DEFINED ASSET FUNDS--REGISTERED TRADEMARK--
------------------------------
----------------------
EQUITY INVESTOR FUND
INDEX SERIES
S&P 500 TRUST 2
S&P MIDCAP TRUST
(A UNIT INVESTMENT TRUST)
- MONTHLY INCOME
- DIVERSIFICATION
- REINVESTMENT OPTION
SPONSORS:
MERRILL LYNCH,
PIERCE, FENNER & SMITH
INCORPORATED -----------------------------------------------------
SALOMON SMITH BARNEY INC. The Securities and Exchange Commission has not
PRUDENTIAL SECURITIES approved or disapproved these Securities or passed
INCORPORATED upon the adequacy of this prospectus. Any
PAINEWEBBER INCORPORATED representation to the contrary is a criminal offense.
DEAN WITTER REYNOLDS INC. Prospectus dated April 21, 2000.
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Defined Asset Funds--Registered Trademark--
Defined Asset Funds-Registered Trademark- 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:
- A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
- Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
- Defined Portfolios: We choose the stocks or bonds in advance, so you know
what you're investing in.
- Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
- 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, 1999.
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CONTENTS
PAGE
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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.......................... 11
Public Distribution................ 12
Code of Ethics..................... 12
Year 2000 Issues................... 12
Taxes................................ 12
Supplemental Information............. 13
Financial Statements................. D-1
</TABLE>
2
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S&P 500 TRUST 2 RISK/RETURN SUMMARY
<TABLE>
<C> <S>
1. WHAT IS THE PORTFOLIO'S OBJECTIVE?
- 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?
- The Portfolio contains 500 common stocks
structured to mirror, as closely as
possible, the total return of the S&P 500
Index.
</TABLE>
<TABLE>
<S> <C>
-- 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.
</TABLE>
<TABLE>
<CAPTION>
- The Fund plans to hold the stocks in the
Portfolio for approximately 17 years. The
Fund will terminate by February 28, 2017.
<C> <S>
3. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE
FUND. THIS CAN HAPPEN FOR VARIOUS
REASONS, INCLUDING:
- Stock prices can be volatile.
- Dividend rates on the stocks or share
prices may decline during the life of the
Fund.
- The Fund may continue to hold the stocks
originally selected even though their
market value or yield may have changed.
</TABLE>
<TABLE>
<C> <S>
4. 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.
</TABLE>
<TABLE>
<C> <S>
5. 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.
</TABLE>
<TABLE>
$0.77
Trustee's Fee
$0.65
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
<CAPTION>
ESTIMATED ANNUAL OPERATING EXPENSES
AMOUNT
PER 1,000 UNITS
---------------
<C> <S> <C>
$1.03
Other Operating Expenses
-----
$2.45
TOTAL
</TABLE>
<TABLE>
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The Sponsors historically paid updating
expenses.
INVESTOR FEES
You will pay an up-front sales fee of
approximately 2.25%. The fee will be reduced
for quantity purchases, as follows:
</TABLE>
<TABLE>
<CAPTION>
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
-------------- ------------
<C> <S> <C>
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%
</TABLE>
<TABLE>
<C> <S>
6. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not
managed. However, stocks may be purchased
or sold to reflect changes in the Index.
The Sponsors monitor the portfolio and
may instruct the Trustee to sell
securities under certain limited
circumstances.
</TABLE>
3
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S&P 500 TRUST 2 RISK/RETURN SUMMARY (CONTINUED)
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7. HOW DO I BUY UNITS?
The minimum investment is $250.
You can buy units from the Sponsors.
UNIT PRICE PER 1,000 UNITS $3,149.26
(as of December 31, 1999)
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.
8. 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.
9. 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.
10. 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.
</TABLE>
4
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S&P 500 MIDCAP TRUST RISK/RETURN SUMMARY
<TABLE>
<C> <S>
1. WHAT IS THE PORTFOLIO'S OBJECTIVE?
- The objective of this Defined Fund is
designed to produce investment results
corresponding to the performance of the
Standard & Poor's MidCap 400 Stock Price
Composite Index.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
- The Portfolio contains 400 common stocks
structured to mirror, as closely as
possible, the total return of the S&P
MidCap 400 Index.
</TABLE>
<TABLE>
<S> <C>
-- 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.
</TABLE>
<TABLE>
<CAPTION>
- The Fund plans to hold the stocks in the
Portfolio for approximately 17 years. The
Fund will terminate by February 28, 2017.
<C> <S>
3. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE
FUND. THIS CAN HAPPEN FOR VARIOUS
REASONS, INCLUDING:
- Stock prices can be volatile.
- Dividend rates on the stocks or share
prices may decline during the life of the
Fund.
- The Fund may continue to hold the stocks
originally selected even though their
market value or yield may have changed.
</TABLE>
<TABLE>
<C> <S>
4. 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.
</TABLE>
<TABLE>
<C> <S>
5. 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.
</TABLE>
<TABLE>
$0.81
Trustee's Fee
$0.65
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
<CAPTION>
ESTIMATED ANNUAL OPERATING EXPENSES
AMOUNT
PER 1,000 UNITS
---------------
<C> <S> <C>
$0.82
Other Operating Expenses
-----
$2.28
TOTAL
</TABLE>
<TABLE>
<C> <S>
The Sponsors historically paid updating
expenses.
INVESTOR FEES
You will pay an up-front sales fee of
approximately 2.25%. The fee will be reduced
for quantity purchases, as follows:
</TABLE>
<TABLE>
<CAPTION>
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
-------------- ------------
<C> <S> <C>
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%
</TABLE>
<TABLE>
<C> <S>
6. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not
managed. However, stocks may be purchased
or sold to reflect changes in the Index.
