File No. 333-22653 CIK #910923
Securities and Exchange Commission
Washington, D. C. 20549
Post-Effective
Amendment No. 1
to
Form S-6
For Registration under the Securities Act of 1933
of Securities of Unit Investment Trusts Registered
on Form N-8B-2
Ranson Unit Investment Trusts Series 55
Name and executive office address of Depositor:
Ranson & Associates, Inc.
250 North Rock Road, Suite 150
Wichita, Kansas 67206
Name and complete address of agent for service:
Robin Pinkerton
Ranson & Associates, Inc.
250 North Rock Road, Suite 150
Wichita, Kansas 67206
( X ) Check box if it is proposed that this filing will
become effective at 2:00 p.m. on April 30, 1998
pursuant to paragraph (b) of Rule 485.
<PAGE>
RANSON UNIT INVESTMENT TRUSTS, SERIES 55
S&P 500 Index Trust, Series 2 (the "Trust" or the "S&P 500 Trust") was formed
with the investment objective of obtaining capital appreciation through
investment in a portfolio of equity securities of companies which comprise the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500 Index"). By
investing in substantially all of the common stocks, in substantially the same
proportions, which comprise the S&P 500 Index, the Trust seeks to produce
investment results that generally correspond to the price and yield performance
of the equity securities represented by the S&P 500 Index over the term of the
Trust. See "The Trust Portfolios." The Trust is not sponsored by or affiliated
with Standard and Poor's. There is no assurance that the Trust will achieve its
objective.
Units of the Trust are not deposits or obligations of, or guaranteed by, any
bank and the Units are not federally insured or otherwise protected by the
Federal Deposit Insurance Corporation and involve investment risk including loss
of principal.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
This Prospectus consists of two parts.
This Prospectus Part One may not be distributed unless accompanied by Part Two.
The investor is advised to read and retain both parts of this Prospectus for
future reference.
THIS PROSPECTUS PART ONE IS DATED AS OF
THE DATE OF PROSPECTUS PART TWO.
<PAGE>
SUMMARY
THE TRUST. S&P 500 Index Trust, Series 2 (the "Trust") is a unit investment
trust included in Ranson Unit Investment Trusts, Series 55 (the "Fund"), an
investment company registered under the Investment Company Act of 1940. The
Trust consists of common stocks issued by companies selected in accordance with
the selection and weightings of stocks established by the related stock index.*
The Sponsor intends to maintain a Trust portfolio which duplicates, to the
extent practicable, the weightings of stocks which comprise the related stock
index. The value of all portfolio Securities and, therefore, the value of the
Units will fluctuate in value depending on the full range of economic and market
influences affecting corporate profitability, the financial condition of issuers
and the prices of equity securities in general and the Securities in particular.
Capital appreciation is, of course, dependent upon several factors including,
among other factors, the financial condition of the issuers of the Securities
(see "The Trust Portfolio").
The S&P 500 Trust was formed with the investment objective of obtaining capital
appreciation over the life of such Trust through investment in a portfolio of
equity securities of substantially all of the companies which comprise the S&P
500 Index. An indexing strategy attempts to track the performance of a specific
market index. As part of an overall investment strategy, indexing may provide
additional growth potential in an otherwise conservative portfolio and blend as
a companion investment to hedge an aggressive equity strategy. There can be no
assurance that the Trust's objective will be met because it may be impracticable
for the Trust to duplicate or maintain precisely the relative weightings of the
common stocks which comprise the related stock index or to purchase all of such
stocks. Additionally, an investment in Units includes payment of sales charges,
fees and expenses which are not considered in the total return of the related
stock index.
Additional Units may be issued at any time by depositing in the Trust additional
Securities, contracts to purchase additional Securities together with cash or
irrevocable letters of credit, or cash with instructions to purchase additional
Securities. As additional Units are issued by the Trust as a result of the
deposit of additional Securities, the aggregate value of the Securities in such
Trust will be increased and the fractional undivided interest in such Trust
represented by each Unit will be decreased. The Sponsor may continue to make
additional deposits of Securities into the Trust from time to time following the
Initial Date of Deposit, provided that such additional deposits will be in
amounts which will maintain, as closely as practicable, the proportionate
relationship among each Security in the related stock index. Thus, although
additional Units will be issued, each Unit will continue to represent
approximately the same weighting of the then current components of the related
stock index. Precise duplication of the relationship among the Securities in
the Trust may not be achieved because it may be economically impracticable as a
result of certain economic factors or procedural policies of the Trust. If the
Sponsor deposits cash, existing and new investors may experience a dilution of
their investments and a reduction in their anticipated income because of
fluctuations in the prices of the Securities between the time of the cash
deposit and the purchase of the Securities and because the Trust will pay the
associated brokerage fees. To minimize this effect, the Trust will attempt to
purchase the Securities as close to the Evaluation Time or as close to the
evaluation prices as possible. See "The Trust Fund."
Each Unit of the Trust represents that undivided interest in such Trust
indicated under "Essential Information" in Part Two. To the extent that any
Units are redeemed by the Trustee or additional Units are issued as a result of
additional Securities being deposited by the Sponsor, the fractional undivided
interest in the Trust
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* "S&P(Registered Trademark)", "Standard & Poor's(Registered Trademark)", "S&P
500" and "Standard & Poor's 500" are trademarks of The McGraw-Hill Companies,
Inc. and have been licensed for use by the Sponsor.
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<PAGE>
represented by each unredeemed Unit will increase or decrease accordingly,
although the actual interest in such Trust represented by such fraction will
remain unchanged. Units will remain outstanding until redeemed upon tender to
the Trustee by Unitholders, which may include the Sponsor, or until the
termination of the Trust Agreement.
PUBLIC OFFERING PRICE. The Public Offering Price per Unit is based on the
aggregate underlying value of the Securities, plus or minus a pro rata portion
of the cash, if any, in the Income and Capital Accounts held or owned by the
Trust, plus the sales charge indicated under "Public Offering of Units-Public
Offering Price." The sales charge is reduced on a graduated scale for certain
sales. The minimum purchase is $1,000.
DISTRIBUTIONS OF INCOME AND CAPITAL. Dividends, if any, received by the Trust
will be distributed quarterly and any funds in the Capital Account will be
distributed annually. See "Unitholders-Distributions to Unitholders."
REINVESTMENT. Each Unitholder may elect to have distributions of income,
capital gains and/or capital on their Units automatically invested into
additional Units of the Trust without a sales charge. In addition, all
Unitholders may elect to have such distributions automatically reinvested into
shares of certain mutual funds registered in such Unitholder's state of
residence at net asset value. Such distributions will be reinvested without
charge to the participant on each applicable Distribution Date. See
"Unitholders-Distribution Reinvestment." A current prospectus for the
reinvestment fund selected, if any, will be furnished to any investor who
desires additional information with respect to reinvestment.
MARKET FOR UNITS. While under no obligation to do so, the Sponsor intends to,
and certain dealers may, maintain a market for the Units and offer to repurchase
such Units at prices subject to change at any time which are based on the
current underlying value of the Securities. If the supply of Units exceeds
demand or if some other business reason warrants it, the Sponsor and/or the
dealers may either discontinue all purchases of Units or discontinue purchases
of Units at such prices. A Unitholder may also dispose of Units through
redemption at the Redemption Price on the date of tender to the Trustee. See
"Redemption-Computation of Redemption Price."
TERMINATION. No later than the date specified under the Mandatory Termination
Date in "Essential Information" in Part Two Securities will begin to be sold in
connection with the termination of the Trust and it is expected that all
Securities will be sold within a reasonable amount of time after the Mandatory
Termination Date. The Sponsor will determine the manner, timing and execution
of the sale of the underlying Securities. At termination, Unitholders will
receive a cash distribution within a reasonable time after the Trust is
terminated. See "Unitholders-Distributions to Unitholders" and "Administration
of the Trust-Amendment and Termination."
RISK FACTORS. An investment in the Trust should be made with an understanding
of the risks associated therewith, including the possible deterioration of
either the financial condition of the issuers or the general condition of the
stock market. Additionally, it is anticipated that the identity and weighting
of the stocks in each stock index will change from time to time and the adverse
financial condition of a company will not result directly in its elimination
from the portfolio unless the company is removed from the related stock index.
For risk considerations related to the Trust, see "Risk Factors."
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THE TRUST FUND
Ranson Unit Investment Trusts, Series 55 (the "Fund") consists of separate
underlying unit investment trusts including S&P 500 Index Trust, Series 2 (the
"Trust"). The Fund was created under the laws of the State of New York pursuant
to a trust indenture (the "Trust Agreement") dated the date of this prospectus
(the "Initial Date of Deposit") between Ranson & Associates, Inc. (the
"Sponsor") and The Bank of New York (the "Trustee").*
The S&P 500 Trust contains common stocks issued by substantially all of the
companies which comprise the S&P 500 Index. As used herein, the term
"Securities" means the common stocks (including contracts for the purchase
thereof) initially deposited in the Trust and described in the related portfolio
and any additional common stocks acquired and held by the Trust pursuant to the
provisions of the Trust Agreement.
The Sponsor intends to maintain a Trust portfolio which duplicates, to the
extent practicable, the weightings of stocks which comprise the related stock
index. In connection with any deposit of Securities, purchase and sale
transactions will be effected in accordance with computer program output showing
which Securities are under- or over-represented in the Trust portfolio. Neither
the Sponsor nor the Trustee will exercise any investment discretion in
connection with such transactions. Precise duplication of the relationship
among the Securities in the related stock index may not be achieved because it
may be economically impracticable or impossible to acquire very small numbers of
shares of certain stocks and because of other procedural policies of the Trust,
but correlation between the performance of the related stock index and the Trust
portfolio is expected to be between .97 and .99.
By investing in substantially all of the common stocks, in substantially the
same proportions, which comprise the related stock index, the Trust seeks to
produce investment results that generally correspond to the price and yield
performance of the equity securities represented by such index over the term of
the Trust. Due to various factors discussed below, there can be no assurance
that this objective will be met. An investment in Units of the Trust should be
made with an understanding that the Trust includes payments of sales charges,
fees and expenses which may not be considered in public statements of the total
return of the related stock index.
Subsequent to the Initial Date of Deposit, the Sponsor may deposit additional
Securities in the Trust, contracts to purchase additional Securities along with
cash (or a bank letter of credit in lieu of cash) to pay for such contracted
Securities or cash (including a letter of credit) with instructions to purchase
additional Securities, maintaining, as closely as practicable the same
proportionate relationship among the Securities in the portfolio as reflected in
the related stock index. Thus, although additional Units will be issued, each
Unit will continue to represent approximately a weighting of the then current
components of the related stock index at any such deposit. Precise duplication
of the relationship among the Securities in the Trust may not be achieved
because it may be economically impracticable as a result of certain economic
factors and procedural policies of the Trust such as (1) price movements of the
various Securities will not duplicate one another, (2) the Sponsor's current
intention is to purchase shares of the Securities in round lot quantities only,
(3) reinvestment of excess proceeds not needed to meet redemptions of Units may
not be sufficient to acquire equal round lots of all the Securities in the Trust
and (4) reinvestment of proceeds received from Securities which are no longer
components of the related stock index might not result in the purchase of an
equal number of shares in any
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* Reference is made to the Trust Agreement and any statement contained herein
is qualified in its entirety by the provisions of the Trust Agreement.
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replacement Security. If the Sponsor deposits cash, existing and new investors
may experience a dilution of their investments and a reduction in their
anticipated income because of fluctuations in the prices of the Securities
between the time of the cash deposit and the purchase of the Securities and
because the Trust will pay the associated brokerage fees. To minimize this
effect, the Trust will attempt to purchase the Securities as close to the
Evaluation Time or as close to the evaluation prices as possible.
The Trust consists of (a) the Securities listed under the related "Portfolio" in
Part Two as may continue to be held from time to time in the Trust (b) any
additional Securities acquired and held by such Trust pursuant to the provisions
of the Trust Agreement and (c) any cash held in the Income and Capital Accounts
of such Trust. Neither the Sponsor nor the Trustee shall be liable in any way
for any failure in any of the Securities. However, should any contract for the
purchase of any of the Securities initially deposited hereunder fail, the
Sponsor will, unless substantially all of the moneys held in the Trust to cover
such purchase are reinvested in substitute Securities in accordance with the
Trust Agreement, refund the cash and sales charge attributable to such failed
contract to all Unitholders on the next distribution date.
THE TRUST PORTFOLIO
The Trust portfolio will consist of as many of the S&P 500 Index stocks as is
feasible in order to achieve the Trust's objective of attempting to provide
investment results that duplicate substantially the total return of the S&P 500
Index. The Trust is expected to be invested in no less than 95% of the stocks
comprising the related index. Although it may be impracticable for the Trust to
own certain of such stocks at any time, the Sponsor expects to maintain a
correlation between the performance of the Trust portfolio and that of the
related index of between .97 and .99. Adjustments to the Trust portfolio will
be made on an ongoing basis in accordance with the computer program output to
match the weightings of the Securities as closely as is feasible with their
weightings in the related index as such Trust invests in new Securities in
connection with the creation of additional Units, as companies are dropped from
or added to such index or as Securities are sold to meet redemptions. These
adjustments will be made on the business day following the relevant transaction
in accordance with computer program output showing which of the Securities are
under- or over-represented in the Trust portfolio. Adjustments may also be made
from time to time to maintain the appropriate correlation between the Trust and
the related index. The proceeds from any sale will be invested in those
Securities which the computer program indicates are most under-represented in
the portfolio. See "Investment Supervision."
Due to changes in the composition of the S&P 500 Index, adjustments to the Trust
portfolio may be made from time to time. It is anticipated that most of such
changes in the S&P 500 Index will occur as a result of merger or acquisition
activity. In such cases, the Trust, as a shareholder of an issuer which is the
object of such merger or acquisition activity, will presumably receive various
offers from potential acquirers of the issuer. The Trustee is not permitted to
accept any such offers until such time as the issuer has been removed from the
related index. Since, in most cases, an issuer is removed from an index only
after the consummation of a merger or acquisition, it is anticipated that the
Trust will generally acquire, in exchange for the stock of the deleted issuer,
the consideration that is being offered to shareholders of that issuer who have
not tendered their shares prior to that time. Any cash received as
consideration in such transactions will be reinvested in the most under-
represented Securities as determined by the computer program output. Any
securities received as consideration which are not included in the related index
will be sold as soon as practicable and will also be reinvested in the most
under-represented Securities as determined by the computer program output.
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In attempting to duplicate the proportionate relationships represented by the
index, the Sponsor does not anticipate purchasing or selling stock in quantities
of less than round lots (100 shares). In addition, certain Securities may not
be available in the quantities specified by the computer program. For these
reasons, among others, precise duplication of the proportionate relationships in
the related index may not be possible but will continue to be the goal of the
Trust in connection with acquisitions or dispositions of Securities. See
"Investment Supervision." As the holder of the Securities, the Trustee will
have the right to vote all of the voting stocks in the Trust portfolio and will
vote such stocks in accordance with the instructions of the Sponsor.
