<PAGE> 1
FORM 10-K [NINETEEN PAGES]
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ANNUAL REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Fiscal Year Ended December 31, 1995
- --------------------------------------------------------------------------------
Commission file number 2-83192
- --------------------------------------------------------------------------------
The Equity Income Fund, First Exchange Series - AT&T Shares
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 13-6824382
- --------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
Merrill Lynch, Pierce, Fenner Prudential Securities
& Smith Incorporated Incorporated
P.O. Box 9051 One Seaport Plaza
Princeton, New Jersey 08543-9051 199 Water Street
New York, New York 10292
Dean Witter Reynolds, Inc. Smith Barney Inc.
Two World Trade Center 388 Greenwich Street
New York, New York 10048 New York, New York 10013
- -------------------------------------------------------------------------------
(Addresses of principal executive offices of Sponsors)
The Bank of New York, 101 Barclay Street, New York, N.Y. 10286
- --------------------------------------------------------------------------------
(Address of principal executive offices of Trustee)
(212) 815-2749
- --------------------------------------------------------------------------------
(Trustee's telephone number, including area code)
<PAGE> 2
Securities registered pursuant to Section 12(b) of the Act:
NAME OF EACH EXCHANGE
TITLE OF EACH CLASS ON WHICH REGISTERED
- ------------------- ---------------------
Units of Beneficial Interest American Stock
in The Equity Income Fund, Exchange, Inc.
First Exchange Series -
AT&T Shares Pacific Stock Exchange,
Incorporated
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
--- ---
The aggregate market value of units of beneficial interest held of
record on the books of the Trustee by non- affiliates of the registrant as of
February 29, 1996 was $1,411,988,903.11.
<PAGE> 3
PART I
ITEM 1. BUSINESS.
The Equity Income Fund, First Exchange Series - AT&T Shares (the
"Fund") was formed in 1983 as a unit investment trust under New York law and in
accordance with the Investment Company Act of 1940 by a trust indenture among
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Dean Witter Reynolds Inc.,
Prudential Securities, Incorporated and Smith Barney Inc. as Sponsors and The
Bank of New York as Trustee.
The Fund was formed for the purpose of permitting an investor in common
shares of the predivestiture American Telephone and Telegraph Company ("AT&T")
to hold an investment in AT&T and the seven regional holding companies created
pursuant to the AT&T Plan of Reorganization in the form of units of beneficial
interest (the "Units") of the Fund, which consists solely of shares of AT&T
common stock and those securities which are distributed to holders of such AT&T
common stock pursuant to the reorganization. The Fund is not sponsored by, or
affiliated with, AT&T or any of the regional holding companies.
ITEM 2. PROPERTIES.
The Fund owns no physical properties.
ITEM 3. LEGAL PROCEEDINGS.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
(a) MARKET INFORMATION
The principal United States markets in which Units of the Fund are
traded are the American Stock Exchange, Inc. and the Pacific Stock Exchange,
Incorporated.
The following are the high and low sale prices of Units of the Fund
during each quarter for the last two fiscal years in which the Units were traded
on the American Stock Exchange, Inc., which was the principal exchange market
for the Units:
- 1 -
<PAGE> 4
<TABLE>
<CAPTION>
HIGH SALE LOW SALE
QUARTER ENDED PRICE PRICE
- ------------- --------- ---------
<S> <C> <C>
March 31, 1994 70.783 64.532
June 30, 1994 69.531 63.402
September 30, 1994 70.040 66.707
December 31, 1994 67.574 62.611
March 31, 1995 68.500 62.875
June 30, 1995 71.125 66.625
September 30, 1995 82.000 70.125
December 31, 1995 87.875 80.500
</TABLE>
(b) HOLDERS
There were 6407 record holders of Units of the Fund on the books of the
Trustee on February 29, 1996. Eighty-three and seven tenths of a percent
(83.70%) of such Units were held of record by Cede & Co., a nominee of the
Depositary Trust Company, for certain of its participants on that date.
