November 21, 1990
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 53-90
RE: USE OF LONG TERM PERFORMANCE FIGURES ON SECONDARY TRUSTS
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At the most recent meeting of the Unit Investment Trust
Committee, we discussed the feasibility of quoting a long term
performance number such as ELTR, in connection with sales of
units in the secondary market. As you know, the SEC staff has
required such a number to be used in connection with initial
offerings of units since the summer of 1989.
The Subcommittee on Yield has concluded that it would be
advisable to begin quoting ELTR, along with estimated current
return, on all secondary trusts offered by those sponsors by
February 1, 1991. Kenny-Standard & Poor's, the evaluator for
many UITs, has indicated that it will be able to supply ELTR for
all secondary UITs on a daily basis by that date. John Nuveen
and Van Kampen Merritt also anticipate that they will be able to
supply ELTR on or about that date.
Accordingly, all members of the Subcommittee plan to quote
ELTR "on screen" for their secondary trusts by February 1, 1991
or shortly thereafter. As soon as practicable thereafter, ELTR
will be included on confirmations for all sales of secondary
trust units. (It is expected that different sponsors will begin
to include ELTR on confirmations at various times, depending on
their own capabilities.)
Of course, this decision is not binding on any other
members of the Committee. However, if you have any questions
about the Subcommittee's decision, please feel free to call me at
201/902-6800.
Robert E. Holley
Chairman