Investors should note that the Trust is not sponsored, endorsed or promoted by
or affiliated with Standard & Poor's and Standard & Poor's make no
representation, express or implied, to the Trust or Unitholders regarding the
advisability of investing in an index investment or unit investment trusts
generally or in the Trust specifically or the ability of the indexes to track
general stock market performance.
Although there can be no assurance that such Securities will appreciate in value
over the life of the Trust, over time stock investments have generally out-
performed most other asset classes. However, it should be remembered that
common stocks carry greater risks, including the risk that the value of an
investment can decrease (see "Risk Factors-Certain Investment Considerations"),
and past performance is no guarantee of future results.
THE S&P 500 INDEX
The S&P 500 Index is composed of 500 selected common stocks, most of which are
listed on the New York Stock Exchange. This well-known index, originally
consisting of 233 stocks in 1923, was expanded to 500 stocks in 1957 and was
restructured in 1976 to a composite consisting of industrial, utility, financial
and transportation market sectors. It contains a variety of companies with
diverse capitalization, market-value weighted to represent the overall market.
The index represents over 70% of U.S. stock market capitalization. The index is
often used as a benchmark of general market activity and is currently one of the
U.S. Commerce Department's leading economic indicators. As of March 31, 1998,
the S&P 500 Index was comprised of the following industry sectors: industrials
(75.8%), Utilities (7.4%), Financials (14.8%) and Transportation (2.0%). As of
March 31, 1998, the companies in the S&P 500 index were listed on the following
stock exchanges in the amounts indicated: New York Stock Exchange-460 companies
(92%), Nasdaq National Market-37 companies (7%) and American Stock Exchange-3
companies (1%). Additionally, the S&P 500 Index represents approximately 74% of
the aggregate market value of common stocks traded on the New York Stock
Exchange. At present, the mean market capitalization of the companies in the
S&P 500 Index is approximately $17.2 billion. As of March 31, 1998, the S&P 500
Index had a total market value of $8.626 trillion.
The following table depicts the Year-End Index Value for the S&P 500 Index for
the period shown. Investors should note that the table represents past
performance of the S&P 500 Index and not the past or future performance of the
S&P 500 Trust (which includes certain fees and expenses). Past performance is,
of course,
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no guarantee of future results. Stock prices fluctuated widely during the
period and were higher at the end than at the beginning. The results shown
should not be considered as a representation of the income yield or capital gain
or loss which may be generated by the S&P 500 Index in the future.
<TABLE>
<CAPTION>
Year-End
Index Value
Year-End Change in Average Dividends
Year-End Index Value Index Yield Reinvested
Year Index Value* 1960=100 For Year For Year* 1960=100**
- ---- ------------ ----------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
1960 58.11 100.00 - % 3.47% 100.00
1961 71.55 123.13 23.13 2.98 126.79
1962 63.10 108.59 -11.81 3.37 115.71
1963 75.02 129.10 18.89 3.17 141.93
1964 84.75 145.84 12.97 3.01 165.09
1965 92.43 159.06 9.06 3.00 185.48
1966 80.33 138.24 -13.09 3.40 165.11
1967 96.47 166.01 20.09 3.20 204.54
1968 103.86 178.73 7.66 3.07 227.00
1969 92.06 158.42 -11.36 3.24 207.89
1970 92.15 158.58 0.10 3.83 216.06
1971 102.09 110.79 10.79 3.33 247.52
1972 118.05 128.11 15.63 3.09 294.30
1973 97.55 105.86 -17.37 2.86 250.83
1974 68.56 74.40 -29.72 3.69 184.64
1975 90.19 97.87 31.55 5.37 253.25
1976 107.46 116.61 19.15 4.49 312.94
1977 95.10 103.20 -11.50 4.35 289.72
1978 96.11 104.30 1.06 5.33 308.20
1979 107.94 117.14 12.31 5.88 364.29
1980 135.76 147.33 25.77 5.74 481.86
1981 122.55 132.99 - 9.73 4.88 457.72
1982 140.64 152.62 14.76 5.61 555.84
1983 164.93 178.98 17.27 5.04 680.24
1984 167.24 181.49 1.40 4.49 721.73
1985 211.28 229.28 26.33 4.72 949.59
1986 242.17 262.80 14.62 3.92 1,125.83
1987 247.08 278.97 2.03 3.64 1,183.25
1988 277.72 301.38 12.40 3.79 1,379.78
1989 353.40 383.51 27.25 3.98 1,617.04
1990 330.22 358.35 - 6.56 3.42 1,760.71
1991 417.09 452.62 26.31 3.70 2,297.20
1992 435.71 749.79 4.46 2.97 2,472.25
1993 466.45 802.70 7.06 2.78 2,721.45
1994 459.27 790.53 - 1.54 2.42 2,757.25
1995 615.93 1,060.18 34.11 2.24 3,780.58
1996 740.74 1,274.97 20.26 1.90 4,632.91
1997 970.43 1,670.21 31.00 2.09 6,157.14
<FN>
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* Source: Standard & Poor's. The Year-End Index Value for 1959 was $59.89.
Yields are obtained by dividing the aggregate cash dividends by the
aggregate market value of the stocks in the index at the beginning of the
period, assuming no reinvestment of dividends.
** Assumes that cash distributions on the securities which comprise the S&P
500 Index are treated as reinvested in the S&P 500 Index as of the end of
each month following the payment of the dividend. Because the S&P 500 Trust
is sold to the public at net asset value plus the applicable sales charge
and the expenses of such Trust are deducted before making distributions to
Unitholders, investment in such Trust would have resulted in investment
performance to Unitholders somewhat reduced from that reflected in the above
table. In
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addition certain Unitholders may not elect to purchase additional Units
pursuant to the S&P 500 Trust's reinvestment plan, and to that extent cash
distributions representing dividends on the index stocks may not be
reinvested in other index stocks.
</TABLE>
The weightings of stocks in the S&P 500 Index are primarily based on each
stock's relative total market value; that is, its market price per share times
the number of shares outstanding. The S&P 500 Index currently represents over
70% of the total market capitalization of stocks traded in the United States.
Stocks are generally selected for the portfolio in the order of their weightings
in the S&P 500 Index, beginning with the heaviest-weighted stocks. It is
anticipated that at the end of the Initial Adjustment Period, the percentage of
the S&P 500 Trust's assets invested in each stock will be approximately the same
as the percentage it represents in the S&P 500 Index.
The S&P 500 Trust has entered into a license agreement with Standard & Poor's
(the "License Agreement"), under which such Trust is granted licenses to use the
trademark and tradename "S&P 500" and other trademarks and tradenames, to the
extent the Sponsor deems appropriate and desirable under federal and state
securities laws to indicate the source of the index as a basis for determining
the composition of such Trust's portfolio. As consideration for the grant of
the license, the S&P 500 Trust will pay to Standard & Poor's an annual fee equal
to .02% of the average net asset value of such Trust (or, if greater, $10,000).
The License Agreement permits the S&P 500 Trust to substitute another index for
the S&P 500 Index in the event that Standard & Poor's ceases to compile and
publish that index. In addition, if the index ceases to be compiled or made
available or the anticipated correlation between the S&P 500 Trust and the index
is not maintained, the Sponsor may direct that such Trust continue to be
operated using the S&P 500 Index as it existed on the last date on which it was
available or may direct that the Trust Agreement be terminated (see
"Administration of the Trusts-Amendment and Termination").
Neither the S&P 500 Trust nor the Unitholders are entitled to any rights
whatsoever under the foregoing licensing arrangements or to use any of the
covered trademarks or to use the S&P 500 Index, except as specifically described
herein or as may be specified in the Trust Agreement.
The S&P 500 Trust is not sponsored, endorsed, sold or promoted by Standard &
Poor's ("S&P"). S&P makes no representation or warranty, express or implied, to
the owners of such Trust or any member of the public regarding the advisability
of investing in securities generally or in such Trust particularly or the
ability of the S&P 500 Index to track general stock market performance. S&P's
only relationship to the Licensee is the licensing of certain trademarks and
trade names of S&P and of the S&P 500 Index which is determined, composed and
calculated by S&P without regard to the Licensee or the S&P 500 Trust. S&P has
no obligation to take the needs of the Licensee or the owners of the S&P 500
Trust into consideration in determining, composing or calculating the S&P 500
Index. S&P is not responsible for and has not participated in the determination
of the prices and amount of the S&P 500 Trust or the timing of the issuance or
sale of such Trust or in the determination or calculation of the equation by
which such Trust is to be converted into cash. S&P has no obligation or
liability in connection with the administration, marketing or trading of the S&P
500 Trust.
S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index
or any data included therein and S&P shall have no liability for any errors,
omissions, or interruptions therein. S&P makes no warranty, express or implied,
as to results to be obtained by the Sponsor, the S&P 500 Trust, any person or
any entity from the use of the S&P 500 Index or any data included therein. S&P
makes no express or implied warranties, and expressly disclaims all warranties
of merchantability or fitness for a particular purpose or use,
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with respect to the S&P 500 Index or any data included therein. Without
limiting any of the foregoing, in no event shall S&P have any liability for any
special, punitive, indirect, or consequential damages (including lost profits),
even if notified of the possibility of such damages. "Standard &
Poor's(Registered Trademark)", "S&P(Registered Trademark)", "S&P 500(Registered
Trademark)", "Standard & Poor's 500", and "500" are trademarks of The McGraw-
Hill Companies, Inc. and have been licensed for use by the S&P 500 Trust. The
S&P 500 Trust is not sponsored, endorsed, sold or promoted by Standard & Poor's
and Standard & Poor's makes no representation regarding the advisability of
investing in such Trust.
RISK FACTORS
General. An investment in Units should be made with an understanding of the
risks inherent in an investment in equity securities, including the risk that
the financial condition of issuers of the Securities may become impaired or that
the general condition of the stock market may worsen (both of which may
contribute directly to a decrease in the value of the Securities and thus, in
the value of the Units) or the risk that holders of common stock have a right to
receive payments from the issuers of those stocks that is generally inferior to
that of creditors of, or holders of debt obligations issued by, the issuers and
that the rights of holders of common stock generally rank inferior to the rights
of holders of preferred stock. Common stocks are especially susceptible to
general stock market movements and to volatile increases and decreases in value
as market confidence in and perceptions of the issuers change. These
perceptions are based on unpredictable factors including expectations regarding
government, economic, monetary and fiscal policies, inflation and interest
rates, economic expansion or contraction, and global or regional political,
economic or banking crises.
Holders of common stock incur more risk than the holders of preferred stocks and
debt obligations because common stockholders, as owners of the entity, have
generally inferior rights to receive payments from the issuer in comparison with
the rights of creditors of, or holders of debt obligations or preferred stock
issued by the issuer. Holders of common stock of the type held by the Trust
have a right to receive dividends only when and if, and in the amounts, declared
by the issuer's Board of Directors and to participate in amounts available for
distribution by the issuer only after all other claims on the issuer have been
paid or provided for. By contrast, holders of preferred stock have the right to
receive dividends at a fixed rate when and as declared by the issuer's Board of
Directors, normally on a cumulative basis, but do not participate in other
amounts available for distribution by the issuing corporation. Cumulative
preferred stock dividends must be paid before common stock dividends and any
cumulative preferred stock dividend omitted is added to future dividends payable
to the holders of cumulative preferred stock. Preferred stocks are also
entitled to rights on liquidation which are senior to those of common stocks.
Moreover, common stocks do not represent an obligation of the issuer and
therefore do not offer any assurance of income or provide the degree of
protection of capital debt securities. Indeed, the issuance of debt securities
or even preferred stock will create prior claims for payment of principal,
interest, liquidation preferences and dividends which could adversely affect the
ability and inclination of the issuer to declare or pay dividends on its common
stock or the rights of holders of common stock with respect to assets of the
issuer upon liquidation or bankruptcy. Further, unlike debt securities which
typically have a stated principal amount payable at maturity (whose value,
however, will be subject to market fluctuations prior thereto), common stocks
have neither a fixed principal amount nor a maturity and have values which are
subject to market fluctuations for as long as the stocks remain outstanding.
The value of the Securities in the portfolios thus may be expected to fluctuate
over the entire life of the Trust to values higher or lower than those
prevailing on the Initial Date of Deposit.
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<PAGE>
Whether or not the Securities are listed on a national securities exchange, the
principal trading market for the Securities may be in the over-the-counter
market. As a result, the existence of a liquid trading market for the
Securities may depend on whether dealers will make a market in the Securities.
There can be no assurance that a market will be made for any of the Securities,
that any market for the Securities will be maintained or of the liquidity of the
Securities in any markets made. In addition, the Trust is restricted under the
Investment Company Act of 1940 from selling Securities to the Sponsor. The
price at which the Securities may be sold to meet redemptions and the value of
the Trust will be adversely affected if trading markets for the Securities are
limited or absent.
The Trust Agreement authorizes the Sponsor to increase the size of the Trust
and the number of Units thereof by the deposit of additional Securities, or cash
(including a letter of credit) with instructions to purchase additional
Securities, in such Trust and the issuance of a corresponding number of
additional Units. If the Sponsor deposits cash, existing and new investors may
experience a dilution of their investments and a reduction in their anticipated
income because of fluctuations in the prices of the Securities between the time
of the cash deposit and the purchase of the Securities and because the Trust
will pay the associated brokerage fees. To minimize this effect, the Trust will
attempt to purchase the Securities as close to the Evaluation Time or as close
to the evaluation prices as possible.
Litigation and Legislation. From time to time Congress considers proposals to
reduce the rate of the dividends-received deduction. Enactment into law of a
proposal to reduce the rate would adversely affect the after-tax return to
investors who can take advantage of the deduction. Unitholders are urged to
consult their own tax advisers. Further, at any time after the Initial Date of
Deposit, litigation may be initiated on a variety of grounds, or legislation may
be enacted with respect to the Securities or the issuers of the Securities.
There can be no assurance that future litigation or legislation will not have a
material adverse effect on the Trust or will not impair the ability of issuers
to achieve their business goals.
FEDERAL TAX STATUS
The Trust has elected and intends to qualify on a continuing basis for special
federal income tax treatment as a "regulated investment company" under the
Internal Revenue Code of 1986, as amended (the "Code"). If the Trust so
qualifies and timely distributes to Unitholders 90% or more of its taxable
income (without regard to its net capital gain, i. e., the excess of its net
long-term capital gain over its net short-term capital loss), it will not be
subject to federal income tax on the portion of its taxable income (including
any net capital gain) that it distributes to Unitholders. In addition, to the
extent the Trust timely distributes to Unitholders at least 98% of its taxable
income (including any net capital gain), it will not be subject to the 4% excise
tax on certain undistributed income of "regulated investment companies."
Because the Trust intends to timely distribute its taxable income (including any
net capital gain), it is anticipated that the Trust will not be subject to
federal income tax or the excise tax. Although all or a portion of the Trust's
taxable income (including any net capital gain) for the taxable year may be
distributed to Unitholders shortly after the end of the calendar year, such a
distribution will be treated for federal income tax purposes as having been
received by Unitholders during the calendar year just ended.
