File No. 333-70737 CIK #910943
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 75
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 28, 2000 pursuant to paragraph (b) of
Rule 485.
<PAGE>
RANSON UNIT INVESTMENT TRUSTS, SERIES 75
S&P SmallCap 600 Index Trust, Series 2 (the "Trust" or the "S&P SmallCap 600
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 600 Composite Stock Price Index (the "S&P
SmallCap 600 Index"). By investing in substantially all of the common stocks,
in substantially the same proportions, which comprise the S&P SmallCap 600
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 SmallCap 600 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 SmallCap 600 Index Trust, Series 2 (the "Trust") is a unit
investment trust included in Ranson Unit Investment Trusts, Series 75 (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 SmallCap 600 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 SmallCap 600 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 represented by each
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* "S&P(R)", "Standard & Poor's(R)", "S&P SmallCap 600" and "Standard & Poor's
600" are trademarks of The McGraw-Hill Companies, Inc. and have been
licensed for use by the Sponsor.
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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."
THE TRUST FUND
Ranson Unit Investment Trusts, Series 75 (the "Fund") consists of separate
underlying unit investment trusts including S&P SmallCap 600 Index Trust, Series
2 (the "Trust"). The Fund was created under the laws of the State
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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 SmallCap 600 Trust contains common stocks issued by substantially all of
the companies which comprise the S&P SmallCap 600 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 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.
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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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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 SmallCap 600 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 SmallCap 600 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 SmallCap 600 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 SmallCap 600 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.
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.
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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 SMALLCAP 600 INDEX
The S&P SmallCap 600 Index is composed of 600 domestic stocks chosen for market
size, liquidity (bid-asked spread, ownership, share turnover and number of no
trade days) and industry group representation. As of April 28, 2000 the S&P
SmallCap 600 Index was comprised of the following industry sectors: Industrials
(84.7%), Financials (8.5%), Utilities (3.6%) and Transportation (3.2%). As of
April 28, 2000 the companies in the S&P SmallCap 600 Index were listed on the
following stock exchanges in the amounts indicated: New York Stock Exchange-324
companies (54%), Nasdaq National Market-264 companies (44%) and American Stock
Exchange-12 companies (2%). At present, the mean market capitalization of the
companies in the S&P SmallCap 600 Index is approximately $639 million. As of
April 28, 2000 the S&P SmallCap 600 Index had a total market value of $384
billion.
The following table depicts the Year-End Index Value for the S&P SmallCap 600
Index for the period shown. Investors should note that the table represents
past performance of the S&P SmallCap 600 Index and not the past or future
performance of the Trust (which includes certain fees and expenses). Past
performance is, of course, 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
SmallCap 600 Index in the future.
<TABLE>
<CAPTION>
Average Year-End
Change in Dividend Index Value
Year-End Index Yield Dividends
Year-End Index Value* For Year For Year* Reinvested**
- -------- ------------ --------- --------- ------------
<S> <C> <C> <C> <C>
1993 100.00 100.00
1994 94.17 -5.83% 1.06% 95.23
1995 121.10 28.60% 1.19% 123.76
1996 145.48 20.13% 1.05% 150.14
1997 181.16 24.53% 0.91% 188.56
1998 177.37 -2.10% 0.87% 186.09
1999 197.79 11.51% 0.66% 209.18
Thru 4/28/00 205.28 3.79% 0.68% 217.55
<FN>
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* Source: Standard & Poor's. The Index was developed with a base value of 100
as of December 31, 1993. 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.
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** Assumes that cash distributions on the securities which comprise the S&P
SmallCap 600 Index are treated as reinvested in the S&P SmallCap 600 Index as
of the end of each month following the payment of the dividend. Because the
Trust is sold to the public at net asset value plus the applicable sales
charge and the expenses of the Trust are deducted before making distributions
to Unitholders, investment in the Trust would have resulted in investment
performance to Unitholders somewhat reduced from that reflected in the above
table. In addition certain Unitholders may not elect to purchase additional
Units pursuant to the 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 SmallCap 600 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. Stocks are generally selected for the
portfolio in the order of their weightings in the S&P SmallCap 600 Index,
beginning with the heaviest-weighted stocks. It is anticipated that at the end
of the Initial Adjustment Period, the percentage of the Trust's assets invested
in each stock will be approximately the same as the percentage it represents in
the S&P SmallCap 600 Index.
The Trust has entered into a license agreement with Standard & Poor's (the
"License Agreement"), under which the Trust is granted licenses to use the
trademark and tradename "S&P 600" 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 the Trust's portfolio. As consideration for the grant of the
license, the Trust will pay to Standard & Poor's an annual fee equal to .02% of
the average net asset value of the Trust (or, if greater, $10,000). The License
Agreement permits the Trust to substitute another index for the S&P SmallCap 600
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 Trust and the index is not maintained, the
Sponsor may direct that the Trust continue to be operated using the S&P SmallCap
600 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 Trust-
Amendment and Termination").
Neither the 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 SmallCap 600 Index, except as specifically
described herein or as may be specified in the Trust Agreement.
The 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 the Trust or any member of the public regarding the advisability of
investing in securities generally or in the Trust particularly or the ability of
the S&P SmallCap 600 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 SmallCap 600 Index which is determined,
composed and calculated by S&P without regard to the Licensee or the Trust. S&P
has no obligation to take the needs of the Licensee or the owners of the Trust
into consideration in determining, composing or calculating the S&P SmallCap 600
Index. S&P is not responsible for and has not participated in the determination
of the prices and amount of the Trust or the timing of the issuance or sale of
the Trust or in the determination or calculation of the equation by which the
Trust is to be converted into cash. S&P has no obligation or liability in
connection with the administration, marketing or trading of the Trust.
S&P does not guarantee the accuracy and/or the completeness of the S&P SmallCap
600 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 Trust, any person or
any entity from the use of the
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S&P SmallCap 600 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, with respect to the S&P SmallCap 600
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(R)", "S&P(R)", "S&P 600(R)",
"Standard & Poor's 600", and "600" are trademarks of The McGraw-Hill Companies,
Inc. and have been licensed for use by the Trust. The 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 the 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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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.
The Trust invests in stocks of small companies. These stocks often involve more
investment risk than stocks of larger companies. Smaller companies may have
limited product lines, markets or financial resources. These companies may lack
management depth or experience and may depend heavily on key personnel. These
stocks may be less liquid and have less information about their business
available to the public. These stocks also tend to be more vulnerable to
adverse economic or market developments than larger company stocks. Some of
these companies may invest in, distribute or produce products that have only
recently been introduced. All of these factors could affect the value of Units.
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 intends to elect and 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.
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<PAGE>
Distributions to unitholders of the trust's income, other than distributions
which are designated as capital gain dividends, will be taxable as ordinary
income to unitholders, except that 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
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.
Although distributions generally will be treated as distributed when paid,
distributions declared in October, November or December payable to unitholders
of record on a specified date in one of those months and paid during January of
the following year will be treated as having been distributed by the trust (and
received by the unitholder) on December 31 of the year such distributions are
declared.
