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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 14, 1999
REGISTRATION NO. 33-44844
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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POST-EFFECTIVE AMENDMENT NO. 7
TO
FORM S-6
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FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
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A. EXACT NAME OF TRUST:
DEFINED ASSET FUNDS--
EQUITY INVESTOR FUND
INDEX SERIES
S&P 500 TRUST 2
S&P MIDCAP TRUST
(UNIT INVESTMENT TRUSTS)
B. NAMES OF DEPOSITORS:
MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
SALOMON SMITH BARNEY INC.
PRUDENTIAL SECURITIES INCORPORATED
PAINEWEBBER INCORPORATED
DEAN WITTER REYNOLDS INC.
C. COMPLETE ADDRESSES OF DEPOSITORS' PRINCIPAL EXECUTIVE OFFICES:
MERRILL LYNCH, PIERCE,
FENNER & SMITH
INCORPORATED
DEFINED ASSET FUNDS
POST OFFICE BOX 9051
PRINCETON, NJ 08543-9051 SALOMON SMITH BARNEY INC.
388 GREENWICH
STREET--23RD FLOOR
NEW YORK, NY 10013
PRUDENTIAL SECURITIES PAINEWEBBER INCORPORATED DEAN WITTER REYNOLDS INC.
INCORPORATED 1285 AVENUE OF THE TWO WORLD TRADE
ONE NEW YORK PLAZA AMERICAS CENTER--59TH FLOOR
NEW YORK, NY 10292 NEW YORK, NY 10019 NEW YORK, NY 10048
D. NAMES AND COMPLETE ADDRESSES OF AGENTS FOR SERVICE:
TERESA KONCICK, ESQ. ROBERT E. HOLLEY MICHAEL KOCHMANN
P.O. BOX 9051 1200 HARBOR BLVD. 388 GREENWICH ST.
PRINCETON, NJ 08543-9051 WEEHAWKEN, NJ 07087 NEW YORK, NY 10013
COPIES TO: DOUGLAS LOWE, ESQ.
PIERRE DE SAINT PHALLE, DEAN WITTER REYNOLDS INC.
LEE B. SPENCER, JR. ESQ. TWO WORLD TRADE
ONE NEW YORK PLAZA 450 LEXINGTON AVENUE CENTER--59TH FLOOR
NEW YORK, NY 10292 NEW YORK, NY 10017 NEW YORK, NY 10048
The issuer has registered an indefinite number of Units under the Securities Act
of 1933 pursuant to Rule 24f-2 and filed the Rule 24f-2 Notice for the most
recent fiscal year on March , 1999.
Check box if it is proposed that this filing will become effective on April 23,
1999 pursuant to paragraph (b) of Rule 485. / x /
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DEFINED ASSET FUNDSSM
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EQUITY INVESTOR FUND
INDEX SERIES
S&P 500 TRUST 2
S&P MIDCAP TRUST
(A UNIT INVESTMENT TRUST)
O MONTHLY INCOME
O PROFESSIONAL SELECTION
O DIVERSIFICATION
O REINVESTMENT OPTION
SPONSORS:
Merrill Lynch,
Pierce, Fenner & Smith -------------------------------------------------
Incorporated The Securities and Exchange Commission has not
Salomon Smith Barney Inc. approved or disapproved these Securities or
Prudential Securities passed upon the adequacy of this prospectus. Any
Incorporated representation to the contrary is a criminal
[PaineWebber Incorporated] offense.
Dean Witter Reynolds Inc. Prospectus dated April 23, 1999.
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Def ined Asset FundsSM
Defined Asset FundsSM is America's oldest and largest family of unit investment
trusts, with over $160 billion sponsored over the last 28 years. Defined Asset
Funds has been a leader in unit investment trust research and product
innovation. Our family of Funds helps investors work toward their financial
goals with a full range of quality investments, including municipal, corporate
and government bond portfolios, as well as domestic and international equity
portfolios.
Defined Asset Funds offer a number of advantages:
o A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
o Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
o Defined Portfolios: We choose the stocks or bonds in advance, so you know what
you're investing in.
o Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
o Ongoing supervision: We monitor each portfolio on an ongoing basis.
No matter what your investment goals, risk tolerance or time horizon, there's
probably a Defined Asset Fund that suits your investment style. Your financial
professional can help you select a Defined Asset Fund that works best for your
investment portfolio.
THE FINANCIAL INFORMATION ON THIS PROSPECTUS IS AS OF THE EVALUATION DATE,
DECEMBER 31, 1998.
CONTENTS
PAGE
-----------
S&P 500 Trust 2 Risk/Return Summary 3
S&P 500 MidCap Trust Risk/Return Summary................ 5
What You Can Expect From Your Investment................ 7
Income............................................... 7
Records and Reports.................................. 7
The Risks You Face...................................... 7
Litigation and Legislation Risks..................... 7
Selling Units........................................... 7
Sponsors' Secondary Market........................... 7
Selling Units to the Trustee......................... 8
How The Fund Works...................................... 8
Pricing.............................................. 8
Evaluations.......................................... 8
Income............................................... 8
Expenses............................................. 9
Portfolio Changes.................................... 9
Fund Termination..................................... 9
Certificates......................................... 10
Trust Indenture...................................... 10
Legal Opinion........................................ 11
Auditors............................................. 11
Sponsors............................................. 11
Trustee.............................................. 11
Underwriters' and Sponsors' Profits.................. 12
Public Distribution.................................. 12
Code of Ethics....................................... 12
Year 2000 Issues..................................... 12
Taxes................................................... 12
Supplemental Information................................ 13
Financial Statements.................................... D-1
2
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S&P 500 TRUST 2 RISK/RETURN SUMMARY
1. WHAT IS THE PORTFOLIO'S OBJECTIVE?
O The objective of this Defined Fund is designed to produce
investment results corresponding to the performance of the
Standard & Poor's 500 Stock Price Composite Index.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Portfolio contains 500 common stocks structured to
mirror, as closely as possible, the total return of the S&P
500 Index.
- -- With a single, convenient purchase, you can participate
in the total return performance of an index broadly
representing the market. This diversification reduces
the risk of selecting individual stocks or market
sectors.
O The Fund plans to hold the stocks in the Portfolio for
approximately 18 years. The Fund will terminate by February
28, 2017.
3. WHAT SECTORS ARE REPRESENTED IN THE PORTFOLIO?
100% of the Portfolio represents the S&P 500 Stock Index.
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Stock prices can be volatile.
o Dividend rates on the stocks or share prices may decline
during the life of the Fund.
o The Fund may continue to hold the stocks originally
selected even though their market value or yield may have
changed.
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want current monthly income. You will benefit
from a professionally selected and supervised portfolio
whose risk is reduced by investing in equity securities of
many different issuers.
The Fund is not appropriate for you if you are unwilling to
take the risk involved with an equity investment.
6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
ESTIMATED ANNUAL OPERATING EXPENSES
AMOUNT
PER 1,000 UNITS
---------------
$ 0.29
Trustee's Fee
$ 0.87
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.96
Other Operating Expenses
---------------
$ 2.12
TOTAL
The Sponsors historically paid updating expenses.
INVESTOR FEES
You will pay an up-front sales fee of approximately 4.50%.
The fee will be reduced for quantity purchases, as
follows:
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
-------------------------------- -----------------
Less than $25,000 2.25%
$25,000 to $49,999 2.00%
$50,000 to $74,999 1.75%
$75,000 to $99,999 1.50%
$100,000-$249,999 1.25%
$250,000-$999,999 1.00%
$1,000,000-$4,999,999 0.75%
$5,000,000-$14,999,999 0.50%
$15,000,000 or more 0.25%
7. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not managed and stocks
are not sold because of market changes. The Sponsors
monitor the portfolio and may instruct the Trustee to sell
securities under certain limited circumstances.
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S&P 500 TRUST 2 RISK/RETURN SUMMARY (CONTINUED)
8. HOW DO I BUY UNITS?
The minimum investment is $250.
You can buy units from the Sponsors.
UNIT PRICE PER 1,000 UNITS $2,689.25
(as of December 31, 1998)
Unit price is based on the net asset value of the Fund plus
the up-front sales fee.
The Portfolio stocks are valued by the Trustee on the basis
of their closing prices at 4:00 p.m. Eastern time every
business day. Unit price changes every day with changes in
the prices of the stocks.
9. HOW DO I SELL UNITS?
You may sell your units at any time to the Sponsors or the
Trustee for the net asset value determined at the close of
business on the date of sale, less the costs of liquidating
securities to meet the redemption.
10. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays monthly distributions of any dividend income,
net of expenses, on the 25th of each month, if you own
units on the 10th of that month. Distributions of ordinary
income will be dividends for federal income tax purposes
and may be eligible for the dividends-received deduction
for corporations. Distributions to foreign investors will
generally be subject to withholding taxes.
11. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You may choose to reinvest your distributions into
additional units of the Fund. Unless you choose
reinvestment, you will receive your income distributions in
cash.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales
fee on designated exchanges.
