<PAGE> 1
FORM 10-K
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, 1999
................................................................................
Commission file number 001-08642
................................................................................
The Equity Investor 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
Morgan Stanley Dean Witter 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) 815-2887
................................................................................
(Trustee's telephone number, including area code)
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 Investor 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 .
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. X.
---
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, 2000 was $2,288,719,509.44
The aggregate market value of the voting and non-voting common equity held
by non-affiliates of the registrant is not applicable.
<PAGE> 2
PART I
ITEM 1. BUSINESS.
The Equity Investor 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, Morgan Stanley Dean Witter,
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.
- 1 -
<PAGE> 3
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
(a)
(i) 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:
<TABLE>
<CAPTION>
HIGH SALE LOW SALE
QUARTER ENDED PRICE PRICE
- ------------- --------- ---------
<S> <C> <C>
March 31, 1998 $144.875 $117.562
June 30, 1998 146.250 132.750
September 30, 1998 150.500 132.937
December 31, 1998 200.000 142.375
March 31, 1999 $202.875 $177.250
June 30, 1999 210.000 180.625
September 30, 1999 300.000 189.000
December 31, 1999 300.000 195.000
</TABLE>
(ii) HOLDERS
There were 4,430 record holders of Units of the Fund on the books of the
Trustee on February 29, 2000, eighty-seven and ninety-eight hundredths of a
percent (87.98%) of such Units were held of record by Cede & Co., a nominee of
the Depository Trust Company, for certain of its participants on that date.
- 2 -
<PAGE> 4
(iii) 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 1998 RATE PER UNIT TOTAL DISTRIBUTION
- ---------------------- ------------- ------------------
<S> <C> <C>
January 1, 1998 $ .233 $ 3,387,399.44
February 1, 1998 .235 3,408,767.82
March 1, 1998 .235 3,371,680.83
April 1, 1998 .237 3,383,641.65
May 1, 1998 .237 3,379,420.68
June 1, 1998 .237 3,343,488.40
July 1, 1998 .239 3,365,616.88
August 1, 1998 .240 3,369,916.32
September 1, 1998 .240 3,343,889.52
October 1, 1998 .240 3,335,564.64
November 1, 1998 .240 3,321,332.64
December 1, 1998 .240 3,296,179.44
TOTALS $2.853 $40,306,898.26
----- -------------
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTION DATE 1999 RATE PER UNIT TOTAL DISTRIBUTION
- ---------------------- ------------- ------------------
<S> <C> <C>
January 1, 1999 $ .242 $ 3,309,627.33
February 1, 1999 .244 3,332,511.01
March 1, 1999 .244 3,310,099.61
April 1, 1999 .244 3,301,821.91
May 1, 1999 .246 3,323,298.13
June 1, 1999 .246 3,302,559.35
July 1, 1999 .246 3,288,017.55
August 1, 1999 .252 3,360,534.91
September 1, 1999 .252 3,341,963.02
October 1, 1999 .252 3,330,190.33
November 1, 1999 .253 3,335,844.22
December 1, 1999 .252 3,304,424.34
TOTALS $2.973 $39,840,891.71
----- -------------
</TABLE>
(b) If required pursuant to Rule 463 of the Securities Act of 1933, furnish the
information required by Item 701(f) of Regulation S-K.
Not Applicable.
- 3 -
<PAGE> 5
ITEM 6. SELECTED FINANCIAL DATA.
SELECTED FINANCIAL DATA
(in thousands except for outstanding Units and Per Unit Data)
<TABLE>
<CAPTION>
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net investment
income $46,316 $44,766 $41,961 $40,561 $38,581
Net realized
And unrealized
Gain (loss)
on investments $406,598 $(91,579) $542,775 $895,796 $283,141
Net increase
(decrease) in net
assets resulting
from operations $452,914 $(46,813) $584,736 $936,357 $321,722
Total distribu-
tions to
Unit holders $47,658 $45,241 $42,211 $40,229 $55,569
Net assets at
end of year $1,474,906 $1,306,794 $1,735,234 $2,513,292 $2,653,576
Units outstand-
ing at end
of year 16,670,493 15,726,053 14,505,395 13,657,832 13,016,125
Per Unit Data:
Income distribu-
tions during year $2.77 $2.79 $2.79 $2.85 $2.99
Principal distri-
butions during
year $0.00 $0.00 $0.00 $0.00 $1.18
Net asset value
at end of year $88.47 $83.10 $119.63 $184.02 $203.87
</TABLE>
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 $38.6 million and net realized and
unrealized gain on investments of $283.1 million for the year 1999 as compared
with net investment income of $40.6 million and net realized and unrealized gain
on
- 4 -
<PAGE> 6
investments of $895.8 million for the year 1998 and net investment income of
$42.0 million and net realized and unrealized gain on investments of $542.8
million for the year 1997.