(c) DIVIDENDS
The following are the cash distributions which were paid to holders of
Units of the Fund during the last two fiscal years:
<TABLE>
<CAPTION>
DISTRIBUTION DATE 1994 RATE PER UNIT TOTAL DISTRIBUTION
- ---------------------- ------------- ------------------
<S> <C> <C>
January 1, 1994 $0.22504 $4,166,453.40
February 1, 1994 0.22635 4,190,412.85
March 1, 1994 0.22635 4,188,647.78
April 1, 1994 0.22634 4,166,314.00
May 1, 1994 0.22837 4,200,831.27
June 1, 1994 0.22836 4,177,515.36
July 1, 1994 0.22837 4,171,283.84
August 1, 1994 0.22839 4,146,150.09
September 1, 1994 0.22839 4,140,371.83
October 1, 1994 0.22838 4,119,225.26
November 1, 1994 0.22838 4,099,009.29
December 1, 1994 0.22838 4,085,283.65
-------- --------------
TOTALS $2.73110 $49,851,498.62
======== ==============
</TABLE>
- 2 -
<PAGE> 5
<TABLE>
<CAPTION>
DISTRIBUTION DATE 1995 RATE PER UNIT TOTAL DISTRIBUTION
- ---------------------- ------------- ------------------
<S> <C> <C>
January 1, 1995 $.22837 $4,057,511.16
February 1, 1995 .22968 4,060,016.32
March 1, 1995 .22968 4,059,788.06
April 1, 1995 .22968 4,021,566.86
May 1, 1995 .23126 4,027,849.47
June 1, 1995 .23127 4,016,297.55
July 1, 1995 .23125 3,958,393.03
August 1, 1995 .23126 3,950,909.41
September 1, 1995 .23126 3,932,362.17
October 1, 1995 .23114 3,911,052.00
November 1, 1995 .23261 3,914,291.31
December 1, 1995 .23261 3,914,134.30
TOTALS 2.77007 $47,824,171.64
======= ==============
</TABLE>
ITEM 6. SELECTED FINANCIAL DATA.
SELECTED FINANCIAL DATA
(in thousands except for outstanding Units and Per Unit Data)
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net investment
income $ 51,081 $ 50,842 $ 50,352 $ 49,755 $ 46,316
Net realized and
unrealized gain
(loss) on invest- $ 52,085 $ 115,280 $ 113,727 $ (65,659) $ 406,598
ments
Net increase
(decrease) in net
assets resulting
from operations $103,166 $ 166,122 $ 164,078 $ (15,904) $ 452,914
Income distributions
to Unit holders $ 50,926 $ 50,712 $ 50,311 $ 49,743 $ 47,658
Net assets at end
of year $1,074,859 $1,170,224 $1,257,937 $1,138,226 $1,474,906
Units outstanding
at end of year 19,236,463 18,893,010 18,514,279 17,701,839 16,670,493
Per Unit Data:
Income distribu-
tions during year $2.59 $2.65 $2.66 $2.73 $2.77
Net asset value
at end of year $55.88 $61.94 $67.94 $64.30 $88 .47
</TABLE>
- 3 -
<PAGE> 6
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
The Fund, as a non-managed unit investment trust, has no officers or
directors. The Trustees and Sponsors of the Fund are named in Item 1.
The Fund had net investment income of $46.3 million and net realized
and unrealized gain on investments of $406.5 million for the year 1995 as
compared with net investment income of $49.7 million and net realized and
unrealized loss on investments of $65.6 million for the year 1994 and net
investment income of $50.3 million and net realized and unrealized gain on
investments of $113.7 million for the year 1993.
The net increase in net assets resulting from operations for the year
1995 was $452.9 million as compared to a net decrease of $15.9 million for the
year 1994 and a net increase of $164.1 million for the year 1993. The increase
in net assets resulting from operations of $452.9 million for the year 1995 was
substantially the result of realized and unrealized gain on investments. The net
decrease in net assets resulting from operations of $15.9 for the year 1994 was
the result of realized and unrealized loss on investments.
Cash distributions paid out per Unit during each year amounted to $2.77
for the year ending December 31, 1995 as compared to $2.73 for the year ending
December 31, 1994 and $2.69 for the year ending December 31, 1993.
Income distributions accrued per Unit during each year amounted to
$2.77 for the year ending December 31, 1995 as compared to $2.73 for the year
ending December 31, 1994. The income distribution per Unit for the year ending
December 31, 1993 was $2.69.