The Sponsors monitor the portfolio and
may instruct the Trustee to sell
securities under certain limited
circumstances.
</TABLE>
<PAGE>
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S&P MIDCAP TRUST RISK/RETURN SUMMARY (CONTINUED)
<TABLE>
<C> <S>
7. HOW DO I BUY UNITS?
The minimum investment is $250.
You can buy units from the Sponsors.
UNIT PRICE PER 1,000 UNITS $1,627.10
(as of December 31, 1999)
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.
8. 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.
9. 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.
10. 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.
</TABLE>
6
<PAGE>
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:
- changes to the Portfolio because of sales of securities;
- changes in the Fund's expenses; and
- 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:
- - a notice from the Trustee if new equity securities are deposited in exchange
or substitution for equity securities originally deposited;
- - annual reports on Fund activity; and
- - 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 ADVISER 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:
- reducing the dividends-received deduction or
- 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:
- ADDING the value of the Portfolio securities, cash and any other Fund
assets;
- 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
- 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 25 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:
- if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
- 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
- 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
- - 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.
8
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- - Each unit receives an equal share of monthly distributions of dividend income
net of estimated expenses. Because dividends on the securities are not
received 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.
- - Subject to the reinvestment plan, your monthly income distribution will be
substantially equal to 1/12 of your share of the estimated annual income, net
of estimated expenses.
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:
- for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
- costs of actions taken to protect the Fund and other legal fees and
expenses;
- expenses for keeping the Fund's registration statement current; and
- Fund termination expenses and any governmental charges.
The Sponsors are currently reimbursed up to 70 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 may affect the
composition of the portfolio.
We decide whether to offer units for sale that we acquire in the secondary
market after reviewing:
- diversity of the Portfolio;
- size of the Fund relative to its original size;
- ratio of Fund expenses to income; and
- 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
9
<PAGE>
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.
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:
- to cure ambiguities;
- to correct or supplement any defective or inconsistent provision;
- to make any amendment required by any governmental agency; or
- 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:
- it fails to perform its duties and the Sponsors determine that its
replacement is in your best interest; or
- 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.
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:
- remove it and appoint a replacement Sponsor;
- liquidate the Fund; or
10
<PAGE>
- 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&P500 Trust 2 is The Chase Manhattan Bank, Unit Investment
Trust Department, 4 New York Plaza--6th Floor, New York, New York 10268. The
Trustee for the S&P MidCap Trust is The Bank of New York, 101 Barclay
Street--17W, New York, New York 10268. Each Trustee is supervised by the Federal
Deposit Insurance Corporation, 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.
11
<PAGE>
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
The Fund and the Agent for the Sponsors have each adopted a code of ethics
requiring reporting of personal securities transactions by its employees with
access to information on Fund transactions. Subject to certain conditions, the
codes permit employees to invest in Fund securities for their own accounts. The
codes are designed to prevent fraud, deception and misconduct against the Fund
and to provide reasonable standards of conduct. These codes are on file with the
Commission and you may obtain a copy by contacting the Commission at the address
listed on the back cover of this prospectus.
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"). To date we are not aware of any major operational difficulties
resulting from the computer system changes necessary to prepare for the Year
2000. However, there can be no assurance that the Year 2000 Problem will not
adversely affect the issuers of the bonds contained in a Portfolio. We cannot
predict whether any impact will be material to the Fund as a whole.
TAXES
The following summarizes some of the important income tax consequences of
holding Units. It assumes that you are not a dealer, financial institution,
insurance company or other investor with special circumstances or subject to
special rules. 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.
12
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Distributions to you that are treated as ordinary income will constitute
dividends for 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.
GAIN 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
otherwise. 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. You should not increase your basis in
your Units by deferred sales charges or organizational expenses.
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 your share of dividends received by the Portfolio.
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, 1999 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, 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, 1999 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 28, 2000
D - 1
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $136,373,127) (Note 1).................. $153,741,098
Dividends receivable............................ 95,623
Receivable from securties sold.................. 799,192
---------------
Total trust property.................. 154,635,913
LESS LIABILITIES:
Advance from trustee............................. $ 3,929,927
Accrued expenses................................. 79,358
Payable for securties purchased.................. 357,620 4,366,905
------------ --------------
NET ASSETS, REPRESENTED BY:
94,479,164 units of fractional undivided
interest outstanding (Note 3)................. 150,210,689
Undistributed net investment income............. 58,319
------------
$150,269,008
==============
UNIT VALUE ($150,269,008/94,479,164 units)........ $1.59050
==============
</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,.........
1999 1998 1997
------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income................................. $ 1,667,966 $ 1,301,738 $ 1,137,334
Trustee's fees and expenses..................... (129,130) (128,720) (128,718)
Sponsors' fees ................................. (53,067) (24,158) (2,449)
------------------------------------------
Net investment income........................... 1,485,769 1,148,860 1,006,167
------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold or
redeemed...................................... 19,529,579 26,528,231 8,040,846
Unrealized appreciation (depreciation)
of investments................................ (628,853) (9,055,120) 13,838,901
------------------------------------------
Net realized and unrealized gain on
investments................................... 18,900,726 17,473,111 21,879,747
------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................................. $20,386,495 $18,621,971 $22,885,914
==========================================
</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,.........