The net increase in net assets resulting from operations for the year 1999
was $321.7 million as compared to a net increase of $936.4 million for the year
1998 and a net increase of $584.7 million for the year 1997. The increase in net
assets resulting from operations of $321.7 million for the year 1999 was
substantially the result of realized and unrealized gain on investments. The net
increase in net assets resulting from operations of $936.4 for the year 1998 was
also the result of realized and unrealized gain on investments.
Income distributions accrued per Unit during each year amounted to $2.99 for
the year ending December 31, 1999 as compared to $2.85 for the year ending
December 31, 1998. The income distribution per Unit for the year ending December
31, 1997 was $2.79.
Principal distributions accrued per Unit during the year ended December 31,
1999 amounted to $1.18. No such principal distribution occurred in the
respective periods for 1998 and 1997.
The per Unit net asset value was $203.87 at December 31, 1999, $184.02
at December 31, 1998 and $119.63 at December 31, 1997. The per Unit net asset
value increased $19.85 from 1998 to 1999 and increased $64.39 from 1997 to 1998.
There were 13,016,125 Units outstanding as of December 31, 1999, 13,657,832
Units outstanding as of December 31, 1998 and 14,505,395 Units outstanding as of
December 31, 1997. There was a decrease of 641,707 Units during fiscal year
1999, a decrease of 847,563 Units during fiscal year 1998 and decrease of
1,220,658 Units during fiscal year 1997 as a result of redemptions.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK.
Not Applicable
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
See following pages 6 through 13.
ITEM 9. CHANGES IN AND DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
- 5 -
<PAGE> 7
INDEPENDENT ACCOUNTANTS' REPORT
The Sponsors, Trustee and Holders
of The Equity Investor Fund,
First Exchange Series - AT&T Shares:
We have audited the accompanying statements of condition of The Equity Investor
Fund, First Exchange Series - AT&T Shares as of December 31, 1999 and 1998 and
the related statements of operations and of changes in net assets for the years
ended December 31, 1999, 1998 and 1997. 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, 1999 and 1998 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 Investor Fund, First
Exchange Series - AT&T Shares at December 31, 1999 and 1998 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
New York, N.Y.
March 7, 2000
- 6 -
<PAGE> 8
THE EQUITY INVESTOR FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
DECEMBER 31,
1999 1998
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at market value
(Notes 1 and 2):
1998 cost - $280,910,516 ........................ $2,510,764,391
1999 cost - $267,206,552 ........................ $2,652,463,693
Dividends receivable ............................. 1,863,433 3,188,431
Cash ............................................. 2,751,838 2,732,763
----------------- ------------
Total .................................. 2,657,078,964 2,516,685,585
----------------- -------------
LESS LIABILITIES:
Distribution payable (Note 3) .................... 3,288,178 3,309,627
Redemption payable ............................... 20,719
Accrued expenses ................................. 193,792 84,393
---------------- ---------------
Total .................................. 3,502,689 3,394,020
TOTAL TRUST PROPERTY ............................... $2,653,576,275 $2,513,291,565
================ ===============
NET ASSETS, REPRESENTED BY:
Units of fractional undivided interest outstanding:
1998 - 13,657,832 (Note 6) ..................... $2,510,730,037
1999 - 13,016,125 (Note 6) ..................... $2,652,447,665
Undistributed net investment income .............. 1,128,610 2,561,528
---------------- ---------------
NET ASSETS ......................................... $2,653,576,275 $2,513,291,565
================ ===============
UNIT VALUE:
1998 - $2,513,291,565/13,657,832 units ........... $184.02
--------
1999 - $2,653,576,275/13,016,125 units ........... $203.87
========
</TABLE>
See Notes to Financial Statements.
- 7 -
<PAGE> 9
THE EQUITY INVESTOR FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ...................... $ 39,152,924 $ 41,091,956 $ 42,399,400
Trustee's fees and expenses .......... (547,080) (452,453) (386,416)
Sponsors' fees ....................... (24,515) (78,070) (52,443)
------------ ------------- -------------
Net investment income ................ 38,581,329 40,561,433 41,960,541
------------ ------------- -------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Realized gain on securities sold ..... 127,737,243 100,374,644 86,260,735
Unrealized appreciation of
investments ........................ 155,403,265 795,421,062 456,514,395
------------ ------------- -------------
Net realized and unrealized gain on
investments ........................ 283,140,508 895,795,706 542,775,130
------------ ------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............ $321,721,837 $936,357,139 $584,735,671
============ ============= =============
</TABLE>
See Notes to Financial Statements.