- 4 -
<PAGE> 7
The per Unit net asset value was $88.47 at December 31, 1995, $64.30 at
December 31, 1994 and $67.94 at December 31, 1993. The per Unit net asset value
increased $24.17 from 1994 to 1995 and decreased $3.64 from 1993 to 1994.
There were 16,670,493 Units outstanding as of December 31, 1995,
17,701,839 Units outstanding as of December 31, 1994 and 18,514,279 Units
outstanding as of December 31, 1993. There was a decrease of 1,031,346 Units
during fiscal year 1995, a decrease of 812,440 Units during fiscal year 1994 and
decrease of 378,731 Units during fiscal year 1993 as a result of redemptions.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
See following pages 6 through 13.
- 5 -
<PAGE> 8
INDEPENDENT ACCOUNTANTS' REPORT
The Sponsors, Trustee and Holders
of The Equity Income Fund,
First Exchange Series - AT&T Shares:
We have audited the accompanying statements of condition of The Equity Income
Fund, First Exchange Series - AT&T Shares as of December 31, 1995 and 1994 and
the related statements of operations and of changes in net assets for the years
ended December 31, 1995, 1994 and 1993. These financial statements are the
responsibility of the Trustee. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Securities owned at
December 31, 1995 and 1994 were confirmed to us by The Bank of New York, the
Trustee. An audit also includes assessing the accounting principles used and
significant estimates made by the Trustee, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The Equity Income Fund, First
Exchange Series - AT&T Shares at December 31, 1995 and 1994 and the results of
its operations and changes in its net assets for the above-stated years in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
February 19, 1996
- 6 -
<PAGE> 9
THE EQUITY INCOME FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
December 31,
1995 1994
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at market value
(Notes 1 and 2):
1994 cost - $370,466,995 .......................... $1,133,105,337
1995 cost - $348,494,818 .......................... $1,471,293,175
Dividends receivable ................................ 4,740,110 6,300,901
Cash ................................................ 2,808,808 2,939,183
-------------- --------------
Total ..................................... 1,478,842,093 1,142,345,421
-------------- --------------
LESS LIABILITIES:
Distribution payable (Note 3) ....................... 3,891,651 4,057,511
Other ............................................... 44,441 61,438
-------------- --------------
Total ..................................... 3,936,092 4,118,949
-------------- --------------
TOTAL TRUST PROPERTY .................................. $1,474,906,001 $1,138,226,472
============== ==============
NET ASSETS, REPRESENTED BY:
Units of fractional undivided interest outstanding:
1994 - 17,701,839 (Note 6) ........................ $1,133,104,323
1995 - 16,670,493 (Note 6) ........................ $1,471,271,038
Undistributed net investment income ................. 3,634,963 5,122,149
-------------- --------------
NET ASSETS ............................................ $1,474,906,001 $1,138,226,472
============== ==============
UNIT VALUE:
1994 - $1,138,226,472/17,701,839 units .............. $64.30
======
1995 - $1,474,906,001/16,670,493 units .............. $88.47
======
</TABLE>
See Notes to Financial Statements.
- 7 -
<PAGE> 10
THE EQUITY INCOME FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Years Ended December 31,
1995 1994 1993
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income .......................... $ 46,877,031 $ 50,297,823 $ 50,960,421
Trustee's fees and expenses .............. (505,957) (479,720) (541,199)
Sponsors' fees ........................... (55,227) (62,676) (67,361)
------------ ------------ ------------
Net investment income .................... 46,315,847 49,755,427 50,351,861
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold ......... 46,437,769 36,968,354 18,085,384
Unrealized appreciation (depreciation) of
investments ............................ 360,160,015 (102,628,199) 95,641,234
------------ ------------ ------------
Net realized and unrealized gain (loss) on
investments ............................ 406,597,784 (65,659,845) 113,726,618
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................ $452,913,631 $(15,904,418) $164,078,479
============ ============ ============
</TABLE>
See Notes to Financial Statements.