1999 1998 1997
------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income........................... $ 1,485,769 $ 1,148,860 $ 1,006,167
Realized gain on securities sold
or redeemed.................................. 19,529,579 26,528,231 8,040,846
Unrealized appreciation (depreciation)
of investments............................... (628,853) (9,055,120) 13,838,901
------------------------------------------
Net increase in net assets resulting
from operations.............................. 20,386,495 18,621,971 22,885,914
------------------------------------------
DISTRIBUTIONS TO HOLDERS (Note 2):
Income.......................................... (1,523,024) (1,159,944) (946,032)
Principal....................................... (27,778,501) (17,276,624) (7,083,369)
------------------------------------------
Total distributions............................. (29,301,525) (18,436,568) (8,029,401)
------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Issuance of 25,550,703, 19,617,727 and 8,266,165
additional units, respectively ............... 40,941,769 34,580,318 13,613,877
Redemptions of 2,738,414, 3,694,169 and
2,071,441 units, respectively ................ (4,555,877) (6,109,494) (3,299,904)
------------------------------------------
Net capital share transactions.................. 36,385,892 28,470,824 10,313,973
------------------------------------------
NET INCREASE IN NET ASSETS........................ 27,470,862 28,656,227 25,170,486
NET ASSETS AT BEGINNING OF YEAR................... 122,798,146 94,141,919 68,971,433
------------------------------------------
NET ASSETS AT END OF YEAR......................... $150,269,008 $122,798,146 $94,141,919
==========================================
PER UNIT:
Income distributions during year................ .01828 .01856 .01796
==========================================
Principal distributions during year............. .32793 .26442 .12801
==========================================
Net asset value at end of year.................. 1.59050 1.71346 1.68885
==========================================
TRUST UNITS OUTSTANDING AT END OF YEAR............ 94,479,164 71,666,875 55,743,317
==========================================
</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 94,479,164 units at Date of Deposit................. $135,599,609
Less sales charge........................................... 3,051,263
---------------
Net amount applicable to Holders............................ 132,548,346
Redemptions of units - net cost of 10,981,253 units
redeemed less redemption amounts.......................... (3,218,130)
Realized gain on securities sold or redeemed................ 63,942,215
Principal distributions..................................... (60,429,713)
Net unrealized appreciation of investments.................. 17,367,971
---------------
Net capital applicable to Holders........................... $150,210,689
===============
</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, 1999, net unrealized appreciation of investments, based
on cost for Federal income tax purposes, aggregated $17,367,971, of which
$36,033,391 related to appreciated securities and $18,665,420 related to
depreciated securities. The cost of investment securities for Federal
income tax purposes was $136,373,127 at December 31, 1999.
D - 6
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
--- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
1 Veritas Software 43,200 $ 1,488,223 $ 6,183,000 4.02 %
2 Siebel Sys. Inc. 32,200 696,413 2,704,800 1.76 %
3 Maxim Integrated Products 45,600 822,700 2,151,750 1.40 %
4 Biogen Inc. 25,100 799,456 2,120,950 1.38 %
5 Intuit Inc. 32,600 708,945 1,953,963 1.27 %
6 Medimmune Inc. 11,200 859,256 1,857,800 1.21 %
7 Linear Technology Corporation 25,700 890,234 1,839,156 1.20 %
8 Univision 17,000 1,061,821 1,737,188 1.13 %
9 Altera Corporation 33,300 713,447 1,650,431 1.07 %
10 Harley Davidson Inc. 25,200 833,591 1,614,375 1.05 %
11 Broadwing Inc. 36,100 747,095 1,331,188 0.87 %
12 Vitesse 25,600 691,019 1,342,400 0.87 %
13 Chiron Corporation 30,300 649,444 1,283,963 0.84 %
14 Telephone & Data 10,300 509,166 1,297,800 0.84 %
15 Marshall & Ilsley Corporation 17,800 835,507 1,118,063 0.73 %
16 Stryker Corporation 16,200 615,850 1,127,925 0.73 %
17 Tiffany & Co. 12,000 319,889 1,071,000 0.70 %