- 8 -
<PAGE> 10
THE EQUITY INVESTOR FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ................ $ 38,581,329 $ 40,561,433 $ 41,960,541
Realized gain on securities sold ..... 127,737,243 100,374,644 86,260,735
Unrealized appreciation of
investments ........................ 155,403,265 795,421,062 456,514,395
------------ ------------ ---------------
Net increase in net assets
resulting from operations .......... 321,721,837 936,357,139 584,735,671
------------ ------------ --------------
DISTRIBUTIONS TO HOLDERS (Note 3):
Income ............................... (39,819,444) (40,229,125) (42,211,078)
Principal ............................ (15,749,174)
------------ ------------ --------------
Total Distributions .................. (55,568,618) (40,229,125) (42,211,078)
------------- ------------ --------------
CAPITAL SHARE TRANSACTIONS:
Redemptions of 641,707, 847,563 and
1,220,658 units,
respectively (Note 5) ............. (125,868,510) (118,070,543) (114,084,794)
----------- ------------ --------------
NET INCREASE IN NET ASSETS ............. 140,284,709 778,057,471 428,439,799
NET ASSETS AT BEGINNING OF YEAR ........ 2,513,291,566 1,735,234,094 1,306,794,295
------------- ------------- --------------
NET ASSETS AT END OF YEAR .............. $2,653,576,275 $2,513,291,565 $1,735,234,094
-------------- -------------- ---------------
PER UNIT:
Income distributions during year ..... $2.99 $2.85 $2.79
===== ===== ======
Principal distributions during year .. $1.18
=====
Net asset value at end of year ....... $203.87 $184.02 $119.63
======= ======= ========
UNITS OUTSTANDING AT END OF YEAR ....... 13,016,125 13,657,832 14,505,395
========== ========== ===========
</TABLE>
See Notes to Financial Statements.
- 9 -
<PAGE> 11
THE EQUITY INVESTOR 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, 1998:
<TABLE>
<CAPTION>
TOTAL MARKET
NAME OF ISSUER SHARES COST VALUE
<S> <C> <C> <C>
AT&T 4,484,416 $ 55,391,778 $ 337,452,304
Airtouch Communications 1,793,809 10,109,849 129,378,474
Ameritech Corp. 5,381,333 29,526,775 341,041,979
Bell Atlantic Corporation 6,342,826 58,237,121 336,169,778
BellSouth Corporation 8,071,942 32,488,131 402,588,107
Lucent Technologies 2,906,729 24,032,761 319,740,190
NCR Corp. 280,342 2,993,908 11,704,279
SBC Communications Inc. 8,005,395 42,528,895 429,289,307
U.S. West Incorporated 1,842,800 15,698,478 119,090,950
Mediaone Group 1,793,809 9,902,820 84,309,023
---------- -----------
$280,910,516 $2,510,764,391
============ ==============
</TABLE>
- 10 -
<PAGE> 12
THE EQUITY INVESTOR FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
NOTES TO FINANCIAL STATEMENTS
MARKETABLE SECURITIES, AT DECEMBER 31, 1999:
<TABLE>
<CAPTION>
TOTAL MARKET
NAME OF ISSUER SHARES COST VALUE
<S> <C> <C> <C>
AT&T 6,410,600 $ 52,790,382 $ 325,337,950
Bell Atlantic Corporation 6,044,830 55,501,410 372,134,847
BellSouth Corporation 7,692,691 30,963,121 360,114,097
Lucent Technologies 5,540,343 22,903,808 414,486,911
NCR Corp. 267,196 2,853,510 10,120,049
SBC Communications Inc. 14,378,400 68,669,664 700,947,000
U.S. West Incorporated 1,756,244 14,961,050 126,449,568
Mediaone Group 1,709,556 9,437,707 131,315,270
Vodafone Airtouch 4,273,899 9,125,900 211,558,001
---------- -----------
$267,206,552 $2,652,463,693
============ =============
</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, 1998 and 1999
to holders of record at December 15, 1998 and December 15, 1999 was at
the rate of $.242 and $.252 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 Incorporated, Morgan Stanley Dean Witter,
Prudential Securities Incorporated and Smith Barney 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> 13
THE EQUITY INVESTOR FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
NOTES TO FINANCIAL STATEMENTS
6. NET CAPITAL
<TABLE>
<CAPTION>
DECEMBER 31,
1999 1998
<S> <C> <C>
Cost at dates of deposit, including
subsequent reinvested distributions,
of remaining units outstanding .... $ 276,519,128 $ 290,151,777
Less sales charge ................... 4,147,783 4,352,273
-------------- --------------
Net amount applicable to Holders 272,371,345 285,799,504
Redemptions of units - net cost
of units redeemed less redemption
amounts ........................... (763,235,825) (650,990,278)
Principal distributions ............. (15,749,174)
Realized gain on securities sold .... 773,804,178 646,066,936
Unrealized appreciation of
investments ....................... 2,385,257,141 2,229,853,875
-------------- --------------