Distributions to Unitholders of the Trust's taxable income (other than its net
capital gain) will be taxable as ordinary income to Unitholders. To the extent
that distributions to a Unitholder in any year exceed the Trust's current and
accumulated earnings and profits, they will be treated as a return of capital
and will reduce the
10
<PAGE>
Unitholder's basis in his Units and, to the extent that they exceed his basis,
will be treated as a gain from the sale of his Units as discussed below. It
should be noted that certain legislative proposals have been made which could
affect the calculation of basis for Unitholders holding securities that are
substantially identical to the Trust's Securities. Unitholders should consult
their own tax advisors with regard to the calculation of basis.
Distributions of the Trust's net capital gain which are properly designated as
capital gain dividends by the Trust will be taxable to Unitholders as long-term
capital gain, regardless of the length of time the Units have been held by a
Unitholder. However, if a Unitholder receives a long-term capital gain dividend
(or is allocated a portion of the Trust's undistributed long-term capital gain)
and sells his Units at a loss prior to holding them for six months, such losses
will be characterized as long-term capital loss to the extent of such long-term
capital gain received as a dividend or allocable to a Unitholder. A Unitholder
may recognize a taxable gain or loss if the Unitholder sells or redeems his
Units. Any gain or loss arising from (or treated as arising from) the sale or
redemption of Units will generally be a capital gain or loss, except in the case
of a dealer or a financial institution. For taxpayers other than corporations,
net capital gain (which is defined as net long-term capital gain over net short-
term capital loss for the taxable year) is subject to a maximum marginal stated
tax rate of either 28% or 20%, depending upon the holding periods of the capital
assets. Capital loss is long-term if the holding period for the asset is more
than one year, and is short-term if the holding period for the asset is one year
or less. Generally, capital gains realized from assets held for more than one
year but not more than 18 months are taxed at a maximum marginal stated tax rate
of 28% and capital gains realized from assets (with certain exclusions) held for
more than 18 months are taxed at a maximum marginal stated tax rate of 20% (10%
in the case of certain taxpayers in the lowest tax bracket). Further, capital
gains realized from assets held for one year or less are taxed at the same rates
as ordinary income. Legislation is currently pending that provides the
appropriate methodology that should be applied in netting the realized capital
gains and losses. Such legislation is proposed to be effective retroactively
for tax years ending after May 6, 1997. The Internal Revenue Service has
released preliminary guidance which provides that, in general, pass-through
entities may designate their capital gain dividends as either a 20% rate gain
distribution or a 28% rate gain distribution, depending on the nature of the
gain received by the pass-through entity. Unitholders should consult their own
tax advisers as to the tax rate applicable to capital gain dividends.
In addition, please note that capital gains may be recharacterized as ordinary
income in the case of certain financial transactions that are "conversion
transactions" effective for transactions entered into after April 30, 1993.
Unitholders and prospective investors should consult with their tax advisers
regarding the potential effect of this provision on their investment in Units.
The 1997 Act includes provisions that treat certain transactions designed to
reduce or eliminate risk of loss and opportunities for gain (e.g., short sales,
offsetting notional principal contracts, futures or forward contracts or similar
transactions) as constructive sales for purposes of recognition of gain (but not
loss) and for purposes of determining the holding period.
Distributions which are taxable as ordinary income to Unitholders will
constitute dividends for federal income tax purposes. When Units are held by
corporate Unitholders, Trust distributions may qualify for the 70% dividends-
received deduction, subject to the limitations otherwise applicable to the
availability of the deduction, to the extent the distribution is attributable to
dividends received by the Trust from United States corporations (other than real
estate investment trusts) and is designated by such Trust as being eligible for
such deduction. To the extent dividends received by the Trust are attributable
to foreign corporations, a corporation that owns Units will not be entitled to
the dividends-received deduction with respect to its pro rata portion of such
dividends, since the dividends-received deduction is generally available only
with respect to dividends
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<PAGE>
paid by domestic corporations. The Trust will provide each Unitholder with
information annually concerning what part of Trust distributions are eligible
for the dividends-received deduction.
Under the Code, certain miscellaneous itemized deductions, such as investment
expenses, tax return preparation fees and employee business expenses, will be
deductible by individuals only to the extent they exceed 2% of adjusted gross
income. Miscellaneous itemized deductions subject to this limitation under
present law do not include expenses incurred by the Trust so long as the Units
are held by or for 500 or more persons at all times during the taxable year or
another exception is met. In the event the Units are held by fewer than 500
persons, additional taxable income may be realized by the individual (and other
noncorporate) Unitholders in excess of the distributions received from the
Trust.
Distributions reinvested into additional Units of the Trust will be taxed to a
Unitholder in the manner described above (i. e., as ordinary income, long-term
capital gain or as a return of capital).
The federal tax status of each year's distributions will be reported to
Unitholders and to the Internal Revenue Service. Each Unitholder will be
requested to provide the Unitholder's taxpayer identification number to the
Trustee and to certify that the Unitholder has not been notified that payments
to the Unitholder are subject to back- up withholding. If the proper taxpayer
identification number and appropriate certification are not provided when
requested, distributions by the Trust to such Unitholder (including amounts
received upon the redemption of Units) will be subject to back-up withholding.
A Unitholder who is a foreign investor (i.e., an investor other than a United
States citizen or resident or a United States corporation, partnership, estate
or trust) should be aware that, generally, subject to applicable tax treaties,
distributions from the Trust which constitute dividends for Federal income tax
purposes (other than dividends which the Trust designates as capital gain
dividends) will be subject to United States income taxes, including withholding
taxes. However, distributions received by a foreign investor from the Trust
that are designated by the Trust as capital gain dividends should not be subject
to United States Federal income taxes, including withholding taxes, if all of
the following conditions are met (i) the capital gain dividend is not
effectively connected with the conduct by the foreign investor of a trade or
business within the United States, (ii) the foreign investor (if an individual)
is not present in the United States for 183 days or more during his or her
taxable year, and (iii) the foreign investor provides all certification which
may be required of his status (foreign investors may contact the Sponsor to
obtain a Form W-8 which must be filed with the Trustee and refiled every three
calendar years thereafter). Foreign investors should consult their tax advisers
with respect to United States tax consequences of ownership of Units. Units in
the Trust and Trust distributions may also be subject to state and local
taxation and Unitholders should consult their tax advisers in this regard.
The foregoing discussion relates only to the federal income tax status of the
Trust and to the tax treatment of distributions by the Trust to United States
Unitholders. Distributions by the Trust will generally be subject to United
States income taxation and withholding in the case of Units held by non-resident
alien individuals, foreign corporations or other non-United States persons.
Such persons should consult their tax advisers.
Unitholders desiring to purchase Units for tax-deferred plans and IRAs should
consult their broker-dealers for details on establishing such accounts. Units
may also be purchased by persons who already have self-directed plans
established.
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<PAGE>
PUBLIC OFFERING OF UNITS
PUBLIC OFFERING PRICE. Units are offered at the Public Offering Price (which is
based on the aggregate underlying value of the Securities and includes a sales
charge of 4.9% of the Public Offering Price which charge is equivalent to 5.152%
of the net amount invested) plus a pro rata share of any accumulated dividends
in the Income Account of the Trust. Such underlying value shall also include
the proportionate share of any undistributed cash held in the Capital Account of
the Trust.
The sales charge per Unit in both the primary and secondary market will be
reduced pursuant to the following graduated schedule:
<TABLE>
<CAPTION>
PERCENT OF PERCENT OF NET
NUMBER OF UNITS* OFFERING PRICE AMOUNT INVESTED
- ---------------- -------------- ---------------
<S> <C> <C>
Less than 10,000 4.9% 5.152%
10,000-24,999 4.5 4.712
25,000-49,999 4.3 4.493
50,000-99,999 3.5 3.627
100,000 or more 3.0 3.093
<FN>
- --------------------
* The breakpoint sales charges are also applied on a dollar basis utilizing a
breakpoint equivalent in the above table of $10 per Unit and will be applied
on whichever basis is more favorable to the investor.
</TABLE>
An investor may aggregate purchases of Units for purposes of qualifying for the
volume purchase discounts listed above. The reduced sales charge structure will
apply on all purchases of Units by the same person on any one day from any one
dealer. Additionally, Units purchased in the name of the spouse of a purchaser
or in the name of a child of such purchaser under 21 years of age will be
deemed, for purposes of calculating the applicable sales charge, to be
additional purchases by the purchaser. The reduced sales charges will also be
applicable to a trustee or other fiduciary purchasing securities for a single
trust estate or single fiduciary account.
Units may be purchased in the primary or secondary market at the Public Offering
Price less the concession the Sponsor typically allows to dealers and other
selling agents for purchases (see "Public Distribution of Units" below) by
officers, directors and employees of the Sponsor and its affiliates and
registered representatives of selling firms and by investors who purchase Units
through registered investment advisers, certified financial planners or
registered broker-dealers who in each case either charge periodic fees for
financial planning, investment advisory or asset management services, or provide
such services in connection with the establishment of an investment account for
which a comprehensive "wrap fee" charge is imposed.
Unitholders of any series of the Trust or any series of Defined Growth Strategy
5 and Defined Growth Strategy 10 may utilize their redemption or termination
proceeds to purchase Units of the Trust subject to a reduced sales charge of 3%
of the Public Offering Price (3.093% of the net amount invested).
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<PAGE>
Unitholders of unaffiliated unit investment trusts having an investment strategy
similar to the investment strategy of the Trust may utilize proceeds received
upon termination or upon redemption immediately preceding termination of such
unaffiliated trust to purchase Units of the Trust subject to a reduced sales
charge of 3% of the Public Offering Price (3.093% of the net amount invested).
As indicated above, the Public Offering Price of the Units was established by
dividing the aggregate underlying value of the Securities by the number of Units
outstanding. Such underlying value shall include the proportionate share of any
cash held in the Capital Account. Such price determination as of the opening of
business on the Initial Date of Deposit was made on the basis of an evaluation
of the Securities in a Trust prepared by the Trustee. After the opening of
business on the Initial Date of Deposit, the Evaluator will appraise or cause to
be appraised daily the value of the underlying Securities as of the Evaluation
Time on days the New York Stock Exchange is open and will adjust the Public
Offering Price of the Units commensurate with such valuation. Such Public
Offering Price will be effective for all orders received at or prior to the
close of trading on the New York Stock Exchange on each such day. Orders
received by the Trustee, Sponsor or any dealer for purchases, sales or
redemptions after that time, or on a day when the New York Stock Exchange is
closed, will be held until the next determination of price.
The value of the Securities is determined on each business day by the Evaluator
based on the closing sale prices on a national securities exchange or The Nasdaq
National Market or by taking into account the same factors referred to under
"Redemption-Computation of Redemption Price."
The minimum purchase in both the primary and secondary markets is 100 Units.
PUBLIC DISTRIBUTION OF UNITS. Units which remain unsold or which may be
acquired in the secondary market (see "Market for Units") may be offered at the
Public Offering Price determined in the manner provided above.
The Sponsor intends to qualify Units for sale in a number of states. Units will
be sold through dealers who are members of the National Association of
Securities Dealers, Inc. and through others. Sales may be made to or through
dealers at prices which represent discounts from the Public Offering Price as
set forth below. Certain commercial banks are making Units available to their
customers on an agency basis. A portion of the sales charge paid by their
customers is retained by or remitted to the banks in the amounts shown below.
Under the Glass-Steagall Act, banks are prohibited from underwriting Trust
Units; however, the Glass-Steagall Act does permit certain agency transactions
and the banking regulators have indicated that these particular agency
transactions are permitted under such Act. In addition, state securities laws
on this issue may differ from the interpretations of federal law expressed
herein and banks and financial institutions may be required to register as
dealers pursuant to state law. The Sponsor reserves the right to change the
discounts set forth below from time to time. In addition to such discounts, the
Sponsor may, from time to time, pay or allow an additional discount, in the form
of cash or other compensation, to dealers employing registered representatives
who sell, during a specified time period, a minimum dollar amount of Units and
other unit investment trusts underwritten by the Sponsor. At various times the
Sponsor may implement programs under which the sales force of a broker or dealer
may be eligible to win nominal awards for certain sales efforts, or under which
the Sponsor will reallow to any such broker or dealer that sponsors sales
contests or recognition programs conforming to criteria established by the
Sponsor, or participates in sales programs sponsored by the Sponsor, an amount
not exceeding the total applicable sales charges on the sales generated by such
person at the public offering price during such programs. Also, the Sponsor in
its discretion may from time to time pursuant to objective criteria
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<PAGE>
established by the Sponsor pay fees to qualifying brokers or dealers for certain
services or activities which are primarily intended to result in sales of Units.
Such payments are made by the Sponsor out of its own assets, and not out of the
assets of the Trust. These programs will not change the price Unitholders pay
for their Units or the amount that the Trust will receive from the Units sold.
The difference between the discount and the sales charge will be retained by the
Sponsor.
<TABLE>
<CAPTION>
REGULAR
CONCESSION OR
AGENCY
NUMBER OF UNITS* COMMISSION
---------------------------- ----------
<S> <C>
Less than 10,000 3.60%
10,000 but less than 25,000 3.30
25,000 but less than 50,000 3.20
50,000 but less than 100,000 2.50
100,000 or more 2.00
<FN>
- --------------------
* The breakpoint discounts are also applied on a dollar basis utilizing a
breakpoint equivalent in the above table of $10 per Unit.
</TABLE>
The Sponsor reserves the right to reject, in whole or in part, any order for the
purchase of Units.
SPONSOR PROFITS. The Sponsor will receive gross sales charges equal to the
percentage of the Public Offering Price of the Units as stated under "Public
Offering Price." In addition, the Sponsor may have realized a profit (or
sustained a loss) as of the Initial Date of Deposit resulting from the
difference between the purchase prices of the Securities to the Sponsor and the
cost of such Securities to the Trust, which is based on the evaluation of the
Securities on the Initial Date of Deposit. Thereafter, on subsequent deposits
the Sponsor may realize profits or sustain losses from such deposits. The
Sponsor may realize additional profits or losses on unsold Units as a result of
changes in the daily market value of the Securities.
MARKET FOR UNITS
After the initial offering period, while not obligated to do so, the Sponsor
intends to, subject to change at any time, maintain a market for Units offered
hereby and to continuously offer to purchase said Units at prices, determined by
the Evaluator, based on the value of the underlying Securities. Unitholders who
wish to dispose of their Units should inquire of their broker as to current
market prices in order to determine whether there is in existence any price in
excess of the Redemption Price and, if so, the amount thereof. The offering
price of any Units resold by the Sponsor will be in accord with that described
in the currently effective prospectus describing such Units. Any profit or loss
resulting from the resale of such Units will belong to the Sponsor. The Sponsor
may suspend or discontinue purchases of Units if the supply of Units exceeds
demand, or for other business reasons.
REDEMPTION
GENERAL. A Unitholder who does not dispose of Units in the secondary market
described above may cause Units to be redeemed by the Trustee by making a
written request to the Trustee at its Unit Investment Trust
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<PAGE>
Division office in the city of New York and, in the case of Units evidenced by a
certificate, by tendering such certificate to the Trustee properly endorsed or
accompanied by a written instrument or instruments of transfer in form
satisfactory to the Trustee. Unitholders must sign the request, and such
certificate or transfer instrument, exactly as their names appear on the records
of the Trustee and on any certificate representing the Units to be redeemed. If
the amount of the redemption is $500 or less and the proceeds are payable to the
Unitholder(s) of record at the address of record, no signature guarantee is
necessary for redemptions by individual account owners (including joint owners).