18 E Trade Group Inc. 40,800 1,042,024 1,065,900 0.69 %
19 JBL 14,600 708,418 1,065,800 0.69 %
20 Atmel Corporation 33,600 364,112 993,300 0.65 %
21 Cintas Corporation 18,500 864,766 982,813 0.64 %
22 Legato Systems 14,200 492,206 977,138 0.64 %
23 SCI Systems Inc. 12,000 488,395 986,250 0.64 %
24 Cadence Design Sys. Inc. 40,600 847,353 974,400 0.63 %
25 Qlogic Corporation 6,100 508,384 975,238 0.63 %
26 Sanmina Corporation 9,700 668,256 968,788 0.63 %
27 Checkfree Holdings 9,100 452,085 950,950 0.62 %
28 Comdisco Inc. 25,544 338,603 951,514 0.62 %
29 Symbol Technologies 14,787 354,828 939,899 0.61 %
30 Millennium Pharmacies 7,400 554,300 902,800 0.59 %
31 Conford EFS, Inc. 34,350 867,597 884,513 0.58 %
32 Washington Post 1,600 755,235 889,400 0.58 %
33 Electronic Arts 10,500 448,190 882,000 0.57 %
34 Forest Laboratories Inc. 13,900 475,275 853,981 0.56 %
</TABLE>
D - 7
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
35 American Power Conversion Corp. 32,100 $ 470,135 $ 846,638 0.55 %
36 Hispanic Broadcasting 9,100 599,569 839,191 0.55 %
37 Zions Bancorp 14,300 738,387 846,381 0.55 %
38 First Security Corporation 32,630 589,894 833,085 0.54 %
39 DST 10,600 725,493 808,913 0.53 %
40 Novellus Systems Inc. 6,500 459,750 796,453 0.52 %
41 CVG 25,500 509,326 784,125 0.51 %
42 Fiserv Inc. 20,450 480,433 783,491 0.51 %
43 Synopsys Inc. 11,800 565,567 787,650 0.51 %
44 Starbucks Coffee 30,400 642,993 737,200 0.48 %
45 Noble Drilling Corporation 21,900 410,485 717,225 0.47 %
46 Rational Software Co. 14,600 511,569 717,225 0.47 %
47 Weatherford Intl. Inc. 18,021 654,606 719,714 0.47 %
48 Nabors Inds. Inc. 23,100 470,245 714,656 0.46 %
49 Westwood One, Inc. 9,200 449,695 699,200 0.45 %
50 Calpine Corporation 10,500 452,741 672,000 0.44 %
51 Charter One Financial Inc. 35,351 918,152 676,088 0.44 %
52 Montana Power Company 18,400 355,139 663,550 0.43 %
53 Genzyme Corporation 14,000 481,907 630,000 0.41 %
54 Park Pl Entmn. Corporation 50,900 651,895 636,250 0.41 %
55 AMBAC Financial Group 11,700 542,634 610,594 0.40 %
56 First Tennessee National Corp. 21,700 559,379 618,450 0.40 %
57 NCR Corporation 16,100 586,718 609,788 0.40 %
58 Network Associates 23,250 935,668 620,484 0.40 %
59 Tyson Foods 38,300 734,782 622,375 0.40 %
60 Cypress Semiconducter 18,200 258,706 589,225 0.38 %
61 Microchip Technology 8,500 249,068 581,719 0.38 %
62 Reliastar 14,800 645,578 579,975 0.38 %
63 CDW Computer Centers 7,250 469,659 570,031 0.37 %
64 Health Management 42,250 638,888 565,094 0.37 %
65 Symantec Corporation 9,700 217,588 568,663 0.37 %
66 Jones Apparel Group 20,406 504,022 553,511 0.36 %
67 Visx Inc. 10,700 683,088 553,725 0.36 %
68 Waters Corporation 10,400 635,016 551,200 0.36 %
</TABLE>
D - 8
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
69 American Standard 11,800 $ 507,169 $ 541,325 0.35 %
70 Mylan Labs 21,550 524,487 542,791 0.35 %
71 Sepracor Inc. 5,500 474,030 545,531 0.35 %
72 Ensco International 22,900 360,706 523,838 0.34 %
73 Keyspan Energy Corporation 22,350 693,972 518,241 0.34 %
74 Readers Digest Association 17,800 635,456 520,650 0.34 %
75 Allamerica Financial 9,000 516,373 500,625 0.33 %
76 New England Electric 9,900 423,691 512,325 0.33 %
77 Sterling Commerce Inc. 14,711 507,071 501,093 0.33 %
78 Sungard Data Systems Inc. 21,400 641,070 508,250 0.33 %
79 Allegheny Energy Inc. 18,400 556,399 495,650 0.32 %
80 B J Svcs. Co. 11,800 265,666 493,388 0.32 %
81 Dollar Tree Stores 10,300 362,094 498,906 0.32 %
82 Edward A.G. Inc. 15,387 429,533 493,346 0.32 %
83 Hannaford Bros. Co. 7,000 279,086 485,188 0.32 %
84 Hormel (Geo. A.) & Co. 12,100 385,429 491,563 0.32 %
85 Consolidated Paper Inc. 15,100 401,300 480,369 0.31 %
86 Devon Energy 14,300 567,830 470,113 0.31 %
87 Family Dlr. Stores Inc. 28,800 398,959 469,800 0.31 %
88 Global Marine Inc. 29,100 367,708 483,788 0.31 %
89 Manpower Inc. 12,700 388,263 477,838 0.31 %
90 Abercrombie & Fitch 17,200 486,051 459,025 0.30 %
91 Bowater Inc. 8,600 378,288 467,088 0.30 %
92 DPL Inc. 26,500 532,317 458,781 0.30 %
93 Potomac Electric Power Company 19,800 499,679 454,163 0.30 %
94 Scana Corporation 17,300 470,002 464,938 0.30 %
95 Unitrin Inc. 12,100 478,250 455,263 0.30 %
96 BJ'S Club 12,300 242,249 448,950 0.29 %
97 Integrated Device Tech. 15,200 209,163 440,800 0.29 %
98 International Speed 8,900 551,535 448,338 0.29 %
