[LOGO] RANSON UNIT INVESTMENT TRUSTS, SERIES 90
NASDAQ-100 INDEX TRUST, SERIES 8
A portfolio of the stocks in the Nasdaq-100 Index(R)
seeking capital appreciation
Prospectus
March 2, 2000
As with any investment, the Securities and Exchange Commission has not
approved or disapproved of these securities or passed upon the adequacy or
accuracy of this prospectus. Any contrary representation is a criminal offense.
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INVESTMENT SUMMARY
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INVESTMENT OBJECTIVE
The trust seeks to provide investment results that correspond to the total
return of the stocks in the Nasdaq-100 Index over its life. Total return
includes any increase or decrease in the value of stocks plus any dividend
income.
INVESTMENT STRATEGY
The trust seeks to replicate the Nasdaq-100 Index by holding all, or a
representative sample, of the stocks that comprise the index. The Nasdaq-100
Index includes stocks of 100 of the largest and most-active non-financial
domestic and international companies trading on the Nasdaq Stock Market. Under
normal market conditions, the performance correlation between the portfolio and
the index will be between 97% and 99%. We may adjust the portfolio stocks
periodically to match any changes in the index. The portfolio will include at
least 95% of the stocks in the index. In an effort to lower trust expenses, we
may initially deposit an equal number shares of each stock in the portfolio.
Within 30 days we will align the portfolio with the index composition as we
create additional units. We will then maintain the portfolio as described
above.
<TABLE>
<CAPTION>
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INDEX DIVERSIFICATION
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<S> <C>
Software 23%
Telecommunications 19%
Computers 9%
Retail 5%
Electronics 7%
Semiconductors 11%
Commercial Services 7%
Biotechnology 6%
Healthcare 3%
Internet 4%
Basic Materials 2%
Media 3%
Transportation 1%
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</TABLE>
PRINCIPAL RISKS
As with all investments, you can lose money by investing in this trust. The
trust also might not perform as well as you expect. This can happen for reasons
such as these:
* STOCK PRICES CAN BE VOLATILE. The value of your investment may fall over
time.
* WE DO NOT ACTIVELY MANAGE THE PORTFOLIO. The trust will seek to replicate
the Nasdaq-100 Index even if the index performance declines.
* Many of the stocks in the index are issued by technology companies. These
companies include companies involved in computers, electronics, the
Internet, semiconductors, software and telecommunications. NEGATIVE
DEVELOPMENTS IN THE TECHNOLOGY INDUSTRY WILL AFFECT THE VALUE OF YOUR
INVESTMENT GREATER THAN IN A MORE DIVERSIFIED INVESTMENT. Technology
stocks tend to experience above-average price volatility.
* All index portfolios have operating expenses and transaction costs. THIS
MEANS THAT AN INDEX PORTFOLIO MAY NOT TRACK ITS INDEX EXACTLY. It may be
impractical to own all index stocks in the exact index weightings. Time
may also elapse between a change in the index and a change in the
portfolio.
2 Investment Summary
<PAGE>
WHO SHOULD INVEST
You should consider this investment if you want:
* to own the stocks in the Nasdaq-100 Index in a single investment.
* the potential to increase the value of your money over the long term.
You should not consider this investment if you:
* are uncomfortable with the risks of an unmanaged investment in stocks.
* want current income, capital preservation or a short term investment.
<TABLE>
<CAPTION>
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ESSENTIAL INFORMATION
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<S> <C>
UNIT PRICE AT INCEPTION $10.00
INCEPTION DATE March 2, 2000
TERMINATION DATE March 2, 2006
DISTRIBUTION DATES 15th day of January, April,
July and October
RECORD DATES 1st day of January, April,
July and October
CUSIP NUMBERS
Cash distributions 753269331
Reinvested distributions 753269349
MINIMUM INVESTMENT
Standard accounts $1,000/100 units
Retirement accounts and
custodial accounts for minors $250/25 units
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</TABLE>
FEES AND EXPENSES
As with any investment, you will incur expenses when you invest in the trust.
The amounts below are estimates of the direct and indirect expenses that you may
incur based on a $10 unit price. Actual expenses may vary.
<TABLE>
<CAPTION>
<S> <C>
AS A % OF
$1,000 INVESTED
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MAXIMUM SALES FEE
(% of unit price paid on purchase) 4.90%
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ORGANIZATION COSTS
(amount per 100 units paid by trust at
end of initial offering period) $5.00
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<S> <C> <C>
ANNUAL AS A % OF AMOUNT PER
OPERATING EXPENSES $1,000 INVESTED 100 UNITS
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Trustee's fee and expenses 0.09% $0.90
Creation and development fee 0.01% 0.10
Supervisory and evaluation fees 0.06% 0.60
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Total 0.16% $1.60
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</TABLE>
The creation and development fee compensates the sponsor for creating and
developing your trust. The Trust accrues this fee daily during the life of the
Trust based on average daily net asset value and pays the sponsor monthly (not
to exceed 2.35 percent of your initial investment over the life of the trust).
This fee historically had been included in the sales charge.
EXAMPLE
This example helps you compare the cost of investing in this trust with the
cost of investing in other unit trusts and mutual funds. In the example we
assume that the expenses above do not change and that the trust's annual return
is 5%. The example only illustrates the effect of expenses-your actual returns
and expenses will vary. Based on these assumptions, you would pay these
expenses for every $10,000 you invest in the trust:
1 year $557
3 years $590
5 years $626
Life of trust (6 years) $645
These amounts are the same regardless of whether you sell your investment at
the end of a period or continue to hold your investment.