4
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S&P 500 MIDCAP TRUST RISK/RETURN SUMMARY
1. WHAT IS THE PORTFOLIO'S OBJECTIVE?
O The objective of this Defined Fund is designed to produce
investment results corresponding to the performance of the
Standard & Poor's 500 Stock Price Composite Index.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Portfolio contains 400 common stocks structured to
mirror, as closely as possible, the total return of the S&P
500 Index.
- -- With a single, convenient purchase, you can participate
in the total return performance of an index broadly
representing the market. This diversification reduces
the risk of selecting individual stocks or market
sectors.
O The Fund plans to hold the stocks in the Portfolio for
approximately 18 years. The Fund will terminate by February
28, 2017.
3. WHAT SECTORS ARE REPRESENTED IN THE PORTFOLIO?
100% of the Portfolio represents the S&P 500 Stock Index.
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Stock prices can be volatile.
o Dividend rates on the stocks or share prices may decline
during the life of the Fund.
o The Fund may continue to hold the stocks originally
selected even though their market value or yield may have
changed.
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want current monthly income. You will benefit
from a professionally selected and supervised portfolio
whose risk is reduced by investing in equity securities of
many different issuers.
The Fund is not appropriate for you if you are unwilling to
take the risk involved with an equity investment.
6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
ESTIMATED ANNUAL OPERATING EXPENSES
AMOUNT
PER 1,000 UNITS
---------------
$ 0.29
Trustee's Fee
$ 0.93
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.98
Other Operating Expenses
---------------
$ 2.20
TOTAL
The Sponsors historically paid updating expenses.
INVESTOR FEES
You will pay an up-front sales fee of approximately 4.50%.
The fee will be reduced for quantity purchases, as
follows:
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
-------------------------------- -----------------
Less than $25,000 2.25%
$25,000 to $49,999 2.00%
$50,000 to $74,999 1.75%
$75,000 to $99,999 1.50%
$100,000-$249,999 1.25%
$250,000-$999,999 1.00%
$1,000,000-$4,999,999 0.75%
$5,000,000-$14,999,999 0.50%
$15,000,000 or more 0.25%
7. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not managed and stocks
are not sold because of market changes. The Sponsors
monitor the portfolio and may instruct the Trustee to sell
securities under certain limited circumstances.
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S&P MIDCAP TRUST RISK/RETURN SUMMARY (CONTINUED)
8. HOW DO I BUY UNITS?
The minimum investment is $250.
You can buy units from the Sponsors.
UNIT PRICE PER 1,000 UNITS $1,643.56
(as of December 31, 1998)
Unit price is based on the net asset value of the Fund plus
the up-front sales fee.
The Portfolio stocks are valued by the Trustee on the basis
of their closing prices at 4:00 p.m. Eastern time every
business day. Unit price changes every day with changes in
the prices of the stocks.
9. HOW DO I SELL UNITS?
You may sell your units at any time to the Sponsors or the
Trustee for the net asset value determined at the close of
business on the date of sale, less the costs of liquidating
securities to meet the redemption.
10. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays monthly distributions of any dividend income,
net of expenses, on the 25th of each month, if you own
units on the 10th of that month. Distributions of ordinary
income will be dividends for federal income tax purposes
and may be eligible for the dividends-received deduction
for corporations. Distributions to foreign investors will
generally be subject to withholding taxes.
11. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You may choose to reinvest your distributions into
additional units of the Fund. Unless you choose
reinvestment, you will receive your income distributions in
cash.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales
fee on designated exchanges.
6
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WHAT YOU CAN EXPECT FROM YOUR INVESTMENT
INCOME
Because the Fund generally pays dividends as they are received, individual
income payments will fluctuate based upon the amount of dividends declared and
paid by each issuer. Other reasons your income may vary are:
o changes to the Portfolio because of sales of securities;
o changes in the Fund's expenses; and
o the amount of dividends declared and paid.
There can be no assurance that any dividends will be declared or paid.
RECORDS AND REPORTS
You will receive:
o a notice from the Trustee if new equity securities are deposited in exchange
or substitution for equity securities originally deposited;
o annual reports on Fund activity; and
o annual tax information. This will also be sent to the IRS. You must report the
amount of income received during the year. Please contact your tax advisor in
this regard.
You may inspect records of Portfolio transactions at the Trustee's office during
regular business hours.
THE RISKS YOU FACE
LITIGATION AND LEGISLATION RISKS
We do not know of any pending litigation that might have a material adverse
effect upon the Fund.
Future tax legislation could affect the value of the Fund by:
o reducing the dividends-received deduction or
o increasing the corporate tax rate resulting in less money available for
dividend payments.
SELLING UNITS
You can sell your units at any time for a price based on their net asset value.
Your net asset value is calculated each business day by:
o adding the value of the Portfolio securities, cash and any other Fund
assets;
o subtracting accrued but unpaid Fund expenses, unreimbursed Trustee
advances, cash held to buy back units or for distribution to investors,
and any other Fund liabilities; and
o dividing the result by the number of outstanding units.
Your net asset value when you sell may be more or less than your cost because of
sales fees, market movements and changes in the Portfolio.
SPONSORS' SECONDARY MARKET
While we are not obligated to do so, we will buy back units at net asset value
less any remaining deferred sales fee and the cost of liquidating securities to
meet the redemption. We may resell the units to other buyers or to the Trustee.
We have maintained a secondary market continuously for more than 28 years, but
we could discontinue it without prior notice for any business reason.
7
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SELLING UNITS TO THE TRUSTEE
Regardless of whether we maintain a secondary market, you can sell your units to
the Trustee at any time by contacting your broker, dealer or financial
institution that holds your units in street name. Sometimes, additional
documents are needed such as a trust document, certificate of corporate
authority, certificate of death or appointment as executor, administrator or
guardian.
Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.
As long as we are maintaining a secondary market, the Trustee will sell your
units to us at a price based on net asset value. If there is no secondary
market, the Trustee will sell your units in the over-the-counter market if it
believes it can obtain a higher price. In that case, you will receive the net
proceeds of the sale.
If the Fund does not have cash available to pay you for the units you are
selling we will select securities to be sold. These sales could be made at times
when the securities would not otherwise be sold and may result in your receiving
less than you paid for your unit and also reduce the size and diversity of the
Fund.
There could be a delay in paying you for your units:
o if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
o if the SEC determines that trading on the New York Stock Exchange is
restricted or that an emergency exists making sale or evaluation of the
securities not reasonably practicable; and
o for any other period permitted by SEC order.
HOW THE FUND WORKS
PRICING
Units are charged an initial sales fee.
EVALUATIONS
The Trustee values the securities on each business day (i.e., any day other than
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas).
If the securities are listed on a national securities exchange or the Nasdaq
National Market, evaluations are generally based on closing sales prices on that
exchange or that system or, if closing sales prices are not available, at the
mean between the closing bid and offer prices.
INCOME
o The annual income per unit, after deducting estimated annual Fund expenses per
unit, will depend primarily upon the amount of dividends declared and paid by
the issuers of the securities and changes in the expenses of the Fund and, to
a lesser degree, upon the level of sales of securities. There is no assurance
that dividends on the securities will continue at their current levels or be
declared at all.
o Each unit receives an equal share of monthly distributions of dividend income
net of estimated expenses. Because dividends on the securities are not
received
8
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at a constant rate throughout the year, any distribution may be more or less
than the amount then credited to the Income Account. The Trustee credits
dividends received to an Income Account and other receipts to a Capital
Account. The Trustee may establish a reserve account by withdrawing from the
these accounts amounts it considers appropriate to pay any material
liability. These accounts do not bear interest.
EXPENSES
The Trustee is paid a fee monthly. It also benefits when it holds cash for the
Fund in non-interest bearing accounts. The Trustee may also receive additional
amounts:
o for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
o costs of actions taken to protect the Fund and other legal fees and
expenses;
o expenses for keeping the Fund's registration statement current; and
o Fund termination expenses and any governmental charges.
The Sponsors are currently reimbursed up to 45 cents per 1,000 units annually
for providing portfolio supervisory, bookkeeping and administrative services and
for any other expenses properly chargeable to the Fund. Legal, typesetting,
electronic filing and regulatory filing fees and expenses associated with
updating the Fund's registration statement yearly are now chargeable to the
Fund. While this fee may exceed the amount of these costs and expenses
attributable to this Fund, the total of these fees for all Series of Defined
Asset Funds will not exceed the aggregate amount attributable to all of these
Series for any calendar year. Certain of these expenses were previously paid for
by the Sponsors.
The Trustee's and Sponsors' fees may be adjusted for inflation without
investors' approval.
The Sponsors will pay advertising and selling expenses at no charge to the Fund.
If Fund expenses exceed initial estimates, the Fund will owe the excess. The
Trustee has a lien on Fund assets to secure reimbursement of Fund expenses and
may sell securities if cash is not available.