99 Ivax Corporation 17,600 280,820 453,200 0.29 %
100 Northeast Utilities 21,900 411,635 450,319 0.29 %
101 Sterling Software 14,100 374,642 444,150 0.29 %
102 Viad Corporation 15,800 354,179 440,425 0.29 %
</TABLE>
D - 9
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
103 Vishay Intertechnology 14,076 $ 273,440 $ 445,154 0.29 %
104 Avnet, Inc. 7,000 351,051 423,500 0.28 %
105 Compass Bancshares 19,000 553,510 423,938 0.28 %
106 DQE 12,600 485,595 436,275 0.28 %
107 Dial Corporation 17,600 373,398 427,900 0.28 %
108 Greenpoint Finance 18,000 577,761 428,625 0.28 %
109 Murphy Oil Corporation 7,500 326,187 430,313 0.28 %
110 Robert Half International 15,000 543,489 428,438 0.28 %
111 Sybron International Corporation 17,300 404,505 427,094 0.28 %
112 Williams-Sonoma 9,300 432,392 427,800 0.28 %
113 Express Scripts Inc. 6,400 321,782 409,600 0.27 %
114 National Commerce Bancorp 18,100 435,275 410,644 0.27 %
115 Quantum Corporation 27,500 432,738 415,938 0.27 %
116 SPX Corporation 5,200 297,399 420,225 0.27 %
117 Smith International Inc. 8,200 285,073 407,438 0.27 %
118 Arrow Electronics Inc. 16,000 332,987 406,000 0.26 %
119 Chris Craft Industries Inc. 5,604 252,394 404,189 0.26 %
120 Energy East Corporation 19,100 381,124 397,519 0.26 %
121 Gilead Sciences Inc. 7,300 383,027 395,113 0.26 %
122 Illinova Corporation 11,700 309,387 406,575 0.26 %
123 Nstar 10,000 419,262 405,000 0.26 %
124 Teco Energy 21,600 528,302 400,950 0.26 %
125 ACS 8,200 358,846 377,200 0.25 %
126 AH Bello Corp. 19,800 401,959 377,438 0.25 %
127 Informix Corporation 33,600 391,285 384,300 0.25 %
128 Keane Inc. 12,000 551,377 381,000 0.25 %
129 Kinder Morgan Inc. 18,750 522,829 378,516 0.25 %
130 Litton Industries Inc. 7,600 394,095 379,050 0.25 %
131 Minimed Inc. 5,200 442,008 380,900 0.25 %
132 North Fork Bancor 21,750 519,041 380,625 0.25 %
133 Nova 12,300 379,818 388,219 0.25 %
134 Pacificare Health Sys-B Inc. 7,256 532,852 384,568 0.25 %
135 Sonoco Products Co. 17,015 451,445 387,091 0.25 %
136 USG Corp. 8,200 400,891 386,425 0.25 %
</TABLE>
D - 10
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
137 Wisconsin Energy 19,700 $ 546,456 $ 379,225 0.25 %
138 Associated Banc. Corporation 10,675 399,766 365,619 0.24 %
139 The Finova Group, Inc. 10,200 494,472 362,100 0.24 %
140 LG & E Energy 21,600 545,480 376,650 0.24 %
141 Mercantile Bankshare Corporation 11,500 331,897 367,281 0.24 %
142 Nisource Inc. 20,900 495,156 373,588 0.24 %
143 Premier Parks 13,000 494,665 375,375 0.24 %
144 Saks Incorporated 24,160 739,572 375,990 0.24 %
145 Alliant Communications 13,100 410,558 360,250 0.23 %
146 American Eagle Outfit 7,800 350,213 351,000 0.23 %
147 First Virginia Banks Inc. 8,250 340,901 354,750 0.23 %
148 Harris Corporation 13,300 255,430 354,944 0.23 %
149 Lear Corporation 11,200 538,634 358,400 0.23 %
150 McCormick & Co. Inc. 11,800 339,138 351,050 0.23 %
151 The PMI Group Inc. 7,400 274,553 361,213 0.23 %
152 Polycom Inc. 5,500 339,475 350,281 0.23 %
153 Acxiom Corporation 14,300 281,495 343,200 0.22 %
154 Adtran, Inc. 6,600 257,507 339,488 0.22 %
155 American Water Works 16,200 436,194 344,250 0.22 %
156 Firstmerit Corporation 15,000 398,625 345,000 0.22 %
157 Georgia Pacific Timber Group 13,800 329,606 339,825 0.22 %
158 Hillenbrand Industries Inc. 10,900 526,451 345,394 0.22 %
159 ICN Pharmacueticals 13,100 493,772 331,594 0.22 %
160 Legg Mason Inc. 9,500 306,204 344,375 0.22 %
161 MCN Energy Group Inc. 14,300 320,939 339,625 0.22 %
162 Midamerican Energy Co. 10,000 323,469 336,875 0.22 %
163 Protective Life Corporation 10,800 393,500 343,575 0.22 %
164 Shaw Industries Inc. 22,300 390,633 344,256 0.22 %
165 TCF Financial Corporation 13,800 405,218 343,275 0.22 %
166 Tidewater Inc. 9,300 307,295 334,800 0.22 %
167 AK Steel Holding Corporation 17,200 338,745 324,650 0.21 %
168 Martin Marietta Materials 7,800 337,889 319,800 0.21 %
169 Outback Steakhouse 12,550 291,658 325,516 0.21 %
170 RJ Reynolds Tobacco 18,300 580,966 322,538 0.21 %
</TABLE>
D - 11
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
171 Ultramar Diamond Shamrock Corp. 14,462 $ 420,902 $ 328,107 0.21 %
172 Whitman Corporation 23,500 412,841 315,781 0.21 %
173 IMC Global Inc. 19,100 569,670 312,763 0.20 %
174 International Game Technology 15,000 313,078 304,688 0.20 %
175 Lincare Hldgs. 9,000 318,250 312,188 0.20 %
176 Mandalay 15,100 348,922 303,888 0.20 %