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. 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. The
Internal Revenue Service Restructuring and Reform Act of 1998 (the "1998 Tax
Act") provides that 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) realized from property (with certain exceptions) is
generally subject to a maximum marginal stated tax rate of 20% (10% in the case
of certain taxpayers in the lowest tax bracket). Capital gain or 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. The date on which
a unit is acquired (i.e., the "trade date") is excluded for purposes for
determining the holding period of the unit. Capital gains realized from assets
held for one year or less are taxed at the same rates as ordinary income. Note
that if a unitholder holds units for six months or less and subsequently sells
such units at a loss, the loss will be treated as a long-term capital loss to
the extent that any long-term capital gain distribution is made with respect to
such units during the six-month period or less that the unitholder owns the
units. In addition, please note that capital gains may be recharacterized as
ordinary income in the case of certain financial transactions that are
considered "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 Taxpayer Relief Act of 1997 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. Unitholders should consult their tax advisers with regard to any such
constructive sales rules.
Generally, the tax basis of a unitholder includes sales charges, and such
charges are not deductible. A portion of the sales charge for the trust may be
deferred. The income (or proceeds from redemption) a unitholder must take into
account for federal income tax purposes is not reduced by amounts deducted to
pay any deferred sales charge.
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 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 the trust as being eligible for
such deduction. To the extent dividends received
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<PAGE>
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 paid by domestic
corporations. The trust will provide each unitholder with information annually
concerning what part of the trust distributions are eligible for the dividends
received deduction.
The trust may elect to pass through to the unitholders the foreign income and
similar taxes paid by the trust in order to enable such unitholders to take a
credit (or deduction) for foreign income taxes paid by the trust. If such an
election is made, unitholders of the trust, because they are deemed to own a pro
rata portion of the foreign securities held by the trust, must include in their
gross income, for federal income tax purposes, both their portion of dividends
received by the trust and also their portion of the amount which the trust deems
to be the unitholders' portion of foreign income taxes paid with respect to, or
withheld from, dividends, interest or other income of the trust from its foreign
investments. Unitholders may then subtract from their federal income tax the
amount of such taxes withheld, or else treat such foreign taxes as deductions
from gross income; however, as in the case of investors receiving income
directly from foreign sources, the above described tax credit or deduction is
subject to certain limitations. A required holding period for such credits is
imposed. Unitholders should consult their tax advisers regarding this election
and its consequences to them.
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).
Under certain circumstances a unitholder may be able to request an in kind
distribution upon termination of the trust. Unitholders electing an in kind
distribution of stock should be aware that the exchange is subject to taxation
and unitholders will recognize gain or loss based on the value of the securities
received. Investors electing an in kind distribution should consult their own
tax advisers with regard to such transactions.
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 to such unitholder (including amounts received upon the
redemption of units) will be subject to back-up withholding.
The foregoing discussion relates only to the federal income tax status of
your trust and to the tax treatment of distributions by the trust to United
States unitholders.
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<PAGE>
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 a 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 a 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.
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.
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<PAGE>
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 Ranson Unit Investment Trusts 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).
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. 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
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<PAGE>
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 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 4.00%
10,000 but less than 25,000 3.60
25,000 but less than 50,000 3.50
50,000 but less than 100,000 2.70
100,000 or more 2.20
<FN>
- --------------------
* The breakpoint discounts are also applied on a dollar basis utilizing a
breakpoint equivalent in the above table of $10 per Unit.
</TABLE>
In addition, volume concessions will be allowed as described in the table below.
These volume concessions will be paid to a selling firm based on aggregate sales
of all primary Ranson indexed equity unit investment trust by the firm during a
single calendar month.
<TABLE>
<CAPTION>
Aggregate Unit Sales Additional Volume Concession
-------------------- ----------------------------
<S> <C>
$500,000 -$999,999 .10%
$1,000,000 -$1,999,999 .15%
$2,000,000 -$3,999,999 .20%
$4,000,000 -$5,999,999 .25%
$6,000,000 -$9,999,999 .30%
$10,000,000 -$14,999,999 .35%
$15,000,000 -$19,999,999 .40%
$20,000,000 -$49,999,999 .45%
$50,000,000 or more .50%
</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
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<PAGE>
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 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
15
<PAGE>
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.
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,
16
<PAGE>
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.
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
17
<PAGE>
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 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."
18
<PAGE>
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 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.
19
<PAGE>
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.
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,
20
<PAGE>
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."
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.
21
<PAGE>
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.
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" in Part Two. If the value of the
Trust shall be less than the applicable minimum value stated under "Essential
Information" in Part Two (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.
22
<PAGE>
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 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.
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.
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.
23
<PAGE>
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 Licensor receives an annual fee from the 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 Trust of the use of various trademarks and trade names as
described under "The S&P SmallCap 600 Index."
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 Trust may pay the
costs associated with updating its registration each year. The fees
24
<PAGE>
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 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.
--------------------
25
<PAGE>
<TABLE>
<CAPTION>
Contents Page
- -------- ----
<S> <C>
SUMMARY 2
THE TRUST FUND 3
THE TRUST PORTFOLIO 5
THE S&P SMALLCAP 600 INDEX 6
RISK FACTORS 8
FEDERAL TAX STATUS 9
PUBLIC OFFERING OF UNITS 12
Public Offering Price 12
Public Distribution of Units 13
Sponsor Profits 14
MARKET FOR UNITS 15
REDEMPTION 15
General 15
Computation of Redemption Price 16
RETIREMENT PLANS 16
UNITHOLDERS 17
Ownership of Units 17
Distributions to Unitholders 17
Distribution Reinvestment 18
Statements to Unitholders 19
Rights of Unitholders 19
INVESTMENT SUPERVISION 20
ADMINISTRATION OF THE TRUST 20
The Trustee 20
The Sponsor 21
The Evaluator 22
Amendment and Termination 22
Limitations on Liability 23
EXPENSES OF THE TRUST 24
LEGAL OPINIONS 25
INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS 25
</TABLE>
<PAGE>
RANSON
UNIT
INVESTMENT
TRUSTS
PROSPECTUS
S&P SMALLCAP INDEX TRUST, SERIES 2
PROSPECTUS PART ONE
<PAGE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Part Two
Dated April 28, 2000
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 SmallCap 600 Index Trust
Series 2
Essential Information
As of December 31, 1999
Sponsor and Evaluator: Ranson & Associates, Inc.
Trustee: The Bank of New York Co.
<TABLE>
<CAPTION>
<S> <C>
General Information
Agregate Value of Securities in the Trust $4,970,524
Number of Units 458,625
Fractional Undivided Interest in the Trust per Unit 1/458,625
Aggregate Value of Securities per Unit $10.838
Public Offering Price:
Aggregate Value of Securities in Portfolio $4,970,524
Aggregate Value of Securities per Unit $10.838
Net Cash per Unit (1) $-
Sales Charge of 3.00% of Public Offering Price
(3.093% of net amount invested) per Unit $.335
Public Offering Price per Unit $11.173
Redemption Price per Unit $10.838
</TABLE>
Minimum Value of the Trust under which Trust agreement may be terminated if
Trust Agreement may be Terminated value of the trust is less than
$546,418 (40% of the aggregate value
of the Securities at deposit).
Date of Trust Agreement January 20, 1999
Mandatory Termination Date February 28, 2005
Evaluator's Annual Evaluation Fee Maximum of $.0025 per Unit
Supervisor's Annual Surveillance Fee Maximum of $.0025 per Unit
Trustee's Annual Fee $.0095 per Unit
S&P SmallCap 600 Index 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.
[FN]
(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.
