Why is CSCO not included in this BROADBAND fund issued by Merrill? STRANGE!
tscn.com
NEW YORK, Apr 6, 2000 (BUSINESS WIRE) -- Merrill Lynch today announced that Broadband HOLDRS (Amex: BDH) are expected to begin trading this morning with an initial market capitalization of approximately $550 million.
Broadband HOLDRS represent investors' undivided beneficial ownership interest in the common stock of 20 companies that, among other things, develop, manufacture and market products and services, which facilitate the transmission of data, video and voice more quickly and efficiently than traditional telephone line communications.
"Broadband stocks offer significant investment potential as bandwidth technology continues to develop over the next several years but trying to identify which handful of stocks will carry the group is extremely difficult," said Steve Bodurtha, head of Customized Investments at Merrill Lynch. "However, by investing in broadband companies through HOLDRS, investors can unlock the power of diversification through an extremely efficient investment vehicle."
The annual expense for owning HOLDRS is 8 cents per share, or generally less than 0.10%. This expense is waived to the extent it is not covered by dividends on the underlying stocks.
Investors may cancel their HOLDRS and take possession of the underlying stocks for a fee of no more than 10 cents per HOLDR. This process is not a taxable event and will provide investors with investing and trading flexibility. HOLDRS also enable investors to implement a true buy and hold investment strategy.
In July 1998, Merrill Lynch launched its first HOLDRS product, Telebras HOLDRS (NYSE: "TBH"), with an initial market capitalization of about $4.68 billion. Telebras HOLDRS represent investors' interests in 12 separate American Depositary Receipts. Since its inception, TBH has traded on average almost 1.7 million shares per day.
In addition to Broadband HOLDRS and Telebras HOLDRS, there are a total of seven other HOLDRS: Telecom HOLDRS (TTH), Pharmaceutical HOLDRS (PPH), B2B Internet HOLDRS (BHH), Internet Infrastructure HOLDRS (IIH), Internet Architecture HOLDRS (IAH), Biotech HOLDRS (BBH) and Internet HOLDRS (HHH).
An investor may obtain HOLDRS by purchasing them in the secondary market - just like any other stock - or by depositing with the HOLDRS Trustee the required share amounts of the 20 underlying stocks and paying an issuance fee of up to $0.10 per HOLDR to the Trustee. HOLDRS can only be traded, issued and cancelled in round lots of 100 HOLDRS.
The specific share amounts underlying each round lot of 100 Broadband HOLDRS are set forth in the chart below. These share amounts should not vary except for changes due to corporate events such as stock splits or reverse splits on the underlying securities or reconstitution events.
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Ticker Name of Company Shares per HOLDRS
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LU LUCENT TECHNOLOGIES INC 29
NT NORTEL NETWORKS CORP 14
MOT MOTOROLA INC 6
QCOM QUALCOMM INC 8
JDSU JDS UNIPHASE CORP 8
BRCM BROADCOM CORP -CL A 2
GLW CORNING INC 3
SCMR SYCAMORE NETWORKS INC 3
AMCC APPLIED MICRO CIRCUITS CORP 1
TLAB TELLABS INC 4
TERN TERAYON COMMUN SYSTEMS INC 1
PMCS PMC-SIERRA INC 1
CMVT COMVERSE TECHNOLOGY INC 2
SDLI SDL INC 1
CNXT CONEXANT SYSTEMS INC 2
NXTV NEXT LEVEL COMM INC 1
RFMD RF MICRO DEVICES INC 1
SFA SCIENTIFIC-ATLANTA INC 2
CIEN CIENA CORP 1
CMTN COPPER MTN NETWORKS INC 1
The Merrill Lynch U.S. Private Client Group serves nearly 6 million households, small- to-mid-sized businesses and regional financial institutions using a planning-based approach to portfolio management. Among the many services available to Merrill Lynch clients are self-directed and full-service brokerage, personal credit, insurance, home financing and trust services, as well as retirement and group-employee-benefit services and business financing.
Merrill Lynch clients are served by more than 14,200 Financial Consultants in nearly 800 branch offices nationwide. As of the end of 1999, investors worldwide had entrusted Merrill Lynch with more than $1.7 trillion in client assets. |