177 Miller Herman Inc. 13,300 234,394 305,900 0.20 %
178 National Fuel Gas Co. 6,500 269,613 302,250 0.20 %
179 Pentair Inc. 8,000 283,526 308,000 0.20 %
180 Southdown Incorporated 6,000 352,588 309,750 0.20 %
181 Storage Technology 16,700 446,795 307,906 0.20 %
182 Sykes Enterprises 7,100 194,356 311,513 0.20 %
183 Utilicorp United 15,450 344,925 300,309 0.20 %
184 CCB Financial Corporation 6,800 348,606 296,225 0.19 %
185 Hubbell Inc. Class B 10,840 403,524 295,390 0.19 %
186 Old Republic International 21,050 482,118 286,806 0.19 %
187 Reynolds & Reynolds Company 12,900 225,901 290,250 0.19 %
188 Sotheby's Holdings Inc. 9,800 220,350 294,000 0.19 %
189 Astoria Financial Corporation 9,100 430,866 276,981 0.18 %
190 CNF Transportation Inc. 8,100 267,241 279,450 0.18 %
191 Diebold Inc. 11,468 329,971 269,498 0.18 %
192 Dime Bancorp Inc. 18,500 454,303 279,813 0.18 %
193 Fastenal Company 6,300 263,653 283,106 0.18 %
194 Gatx Corporation 8,200 262,503 276,750 0.18 %
195 Hibernia Bancorp 26,700 397,915 283,688 0.18 %
196 IBP Inc. 15,400 326,792 277,200 0.18 %
197 Lubizol Corporation 9,100 271,600 280,963 0.18 %
198 Puget Sound Energy, Inc. 14,100 364,585 273,188 0.18 %
199 Ross Stores 15,100 346,163 270,856 0.18 %
200 Solutia Inc. 18,400 407,452 284,050 0.18 %
201 Sovereign Bancorp 36,600 503,087 272,784 0.18 %
202 U.S. Foodservice 16,900 333,291 283,075 0.18 %
203 American Financial Group Hldg. 9,700 344,230 255,838 0.17 %
204 Apollo Group Inc. 12,900 381,217 258,806 0.17 %
</TABLE>
D - 12
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
205 Brinker Intl. Inc. 10,925 $ 236,054 $ 262,200 0.17 %
206 CK Witco 19,879 447,136 265,882 0.17 %
207 Cambridge Tech. Partn. 10,100 215,306 265,125 0.17 %
208 Conectiv 15,475 335,438 260,173 0.17 %
209 Dean Foods Co. 6,500 258,513 258,375 0.17 %
210 Flowers Industries Inc. 16,750 284,557 266,953 0.17 %
211 Mohawk Industries Inc. 10,100 299,001 266,388 0.17 %
212 Provident Financial 7,300 316,569 261,888 0.17 %
213 Wilmington Trust 5,400 259,792 260,550 0.17 %
214 A.C. Nielson Corporation 9,700 209,288 238,863 0.16 %
215 Barnes & Noble 11,600 339,730 239,250 0.16 %
216 Beckman Instrs. Inc. 4,800 214,739 244,200 0.16 %
217 City National Corporation 7,600 193,531 250,325 0.16 %
218 Federal-Mogul Corporation 12,300 581,246 247,538 0.16 %
219 Harte-Hanks 11,500 305,604 250,125 0.16 %
220 Ipalco Enterprises 14,300 271,382 243,994 0.16 %
221 Lyondell Petrochemical 19,600 418,883 249,900 0.16 %
222 OGE Energy Corporation 13,000 302,213 247,000 0.16 %
223 Pacific Century Financial Corp. 13,400 274,813 250,413 0.16 %
224 Payless Shoesource 5,200 260,423 244,400 0.16 %
225 Santa Fe Snyder 30,800 264,949 246,400 0.16 %
226 Cabot Corporation 11,000 260,893 224,125 0.15 %
227 Callaway Golf Co. 12,700 246,641 224,631 0.15 %
228 Kansas City Power & Light Co. 10,300 276,296 227,244 0.15 %
229 Lee Enterprises Inc. 7,400 186,792 236,338 0.15 %
230 Media General Inc. 4,400 181,646 228,800 0.15 %
231 Modis Professional 16,000 414,696 228,000 0.15 %
232 Neiman Marcus Group 8,200 222,281 229,088 0.15 %
233 Sierra Pacific Resource 13,100 322,313 226,794 0.15 %
234 Tech Data Corporation 8,700 335,488 235,988 0.15 %
235 Borders Group, Inc. 13,000 373,611 208,813 0.14 %
236 Clayton Homes Inc. 23,313 275,424 214,188 0.14 %
237 Dentsply Intl. Inc. 8,800 206,721 207,900 0.14 %
238 Devry Inc. 11,600 234,392 216,050 0.14 %
</TABLE>
D - 13
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
239 First Health Group 8,200 $ 188,774 $ 220,375 0.14 %
240 Harsco Corporation 6,700 221,032 212,725 0.14 %
241 Hon Inds. Inc. 10,100 217,806 221,569 0.14 %
242 Houghton Mifflin Company 5,200 166,743 219,375 0.14 %
243 Interstate Bakeries 11,700 307,987 212,063 0.14 %
244 Lancaster Colony Corporation 6,665 196,021 220,778 0.14 %
245 Meritor Automotive 11,500 254,696 222,813 0.14 %
246 Minnesota Power And Light Co. 12,300 229,530 208,331 0.14 %
247 Ocean Energy Inc. 27,800 468,312 215,450 0.14 %
248 Rayonier Inc. 4,600 184,498 222,238 0.14 %
249 Sensormatic Electronics Corp. 12,650 211,702 220,584 0.14 %
250 Washington Gas Light 7,700 184,022 211,750 0.14 %
251 BLYTH 8,100 254,445 198,956 0.13 %
252 Cordant 6,100 187,828 201,300 0.13 %
253 Foundation Health Systems Inc. 20,400 433,444 202,725 0.13 %
254 Gartner Group Inc. 14,700 317,531 203,044 0.13 %