<PAGE>
Report of Independent Auditors
Unitholders
Ranson Unit Investment Trusts
S&P Small Cap 600 Index Trust
Series 2
We have audited the accompanying statement of assets and liabilities of Ranson
Unit Investment Trusts, S&P SmallCap 600 Index Trust, Series 2, including the
schedule of investments, as of December 31, 1999, and the related statement of
operations and changes in net assets for the period from January 20, 1999 (Date
of Deposit) to December 31, 1999. 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 auditing standards generally accepted
in the United States. 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,
1999, 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 Trusts,
S&P SmallCap 600 Index Trust, Series 2 at December 31, 1999, and the results of
its operations and changes in its net assets for the period indicated above in
conformity with accounting principles generally accepted in the United States.
Ernst & Young LLP
Kansas City, Missouri
April 14, 2000
<PAGE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Statement of Assets and Liabilities
December 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
Assets
Securities, at value (cost $4,522,870) $4,970,524
Dividends receivable 2,429
Receivable from securities sold 8,684
Prepaid expense 803
---------
Total assets 4,982,440
Liabilities and net assets
Cash overdraft 9,009
Payable for securities purchased 8,056
Accrued liabilities 5,513
Due to unitholders 102
------
22,680
Net assets, applicable to 458,625 Units outstanding:
Cost of Trust assets, exclusive of interest $4,522,870
Unrealized appreciation 447,654
Distributable funds (10,764)
------- -------
Net assets $4,959,760
=========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Statement of Operations
<TABLE>
<CAPTION>
Period from
January 20,
1999 to
December 31,
1999
<S> <C>
------
Investment income - dividends $21,972
Expenses:
Trustee's fees and related expenses 16,464
Evaluator's and surveillance fees 3,112
Organization costs 11,869
------
Total expenses 31,445
------
Net investment loss (9,473)
Realized and unrealized gain on investments:
Realized gain on investments 51,777
Unrealized appreciation during the period 447,654
------
Net gain on investments 499,431
------
Net increase in net assets resulting from operations $489,958
=========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
Ranson Unit Investments Trusts
S&P SmallCap 600 Index Trust
Series 2
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Period from
January 20,
1999 to
December 31,
1999
<S> <C>
--------
Operations:
Net investment loss $(9,473)
Realized gain on investments 51,777
Unrealized appreciation on investments during the period 447,654
-------
Net increase in net assets resulting from operations 489,958
Distributions to Unitholders:
Net investment income (3,838)
Principal from investment transactions (39,416)
-------
Total distributions to Unitholders (43,254)
Capital transactions:
Issuance of 469,296 Units 4,613,562
Redemption of 10,671 Units (100,506)
--------
Total increase in net assets 4,959,760
Net assets:
At the beginning of the period -
--------
At the end of the period (including
distributable funds applicable to
Trusts Units of $(10,764) at December 31, 1999) $4,959,760
=========
Trust Units outstanding at the end of the period 458,625
=========
Net asset value per Unit at the end of the period $10.81
=========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
150 A.T. CROSS CO.* $675.00 0.014
400 AAR CORP. 7,175.00 0.144
300 AARON RENTS INC.* 5,325.00 0.107
300 ABM INDUSTRIES 6,112.50 0.123
200 ACTION PERFORMANCE COMPANIES* 2,300.00 0.046
300 ADAC LABORATORIES* 3,225.00 0.065
200 ADAPTIVE BROADBAND CORP.* 14,762.50 0.297
250 ADVANCE PARADIGM * 5,390.63 0.108
700 ADVANCED TISSUE SCIENCES* 1,750.00 0.035
300 ADVO INC.* 7,125.00 0.143
100 AGRIBRANDS INTERNATIONAL CORP.* 4,600.00 0.093
400 AIR EXPRESS INTERNATIONAL 12,925.00 0.260
400 ALLEN TELECOM INC.* 4,625.00 0.093
600 ALLIANCE PHARMACEUTICAL* 4,425.00 0.089
100 ALLIANT TECHSYSTEMS* 6,231.25 0.125
300 ALPHA INDUSTRIES* 17,193.75 0.346
400 ALPHARMA INC. 12,300.00 0.247
100 AMCAST INDUSTRIAL 1,637.50 0.033
400 AMCOL INTERNATIONAL CORP. 6,450.00 0.130
400 AMERICAN FREIGHTWAYS* 6,475.00 0.130
550 AMERICAN MANAGEMENT SYSTEMS* 17,256.25 0.347
1,050 AMERICAN ONCOLOGY RESOURCES* 5,184.38 0.104
100 AMERICAN STATES WATER 3,600.00 0.072
200 AMERICAN XTAL TECHNOLOGIES* 3,487.50 0.070
950 AMERICREDIT CORP.* 17,575.00 0.354
400 AMES DEPT STORES* 11,525.00 0.232
600 AMRESCO INC.* 843.75 0.017
200 ANALOGIC CORP. 6,600.00 0.133
300 ANALYSTS INTERNATIONAL 3,750.00 0.075
300 ANCHOR BANCORP 4,537.50 0.091
200 ANCHOR GAMING* 8,687.50 0.175
100 ANGELICA CORP. 975.00 0.020
500 ANIXTER INTERNATIONAL* 10,312.50 0.207
400 ANNTAYLOR STORES CORP.* 13,775.00 0.277
300 APEX INC.* 9,675.00 0.195
350 APOGEE ENTERPRISES 1,771.88 0.036
400 APPLEBEE'S INTERNATIONAL* 11,800.00 0.237
300 APPLIED INDUSTRIAL TECHNOLOGIES 4,987.50 0.100