Investment Summary 3
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<TABLE>
<CAPTION>
THE PORTFOLIO (at inception)
Target
Portfolio Ticker Initial Cost to Percentage
Number Symbol Company Name Shares Portfolio of Index
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 MSFT MICROSOFT CORP 127 $ 11,533.19 7.17%
2 CSCO CISCO SYSTEMS INC 84 11,061.75 6.86
3 INTC INTEL CORP 84 9,733.50 5.96
4 QCOM QUALCOMM INC 60 8,340.00 5.13
5 JDSU JDS UNIPHASE CORP 24 6,741.00 4.01
6 ORCL ORACLE CORPORATION 85 6,077.50 3.75
7 SUNW SUN MICROSYSTEMS INC 49 4,798.94 2.96
8 NXTL NEXTEL COMMUNICATIONS INC-A 32 4,264.00 2.64
9 VRTS VERITAS SOFTWARE CORP 19 3,823.75 2.34
10 IMNX IMMUNEX CORP 16 3,504.00 2.10
11 WCOM MCI WORLDCOM INC 73 3,339.75 2.06
12 GBLX GLOBAL CROSSING LTD 60 3,056.25 1.84
13 YHOO YAHOO! INC 18 2,853.00 1.78
14 DELL DELL COMPUTER CORP 67 2,882.04 1.76
15 CMGI CMGI INC 21 2,681.43 1.67
16 AMAT APPLIED MATERIALS INC 14 2,584.75 1.58
17 XLNX XILINX INC 30 2,240.63 1.43
18 AMGN AMGEN INC 34 2,212.12 1.37
19 SEBL SIEBEL SYSTEMS INC 16 2,156.00 1.34
20 NTAP NETWORK APPLIANCE INC 11 2,090.69 1.31
21 PMCS PMC - SIERRA INC 11 2,144.14 1.29
22 AAPL APPLE COMPUTER INC 16 2,085.00 1.26
23 CIEN CIENA CORP 12 2,124.00 1.25
24 LVLT LEVEL 3 COMMUNICATIONS INC 17 1,978.64 1.22
25 ITWO I2 TECHNOLOGIES INC 12 1,959.00 1.21
26 MXIM MAXIM INTEGRATED PRODUCTS 29 1,846.94 1.15
27 ERICY ERICSSON (LM) TEL-SP ADR 18 1,779.75 1.07
28 ALTR ALTERA CORPORATION 20 1,692.50 1.04
29 BVSN BROADVISION INC 6 1,537.87 1.01
30 CTXS CITRIX SYSTEMS INC 15 1,560.00 0.98
31 LLTC LINEAR TECHNOLOGY CORP 15 1,531.87 0.95
32 BGEN BIOGEN INC 13 1,430.81 0.90
33 CNXT CONEXANT SYSTEMS INC 15 1,342.50 0.87
34 AMCC APPLIED MICRO CIRCUITS CORP 5 1,320.00 0.81
35 COMS 3COM CORP 13 1,353.62 0.81
36 VTSS VITESSE SEMICONDUCTOR CORP 12 1,273.50 0.80
37 ADCT ADC TELECOMMUNICATIONS INC 27 1,223.43 0.74
38 KLAC KLA-TENCOR CORPORATION 16 1,205.00 0.74
39 CMVT COMVERSE TECHNOLOGY INC 6 1,227.37 0.71
40 CHIR CHIRON CORP 18 1,170.00 0.69
41 MFNX METROMEDIA FIBER NETWORK-A 16 1,116.00 0.69
42 SDLI SDL INC 5 2,220.63 0.69
43 GMST GEMSTAR INTL GROUP LTD 15 1,076.25 0.67
44 MEDI MEDIMMUNE INC 5 1,031.56 0.67
45 AMZN AMAZON.COM INC 16 1,054.00 0.66
46 CMCSK COMCAST CORP-SPECIAL CL A 25 1,078.12 0.66
47 EBAY EBAY INC 7 1,044.75 0.62
48 NOVL NOVELL INC 29 967.88 0.58
49 RFMD RF MICRO DEVICES INC 6 894.00 0.58
50 VSTR VOICESTREAM WIRELESS CORP 7 952.88 0.58
4 Investment Summary
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<CAPTION>
Target
Portfolio Ticker Initial Cost to Percentage
Number Symbol Company Name Shares Portfolio of Index
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
51 DISH ECHOSTAR COMMUNICATIONS - A 8 $ 919.50 0.56%
52 NSOL NETWORK SOLUTIONS INC 5 1,613.44 0.56
53 NTLI NTL INCORPORATED 10 941.25 0.56
54 INTU INTUIT INC 18 868.50 0.55
55 TLAB TELLABS INC 16 839.00 0.54
56 ADBE ADOBE SYSTEMS INC 8 803.00 0.52
57 PAYX PAYCHEX INC 17 824.50 0.50
58 MCLD MCLEODUSA INC-CL A 9 799.87 0.49
59 QLGC QLOGIC CORP 5 743.75 0.49
60 COST COSTCO WHOLESALE CORP 17 790.50 0.48
61 PMTC PARAMETRIC TECHNOLOGY CORP 26 791.38 0.48
62 RNWK REALNETWORKS INC 10 697.50 0.44
63 NXLK NEXTLINK COMMUNICATIONS-A 6 664.50 0.42
64 ATHM AT HOME CORP -SER A 20 676.25 0.41
65 SPOT PANAMSAT CORP 14 646.63 0.41
66 SBUX STARBUCKS CORP 18 625.50 0.40
67 BMCS BMC SOFTWARE INC 13 650.00 0.39
68 APCC AMERICAN POWER CONVERSION 18 581.63 0.37
69 ATML ATMEL CORP 12 609.75 0.37
70 SANM SANMINA CORP 5 590.94 0.36
71 SPLS STAPLES INC 22 578.88 0.35
72 LCOS LYCOS INC 10 572.50 0.34
73 PSFT PEOPLESOFT INC 27 541.69 0.34
74 ADLAC ADELPHIA COMMUNICATIONS-CL A 9 502.31 0.30
75 USAI USA NETWORKS INC 22 485.38 0.30
76 GENZ GENZYME CORP - GENL DIVISION 8 480.00 0.28
77 ERTS ELECTRONIC ARTS INC 5 474.68 0.26
78 CNET CNET INC 6 398.25 0.24
79 CTAS CINTAS CORP 10 407.50 0.24
80 BBBY BED BATH & BEYOND INC 13 347.75 0.23
81 BMET BIOMET INC 11 352.00 0.21
82 CPWR COMPUWARE CORP 16 344.00 0.21
83 CEFT CONCORD EFS INC 17 325.12 0.20
84 QTRN QUINTILES TRANSNATIONAL CORP 12 331.50 0.20
85 FISV FISERV INC 11 302.50 0.19
86 MOLX MOLEX INC 6 337.88 0.19
87 NETA NETWORK ASSOCIATES INC 10 296.25 0.19
88 MCHP MICROCHIP TECHNOLOGY INC 5 309.53 0.17
89 PCAR PACCAR INC 6 258.38 0.17
90 LGTO LEGATO SYSTEMS INC 7 248.93 0.16
91 ADPT ADAPTEC INC 6 234.37 0.15
92 SNPS SYNOPSYS INC 6 240.38 0.15
93 SSCC SMURFIT-STONE CONTAINER CORP 15 225.94 0.14
94 SIAL SIGMA-ALDRICH 8 182.00 0.11
95 DLTR DOLLAR TREE STORES INC 5 182.18 0.09
96 PHSY PACIFICARE HEALTH SYSTEMS 5 230.16 0.09
97 APOL APOLLO GROUP INC-CL A 5 113.75 0.07