Additional documentation may be requested, and a signature guarantee is always
required, from corporations, executors, administrators, trustees, guardians or
associations. The signatures must be guaranteed by a participant in the
Securities Transfer Agents Medallion Program ("STAMP") or such other signature
guaranty program in addition to, or in substitution for, STAMP, as may be
accepted by the Trustee. A certificate should only be sent by registered or
certified mail for the protection of the Unitholder. Since tender of the
certificate is required for redemption when one has been issued, Units
represented by a certificate cannot be redeemed until the certificate
representing such Units has been received by the purchasers.
Redemption shall be made by the Trustee on the third business day following the
day on which a tender for redemption is received (the "Redemption Date") by
payment of cash equivalent to the Redemption Price for the Trust, determined as
set forth below under "Computation of Redemption Price," as of the Evaluation
Time stated under "Essential Information," next following such tender,
multiplied by the number of Units being redeemed. Any Units redeemed shall be
canceled and any undivided fractional interest in the related Trust
extinguished. The price received upon redemption might be more or less than the
amount paid by the Unitholder depending on the value of the Securities in the
Trust at the time of redemption.
Under regulations issued by the Internal Revenue Service, the Trustee is
required to withhold a specified percentage of the principal amount of a Unit
redemption if the Trustee has not been furnished the redeeming Unitholder's tax
identification number in the manner required by such regulations. Any amount so
withheld is transmitted to the Internal Revenue Service and may be recovered by
the Unitholder only when filing a tax return. Under normal circumstances the
Trustee obtains the Unitholder's tax identification number from the selling
broker. However, any time a Unitholder elects to tender Units for redemption,
such Unitholder should make sure that the Trustee has been provided a certified
tax identification number in order to avoid this possible "back-up withholding."
In the event the Trustee has not been previously provided such number, one must
be provided at the time redemption is requested.
Any amounts paid on redemption representing unpaid dividends shall be withdrawn
from the Income Account of the Trust to the extent that funds are available for
such purpose. All other amounts paid on redemption shall be withdrawn from the
Capital Account for such Trust. The Trustee is empowered to sell Securities for
the Trust in order to make funds available for the redemption of Units of such
Trust. Such sale may be required when Securities would not otherwise be sold
and might result in lower prices than might otherwise be realized.
To the extent that Securities are sold, the size and diversity of a Trust will
be reduced but each remaining Unit will continue to represent approximately the
same proportional interest in each Security. Sales may be required at a time
when Securities would not otherwise be sold and may result in lower prices than
might otherwise be realized. The price received upon redemption may be more or
less than the amount paid by the Unitholder depending on the value of the
Securities in the portfolio at the time of redemption.
16
<PAGE>
The right of redemption may be suspended and payment postponed (1) for any
period during which the New York Stock Exchange is closed, other than customary
weekend and holiday closings, or during which (as determined by the Securities
and Exchange Commission) trading on the New York Stock Exchange is restricted;
(2) for any period during which an emergency exists as a result of which
disposal by the Trustee of Securities is not reasonably practicable or it is not
reasonably practicable to fairly determine the value of the underlying
Securities in accordance with the Trust Agreement; or (3) for such other period
as the Securities and Exchange Commission may by order permit. The Trustee is
not liable to any person in any way for any loss or damage which may result from
any such suspension or postponement.
COMPUTATION OF REDEMPTION PRICE. The Redemption Price per Unit (as well as the
secondary market Public Offering Price) will generally be determined on the
basis of the last sale price of the Securities in a Trust. The Redemption Price
per Unit is the pro rata share of each Unit in the Trust determined on the basis
of (i) the cash on hand in such Trust or moneys in the process of being
collected and (ii) the value of the Securities in such Trust less (a) amounts
representing taxes or other governmental charges payable out of such Trust, (b)
any amount owing to the Trustee for its advances and (c) the accrued expenses of
such Trust. The Evaluator may determine the value of the Securities in the
Trust in the following manner: if the Security is listed on a national
securities exchange or the Nasdaq National Market, the evaluation will generally
be based on the last sale price on the exchange or Nasdaq (unless the Evaluator
deems the price inappropriate as a basis for evaluation). If the Security is
not so listed or, if so listed and the principal market for the Security is
other than on the exchange or Nasdaq, the evaluation will generally be made by
the Evaluator in good faith based on the last bid price on the over-the-counter
market (unless the Evaluator deems such price inappropriate as a basis for
evaluation) or, if a bid price is not available, (1) on the basis of the
current bid price for comparable securities, (2) by the Evaluator's appraising
the value of the Securities in good faith at the bid side of the market or (3)
by any combination thereof. See "Public Offering of Units-Public Offering
Price."
RETIREMENT PLANS
The Trust may be well suited for purchase by Individual Retirement Accounts,
Keogh Plans, pension funds and other qualified retirement plans. Generally,
capital gains and income received under each of the foregoing plans are deferred
from Federal taxation. All distributions from such plans are generally treated
as ordinary income but may, in some cases, be eligible for special income
averaging or tax-deferred rollover treatment. Investors considering
participation in any such plan should review specific tax laws related thereto
and should consult their attorneys or tax advisers with respect to the
establishment and maintenance of any such plan. Such plans are offered by
brokerage firms and other financial institutions. The Trust will waive the
$1,000 minimum investment requirement for IRA accounts. The minimum investment
is $250 for tax-deferred plans such as IRA accounts. Fees and charges with
respect to such plans may vary.
The Trustee has agreed to act as custodian for certain retirement plan accounts.
An annual fee of $12.00 per account, if not paid separately, will be assessed by
the Trustee and paid through the liquidation of shares of the reinvestment
account. An individual wishing the Trustee to act as custodian must complete a
Ranson UIT/IRA application and forward it along with a check made payable to The
Bank of New York. Certificates for Individual Retirement Accounts cannot be
issued.
17
<PAGE>
UNITHOLDERS
OWNERSHIP OF UNITS. Ownership of Units will not be evidenced by certificates
unless a Unitholder, the Unitholder's registered broker/dealer or the clearing
agent for such broker/dealer makes a written request to the Trustee. Units are
transferable by making a written request to the Trustee and, in the case of
Units evidenced by a certificate, by presenting and surrendering such
certificate to the Trustee properly endorsed or accompanied by a written
instrument or instruments of transfer which should be sent by registered or
certified mail for the protection of the Unitholder. Unitholders must sign such
written request, and such certificate or transfer instrument, exactly as their
names appear on the records of the Trustee and on any certificate representing
the Units to be transferred. Such signatures must be guaranteed as stated under
"Redemption-General."
Units may be purchased and certificates, if requested, will be issued in
denominations of one Unit or any multiple thereof, subject to the minimum
investment requirement of 100 Units or $1,000. Fractions of Units, if any, will
be computed to three decimal places. Any certificate issued will be numbered
serially for identification, issued in fully registered form and will be
transferable only on the books of the Trustee. The Trustee may require a
Unitholder to pay a reasonable fee, to be determined in the sole discretion of
the Trustee, for each certificate re-issued or transferred and to pay any
governmental charge that may be imposed in connection with each such transfer or
interchange. The Trustee at the present time does not intend to charge for the
normal transfer or interchange of certificates. Destroyed, stolen, mutilated or
lost certificates will be replaced upon delivery to the Trustee of satisfactory
indemnity (generally amounting to 3% of the market value of the Units),
affidavit of loss, evidence of ownership and payment of expenses incurred.
DISTRIBUTIONS TO UNITHOLDERS. Income received by the Trust is credited by the
Trustee to the Income Account of such Trust. Other receipts are credited to the
Capital Account of the Trust. Income received by the Trust will be distributed
on or shortly after the 15th day of January, April, July and October of each
year on a pro rata basis to Unitholders of record as of the preceding record
date (which will be the first day of the related month). All distributions will
be net of applicable expenses. There is no assurance that any actual
distributions will be made since all dividends received may be used to pay
expenses. In addition, amounts from the Capital Account of the Trust, if any,
will be distributed at least annually to the Unitholders then of record.
Proceeds received from the disposition of any of the Securities after a record
date and prior to the following distribution date will be held in the Capital
Account and not distributed until the next distribution date applicable to the
Capital Account. The Trustee shall be required to make a distribution from the
Capital Account if the cash balance on deposit therein available for
distribution shall be sufficient to distribute at least $1.00 per 100 Units.
The Trustee is not required to pay interest on funds held in the Capital or
Income Accounts (but may itself earn interest thereon and therefore benefits
from the use of such funds). The Trustee is authorized to reinvest any funds
held in the Capital or Income Accounts, pending distribution, in U.S. Treasury
obligations which mature on or before the next applicable distribution date.
Any obligations so acquired must be held until they mature and proceeds
therefrom may not be reinvested.
The distribution to the Unitholders as of each record date will be made on the
following distribution date or shortly thereafter and shall consist of an amount
substantially equal to such portion of the Unitholders' pro rata share of the
dividend distributions then held in the Income Account after deducting estimated
expenses. Because dividends are not received by the Trust at a constant rate
throughout the year, such distributions to Unitholders are expected to
fluctuate. Persons who purchase Units will commence receiving distributions
only
18
<PAGE>
after such person becomes a record owner. A person will become the owner of
Units, and thereby a Unitholder of record, on the date of settlement provided
payment has been received. Notification to the Trustee of the transfer of Units
is the responsibility of the purchaser, but in the normal course of business
such notice is provided by the selling broker-dealer.
As of the first day of each month, the Trustee will deduct from the Income
Account of the Trust and, to the extent funds are not sufficient therein, from
the Capital Account of such Trust amounts necessary to pay the expenses of such
Trust (as determined on the basis set forth under "Expenses of the Trust"). The
Trustee also may withdraw from said accounts such amounts, if any, as it deems
necessary to establish a reserve for any governmental charges payable out of the
Trust. Amounts so withdrawn shall not be considered a part of the Trust's
assets until such time as the Trustee shall return all or any part of such
amounts to the appropriate accounts. In addition, the Trustee may withdraw from
the Income and Capital Accounts of the Trust such amounts as may be necessary to
cover redemptions of Units.
DISTRIBUTION REINVESTMENT. Unitholders may elect to have distributions of
capital (including capital gains, if any) or dividends or both automatically
invested into additional Units without a sales charge. In addition, Unitholders
may elect to have distributions of capital (including capital gains, if any) or
dividends or both automatically invested without charge in shares of certain
front-end load mutual funds underwritten or advised by Scudder Kemper
Investments, Inc. at net asset value if such funds are registered in such
Unitholder's state of residence, other than those mutual funds sold with a
contingent deferred sales charge. Since the portfolio securities and investment
objectives of such mutual funds generally will differ significantly from those
of the Trust, Unitholders should carefully consider the consequences before
selecting such mutual funds for reinvestment. Detailed information with respect
to the investment objectives and the management of such mutual funds is
contained in their respective prospectuses, which can be obtained from the
Sponsor upon request. An investor should read the prospectus of the
reinvestment fund selected prior to making the election to reinvest.
Unitholders who desire to have such distributions automatically reinvested
should inform their broker at the time of purchase or should file with the
Program Agent referred to below a written notice of election.
Unitholders who are receiving distributions in cash may elect to participate in
distribution reinvestment by filing with the Program Agent an election to have
such distributions reinvested without charge. Such election must be received by
the Program Agent at least ten days prior to the Record Date applicable to any
distribution in order to be in effect for such Record Date. Any such election
shall remain in effect until a subsequent notice is received by the Program
Agent. See "Unitholders-Distributions to Unitholders."
The Program Agent is The Bank of New York. All inquiries concerning
participating in distribution reinvestment should be directed to The Bank of New
York at its Unit Investment Trust Division office.
STATEMENTS TO UNITHOLDERS. With each distribution, the Trustee will furnish or
cause to be furnished to each Unitholder a statement of the amount of income and
the amount of other receipts, if any, which are being distributed, expressed in
each case as a dollar amount per Unit.
The accounts of the Trust are required to be audited annually, at the Trust's
expense, by independent public accountants designated by the Sponsor, unless the
Sponsor determines that such an audit would not be in the best interest of the
Unitholders of such Trust. The accountants' report will be furnished by the
Trustee to any
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<PAGE>
Unitholder upon written request. Within a reasonable period of time after the
end of each calendar year, the Trustee shall furnish to each person who at any
time during the calendar year was a Unitholder a statement, covering the
calendar year, setting forth for the Trust:
(A) As to the Income Account:
(1) Income received;
(2) Deductions for applicable taxes and for fees and expenses of such
Trust and for redemptions of Units, if any; and
(3) The balance remaining after such distributions and deductions,
expressed in each case both as a total dollar amount and as a dollar
amount representing the pro rata share of each Unit outstanding on
the last business day of such calendar year; and
(B) As to the Capital Account:
(1) The dates of disposition of any Securities and the net proceeds
received therefrom;
(2) Deductions for payment of applicable taxes and fees and expenses of
such Trust held for distribution to Unitholders of record as of a date
prior to the determination; and
(3) The balance remaining after such distributions and deductions
expressed both as a total dollar amount and as a dollar amount
representing the pro rata share of each Unit outstanding on the last
business day of such calendar year; and
(C) The following information:
(1) A list of the Securities as of the last business day of such calendar
year;
(2) The number of Units outstanding on the last business day of such
calendar year;
(3) The Redemption Price based on the last evaluation made during such
calendar year;
(4) The amount actually distributed during such calendar year from the
Income and Capital Accounts separately stated, expressed both as total
dollar amounts and as dollar amounts per Unit outstanding on the
Record Dates for each such distribution.
RIGHTS OF UNITHOLDERS. A Unitholder may at any time tender Units to the Trustee
for redemption. The death or incapacity of any Unitholder will not operate to
terminate the Trust nor entitle legal representatives or heirs to claim an
accounting or to bring any action or proceeding in any court for partition or
winding up of such Trust.
No Unitholder shall have the right to control the operation and management of
the Trust in any manner, except to vote with respect to the amendment of the
Trust Agreement or termination of such Trust.
INVESTMENT SUPERVISION
The Trust is a unit investment trust and is not an "actively managed" fund.
Traditional methods of investment management for a managed fund typically
involve frequent changes in a portfolio of securities on the basis of economic,
financial and market analyses. The portfolio of the Trust, however, will not be
actively managed and therefore the adverse financial condition of an issuer will
not necessarily require the sale of its securities from the portfolio.