500 APPLIED POWER 18,375.00 0.370
500 APTARGROUP, INC. 12,562.50 0.250
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
200 AQUARION CO. $7,400.00 0.149
300 ARCTIC CAT INC. 3,000.00 0.060
300 ARKANSAS BEST* 3,600.00 0.072
600 ARTESYN TECHNOLOGIES* 12,600.00 0.253
200 ARTHUR J. GALLAGHER 12,950.00 0.261
150 ASHWORTH INC.* 618.75 0.012
600 ASPECT COMMUNICATIONS* 23,475.00 0.472
300 ASPEN TECHNOLOGY* 7,931.25 0.160
300 ASTEC INDUSTRIES* 5,643.75 0.114
300 ASTORIA FINANCIAL* 4,950.00 0.100
200 ATLANTIC COAST AIRLINES HOLDINGS* 4,750.00 0.096
400 ATMOS ENERGY CORP. 8,175.00 0.164
300 AUSPEX SYSTEMS* 3,075.00 0.062
300 AUTHENTIC FITNESS 6,150.00 0.125
200 AVIATION SALES CO.* 3,300.00 0.066
300 AVID TECHNOLOGY* 3,918.75 0.079
600 AZTAR CORP.* 6,525.00 0.131
500 BALDOR ELECTRIC 9,062.50 0.182
100 BANGOR HYDRO ELECTRIC 1,631.25 0.033
300 BANKNORTH GROUP 8,025.00 0.161
300 BARNES GROUP INC. 4,893.75 0.098
300 BARR LABORATORIES* 9,412.50 0.189
200 BARRA INC.* 6,350.00 0.128
400 BARRETT RESOURCES CORP.* 11,775.00 0.237
200 BASSETT FURNITURE 3,200.00 0.064
300 BE AEROSPACE* 2,531.25 0.051
300 BELDEN INC. 6,300.00 0.127
200 BENCHMARK ELECTRONICS* 4,587.50 0.092
250 BENTON OIL & GAS* 484.38 0.010
500 BILLING INFO CONCEPTS* 3,250.00 0.065
400 BINDLEY WESTERN 6,025.00 0.121
300 BIOMATRIX, INC.* 5,775.00 0.116
700 BIO-TECHNOLOGY GENERAL* 10,675.00 0.215
350 BIRMINGHAM STEEL 1,859.38 0.037
400 BISYS GROUP* 26,100.00 0.525
300 BLACK BOX CORP.* 20,100.00 0.404
350 BMC INDUSTRIES 1,706.25 0.034
450 BOMBAY COMPANY* 2,025.00 0.041
300 BOOKS-A-MILLION* 2,493.75 0.050
500 BOWNE & CO. 6,750.00 0.136
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
300 BRADY CORP. $10,181.25 0.205
700 BRIGHTPOINT, INC.* 9,187.50 0.185
200 BROWN GROUP 2,825.00 0.057
200 BRUSH WELLMAN INC. 3,362.50 0.068
500 BUCKEYE TECHNOLOGIES* 7,437.50 0.150
200 BUILDING MATERIALS HOLDINGS* 2,050.00 0.041
750 BURR-BROWN CORP.* 27,093.75 0.545
100 BUTLER MANUFACTURING 2,231.25 0.045
200 C & D TECHNOLOGIES 8,500.00 0.171
400 CABLE DESIGN TECHNOLOGIES* 9,200.00 0.185
300 CABOT OIL & GAS 4,818.75 0.097
200 CAL DIVE INTERNATIONAL INC.* 6,625.00 0.133
300 CAMBREX CORP. 10,331.25 0.208
200 CANANDAIGUA BRANDS* 10,200.00 0.205
300 CARAUSTAR INDUSTRIES 7,200.00 0.145
100 CARMIKE CINEMAS* 781.25 0.016
300 CAROLINA FIRST CORP. 5,475.00 0.110
100 CASCADE NATURAL GAS 1,612.50 0.032
700 CASEY'S GENERAL STORES 7,306.25 0.147
300 CASH AMERICA INTERNATIONAL 2,925.00 0.059
200 CASTLE (A.M.) 2,375.00 0.048
200 CATALINA MARKETING* 23,150.00 0.466
300 CATO CORP. 3,787.50 0.076
200 C-COR ELECTRONICS* 15,325.00 0.308
500 C-CUBE MICROSYSTEMS* 31,125.00 0.626
300 CDI CORP.* 7,237.50 0.146
400 CEC ENTERTAINEMENT* 11,350.00 0.228
100 CENTIGRAM COMMUNICATION* 1,675.00 0.034
500 CENTRAL PARKING CORP. 9,562.50 0.192
100 CENTRAL VT PUB SERVICES 1,062.50 0.021
400 CENTURA BANKS 17,650.00 0.355
400 CEPHALON INC.* 13,825.00 0.278
400 CERNER CORP.* 7,875.00 0.158
200 CH ENERGY GROUP* 6,600.00 0.133
650 CHAMPION ENTERPRISES* 5,565.63 0.112
400 CHECKPOINT SYSTEMS INC.* 4,075.00 0.082
300 CHEESECAKE FACTORY* 10,500.00 0.211
100 CHEMED CORP. 2,862.50 0.058
200 CHEMFIRST INC. 4,375.00 0.088
850 CHIQUITA BRANDS INTERNATIONAL 4,037.50 0.081
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
500 CHITTENDEN CORP. $14,812.50 0.298
400 CHOICEPOINT INC.* 16,550.00 0.333
800 CIBER INC.* 22,000.00 0.443
650 CKE RESTAURANTS 3,818.75 0.077
300 CLARCOR INC. 5,400.00 0.109
300 CLARIFY CORP.* 37,800.00 0.760
200 COACHMEN INDUSTRIES 3,025.00 0.061
100 COCA-COLA BOTTLERS CONSOLIDATED 4,737.50 0.095
200 COEUR D'ALENE MINES* 687.50 0.014
600 COGNEX CORP.* 23,400.00 0.471
300 COHERENT INC.* 8,025.00 0.161
400 COMMERCE BANCORP INC. 16,175.00 0.325
800 COMMERCIAL FEDERAL CORP. 14,250.00 0.287
200 COMMERCIAL METALS 6,787.50 0.137
200 COMMONWEALTH INDUSTRIALS 2,600.00 0.052
700 COMMSCOPE INC.* 28,218.75 0.568
700 COMMUNITY FIRST BANK 11,025.00 0.222
300 COMPUTER TASK 4,443.75 0.089
200 CONCORD COMMUNICATIONS* 8,875.00 0.179
250 CONE MILLS* 1,125.00 0.023
100 CONNECTICUT ENERGY 3,887.50 0.078
200 CONSOLIDATED GRAPHICS* 2,987.50 0.060
300 CONSOLIDATED PRODUCTS* 3,037.50 0.061
400 COPART INC.* 17,400.00 0.350
300 COR THERAPEUTICS* 8,062.50 0.162
500 CORN PRODUCTS INTERNATIONAL 16,375.00 0.329
300 COST PLUS* 10,687.50 0.215
800 COVENTRY HEALTH CARE CORP.* 5,400.00 0.109
100 CPI CORP. 2,256.25 0.045
650 CROSS TIMBERS OIL 5,890.63 0.119
400 CTS CORPORATION 30,150.00 0.607
700 CULLEN FROST BANKERS 18,025.00 0.363
100 CURATIVE HEALTH SERVICES* 775.00 0.016
200 CYBEX COMPUTER PRODUCTS* 8,100.00 0.163
300 CYGNUS, INC.* 5,475.00 0.110
150 CYRK INC.* 1,781.25 0.036
850 D.R. HORTON 11,740.63 0.236
200 DAIN RAUSCHER CORP. 9,300.00 0.187
400 DALLAS SEMICONDUCTOR 25,775.00 0.519
200 DAMARK INTERNATIONAL* 3,150.00 0.063
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
200 DATASCOPE CORP.* $8,000.00 0.161
300 DBT ONLINE SERVICES* 7,312.50 0.147
306 DELPHI FINANCIAL GROUP* 9,180.00 0.185
