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One way to select sound investments is to
choose them from a recognized indexanother is to use a disciplined, quantitative
selection strategy. Defined Asset Funds® has a portfolio
that does both. If you want to balance your holdings with a group of attractive
stocks that offer higher dividend yields from established, large-cap companies,
we can help with our...
Select S&P Industrial Portfolio |
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Defined
Asset Funds
Our Philosophy At Defined Asset
Funds, we believe that knowledge and discipline are essential to sound
investment planning. For this reason, our unit investment trusts provide
the information to help you invest appropriately, and the discipline to
help you stay on course. |
The
Strategy
The Select S&P Portfolio singles out stocks from the S&P Industrial Index* for a combination of capital appreciation potential and current dividend income. This value-oriented Portfolio seeks total return through a contrarian strategy of selecting 15 Index stocks with high dividend yields, and holding them for about one year. The Selection Process The Select S&P Industrial Portfolio looks for potential values in the equity market by investing in companies from the S&P Industrial Index that may be currently out of favor. It does this through a disciplined four-part screening process:
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The Select S&P Industrial Portfolio is based on a disciplined strategy. Each year, we intend to reapply the screening process to select a new Portfolio. At that time, you can choose to either redeem your investment, or roll your proceeds into the next Portfolio, if available, at a reduced sales charge. Although each Portfolio is a one-year investment, we recommend you stay with the Strategy for at least three to five years for potentially more consistent results. |
Past Performance of Prior Select S&P Industrial Portfolios |
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Past Performance is no guarantee of future results. | ||||
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The chart above shows average annual total returns which represent price changes plus dividends, divided by the initial public offering price, and reflects deduction of maximum sales charges and expenses. From Inception returns differ from Most Recently Completed Portfolio returns because the former figures reflect different performance periods and a reduced sales charge on annual rollovers. |
Select S&P Industrial Portfolio -- 2000 Series G | |||
Name of Issuer | Symbol |
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Newell Rubbermaid, Inc. | NWL |
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Pitney Bowes, Inc. | PBI |
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ConAgra Foods, Inc. | CAG |
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The May Department Stores Company | MAY |
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Albertson's, Inc. | ABS |
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Rohm and Haas Company | ROH |
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Textron, Inc. | TXT |
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Avery Dennison Corporation | AVY |
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ALLTEL Corporation | AT |
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Emerson Electric Company | EMR |
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Johnson Controls, Inc. | JCI |
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The Gillette Company | G |
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Hershey Foods Corporation | HSY |
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Ingersoll-Rand Company | IR |
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The Clorox Company | CLX |
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The Portfolio does not reflect the research opinions or any buy or sell recommendations of any of the Sponsors or Standard & Poor's. |
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The
S&P Industrial Index The S&P Industrial Index tracks industrial
stocks from the S&P 500, currently representing about 375 companies.
The S&P 500 is a capitalization-weighted index of 500 stocks selected
for market size, liquidity and industry group representation. It holds
industrials, utilities, financials and transportation stocks, and is widely
used as a benchmark of U.S. equity performance.
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Hypothetical Past
Performance of Strategy (not any Portfolio)
27-Year Annual Total Returns Strategy returns are net of sales charges and expenses.§ |
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Year | Strategy§ | DJIA | S&P
500 Index |
S&P Industrial Index |
Year | Strategy§ | DJIA | S&P
500 Index |
S&P
Industrial Index |
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1973 | -20.13% | -13.12% | -14.66% | -14.61% | 1988 | 42.04 | 15.95 | 16.58 | 15.80 | |
1974 | -5.35 | -23.14 | -26.47 | -26.54 | 1989 | 35.40 | 31.71 | 31.11 | 29.30 | |
1975 | 40.63 | 44.40 | 36.92 | 36.78 | 1990 | 0.96 | -0.57 | -3.20 | -0.84 | |
1976 | 30.89 | 22.72 | 23.53 | 22.59 | 1991 | 27.06 | 23.93 | 30.51 | 30.39 | |
1977 | -6.53 | -12.71 | -7.19 | -8.20 | 1992 | 11.50 | 7.34 | 7.67 | 5.63 | |
1978 | 6.06 | 2.69 | 6.39 | 7.50 | 1993 | 2.28 | 16.72 | 9.97 | 8.90 | |
1979 | 26.47 | 10.52 | 18.02 | 18.40 | 1994 | 11.41 | 4.95 | 1.30 | 3.75 | |