PORTFOLIO CHANGES
If we maintain a secondary market in units but are unable to sell the units that
we buy in the secondary market, we will redeem units, which will affect the size
and composition of the portfolio.
We decide whether to offer units for sale that we acquire in the secondary
market after reviewing:
o diversity of the Portfolio;
o size of the Fund relative to its original size;
o ratio of Fund expenses to income; and
o cost of maintaining a current prospectus.
FUND TERMINATION
When the Fund is about to terminate you will receive a notice, and you will be
unable to sell your units after that time. Unless you choose to receive an
in-kind distribution of securities, we will sell any remaining securities, and
you will receive your final distribution in cash.
You will pay your share of the expenses associated with termination, including
brokerage costs in selling securities. This may reduce the amount you receive as
your final distribution.
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CERTIFICATES
Certificates for units are issued on request. You may transfer certificates by
complying with the requirements for redeeming certificates, described above. You
can replace lost or mutilated certificates by deliverying satisfactory indemnity
and paying the associated costs.
TRUST INDENTURE
The Fund is a 'unit investment trust' governed by a Trust Indenture, a contract
among the Sponsors and the Trustee, which sets forth their duties and
obligations and your rights. A copy of the Indenture is available to you on
request to the Trustee. The following summarizes certain provisions of the
Indenture.
The Sponsors and the Trustee may amend the Indenture without your consent:
o to cure ambiguities;
o to correct or supplement any defective or inconsistent provision;
o to make any amendment required by any governmental agency; or
o to make other changes determined not to be materially adverse to your best
interest (as determined by the Sponsors).
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in the Fund without your written consent.
The Trustee may resign by notifying the Sponsors. The Sponsors may remove the
Trustee without your consent if:
o it fails to perform its duties and the Sponsors determine that its
replacement is in your best interest; or
o it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities.
Investors holding 51% of the units may remove the Trustee. The Trustee may
resign or be removed by the Sponsors without the consent of investors. The
resignation or removal of the Trustee becomes effective when a successor accepts
appointment. The Sponsors will try to appoint a successor promptly; however, if
no successor has accepted within 30 days after notice of resignation, the
resigning Trustee may petition a court to appoint a successor.
10
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Any Sponsor may resign as long as one Sponsor with a net worth of $2 million
remains and agrees to the resignation. The remaining Sponsors and the Trustee
may appoint a replacement. If there is only one Sponsor and it fails to perform
its duties or becomes bankrupt the Trustee may:
o remove it and appoint a replacement Sponsor;
o liquidate the Fund; or
o continue to act as Trustee without a Sponsor.
Merrill Lynch, Pierce, Fenner & Smith Incorporated acts as agent for the
Sponsors.
The Trust Indenture contains customary provisions limiting the liability of the
Trustee and the Sponsors.
LEGAL OPINION
Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
special counsel for the Sponsor, has given an opinion that the units are validly
issued.
AUDITORS
Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Statement of Condition included in this
prospectus.
SPONSORS:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051
SALOMON SMITH BARNEY INC. (an indirectly wholly-owned subsidiary of Citigroup
Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013
PRUDENTIAL SECURITIES INCORPORATED (an
indirect wholly-owned subsidiary of the
Prudential Insurance Company of America)
One New York Plaza
New York, NY 10292
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048
PAINEWEBBER INCORPORATED (a wholly-owned subsidiary of PaineWebber Group Inc.)
1285 Avenue of the Americas,
New York, NY 10019
Each Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer each
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.
TRUSTEE
The Trustee for the S&P 500 Trust 2 is The Chase Manhattan Bank, Customer
Service Retail Department, Bowing Green Staton, P.O. Box 5187, New York, N.Y.
10274-5187 1-800-323-1508. The Trustee for the S&P MidCap Trust is the Bank of
New York,101 Barclay Street--17W, New York, New York 10268, is the Trustee. Each
Trustee supervised by the Federal Deposit Insurance Corporation,
11
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the Board of Governors of the Federal Reserve System and New York State banking
authorities.
UNDERWRITERS' AND SPONSORS' PROFITS
Underwriters receive sales charges when they sell units. Any cash made available
by you to the Sponsors before the settlement date for your units may be used in
the Sponsors' businesses to the extent permitted by federal law and may benefit
the Sponsors.
In maintaining a secondary market, the Sponsors will also realize profits or
sustain losses in the amount of any difference between the prices at which they
buy units and the prices at which they resell or redeem them.
PUBLIC DISTRIBUTION
The Sponsors do not intend to qualify units for sale in any foreign countries.
This prospectus does not constitute an offer to sell units in any country where
units cannot lawfully be sold.
CODE OF ETHICS
Merrill Lynch, as agent for the Sponsors, has adopted a code of ethics requiring
reporting of personal securities transactions by its employees with access to
information on portfolio transactions. The goal of the code is to prevent fraud,
deception or misconduct against the Fund and to provide reasonable standards of
conduct.
YEAR 2000 ISSUES
Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the 'Year
2000 Problem'). We do not expect that the computer system changes necessary to
prepare for the Year 2000 will cause any major operational difficulties for the
Fund. The Year 2000 Problem may adversely affect the issuers of the securities
contained in the Fund, but we cannot predict whether any impact will be material
to the Fund as a whole.
TAXES
The following summarizes the material income tax consequences of holding Units.
It assumes that you are not a dealer, financial institution, insurance company
or other investor with special circumstances. You should consult your own tax
adviser about your particular circumstances.
GENERAL TREATMENT OF THE FUND AND YOUR INVESTMENT
The Fund intends to quality for special tax treatment as a regulated investment
company so that it will not be subject to federal income tax on the portion of
its taxable income that it distributes to investors in a timely manner.
DISTRIBUTIONS
Distributions to you of the Fund's dividend income and of the Fund's gains from
Securities it has held for one year or less will generally be taxed to you as
ordinary income, to the extent of the Fund's taxable income not attributable to
the Fund's net capital gain. Distributions to you in excess of the Fund's
taxable income will be treated as a return of capital and will reduce your basis
in your Units. To the extent such distributions exceed your basis, they will be
treated as gain from the sale of your Units.
Distributions to you that are treated as ordinary income will constitute
dividends for
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federal income tax purposes. Corporate investors may be eligible for the 70%
dividends-received deduction with respect to these distributions. You should
consult your tax adviser.
Distributions to you of the Fund's net capital gain will generally be taxable to
you as long-term capital gain, regardless of how long you have held your Units.
INCOME OR LOSS UPON DISPOSITION
You will generally recognize capital gain or loss when you dispose of your
Units. If you receive Securities upon redemption of your Units, you will
generally recognize capital gain or loss equal to the difference between your
basis in your Units and the fair market value of the Securities received in
redemption.
If your net long-term capital gains exceed your net short-term capital losses,
the excess may be subject to tax at a lower rate than ordinary income. Any
capital gain or loss will generally be long-term if you have held your
investment which produces the gain or loss for more than one year and short-term
if you have held it for one year or less. Because the deductibility of capital
losses is subject to limitations, you may not be able to deduct all of your
capital losses. You should consult your tax adviser in this regard.
YOUR BASIS IN THE SECURITIES
Your aggregate basis in the Units will generally be equal to the cost of your
Units, including the initial sales charge.
FOREIGN INVESTORS
If you are a foreign investor and you are not engaged in a U.S. trade or
business, you will generally be subject to 30% withholding tax (or a lower
applicable treaty rate) on distributions. You should consult your tax adviser
about the possible application of federal, state and local, and foreign taxes.
SUPPLEMENTAL INFORMATION
You can receive at no cost supplemental information about the Fund by calling
the Trustee. The supplemental information includes more detailed risk disclosure
and general information about the structure and operation of the Fund. The
supplemental information is also available from the SEC.
13
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders
of Defined Asset Funds - Equity Investor Fund
Index Series, S&P Midcap Trust:
We have audited the accompanying statement of condition of Defined
Asset Funds - Equity Investor Fund Index Series, S&P Midcap Trust,
including the portfolio, as of December 31, 1998 and the related
statements of operations and of changes in net assets for the
years ended December 31, 1998, 1997 and 1996. 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, 1998, as shown in such portfolio, 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 Defined
Asset Funds - Equity Investor Fund Index Series, S&P Midcap Trust at
December 31, 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 15, 1999
D - 1
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1998
<TABLE>
<S> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $94,497,809) (Note 1)................... $112,494,633
Dividends receivable............................ 81,839
Receivable from securties sold.................. 13,660,653
Receivable from units created................... 10,355,319
_______________
Total trust property.................. 136,592,444
LESS LIABILITIES:
Advance from trustee............................. $ 10,788,320
Accrued expenses................................. 57,186
Payable for securties purchased.................. 2,948,792 13,794,298
____________ ______________
NET ASSETS, REPRESENTED BY:
71,666,875 units of fractional undivided
interest outstanding (Note 3)................. 122,734,770
Undistributed net investment income............. 63,376
____________
$122,798,146
==============
UNIT VALUE ($122,798,146/71,666,875 units)......... $1.71346
==============
</TABLE>
See Notes to Financial Statements.