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<PAGE>
As a general rule, the only purchases and sales that will be made with respect
to the Trust's portfolio will be those necessary to maintain, to the extent
feasible, a portfolio which reflects the current components of the related stock
index, taking into consideration redemptions, sales of additional Units and the
other adjustments referred to elsewhere in this prospectus. See "Trust
Portfolio." Such purchases and sales will be made in accordance with the
computer program utilized to maintain the portfolio, the Trust Agreement and
procedures to be specified by the Sponsor. The Sponsor may direct the Trustee
to dispose of Securities and either to acquire other Securities through the use
of the proceeds of such disposition in order to make changes in the portfolio or
to distribute the proceeds of such disposition to Unitholders (i) as necessary
to reflect any additions to or deletions from the related stock index, (ii) as
may be necessary to establish a closer correlation between the Trust portfolio
and the related stock index or (iii) as may be required for purposes of
distributing to Unitholders, when required, their pro rata share of any net
realized capital gains or as the Sponsor may otherwise determine. As a policy
matter, the Sponsor currently intends to direct the Trustee to acquire round
lots of shares of the Securities rather than odd lot amounts. Any funds not
used to acquire round lots will be held for future purchases of shares, for
redemptions of Units or for distributions to Unitholders. In the event the
Trustee receives any securities or other properties relating to the Securities
(other than normal dividends) acquired in exchange for Securities such as those
acquired in connection with a reorganization, recapitalization, merger or other
transaction, the Trustee is directed to sell such securities or other property
and reinvest the proceeds in shares of the Security for which such securities or
other property relates, or if such Security is thereafter removed from the
related stock index, in any new security which is added as a component of such
index. In addition, the Sponsor will instruct the Trustee to dispose of certain
Securities and to take such further action as may be needed from time to time to
ensure that the Trust continues to satisfy the qualifications of a regulated
investment company, including the requirements with respect to diversification
under Section 851 of the Internal Revenue Code, and as may be needed from time
to time to avoid the imposition of any excise tax on such Trust as a regulated
investment company.
Proceeds from the sale of Securities (or any securities or other property
received by the Trust in exchange for Securities) are credited to the Capital
Account for distribution to Unitholders or to meet redemptions. Except as
stated under "The Trust Fund" for failed securities and as provided herein, the
acquisition by the Trust of any securities other than the Securities is
prohibited. The Trustee may sell Securities, designated by the Sponsor, from
the Trust for the purpose of redeeming Units of such Trust tendered for
redemption and the payment of expenses.
ADMINISTRATION OF THE TRUST
THE TRUSTEE. The Trustee is The Bank of New York, a trust company organized
under the laws of New York. The Bank of New York has its Unit Investment Trust
Division offices at 101 Barclay Street, New York, New York 10286, telephone 1-
800-701-8178. The Bank of New York is subject to supervision and examination by
the Superintendent of Banks of the State of New York and the Board of Governors
of the Federal Reserve System, and its deposits are insured by the Federal
Deposit Insurance Corporation to the extent permitted by law.
The Trustee, whose duties are ministerial in nature, has not participated in
selecting the portfolio of the Trust. For information relating to the
responsibilities of the Trustee under the Trust Agreement, reference is made to
the material set forth under "Unitholders."
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<PAGE>
In accordance with the Trust Agreement, the Trustee shall keep records of all
transactions at its office. Such records shall include the name and address of,
and the number of Units held by, every Unitholder of the Trust. Such books and
records shall be open to inspection by any Unitholder at all reasonable times
during usual business hours. The Trustee shall make such annual or other
reports as may from time to time be required under any applicable state or
federal statute, rule or regulation. The Trustee shall keep a certified copy or
duplicate original of the Trust Agreement on file in its office available for
inspection at all reasonable times during usual business hours by any
Unitholder, together with a current list of the Securities held in the Trust.
Pursuant to the Trust Agreement, the Trustee may employ one or more agents for
the purpose of custody and safeguarding of Securities comprising the Trust.
Under the Trust Agreement, the Trustee or any successor trustee may resign and
be discharged of the trust created by the Trust Agreement by executing an
instrument in writing and filing the same with the Sponsor.
The Trustee or successor trustee must mail a copy of the notice of resignation
to all Unitholders then of record, not less than sixty days before the date
specified in such notice when such resignation is to take effect. The Sponsor
upon receiving notice of such resignation is obligated to appoint a successor
trustee promptly. If, upon such resignation, no successor trustee has been
appointed and has accepted the appointment within thirty days after
notification, the retiring Trustee may apply to a court of competent
jurisdiction for the appointment of a successor. The Sponsor may at any time
remove the Trustee, with or without cause, and appoint a successor trustee as
provided in the Trust Agreement. Notice of such removal and appointment shall
be mailed to each Unitholder by the Sponsor. Upon execution of a written
acceptance of such appointment by such successor trustee, all the rights,
powers, duties and obligations of the original Trustee shall vest in the
successor. The Trustee must be a corporation organized under the laws of the
United States, or any state thereof, be authorized under such laws to exercise
trust powers and have at all times an aggregate capital, surplus and undivided
profits of not less than $5,000,000.
THE SPONSOR. Ranson & Associates, Inc., the Sponsor of the Trust, is an
investment banking firm created in 1995 by a number of former owners and
employees of Ranson Capital Corporation. On November 26, 1996, Ranson &
Associates, Inc. purchased all existing unit investment trusts sponsored by
EVEREN Securities, Inc. Accordingly, Ranson & Associates is the successor
sponsor to unit investment trusts formerly sponsored by EVEREN Unit Investment
Trusts, a service of EVEREN Securities, Inc. Ranson & Associates, is also the
sponsor and successor sponsor of Series of The Kansas Tax-Exempt Trust and
Multi-State Series of The Ranson Municipal Trust. Ranson & Associates, Inc.
is the successor to a series of companies, of first of which was originally
organized in Kansas in 1935. During its history, Ranson & Associates, Inc.
and its predecessors have been active in public and corporate finance and
have sold bonds and unit investment trusts and maintained secondary market
activities relating thereto. At present, Ranson & Associates, Inc., which
is a member of the National Association of Securities Dealers, Inc., is the
Sponsor to each of the above-named unit investment trusts and serves as the
financial advisor and as an underwriter for Kansas municipalities. The
Sponsor's offices are located at 250 North Rock Road, Suite 150, Wichita,
Kansas 67206-2241.
If at any time the Sponsor shall fail to perform any of its duties under the
Trust Agreement or shall become incapable of acting or shall be adjudged a
bankrupt or insolvent or shall have its affairs taken over by public
authorities, then the Trustee may (a) appoint a successor sponsor at rates of
compensation deemed by the Trustee to be reasonable and not exceeding such
reasonable amounts as may be prescribed by the Securities and Exchange
Commission, or (b) terminate the Trust Agreement and liquidate the Trust as
provided therein, or (c) continue to act as Trustee without terminating the
Trust Agreement.
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The foregoing financial information with regard to the Sponsor relates to the
Sponsor only and not to the Trust. Such information is included in this
Prospectus only for the purpose of informing investors as to the financial
responsibility of the Sponsor and its ability to carry out its contractual
obligations with respect to the Trust. More comprehensive financial information
can be obtained upon request from the Sponsor.
THE EVALUATOR. Ranson & Associates, Inc., the Sponsor, also serves as
Evaluator. The Evaluator may resign or be removed by the Trustee in which event
the Trustee is to use its best efforts to appoint a satisfactory successor.
Such resignation or removal shall become effective upon acceptance of
appointment by the successor evaluator. If upon resignation of the Evaluator no
successor has accepted appointment within thirty days after notice of
resignation, the Evaluator may apply to a court of competent jurisdiction for
the appointment of a successor. Notice of such registration or removal and
appointment shall be mailed by the Trustee to each Unitholder.
AMENDMENT AND TERMINATION. The Trust Agreement may be amended by the Trustee
and the Sponsor without the consent of any of the Unitholders: (1) to cure any
ambiguity or to correct or supplement any provision which may be defective or
inconsistent; (2) to change any provision thereof as may be required by the
Securities and Exchange Commission or any successor governmental agency; or (3)
to make such provisions as shall not adversely affect the interests of the
Unitholders. The Trust Agreement with respect to a Trust may also be amended in
any respect by the Sponsor and the Trustee, or any of the provisions thereof may
be waived, with the consent of the holders of Units representing 66 2/3% of the
Units then outstanding of such Trust, provided that no such amendment or waiver
will reduce the interest of any Unitholder thereof without the consent of such
Unitholder or reduce the percentage of Units required to consent to any such
amendment or waiver without the consent of all Unitholders of such Trust. In no
event shall the Trust Agreement be amended to increase the number of Units of
the Trust issuable thereunder or to permit the acquisition of any Securities in
addition to or in substitution for those initially deposited in such Trust,
except in accordance with the provisions of the Trust Agreement. The Trustee
shall promptly notify Unitholders of the substance of any such amendment.
The Trust Agreement provides that the Trust shall terminate upon the
liquidation, redemption or other disposition of the last of the Securities held
in such Trust but in no event is it to continue beyond the Mandatory Termination
Date set forth under "Essential Information." If the value of the Trust shall be
less than the applicable minimum value stated under "Essential Information" (40%
of the aggregate value of the Securities-based on the value at the date of
deposit of such Securities into such Trust), the Trustee may, in its discretion,
and shall, when so directed by the Sponsor, terminate such Trust. A Trust may
be terminated at any time by the holders of Units representing 66 2/3% of the
Units thereof then outstanding. In addition, the Sponsor may terminate a Trust
if the related stock index is no longer maintained.
No later than the Mandatory Termination Date set forth under "Essential
Information" in Part Two the Trustee will begin to sell all of the remaining
underlying Securities on behalf of Unitholders in connection with the
termination of the Trust. The Sponsor has agreed to assist the Trustee in these
sales. The sale proceeds will be net of any incidental expenses involved in the
sales.
The Sponsor will attempt to sell the Securities as quickly as it can during the
termination proceedings without in its judgment materially adversely affecting
the market price of the Securities, but it is expected that all of the
Securities will in any event be disposed of within a reasonable time after the
Trust's termination. The Sponsor
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<PAGE>
does not anticipate that the period will be longer than one month, and it could
be as short as one day, depending on the liquidity of the Securities being sold.
The liquidity of any Security depends on the daily trading volume of the
Security and the amount that the Sponsor has available for sale on any
particular day.
It is expected (but not required) that the Sponsor will generally follow the
following guidelines in selling the Securities: for highly liquid Securities,
the Sponsor will generally sell Securities on the first day of the Liquidation
Period; for less liquid Securities, on each of the first two days of the
termination proceedings, the Sponsor will generally sell any amount of any
underlying Securities at a price no less than 1/2 of one point under the last
closing sale price of those Securities. Thereafter, the price limit will
increase to one point under the last closing sale price. After four days, the
Sponsor currently intends to sell at least a fraction of the remaining
underlying Securities, the numerator of which is one and the denominator of
which is the total number of days remaining (including that day) in the
termination proceedings without any price restrictions. Of course, no
assurances can be given that the market value of the Securities will not be
adversely affected during the termination proceedings.
In the event of termination of the Trust, written notice thereof will be sent by
the Trustee to all Unitholders of such Trust. Within a reasonable period after
termination, the Trustee will sell any Securities remaining in a Trust and,
after paying all expenses and charges incurred by such Trust, will distribute to
Unitholders thereof (upon surrender for cancellation of certificates for Units,
if issued) their pro rata share of the balances remaining in the Income and
Capital Accounts of such Trust.
The Sponsor currently intends, but is not obligated, to offer for sale units of
a subsequent series of the Trust at approximately the time of the Mandatory
Termination Date. If the Sponsor does offer such units for sale, Unitholders
may be given the opportunity to purchase such units at a public offering price
which includes a reduced sales charge. There is, however, no assurance that
units of any new series of the Trust will be offered for sale at that time, or
if offered, that there will be sufficient units available for sale to meet the
requests of any or all Unitholders.
LIMITATIONS ON LIABILITY. The Sponsor: The Sponsor is liable for the
performance of its obligations arising from its responsibilities under the Trust
Agreement, but will be under no liability to the Unitholders for taking any
action or refraining from any action in good faith pursuant to the Trust
Agreement or for errors in judgment, except in cases of its own gross
negligence, bad faith or willful misconduct or its reckless disregard for its
duties thereunder. The Sponsor shall not be liable or responsible in any way
for depreciation or loss incurred by reason of the sale of any Securities.
The Trustee: The Trust Agreement provides that the Trustee shall be under no
liability for any action taken in good faith in reliance upon prima facie
properly executed documents or for the disposition of moneys, Securities or
certificates except by reason of its own negligence, bad faith or willful
misconduct, or its reckless disregard for its duties under the Trust Agreement,
nor shall the Trustee be liable or responsible in any way for depreciation or
loss incurred by reason of the sale by the Trustee of any Securities. In the
event that the Sponsor shall fail to act, the Trustee may act and shall not be
liable for any such action taken by it in good faith. The Trustee shall not be
personally liable for any taxes or other governmental charges imposed upon or in
respect of the Securities or upon the interest thereof. In addition, the Trust
Agreement contains other customary provisions limiting the liability of the
Trustee.
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<PAGE>
The Evaluator: The Trustee and Unitholders may rely on any evaluation furnished
by the Evaluator and shall have no responsibility for the accuracy thereof. The
Trust Agreement provides that the determinations made by the Evaluator shall be
made in good faith upon the basis of the best information available to it,
provided, however, that the Evaluator shall be under no liability to the Trustee
or Unitholders for errors in judgment, but shall be liable for its gross
negligence, bad faith or willful misconduct or its reckless disregard for its
obligations under the Trust Agreement.
EXPENSES OF THE TRUST
The Sponsor will not charge the Trust any fees for services performed as
Sponsor. The Sponsor will receive a portion of the sale commissions paid in
connection with the purchase of Units and will share in profits, if any, related
to the deposit of Securities in the Trust.
The Trustee receives for its services that fee set forth under "Essential
Information" in Part Two. However, in no event shall such fee amount to less
than $2,000 in any single calendar year. The Trustee's fee which is calculated
monthly is based on the largest number of Units outstanding during the calendar
year for which such compensation relates. The Trustee's fees are payable
monthly on or before the fifteenth day of the month from the Income Account to
the extent funds are available and then from the Capital Account. The Trustee
benefits to the extent there are funds for future distributions, payment of
expenses and redemptions in the Capital and Income Accounts since these Accounts
are non-interest bearing and the amounts earned by the Trustee are retained by
the Trustee. Part of the Trustee's compensation for its services to the Trust
is expected to result from the use of these funds.
In its capacity as Supervisor, the Sponsor will charge the Trust a surveillance
fee for services performed for the Trust in an amount not to exceed that amount
set forth in "Essential Information" in Part Two but in no event will such
compensation, when combined with all compensation received from other unit
investment trusts for which the Sponsor both acts as sponsor and provides
portfolio surveillance, exceed the aggregate cost to the Sponsor for providing
such services. Such fee shall be based on the total number of Units of the
Trust outstanding as of the January record date for any annual period.
For evaluation of the Securities, the Evaluator shall receive that fee set forth
under "Essential Information" in Part Two, payable monthly, based upon the
largest number of Units outstanding during the calendar year for which such
compensation relates.
The Trustee's fee, Supervisor's fee and Evaluator's fee are deducted from the
Income Account of the Trust to the extent funds are available and then from the
Capital Account. Each such fee may be increased without approval of Unitholders
by amounts not exceeding a proportionate increase in the Consumer Price Index or
any equivalent index substituted therefor.
The S&P 500 Trust Licensor receives an annual fee from the S&P 500 Trust equal
to the greater of .02% of the average net asset value of such Trust or $10,000.