98 MLHR MILLER (HERMAN) INC 5 106.88 0.06
99 VISX VISX INC 5 84.38 0.06
100 NWAC NORTHWEST AIRLINES CORP 5 85.63 0.05
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$164,454.39 100.00%
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</TABLE>
Investment Summary 5
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UNDERSTANDING YOUR INVESTMENT
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HOW TO BUY UNITS
You can buy units of the trust on any business day by contacting your
financial professional or Ranson. Unit prices are available daily on the
Internet at WWW.RANSON.COM. The unit price includes:
* the value of the stocks,
* the sales fee, and
* cash and other net assets in the portfolio.
We often refer to the purchase price of units as the "offer price." We must
receive your order to buy units prior to the close of the New York Stock
Exchange (normally 4:00 p.m. Eastern time) to give you the price for that day.
If we receive your order after this time, you will receive the price computed on
the next business day.
RETIREMENT ACCOUNTS. The portfolio may be suitable for purchase in tax-
advantaged retirement accounts. You should contact your financial professional
about the accounts offered and any additional fees imposed. In addition, you
can invest in a Ranson UIT retirement account directly with the trustee. We
reduce the minimum investment to only $250 for these accounts. Please contact
The Bank of New York for more information and an application. The trustee will
assess an annual fee per account (currently $12) which can be deducted from your
account if do not wish to pay it separately.
VALUE OF THE STOCKS. We determine the value of the stocks as of the close of
the New York Stock Exchange on each day that exchange is open. During the
initial offering period, the value of the stocks includes organization costs.
Pricing the Stocks. We generally determine the value of stocks using the
last sale price for stocks traded on a national securities exchange or the
Nasdaq Stock Market. In some cases we will price a stock based on the last
asked or bid price in the over-the-counter market or by using other recognized
pricing methods. We will only do this if a stock is not principally traded on a
national securities exchange or the Nasdaq Stock Market, or if the market quotes
are unavailable or inappropriate.
The trustee determined the initial prices of the stocks shown in "The
Portfolio" in this prospectus. The trustee determined these initial prices as
described above at the close of the New York Stock Exchange on the business day
before the date of this prospectus. On the first day we sell units we will
compute the unit price as of the close of the New York Stock Exchange or the
time the registration statement filed with the Securities and Exchange
Commission becomes effective, if later.
Organization Costs. During the initial offering period, part of the value of
the stocks represents an amount that will pay the costs of creating your trust.
These costs include the costs of preparing the registration statement and legal
documents, federal and state registration fees, the initial fees and expenses of
the trustee and the initial audit. Your trust will sell stocks to reimburse us
for these costs at the end of the initial offering period or after six months,
if earlier.
SALES FEE. You pay a fee when you buy units. The total fee equals 4.90% of
your unit price at the time of purchase.
6 Understanding Your Investment
<PAGE>
REDUCING YOUR SALES FEE. We offer a variety of ways for you to reduce the
fee you pay. It is your financial professional's responsibility to alert us of
any discount when you order units.
Large Purchases. You can reduce your fee by increasing the size of your
investment:
<TABLE>
<CAPTION>
If you purchase: Your fee will be:
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<S> <C>
Less than $100,000 4.90%
$100,000 - $249,999 4.50
$250,000 - $499,999 4.30
$500,000 - $999,999 3.50
$1,000,000 or more 3.00
</TABLE>
We apply these fees as a percent of the unit price at the time of purchase.
We also apply the different purchase levels on a unit basis using a $10 unit
equivalent. For example, if you purchase between 10,000 and 24,999 units, your
fee is 4.50% of your unit price.
You may AGGREGATE unit purchases by the same person on any single day from
any one broker-dealer to qualify for a purchase level. You can include these
purchases as your own for purposes of this aggregation:
* purchases by your spouse or minor children and
* purchases by your trust estate or fiduciary accounts.