Net capital applicable to Holders ... $2,652,447,665 $2,510,730,037
============== ==============
</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 1999 and 1998 quarterly results of operations, in
thousands of dollars, is as follows:
<TABLE>
<CAPTION>
Year Ended December 31, 1998
FOR THE QUARTER ENDED
1998
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 TOTAL
<S> <C> <C> <C> <C> <C>
Net investment
income $ 10,234 $ 10,184 $10,101 $ 10,042 $ 40,561
Net realized
and unrealized
gain (loss) on
investments 334,314 (54,139) 73,352 542,269 895,796
--------- -------- -------- -------- --------
Net increase
(decrease)
in net assets
resulting from
operations $344,548 $(43,955) $83,453 $552,311 $936,357
======== ======== ======= ======== ========
</TABLE>
- 12 -
<PAGE> 14
THE EQUITY INVESTOR FUND,
FIRST EXCHANGE SERIES - AT&T SHARES
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1999
<TABLE>
<CAPTION>
FOR THE QUARTER ENDED
1999
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 TOTAL
<S> <C> <C> <C> <C> <C>
Net investment
income $ 8,401 $ 9,941 $ 13,731 $ 6,508 $ 38,581
Net realized
and unrealized
gain (loss) on
investments (95,196) 446,929 (166,756) 98,164 283,141
-------- -------- --------- -------- --------
Net increase
(decrease)
in net assets
resulting from
operations $(86,795) $456,870 $(153,025) $104,672 $321,722
======== ======== ========= ======== ========
</TABLE>
- 13 -
<PAGE> 15
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.
- 14 -
<PAGE> 16
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, 1998 and 1999 ......................... 7
1.2 - Statements of Operations for the years
ended December 31, 1997, December 31, 1998
and December 31, 1999 .............................. 8
1.3 - Statements of Changes in Net Assets for
the years ended December 31, 1997,
December 31, 1998 and December 31, 1999 ............ 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 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. 001-08642)
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, 1998,
incorporated by reference to 1934 Act File No. 001-08642.
- 15 -
<PAGE> 17
13.2 - Form 10-Q, for the quarter ended June 30, 1998, incorporated
by reference to 1934 Act File No. 001-08642.
13.3 - Form 10-Q, for the quarter ended September 30, 1998,
incorporated by reference to 1934 Act File No. 001-08642.
13.4 - Form 10-K for the fiscal year ended December 31, 1998,
incorporated by reference to 1934 Act File No. 001-08642.
13.5 - Form 10-Q for the quarter ended March 31, 1999, incorporated
by reference to 1934 Act File No. 001-08642.
13.6 - Form 10-Q for the quarter ended June 30, 1999, incorporated
by reference to 1934 Act File No. 001-08642.
13.7 - Form 10-Q for the quarter ended September 30, 1999,
incorporated by reference to 1934 Act File No. 001-08642.
18. - None.
21. - None.
22. - None.
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> 18
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 Investor Fund, First
Exchange Series - AT&T Shares
By: The Bank of New York,
as Trustee
Date: March 28, 2000 By: /s/ Alfred Irving
---------------------
Name: Alfred Irving
Title: Vice President
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRAC FROM AT&T- FIRST
EXCHANGE SERIES IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 267,206,552
<INVESTMENTS-AT-VALUE> 2,652,463,693
<RECEIVABLES> 1,863,433
<ASSETS-OTHER> 2,751,838
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,657,078,961
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,502,689
<TOTAL-LIABILITIES> 3,502,689
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,497,044,400
<SHARES-COMMON-STOCK> 13,016,125
<SHARES-COMMON-PRIOR> 13,657,832
<ACCUMULATED-NII-CURRENT> 1,128,610
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 155,103,265
<NET-ASSETS> 2,653,576,275
<DIVIDEND-INCOME> 39,152,924
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> (571,595)
<NET-INVESTMENT-INCOME> 38,581,329
<REALIZED-GAINS-CURRENT> 127,737,243
<APPREC-INCREASE-CURRENT> 155,403,265
<NET-CHANGE-FROM-OPS> 321,721,837
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 39,819,444
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 15,749,174
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 641,707
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 140,284,709
<ACCUMULATED-NII-PRIOR> 2,561,528
<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
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
</TABLE>