255 Helmerich & Payne Inc. 9,000 191,520 196,313 0.13 %
256 Imation Corporation 6,100 132,209 204,731 0.13 %
257 Noble Affiliates Inc. 9,500 297,460 203,656 0.13 %
258 Questar Corporation 13,700 246,762 205,500 0.13 %
259 Suiza Foods Corporation 5,200 240,177 206,050 0.13 %
260 Teleflex 6,300 204,717 197,269 0.13 %
261 Airborne Freight Corporation 8,100 207,291 178,200 0.12 %
262 Bergen Brunswig Corporation 22,350 403,538 185,784 0.12 %
263 Borg-Warner Automotive, Inc. 4,500 234,215 182,250 0.12 %
264 Carlisle Companies Inc. 5,000 177,297 180,000 0.12 %
265 Claires Stores Inc. 8,575 140,388 191,866 0.12 %
266 Donaldson Co. Inc. 7,700 128,053 185,281 0.12 %
267 Furniture Brands Intl. 8,200 214,208 180,400 0.12 %
268 Hanover Compressor Co. 4,800 157,488 181,200 0.12 %
269 Omnicare, Inc. 15,200 438,518 182,400 0.12 %
270 RPM, Inc. 17,975 257,128 183,120 0.12 %
271 Swift Transportation 10,700 236,475 188,588 0.12 %
272 Trigon Healthcare 6,500 228,163 191,750 0.12 %
</TABLE>
D - 14
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
273 Trinity Industries 6,550 $ 227,795 $ 186,266 0.12 %
274 Valero Refining & Marketing Co. 9,300 206,087 184,838 0.12 %
275 Webster Financial 7,600 201,413 179,075 0.12 %
276 York International 6,500 271,782 178,344 0.12 %
277 AGL Resources 9,500 186,111 161,500 0.11 %
278 Alexander & Baldwin Inc. 7,200 176,070 164,250 0.11 %
279 Church & Dwight Co. 6,500 104,949 173,469 0.11 %
280 Comsat Corporation 8,800 236,328 174,900 0.11 %
281 Cytec Ind. Inc. 7,000 239,886 161,875 0.11 %
282 Everest Reinsurance Holdings 7,800 278,111 174,038 0.11 %
283 HSB Group, Inc. 4,850 188,343 163,991 0.11 %
284 Idacorp Inc. Hldg. 6,300 197,822 168,919 0.11 %
285 Kennametal Inc. 5,000 160,324 168,125 0.11 %
286 Keysone Fin. Inc. 8,100 253,947 170,606 0.11 %
287 Lands' End Inc. 5,000 138,140 173,750 0.11 %
288 Oxford Health Plans 13,600 511,617 172,550 0.11 %
289 Scholastic Corporation 2,800 148,747 174,125 0.11 %
290 Universal Foods 8,400 172,003 171,150 0.11 %
291 Westamerica Bancorp 6,300 223,675 176,006 0.11 %
292 Alaska Air Group, Inc. 4,400 186,716 154,550 0.10 %
293 Albemarle Corporation 7,800 153,277 149,663 0.10 %
294 Apria Healthcare Group 8,700 162,118 156,056 0.10 %
295 CMP Group Inc. Holding 5,400 107,981 148,838 0.10 %
296 Dexter Corporation 3,800 116,491 151,050 0.10 %
297 Dole Food Inc. 9,300 322,897 151,125 0.10 %
298 Georgia Gulf Corporation 5,200 125,645 158,275 0.10 %
299 Hawaiian Electric Ind. Inc. 5,400 204,530 155,925 0.10 %
300 Investment Technology 5,200 199,239 149,500 0.10 %
301 Kelly Services Inc. 6,000 186,579 150,750 0.10 %
302 Newport News Shipbuilding 5,500 125,980 151,250 0.10 %
303 Ohio Casualty Corporation 10,000 178,838 160,625 0.10 %
304 Olin Corporation 7,500 157,249 148,594 0.10 %
305 Olsten Corporation 13,550 228,169 153,284 0.10 %
306 Pioneer Natural Resources Co. 16,700 380,437 149,256 0.10 %
</TABLE>
D - 15
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
307 Pittston Brink's Group 6,800 $ 199,179 $ 149,600 0.10 %
308 Policy Management Systems Corp. 5,900 207,236 150,819 0.10 %
309 Tecumseh Product 3,300 174,288 155,719 0.10 %
310 Transaction Sys. Architects Inc. 5,400 212,988 151,200 0.10 %
311 Westpoint Stevens 8,900 286,638 155,750 0.10 %
312 Agco Corporation 9,900 218,580 133,031 0.09 %
313 Carter Wallace Inc. 7,500 157,763 134,531 0.09 %
314 Cirrus Logic Inc. 10,900 163,206 145,106 0.09 %
315 Horace Mann Educator 6,800 175,589 133,450 0.09 %
316 Jacobs Engr. Group Inc. 4,300 136,851 139,750 0.09 %
317 Kaydon Corporation 5,100 149,133 136,744 0.09 %
318 Mark IV Industries Inc. 7,805 143,847 138,051 0.09 %
319 Mentor Graphics Corporation 10,700 125,776 141,106 0.09 %
320 Minerals Technologies 3,500 148,137 140,219 0.09 %
321 Papa John's International 5,100 222,131 132,919 0.09 %
322 Pennzoil-Quaker State Co. 12,973 201,289 132,162 0.09 %
323 UCAR International 7,500 253,239 133,594 0.09 %
324 Arvin Industries Inc. 4,300 144,264 122,013 0.08 %
325 CLECO Corporation 3,800 112,009 121,838 0.08 %
326 Federal Signal Corporation 7,700 175,612 123,681 0.08 %
327 Ferro Corporation 5,875 130,415 129,250 0.08 %
328 Fuller (H.B.) Co. 2,300 109,675 128,656 0.08 %
329 GTech Holdings Corporation 5,800 170,399 127,600 0.08 %
330 Longview Fibre Co. 8,600 133,166 122,550 0.08 %
331 Modine Manufacturing Co. 4,900 144,533 122,500 0.08 %