You may also use a LETTER OF INTENT to combine purchases over time to qualify
for a purchase level. Under this option, you must give us a letter of intent to
purchase a specified amount of units of any Ranson unit trust over a specified
time period. The letter must specify a time period of no more than 13 months.
Once you sign a letter of intent, we will reduce your fee based on your total
purchase commitment as shown in the table above. If your purchases exceed the
level specified in your letter, you will still receive the additional fee
reduction for your purchases shown in the table above (we will not cap your
discount). If your total purchases are less than the level specified in your
letter, you must pay the fee difference to us. We reserve the right to redeem
your units if you do not pay the difference.
The discounts described above apply only during the initial offering period.
Advisory and Wrap Fee Accounts. If you purchase units through registered
broker/dealers who charge periodic fees in lieu of commissions or who charge for
financial planning, investment advisory or asset management services or provide
these services as part of an investment account where a comprehensive "wrap fee"
charge is imposed, your units will only be assessed that portion of the sales
charge retained by the sponsor (.9% of the public offering price).
Exchange Option. You may purchase units of the trust offered in this
prospectus at a reduced sales fee of 3.00% of the unit price if you buy your
units with redemption or termination proceeds from any other Ranson unit trust.
You may also purchase units of the trust offered in this prospectus at this
reduced fee if you purchase your units with termination proceeds from an
unaffiliated unit trust that has the same investment strategy as this trust.
These discounts apply only during the initial offering period.
Employees. We do not charge any sales fee for purchases made by officers,
directors and
Understanding Your Investment 7
<PAGE>
employees of Ranson and its affiliates. We also do not charge a fee for
purchases made by registered representatives of selling firms and their family
members (spouses, children and parents). This discount applies during the
initial offering period and in the secondary market.
Dividend Reinvestment Plan. We do not charge any sales fee when you reinvest
distributions from your trust into additional units of the trust. This discount
applies during the initial offering period and in the secondary market.
HOW TO SELL YOUR UNITS
You can sell your units on any business day by contacting your financial
professional or Ranson. Unit prices are available daily on the Internet at
WWW.RANSON.COM or through your financial professional. We often refer to the
sale price of units as the "bid price."
SELLING UNITS. We may maintain a secondary market for units. This means
that if you want to sell your units, we may buy them at the current price. We
may then resell the units to other investors at the public offering price or
redeem them for the redemption price. Our secondary market repurchase price is
the same as the redemption price. Certain broker-dealers might also maintain a
secondary market in units. You should contact your financial professional for
current unit prices to determine the best price available. We may discontinue
our secondary market at any time without notice. Even if we do not make a
market, you will be able to redeem your units with the trustee on any business
day for the current price.
REDEEMING UNITS. You may also redeem your units directly with the trustee,
The Bank of New York, on any day the New York Stock Exchange is open. The
trustee must receive your completed redemption request prior to the close of the
New York Stock Exchange for you to receive the unit price for a particular day.
If your request is received after that time or is incomplete in any way, you
will receive the next price computed after the trustee receives your completed
request. Rather than contacting the trustee directly, your financial
professional can also redeem your units by using the Investors' Voluntary
Redemptions and Sales (IVORS) automated redemption service offered through
Depository Trust Company.
If you redeem your units, the trustee will generally send you a payment for
your units no later than seven days after it receives all necessary
documentation (this will usually only take three business days). The only time
the trustee can delay your payment is if the New York Stock Exchange is closed
(other than weekends or holidays), the Securities and Exchange Commission
determines that trading on that exchange is restricted or an emergency exists
making sale or evaluation of the stocks not reasonably practicable, and for any
other period that the Securities and Exchange Commission permits.
To redeem your units, you must send the trustee any certificates for your
units. You must properly endorse your certificates or sign a written transfer
instrument with a signature guarantee. The trustee may require additional
documents such as a certificate of corporate authority, trust documents, a death
certificate, or an appointment as executor, administrator or guardian. The
trustee cannot complete your redemption or send your payment to you until it
receives all of these documents in completed form.
8 Understanding Your Investment
<PAGE>
You can request an in kind distribution of the stocks underlying your units,
if you own units worth at least $1,000,000 or you originally paid at least that
amount for your units. This option is generally available only for stocks
traded and held in the United States. The trustee will make any in kind
distribution of stocks by distributing applicable stocks in book entry form to
the account of your financial professional at Depositor Trust Company. You will
receive whole shares of the applicable stocks and cash equal to any fractional
shares. You may not request this option in the last 30 days of your trust's
life. We may discontinue this option at any time without notice.
EXCHANGE OPTION. You may be able to exchange your units for units of other
Ranson unit trusts at a reduced sales fee. You can contact your financial
professional or Ranson for more information about trusts currently available for
exchanges. Before you exchange units, you should read the prospectus carefully
and understand the risks and fees. You should then discuss this option with
your financial professional to determine whether your investment goals have
changed, whether current trusts suit you and to discuss tax consequences. We
may discontinue this option at any time.
DISTRIBUTIONS
QUARTERLY DIVIDENDS. Your trust generally pays dividends from its net
investment income along with any excess capital on each quarterly distribution
date to unitholders of record on the preceding record date. You can elect to:
* reinvest distributions in additional units of your trust at no fee,
* reinvest distributions in various mutual funds, or
* receive distributions in cash.
You may change your election by contacting your financial professional or the
trustee. Once you elect to participate in a reinvestment program, the trustee
will automatically reinvest your distributions into additional units or mutual
fund shares at their net asset value on the distribution date. We waive the
sales fee for reinvestments into units of your trust. We cannot guarantee that
units or mutual fund shares will always be available for reinvestment. If units
or fund shares are unavailable, you will receive cash distributions. We may
discontinue these options at any time without notice.