D - 2
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
.........Years Ended December 31,.........
1998 1997 1996
__________________________________________
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income................................. $ 1,301,738 $ 1,137,334 $ 1,041,090
Trustee's fees and expenses..................... (128,720) (128,718) (78,290)
Sponsors' fees ................................. (24,158) (2,449) (21,131)
__________________________________________
Net investment income........................... 1,148,860 1,006,167 941,669
__________________________________________
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold or
redeemed...................................... 26,528,231 8,040,846 5,238,839
Unrealized appreciation (depreciation)
of investments................................ (9,055,120) 13,838,901 4,556,231
__________________________________________
Net realized and unrealized gain on
investments................................... 17,473,111 21,879,747 9,795,070
__________________________________________
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................................. $18,621,971 $22,885,914 $10,736,739
==========================================
</TABLE>
See Notes to Financial Statements.
D - 3
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
.........Years Ended December 31,.........
1998 1997 1996
__________________________________________
<S> <C> <C> <C>
OPERATIONS:
Net investment income........................... $ 1,148,860 $ 1,006,167 $ 941,669
Realized gain on securities sold
or redeemed.................................. 26,528,231 8,040,846 5,238,839
Unrealized appreciation (depreciation)
of investments............................... (9,055,120) 13,838,901 4,556,231
__________________________________________
Net increase in net assets resulting
from operations.............................. 18,621,971 22,885,914 10,736,739
__________________________________________
DISTRIBUTIONS TO HOLDERS (Note 2):
Income.......................................... (1,159,944) (946,032) (1,025,567)
Principal....................................... (17,276,624) (7,083,369) (5,092,080)
__________________________________________
Total distributions............................. (18,436,568) (8,029,401) (6,117,647)
__________________________________________
CAPITAL SHARE TRANSACTIONS:
Issuance of 19,617,727, 8,266,165 and 9,721,981
additional units, respectively ............... 34,580,318 13,613,877 13,212,226
Redemptions of 3,694,169, 2,071,441 and 1,164,262
units, respectively .......................... (6,109,494) (3,299,904) (1,514,682)
__________________________________________
Net capital share transactions.................. 28,470,824 10,313,973 11,697,544
__________________________________________
NET INCREASE IN NET ASSETS........................ 28,656,227 25,170,486 16,316,636
NET ASSETS AT BEGINNING OF YEAR................... 94,141,919 68,971,433 52,654,797
__________________________________________
NET ASSETS AT END OF YEAR......................... $122,798,146 $94,141,919 $68,971,433
==========================================
PER UNIT:
Income distributions during year................ .01856 .01796 .02198
==========================================
Principal distributions during year............. .26442 .12801 .10691
==========================================
Net asset value at end of year.................. 1.71346 1.68885 1.39200
==========================================
TRUST UNITS OUTSTANDING AT END OF YEAR............ 71,666,875 55,743,317 49,548,593
==========================================
</TABLE>
See Notes to Financial Statements.
D - 4
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940
as a Unit Investment Trust. The following is a summary of
significant accounting policies consistently followed by the
Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting
principles.
(a) Securities are stated at market value; for securities listed
on a national securities exchange, value is based on the
closing price on such exchange and for securities not so
listed, value is based on the current bid price on the
over-the-counter market. Realized gains or losses on sales
of securities are determined using the first-in, first-out
cost method.
(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.
(c) Dividend income is recorded on the ex-dividend date.
2. DISTRIBUTIONS
A distribution of net investment income is made to Holders on
the twenty-fifth day of each month. Receipts other than
dividends, after deductions for redemptions and applicable
expenses, are also distributed periodically.
3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 71,666,875 units at Date of Deposit...................................... $ 97,683,492
Less sales charge................................................................ 2,198,074
_______________
Net amount applicable to Holders................................................. 95,485,418
Redemptions of units - net cost of 8,242,839 units redeemed less redemption
amounts........................................................................ (2,508,896)
Realized gain on securities sold or redeemed..................................... 44,412,636
Principal distributions.......................................................... (32,651,212)
Net unrealized appreciation of investments....................................... 17,996,824
_______________
Net capital applicable to Holders................................................ $122,734,770
===============
</TABLE>
D - 5
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
NOTES TO FINANCIAL STATEMENTS
4. INCOME TAXES
As of December 31, 1998, net unrealized appreciation of
investments, based on cost for Federal income tax purposes,
aggregated $17,996,824, of which $26,658,603 related to
appreciated securities and $8,661,779 related to depreciated
securities. The cost of investment securities for Federal
income tax purposes was $94,497,809 at December 31, 1998.
D - 6
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
1 Aflac Inc. 35,474 $ 734,726 $ 1,560,929 1.39 %
2 Office Depot Inc. 32,850 823,313 1,213,497 1.08 %
3 Network Associates 16,250 674,194 1,076,563 0.96 %
4 Mckesson Corp. 12,400 545,072 980,375 0.87 %
5 Cintas Corporation 13,200 436,516 929,775 0.83 %
6 Harley Davidson Inc. 19,200 408,324 909,600 0.81 %
7 Linear Technology Corporation 9,400 411,150 841,888 0.75 %
8 Cadence Design Sys. Inc. 27,800 522,455 827,050 0.74 %
9 Lexmark Intl. Group Inc. 8,200 301,925 824,100 0.73 %
10 Century Telephone Enterprises 11,525 321,546 777,938 0.69 %
11 Marshall & Ilsley Corporation 13,300 494,858 777,219 0.69 %
12 Best Buy Inc. 12,600 250,020 773,325 0.69 %
13 Southtrust Corporation 20,675 528,464 763,683 0.68 %
14 Biogen Inc. 9,200 332,560 763,600 0.68 %
15 Washington Post 1,300 523,884 751,319 0.67 %
16 Molex Inc. 19,528 426,321 744,505 0.66 %
17 Altera Corporation 12,200 333,347 742,675 0.66 %
18 Maxim Integrated Products 16,400 398,438 716,475 0.64 %
19 Watson Pharmaceuticals 11,200 337,743 704,200 0.63 %