This fee covers the license to the S&P 500 Trust of the use of various
trademarks and trade names as described under "The S&P 500 Index."
Expenses incurred in establishing the Trust, including the cost of the initial
preparation of documents relating to such Trust (including the Prospectus, Trust
Agreement and certificates), federal and state registration fees, the
25
<PAGE>
initial fees and expenses of the Trustee, legal and accounting expenses, payment
of closing fees and any other out-of-pocket expenses, will be paid by such Trust
(out of the Capital Account) and it is intended that such expenses be amortized
over a five year period or the life of the Trust if less than five years. The
following additional charges are or may be incurred by the Trust: (a) fees for
the Trustee's extraordinary services; (b) expenses of the Trustee (including
legal and auditing expenses, but not including any fees and expenses charged by
an agent for custody and safeguarding of Securities) and of counsel, if any; (c)
various governmental charges; (d) expenses and costs of any action taken by the
Trustee to protect the Trust or the rights and interests of the Unitholders; (e)
indemnification of the Trustee for any loss, liability or expense incurred by it
in the administration of the Trust not resulting from negligence, bad faith or
willful misconduct on its part or its reckless disregard for its obligations
under the Trust Agreement; (f) indemnification of the Sponsor for any loss,
liability or expense incurred in acting in that capacity without gross
negligence, bad faith or willful misconduct or its reckless disregard for its
obligations under the Trust Agreement; and (g) expenditures incurred in
contacting Unitholders upon termination of such Trust. The fees and expenses
set forth herein are payable out of the Trust and, when owing to the Trustee,
are secured by a lien on such Trust. Since the Securities are all common
stocks, and the income stream produced by dividend payments, if any, is
unpredictable, the Sponsor cannot provide any assurance that dividends will be
sufficient to meet any or all expenses of the Trust. If the balances in the
Income and Capital Accounts are insufficient to provide for amounts payable by
the Trust, the Trustee has the power to sell Securities to pay such amounts.
These sales may result in capital gains or losses to Unitholders. See "Federal
Tax Status."
LEGAL OPINIONS
The legality of the Units offered hereby and certain matters relating to federal
tax law have been passed upon by Chapman and Cutler, 111 West Monroe Street,
Chicago, Illinois 60603, as counsel for the Sponsor.
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The statement of net assets and the related portfolio at the Initial Date of
Deposit included in this Prospectus have been audited by Ernst & Young LLP,
independent certified public accountants, as set forth in their report in the
Prospectus, and are included herein in reliance upon the authority of said firm
as experts in accounting and auditing.
--------------------
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<TABLE>
<CAPTION>
Contents Page
- -------- ----
<S> <C>
SUMMARY 2
THE TRUST FUND 4
THE TRUST PORTFOLIO 5
THE S&P 500 INDEX 6
RISK FACTORS 9
FEDERAL TAX STATUS 10
PUBLIC OFFERING OF UNITS 13
Public Offering Price 13
Public Distribution of Units 14
Sponsor Profits 15
MARKET FOR UNITS 15
REDEMPTION 15
General 15
Computation of Redemption Price 17
RETIREMENT PLANS 17
UNITHOLDERS 18
Ownership of Units 18
Distributions to Unitholders 18
Distribution Reinvestment 19
Statements to Unitholders 19
Rights of Unitholders 20
INVESTMENT SUPERVISION 20
ADMINISTRATION OF THE TRUST 21
The Trustee 21
The Sponsor 22
The Evaluator 23
Amendment and Termination 23
Limitations on Liability 24
EXPENSES OF THE TRUST 25
LEGAL OPINIONS 26
INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS 26
</TABLE>
This Prospectus does not contain all of the information set forth in the
registration statement and exhibits relating thereto, filed with the Securities
and Exchange Commission, Washington, D.C. under the Securities Act of 1933 and
the Investment Company Act of 1940, and to which reference is made.
--------------------
No person is authorized to give any information or to make any representations
not contained in this Prospectus and any information or representation not
contained herein must not be relied upon as having been authorized by the Trust,
the Trustee, or the Sponsor. The Trust is registered as a unit investment trust
under the Investment Company Act of 1940. Such registration does not imply that
the Trust or the Units have been guaranteed, sponsored, recommended or approved
by the United States or any state or any agency or officer thereof.
--------------------
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any state to any person to whom it is not lawful to
make such offer in such state.
<PAGE>
- --------------------
RANSON
UNIT
INVESTMENT
TRUSTS
- --------------------
--------------------
PROSPECTUS
--------------------
S & P 500 INDEX TRUST, SERIES 2
- ----------------------------------------
PROSPECTUS PART ONE
- ----------------------------------------
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Part Two
Dated April 30, 1998
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
NOTE: Part Two of this Prospectus May Not Be Distributed Unless Accompanied by
Part One.
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Essential Information
As of December 31, 1997
Sponsor and Evaluator: Ranson & Associates, Inc.
Trustee: The Bank of New York Co.
<TABLE>
<CAPTION>
General Information
<S> <C>
Principal Amount of Securities $8,318,913
Number of Units 738,400
Fractional Undivided Interest in the Trust per Unit 1/738,400
Principal Amount of Securities per Unit $11.266
Public Offering Price:
Aggregate Value of Securities in Portfolio $8,318,913
Aggregate Value of Securities per Unit $11.266
Net Cash per Unit (1) $(.050)
Sales Charge of 4.90% of Public Offering Price (5.152%
of net amount invested) per Unit $.578
Public Offering Price per Unit $11.794
Redemption Price per Unit $11.216
</TABLE>
Minimum Value of the Trust under Trust Agreement may be Terminated if
which Trust agreement may value of Trust is less than $1,050,924
be terminated (40% of the par value of the Securities
deposited in the Trust).
Date of Trust Agreement March 5, 1997
Mandatory Termination Date April 30, 2003
Evaluator's Annual Evaluation Fee Maximum of $.0029 per Unit
Trustee's Annual Fee $.0086 per Unit
S & P 500 Trust Licensor Fee Equal to the greater of .02% of the
average net asset value or $10,000.
Record Dates First day of January, April, July and
October.
Distribution Dates Fifteenth day of January, April, July and
October.
(1) This amount, if any, represents principal cash or overdraft which is an
asset or liability of the Trust and is included in the Public Offering Price.
[FN]
<PAGE>
<PAGE>
Report of Independent Auditors
Unitholders
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
We have audited the accompanying statement of assets and liabilities of Ranson
Unit Investment Trust, S&P 500 Index Trust, Series 2, including the schedule of
investments, as of December 31, 1997, and the related statement of operations
and changes in net assets for the period from March 6, 1997 (Date of Deposit) to
December 31, 1997. These financial statements are the responsibility of the
Trust's sponsor. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit 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. Our procedures
included confirmation of investments owned as of December 31, 1997, by
correspondence with the custodial bank. An audit also includes assessing the
accounting principles used and significant estimates made by the sponsor, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides 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 Ranson Unit Investment Trust,
S&P 500 Index Trust, Series 2 at December 31, 1997, and the results of its
operations and changes in its net assets for the period indicated above in
conformity with generally accepted accounting principles.
Ernst & Young LLP
Kansas City, Missouri
April 16, 1998
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Statement of Assets and Liabilities
December 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
Assets
Securities, at value (cost $7,704,281) $8,318,913
Dividends receivable 11,776
Organization costs 20,204
Prepaid expense 4,849
---------
Total assets 8,355,742
Liabilities and net assets
Cash overdraft 35,252
Redemptions payable 12
---------
35,264
Net assets, applicable to 738,400 Units outstanding:
Cost of Trust assets, exclusive of interest $7,704,281
Unrealized appreciation 614,632
Distributable funds 1,565
--------- ---------
Net assets $8,320,478
=========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Statement of Operations
<TABLE>
<CAPTION>
Period from
March 6,
1997 to
December 31,
1997
<S> <C>
---------
Investment income $81,906
Expenses:
Trustee's fees and related expenses 10,215
Evaluator's and surveillance fees 5,090
Amortization of organizational expenses 5,051
---------
Total expenses 20,356
---------
Net investment income 61,550
Realized and unrealized gain on investments:
Realized gain 106,785
Unrealized appreciation during the period 614,632
---------
Net gain on investments 721,417
---------
Net increase in net assets resulting from operations $782,967
=========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Period from
March 6,
1997 to
December 31,
1997
<S> <C>
---------
Operations:
Net investment income $61,550
Realized gain on investments 106,785
Unrealized appreciation on investments during the period 614,632
---------
Net increase in net assets resulting from operations 782,967
Distributions to Unitholders:
Net investment income (29,221)
Principal from investment transactions (80,006)
---------
Total distributions to Unitholders (109,227)
Capital transactions:
Issuance of 739,113 Units 7,653,386
Redemption of 713 Units (6,648)
---------
Total increase in net assets 8,320,478
Net assets:
At the beginning of the period -
---------
End of the period (including distributable funds applicable
to Trust Units of $(2,675) at December 31, 1997) $8,320,478
=========
Trust Units outstanding at the end of the period 738,400
=========
Net asset value at the end of the period:
Quarterly $11.27
=========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Schedule of Investments
December 31, 1997
<TABLE>
<CAPTION>
Percentage (%)
of Total
<S> <C> <C> <C>
Shares Name of Issuer Market Value Market Value
100 ALUMINUM CO AMERICA $7,037.50 0.085
100 APPLE COMPUTER INC * 1,312.50 0.016
300 ALBERTSONS INC 14,212.50 0.171
900 ABBOTT LABS 59,006.25 0.709
300 BARRICK GOLD CORP 5,606.25 0.067
100 COORS ADOLPH CO 3,325.00 0.040
100 ARMSTRONG WORLD INDS 7,475.00 0.090
100 ALBERTO CULVER CO 3,206.25 0.039
100 ADOBE SYSTEMS 4,125.00 0.050
500 ARCHER DANIELS MIDLAND 10,843.75 0.130
100 AUTODESK INC 3,700.00 0.044
100 AMERICAN ELECTRIC POWER INC 5,162.50 0.062
200 AETNA LIFE & CASualty CO 14,112.50 0.170
200 AMERICAN GENERAL CORP 10,812.50 0.130
100 ALLERGAN INC 3,356.25 0.040
100 AMERICAN GREETINGS CORP 3,912.50 0.047
100 AMERADA HESS CORP 5,487.50 0.066
100 AHMANSON H F & CO 6,693.75 0.080
700 AMERICAN HOME PRODUCTS CORP 53,593.75 0.644
800 AMERICAN INTERNATIONAL GROUP INC 87,000.00 1.046
600 AMERITECH CORP NEW 48,375.00 0.582
100 ALCAN ALUMINIUM LTD NEW 2,762.50 0.033
600 ALLIEDSIGNAL INC 23,362.50 0.281
500 ALLSTATE CORP 45,437.50 0.546
100 ALLEGHENY TELELDYNE 2,625.00 0.032
400 APPLIED MATERIALS INC * 12,050.00 0.145
100 ADVANCED MICRO DEVICES * 1,793.75 0.022
300 AMGEN INC * 16,237.50 0.195
300 AMP INC 12,600.00 0.151
100 AMR CORP * 12,850.00 0.154
600 AMOCO CORP 51,075.00 0.614
100 ANDREW CORP * 2,400.00 0.029
100 AEROQUIP-VICKERS 4,906.25 0.059