- 8 -
<PAGE> 11
THE EQUITY INCOME FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Years Ended December 31,
1995 1994 1993
<S> <C> <C> <C>
OPERATIONS:
Net investment income ................... $ 46,315,847 $ 49,755,427 $ 50,351,861
Realized gain on securities sold ........ 46,437,769 36,968,354 18,085,384
Unrealized appreciation (depreciation) of
investments ........................... 360,160,015 (102,628,199) 95,641,234
-------------- -------------- --------------
Net increase (decrease) in net assets
resulting from operations ............. 452,913,631 (15,904,418) 164,078,479
INCOME DISTRIBUTIONS TO HOLDERS (Note 3) .. (47,658,313) (49,742,556) (50,311,159)
CAPITAL SHARE TRANSACTIONS:
Redemptions of 1,031,346, 812,440 and
378,731 units, respectively (Note 5) .. (68,615,789) (54,064,009) (26,053,392)
-------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ..... 336,639,529 (119,710,983) 87,713,928
NET ASSETS AT BEGINNING OF YEAR ........... 1,138,266,472 1,257,937,455 1,170,223,527
-------------- --------------
NET ASSETS AT END OF YEAR ................. $1,474,906,001 $1,138,226,472 $1,257,937,455
============== ============== ==============
PER UNIT:
Income distributions during year ........ $2.77 $2.73 $2.69
===== ===== =====
Net asset value at end of year .......... $88.47 $64.30 $67.94
====== ====== ======
UNITS OUTSTANDING AT END OF YEAR .......... 16,670,493 17,701,839 18,514,279
========== ========== ==========
</TABLE>
See Notes to Financial Statements.
- 9 -
<PAGE> 12
THE EQUITY INCOME FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as a Unit
Investment Trust. A summary of the significant accounting policies, which
are in conformity with generally accepted accounting principles, followed by
the Fund in the preparation of its financial statements since July 7, 1983,
its initial date of deposit, is as follows:
(a) Securities are stated at market value based on the last sales price
reported at the close of business on the New York Stock Exchange.
Substantially all of the aggregate cost of securities represents the
market value of the shares of common stock of American Telephone and
Telegraph Company (AT&T) on the days the shares were exchanged for units
of the Fund; such aggregate cost was subsequently allocated among the
portfolio holdings in shares of AT&T and the seven regional holding
companies following their divestiture by AT&T in accordance with its
Plan of Reorganization. Realized gains or losses on sales of securities
are determined using the identified cost basis.
(b) The Fund is not subject to income taxes. Accordingly, no provision for
such taxes is required.
(c) Dividend income has been recognized on the ex-dividend date.
2. MARKETABLE SECURITIES, AT DECEMBER 31, 1994:
<TABLE>
<CAPTION>
TOTAL MARKET
NAME OF ISSUER SHARES COST VALUE
<S> <C> <C> <C>
AT&T 5,812,107 $105,582,663 $ 292,058,377
Airtouch Communications 2,324,844 13,102,850 67,711,082
Ameritech Corp. 3,487,223 38,268,008 140,796,629
Bell Atlantic Corporation 2,324,844 38,861,745 115,660,988
BellSouth Corporation 2,615,449 50,127,612 141,561,177
NYNEX Corporation 2,324,844 36,453,475 85,438,017
Pacific Telesis Group 2,324,844 19,794,090 66,258,054
SBC Communications Inc.
(formerly Southwestern
Bell Corporation) 3,487,268 35,156,967 140,798,445
U.S. West Incorporated 2,324,844 33,119,585 82,822,568
------------ --------------
$370,466,995 $1,133,105,337
============ ==============
</TABLE>
- 10 -
<PAGE> 13
THE EQUITY INCOME FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
NOTES TO FINANCIAL STATEMENTS
MARKETABLE SECURITIES, AT DECEMBER 31, 1995:
<TABLE>
<CAPTION>
TOTAL MARKET
NAME OF ISSUER SHARES COST VALUE
<S> <C> <C> <C>
AT&T 5,473,541 $ 99,432,993 $ 354,411,780
Airtouch Communications 2,189,442 12,339,723 61,851,737
Ameritech Corp. 3,284,098 36,039,118 193,761,782
Bell Atlantic Corporation 2,189,442 36,598,654 146,418,934
BellSouth Corporation 4,926,216 46,764,934 214,290,396
NYNEX Corporation 2,189,442 34,330,554 118,229,868
Pacific Telesis Group 2,189,442 18,641,294 73,619,987
SBC Communications Inc.
