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Previous: CWMBS INC RESIDENTIAL ASSET SECURITIZATION TRUST 2000-A5, 8-K, EX-99.1466, 2001-01-17 |
Next: DOERGE & SMITH PRIVATE ADVISORY LLC, 13F-HR, 2001-01-17 |
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A quantitative approach to portfolio selection can sometimes reveal unseen
investment opportunities. Combining both fundamental and technical stock-selection
techniques can add balance to your portfolio. Now, by applying our Multi-Disciplined
Strategy to a large-cap index, Defined Assets Funds® offers you a sophisticated
approach to equity investing with our...
Institutional Holdings 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. We've found that diversity and drive can be key to uncovering compelling investments. To this end, our experienced team of research analysts and securities traders searches Wall Street and beyond, creating portfolios for strong potential. Our equity funds seek to capitalize on vibrant economic sectors, innovative quantitative strategies and thorough fundamental analysis. Our fixed-income funds offer the regular income and stability to help balance and diversify your investment assets. At Defined Asset Funds, we set the foundation for each of our portfolios in this way, because we have a very important goal in mind—yours. |
Many Trends Move in Cycles
• Economies • Industries • Markets • Investment Styles Being prepared for life's inevitable transitions can often mean the difference between a gentle roll and a wild ride. The same holds true for the changes that affect your investments. Defined Asset Funds' multi-disciplined investment approach is a strategy based on four stock-selection methodologies. It selects issues using each methodology and combines them to produce a 20-stock portfolio with complementary investment style characteristics. Financial Security is a Journey, Not a Destination At Defined Assets Funds, we believe that working toward financial security is a long-term process, which can be helped by investing in a consistent and disciplined manner. We recognize that predicting the market over the short term is almost impossible. We also believe that human emotions can interfere with the execution of a sound and logical investment strategy. Our Multi-Disciplined Strategy is designed to facilitate an ordered and rational approach to investing, to help keep you on track toward your financial goals. |
The Selection Model
We start with the Amex Institutional IndexTM* (excluding utilities).
This Index comprises approximately 75 of the most widely-held equity
investments among institutional investors. We select stocks for this
Portfolio by applying a proprietary screening process that focuses on a
combination of fundamental and technical factors, with an emphasis on
momentum. The tests consider:
We then choose the top-ranked issues from each category and combine them in a single portfolio. While there can be no guarantee of results, the objective of this Multi-Disciplined Strategy is to produce a balance and diversified portfolio of large-cap stocks—all components of the Amex Institutional Index. Stay with the Strategy When this Portfolio ends, you can choose to either redeem your investment, or roll your proceeds into the next Portfolio, if available, at a reduced sales charge. Although this is a one-year investment, we suggest you continue with this Strategy for at least three to five years for potentially more consistent results. |
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| Past Performance of Prior Institutional Holdings Portfolios | |||||||
| Past performance is no guarantee of future results. | |||||||
| From Inception Through 9/30/00 (including annual rollovers) | Most Recently Completed Portfolio | ||||||
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| Series | Inception Date | Return | Period | Return | |||
| B† | 5/4/99 | 26.21% | 5/4/99-6/6/00 | 43.67% | |||
| D‡ | 9/3/99 | 13.21% | n/a | n/a | |||
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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 figure reflect different performance periods and a reduced sales charge on annual rollovers. |
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| A M U L T I — D I S C I P L I N E D P O R T F O L I O | ||
| Company | Symbol | |
| Abbott Laboratories | ABT | |
| American Home Products Corporation | AHP | |
| The Bank of New York Company, Inc. | BK | |
| The Boeing Company | BA | |
| Eli Lilly and Company | LLY | |
| Enron Corporation | ENE | |
| Fannie Mae | FNM | |
| Freddie Mac | FRE | |
| Medtronic, Inc. | MDT | |
| Merck & Company, Inc. | MRK | |
| Minnesota Mining and Manufacturing Company | MMM | |
| Oracle Corporation§ | ORCL | |
| PepsiCo, Inc. | PEP | |
| Pfizer, Inc. | PFE | |
| Pharmacia Corporation | PHA | |
| Phillip Morris Companies, Inc. | MO | |
| Schering-Plough Corporation | SGP | |
| Schlumberger Limited ‡ | SLB | |
| Tyco International Ltd.|| | TYC | |
| Wells Fargo & Company | WFC | |
| The Portfolio does not reflect any research opinions or any buy or sell recommendations of any sponsor. | ||
| * | "Standard & Poor's" and "S&P 500 Index" are trademarks of The McGraw-Hill Companies, Inc. "Amex" and "Amex Institutional Index" are trademarks of the American Stock Exchange, LLC, a subsidiary of the NASD. These trademarks have been licensed for use by Defined Asset Funds. The Portfolio is not sponsored, managed, sold or promoted by Standard & Poor's or the American Stock Exchange. The American Stock Exchange does not guarantee the accuracy or completeness of the Amex Institutional Index. |
| † | This Portfolio was originally Series 99A and rolled into Series B on May 10, 2000. |
| ‡ | This Portfolio was originally Series 99B and rolled into 2000 Series D on September 14, 2000. |
| § | This stock currently does not pay dividends. |
| || | This issuer is a foreign corporation; current annual dividends, if any, will be subject to withholding tax. |
| # | Hypothetical returns are 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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| Amex Institutional
Index
