoliosSM Core Holdings Portfolio Earnings Growth Consistency Portfolio European Growth Portfolio Financial Services Portfolio Pacific Rim Portfolio Premier American Portfolio Premier World Portfolio Western Premier Portfolio FIXED INCOME Corporate Funds Government Funds Municipal Funds |
Defining
Your Risks
Please keep in mind the following factors when considering this investment. Your financial professional will be happy to answer any questions you may have. |
|
|
There can be no assurance that this Portfolio
will meet its objective or that it will outperform the ML100 Index. |
|
This Portfolio is designed for investors who
can assume the additional risks associated with aggressive growth equity
investments, and may not be appropriate for investors seeking capital preservation
or current income. |
|
This Portfolio is composed of aggressive growth stocks
that are subject to extreme price volatility; therefore, it inay be considered
speculative. |
|
This Portfolio consists exclusively of stocks from the
technology sector and should not be considered a complete investment
program. |
|
This Portfolio does not reflect research opinions
or any buy or sell recommendations from the Sponsor. |
|
This Portfolio contains international equity
investrments, which may involve special risks including higher price volatility,
currency fluctuations and political developments. |
Tax Efficiency When seeking capital appreciation, managing tax liability on capital gains can be vital 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, certain investors may defer recognition of gains and losses for federal tax purposes on stocks that are transferred to the new Portfolio. Please consult your tax advisor concerning state and local taxation. |
Defining
Your Costs You will pay an initial sales charge of about 1% the first time you buy. In addition, you'll pay a deferred sales charge of $15.00 per 1,000 units, about 1.50%. |
|||
As
a % of Public
Offering Price |
Amount
Per
1,000 Units |
||
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
(as a % of net assets) |
0.250% | $2.48 | |
Estimated Annual Expenses
(as a % of net assets) |
0.187% | $1.85 | |
Estimated Organization Costs | $1.53 | ||
If you sell your units before the terinination
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. Volume Purchase Discounts For larger purchases, the overall sales charges are reduced to put more of your investment dollars to work for you. |
If You Invest: |
Your Maximum Sales Charge (as a % of each $1,000 invested) Will Be: |
||
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 | ||
$5,000,000 or more | 0.35 | ||
Invest in Technology Today! You can get started with $250. This Fund is eligible for purchase through Merrill Lynch Unlimited AdvantageSM (MLUA) accounts, in which the above sales charges do not apply and MLUA fees are applied. Call your financial professional to learn how the Defined Technology Portfolio may help to meet your personal investment goals and how it niay be appropriate for your IRA account. You can also request a free prospectus containing more complete information, including sales charges, expenses and risks - or download a prospectus from our Web site definedfunds.com/ml. Please read it carefully before you invest or send money. This information in this brochure is not complete, and may be changed. We may not sell the securities of the next Portfolio until the registration statement filed with the Securities and Exchange Commission is effective. This brochure is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where their offer or sale, is not permitted. |
![]() |
Printed on Recycled Paper | 70116BR-7/00 |
© 2000 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC. Defined Asset Funds is a registered service mark of Merrill Lynch & Co., Inc. |
|