(formerly Southwestern
Bell Corporation) 3,284,143 33,109,333 188,838,223
U.S. West Incorporated 2,189,442 18,686,389 78,272,552
U.S. West Media Group 2,189,364 12,551,826 41,597,916
------------ --------------
$348,494,818 $1,471,293,175
============ ==============
</TABLE>
3. DISTRIBUTIONS
Any monthly distributions to Holders, who have not elected to participate in
the Fund's Reinvestment Plan, are made on or about the first day of each
month. The income distribution payable at December 31, 1994 and 1995 to
holders of record at December 15, 1994 and December 15, 1995 was at the rate
of $.22837 and $.23261 per unit, respectively.
4. REINVESTMENT PLAN
Holders could reinvest any distributions in the Fund prior to April 1, 1984,
or in certain subsequent series of The Equity Income Fund after March 31,
1984, by executing an appropriate notice of election to participate in the
Fund's Reinvestment Plan. The Sponsors (Merrill Lynch, Pierce, Fenner &
Smith Inc., Dean Witter Reynolds Inc., Prudential Securities Inc. and Smith
Barney Shearson, Inc.) may, in their sole discretion, cancel the Fund's
Reinvestment Plan at any time.
5. REDEMPTIONS
Holders may request redemptions of units by presentation thereof to the
Trustee, The Bank of New York. Redemptions of units are made in kind by the
Trustee; fractional undivided interests are redeemed in cash. Under certain
circumstances, Holders may request redemptions of units in cash. Units of
the Fund are listed and traded on the American and Pacific Stock Exchanges.
- 11 -
<PAGE> 14
THE EQUITY INCOME FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
NOTES TO FINANCIAL STATEMENTS
6. NET CAPITAL
<TABLE>
<CAPTION>
December 31,
1995 1994
<S> <C> <C>
Cost at dates of deposit, including
subsequent reinvested distributions,
of remaining units outstanding ....... $ 354,153,806 $ 376,064,081
Less sales charge ...................... 5,312,303 5,640,956
-------------- --------------
Net amount applicable to Holders ....... 348,841,503 370,423,125
Redemptions of units - net cost of units
redeemed less redemption amounts ..... (406,499,152) (359,649,705)
Realized gain on securities sold ....... 406,130,330 359,692,561
Unrealized appreciation of investments . 1,122,798,357 762,638,342
-------------- --------------
Net capital applicable to Holders ...... $1,471,271,038 $1,133,104,323
============== ==============
</TABLE>
7. INCOME TAXES
All Fund items of income received, expenses paid, and realized gains and
losses on securities sold are attributable to the Holders, on a pro rata
basis, for Federal income tax purposes in accordance with the grantor trust
rules of the United States Internal Revenue Code.
8. QUARTERLY RESULTS OF OPERATIONS - UNAUDITED
A summary of the Fund's 1994 and 1995 quarterly results of operations, in
thousands of dollars, is as follows:
Year Ended December 31, 1994
<TABLE>
<CAPTION>
FOR THE QUARTER ENDED
1994
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 TOTAL
<S> <C> <C> <C> <C> <C>
Net investment
income ........ $ 11,225 $ 13,845 $ 10,993 $ 13,692 $ 49,755
Net realized and
unrealized gain
(loss) on
investments ... (59,836) 66,836 (16,119) (56,540) (65,659)
-------- -------- -------- -------- --------
Net increase
(decrease) in
net assets
resulting
from operations $(48,611) $ 80,681 $ (5,126) $(42,848) $(15,904)
======== ======== ======== ======== ========
</TABLE>
- 12 -
<PAGE> 15
THE EQUITY INCOME FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1995
<TABLE>
<CAPTION>
FOR THE QUARTER ENDED
1995
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 TOTAL
<S> <C> <C> <C> <C> <C>
Net investment
income ........ $ 10,834 $ 11,966 $ 10,503 $ 13,013 $ 46,316
Net realized and
unrealized gain
on investments 55,352 53,198 194,760 103,288 406,598
-------- -------- -------- -------- --------
Net increase
in net assets
resulting from
operations .... $ 66,186 $ 65,164 $205,263 $116,301 $452,914
======== ======== ======== ======== ========
</TABLE>
- 13 -
<PAGE> 16
ITEM 9. CHANGES IN AND DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
None.
ITEM 11. EXECUTIVE COMPENSATION.