In some cases, your trust might pay a special distribution if it holds an
excessive amount of principal pending distribution. For example, this could
happen as a result of a merger or similar transaction involving a company whose
stock is in your portfolio. The amount of your distributions will vary from
time to time as companies change their dividends or trust expenses change.
REINVEST IN YOUR TRUST. You can keep your money working by electing to
reinvest your distributions in additional units of your trust. The easiest way
to do this is to have your financial professional purchase units with the
Reinvestment CUSIP number listed in the "Investment Summary" section of this
prospectus. You may also make or change your election by contacting your
financial professional or the trustee.
REINVEST IN MUTUAL FUNDS. You can also elect to automatically reinvest your
distributions in certain mutual funds. Unlike your trust, these mutual funds
are managed funds that have different objectives. You can obtain information
about these funds from Ranson.
Understanding Your Investment 9
<PAGE>
REPORTS. The trustee will send your financial professional a statement
showing income and other receipts of your trust for each distribution. Each
year the trustee will also provide an annual report on your trust's activity and
certain tax information. You can request copies of stock evaluations to enable
you to complete your tax forms and audited financial statements for your trust,
if available.
INVESTMENT RISKS
All investments involve risk. This section describes the main risks that can
impact the value of the stocks in your portfolio. You should understand these
risks before you invest. If the value of the stocks falls, the value of your
units will also fall. We cannot guarantee that your trust will achieve its
objective or that your investment return will be positive over any period.
MARKET RISK is the risk that the value of the stocks will fluctuate. This
could cause the value of your units to fall below your purchase price. Market
value fluctuates in response to various factors. These can include changes in
interest rates, inflation, the financial condition of the stock's issuer or even
perceptions of the issuer. Even though we carefully supervise your portfolio,
you should remember that we do not manage your portfolio. Your trust will not
sell a stock solely because the market value falls as is possible in a managed
fund.
CONCENTRATION RISK is the risk that your portfolio is less diversified
because it concentrates in a particular type of stock. When a certain type of
stock makes up more than 25% of a trust, the trust is considered to be
"concentrated" in that stock type. Your portfolio currently concentrates in
TECHNOLOGY COMPANIES. Before you invest, you should understand that:
* these companies encounter
> rapid changes in technology,
> worldwide competition,
> rapid obsolescence of products and services,
> cyclical market patterns,
> rapidly evolving industry standards, and
> frequent new product introductions.
* An unexpected change in one or more of the technologies affecting an
issuer's products or in the market for products based on a particular
technology could negatively affect an issuer's operating results.
* Operating results and customer relationships can be hurt by
> an increase in price, or an interruption or reductions in supply, of any
key components, and
> the failure of an issuer to comply with rigorous industry standards.
CORRELATION RISK is the risk that the performance of the portfolio will not
sufficiently correspond with the index. This can happen for reasons such as:
* the impracticability of owning each of the index stocks with the exact
weightings at a given time.
* the possibility of index tracking errors,
10 Understanding Your Investment
<PAGE>
* the time that elapses between a change in the index and a change in the
portfolio, and
* fees and expenses of the trust.
LITIGATION RISK is the risk that litigation will hurt a company's operating
results or the perception of a company in the stock market. Microsoft
Corporation is currently in litigation with the U.S. Department of Justice,
several state Attorneys General and Sun Microsystems, Inc. The complaints
include copyright infringement, unfair competition and antitrust violations. The
court recently found that Microsoft possesses and exercised monopoly power.
This does not represent a final decision in this litigation. In public
statements following this decision, Microsoft has stated that it will continue
to review the court's findings and analyze their impact. No one can accurately
predict the result or impact of this litigation.
THE NASDAQ-100 INDEX
The Nasdaq-100 Index includes 100 of the largest non-financial domestic and
international stocks listed on the Nasdaq Stock Market based on market
capitalization. Nasdaq represents the fastest growing stock market in the U.S.
and is one of the world's first fully electronic stock markets. This modern-day
securities market began operations in 1971 and today lists more companies than
any other market in the U.S. The Nasdaq Stock Market, Inc. has established
procedures for, and controls over, substitutions of stocks. It may make changes
in the stocks and the eligibility criteria periodically.
Eligibility criteria for the index currently includes an average daily
trading volume of at least 100,000 shares. Generally, a stock must also have
been listed on Nasdaq or a major exchange for at least two years. If a stock
would otherwise rank in the top 25% of stocks in the index by market
capitalization, then a one-year listing requirement applies. Foreign stocks
qualify only if the company has a worldwide market value of at least $10
billion, a U.S. market value of at least $4 billion and an average trading
volume of at least 200,000 shares per day. Foreign stocks must also qualify for
listed-options trading.
This table shows historical data for the index (not your trust or any
previous series). This information is not meant to indicate your future return.
Your investment return will differ from the past returns of the index. Returns
have fluctuated significantly in the past and have not always been positive.
<TABLE>
<CAPTION>
YEAR-END ANNUAL RETURN
YEAR INDEX VALUE* (NO DIVIDENDS)*
---- ------------ ---------------
<S> <C> <C>
2/1/85 125.00 -
1985 132.30 5.84%
1986 141.41 6.89
1987 156.25 10.50
1988 177.41 13.54
1989 223.84 26.17
1990 200.53 (10.41)
1991 330.86 64.99
1992 360.19 8.86
1993 398.28 10.58
1994 404.27 1.50
1995 576.23 42.54
1996 821.36 42.54
1997 990.80 20.63
1998 1,836.01 85.31
1999 3,707.83 101.95
<FN>
- --------------------
* The table above does not reflect the sales fee or expenses you pay on your
units. It also does not reflect the effect of taxes. As with any index
portfolio, your return may differ from that of the actual index. For example,
this could happen because the trust may not be fully invested at all times, the
trust will bear brokerage commissions in buying and selling stocks, and the
weightings of stocks in the trust may not replicate their weightings in the
index at all times.