100 AON CORP 5,862.50 0.070
100 APACHE CORP 3,506.25 0.042
100 ANADARKO PETROLEUM CORP 6,068.75 0.073
100 AIR PRODUCTS & CHEMICALS INC 8,225.00 0.099
100 ASARCO INC 2,243.75 0.027
400 ATLANTIC RICHFIELD CO 32,050.00 0.385
100 ARMCO INC * 493.75 0.006
200 AMERICAN STORES CO NEW COM 4,100.00 0.049
100 ASHLAND INC 5,362.50 0.064
100 ALLTEL CORP 4,112.50 0.049
600 AIRTOUCH COMMUNICATION * 24,937.50 0.300
300 AUTOMATIC DATA PROCESS 18,412.50 0.221
100 AVON PRODUCTS INC 6,143.75 0.074
100 AVERY DENNISON CORP 4,475.00 0.054
500 AMERICAN EXPRESS CO 44,625.00 0.536
100 ALZA CORP CLASS A COMMON * 3,175.00 0.038
100 AUTOZONE INC. * 2,900.00 0.035
1,200 BOEING CO 58,725.00 0.706
800 BANKAMERICA CORP 58,400.00 0.702
300 BAXTER INTERNATIONAL INC 15,131.25 0.182
100 BAY NETWORK * 2,556.25 0.031
100 BARNETT BANKS INC 7,187.50 0.086
100 BB&T CORP. * 6,387.50 0.077
100 BRUNSWICK CORP 3,031.25 0.036
100 BOISE CASCADE CORP 3,025.00 0.036
100 BARD C R INC 3,131.25 0.038
100 BLACK & DECKER CORP 3,906.25 0.047
100 BECTON DICKINSON & CO 5,000.00 0.060
900 BELL ATLANTIC CORP 81,900.00 0.985
100 BROWN FORMAN CORP 5,518.75 0.066
100 BROWNING FERRIS INDUSTRIES 3,700.00 0.044
100 BALTIMORE GAS & ELECTRIC 3,406.25 0.041
100 BRIGGS & STRATTON CORP 4,856.25 0.058
100 BAKER HUGHES INC 4,362.50 0.052
300 BANK NEW YORK INC 17,343.75 0.208
200 BANKBOSTON CORP 18,787.50 0.226
100 BALL CORP 3,531.25 0.042
1,200 BELLSOUTH CORP 67,575.00 0.812
100 BIOMET INC 2,562.50 0.031
100 BATTLE MOUNTAIN GOLD 587.50 0.007
100 BEMIS INC 4,406.25 0.053
1,200 BRISTOL MYERS SQUIBB 113,550.00 1.365
200 BURLINGTON NORTHERN SANTA FE CORP 18,587.50 0.223
100 BENEFICIAL CORP 8,312.50 0.100
100 BAUSCH & LOMB INC 3,968.75 0.048
252 BURLINGTON RESSOURCES INC 11,292.75 0.136
100 BETHLEHEM STEEL CORPORATION * 862.50 0.010
100 BOSTON SCIENTIFIC CORPORATION * 4,587.50 0.055
100 BANKERS TRUST N Y CORP 11,243.75 0.135
600 ANHEUSER BUSCH COS INC 26,400.00 0.317
600 CHRYSLER CORP 21,112.50 0.254
600 COMPUTER ASSOC INTL INC 31,725.00 0.381
500 CONAGRA INC 16,406.25 0.197
100 CARDINAL HEALTH 7,512.50 0.090
400 CATERPILLAR INC DEL 19,425.00 0.234
100 CHUBB CORP 7,562.50 0.091
100 CALIBER SYSTEMS INC. 4,862.50 0.058
100 COOPER INDUSTRIES INC 4,900.00 0.059
800 CBS CORP * 23,550.00 0.283
100 CIRCUIT CITY STORE INC 3,568.75 0.043
500 CITICORP 63,218.75 0.760
100 CROWN CORK & SEAL INC 5,012.50 0.060
100 COUNTRYWIDE CREDIT 4,287.50 0.052
100 CLEAR CHANNEL * 7,943.75 0.095
540 CENDANT CORP * 18,562.50 0.223
100 CERIDIAN CORP * 4,581.25 0.055
200 CORESTATES FINANCIAL CORP 16,012.50 0.192
100 COLUMBIA GAS SYSTEM INC 7,856.25 0.094
100 COASTAL CORP 6,193.75 0.074
100 CHAMPION INTERNATIONAL CORP 4,531.25 0.054
100 CHARMING SHOPPES INC * 468.75 0.006
800 CHEVRON CORP 61,600.00 0.740
100 CIGNA CORP 17,287.50 0.208
100 CINERGY CORP 3,837.50 0.046
200 COLGATE PALMOLIVE CO 14,700.00 0.177
200 CLOROX COMPANY COMMON 15,812.50 0.190
100 COMERICA 9,025.00 0.108
500 CHASE MANHATTAN CORP 54,750.00 0.658
300 COMCAST CORP 9,468.75 0.114
100 CINCINNATI MILACRON INC 2,587.50 0.031
100 CONSECO INC. 4,543.75 0.055
100 CONSOLIDATED NATURAL GAS CO 6,043.75 0.073
600 COLUMBIA/HCA HEALTHCARE 17,775.00 0.214
300 3 COM CORP * 10,481.25 0.126
100 COSTCO CO. * 4,462.50 0.054
400 CAMPBELL SOUP CO 23,250.00 0.279
200 CPC INTL INC 21,550.00 0.259
100 CAROLINA POWER & LIGHT CO 4,243.75 0.051
800 COMPAQ COMPUTER CORP * 45,150.00 0.543
100 CRANE CO 4,337.50 0.052
100 CABLETRON SYS INC * 1,500.00 0.018
100 COMPUTER SCIENCES CORP * 8,256.25 0.099
1,200 CISCO SYSTEMS INC * 66,900.00 0.804
100 CASE CORP 6,043.75 0.073
100 CENTRAL & SOUTHWEST CORP 2,706.25 0.033
300 CSX CORP 16,200.00 0.195
100 COOPER TIRE & RUBBER CO 2,437.50 0.029
100 CENTEX CORP 6,293.75 0.076
100 CUMMINS ENGINE INC 5,906.25 0.071
100 CVS CORP 6,406.25 0.077
100 CYPRUS AMAX MINERALS CO 1,537.50 0.018
100 COGNIZANT INC. 4,462.50 0.054
100 DOMINION RESOURCES INC 4,256.25 0.051
100 DELTA AIR LINES INC 11,900.00 0.143
100 DANA CORP 4,737.50 0.057
1,200 DU PONT E I DE NEMOURS 72,075.00 0.866
100 DILLARD INC. 3,525.00 0.042
300 DEERE & CO 17,493.75 0.210
100 DIGITAL EQUIPMENT CORP * 3,718.75 0.045
400 DELL CORP * 33,600.00 0.404
100 DATA GENERAL CORP * 1,743.75 0.021
300 DAYTON HUDSON CORP 20,250.00 0.243
100 DRESSER INDUSTRIES INC 4,193.75 0.050
100 DSC COMMUNICATIONS CORP * 2,400.00 0.029
800 DISNEY WALT CO 79,250.00 0.953
100 DOW JONES & CO INC 5,368.75 0.065
100 DELUXE CORP 3,456.25 0.042
100 DUN & BRADSTREET CORP 3,093.75 0.037
100 DONNELLEY R R & SONS 1,250.00 0.015
100 DETROIT EDISON CO 3,462.50 0.042
300 DUKE POWER CO 16,593.75 0.199
100 ENGELHARD CORP 1,737.50 0.021
100 ECHLIN INC 3,618.75 0.044
100 ECOLAB INC 5,543.75 0.067
100 ECHO BAY MINES LTD * 243.75 0.003
300 CONSOLIDATED EDISON NY 12,300.00 0.148
100 EASTERN ENTERPRISES 4,481.25 0.054
100 EQUIFAX 3,543.75 0.043
100 EG & G INC 2,081.25 0.025
300 EDISON INT'L 8,156.25 0.098
300 EASTMAN KODAK CO 18,243.75 0.219
600 E M C CORP * 16,462.50 0.198
100 EASTMAN CHEMICAL CO 5,956.25 0.072
400 EMERSON ELECTRIC CO 22,575.00 0.271
300 ENRON CORP 12,468.75 0.150
100 EATON CORP 8,900.00 0.107
100 ENTERGY CORP NEW 2,993.75 0.036
1,400 FORD MOTOR CO 68,162.50 0.819
300 FIRST CHICAGO NBD CORP 25,050.00 0.301
100 FREEPORT-MCMORAN COPPER 1,575.00 0.019
100 FEDERATED DEPARTMENT STORES * 4,300.00 0.052
400 FIRST DATA CORP 11,700.00 0.141
100 FEDERAL EXPRESS CORP * 6,106.25 0.073
100 FIRST ENERGY CORP * 2,900.00 0.035
100 USF&G CORP 2,206.25 0.027
100 FIFTH THIRD BANCORP 8,175.00 0.098
100 FORT JAMES CORP 3,825.00 0.046
100 FLEETWOOD ENTERPRISES 4,243.75 0.051
100 FLEMING COS INC 1,350.00 0.016
100 FLUOR CORP 3,737.50 0.045
300 FLEET FINANCIAL GROUP INC 22,481.25 0.270
100 F M C CORP * 6,731.25 0.081
1,100 FEDERAL NATIONAL MORTGAGE ASSOC 62,768.75 0.755
100 FORTUNE BRANDS 3,706.25 0.045
400 SPRINT CORP 23,450.00 0.282
100 FPL GROUP INC 5,925.00 0.071
800 FEDERAL HOME LOAN MORTGAGE CORP 33,550.00 0.403
100 FRONTIER CORP 2,406.25 0.029
100 FRUIT OF THE LOOM INC * 2,562.50 0.031
700 FIRST UNION CORP 35,875.00 0.431
100 FOSTER WHEELER CORP 2,712.50 0.033
600 GILLETTE CO 60,262.50 0.724
100 GREAT ATLANTIC & PACIFIC TEA 2,975.00 0.036
100 NICOR INC 4,225.00 0.051
200 GANNETT INC 12,312.50 0.148
100 GENERAL DYNAMICS CORP 8,643.75 0.104
200 GUIDANT CORP 12,450.00 0.150
100 GOLDEN WEST FINANCIAL CORP 9,781.25 0.118
3,800 GENERAL ELECTRIC CO 278,825.00 3.352
100 GIANT FOOD INC 3,368.75 0.04
100 GENERAL MILLS INC 7,181.25 0.086
100 GREAT LAKES CHEMICALS CORP 4,487.50 0.054
300 CORNING INC 11,137.50 0.134
800 GENERAL MOTORS CORP 48,450.00 0.582
100 GREEN TREE FINANCIAL 2,618.75 0.031
100 GEORGIA PACIFIC CORP 6,075.00 0.073
200 GENUINE PARTS CO 6,775.00 0.081
450 GAP INC 15,946.88 0.192
100 GPU INC. 4,212.50 0.051
100 GOODRICH B F CO 4,143.75 0.050
100 GRACE W R & CO 8,043.75 0.097
100 GENERAL RE CORP 21,175.00 0.255
100 GENERAL SIGNAL CORP 4,218.75 0.051
100 GOODYEAR TIRE & RUBBER 6,368.75 0.077
1,100 GTE CORP 57,337.50 0.689
100 GRAINGER W W INC 9,718.75 0.117
100 HARCOURT GENERAL INC 5,481.25 0.066
200 HALLIBURTON CO 10,387.50 0.125
100 HASBRO INC 3,150.00 0.038
100 HUNTINGTON BANCSHARES * 3,600.00 0.043
200 HBO & COMPANY * 9,600.00 0.115
800 HOME DEPOT INC 46,850.00 0.563
100 HARRAHS ENTERTAINMENT INC * 1,881.25 0.023
100 HOUSEHOLD INTL INC 12,756.25 0.153
100 ITT HARTFORD GROUP INC. 9,356.25 0.112
100 HILTON HOTELS CORP 2,962.50 0.036
100 HOMESTAKE MINING CO 887.50 0.011
300 HEINZ H J CO 15,243.75 0.183
100 HONEYWELL INC 6,850.00 0.082
200 HOUSTON INDS INC 5,337.50 0.064
100 HELMERICH & PAYNE INC 6,787.50 0.082
100 HERCULES INC 5,006.25 0.060
100 HARNISCHFEGER INDUSTRIES INC 3,531.25 0.042
100 BLOCK H & R INC 4,481.25 0.054
200 HEALTHSTH CORP * 5,550.00 0.067
200 HARRIS CORP 9,175.00 0.110
100 HERSHEY FOODS CORP 6,193.75 0.074
100 HUMANA INC. * 2,062.50 0.025
1,100 HEWLETT PACKARD CO 68,750.00 0.826
100 INLAND STEEL INDUSTRIES INC 1,712.50 0.021
1,100 INTERNATIONAL BUSINESS MACHINES 115,018.75 1.383
100 INTERNATIONAL FLAVORS & FRAGRANCES 5,143.75 0.062
100 ITT INDUSTRIES, INC. 3,137.50 0.038
100 IKON OFFICE SOLUTIONS 2,800.00 0.034
1,900 INTEL CORP 133,475.00 1.604
300 INTERNATIONAL PAPER CO 12,937.50 0.156
100 INTERPUBLIC GROUP COS 4,981.25 0.060
100 INGERSOLL RAND CO 4,050.00 0.049
100 ITT CORPORATION * 8,287.50 0.100
200 ILLINOIS TOOL WORKS INC 12,012.50 0.144
200 JOHNSON CONTROLS INC 9,500.00 0.114
300 PENNEY J C INC 18,093.75 0.218
100 HARLAND JOHN H CO 2,093.75 0.025
1,600 JOHNSON & JOHNSON 105,400.00 1.267
100 JOSTENS INC 2,312.50 0.028
100 JEFFERSON PILOT CORP 7,793.75 0.094
200 MORGAN J P & CO INC 22,575.00 0.271
400 KELLOGG CO 19,850.00 0.239
100 KAUFMAN & BROAD HOME CORP 2,243.75 0.027
300 KEYCORP NEW 21,243.75 0.255
100 KLA-TENCOR CORP * 3,862.50 0.046
400 K MART CORP * 4,600.00 0.055
700 KIMBERLY CLARK CORP 34,562.50 0.415
100 KERR MCGEE CORP 6,331.25 0.076
3,200 COCA COLA CO 213,200.00 2.563
200 KROGER CO * 7,400.00 0.089
450 MBNA CORP 12,290.63 0.148
100 KNIGHT RIDDER INC 5,206.25 0.063
100 KING WORLD PRODUCTIONS INC 5,750.00 0.069
100 LONGS DRUG STORES INC 3,225.00 0.039
300 LAIDLAW INC 4,068.75 0.049
100 LIZ CLAIBORNE 4,181.25 0.050
1,200 LILLY ELI & CO 83,550.00 1.004
200 LOCKHEED MARTIN CORP 19,700.00 0.237
100 LINCOLN NATIONAL CORP INDUSTRIES 7,806.25 0.094
100 LOWES COS INC 4,768.75 0.057
100 LOUISIANA PACIFIC CORP 1,900.00 0.023
100 LSI LOGIC * 1,975.00 0.024
100 LIMITED INC 2,550.00 0.031
100 LOEWS CORP 10,612.50 0.128
800 LUCENT TECHNOLOGIES 63,900.00 0.768
150 SOUTHWEST AIRLINES CO 3,712.50 0.045
100 MARRIOTT INTERNATIONAL INC 6,925.00 0.083
100 MASCO CORP 5,087.50 0.061
300 MATTEL INC 11,175.00 0.134
300 MAY DEPARTMENT STORES CO 15,806.25 0.190
200 MBIA 13,362.50 0.161
800 MCDONALDS CORP 37,900.00 0.456
800 MCI COMMUNICATIONS CORP 34,250.00 0.412
100 MOORE LTD 1,518.75 0.018
100 MCDERMOTT INTERNATIONAL INC 3,662.50 0.044
400 MEDTRONIC INC 20,925.00 0.252
200 MEAD CORP 5,600.00 0.067
200 MELLON BANK CORP 12,125.00 0.146
400 MERRILL LYNCH & CO INC 29,175.00 0.351
100 MCGRAW HILL COS INC 7,400.00 0.089
100 MORTON INTERNATIONAL INC 3,437.50 0.041
100 MILLIPORE CORP 3,387.50 0.041
100 MIRAGE RESORTS * 2,275.00 0.027
100 MALLINCKRODT GROUP INC 3,800.00 0.046
200 MARSH & MCLENNAN COS 14,912.50 0.179
500 MINNESOTA MINING & MANUFACTURING 41,031.25 0.493
100 MANOR CARE INC 3,500.00 0.042
2,800 PHILIP MORRIS COS INC 126,875.00 1.525
900 MOBIL CORP 64,912.50 0.780
700 MOTOROLA INC 39,943.75 0.480
1,400 MERCK & CO INC 147,875.00 1.778
100 USX MARATHON GROUP 3,375.00 0.041
1,400 MICROSOFT CORP * 180,950.00 2.175
100 MERCANTILE STORES INC 6,087.50 0.073
700 MONSANTO CO 29,400.00 0.353
200 MGIC INVESTMENT 13,362.50 0.161
100 MICRON TECHNOLOGY INC * 2,600.00 0.031
700 DEAN WITTER DISCOVER & CO 41,256.25 0.496
100 MAYTAG CORP 3,731.25 0.045
100 INCO LTD 1,700.00 0.020
100 NAVISTAR INTERNATIONAL CORP * 2,481.25 0.030
800 NATIONSBANK CORP 48,650.00 0.585
100 NACCO INDUSTRIES INC 10,718.75 0.129
300 NATIONAL CITY CORP 19,725.00 0.237
100 NEWMONT MINING CORP 2,931.25 0.035
300 NIKE INC 11,775.00 0.142
100 NALCO CHEMICAL CO 3,956.25 0.048
100 NEXTLEVEL SYSTEMS * 1,787.50 0.021
100 NIAGARA MOHAWK POWER CORP * 1,050.00 0.013
1,200 NORWEST CORP 46,350.00 0.557
100 NORDSTROM INC 6,037.50 0.073
100 NORTHROP GRUMMAN CORP 11,537.50 0.139
300 NOVELL INC * 2,250.00 0.027
300 NORFOLK SOUTHERN CORP 9,243.75 0.111
100 NATIONAL SERVICE INDUSTRIES INC 4,968.75 0.060
100 NATIONAL SEMICONDUCTOR * 2,593.75 0.031
100 NORTHERN STATES POWER MINNESSOTA 5,825.00 0.070
300 NORTHERN TELECOM LTD 26,700.00 0.321
100 NUCOR CORP 4,825.00 0.058
100 NEWELL CO 4,250.00 0.051
100 NEW YORK TIMES CO 6,593.75 0.079
100 QUAKER OATS CO 5,275.00 0.063
100 OWENS-ILLINOIS * 3,793.75 0.046
100 ONEOK INC * 4,031.25 0.048
700 BANC ONE CORP 38,018.75 0.457
1,100 ORACLE CORP * 24,543.75 0.295
100 ORYX ENERGY COMPANY * 2,550.00 0.031
100 OWENS CORNING 3,412.50 0.041
300 OCCIDENTAL PETROLEUM CORP 8,793.75 0.106