When it comes to finding a group of large, well-established companies, the Amex Institutional Index can help. It represents approximately 75 stocks most widely held among professionally managed institutional portfolios with market values in excess of $100 million. Its stocks are reviewed quarterly, and the Index is adjusted as necessary to keep current with institutional investments. Hypothetical Past Total Returns Comparison |
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| Year |
Institutional Holdings Strategy# (not any portfolio) |
Amex Institutional Index |
S&P 500* Index |
| 1984 | -0.05% | 4.90% | 5.95 % |
| 1985 | 38.05 | 31.07 | 31.43 |
| 1986 | 20.74 | 19.69 | 18.37 |
| 1987 | 11.43 | 6.58 | 5.67 |
| 1988 | 1.38 | 13.78 | 16.58 |
| 1989 | 29.31 | 33.19 | 31.11 |
| 1990 | 0.03 | 0.55 | -3.20 |
| 1991 | 33.50 | 28.40 | 30.51 |
| 1992 | 4.86 | 4.05 | 7.67 |
| 1993 | 24.49 | 7.51 | 9.97 |
| 1994 | -2.06 | 2.61 | 1.30 |
| 1995 | 39.91 | 39.69 | 37.10 |
| 1996 | 37.25 | 26.22 | 22.69 |
| 1997 | 37.53 | 34.01 | 33.10 |
| 1998 | 40.49 | 38.71 | 28.34 |
| 1999 | 19.41 | 25.83 | 20.89 |
| 9/30/00 | 0.41 | -5.30 | -1.39 |
| Avg. Annual | 19.02% | 17.73% | 16.97% |
| Average Annualized
Returns
For periods ending 12/31/99 |
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| Period |
Institutional Holdings Strategy# |
Amex Institutional Index |
S&P 500 Index |
| 3 Year | 31.82% | 32.74% | 27.34% |
| 5 Year | 34.48 | 32.76 | 28.28 |
| 10 Year | 22.30 | 19.84 | 18.07 |
| 15 Year | 21.38 | 20.04 | 18.78 |
| Hypothetical past performance of the Strategy is no assurance of future results of any Portfolio. 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. Portfolio performance differs from the Strategy because of commissions and expenses and is not adjusted quarterly as is the Index. Portfolios are established and liquidated at different times during the year, and their stocks are held for approximately one year. They normally purchase and sell 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. | |||
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| QUANTITATIVE RESEARCH & INDEX Institutional Holdings 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 Intrinsic Value Portfolio United Kingdom Portfolio (Financial Times Index) SECTOR Biotechnology Portfolio Broadband Portfolio Energy Portfolio Financial Services Portfolio Health Care Trust Internet Portfolio Media Portfolio Real Estate Income Fund Tele-Global Trust Utility Portfolio FUNDAMENTAL RESEARCH Baby Boom Economy PortfoliosSM Earnings Growth Consistency Portfolio European Growth 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. |
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| • | There can be no assurance that this Portfolio will meet its objective or that it will outperform the Index. |
| • | This 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. |
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The value of your investment will fluctuate with the prices
of the underlying stocks. Stock prices can be volatile. |
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This Portfolio may be considered to be concentrated in
health-care stocks which may involve special risks such as significant research
costs and rapid obsolescence. |
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Each screen involves an element of momentum,
which may result in underperformance in declining markets. |
Tax Efficiency 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 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. Your taxable income may include some foreign withholding taxes. However, subject to limitations, you may be able to credit these taxes against your U.S. Federal income taxes. Please consult your tax advisor concerning state and local taxation. |
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| 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. |
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| Unitholder Fees |
Maximum as a %
of the Amount Invested |
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| Creation and Development Fee
(0.250% of net assets) |
0.30% | ||
| Sales Charges | 2.50% | ||
| Total Maximum Sales Charges
(including Creation and Development Fee) |
2.80% | ||
| If you sell your units before the 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. |
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| Portfolio Expenses | Amount per 1,000 Units | ||
| Estimated Annual Operating Expenses
(0.187% of net assets) |
1.85% | ||
| Estimated Organization Costs | 1.30% | ||
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Volume Purchase Discounts For larger purchases, the initial sales charge (but not the Creation and Development Fee) is reduced to put more of your investment dollars to work for you. The deferred sales charge will not change. |
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| If You Invest: |
Your Maximum Sales Charge (as a % of your investment) Will Be:** |
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| Less than $50,000 | 1.00% | ||
| $50,000 to $99,999 | 0.75 | ||
| $100,000 to $249,999 | 0.25 | ||
| $250,000 to $999,999 | 0.00 | ||
| If you invest $1,000,000 or more, you will pay an aggregate sales charge of 0.75%. You will not pay any initial sales charge, and you will be credited with additional units which will effectively reduce your deferred sales charge. | |||
| ** These percentages are based on a unit price of $1,000 per 1,000 units and will vary as the unit price changes. | |||
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Add Value to Your Portfolio Today! You can get started with $250. This Fund is eligible for purchase through Merrill Lynch Unlimited AdvantageSM accounts, in which Unlimited Advantage fees apply in lieu of traditional sales charges. Call your financial professional to learn how the Institutional Holdings Portfolio may help to meet your personal investment goals and how it may be appropriate for your IRA account. You can 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 | 32767BR-12/00 |
© 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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