Defined Asset Funds [Registered]
Baby Boom Economy Portfolio [SM]
- Growth & Income
Se ries 00B [8/31/00 - Current
Off ering] | cusip: 29471T170
Fund Overview
As of September 06, 2000
Closing NAV: 0.96790 Previous Close: 0.98539 Change: -0.01749
% Change: -1.77000%
[A 3-by-3 square chart illustrates various risk levels (red indicating the
highest and blue the lowest) associated with value, blend and growth of small-,
mid-, and large-cap investments. The square corresponding to large-cap growth
is marked in light green, indicating low risk level.]
The 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 25% in fixed-income securities for about one
year.
The Strategy:
The baby boomers, the generation born between 1946 and 1964, have remarkably
consistent saving, spending and lifestyle patterns. Their past spending appears
to have a direct correlation with the growth of certain industries that meet
the boomers' needs. We 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 invests approximately 75% of its assets in a number of stocks
favored by demographic trends - companies which we expect to experience growth
as baby boomers grow older. Portfolio Consultants William Sterling and Stephen
Waite, authors of the book "Boomernomics," have selected the stocks for this
Portfolio with the aid of their team of financial professionals. 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 health-care, technology,
telecommunications, consumer products and financial services industries.
The Portfolio invests approximately 25% of its assets in fixed-income
securities consisting of U.S. Government Treasury Securities with various
maturities.
Growth and Income Series stocks are drawn from the following industries:
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Portfolio Percentages as of 8/31/00
Technology 18%
Medical 16%
Financial Services 15%
Telecommunications Equipment/Services 12%
Consumer Products 6%
Energy 3%
Diversified Manufacturing Operations 2%
Advertising 1%
Communications 1%
Multimedia 1%
U.S. Government Treasury Securities 25%
The following countries are represented in the Portfolio:
Portfolio Percentages as of 8/31/00
United States, Equity 52%
United States, Fixed Income 25%
Japan 5%
United Kingdom 5%
Sweden 4%
Canada 3%
Finland 2%
Switzerland 2%
France 1%
Netherlands 1%
Offered By:
This portfolio is offered by Merrill Lynch (BBA00B), PaineWebber (BBA00B),
Morgan Stanley Dean Witter (BBAA00B).
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 changes.
Therefore, you will not be able to calculate these prices (or related
performance information) with the security prices and weightings listed below.
As of September 06, 2000
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Security Symbol Price % of Portfolio
US Treasury (6.5% 15-AUG-2005) 102.38 5.17
US Treasury (6.25% 31-AUG-2002) 100.38 5.07
US TREASURY (6.00% 15-AUG-2004) 100.22 5.06
US TREASURY (5.75% 15-AUG-2003) 99.38 5.02
US Treasury (5.5% 31-AUG-2001) 99.38 5.02
Northern Trust Corporation NTRS 84.58 2.23
General Electric Company GE 59.00 2.04
Skandia Forsakrings AB SDIA SS 21.06 2.00
Nortel Networks Corporation NT 77.38 1.98
Goldman Sachs Group Inc. GS 128.13 1.95
JDS Uniphase Corporation JDSU 116.75 1.86
The Charles Schwab Corporation SCH 39.00 1.70
Genentech, Inc. DNA 170.00 1.65
NTT Docomo Inc NTDMY 141.50 1.57
Network Appliance, Inc. NTAP 101.63 1.55
Vodafone AirTouch Plc VOD GS 4.06 1.55
Svenska Handelsbanken - A Shares SHBA SS 16.60 1.54
EMC Corporation EMC 96.63 1.54
American International Group, Inc. AIG 87.75 1.52
Microsoft Corporation MSFT 69.44 1.49
Xilinx, Inc. XLNX 81.94 1.48
Pfizer, Inc. PFE 39.63 1.43
Axa CS FR 144.57 1.40
Cisco Systems, Inc. CSCO 64.25 1.34
Bank of New York Co. Inc. BK 53.75 1.19
Juniper Networks, Inc. JNPR 209.69 1.16
VERITAS Software Corporation VRTS 118.50 1.15
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Security Symbol Price % of Portfolio
Sonera Corporation SNRA 31.81 1.13
Enron Corporation ENE 84.38 1.11
Charter Communications, Inc. CHTR 15.06 1.11
SONY Corporation SNE 106.44 1.11
Broadcom Corporation BRCM 225.88 1.10
Julius Baer Holding Limited BAER SW 5,174.74 1.08
Viacom Inc. VIAB 64.63 1.08
PMC-Sierra, Inc. PMCS 217.05 1.05
Wal-Mart Stores, Inc. WMT 50.38 1.05
Intel Corporation INTC 65.70 1.05
Glaxo Holdings GLXOGS 27.79 1.04
Telefonaktiebolaget LM Ericsson AB ERICY 20.00 1.01
Ballard Power Systems Inc. BLDP 110.06 0.99
MedImmune, Inc. MEDI 74.31 0.98
Keyence Corporation 6861 JP KYC JP 348.67 0.97
Nokia Corporation NOK 43.44 0.97
Best Buy Company, Inc. BBY 61.00 0.93
Lowe's Companies LOW 47.63 0.93
COLT Telecom Group Plc CTM LN 31.97 0.89
Millennium Pharmaceuticals MLNM 139.25 0.87
Chase Manhattan Corporation CMB 56.50 0.82
The Home Depot, Inc. HD 50.63 0.81
Nintendo Company Ltd. NTDOY 22.03 0.80