20 Paine Webber Group 17,950 414,135 693,319 0.62 %
21 Health Management 31,450 494,735 680,106 0.60 %
22 Kansas City Southern Industries Inc.13,700 317,362 673,869 0.60 %
23 Stryker Corporation 12,100 341,500 666,256 0.59 %
24 Allegiance Corporation 14,100 244,966 657,413 0.58 %
25 Cincinnati Bell, Inc 17,100 575,205 646,594 0.57 %
26 Analog Devices Inc. 20,400 375,398 640,050 0.57 %
27 CMS Energy Corporation 13,000 439,391 629,688 0.56 %
28 Starbucks Coffee 11,200 400,525 628,600 0.56 %
29 Keyspan Energy Corporation 19,950 636,165 618,450 0.55 %
30 Tyson Foods 29,000 531,043 616,250 0.55 %
31 Old Kent 13,205 420,565 614,033 0.55 %
32 First Tennessee National Corp. 16,100 314,143 612,806 0.54 %
33 Zion Bancorp 9,800 457,638 611,275 0.54 %
34 Bed Bath & Beyond 17,400 263,532 593,775 0.53 %
</TABLE>
D - 7
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
35 ADC Telecomunication 16,900 $ 379,451 $ 587,275 0.52 %
36 Chiron Corporation 22,400 427,110 586,600 0.52 %
37 Xilinx, Inc. 9,000 298,373 586,125 0.52 %
38 Charter One Financial Inc. 20,978 593,866 582,140 0.52 %
39 American Power Conversion Corp. 12,000 251,474 581,250 0.52 %
40 Saks Incorporated 17,860 553,696 563,706 0.50 %
41 Vulcan Material Co. 4,200 319,945 552,563 0.49 %
42 First Security Corporation 23,630 350,574 552,351 0.49 %
43 Florida Progress Corporation 12,150 421,788 544,472 0.48 %
44 Leggett & Platt Inc. 24,700 403,975 543,400 0.48 %
45 Forest Laboratories Inc. 10,200 265,851 542,513 0.48 %
46 Allied Waste Industry 22,900 542,163 541,013 0.48 %
47 Intuit Inc. 7,400 341,302 536,500 0.48 %
48 GAC 10,000 530,031 530,031 0.47 %
49 Fiserv Inc. 10,300 283,063 529,806 0.47 %
50 Conford EFS, Inc. 13,200 528,537 528,537 0.47 %
51 Allegheny Energy Inc. 15,300 424,698 527,850 0.47 %
52 Reliastar 11,400 502,328 525,825 0.47 %
53 El Paso Natural Gas Co. 15,100 408,099 525,669 0.47 %
54 Sungard Data Systems Inc. 13,200 371,975 523,875 0.47 %
55 AMBAC Financial Group 8,700 350,953 523,631 0.47 %
56 Quintiles Trans 9,800 470,897 523,075 0.46 %
57 Sterling Commerce Inc. 11,511 353,585 517,995 0.46 %
58 Citrix Systems Inc. 5,300 388,193 514,431 0.46 %
59 Robert Half International 11,500 412,558 513,906 0.46 %
60 T. Rowe Price Assoc. 15,000 342,815 513,750 0.46 %
61 NCR Corporation 12,300 407,066 513,525 0.46 %
62 Mylan Labs 16,150 364,154 508,725 0.45 %
63 Genzyme Corp. General 10,100 267,231 502,475 0.45 %
64 Federal-Mogul Corporation 8,400 386,476 499,800 0.44 %
65 Tosco Corporation 19,200 435,365 496,800 0.44 %
66 U.S. Filter Corporation 21,562 612,539 493,231 0.44 %
67 Hillenbrand Industries Inc. 8,400 416,222 477,750 0.42 %
68 Family Dlr. Stores Inc. 21,600 214,700 475,200 0.42 %
</TABLE>
D - 8
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
69 Symbol Technologies 7,425 $ 168,361 $ 474,736 0.42 %
70 Teco Energy 16,500 401,449 465,094 0.41 %
71 LG & E Energy 16,300 403,755 461,494 0.41 %
72 Abercrombie & Fitch 6,500 315,456 459,875 0.41 %
73 Synopsys Inc. 8,400 364,192 455,700 0.41 %
74 Wisconsin Energy 14,400 407,676 452,700 0.40 %
75 Qualcomm Inc Com 8,700 451,952 450,769 0.40 %
76 Pacificare Health Sys-B Inc. 5,656 418,484 449,652 0.40 %
77 Pinnacle West Cap. Corporation 10,600 323,210 449,175 0.40 %
78 Quantum Corporation 21,100 334,879 448,375 0.40 %
79 Nipsco Inds Inc 14,700 306,829 447,431 0.40 %
80 Energy East Corporation 7,900 261,094 446,350 0.40 %
81 Teradyne, Inc. 10,500 254,353 444,938 0.40 %
82 Storage Technology 12,500 302,109 444,531 0.40 %
83 Bergen Brunswig Corporation 12,650 172,085 441,169 0.39 %
84 Edward A.G. Inc. 11,787 278,878 439,066 0.39 %
85 DPL Inc Com 20,200 411,785 436,825 0.39 %
86 SCI Systems Inc. 7,500 249,413 433,125 0.39 %
87 North Fork Bancor 17,850 450,074 427,284 0.38 %
88 Shaw Industries Inc. 17,600 289,533 426,800 0.38 %
89 Electronic Arts 7,600 266,390 426,550 0.38 %
90 Scana Corporation 13,000 343,028 419,250 0.37 %
91 Greenpoint Finance 11,900 377,236 417,988 0.37 %
92 Centocor Inc. 8,800 260,747 397,100 0.35 %
93 Potomac Electric Power Company 14,900 371,199 392,056 0.35 %
94 Comverse Tecnology 5,500 263,106 390,500 0.35 %
95 Montana Power Company 6,900 198,434 390,281 0.35 %
96 Omnicare, Inc. 11,200 345,467 389,200 0.35 %
97 Old Republic International 17,050 424,363 383,625 0.34 %
98 Viad Corporation 12,500 231,195 379,688 0.34 %
99 Dime Bancorp Inc. 14,300 359,397 378,056 0.34 %
100 The Finova Group, Inc. 7,000 319,549 377,563 0.34 %
101 Siebel Sys Inc. 11,100 303,788 376,706 0.33 %
102 Sonoco Products Co. 12,715 324,824 376,682 0.33 %
</TABLE>
D - 9
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
103 Dial Corporation 12,900 $ 216,156 $ 372,488 0.33 %
104 Litton Industries Inc. 5,700 264,134 371,925 0.33 %
105 Barnes & Noble 8,600 230,553 365,500 0.32 %
106 New England Electric 7,500 294,196 360,938 0.32 %
107 Martin Marietta Materials 5,800 222,078 360,688 0.32 %
108 Sundstrand Corporation 6,900 260,665 357,938 0.32 %
109 Keane Ins. 8,800 475,896 351,450 0.31 %
110 Telephone & Data 7,700 315,975 346,019 0.31 %
111 Promus Hotel Corporation 10,687 378,545 345,992 0.31 %
112 Sybron International Corporation 12,700 275,431 345,281 0.31 %
113 International Game Technology 14,100 298,447 342,806 0.30 %
114 Mercantile Bankshare Corporation 8,900 205,827 342,650 0.30 %
115 American Water Works 10,100 234,642 340,875 0.30 %
116 Hibernia Bancorp 19,600 272,722 340,550 0.30 %
117 Solutia Inc. 15,200 346,380 340,100 0.30 %
118 IBP Inc. 11,600 228,909 337,850 0.30 %
119 American Financial Group Hldg. 7,700 262,697 337,838 0.30 %
120 Transocean Offshore Inc. 12,600 421,238 337,838 0.30 %
121 Apollo Group Inc. 10,800 336,388 336,388 0.30 %
122 SEPR 3,900 334,537 334,537 0.30 %
123 Conectiv 13,475 291,749 330,138 0.29 %
124 Lear Corporation 8,400 444,131 323,400 0.29 %
125 Dollar Tree Stores 7,400 231,169 323,288 0.29 %
126 Protective Life C 8,100 298,424 322,481 0.29 %
127 Comdisco Inc. 19,044 203,178 321,368 0.29 %
128 Arrow Electronics Inc. 12,000 261,807 320,250 0.28 %
129 Whitman Corp. 12,600 218,895 319,725 0.28 %
130 Legato Systems 5,000 319,063 319,063 0.28 %
131 Midamerican Energy Co. 11,800 207,133 317,125 0.28 %
132 American Standard 8,800 403,709 316,800 0.28 %
133 Ipalco Enterprises 5,700 182,005 315,994 0.28 %
134 Hubbell Inc. Class B 8,240 302,722 313,120 0.28 %
135 Interstate Energy 9,700 315,780 312,825 0.28 %
136 Nova 9,000 282,678 312,188 0.28 %
</TABLE>
D - 10
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
137 Consolidated Paper Inc. 11,300 $ 293,837 $ 310,750 0.28 %
138 Diebold Inc. 8,668 233,227 309,339 0.27 %
139 McCormick & Co. Inc. 9,100 244,197 307,694 0.27 %
140 IMC Global Inc. 14,300 486,437 305,663 0.27 %
141 Hormel (Geo A) & Co. 9,200 268,058 301,300 0.27 %
142 AH Bello Corporation 15,100 305,147 301,056 0.27 %
143 Flowers Industries Inc. 12,550 179,658 300,416 0.27 %
144 Total Rental Care 10,100 312,505 298,581 0.27 %
145 Lincare Hldgs 7,300 269,494 296,106 0.26 %
146 Puget Sound Energy, Inc. 10,600 277,711 295,475 0.26 %
147 First Virginia Banks Inc. 6,250 227,486 293,750 0.26 %