332 NCO Group Inc. 4,200 202,925 126,525 0.08 %
333 Nordson Corporation 2,700 145,361 130,275 0.08 %
334 Ruddick Corporation 7,700 116,901 119,350 0.08 %
335 Steris Corporation 11,300 316,158 116,531 0.08 %
336 Superior Industries 4,400 124,200 117,975 0.08 %
337 Unifi, Inc. 9,850 251,610 121,278 0.08 %
338 Universal Corporation 5,200 163,936 118,625 0.08 %
339 Wallace Computer 7,000 170,038 116,375 0.08 %
340 Airgas Inc. 11,700 195,641 111,150 0.07 %
</TABLE>
D - 16
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
341 Ametek 5,400 $ 104,533 $ 102,938 0.07 %
342 Bob Evans Farms Inc. 6,600 132,498 101,888 0.07 %
343 Carpenter Technology 3,700 142,829 101,519 0.07 %
344 Covance Inc. 9,700 220,245 104,881 0.07 %
345 Flowserve Corporation 6,250 158,582 106,250 0.07 %
346 Glatfelter Ph & Company 7,000 112,459 101,938 0.07 %
347 Micro Warehouse, Inc. 6,000 186,620 111,000 0.07 %
348 Officemax Inc. 18,900 246,156 103,950 0.07 %
349 Pss World Medical Inc. 11,800 222,775 111,363 0.07 %
350 Precision Castparts Corporation 4,100 189,633 107,625 0.07 %
351 Public Service Co. 6,800 121,604 110,500 0.07 %
352 Quorem Health Group 11,800 236,968 109,888 0.07 %
353 Sylvan Learning System 8,500 230,819 110,500 0.07 %
354 Varco International 10,900 105,883 111,044 0.07 %
355 Warnaco Group, Inc. 9,300 265,145 114,506 0.07 %
356 Wausau-Mosinee Paper Corporation 8,588 160,237 100,372 0.07 %
357 Wellman, Inc. 5,700 108,695 106,163 0.07 %
358 Wisconsin Central Transport 8,500 206,594 114,219 0.07 %
359 Bandag Inc. 3,700 161,624 92,500 0.06 %
360 Banta Corporation 4,400 111,864 99,275 0.06 %
361 CBRL Group 9,750 247,858 94,605 0.06 %
362 Chesapeake Corp. 2,900 97,415 88,450 0.06 %
363 Hanna (M.A.) Co. 8,200 129,841 89,688 0.06 %
364 Indiana Energy Inc. 4,933 97,562 87,561 0.06 %
365 Ogden Corporation 8,200 180,470 97,888 0.06 %
366 Perrigo Co. 12,200 201,424 97,600 0.06 %
367 Sequa Corporation 1,700 90,971 91,694 0.06 %
368 JM Smucker Co. 4,800 117,228 93,600 0.06 %
369 Standard Register Co. 4,600 131,476 89,125 0.06 %
370 Stewart Enterprises, Inc. 18,100 357,504 85,975 0.06 %
371 Total Rental Care 13,500 368,319 90,281 0.06 %
372 Albany Intl. Corporation 5,113 96,960 79,256 0.05 %
373 Beverly Enterprises 17,100 175,593 74,813 0.05 %
374 Black Hills Inc. 3,600 75,050 79,875 0.05 %
</TABLE>
D - 17
<PAGE>
DEFINED ASSET FUNDS - EQUITY INVESTOR FUND
INDEX SERIES, S&P MIDCAP TRUST
PORFOLIO
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Percentage
Port- of Total
folio Market
No. Common Stocks Shares Cost (1) Value (1) Value
- --- ------------- ------ -------- -------- -----
<S> <C> <C> <C> <C> <C>
375 Buffets Inc. 7,000 $ 81,624 $ 70,000 0.05 %
376 Comp-USA Inc. 15,500 335,938 79,438 0.05 %
377 Dreyers Grand Ice Cream Inc. 4,600 72,144 78,200 0.05 %
378 Granite Construction Inc. 4,550 89,853 83,891 0.05 %
379 Hunt JB Trans. Svcs. Inc. 5,900 130,063 81,678 0.05 %
380 Navigant Consulting 6,900 276,705 75,038 0.05 %
381 Overseas Shipholding Group Inc. 5,600 104,659 82,950 0.05 %
382 Rollins, Inc. 5,050 104,899 75,750 0.05 %
383 Ryerson Tull 4,100 96,724 79,694 0.05 %
384 Schulman A Inc. 5,150 108,444 84,009 0.05 %
385 Structural Dynamic 6,000 116,598 76,500 0.05 %
386 Acuson 4,500 77,214 56,531 0.04 %
387 Arnold Inds. 4,100 66,683 57,656 0.04 %
388 Cleveland Cliffs Inc. 1,800 75,430 56,025 0.04 %
389 Ethyl Corporation 13,900 114,949 54,731 0.04 %
390 Stewart & Stevenson 4,700 111,064 55,666 0.04 %
391 International Multifoods Corp. 3,100 75,497 41,075 0.03 %
392 Lance Inc. 5,000 98,190 50,000 0.03 %
393 Lone Star Steakhouse 5,500 118,042 49,070 0.03 %
394 Maxxam Inc. 1,200 58,484 51,450 0.03 %
395 NCH Corporation 900 55,077 40,106 0.03 %
396 Vlasic Food 7,600 159,368 43,225 0.03 %
397 Burlington Inds. Inc. 8,800 93,171 35,200 0.02 %
398 Heilg-Meyers Co. 9,975 134,787 27,431 0.02 %
399 Magnetek Inc. 4,000 58,783 30,750 0.02 %
400 Oregon Steel Mills Inc. 4,300 72,711 34,093 0.02 %
--------- ------------- ------------ ------
4,979,112 $136,373,127 $153,741,098 100 %
========= ============= ============ ======
</TABLE>
NOTE:
(1) See Notes to Financial Statements.
D - 18
<PAGE>
DEFINED ASSET FUNDS--REGISTERED TRADEMARK--
<TABLE>
<S> <C>
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:
- Securities Act of 1933 (file no.
33-44844) and
- 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--4/00
</TABLE>