None.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
None.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
None.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
Page
----
a. 1.1 - Statements of Condition as of December
31, 1994 and 1995 ......................... 7
1.2 - Statements of Operations for the years
ended December 31, 1993, December 31,
1994 and December 31, 1995 ................ 8
1.3 - Statements of Changes in Net Assets for
the years ended December 31, 1993,
December 31, 1994 and December 31, 1995 ... 9
2 - Financial schedules are not filed because
of the absence of conditions under which
they are required or because the required
information, where material, is included
in the financial statements or the
footnotes thereto.
b. None.
c. 4.1 - Form of Trust Indenture (incorporated by reference to Exhibit 1.1
to the Registration Statement of The Equity
- 14 -
<PAGE> 17
Income Fund, First Exchange Series - AT&T Shares, 1933 Act File No.
2-83192)
4.1.1 - Form of Certificate of Amendment to Trust Indenture dated
August 8, 1983 (incorporated by reference to Registration Statement on
Form 8-A of The Equity Income Fund, First Exchange Series - AT&T
Shares, 1934 Act File No. 1-8642)
4.1.2 - Form of Standard Terms and Conditions of Trust effective
January 1, 1983 (incorporated by reference to Exhibit 1.1.1 to the
Registration Statement of The Equity Income Fund, First Exchange Series
- AT&T Shares, 1933 Act File No. 2-83192)
9. - None.
11 - Computation of per Unit earnings (See Statement of Changes in Net
Assets, Item 1.3, above)
13.1 - Form 10-Q, for the quarter ended March 31, 1994, incorporated by
reference to 1933 Act File No. 2-83192.
13.2 - Form 10-Q, for the quarter ended June 30, 1994, incorporated by
reference to 1933 Act File No. 2-83192.
13.3 - Form 10-Q, for the quarter ended September 30, 1994,
incorporated by reference to 1933 Act File No. 2-83192.
13.4 - Form 10-K for the fiscal year ended December 31, 1994,
incorporated by reference to 1933 Act File No. 2-83192.
13.5 - Form 10-Q for the quarter ended March 31, 1995, incorporated by
reference to 1933 Act File No. 2-83192.
13.6 - Form 10-Q for the quarter ended June 30, 1995, incorporated by
reference to 1933 Act File No. 2-83192.
13.7 - Form 10-Q for the quarter ended September 30, 1995, incorporated
by reference to 1933 Act File No. 2-83192.
18. - None.
21. - None.
22. - None.
- 15 -
<PAGE> 18
23 - Consents (incorporated by reference to Registration Statement of
The Equity Income Fund, First Exchange Series - AT&T Shares, 1933 Act
File No. 2-83192).
27. - Financial Data Schedule.
d. None.
- 16 -
<PAGE> 19
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Trustee of the Fund has duly caused this report to be signed on
behalf of the Fund by the undersigned, thereunto duly authorized.
The Equity Income Fund, First
Exchange Series - AT&T Shares
The Bank of New York,
as Trustee
Date: March 20, 1996 By: /s/ Christopher W. Peer
---------------------------------
Christopher W. Peer
Title: Assistant Vice President
<PAGE> 20
EXHIBIT INDEX
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Exhibit 27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FIRST
EXCHANGE SERIES - AT&T SHARES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 348,494,818
<INVESTMENTS-AT-VALUE> 1,471,293,175
<RECEIVABLES> 4,740,110
<ASSETS-OTHER> 2,808,808
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,478,842,093
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,936,092
<TOTAL-LIABILITIES> 3,936,092
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 348,472,681
<SHARES-COMMON-STOCK> 16,670,493
<SHARES-COMMON-PRIOR> 17,701,839
<ACCUMULATED-NII-CURRENT> 3,634,963
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,122,798,357
<NET-ASSETS> 1,474,906,001
<DIVIDEND-INCOME> 46,877,031
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 561,184
<NET-INVESTMENT-INCOME> 46,315,847
<REALIZED-GAINS-CURRENT> 46,437,769
<APPREC-INCREASE-CURRENT> 360,160,015
<NET-CHANGE-FROM-OPS> 452,913,631
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 47,658,113
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 1,031,346
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 336,639,529
<ACCUMULATED-NII-PRIOR> 5,122,149
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0.000
<PER-SHARE-NII> 0.000
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 0.000
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