500 DELTA AND PINE LAND 8,687.50 0.175
500 DENDRITE INTERNATIONAL* 16,937.50 0.341
200 DEPARTMENT 56 INC.* 4,525.00 0.091
200 DIAGNOSTICS PRODUCTS CORP. 4,900.00 0.099
200 DIGI INTERNATIONAL* 2,087.50 0.042
850 DIGITAL MICROWAVE* 19,921.88 0.401
500 DIMON INC. 1,625.00 0.033
300 DIONEX CORP.* 12,356.25 0.249
200 DISCOUNT AUTO PARTS* 3,612.50 0.073
100 DIXIE GROUP INC.* 737.50 0.015
400 DOWNEY FINANCIAL CORP. 8,075.00 0.162
300 DRESS BARN* 4,987.50 0.100
200 DRIL-QUIP INC.* 6,075.00 0.122
600 DURA PHARMACEUTICALS* 8,362.50 0.168
300 DYCOM INDUSTRIES* 13,218.75 0.266
200 E. W. BLANCH HOLDINGS INC. 12,250.00 0.246
400 EAGLE USA AIRFREIGHT* 17,250.00 0.347
300 EASTERN UTILITIES ASSOCIATES 9,093.75 0.183
500 EATON VANCE 19,000.00 0.382
300 ELCOR CORP. 9,037.50 0.182
200 ELECTRO SCIENTIFIC INDUSTRIES* 14,600.00 0.294
300 ELECTROGLAS, INC.* 7,612.50 0.153
400 ENERGEN CORP. 7,225.00 0.145
200 ENESCO GROUP* 2,212.50 0.045
500 ENHANCE FINANCIAL SERVICES 8,125.00 0.163
300 ENZO BIOCHEM* 13,518.75 0.272
500 EPICOR SOFTWARE CORP.* 2,531.25 0.051
300 ESTERLINE TECHNOLOGIES* 3,468.75 0.070
300 ETEC SYSTEMS* 13,462.50 0.271
500 ETHAN ALLEN INTERIORS 16,031.25 0.323
300 EXABYTE CORP.* 2,250.00 0.045
700 EXPEDITORS INTERNATIONAL 30,668.75 0.617
200 FACTSET RESEARCH 15,925.00 0.320
200 FAIR ISAAC & CO. 10,600.00 0.213
500 FEDDERS CORP. 2,750.00 0.055
400 FIDELITY NATIONAL FINANCIAL 5,750.00 0.116
400 FILENET CORP.* 10,200.00 0.205
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
850 FIRST AMERICAN FINANCIAL $10,571.88 0.213
600 FIRST MIDWEST BANCORP 15,900.00 0.320
400 FIRSTBANK PUERTO RICO 8,300.00 0.167
500 FLEMING COMPANIES 5,125.00 0.103
300 FLORIDA ROCK 10,331.25 0.208
200 FLOW INTERNATIONAL* 2,275.00 0.046
300 FOOTSTAR INC.* 9,150.00 0.184
400 FOSSIL INC.* 9,250.00 0.186
200 FRANKLIN COVEY CO.* 1,500.00 0.030
950 FREMONT GENERAL 7,006.25 0.141
500 FRIEDE GOLDMAN HALTER* 3,468.75 0.070
500 FRITZ COMPANIES* 5,250.00 0.106
450 FRONTIER INSURANCE GROUP 1,546.88 0.031
200 FROZEN FOOD EXPRESS INDUSTRIES 775.00 0.016
300 G & K SERVICES CL 9,712.50 0.195
200 GARDNER DENVER * 3,337.50 0.067
100 GC COMPANIES* 2,587.50 0.052
550 GENCORP* 5,431.25 0.109
700 GENERAL COMMUNICATION* 3,062.50 0.062
500 GENERAL SEMICONDUCTOR* 7,093.75 0.143
650 GENESIS HEALTH VENTURES* 1,340.63 0.027
1,000 GENTEX CORP.* 27,750.00 0.558
300 GEON CO. 9,750.00 0.196
300 GERBER SCIENTIFIC 6,581.25 0.132
200 GIBSON GREETING INC.* 1,793.75 0.036
300 GLOBAL INDUSTRIAL TECHNOLOGY* 3,862.50 0.078
350 GOODY'S FAMILY * 1,881.25 0.038
200 GOTTSCHALKS INC.* 1,487.50 0.030
300 GRACO INC. 10,762.50 0.217
100 GREEN MOUNTAIN POWER 743.75 0.015
350 GRIFFON CORP.* 2,734.38 0.055
300 GROUP 1 AUTO* 4,181.25 0.084
250 GUILFORD MILLS 1,812.50 0.036
250 GYMBOREE CORP.* 1,406.25 0.028
200 HADCO CORP.* 10,200.00 0.205
100 HAGGAR 1,137.50 0.023
600 HA-LO INDUSTRIES* 4,500.00 0.091
200 HANCOCK FABRICS INC. 625.00 0.013
300 HANGER ORTHOPEDIC GROUP INC.* 3,000.00 0.060
500 HARBINGER CORP.* 15,906.25 0.320
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
200 HARMAN INTERNATIONAL INDUSTRIES $11,225.00 0.226
100 HARMON INDUSTRIES 1,212.50 0.024
350 HARTMARX CORP.* 1,421.88 0.029
400 HEARTLAND EXPRESS* 6,300.00 0.127
300 HELIX TECHNOLOGY 13,443.75 0.270
200 HILB, ROGAL & HAMILTON 5,650.00 0.114
300 HNC SOFTWARE INC.* 31,725.00 0.638
300 HOLLYWOOD PARK* 6,731.25 0.135
150 HOLOGIC INC.* 862.50 0.017
400 HOOPER HOMES 10,300.00 0.207
300 HS RESOURCES* 5,175.00 0.104
700 HUBCO INC. 17,893.75 0.360
100 HUFFY CORP. 525.00 0.011
300 HUGHES SUPPLY 6,468.75 0.130
300 HUTCHINSON TECHNOLOGY* 6,375.00 0.128
400 HYPERION SOLUTIONS* 17,400.00 0.350
600 IDEC PHARMACEUTICALS CORP.* 58,950.00 1.186
600 IDEX CORP. 18,225.00 0.367
500 IDEXX LABORATORIES* 8,062.50 0.162
300 IHOP CORP.* 5,006.25 0.101
200 IMCO RECYCLING 2,525.00 0.051
250 IMMUNE RESPONSE CORP.* 1,085.94 0.022
600 INACOM CORP.* 4,387.50 0.088
400 INCYTE PHARMACEUTICALS* 24,000.00 0.483
500 INFORMATIONAL RESOURCES SERVICES* 4,625.00 0.093
200 INNOVEX, INC. 1,875.00 0.038
700 INPUT/OUTPUT INC.* 3,543.75 0.071
300 INSIGHT ENTERPRISES, INC.* 12,187.50 0.245
300 INSITUFORM TECHNOLOGIES* 8,475.00 0.171
100 INSTEEL INDUSTRIES INC. 906.25 0.018
200 INSURANCE AUTO AUCTION* 3,150.00 0.063
300 INTER TEL INC. 7,500.00 0.151
650 INTERFACE INC. 3,737.50 0.075
850 INTERIM SERVICES INC.* 21,037.50 0.423
100 INTERMAGNETICS GENERAL* 875.00 0.018
300 INTERMET CORP. 3,487.50 0.070
700 INTERNATIONAL RECTIFIER* 18,200.00 0.366
400 INTERVOICE* 9,462.50 0.190
400 INVACARE CORP. 8,025.00 0.161
200 INVESTORS FINANCIAL SERVICES* 9,200.00 0.185
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
200 IONICS INC.* $5,625.00 0.113
150 ITRON, INC.* 918.75 0.018
100 J & J SNACK FOODS* 2,050.00 0.041
150 J. BAKER INC. 900.00 0.018
300 JACK HENRY & ASSOCIATES 16,106.25 0.324
500 JACK IN THE BOX* 10,343.75 0.208
300 JAN BELL MARKETING* 862.50 0.017
300 JEFFERIES GROUP 6,600.00 0.133
600 JLG INDUSTRIES, INC. 9,525.00 0.192