300 PHILLIPS PETROLEUM CO 14,587.50 0.175
200 PITNEY BOWES INC 17,987.50 0.216
100 PEP BOYS MANNY MOE & JACK 2,387.50 0.029
200 PACCAR INC 10,500.00 0.126
400 PACIFIC GAS & ELECTRIC CO 12,150.00 0.146
100 POTLATCH CORP 4,300.00 0.052
100 PHELPS DODGE CORP 6,237.50 0.075
100 PLACER DOME INC 1,268.75 0.015
100 PECO ENERGY CO 2,437.50 0.029
100 PUBLIC SERVICE ENTERPRISE 3,168.75 0.038
1,600 PEPSICO INC 58,300.00 0.701
100 PACIFIC ENTERPRISES 3,762.50 0.045
1,500 PFIZER INC 111,843.75 1.344
1,600 PROCTER & GAMBLE CO 127,700.00 1.535
100 PEOPLES ENERGY CORP 3,943.75 0.047
100 PROGRESSIVE CORP 11,981.25 0.144
100 PARKER HANNIFIN CORP 4,587.50 0.055
100 PIONEER HI BRED INTL 10,725.00 0.129
100 PULTE CORP 4,181.25 0.050
100 PERKIN ELMER CORP 7,106.25 0.085
100 PALL CORP 2,068.75 0.025
100 PARAMETRIC TECHNOLOGY * 4,737.50 0.057
300 PNC BANK CORP 17,118.75 0.206
400 PHARMACIA & UPJOHN 14,650.00 0.176
44 PHARMERICA INC * 503.25 0.006
100 PPG INDUSTRIES INC 5,712.50 0.069
100 PP&L RESOURCES 2,393.75 0.029
300 PACIFICORP 8,175.00 0.098
100 POLAROID CORP 4,868.75 0.059
100 PROVIDIAN FINANCIAL CORP 4,518.75 0.054
100 PRAXAIR INC 4,500.00 0.054
100 PENNZOIL CO 6,681.25 0.080
100 RYDER SYSTEM INC 3,281.25 0.039
100 RITE AID CORP 5,868.75 0.071
100 RALSTON PURINA CO 9,293.75 0.112
100 RUBBERMAID INC 2,500.00 0.030
100 REEBOK INTL LTD * 2,868.75 0.034
2,500 ROYAL DUTCH PETROLEUM CO 135,312.50 1.627
100 ROWAN COS INC * 3,050.00 0.037
100 REYNOLDS METALS CO 6,000.00 0.072
100 RUSSELL CORP 2,656.25 0.032
100 REPUBLIC NEW YORK CORP 11,418.75 0.137
100 ROHM & HAAS CO 9,500.00 0.114
100 ROCKWELL INTERNATIONAL CORP 5,225.00 0.063
300 RAYTHEON CO 15,150.00 0.182
200 RAYCHEM CORP 8,612.50 0.104
51 RAYTHEON CO * 2,514.94 0.030
500 SEARS ROEBUCK & CO 22,625.00 0.272
100 SAFECO CORP 4,875.00 0.059
200 SUNAMERICA 8,550.00 0.103
1,000 SBC COMMUNICATIONS INC 73,250.00 0.881
300 CHARLES SCHWAB 12,581.25 0.151
100 SEAGATE TECH * 1,918.75 0.023
100 SCIENTIFIC ATLANTA INC 1,675.00 0.020
100 SILICON GRAPHICS INC * 1,243.75 0.015
800 SCHERING PLOUGH CORP 49,750.00 0.598
200 SHERWIN WILLIAMS CO 5,550.00 0.067
100 SIGMA ALDRICH CORP 3,975.00 0.048
100 SAFETY KLEEN CORP 2,743.75 0.033
600 SCHLUMBERGER LTD 48,300.00 0.581
600 SARA LEE CORP 33,787.50 0.406
100 SPRINGS INDUSTRIES INC 5,200.00 0.063
100 SHARED MEDICAL SYSTEMS CORP 6,587.50 0.079
100 SNAP ON INC 4,362.50 0.052
100 SONAT INC 4,575.00 0.055
600 SOUTHERN CO 15,487.50 0.186
100 ST PAUL COS INC 8,206.25 0.099
100 SERVICE CORP INTL 3,693.75 0.044
300 SUNTRUST BANKS INC 21,412.50 0.257
100 ST JUDE MEDICAL INC * 3,050.00 0.037
100 STONE CONTAINER CORP * 1,043.75 0.013
100 STATE STREET CORP 5,818.75 0.070
100 SUN INC 4,225.00 0.051
300 SUN MICROSYSTEMS INC * 11,962.50 0.144
100 SUPERVALU INC 4,187.50 0.050
100 STANLEY WORKS 4,718.75 0.057
100 SYSCO CORP 4,556.25 0.055
1,900 AT&T CORP 116,375.00 1.399
100 TRANSAMERICA CORP 10,650.00 0.128
200 TANDY CORP 7,712.50 0.093
400 TELE-COMMUNICATIONS SERIES A TCI GROUP * 11,175.00 0.134
150 TEKTRONIX INC 5,953.13 0.072
100 TENNECO INC 3,950.00 0.047
300 TENET HEALTHCARE CORP * 9,918.75 0.119
100 TEMPLE INLAND INC 5,237.50 0.063
200 TJX COS INC 6,875.00 0.083
200 TIMKEN CO 6,875.00 0.083
100 TIMBER COMPANY CORP * 2,281.25 0.027
100 TELLABS INC * 5,287.50 0.064
100 TIMES MIRROR CO 6,150.00 0.074
200 TORCHMARK CORP 8,412.50 0.101
100 THERMO ELECTRIC * 4,450.00 0.053
100 THOMAS & BETTS CORP 4,725.00 0.057
100 TOYS 'R' US HOLDING COS. * 3,143.75 0.038
100 TRIBUNE CO NEW 6,243.75 0.075
1,219 TRAVELERS GROUP INC 65,673.63 0.789
100 TRW INC 5,343.75 0.064
100 TUPPERWARE CORP. 2,787.50 0.034
700 TIME WARNER INC 43,400.00 0.522
515 TEXACO INC 28,003.13 0.337
400 TEXAS INSTRUMENTS INC 18,000.00 0.216
200 TEXTRON INC 12,500.00 0.150
200 TEXAS UTILITIES HOLDING COS 8,312.50 0.100
600 TYCO INTERNATIONAL LTD 27,037.50 0.325
100 USAIRWAYS GROUP INC. * 6,250.00 0.075
100 UNION CAMP CORP 5,368.75 0.065
300 UNOCAL CORP 11,643.75 0.140
100 UNICOM CORP 3,043.75 0.037
100 UNION ELECTRIC CO 4,318.75 0.052
100 UNISYS CORP * 1,387.50 0.017
100 UNION CARBIDE CORP 4,293.75 0.052
500 U S WEST INC 14,437.50 0.174
800 UNILEVER N. V. 49,950.00 0.600
100 UNITED HEALTHCARE CORP 4,981.25 0.060
200 UNUM CORP 10,875.00 0.131
300 UNION PACIFIC CORP 18,750.00 0.225
100 UNION PACIFIC RESOURCES GROUP 2,425.00 0.029
300 US BANCORP 33,581.25 0.404
100 UNITED STATES SURGICAL 2,918.75 0.035
100 UST INC 3,693.75 0.044
600 U S WEST INC * 27,075.00 0.325
300 UNITED TECHNOLOGIES CORP 21,843.75 0.263
200 V F CORP 9,200.00 0.111
300 VIACOM INC * 12,431.25 0.149
300 SEAGRAM LTD 9,712.50 0.117
100 WESTVACO CORP 3,150.00 0.038
400 WALGREEN CO 12,550.00 0.151
100 WESTERN ATLAS INC * 7,306.25 0.088
200 WASHINGTON MUTUAL, INC 12,762.50 0.153
200 WACHOVIA CORP 16,175.00 0.194
1,100 WORLDCOM INC * 33,275.00 0.400
100 WENDYS INTL INC 2,406.25 0.029
100 WELLS FARGO & CO DEL 33,943.75 0.408
100 WHITMAN CORP 2,606.25 0.031
100 WHIRLPOOL CORP 5,500.00 0.066
100 WINN DIXIE STORES INC 4,325.00 0.052
300 WARNER LAMBERT CO 37,200.00 0.447
200 WILLAMETTE INDUSTRIES INC 6,400.00 0.077
200 WILLIAMS COS INC 5,675.00 0.068
2,700 WAL MART STORES INC 106,481.25 1.280
400 WASTE MANAGEMENT INC * 11,000.00 0.132
100 WORTHINGTON INDUSTRIES INC 1,650.00 0.020
100 WRIGLEY WM JR CO 7,962.50 0.096
100 WEYERHAEUSER CO 4,906.25 0.059
100 USX-U S STEEL 3,125.00 0.038
2,900 EXXON CORP 177,443.75 2.133
400 XEROX CORP 29,525.00 0.355
130 TRICON GLOBAL RESTURANTS* 3,778.13 0.045
100 WOOLWORTH CORP* 2,037.78 0.024
- ------ ------ ------
146,951 $8,318,913.00 100.00
</TABLE>
[FN]
* Non-income producing
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Notes to Financial Statements
1. Significant Accounting Policies
Trust Sponsor and Evaluator
Ranson & Associates, Inc. serves as the Trust's sponsor and evaluator.
Valuation of Investments
As of the date of the financial statements and during the Trust's primary
offering period, Stocks are stated at offering prices as determined by Ranson &
Associates, Inc. At the end of the primary period and thereafter, the Stocks
will be valued at closing bid prices as determined by Ranson & Associates, Inc.
Cost of Investments
Cost of the Trust's Stocks is based on the offer prices of the Stocks on the
dates of deposits of such Securities acquired during the primary sales period,
as determined by the Evaluator. Realized gain (loss) from investment
transactions is reported on a first-in, first-out basis.
Investment Income
Dividends are recorded on the ex-dividend date.
2. Unrealized Appreciation and Depreciation
Following is an analysis of net unrealized appreciation at December 31, 1997:
<TABLE>
<CAPTION>
<S> <C>
Gross unrealized appreciation $847,622
Gross unrealized depreciation (232,990)
----------
Net unrealized appreciation $614,632
=========
</TABLE>
3. Federal Income Taxes
The Trust is organized as a regulated investment company under Subchapter M of
the Internal Revenue Code of 1986, as amended (the "Code"). It is the Trust's
policy to comply with the special provisions of the Code available to regulated
investment companies. Such provisions were complied with and, therefore, no
federal income tax provision is required.
4. Other Information
Cost to Investors
The cost to original investors of Units of the Trust was based on the aggregate
offering price of the Stocks on the date of an investor's purchase, plus a sales
charge of 4.90% of the Public Offering Price (equivalent to 5.15% of the net
amount invested). The Public Offering Price for secondary market transactions
is based on the aggregate bid price of the Stocks plus or minus a pro rata share
of cash or overdraft in the Principal Account, if any, on the date of an
investor's purchase, plus a sales charge of 4.90% of the Public Offering Price
(equivalent to 5.15% of the net amount invested).
<PAGE>
Ranson Unit Investment Trusts
S&P 500 Index Trust
Series 2
Notes to Financial Statements (continued)
Distributions
Distributions of net investment income to Unitholders are declared and paid
quarterly. Income distributions, on a record date basis, are as follows:
<TABLE>
<CAPTION>
Period from
March 6, 1997 to
Distribution December 31, 1997
Plan Per Unit Total
<S> <C> <C> <C> <C> <C> <C>
- ----- --------- ----------
Quarterly $.06 $29,206
</TABLE>
In addition, the Trust redeemed Units with proceeds from the sale of Stocks as
follows:
<TABLE>
<CAPTION>
Period from
March 6,
1997 to
December 31,
1997
<S> <C>
----------
Principal portion $6,648
Net investment income accrued 15
----------
$6,663
=========
Units 713
=========
</TABLE>
In addition, distribution of principal related to the sale of securities is
$.108 per Unit for the period ended December 31, 1997.
<PAGE>
Consent of Independent Auditors
We consent to the reference to our firm under the caption "Independent Auditors"
and to the use of our report dated April 16, 1998, in this Post-Effective
Amendment to the Registration Statement (Form S-6) and related Prospectus of
Ranson Unit Investment Trusts, S&P 500 Index Trust, Series 2 dated April 30,
1998.
Ernst & Young LLP
Kansas City, Missouri
April 30, 1998
<PAGE>
Contents of Post-Effective Amendment
To Registration Statement
This Post-Effective amendment to the Registration Statement
comprises the following papers and documents:
The facing sheet
The prospectus
The signatures
The Consent of Independent Accountants
<PAGE>
Signatures
Pursuant to the requirements of the Securities Act of 1933,
The Registrant, Ranson Unit Investment Trusts Series 55,
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 Amendment to the
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Wichita,
and State of Kansas, on the 30th day of April, 1998.
Ranson Unit Investment Trusts
Series 55
Registrant
By: Ranson & Associates, Inc.
Depositor
By: Robin Pinkerton
President
Pursuant to the requirements of the Securities Act of 1933,
this Amendment to the Registration Statement has been signed
below on April 30, 1998 by the following persons, who constitute
a majority of the Board of Directors of Ranson & Associates, Inc.
Signature Title
Douglas K. Rogers Executive Vice and President and Director
Douglas K. Rogers
Alex R. Meitzner Chairman of the Board and Director
Alex R. Meitzner
Robin K. Pinkerton President, Secretary, Treasurer and
Robin K. Pinkerton Director
Robin Pinkerton
An executed copy of each of the related powers of attorney
was filed with the Securities and Exchange Commission in
connection with the Registration Statement on Form S-6 of The
Kansas Tax-Exempt Trust, Series 51 (File No. 33-46376) and
Series 52 (File No. 33-47687) and the same are hereby
incorporated herein by this reference.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM RANSON S & P 500 INDEX TRUST SERIES 2
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<SERIES>
<NUMBER> 02
<NAME> RANSON S & P 500 INDEX TRUST SERIES 2
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-END> Dec-31-1997
<INVESTMENTS-AT-COST> 7,704,281
<INVESTMENTS-AT-VALUE> 8,318,913
<RECEIVABLES> 11,776
<ASSETS-OTHER> 25,053
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,355,742
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 35,264
<TOTAL-LIABILITIES> 35,264
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,705,846
<SHARES-COMMON-STOCK> 738,400
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1,565
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 614,632
<NET-ASSETS> 8,320,478
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 81,906
<OTHER-INCOME> 0
<EXPENSES-NET> 20,356
<NET-INVESTMENT-INCOME> 61,550
<REALIZED-GAINS-CURRENT> 106,785
<APPREC-INCREASE-CURRENT> 614,632
<NET-CHANGE-FROM-OPS> 782,967
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (29,211)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 713
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<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>