</TABLE>
Understanding Your Investment 11
<PAGE>
HOW THE TRUST WORKS
YOUR TRUST. Your trust is a unit investment trust registered under the
Investment Company Act of 1940 and the Securities Act of 1933. We created the
trust under a trust agreement between Ranson & Associates, Inc. (as sponsor,
evaluator and supervisor) and The Bank of New York (as trustee). To create your
trust, we deposited contracts to purchase stocks with the trustee along with an
irrevocable letter of credit or other consideration to pay for the stocks. In
exchange, the trustee delivered units of your trust to us. Each unit represents
an undivided interest in the assets of your trust. These units remain
outstanding until redeemed or until your trust terminates.
CHANGING YOUR PORTFOLIO. Your trust is not a managed fund. Unlike a managed
fund, we designed your portfolio to remain relatively fixed except as is
necessary to replicate its index. Your trust will generally buy and sell
stocks:
* to reflect changes in its index,
* to establish a closer correlation with its index,
* to pay expenses or unit redemptions,
* to make required distributions or avoid imposition of taxes on the trust,
or
* as we may determine is necessary.
Your trust will generally reject any offer for securities or other property
in exchange for the stocks in its portfolio. If your trust receives securities
that are not in its index or other property, it will usually sell the securities
or property and use the proceeds to buy stocks as described above or distribute
the proceeds. For example, this could happen in a merger or similar
transaction. If the Nasdaq Stock Market discontinues the index, we may continue
operation of your trust using the index as it existed on the last date its was
available or we may terminate your trust.
We will increase the size of your trust as we sell units. When we create
additional units, we will seek to maintain a portfolio that replicates the
index. When your trust buys stocks, it will pay brokerage or other acquisition
fees. You could experience a dilution of your investment because of these fees
and fluctuations in stock prices between the time we create units and the time
your trust buys the stocks. When your trust buys or sells stocks, we may direct
that it place orders with and pay brokerage commissions to brokers that sell
units or are affiliated with your trust. We may consider whether a firm sells
units of our trusts when we select firms to handle these transactions.
AMENDING THE TRUST AGREEMENT. Ranson and the trustee can change the trust
agreement without your consent to correct any provision that may be defective or
to make other provisions that will not adversely affect your interest (as
determined by Ranson and the trustee). We cannot change this agreement to
reduce your interest in your trust without your consent. Investors owning two-
thirds of the units in your trust may vote to change this agreement.
TERMINATION OF YOUR TRUST. Your trust will terminate no later than the
termination date listed in the "Investment Summary" section of this prospectus.
The trustee may terminate your trust early if the value of the trust is less
than 20% of the original value of the stocks in the trust at the time of
deposit. At this size, the expenses of your trust may create an undue burden on
your investment. Investors owning two-thirds of the
12 Understanding Your Investment
<PAGE>
units in your trust may also vote to terminate the trust early. We may also
terminate your trust in limited circumstances, such as if the Nasdaq Stock
Market discontinues the index.
The trustee will notify you of any termination and sell any remaining stocks.
The trustee will send your final distribution to you within a reasonable time
following liquidation of all the stocks after deducting final expenses. Your
termination distribution may be less than the price you originally paid for your
units. You may be able to request an in kind distribution of the stocks
underlying your units at termination. Please refer to the section entitled "How
to Sell Your Units-Redeeming Units" for information on in kind distributions.
RANSON. We are an investment banking firm created in 1995 by former owners
and employees of Ranson Capital Corporation. We are the successor to a series
of companies first organized in 1935. During our history we have been active in
public and corporate finance and have distributed bonds, mutual funds and unit
trusts in the primary and secondary markets. We are a registered broker-dealer
and member of the National Association of Securities Dealers, Inc. If we fail
to or cannot perform our duties as sponsor or become bankrupt, the trustee may
replace us, continue to operate your trust without a sponsor, or terminate your
trust. You can contact us at our headquarters at 250 North Rock Road, Wichita,
Kansas 67206-2241 or by using the contacts listed on the back cover of this
prospectus.
THE TRUSTEE. The Bank of New York is the trustee of your trust. It is a
trust company organized under New York law. You can contact the trustee by
calling the telephone number on the back cover of this prospectus or write to
Unit Investment Trust Division, 101 Barclay Street, New York, New York 10286.
We may remove and replace the trustee in some cases without your consent. The
trustee may also resign by notifying Ranson and investors.
HOW WE DISTRIBUTE UNITS. We sell units to the public through broker-dealers
and other firms. We pay part of the sales fee to these distribution firms when
they sell units. The distribution fee during the initial offering period is as
follows:
<TABLE>
<CAPTION>
If a firm distributes: It will earn:
---------------------- -------------
<S> <C>
Less than $100,000 4.00%
$100,000 - $249,999 3.60
$250,000 - $499,999 3.50
$500,000 - $999,999 2.70
$1,000,000 or more 2.20
</TABLE>
We apply these amounts as a percent of the unit price per transaction at the
time of the transaction. We also apply the different distribution levels on a
unit basis using a $10 unit equivalent. For example, if a firm distributes
between 10,000 and 24,999 units, it earns 3.60% of the unit price. In addition,
firms can earn additional amounts based on total sales of all Ranson equity
index unit trusts during a single calendar month:
<TABLE>
<CAPTION>
If a firm sells this amount It will earn an
in a single month: additional:
--------------------------- ---------------
<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>
Understanding Your Investment 13
<PAGE>
We apply these amounts as a percent of the total distribution price. We pay
these additional amounts out of our own assets and not out of your sales fee
directly.