1980 | 18.23 | 21.41 | 31.50 | 32.98 | 1995 | 36.68 | 36.48 | 37.10 | 34.26 | |
1981 | 7.67 | -3.40 | -4.83 | -6.69 | 1996 | 12.25 | 28.57 | 22.69 | 22.70 | |
1982 | 25.87 | 25.79 | 20.26 | 20.14 | 1997 | 33.34 | 24.78 | 33.10 | 30.80 | |
1983 | 24.72 | 25.68 | 22.27 | 22.79 | 1998 | 15.10 | 18.00 | 28.34 | 33.43 | |
1984 | 12.34 | 1.06 | 5.95 | 4.09 | 1999 | -13.10 | 27.01 | 20.89 | 25.66 | |
1985 | 29.98 | 32.78 | 31.43 | 30.08 |
9/30/00
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-1.58 | -6.28 | -1.39 | -6.17 | |
1986 | 28.78 | 26.91 | 18.37 | 18.54 | ||||||
1987 | 2.52 | 6.02 | 5.67 | 9.13 |
Average
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14.46% | 13.02% | 13.23% | 13.15% | |
Average Annual
Total Returns
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For periods ending 12/31/99 |
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Strategy§ | 9.80% | 15.23% | 12.69% | 17.28% | 17.34% | 17.52% | ||
DJIA | 23.20 | 26.83 | 18.19 | 19.52 | 17.95 | 16.72 | ||
S&P 500 Index | 27.34 | 28.28 | 18.07 | 18.78 | 17.64 | 17.02 | ||
S&P Industrial Index | 29.92 | 29.29 | 18.75 | 19.26 | 17.86 | 17.16 | ||
Hypothetical past performance of the Strategy is no guarantee of future performance of any Portfolio. There can be no assurance that any Portfolio will outperform either index. The Strategy would have underperformed the DJIA in 10, and the S&P 500 Index in 11 and the S&P Industrial Index in 10 of the last 27 years. Returns shown represent price changes plus dividends reinvested at year ends, divided by the initial public offering price, and do not reflect deduction of any commissions or taxes. Portfolios are established and liquidated at different times during the year, they normally purchase and sell stocks at prices different from those used in determining Portfolio unit price, they are not fully invested at all times and stocks may not be weighted equally. |
* | "Standard & Poor's," "S&P," "S&P 500 Index" and "S&P Industrial Index" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Defined Asset Funds. The Portfolio is not sponsored, managed, sold or promoted by Standard & Poor's. The name "Dow Jones Industrial Average" is the property of Dow Jones & Company, Inc. |
| Initial date of deposit - November 13, 2000. |
| Current dividend yield for each stock was calculated by annualizing the last monthly, quarterly or semi-annual ordinary dividend received on that stock and dividing the result by its market value as of the close of trading on November 10, 2000. There can be no assurance that future dividends, if any, will be maintained at the indicated rates. |
§ | Net of Portfolio sales charges (2.50% for the first year, 1.50% for each subsequent year), creation and development fee and estimated expenses. |
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QUANTITATIVE RESEARCH
& INDEX
Institutional Holdings 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
FUNDAMENTAL RESEARCH
FIXED INCOME
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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. |
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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 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 may 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. |
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%. |
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Unitholder Fees | Maximum
as a %
of the Amount Invested |
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Creation and Development
(0.250% of net assets) |
0.30% |
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Sales Charges | 2.50% |
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Total maximum Sales Charges | 2.80% | ||
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If you sell your units before termination, any 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. | |||
Portfolio Expenses | Amount per 1,000 Units | ||
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Estimated Annual Expenses
(0.232% of net assets) |
$2.30 | ||
Estimated Organization Costs | $1.83 | ||
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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. |
If You
Invest: |
Your
Maximum Sales Charge
(as a % of your investment) Will Be: |
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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 or more | 0.75 | ||
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Make Quality
Part Of Your Portfolio Today!
You can get started with $250. This Fund is eligible for purchase through Unlimited AdvantageSM accounts, in which Unlimited Advantage fees apply in lieu of traditional sales charges. Call your financial professional to learn how the Select S&P Industrial Portfolio may help to meet your personal investment goals and how it may be appropriate for your IRA account. You may request a free prospectus containing more complete information, including sales charges, expenses and risks.You may also download a prospectus from our Web site address listed above. Please read the prospectus carefully before you invest or send money. The 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. |
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Printed on Recycled Paper | 11579BR-11/00 |
© 2000 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC. Defined Asset Funds is a registered service mark of Merrill Lynch & Co., Inc. |
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