Defined Asset Funds [Registered]
Standard & Poor's Intrinsic Value Portfolio
Series 00B [8/21/00 - Current Offering] | cusip: 29471R182
Fund Overview
As of August 29, 2000
Closing NAV: 0.98525 Previous Close: 0.98675 Change: -0.00150
% Change: -0.15000%
[A 3-by-3 square chart indicates risk levels associated with small-, mid-, and
large-cap stocks in terms of value, blend, and growth. The various risk levels
are color-coded, red indicating the highest risk level, and blue the lowest.
The square corresponding to large-cap growth is shaded orange, reflecting a
moderately high level of risk].
The Objective:
The Portfolio seeks capital appreciation by investing in stocks believed to
have the potential for growth, based on a combination of fundamental and
valuation measurements.
The Strategy:
The goal is to select those stocks whose intrinsic values are higher than their
current market prices. Standard & Poor's developed a proprietary analytical
process that uses a combination of fundamental and valuation measurements to
identify such stocks. The process relies on a series of quantitative screens to
select stocks for the Portfolio.
Offered By:
This portfolio is offered by Merrill Lynch (SIP00B), PaineWebber (SIP00B),
Morgan Stanley Dean Witter (SPIV00B), Salomon Smith Barney (SIP00B).
Portfolio Holdings
Dividend Information for the securities listed below is available in the
prospectus for this Fund.
The offering, redemption and repurchase prices for the Fund take into account
expenses and sales charges. Therefore, you will not be able to calculate these
prices (or related performance information) with the security prices and
weightings listed below.
As of August 29, 2000
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% of
Security Symbol Price Portfolio
Biogen, Inc. BGEN 72.13 4.70
Investment Technology Group Inc. ITG 49.06 4.69
Franklin Resources Inc. BEN 37.06 4.67
Bristol-Myers Squibb Company BMY 53.44 4.64
Watson Pharmaceutical Inc. WPI 59.19 4.63
Adobe Systems, Inc. ADBE 131.63 4.58
John Nuveen Co. JNC 44.88 4.49
SEI Investments Company SEIC 64.25 4.47
Viad Corporation VVI 29.31 4.46
Microsoft Corporation MSFT 70.94 4.32
BellSouth Corporation BLS 36.56 4.29
Pitney Bowes, Inc. PBI 35.25 4.29
Verizon Communications VZ 42.88 4.29
Southdown Inc. SDW 61.31 4.26
Price (T. Rowe) Associates TROW 42.63 4.26
Tellabs, Inc. TLAB 57.13 4.22
The PMI Group Inc. PMI 59.94 4.17
Schering-Plough Corporation SGP 39.94 4.17
MGIC Investment Corporation MTG 56.06 4.14
Gentex Corporation GNTX 25.06 4.14
Gannett Co. Inc. GCI 56.00 4.14
Lincare Holdings Inc. LNCR 24.44 4.04
ALLTEL Corporation AT 51.44 4.02
Selection Methodology
Our Portfolio Consultant, Standard & Poor's uses the following criteria to
determine whether a stock's current market price justifies its purchase.
Companies with High Free Cash Flow: This is intended to identify those
companies with a cash flow of greater than $20 million. This measure is
calculated by adding a company's net income, depreciation and amortization, and
then subtracting its capital expenditures. This is intended to identify those
companies with high positive cash flows.
Profitability: Net Profit Margins of 15% or more for the last year. This
measures a company's franchise value. Return on Equity of more than 15% for the
last three fiscal years and the last four quarters. This measures how
efficiently the company uses its capital.
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Market Acceptance: This screen selects companies that have been able to add
more than one dollar of market value for each dollar of earnings retained. This
measures market acceptance and momentum.
Eliminate Overpriced Stocks: Stocks which trade below their Intrinsic Value are
eliminated.
Liquidity: Defined Asset Funds reviews the remaining stocks for market
capitalization, liquidity and other factors. Only those stocks which pass all
of the above screens are included in the Standard & Poor's Intrinsic Value
Portfolio.
Performance
Performance From Inception Through June 30, 2000
Including Annual Rollovers Most Recently Completed
Portfolio
Series Inception Cumulative Average Annual
Date Total Return Total Return Offer to End Date Return
Series C 11/21/96 78.39% 17.40% 12/14/98 - 1/14/00 33.38%
Series A 4/2/97 85.19% 20.90% 4/19/99 - 5/19/00 13.36%
Series B 8/6/97 36.78% 11.40% 8/10/98 - 9/10/99 27.02%
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.
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%.
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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 - 8/21/00)
Estimated Annual Expenses 0.229% $2.26
(as a % of net assets on date of deposit)
Estimated Organization Costs $2.74
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.
If You Your Maximum Sales Charge
Invest: (as a % of your Investment) Will Be:
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 0.75%
Is this Fund appropriate for you?
Yes, if you want capital appreciation. You may benefit from a quantitatively
selected portfolio whose risk is reduced by investing in equity securities of
different issuers in a variety of industries.
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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.
The 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.
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
stock prices will not decrease or that the Portfolio will outperform general
market indices, especially during periods of sharply rising stock prices.
Distributions and Taxes
Distribution Frequency (if any)
Two (2) per year
Reinvestment Options
By selecting the reinvestment option, you're choosing to have your
distributions used to purchase additional units of the fund (reinvestment). As
such, your investment will increase each distribution period, and because
distribution payments are based in part on the size of your investment, 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 any 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 can defer recognition of gains and losses on stocks that are
transferred to the new Portfolio. Please consult your tax advisor concerning
state and local taxation.
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Trustee
The Bank of New York
Unit Investment Trust Department
PO Box 974
Wall Street Division
New York, New York 10268-0974
1-800-221-7771
Defined Asset Funds [Registered] 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 | Salomon Smith Barney | PaineWebber | Morgan Stanley Dean Witter
"Standard & Poor's [Registered]", "S&P [Registered]" and "S&P 500" are
trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by
Defined Asset Funds. The Fund is not sponsored, managed, sold or promoted by
Standard & Poor's.
Not all strategies are appropriate at all times. The opinions expressed in this
site do not constitute investment advice. Independent advice 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
US. 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 be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction.
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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 than US
investments. The risks include political and economic instability, changing
currency exchange rates, foreign taxes and differences in financial accounting
standards.
Use of this site signifies your acceptance of our Terms and Conditions and
Privacy Policy
The information on this Internet site is directed at, and is intended for
distribution to, and use by, persons in the United States only.
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