We generally register units for sale in various states in the U.S. We do not
register units for sale in any foreign country. It is your financial
professional's responsibility to make sure that units are registered or exempt
from registration if you are a foreign investor or if you want to buy units in
another country. This prospectus does not constitute an offer of units in any
state or country where units cannot be offered or sold lawfully. We may reject
any order for units in whole or in part.
We may gain or lose money when we hold units in the primary or secondary
market due to fluctuations in unit prices. The gain or loss is equal to the
difference between the price we pay for units and the price at which we sell or
redeem them. We may also gain or lose money when we to deposit securities to
create units. For example, we lost $93.71 on the initial deposit of stocks into
the trust.
TAXES
This section discusses some of the main U.S. federal income tax consequences
of owning units of your trust. This section is current as of the date of this
prospectus. Tax laws and interpretations change frequently, and this summary
does not describe all of the tax consequences to all taxpayers. For example,
this summary generally does not describe your situation if you are a non-U.S.
person, a broker-dealer, or other investor with special circumstances. In
addition, this section does not describe your state, local or foreign taxes. As
with any investment, you should consult your own tax professional about your
particular consequences.
TRUST STATUS. Your trust intends to qualify as a "regulated investment
company" under the federal tax laws. If the trust qualifies as a regulated
investment company and distributes its income as required by the tax law, the
trust generally will not pay taxes on income.
DISTRIBUTIONS. Trust distributions are taxable to most investors. At the
end of each year, you will receive a tax statement that separates your trust's
distributions into two categories, ordinary income distributions and capital
gains dividends. Ordinary income distributions are generally taxed at your
ordinary tax rate. Generally, you will treat all capital gains dividends as
long-term capital gain regardless of how long you have owned your units. To
determine your actual tax liability for your capital gains dividends, you must
calculate your total net capital gain or loss for the tax year after considering
all of your other taxable transactions, as described below. The tax status of
your dividends from your trust is not affected by whether you reinvest your
dividends in additional units or receive them in cash. The tax laws may require
you to treat distributions made to you in January as if you had received them on
December 31 of the previous year.
IF YOU SELL OR REDEEM UNITS. If you sell or redeem your units, you will
generally recognize a taxable gain or loss. To determine the amount of this
gain or loss, you must subtract your tax basis in your units from what you
receive in the transaction. Your tax basis in your units is generally equal to
the cost of your units. In some cases, however, you may have to adjust your tax
basis after you purchase your units.
14 Understanding Your Investment
<PAGE>
TAXATION OF CAPITAL GAIN AND LOSSES. If you are an individual, the federal
tax rate for net capital gain is generally 20% (10% for certain taxpayers in the
lowest tax bracket). Net capital gain equals net long-term capital gain minus
net short-term capital loss for the taxable year. 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. You must exclude the
date you purchase your units to determine the holding period of your units.
However, if you receive a capital gain dividend and sell your unit at a loss
after holding it for six months or less, the loss will be recharacterized as
long-term capital loss to extent of the capital gain received as a dividend.
The tax rates for capital gains realized from assets held for one year or less
are generally the same as for ordinary income.
IN-KIND DISTRIBUTIONS OF STOCK. If you own enough units, you may receive an
in-kind distribution of portfolio stocks when you redeem units or when your
trust terminates. This transaction is subject to taxation and you will
recognize gain or loss, generally based on the value at that time of the stocks
and the amount of cash received.
DEDUCTIBILITY OF TRUST EXPENSES. Deductible expenses incurred by the trust
will generally not be treated as income taxable to you. In some cases, however,
you may be required to treat your portion of these trust expenses as income. In
these cases you may be able to take a deduction for these expenses. However,
certain miscellaneous itemized deductions, such as investment expenses, may be
deducted by individuals only to the extent all these deductions exceed 2% of
adjusted gross income.
FOREIGN TAX CREDIT. If your trust invests in any foreign stocks, the tax
statement that you receive may include an item showing foreign taxes your trust
paid to other countries. In this case, dividends taxed to you will include your
share of the taxes your trust paid to other countries. You may be able to
deduct or receive a tax credit for your share of these taxes.
EXPENSES
Your trust will pay various expenses to conduct its operations. The
"Investment Summary" section of this prospectus shows the estimated amount of
these expenses.
Your trust will pay a fee to the trustee for its services. The trustee also
benefits when it holds cash for your trust in non-interest bearing accounts.
Your trust will reimburse us as supervisor and evaluator for providing portfolio
supervisory services and for evaluating your portfolio. Our reimbursements may
exceed the costs of the services we provide to your trust but will not exceed
the costs of services provided to all Ranson unit investment trusts in any
calendar year. All of these fees may adjust for inflation without your
approval.
Your trust will pay a fee to the sponsor for creating and developing the
trust, including determining the trust objective, policies, composition and
size, selecting service providers and information services, and for providing
other similar administrative and ministerial functions. Your trust pays this
"creation and development fee" as a percentage of your trust's average daily net
asset value (not to exceed 2.35 percent of your initial investment over the life
of the trust). The sponsor does not use the fee to pay distribution expenses or
as compensation for sales efforts. This fee has historically been included in
the sales charge.
Understanding Your Investment 15
<PAGE>
Your trust will also pay its general operating expenses. Your trust may pay
expenses such as trustee expenses (including legal and auditing expenses),
various governmental charges, fees for extraordinary trustee services, costs of
taking action to protect your trust, costs of indemnifying the trustee and
Ranson, legal fees and expenses, expenses incurred in contacting you and costs
incurred to reimburse the trustee for advancing funds to meet distributions.