200 JO-ANN STORES* 2,250.00 0.045
400 JOHN H. HARLAND CO. 7,325.00 0.147
600 JONES PHARMACEUTICALS INC. 26,062.50 0.524
100 JSB FINANCIAL 5,187.50 0.104
300 JUST FOR FEET* 0.00 0.000
300 JUSTIN INDUSTRIES 4,462.50 0.090
200 K SWISS INC. 3,715.63 0.075
200 K2 INC. 1,525.00 0.031
300 KAMAN CORP. 3,862.50 0.078
400 KELLWOOD CO. 7,775.00 0.156
500 KEMET CORP.* 22,531.25 0.453
400 KENT ELECTRONICS* 9,100.00 0.183
300 KIRBY CORP.* 6,150.00 0.124
600 KOMAG INC.* 1,875.00 0.038
200 KRONOS INC.* 12,000.00 0.241
300 KULICKE & SOFFA INDUSTRIES* 12,768.75 0.257
600 LABOR READY* 7,275.00 0.146
300 LANDRY'S SEAFOOD* 2,606.25 0.052
100 LANDSTAR SYSTEMS INC.* 4,281.25 0.086
300 LASER VISION CENTERS INC.* 3,168.75 0.064
200 LASON INC.* 2,200.00 0.044
600 LATTICE SEMCONDUCTOR* 28,275.00 0.569
100 LAWSON PRODUCTS 2,312.50 0.047
700 LA-Z BOY 11,768.75 0.237
200 LIBBEY INC. 5,750.00 0.116
100 LILLIAN VERNON 1,112.50 0.022
300 LILLY INDUSTRIES 4,031.25 0.081
200 LINDSAY MANUFACTURING. CO. 3,650.00 0.073
500 LINENS 'N THINGS INC.* 14,812.50 0.298
500 LIPOSOME CO.* 6,101.56 0.123
300 LUBY'S INCORPORATED 3,412.50 0.069
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
200 LYDALL INC.* $1,325.00 0.027
300 M.D.C. HOLDINGS 4,706.25 0.095
200 M.S. CARRIERS* 4,775.00 0.096
300 MACDERMID, INC. 12,318.75 0.248
700 MACROMEDIA INC.* 51,187.50 1.030
300 MAF BANCORP 6,281.25 0.126
400 MAGELLAN HEALTH SERVICES* 2,525.00 0.051
300 MANITOWOC CO. 10,200.00 0.205
400 MARCUS CORP. 5,375.00 0.108
600 MASCO TECH, INC. 7,612.50 0.153
200 MATERIAL SCIENCES* 2,037.50 0.041
300 MAXIMUS, INC.* 10,181.25 0.205
100 MCWHORTER TECHNOLOGIES* 1,600.00 0.032
400 MEDICIS PHARMACEUTICAL* 17,025.00 0.343
500 MEDQUIST, INC. * 12,906.25 0.260
600 MEN'S WEARHOUSE INC.* 17,625.00 0.355
300 MENTOR CORP. 7,743.75 0.156
500 MERCURY INTERACTIVE* 53,968.75 1.086
350 MESA AIR GROUP INC.* 1,662.50 0.033
500 METHODE ELECTRONICS 16,062.50 0.323
300 MICHAEL FOODS 7,387.50 0.149
400 MICHAELS STORES* 11,400.00 0.229
600 MICREL INC.* 34,162.50 0.687
200 MICROAGE INC.* 700.00 0.014
200 MICROS SYSTEMS* 14,800.00 0.298
500 MIDWAY GAMES* 11,968.75 0.241
200 MIDWEST EXPRESS HOLDINGS* 6,375.00 0.128
250 MISSISSIPPI CHEMICAL CORP. 1,546.88 0.031
300 MONACO COACH CORP.* 7,668.75 0.154
700 MORRISON KNUDSEN CORP.* 5,468.75 0.110
500 MUELLER INDUSTRIES* 18,125.00 0.365
600 MUTUAL RISK MANAGEMENT 10,087.50 0.203
300 MYERS INDUSTRIES 4,725.00 0.095
100 NASH FINCH CO. 637.50 0.013
100 NASHUA CORP.* 750.00 0.015
400 NATIONAL COMPUTER SYSTEM 15,050.00 0.303
500 NATIONAL DATA 16,968.75 0.341
700 NATIONAL INSTRUMENTS* 26,775.00 0.539
100 NATIONAL PRESTO INDUSTRIES 3,550.00 0.071
200 NATURE'S SUNSHINE PRODUCTS 1,600.00 0.032
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
450 NAUTICA ENTERPRISES* $5,090.63 0.102
900 NBTY INC.* 10,406.25 0.209
150 NCS HEALTHCARE INC.* 360.94 0.007
300 NETWORK EQUIPMENT TECHNOLOGIES* 3,543.75 0.071
200 NEW ENGLAND BUSINESS SERVICES 4,887.50 0.098
200 NEW JERSEY RESOURCES 7,812.50 0.157
550 NEWFIELD EXPLORATION* 14,712.50 0.296
300 NFO WORLDWIDE INC.* 6,712.50 0.135
300 99 CENTS ONLY STORES* 11,475.00 0.231
350 NORTH AMERICAN VACCINE* 1,575.00 0.032
300 NORTHWEST NATURAL GAS 6,581.25 0.132
300 NORTHWESTERN CORP. 6,600.00 0.133
300 NOVEN PHARMACEUTICALS* 5,437.50 0.109
200 OAK INDUSTRIES* 21,225.00 0.427
500 OAKWOOD HOMES 1,593.75 0.032
300 OCEANEERING INTERNATIONAL* 4,481.25 0.090
300 OFFSHORE LOGISTICS* 2,812.50 0.057
300 OM GROUP, INC.* 10,331.25 0.208
550 OMNOVA SOLUTIONS INC. 4,262.50 0.086
500 ORBITAL SCIENCES CORP.* 9,281.25 0.187
650 O'REILLY AUTOMOTIVE* 13,975.00 0.281
400 ORGANOGENESIS, INC.* 3,475.00 0.070
650 ORTHODONTIC CENTERS OF AMERICA* 7,759.38 0.156
200 OSHKOSH B'GOSH 4,212.50 0.085
200 OSTEOTECH INC.* 2,675.00 0.054
400 OWENS & MINOR 3,575.00 0.072
100 OXFORD INDUS 1,981.25 0.040
400 PACIFIC SUNWEAR OF CALIFORNIA* 12,875.00 0.259
100 PANERA BREAD CO.* 775.00 0.016
300 PAREXEL INTERNATIONAL CORP.* 3,543.75 0.071
100 PARK ELECTROCHEMICAL 2,656.25 0.053
400 PATTERSON DENTAL* 17,050.00 0.343
600 PAXAR CORP.* 5,062.50 0.102
850 P-COM INC.* 7,517.19 0.151
200 PEDIATRIX MEDICAL GROUP* 1,400.00 0.028
100 PENFORD CORP. 1,725.00 0.035
330 PEOPLESOFT INC.* 7,033.13 0.142
200 PERFORMANCE FOOD GROUP* 4,875.00 0.098
300 PHARMACEUTICAL PRODUCT DEVELOPMENT* 3,562.50 0.072
500 PHILA SUBURBAN 10,343.75 0.208
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
300 PHILLIPS-VAN HEUSEN $2,493.75 0.050
300 PHOTRONICS, INC.* 8,587.50 0.173
500 PICTURETEL CORP.* 2,156.25 0.043
400 PIEDMONT NATIONAL GAS 12,100.00 0.243
1,250 PIER 1 IMPORTS 7,968.75 0.160
150 PILLOWTEX CORP. 928.13 0.019
300 PINNACLE SYSTEMS INC.* 12,206.25 0.246
400 PIONEER GROUP* 6,300.00 0.127
400 PIONEER STANDARD ELECTRIC 5,775.00 0.116
300 PITTSTON BURLINGTON GROUP 3,187.50 0.064
200 PLAINS RESOURCES* 2,500.00 0.050
300 PLANTRONICS INC.* 21,468.75 0.432
350 PLAYERS INTERNATIONAL* 2,876.56 0.058
200 PLEXUS CORP.* 8,800.00 0.177
500 POGO PRODUCING 10,250.00 0.206