148 OGE Energy Corporation 10,100 219,154 292,900 0.26 %
149 CCB Financial Cor. 5,100 260,366 290,700 0.26 %
150 Miller Herman Inc. 10,800 150,938 290,250 0.26 %
151 Snyder Communication 8,600 287,718 290,250 0.26 %
152 U.S. Foodservice 5,900 213,451 289,100 0.26 %
153 Jones Apparel Group 13,100 221,690 289,019 0.26 %
154 Sovereign Bancorp 20,000 335,525 285,000 0.25 %
155 Southdown Incorporated 4,800 250,863 284,100 0.25 %
156 Bowater Inc. 6,800 283,744 281,775 0.25 %
157 Hannaford Bros. Co. 5,300 165,673 280,900 0.25 %
158 Georgia Pacific Timber Group 11,600 282,262 276,225 0.25 %
159 Utilicorp United 7,500 241,687 275,156 0.24 %
160 Stewart Enterprises, Inc. 12,300 274,041 273,675 0.24 %
161 Associated Banc. Corp. 7,975 308,776 272,645 0.24 %
162 Avnet, Inc. 4,500 224,495 272,250 0.24 %
163 Sterling Software 10,000 279,746 270,625 0.24 %
164 Premark International Inc. 7,700 248,255 266,613 0.24 %
165 Ultramar Diamond Shamrock Corp. 10,962 344,496 265,829 0.24 %
166 TCF Financial Corporation 10,900 346,368 263,644 0.23 %
167 Northeast Utilities 16,400 328,339 262,400 0.23 %
168 Calenergy 7,500 228,204 260,156 0.23 %
169 Wilmington Trust 4,200 167,738 258,825 0.23 %
170 Tech Data Corp. 6,400 275,713 257,600 0.23 %
</TABLE>
D - 11
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
171 Everest Reinsurance Holdings 6,800 $ 254,890 $ 254,890 0.23 %
172 SPX Corp Com 3,800 176,049 254,600 0.23 %
173 Fore Systems Inc. 13,900 150,438 254,544 0.23 %
174 Clayton Homes Inc. 18,214 203,790 251,577 0.22 %
175 Manpower Inc. 9,900 326,118 249,356 0.22 %
176 Outback Steakhouse 6,200 189,654 247,225 0.22 %
177 Pacific Century Financial Corp. 10,100 195,495 246,188 0.22 %
178 Steris Corp 8,600 252,931 244,563 0.22 %
179 City National Corporation 5,800 116,892 241,425 0.21 %
180 Cabot Corporation 8,600 192,276 240,263 0.21 %
181 Borders Group, IN 9,600 326,598 239,400 0.21 %
182 Interstate Bakeries 9,000 241,126 237,938 0.21 %
183 Comsat Corporation 6,600 159,214 237,600 0.21 %
184 Brinker Intl. Inc. 8,225 155,945 237,497 0.21 %
185 Keysone Fin. Inc. 6,400 195,916 236,800 0.21 %
186 Microship Technology 6,400 145,964 236,800 0.21 %
187 WFT 12,221 490,102 236,782 0.21 %
188 Gatx Corporation 6,200 176,399 234,825 0.21 %
189 Ross Stores 5,900 282,988 232,313 0.21 %
190 Kansas City Power & Light Co. 7,800 204,384 231,075 0.21 %
191 Murphy Oil Corporation 5,600 238,003 231,000 0.21 %
192 Agourn 3,900 152,138 229,125 0.20 %
193 Tiffany & Co. 4,400 134,669 228,250 0.20 %
194 Policy Management Systems Corp. 4,500 137,208 227,250 0.20 %
195 Sotheby's Holdings Inc. 7,100 117,307 227,200 0.20 %
196 CNF Transportation Inc. 6,000 175,888 225,375 0.20 %
197 Illinova Corporation 9,000 232,737 225,000 0.20 %
198 TCA Cable Tv 6,300 113,877 224,831 0.20 %
199 Westpoint Stevens 7,100 247,247 224,094 0.20 %
200 Reynolds & Reynolds Company 9,700 151,227 222,494 0.20 %
201 Dole Food Inc. 7,400 268,747 222,000 0.20 %
202 RPM, Inc. 13,875 194,291 222,000 0.20 %
203 Airborne Freight Corporation 6,100 130,526 219,981 0.20 %
204 BJ'S Club 4,700 149,131 217,669 0.19 %
</TABLE>
D - 12
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
205 ICN Pharmacueticals 9,600 $ 417,237 $ 217,200 0.19 %
206 National Fuel Gas Co. 4,800 183,879 216,900 0.19 %
207 Teleflex 4,700 123,775 214,438 0.19 %
208 Informix Corporation 21,600 299,501 213,300 0.19 %
209 Covance Inc. 7,300 154,969 212,613 0.19 %
210 Noble Drilling Corporation 16,400 318,062 212,175 0.19 %
211 Fastenal Company 4,800 198,115 211,200 0.19 %
212 Trinity Industries 5,450 180,450 209,825 0.19 %
213 KN Energy 5,700 305,316 207,338 0.18 %
214 Platinum Technology 10,800 317,806 206,550 0.18 %
215 York International 5,000 214,363 204,063 0.18 %
216 Provident Financial 5,400 248,244 203,850 0.18 %
217 A.C. Nielson Corporation 7,200 134,409 203,400 0.18 %
218 Modis Professional 14,000 463,231 203,000 0.18 %
219 Pssi 8,800 183,094 202,400 0.18 %
220 Dean Foods Co. 4,900 187,106 199,981 0.18 %
221 Questar Corporation 10,300 181,627 199,563 0.18 %
222 Global Marine Inc. 21,700 269,799 199,369 0.18 %
223 Payless Shoesource 4,200 193,785 198,975 0.18 %
224 Minnesota Power And Light Co. 4,500 158,724 198,000 0.18 %
225 Trigon Healthcare 5,300 190,763 197,756 0.18 %
226 Carlisle Companies Inc. 3,800 105,796 196,175 0.17 %
227 Beckman Instrs Inc. 3,600 137,682 195,300 0.17 %
228 Chris Craft Industries Inc. 4,050 165,167 195,159 0.17 %
229 First Brand Corporation 4,900 111,153 193,244 0.17 %
230 Atmel Corporation 12,500 263,277 191,406 0.17 %
231 Pentair Inc. 4,800 138,255 191,100 0.17 %
232 Officemax Inc. 15,700 229,202 190,363 0.17 %
233 FBN 7,100 189,561 189,561 0.17 %
234 Warnaco Group, Inc. 7,500 225,070 189,375 0.17 %
235 MCN Energy Group Inc. 9,900 229,825 188,719 0.17 %
236 The PMI Group Inc. 3,800 208,291 187,625 0.17 %
237 Crompton Knowles Corporation 9,000 179,528 186,188 0.17 %
238 Meritor Automotive 8,700 201,010 184,331 0.16 %
</TABLE>
D - 13
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
239 Hon Inds. Inc. 7,700 $ 156,538 $ 184,319 0.16 %
240 Aliant Communications 4,500 92,753 183,938 0.16 %
241 Ensco International 17,200 274,585 183,825 0.16 %
242 Ivax Corp. 14,700 279,159 182,831 0.16 %
243 Foundation Health Systems Inc. 15,300 402,790 182,644 0.16 %
244 Media General Inc. 3,400 117,699 180,200 0.16 %
245 Houghton Miffein Company 3,800 96,969 179,550 0.16 %
246 Cracker Barrel Old Country
Store Inc. 7,650 211,027 178,341 0.16 %
247 Lubizol Corporation 6,900 219,147 177,244 0.16 %
248 Lee Enterprises Inc. 5,600 125,870 176,400 0.16 %
249 Universal Foods 6,400 120,071 175,600 0.16 %
250 Noble Affiliates Inc. 7,100 235,779 174,838 0.16 %
251 AK Steel Holding Corporation 7,400 150,721 173,900 0.15 %
252 Lyondell Petrochemical 9,600 248,866 172,800 0.15 %
253 Cordant 4,600 114,832 172,500 0.15 %
254 Nabors Inds. Inc. 12,600 212,971 170,888 0.15 %
255 Harsco Corporation 5,600 179,956 170,450 0.15 %
256 Idacorp Inc. Hldg. 4,700 143,374 170,081 0.15 %
257 Dentsply Intl. Inc. 6,600 143,203 169,950 0.15 %
258 Lancaster Colony Corporation 5,265 146,575 169,138 0.15 %
259 Olin Corp Com Par $15,900 210,467 167,044 0.15 %
260 Nevada Power Co. 6,400 147,647 166,400 0.15 %
261 AGL Resources 7,200 137,814 166,050 0.15 %
262 Tidewater Inc. 7,100 249,333 164,631 0.15 %
263 Pittston Brink's Group 5,100 150,901 162,563 0.14 %
264 Borg-Warner Automotive, Inc. 2,900 156,615 161,856 0.14 %
265 Cambridge Tech. Partn. 7,300 152,900 161,513 0.14 %
266 Hawaiian Electric Ind Inc. 4,000 151,846 161,000 0.14 %
267 Rayonier Inc. 3,500 131,692 160,781 0.14 %
268 Kaydon Corporation 4,000 95,342 160,250 0.14 %
269 Federal Signal Corporation 5,700 125,087 156,038 0.14 %
270 Ogden Corporation 6,200 132,593 155,388 0.14 %
271 Washington Gas Light 5,700 129,125 154,613 0.14 %
272 Comp-USA Inc. 11,800 325,078 154,138 0.14 %
</TABLE>
D - 14
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
273 Smith International Inc. 6,000 $ 200,879 $ 151,125 0.13 %
274 Oxford Health Plans 10,100 478,556 150,238 0.13 %
275 Symantec Corporation 6,900 140,182 150,075 0.13 %