Your trust will also pay a license fee to The Nasdaq Stock Market, Inc. for the
use of various trademarks and trade names. Your trust may pay the costs of
updating its registration statement each year. The trustee may sell stocks to
pay any trust expenses.
EXPERTS
LEGAL MATTERS. Chapman and Cutler, 111 West Monroe Street, Chicago, Illinois
60603 (http://www.chapman.com), acts as counsel for Ranson and has given an
opinion that the units are validly issued.
AUDITORS. Allen, Gibbs & Houlik, L.C., independent auditors, audited the
statement of financial condition and the portfolio included in this prospectus.
ADDITIONAL INFORMATION
This prospectus does not contain all the information in the registration
statement that your trust filed with the Securities and Exchange Commission.
The Information Supplement, which was filed with the Securities and Exchange
Commission, includes more detailed information about the stocks in your
portfolio, investment risks and general information about your trust. You can
obtain the Information Supplement by contacting Ranson or the Securities and
Exchange Commission as indicated on the back cover of this prospectus. This
prospectus incorporates the Information Supplement by reference (it is legally
considered part of this prospectus).
16 Understanding Your Investment
<PAGE>
REPORT OF ALLEN, GIBBS & HOULIK, L.C.
INDEPENDENT AUDITORS
UNITHOLDERS
RANSON UNIT INVESTMENT TRUSTS, SERIES 90
We have audited the accompanying statement of financial condition, including the
Trust portfolio, of Ranson Unit Investment Trusts, Series 90, as of the opening
of business on March 2, 2000, the Initial Date of Deposit. The statement of
financial condition is the responsibility of the Sponsor. Our responsibility is
to express an opinion on the statement of financial condition based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the statement of financial condition are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the statement of financial condition.
Our procedures included confirmation of the purchases of Securities to be
deposited in the Trust by correspondence with the Trustee. An audit also
includes assessing the accounting principles used and significant estimates made
by the Sponsor, as well as evaluating the overall statement of financial
condition presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the statement of financial condition referred to above presents
fairly, in all material respects, the financial position of Ranson Unit
Investment Trusts, Series 90 as of March 2, 2000, in conformity with generally
accepted accounting principles.
ALLEN, GIBBS & HOULIK, L.C.
Wichita, Kansas
March 2, 2000
Understanding Your Investment 17
<PAGE>
<TABLE>
<CAPTION>
RANSON UNIT INVESTMENT TRUSTS, SERIES 90
STATEMENT OF FINANCIAL CONDITION
AT THE OPENING OF BUSINESS ON MARCH 2, 2000, THE INITIAL DATE OF DEPOSIT
<S> <C>
INVESTMENT IN STOCKS
Contracts to purchase stocks $ 164,454
==========
LIABILITY AND INTEREST OF INVESTORS
Liability
Organization costs $ 864
----------
Interest of investors
Cost to investors 172,930
Less: gross underwriting commission and organization costs 9,340
----------
Net interest of investors 163,590
----------
Total $ 164,454
==========
<FN>
- --------------------
Notes:
(1) Aggregate cost of the Securities is based on the last sale price evaluations
as determined by the Trustee.
(2) An irrevocable letter of credit or cash has been deposited with the Trustee
covering the funds (aggregating $164,360) necessary for the purchase of the
Securities in the Trust represented by purchase contracts.
(3) A portion of the Public Offering Price represents an amount sufficient to pay
for all or a portion of the costs incurred in establishing and offering the
Trust. The amount of these costs is set forth under "Essential Information."
A distribution will be made as of the close of the initial offering period to
an account maintained by the Trustee from which this obligation of the
investors will be satisfied.
(4) The aggregate cost to investors includes the applicable sales charge assuming
no reduction of sales charges for quantity purchases.
</TABLE>
18 Understanding Your Investment
<PAGE>
CONTENTS
Investment Summary
- --------------------------------------------------------------
A concise description of 2 Investment Objective
of essential information 2 Investment Strategy
about the portfolio 2 Principal Risks
3 Who Should Invest
3 Essential Information
3 Fees and Expenses
4 The Portfolio
Understanding Your Investment
- --------------------------------------------------------------
Detailed information to 6 How to Buy Units
help you understand 8 How to Sell Your Units
your investment 9 Distributions
10 Investment Risks
11 The Nasdaq-100 Index
12 How the Trust Works
14 Taxes
15 Expenses
16 Experts
16 Additional Information
17 Report of Independent Auditors
18 Financial Statements
Where to Learn More
- --------------------------------------------------------------
You can contact us for VISIT US ON THE INTERNET
free information about http://www.ranson.com
this and other invest- BY E-MAIL
ments, including the [email protected]
Information Supplement. CALL RANSON
(800) 345-2363
CALL BANK OF NEW YORK
(800) 701-8178 (investors)
(800) 647-3383 (brokers)
Additional Information
- --------------------------------------------------------------
This prospectus does not contain all information filed with
the Securities and Exchange Commission. To obtain or copy
this information, including the Information Supplement (a
duplication fee may be required):
E-MAIL: [email protected]
WRITE: Public Reference Section
Washington, D.C. 20549-0102
VISIT: http://www.sec.gov (EDGAR Database)
CALL: 1-202-942-8090 (only for information on
the operation of the Public Reference Section)
REFER TO:
RANSON UNIT INVESTMENT TRUSTS, SERIES 90
Securities Act file number: 333-93833
Investment Company Act file number: 811-3763
<PAGE>
RANSON
UNIT
INVESTMENT
TRUSTS
[LOGO]
THE NASDAQ-100 INDEX TRUST
SERIES 8
PROSPECTUS MARCH 2, 2000