300 POLARIS INDUSTRIES INC. 10,875.00 0.219
200 POPE & TALBOT 3,200.00 0.064
300 POWERWAVE TECHNOLOGIES* 17,512.50 0.352
400 PREMIER BANCSHARES INC. 5,450.00 0.110
300 PRE-PAID LEGAL SERVICES* 7,200.00 0.145
750 PRIDE INTERNATIONAL INC.* 10,968.75 0.221
300 PRIMARK CORP.* 8,343.75 0.168
700 PRIME HOSPITALITY* 6,168.75 0.124
300 PRIORITY HEALTHCARE * 8,681.25 0.175
600 PROFIT RECOVERY GROUP* 15,937.50 0.321
200 PROGRESS SOFTWARE* 11,350.00 0.228
300 PROJECT SOFTWARE & DEVELOPMENT* 16,650.00 0.335
200 PROTEIN DESIGN LABS* 14,000.00 0.282
300 PROVIDENT BANKSHARES 5,193.75 0.104
200 PROXIM INC.* 22,000.00 0.443
300 PUBLIC SERVICE OF NORTH CAROLINA 9,693.75 0.195
200 QRS CORP.* 20,862.50 0.420
100 QUAKER CHEMICAL 1,425.00 0.029
200 QUANEX CORP. 5,100.00 0.103
300 QUEENS COUNTY BANCORP INC. 8,137.50 0.164
300 QUICKSILVER, INC.* 4,650.00 0.095
500 RADIAN GROUP INC. 23,875.00 0.480
100 RAILTEX INC.* 1,787.50 0.036
400 RALCORP HOLDINGS* 7,975.00 0.160
600 RAYMOND JAMES FINANCIAL 11,212.50 0.226
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
650 READ-RITE CORP.* $3,087.50 0.062
300 REGAL-BELOIT CORP. 6,187.50 0.124
400 REGENERON PHARMACEUTIC* 5,100.00 0.103
500 REGIS CORP. 9,437.50 0.190
400 RELIANCE STEEL & ALUMINUM 9,375.00 0.189
400 REMEDY CORP.* 18,950.00 0.381
300 REMINGTON OIL & GAS * 1,162.50 0.023
600 RENAL CARE GROUP* 14,025.00 0.282
200 REPUBLIC GROUP INC. 3,025.00 0.061
200 RESMED INC.* 8,350.00 0.168
400 RESPIRONICS INC.* 3,187.50 0.064
400 RIGGS NATIONAL CORP. 5,275.00 0.106
100 ROBBINS & MYERS 2,262.50 0.046
750 ROLLINS TRUCK LEASING 8,953.13 0.180
400 ROPER INDUSTRIES 15,125.00 0.304
200 ROYAL APPLIANCE MANUFACTURING* 975.00 0.020
250 RTI INTERNATIONAL METALS INC.* 1,875.00 0.038
400 RUBY TUESDAY, INC. 7,275.00 0.146
200 RURAL/METRO CORP.* 856.25 0.017
400 RUSS BERRIE & CO. 10,500.00 0.211
500 RYAN'S FAMILY STEAK HOUSE* 4,250.00 0.086
200 RYLAND GROUP 4,612.50 0.093
950 S3 INC.* 10,984.38 0.221
750 SAFESKIN CORP.* 9,093.75 0.183
200 SCHWEITZER-MAUDUIT INC. 2,687.50 0.054
200 SCOTT TECHNOLOGIES* 3,775.00 0.076
400 SCOTTS CO. * 16,100.00 0.324
200 SEACOR SMITH* 10,350.00 0.208
500 SECURITY DYNAMICS* 38,750.00 0.780
200 SEI CORP. 23,803.13 0.479
250 SEITEL, INC.* 1,687.50 0.034
400 SELECTIVE INSURANCE GROUP 6,875.00 0.138
200 SERVICE EXPERTS, INC.* 1,162.50 0.023
400 SHOPKO STORES* 9,200.00 0.185
400 SHOREWOOD PACKAGING* 7,575.00 0.152
300 SIERRA HEALTH SERVICES* 2,006.25 0.040
300 SILICON VALLEY * 14,850.00 0.299
400 SILICON VALLEY GROUP* 7,100.00 0.143
200 SIMPSON INDUSTRIES 2,250.00 0.045
200 SIMPSON MANUFACTURING* 8,750.00 0.176
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
100 SKYLINE CORP. $2,350.00 0.047
300 SKYWEST INC. 8,400.00 0.169
500 SLI INC.* 6,781.25 0.136
300 A.O. SMITH 6,562.50 0.132
550 SMITHFIELD FOODS* 13,200.00 0.266
950 SNYDER COMMERCIAL* 18,287.50 0.368
300 SOLA INTERNATIONAL* 4,162.50 0.084
200 SONIC CORP.* 5,700.00 0.115
100 SOUTHERN ENERGY HOMES* 234.38 0.005
650 SOUTHERN UNION* 12,431.25 0.250
400 SOUTHWEST GAS 9,200.00 0.185
250 SOUTHWESTERN ENERGY 1,640.63 0.033
100 SPACELABS MEDICAL* 1,856.25 0.037
100 SPARTAN MOTORS 437.50 0.009
300 SPECIALTY EQUIPMENT COMPANIES* 7,181.25 0.144
400 SPEEDFAM IPEC INC.* 5,175.00 0.104
350 SPORTS AUTHORITY* 700.00 0.014
200 SPS TECHNOLOGIES* 6,387.50 0.129
100 ST. MARY LAND & EXPLORATION 2,475.00 0.050
350 STAFFMARK INC.* 2,646.88 0.053
200 STANDARD MICROSYSTEMS* 2,162.50 0.044
200 STANDARD MOTOR PRODUCTS 3,225.00 0.065
400 STANDARD PACIFIC 4,400.00 0.089
200 STANDEX INTERNATIONAL 4,187.50 0.084
100 STEEL TECHNOLOGIES 1,450.00 0.029
600 STEIN MART* 3,412.50 0.069
500 STILLWATER MINING CO.* 15,937.50 0.321
200 STONE & WEBSTER 3,362.50 0.068
200 STONE ENERGY* 7,125.00 0.143
600 STRIDE RITE 3,900.00 0.078
300 STURM RUGER 2,662.50 0.054
600 SUMMIT TECHNOLOGY* 7,012.50 0.141
250 SUNRISE MEDICAL* 1,546.88 0.031
500 SUSQUEHANNA 7,937.50 0.160
400 SWISS ARMY BRANDS INC.* 2,850.00 0.057
150 SYMMETRICOM INC.* 1,490.63 0.030
200 SYNCOR INTERNATIONAL* 5,825.00 0.117
200 T J INTERNATIONAL 8,400.00 0.169
100 TACO CABANA* 812.50 0.016
900 TALK.COM INC.* 15,975.00 0.321
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
250 TBC CORP.* $1,562.50 0.031
250 TCBY ENTERPRISES 953.13 0.019
300 TECHNE CORP.* 16,518.75 0.332
200 TECHNITROL, INC. 8,900.00 0.179
600 TECHNOLOGY SOLUTION* 19,650.00 0.395
200 TELXON CORP. 3,200.00 0.064
400 TENNECO AUTOMOTIVE, INC.* 3,725.00 0.075
500 TETRA TECHNOLOGIES* 7,687.50 0.155
100 TETRA TECHNOLOGIES* 725.00 0.015
300 TEXAS INDUSTRIES 12,768.75 0.257
200 THE COOPER COMPANIES 6,025.00 0.121
600 THE EARTHGRAINS COMPANY 9,675.00 0.195
200 THE UNITED ILLUMINATING 10,275.00 0.207
400 THERAGENICS CORP.* 3,625.00 0.073
200 THOMAS INDUSTRIES 4,087.50 0.082
200 THOMAS NELSON 1,850.00 0.037
200 THOR INDUSTRIES 6,087.50 0.122
200 THQ INCORPORATED* 4,637.50 0.093
200 THREE-FIVE SYSTEMS* 8,200.00 0.165
300 TIMBERLAND CO. * 15,862.50 0.319
250 TITAN INTERNATIONAL INC. 1,625.00 0.033
