Defined Asset Funds
Select Ten Portfolio
A Simple Investment Strategy Seeking Higher Total Return
A Simple Strategy For Potentially Higher Total Return
The Select Ten Portfolio seeks higher total return over a one-year
period by holding the ten current highest dividend-yielding stocks of the Dow
Jones Industrial Average (DJIA).(1) These companies are highly capitalized
and widely held. Many are household names. Purchasing a portfolio of these
stocks instead of just one or two is a way to diversify your stock holdings.
Investing in a number of quality stocks when their prices are depressed is a
strategy designed to increase the potential for higher total return.
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(1) The name "Dow Jones Industrial Average" is the property of Dow Jones &
Company, Inc., which is unaffiliated with and has not participated in
any way in the creation of the Select Ten Portfolio or the selection of
its stocks.
The Portfolio is designed for investors able and willing to assume
the risks generally associated with equity investing. It may not be
appropriate for investors seeking preservation of capital.
How The Portfolio Works
The Portfolio consists of approximately equal values of the ten
stocks in the DJIA having the highest dividend yield shortly before the
initial offering date (the "Strategy Stocks") and holds them for about a year.
The Portfolio will remain relatively fixed during this time. After one year,
the Portfolio will liquidate. You may choose to roll your proceeds into the
next portfolio of the then-current Strategy Stocks, if available, or you can
take the cash.
Portfolio Performance
The following shows total returns (price changes plus dividends received,
divided by the maximum initial public offering price) for each completed
prior series, and reflects all sales charges and expenses.
Fund Term Total Return
Series B
1991 Spring 5/17/91-6/12/92 14.72%
1992 Spring 5/5/92-5/14/93 4.67%
1993 Spring 5/5/93-5/13/94 6.83%
1994 Spring 5/6/94-5/31/95 19.05%
Series C
1992 Autumn 9/1/92-9/14/93 17.01%
1993 Autumn 9/1/93-9/16/94 7.08%
1994 Autumn 9/7/94-9/29/95 23.90%
Series A
1992 Winter 1/2/92-1/8/93 0.07%
1993 Winter 1/4/93-1/14/94 23.93%
1994 Winter 1/5/94-1/27/95 -0.52%
1995 Winter 1/6/95-2/23/96 39.73%
On the same basis, including presently outstanding series, a holder who
rolled over all income and principal distributions in the next available
series would have received the following results.
Average
Series Term Total Return Annual Return
Spring 5/17/91-12/31/95 85.31% 14.28%
Autumn 9/1/92-12/31/95 71.95% 17.70%
Winter 1/3/92-12/31/95 65.77% 13.51%
Past performance is no guarantee of furture results.
Low Initial sales Charge
Reduced Charge for Rollovers
First-time investors pay a 1% sales charge when they buy. For
example, on a $1,000 investment, $990 is invested in income-producing stocks.
In addition, a deferred sales charge of $1.75 per 1,000 units will be deducted
from the Portfolio's net asset value each month over the last ten months of
the Portfolio's life ($17.50 total). This deferred method of payment keeps
more of your money invested over a longer period of time. When you roll the
proceeds of your investment into a new portfolio, if available, you will not
be subject to the 1% initial charge, just the $17.50 deferred fee. If you
sell your investment before maturity, the remaining deferred sales charge and
possibly a nominal transaction fee will be deducted.
Time-Tested Track Record
The Strategy Stocks have outperformed the DJIA for 13 out of the past
20 years (see "Comparison of Total Returns").
[A mountain chart, captioned "Suppose you had invested $10,000 in the
Strategy in 1976?" compares the cumulative annual performance from 1976
through 12/31/95 of the Strategy stocks (orange) with the Dow Jones
Industrial Average (blue). A box in the upper left quadrant indiciates the
components of the chart. The y axis reflects dollar amounts in $25,000
increments; the y axis reflects years. The initial value of each is
$10,000; next to the right margin the ending values are stated as follows:
$261,132 Ending 12/31/95 (Strategy); $137,445 Ending 12/31/95 (DJIA).]
The chart above represents past performance of the DJIA and the
Strategy Stocks (but not any particular Portfolio) and should not be
considered indicative of future results. The performance of the Strategy is a
hypothetical example of how the Select Ten Portfolio could have performed if
its Strategy had been employed since 1976. The chart assumes that all
dividends during a year are reinvested at the end of that year. It does not
reflect sales charges, commissions, expenses or taxes.
Comparison of Total Returns*
Year DJIA Total Returns Strategy Stocks Total Return
1976 22.72% 34.81%
1977 -12.71% -0.83%
1978 2.69% 0.16%
1979 10.52% 12.35%
1980 21.41% 26.37%
1981 -3.40% 7.47%
1982 25.79% 25.46%
1983 25.68% 38.46%
1984 1.06% 7.34%
1985 32.78% 28.63%
1986 26.91% 34.57%
1987 6.02% 6.97%
1988 15.95% 21.50%
1989 31.71% 27.30%
1990 -0.57% -7.94%
1991 23.93% 33.37%
1992 7.34% 8.32%
1993 16.72% 26.92%
1994 4.95% 3.78%
1995 36.48% 36.48%
Average ** 14.00% 17.72%
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* The Strategy Stocks underperformed the DJIA in certain years. Investors in
the Portfolio may not realize as high a total return since the Portfolio
has sales charges and expenses, and may not be fully invested at all times.
Portfolio unit price will fluctuate with the value of the Strategy Stocks
and there is no assurance that dividends on these stocks will be paid or
that the units will appreciate in value.
**Average annual total return represents the annual rate of price
appreciation, plus dividends, that the Strategy Stocks would have earned
from January 1, 1976 to December 31, 1995.
Sometimes simple strategies can be the most effective ...
Time-Tested Investments Principles
1. Time in the market is more important than timing the market.
2. The stocks to but are the ones everyone else is selling.
3. Dividends can be an important part of the total return.
Select Ten Highlights
- -Minimum investment of $250 for regular or IRA accounts.
- -Quarterly dividends distributions.
- -Reduced risk by investing in ten different securities.
- -Low initial sales charge; balance deferred.
- -Volume discounts.
- -Reduced sales charges for rollovers.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put
more of your investment dollars to work for you.
Find out more about our current series
Defined Asset Funds plans to offer each Select Ten Portfolio three
times a year:
January - Series A (Winter)
May - Series B (Spring)
September - Series C (Autumn)
Brochures on each of the current Defined Asset Funds, Select Ten
(DJIA), Hong Kong, United Kingdom and Japan Portfolios are available through
your financial professional. A free prospectus containing more complete
information, including all charges and expenses on any of these portfolios, is
also available. Read it carefully before investing.
A registration statement relating to the next Series of the Select
Ten Portfolio has been filed with the Securities and Exchange Commission. The
securities of that Series may not be sold, nor may offers to buy be accepted
prior to the time the registration statement becomes effective. This brochure
shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of those securities in any state in which such
offer, solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