276 HSB Group, Inc. 3,650 140,512 149,878 0.13 %
277 Unifi, Inc. 7,650 223,768 149,653 0.13 %
278 Micro Warehouse, Inc. 4,400 153,032 148,775 0.13 %
279 Valero Refining & Marketing Co. 7,000 156,331 148,750 0.13 %
280 Universal Corporation 4,200 130,613 147,525 0.13 %
281 Newport News Shipbuilding 4,400 83,998 147,125 0.13 %
282 Kelly Services Inc. 4,600 145,914 146,050 0.13 %
283 Alaska Air Group, Inc. 3,300 126,748 146,025 0.13 %
284 Pennzoil-Quaker State Co. 9,774 155,994 144,775 0.13 %
285 Wallace Computer 5,400 123,778 142,425 0.13 %
286 B J Svcs. Co. 9,100 193,242 142,188 0.13 %
287 Varian Associates 3,700 161,540 140,138 0.12 %
288 Albemarle Corporation 5,900 107,699 140,125 0.12 %
289 General Nutritiion Inc. 8,600 251,091 139,750 0.12 %
290 Precision Castparts Corporation 3,100 144,429 137,175 0.12 %
291 Circus Circus Enterprises Inc. 11,900 329,198 136,106 0.12 %
292 Vlasic Food 5,700 134,526 135,731 0.12 %
293 Modine Manufacturing Co. 3,700 103,109 134,125 0.12 %
294 Ruddick Corporation 5,800 75,945 133,400 0.12 %
295 GTech Holdings Corporation 5,200 164,337 133,250 0.12 %
296 Bob Evans Farms Inc. 5,100 97,781 132,919 0.12 %
297 Claires Stores Inc. 6,375 78,866 130,688 0.12 %
298 Jacobs Engr. Group Inc. 3,200 88,904 130,400 0.12 %
299 Alexander & Baldwin Inc. 5,600 141,514 130,200 0.12 %
300 Gencorp Inc. 5,200 96,556 129,675 0.12 %
301 Arvin Industries Inc. 3,100 96,451 129,231 0.11 %
302 Donaldson Co. Inc. 6,100 89,671 126,575 0.11 %
303 First Health Group 7,600 185,892 125,875 0.11 %
304 Vishay Intertechnology 8,481 233,633 122,975 0.11 %
305 Tecumseh Product 2,600 141,351 121,225 0.11 %
306 WASAU 6,788 134,134 120,063 0.11 %
</TABLE>
D - 15
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
307 Vanguard Cellular 4,600 $ 94,422 $ 118,738 0.11 %
308 Quorem Health Group 9,000 222,752 116,438 0.10 %
309 Ferro Corporation 4,475 94,718 116,350 0.10 %
310 Granite Construction Inc. 3,450 48,525 115,791 0.10 %
311 Cytec Ind. Inc. 5,400 212,577 114,750 0.10 %
312 Witco Corp. 7,200 216,527 114,750 0.10 %
313 Minerals Technologies 2,800 109,370 114,625 0.10 %
314 Carter Wallace Inc. 5,700 124,993 111,863 0.10 %
315 Pioneer Natural Resources Co. 12,600 356,954 110,250 0.10 %
316 Wisconsin Central Transport 6,400 182,950 110,000 0.10 %
317 ASA Hldgs. Inc. 3,600 111,356 109,800 0.10 %
318 Bandag Inc. 2,700 138,202 107,831 0.10 %
319 Scholastic Corporation 2,000 107,738 107,250 0.10 %
320 Public Service Co. 5,200 89,188 106,275 0.09 %
321 Standard Register Co. 3,400 93,321 105,188 0.09 %
322 Hunt JB Trans. Svcs. Inc. 4,500 103,564 103,500 0.09 %
323 Nordson Corporation 2,000 105,132 102,750 0.09 %
324 Lands' End Inc. 3,800 80,736 102,363 0.09 %
325 Suiza Foods Corp. 2,000 101,975 101,975 0.09 %
326 Ucar International, Inc. 5,600 231,062 99,750 0.09 %
327 Chesapeake Corp. 2,700 84,169 99,563 0.09 %
328 Banta Corporation 3,600 90,070 98,550 0.09 %
329 Pennzenergy 6,000 93,295 97,875 0.09 %
330 Callaway Golf Co. 9,400 210,223 96,350 0.09 %
331 Cleco Corp. 2,800 76,175 96,075 0.09 %
332 Superior Industries 3,400 96,522 94,563 0.08 %
333 Schulman A Inc. 4,150 94,839 94,153 0.08 %
334 Indiana Energy Inc. 3,733 67,997 91,925 0.08 %
335 Carpenter Technology 2,700 111,792 91,631 0.08 %
336 Structural Dynamic 4,600 91,099 91,425 0.08 %
337 Dexter Corporation 2,900 83,548 91,169 0.08 %
338 Cypress Semiconducter Corporation 10,800 130,467 89,775 0.08 %
339 Ametek 4,000 71,552 89,250 0.08 %
340 Imation Corporation 5,100 113,136 89,250 0.08 %
</TABLE>
D - 16
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
341 J M Smucker Co CL A 3,600 $ 88,487 $ 89,100 0.08 %
342 Mark IV Industries Inc. 6,805 129,038 88,465 0.08 %
343 Beverly Enterprises 12,800 156,453 86,400 0.08 %
344 Church & Dwight Co. 2,400 66,410 86,250 0.08 %
345 Burlington Inds. Inc. 7,800 88,459 85,800 0.08 %
346 Fuller (H.B.) Co. 1,700 76,207 81,813 0.07 %
347 Perrigo Co. 9,200 186,711 81,075 0.07 %
348 Flowserve Corporation 4,850 134,958 80,328 0.07 %
349 OEI 12,700 283,298 80,169 0.07 %
350 Airgas Inc. 8,800 176,000 78,650 0.07 %
351 Kennametal Inc. 3,700 126,722 78,625 0.07 %
352 Cirrus Logic Inc. 8,000 139,930 78,500 0.07 %
353 Sequa Corporation 1,300 58,347 77,838 0.07 %
354 CMP Group Inc. Hol 4,100 78,825 77,388 0.07 %
355 Hanna (M.A.) Co. 6,200 106,989 76,338 0.07 %
356 Lance Inc. 3,800 80,683 75,763 0.07 %
357 Longview Fibre Co. 6,500 109,406 75,156 0.07 %
358 Olsten Corp. Com 10,150 212,479 74,856 0.07 %
359 Albany Intl. Corporation 3,914 75,713 74,116 0.07 %
360 Overseas Shipholding Group Inc. 4,600 90,425 73,888 0.07 %
361 Black Hills Inc. 2,700 49,992 71,213 0.06 %
362 Ranger Oil Ltd. 15,800 117,939 70,113 0.06 %
363 Nine West Group 4,500 145,122 70,031 0.06 %
364 Mentor Graphics Corporation 8,200 101,096 69,700 0.06 %
365 Sbarro Inc. 2,600 63,173 68,088 0.06 %
366 Rollins, Inc. 3,850 86,402 67,375 0.06 %
367 Buffets Inc. 5,600 75,155 66,850 0.06 %
368 Sequent Computer Systems Inc. 5,500 98,826 66,344 0.06 %
369 Glatfelter Ph & Company 5,300 93,159 65,588 0.06 %
370 Sensormatic Electronics Corp. 9,350 187,472 64,866 0.06 %
371 Unisource Worldwide Inc. 8,800 150,831 63,800 0.06 %
372 Integrated Device Tech. 10,300 161,673 63,088 0.06 %
373 Concentra Managed Care Inc. 5,900 176,501 63,056 0.06 %
374 Varco International 8,100 77,591 62,775 0.06 %
</TABLE>
D - 17
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
<TABLE>
<CAPTION>
PORFOLIO
AS OF DECEMBER 31, 1998
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
___ _____________ ______ ________ _________ ___
<C><S> <C> <C> <C> <C>
375 Georgia Gulf Corporation 3,900 $ 103,861 $ 62,644 0.06 %
376 Calmat Co. 2,000 43,885 61,750 0.05 %
377 Ethyl Corporation 10,500 100,069 61,031 0.05 %
378 International Multifoods Corp. 2,300 56,026 59,369 0.05 %
379 Agco Corporation 7,500 212,587 59,063 0.05 %
380 Apria Healthcare Group 6,500 141,746 58,094 0.05 %
381 Watts Industries 3,400 76,544 56,525 0.05 %
382 Cleveland Cliffs Inc. 1,400 60,101 56,438 0.05 %
383 Maxxam Inc. 900 38,759 51,638 0.05 %
384 Dreyers Grand Ice Cream Inc. 3,400 52,556 51,425 0.05 %
385 Acuson Common 3,400 61,415 50,575 0.04 %
386 Heilg-Meyers Co. 7,475 128,350 49,989 0.04 %
387 Arnold Inds. 3,100 51,808 49,988 0.04 %
388 Seagull Energy Corporation 7,900 154,927 49,869 0.04 %
389 Lawter International 4,100 50,725 47,663 0.04 %
390 ENC 2,000 61,724 46,500 0.04 %
391 Magnetek Inc. 4,000 66,413 46,250 0.04 %
392 Inland STL Inds. 2,700 74,804 45,563 0.04 %
393 Lone Star Steakhouse 4,900 142,574 45,019 0.04 %
394 NCH Corporation 700 43,111 41,650 0.04 %
395 Wellman, Inc. 3,900 86,408 39,731 0.04 %
396 Oregon Steel Mills Inc. 3,200 61,761 38,000 0.03 %
397 Calgon Carbon Corporation 4,900 69,704 36,750 0.03 %
398 Information Res. Inc. 3,500 75,545 35,656 0.03 %
399 Stewart & Stevenson 3,500 102,726 34,125 0.03 %
400 OEA Inc. 2,600 70,346 30,713 0.03 %
401 Parker Drilling Co. 9,600 68,820 30,600 0.03 %
__________ _____________ ____________ __________
3,577,052 $94,497,809 $112,494,633 100.000 %
========== ============= ============ ==========
</TABLE>
NOTE:
(1) See Notes to Financial Statements.