200 TNP ENTERPRISES 8,250.00 0.166
500 TOLL BROTHERS* 9,312.50 0.187
200 TORO CO. 7,462.50 0.150
600 TOWER AUTOMOTIVE * 9,262.50 0.186
500 TREDEGAR INDUSTRIES 10,343.75 0.208
200 TRENWICK GROUP 3,387.50 0.068
300 TRIARC COMPANIES * 5,512.50 0.111
300 TRIMBLE NAVIGATION LTD* 6,487.50 0.131
600 TRUE NORTH COMMUNICATION 26,812.50 0.539
700 TRUSTCO BANK CORP. 9,275.00 0.187
600 TUBOSCOPE INC.* 9,525.00 0.192
400 U.S. FREIGHTWAYS CORP. 19,150.00 0.385
200 U.S. HOME* 5,112.50 0.103
200 U.S. TRUST CORP. 16,037.50 0.323
300 ULTRATECH STEPPER INC.* 4,837.50 0.097
600 UNITED BANKSHARES 14,325.00 0.288
200 UNITED NATURAL FOODS* 2,400.00 0.048
500 UNITED WATER RESOURCES 17,093.75 0.344
300 UNIVERSAL FOREST PRODUCT 4,425.00 0.089
</TABLE>
<PAGE>
<TABLE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Schedule of Investments (continued)
December 31, 1999
<CAPTION>
Percentage (%)
of Total
Shares Name of Issuer Market Value Market Value
<C> <S> <C> <C>
400 UNIVERSAL HEALTH SERVICES* $14,400.00 0.290
200 URS CORP.* 4,337.50 0.087
150 USA DETERGENTS* 412.50 0.008
600 UST CORP. 19,050.00 0.383
800 VALASSIS COMMUNICATION* 33,800.00 0.680
400 VALENCE TECHNOLOGY* 7,600.00 0.153
300 VALMONT INDUSTRIES 4,818.75 0.097
400 VARIAN MEDICAL ASSOCIATES * 11,925.00 0.240
400 VERITY INC.* 17,025.00 0.343
300 VERTEX PHARMACEUTICALS* 10,500.00 0.211
600 VICOR CORP.* 24,300.00 0.489
850 VINTAGE PETROLEUM* 10,253.04 0.206
400 VISIO CORP.* 19,000.00 0.382
200 VITAL SIGNS 4,575.00 0.092
200 VOLT INFORMATION SCIENCE* 4,775.00 0.096
200 W D-40 CO. 4,425.00 0.089
300 WABASH NATIONAL 4,500.00 0.091
100 WATKINS-JOHNSON 4,000.00 0.080
400 WATSCO INC. 4,625.00 0.093
400 WATTS INDUSTRIES 5,900.00 0.119
600 WERNER ENTERPRISES 8,437.50 0.170
300 WESLEY JENSEN* 11,362.50 0.229
200 WET SEAL INC. * 2,450.00 0.049
300 WHITNEY HOLDING 11,118.75 0.224
800 WHITTMAN-HART* 42,900.00 0.863
400 WHOLE FOODS MARKET* 18,550.00 0.373
300 WHX CORP.* 2,700.00 0.054
500 WICOR INC. 14,593.75 0.294
300 WINNEBAGO INDUSTRIES 6,018.75 0.121
200 WOLVERINE TUBE* 2,825.00 0.057
550 WOLVERINE WORLD WIDE 6,015.63 0.121
200 WYNN'S INTERNATIONAL 2,825.00 0.057
400 XIRCOM INC.* 30,000.00 0.605
250 X-RITE INC. 1,562.50 0.032
300 YELLOW CORP.* 5,043.75 0.101
500 ZALE CORP.* 24,187.50 0.488
400 ZEBRA TECHNOLOGIES* 23,400.00 0.472
300 ZENITH NATIONAL INSURANCE 6,187.50 0.125
200 ZIXIT INC.* 7,925.00 0.159
---------- ------
$4,970,524 100.00
========== =======
</TABLE>
[FN]
* Non-Income producing
<PAGE>
Ranson Unit Investment Trusts
S&P SmallCap 600 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
Each security is valued at the closing sale price on a national securities
exchange or the Nasdaq National Market.
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.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires the Trust's sponsor to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from such
estimates.
Organization Costs
In accordance with Statement of Position 98-5, organization costs are expensed
as incurred notwithstanding anything to the contrary in the Prospectus Part One.
2. Unrealized Appreciation and Depreciation
Following is an analysis of net unrealized appreciation at December 31, 1999:
<TABLE>
<CAPTION>
<S> <C>
Gross unrealized appreciation $920,820
Gross unrealized depreciation (473,166)
---------
Net unrealized appreciation $447,654
=========
</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.
<PAGE>
Ranson Unit Investment Trusts
S&P SmallCap 600 Index Trust
Series 2
Notes to Financial Statements (continued)
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 5.152% 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 3.00% of the Public Offering Price
(equivalent to 3.093% of the net amount invested).
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
Distribution January 20, 1999 to
Plan December 31, 1999
<S> <C> Per Unit <C> Total
- --------- ----- ------
Quarterly $.013 $3,827
</TABLE>
In addition, the Trust redeemed Units with proceeds from the sale of Stocks as
follows:
<TABLE>
<CAPTION>
Period from
January 20,
1999 to
December 31,
1999
<S> <C>
--------
Principal portion $100,506
Net investment income accrued 11
--------
$100,517
=========
Units 10,671
=========
</TABLE>
In addition, distribution of principal related to the sale or call of securities
is $.09 per Unit for the period ended December 31, 1999.
<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 14, 2000, in this Post-Effective
Amendment to the Registration Statement (Form S-6) and related Prospectus of
Ranson Unit Investment Trusts, S&P SmallCap 600 Index Trust, Series 2 dated
April 28, 2000.
Ernst & Young LLP
Kansas City, Missouri
April 28, 2000
<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 75, 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
28th day of April, 2000.
Ranson Unit Investment Trusts Series 75
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 28, 2000 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.