Apple Computer, Inc. AAPL 58.44 0.77
Dell Computer Corporation DELL 39.50 0.77
Human Genome Sciences, Inc. HGSI 156.38 0.76
Sepracor Inc. SEPR 99.00 0.76
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Security Symbol Price % of Portfolio
Brocade Communications Systems, Inc. BRCD 216.88 0.75
Bristol-Myers Squibb Company BMY 50.75 0.74
Omnicom Group Inc. OMC 81.75 0.74
NTT Data Corporation NMSI JT 10,583.01 0.74
Schering-Plough Corporation SGP 39.06 0.73
Sycamore Networks, Inc. SCMR 131.63 0.73
Abgenix, Inc. ABGX 69.38 0.72
Immunex Corporation IMNX 44.38 0.71
America Online, Inc. AOL 56.50 0.71
Eli Lilly and Company LLY 67.19 0.70
ARM Holdings Plc ARM GS 11.29 0.70
Phonak Holding AG PHBN SW 3,027.74 0.63
Fuel Cell Energy, Inc. FCEL 124.00 0.43
CuraGen Corporation CRGN 44.00 0.43
Johnson & Johnson JNJ 93.25 0.39
Smithkline Beecham Plc SB GS 12.64 0.38
ImClone Systems, Inc. IMCL 90.13 0.38
Capstone Turbine Corporation CPST 89.50 0.38
ING Groep N.V. IGPENA 66.19 0.37
Roche Holding AG ROHBY 86.00 0.36
Sonic Innovations Inc. SNCI 10.06 0.36
American Home Products Corporation AHP 51.00 0.36
Pharmacia Corporation PHA 55.94 0.35
Chiron Corporation CHIR 49.50 0.35
MCI WorldCom, Inc. WCOM 31.50 0.33
Novartis AG NOVZN.S 1,464.35 0.31
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Selection Methodology
The Portfolio Consultants for this Portfolio 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, select the securities they believe are likely to
benefit from future baby boomer trends.
Baby Boom Stock Selections
When selecting stocks for the Baby Boom Economy Growth & Income Series, our
Portfolio Consultants take a top-down approach to determine the sectors they
believe are likely to benefit from the maturing boomer population. Stocks
within these sectors are also analyzed by Defined Asset Funds for market
capitalization and liquidity.
Baby Boom Treasury Security Selections
Five AAA-rated U.S. Treasury notes, one maturing in each of the next five
years, are chosen to help balance the Portfolio and increase current income.
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 Public Amount Per
Offering Price 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 on date of deposit - 0.250% $ 2.48
8/31/00)
Estimated Annual Expenses 0.408% $ 4.03
(as a % of net assets on date of deposit)
Estimated Organization Costs $ 0.97
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.
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Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Your Maximum Sales Charge
If You 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?
The Growth and Income Portfolio is 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.
Risk Considerations
Please keep in mind the following factors when considering this investment.
Your financial professional will be happy to answer any question you may have.
A substanial portion of the stocks in the Portfolio are of foreign issuers and
can involve special risks, including higher price volatility and currency
fluctuations.
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.
The value of your investment will fluctuate with the prices of the underlying
stocks. Stock prices can be volatile. Changes in interest rates could also
adversely affect the value of any portfolio.
There can be no assurance that the Portfolio will meet its objective.
The Portfolio is concentrated in stocks in the technology sector, which may
involve special risks.
Distribution and Taxes
Distribution Frequency (if any)
One (1) per year
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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
Generally, dividends and any net capital gains will be subject to tax each
year, whether or not reinvested. By holding this Fund for more than one year,
investors may be eligible for favorable Federal tax rates on net long-term
capital gains (currently no more than 20%). Please consult your tax advisor
concerning state and local taxation.
Trustee
The Chase Manhattan Bank
Unit Investment Trust Department
4 New York Plaza - 6th Floor
New York, New York 10004
1-800-323-1508
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
This fund is eligible for purchase through the Unlimited Advantage [SM]
program. Therefore, performance information, fees and expenses will differ from
those shown on this site. Please contact your financial professional for
details specific to Unlimited Advantage accounts.
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
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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 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 than 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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