D - 18
<PAGE>
Def ined
Asset FundsSM
HAVE QUESTIONS ? EQUITY INVESTOR FUND
Request the most INDEX SERIES
recent free Information S&P 500 TRUST 2
Supplement that gives more S&P 500 MIDCAP TRUST
details about the Fund, (A Unit Investment Trust)
by calling: ---------------------------------------
The Chase Manhattan Bank This Prospectus does not contain
1-800-323-1508 complete information about the
The Bank of New York investment company filed with the
1-800-221-7771 Securities and Exchange Commission in
Washington, D.C. under the:
o Securities Act of 1933 (file no.
33-44844) and
o Investment Company Act of 1940 (file
no. 811-3044).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
When units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a
future series, but some of the
information in this Prospectus will be
changed for that series.
Units of any future series may not be
sold nor may offers to buy be accepted
until that series has become effective
with the Securities and Exchange
Commission. No units can be sold in any
State where a sale would be illegal.
14124--4/99
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Post-Effective Amendment to the Registration Statement on Form S-6
comprises the following papers and documents:
The facing sheet of Form S-6.
The Cross-Reference Sheet (incorporated by reference to the Cross-Reference
Sheet to the Registration Statement of Defined Asset Funds Municipal Insured
Series, 1933 Act File No. 33-54565).
The Prospectus.
The Signatures.
The following exhibits:
1.1.1 --Form of Standard Terms and Conditions of Trust Effective
October 21, 1993 (incorporated by reference to Exhibit 1.1.1 to
the Registration Statement of Municipal Investment Trust Fund,
Multistate Series--48, 1933 Act File No. 33-50247).
5.1 --Consent of independent accountants.
9.1 --Information Supplement (incorporated by reference to Exhibit
9.1 to the Registration Statement of Equity Investor Fund,
Select Ten Portfolio 1999 International Series A (United
Kingdom Portfolio), 1933 Act File No. 333-70593).
R-1
<PAGE>
DEFINED ASSET FUNDS--
EQUITY INVESTOR FUND
INDEX SERIES
S&P 500 TRUST 2/S&P MIDCAP TRUST
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT,
DEFINED ASSET FUNDS, EQUITY INVESTOR FUND, INDEX SERIES, S&P 500 TRUST 2/S&P
MIDCAP TRUST, CERTIFIES THAT IT MEETS ALL OF THE REQUIREMENTS FOR EFFECTIVENESS
OF THIS REGISTRATION STATEMENT PURSUANT TO RULE 485(B) UNDER THE SECURITIES ACT
OF 1933 AND HAS DULY CAUSED THIS REGISTRATION STATEMENT OR AMENDMENT TO THE
REGISTRATION STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO
DULY AUTHORIZED IN THE CITY OF NEW YORK AND STATE OF NEW YORK ON THE 14TH DAY OF
APRIL, 1999.
SIGNATURES APPEAR ON PAGE R-3, R-4, R-5, R-6 AND R-7.
A majority of the members of the Board of Directors of Merrill Lynch,
Pierce, Fenner & Smith Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.
A majority of the members of the Board of Directors of Salomon Smith Barney
Inc. has signed this Registration Statement or Amendment to the Registration
Statement pursuant to Powers of Attorney authorizing the person signing this
Registration Statement or Amendment to the Registration Statement to do so on
behalf of such members.
A majority of the members of the Board of Directors of Prudential
Securities Incorporated has signed this Registration Statement or Amendment to
the Registration Statement pursuant to Powers of Attorney authorizing the person
signing this Registration Statement or Amendment to the Registration Statement
to do so on behalf of such members.
A majority of the members of the Executive Committee of the Board of
Directors of PaineWebber Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.
A majority of the members of the Board of Directors of Dean Witter Reynolds
Inc. has signed this Registration Statement or Amendment to the Registration
Statement pursuant to Powers of Attorney authorizing the person signing this
Registration Statement or Amendment to the Registration Statement to do so on
behalf of such members.
R-2
<PAGE>
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
DEPOSITOR
By the following persons, who constitute Powers of Attorney have been filed
a majority of under
the Board of Directors of Merrill Form SE and the following 1933 Act
Lynch, Pierce, File
Fenner & Smith Incorporated: Number: 333-70593
HERBERT M. ALLISON, JR.
GEORGE A. SCHIEREN
JOHN L. STEFFENS
J. DAVID MEGLEN
(As authorized signatory for Merrill Lynch, Pierce,
Fenner & Smith Incorporated and
Attorney-in-fact for the persons listed above)
R-3
<PAGE>
SALOMON SMITH BARNEY INC.
DEPOSITOR
By the following persons, who constitute a majority of Powers of Attorney
the Board of Directors of Salomon Smith Barney Inc.: have been filed
under the 1933 Act
File Numbers:
333-63417 and
333-63033
MICHAEL A. CARPENTER
DERYCK C. MAUGHAN
By GINA LEMON
(As authorized signatory for
Salomon Smith Barney Inc. and
Attorney-in-fact for the persons listed above)
R-4
<PAGE>
PRUDENTIAL SECURITIES INCORPORATED
DEPOSITOR
By the following persons, who constitute a majority of Powers of Attorney
the Board of Directors of Prudential Securities have been filed
Incorporated: under Form SE and
the following 1933
Act File Numbers:
33-41631 and
333-15919
ROBERT C. GOLDEN
ALAN D. HOGAN
A. LAURENCE NORTON, JR.
LELAND B. PATON
VINCENT T. PICA II
MARTIN PFINSGRAFF
HARDWICK SIMMONS
LEE B. SPENCER, JR.
BRIAN M. STORMS
By RICHARD R. HOFFMANN
(As authorized signatory for Prudential Securities
Incorporated and Attorney-in-fact for the persons
listed above)
R-5
<PAGE>
PAINEWEBBER INCORPORATED
DEPOSITOR
By the following persons, who constitute Powers of Attorney have been filed
the Board of Directors of PaineWebber under
Incorporated: the following 1933 Act File
Number: 33-55073
MARGO N. ALEXANDER
TERRY L. ATKINSON
BRIAN M. BAREFOOT
STEVEN P. BAUM
MICHAEL CULP
REGINA A. DOLAN
JOSEPH J. GRANO, JR.
EDWARD M. KERSCHNER
JAMES P. MacGILVRAY
DONALD B. MARRON
ROBERT H. SILVER
MARK B. SUTTON
By
ROBERT E. HOLLEY
(As authorized signatory for
PaineWebber Incorporated
and Attorney-in-fact for the persons listed above)
R-6
<PAGE>
DEAN WITTER REYNOLDS INC.
DEPOSITOR
By the following persons, who constitute Powers of Attorney have been filed
a majority of under Form SE and the following 1933
the Board of Directors of Dean Witter Act File Numbers: 33-17085 and
Reynolds Inc.: 333-13039
RICHARD M. DeMARTINI
ROBERT J. DWYER
CHRISTINE A. EDWARDS
JAMES F. HIGGINS
MITCHELL M. MERIN
STEPHEN R. MILLER
RICHARD F. POWERS III
PHILIP J. PURCELL
THOMAS C. SCHNEIDER
WILLIAM B. SMITH
By
MICHAEL D. BROWNE
(As authorized signatory for
Dean Witter Reynolds Inc.
and Attorney-in-fact for the persons listed above)
R-7
<PAGE>
Exhibit 5.1
CONSENT OF INDEPENDENT ACCOUNTANTS
The Sponsors and Trustee of
Defined Asset Funds--Equity Investor Fund,
Index Series, S&P 500 MidCap Trust:
We consent to the use in this Post-Effective Amendment No. 7 to Registration
Statement No. 33-44844 of our opinion dated March 15, 1999 appearing in the
Prospectus, which is part of such Registration Statement, and to the reference
to us under the heading 'How The Fund Works--Auditors' in such Prospectus.
DELOITTE & TOUCHE LLP
New York, N.Y.
April 14, 1999
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER>1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 94,497,809
<INVESTMENTS-AT-VALUE> 112,494,633
<RECEIVABLES> 24,097,811
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 136,592,444
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,794,298
<TOTAL-LIABILITIES> 13,794,298
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 104,737,946
<SHARES-COMMON-STOCK> 71,666,875
<SHARES-COMMON-PRIOR> 55,743,317
<ACCUMULATED-NII-CURRENT> 63,376
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,996,824
<NET-ASSETS> 122,798,146
<DIVIDEND-INCOME> 1,301,738
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> (152,878)
<NET-INVESTMENT-INCOME> 1,148,860
<REALIZED-GAINS-CURRENT> 26,528,231
<APPREC-INCREASE-CURRENT> (9,055,120)
<NET-CHANGE-FROM-OPS> 18,621,971
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,159,944
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 17,276,624
<NUMBER-OF-SHARES-SOLD> 19,617,727
<NUMBER-OF-SHARES-REDEEMED> 3,694,169
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 28,656,227
<ACCUMULATED-NII-PRIOR> 50,554
<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
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
