Defined
Asset Funds(SM)
Global Diversification
- ------------------------------
with the Select Ten Strategies
DJIA Portfolio
[picture of gold coin]
Hong Kong
Portfolio
[picture of statuesque goddess of mercy]
United Kingdom
Portfolio
[picture of Big Ben]
Japan Portfolio
[picture of orange gate]
Simple Investment Strategies
for Global Diversification
and Total Return
Merrill Lynch
Global Diversification
with Select Ten
Investing in the ten highest dividend-yielding stocks in a certain index for
about one year is proven Strategy that seeks attractive total return. This
Strategy is the basis for Defined Asset Funds Select Ten Series.
The Portfolios currently available in the Select Tenn Series feature these
indices:
o Dow Jones Industrial Average (DJIA Strategy)*
o The United Kingdom's Financial Times Industrial Ordinary Share Index
(FT Strategy)*
o Hong Kong's Hang Seng Index (Hang Seng Strategy)*
o Japan's Nikkei 225 Index (Nikkei Strategy)*
The Select Ten Strategy
Each Select Ten Portfolio consists of approximately equal values of the ten
stocks in its related index having the highest dividend yield shortly before
the initial offering date (the "Strategy Stocks") and holds them for about a
year. The Portfolios will remain relatively fixed during this time. After
one year, the Portfolios will liquidate. You may choose to reinvest your
proceeds into the next portfolio of the then-current Strategy Stocks, if
available, or you can take t he cash.
* The names of DJIA Index, FT 30 Index, the Hang Seng Index and the Nikkei
225 Index are the properties of their respective publishers. None of these
firms are affiliated with or have participated in the creation of any Select
Ten Portfolio or the selection of its stocks.
About the Charts
These figures represent past performance of the Strategy. Each Strategy would
have underperformed in certain years and there is no guarantee of future
results. Because the Portfolios have sales charges and are not fully invested
at all times, actual results may be more or less than their related Strategy.
Both dividend income and stock prices may fluctuate.
Total return represents price changes plus dividends received (reinvested at
the end of each year in summary figures). These figures do not reflect
commissions or taxes.
Average annualized return represents annualized total return for the entire
period.
Strategy Illustrations
<TABLE>
<CAPTION>
DJIA Portfolio Hong Kong Portfolio
January 1, 1976 - March 31, 1996 January 1, 1978 - March 31, 1996
Year DJIA Strategy Stocks Year Hang Seng Strategy Stocks
Total Return Total Return Index Total Return
<S> <C> <C> <C> <C> <C>
1976 22.72% 34.81% 1976 N/A N/A
1977 -12.71 -0.86 1977 N/A N/A
1978 2.69 0.16 1978 23.51% 28.04%
1979 10.52 12.35 1979 78.33 82.28
1980 21.41 26.37 1980 65.83 41.40
1981 -3.40 7.47 1981 -11.07 -3.86
1982 25.79 25.46 1982 -47.79 -38.97
1983 25.68 38.46 1983 -0.89 -7.48
1984 1.06 7.34 1984 42.54 65.32
1985 32.78 28.63 1985 51.10 47.52
1986 26.91 34.57 1986 51.16 60.49
1987 6.02 6.97 1987 -6.73 3.03
1988 15.95 21.50 1988 20.60 34.04
1989 31.71 27.30 1989 10.19 9.41
1990 -0.57 -7.94 1990 48.25 6.11
1991 23.93 33.37 1991 33.63 48.51
1992 7.34 8.32 1992 121.11 38.94
1993 16.72 26.92 1993 -28.83 106.99
1994 4.95 3.89 1994 26.95 -31.45
1995 36.48 36.48 1995 9.63 16.11
1/1-3/31/96 9.78 6.07 1/1-3/31/96 13.09
Average 14.34% 17.82% Average 21.11% 22.92%
</TABLE>
<TABLE>
<CAPTION>
Untied Kingdom Portfolio Japan Portfolio
January 1, 1976 - March 31, 1996 January 1, 1976 - March 31, 1996
Year FT 30 Index Strategy Stocks Year Nikkei 225
Total Return Total Return Index Strategy Stocks
Total Return Total Return
<S> <C> <C> <C> <C> <C>
1976 -15.58% -15.89% 1976 21.93% 10.57%
1977 61.92 87.27 1977 21.55 54.28
1978 9.92 17.73 1978 55.32 72.10
1979 3.59 4.76 1979 -10.00 -0.89
1980 31.77 30.15 1980 29.47 38.93
1981 -5.30 -6.26 1981 2.20 18.44
1982 0.42 44.03 1982 -0.77 -2.54
1983 21.94 42.06 1983 27.08 31.04
1984 2.15 5.50 1984 8.92 3.11
1985 54.74 78.64 1985 44.19 53.01
1986 24.36 32.88 1986 83.78 77.83
1987 38.99 48.10 1987 50.71 93.67
1988 6.74 11.38 1988 36.57 63.04
1989 22.80 28.71 1989 12.80 22.96
1990 10.29 9.26 1990 -34.79 -40.99
1991 14.65 16.57 1991 5.56 6.90
1992 -2.33 4.27 1992 -25.76 -16.17
1993 18.40 37.69 1993 15.94 21.52
1994 1.89 5.46 1994 28.30 27.99
1995 17.63 10.83 1995 -2.30 -4.98
1/1-3/31/96 2.21 5.17 1/1-3/31/96 4.50 5.00
Average 14.40% 22.20% Average 15.31% 21.85%
</TABLE
[A mountain chart, captioned "Suppose you had invested $10,000 in each
Strategy?", compares the cumulative annual performance from 1976 through
3/31/96 of the Nikkei Strategy Stocks (solid yellow), Nikkei 225 Index (dotted
yellow), FT Strategy Stocks (solid blue), FT 30 Index (dotted blue), Hang Seng
Strategy Stocks (solid green), Hang Seng Index (dotted green), DJIA Strategy
Stocks (solid purple) and DJIA (dotted purple). The components of the chart
all shown on the left side of the chart. The x-axis reflects dollar amounts
in $50,000 increments; the y-axis reflects years. The initial value of each
is $10,000; in the right margin the values are stated as follows: $579,568 for
the FT Strategy Stocks, $546,571 for the Nikkei Strategy Stocks, $432,202 for
the Hang Seng Strategy Stocks, $329,552 for the Hang Seng Index, $276,983 for
the DJIA Strategy Stocks, $179,008 for the Nikkei 225 Index, $152,570 for the
FT 30 Index and $150,888 for the DJIA.
Select Ten:
Your Passport to
Global Diversification
In recent years, many American investors have begun investing globally to seek
diversification and additional investment opportunities outside the U.S.
After all, U.S. capital markets today represent less than 40% of total world
capitalization -- that to over 65% in 1970.
By including some international stocks in an equity portfolio, investors could
have reduced overall portfolio volatility while increasing total return.
The United Kingdom, Japan, Hong Kong, and the United States. . .each of the
countries offer potential growth opportunities. The Select Ten Portfolios can
be a convenient and cost effective way to help yo diversity globally.
Select Ten Highlights
o $250 minimum investment for each portfolio
o Dividend Distributions
- Quarterly for DJIA
- Semi-annually for Internationals
o Reduced risk by investing in ten different securities in each portfolio
o Low initial sales charge
o Volume discounts
o Reduced sales charge for rollovers
o Dividend reinvestment option
A free prospectus containing more complete information on any of these
Portfolios, including all charges and expenses and the special considerations
associated with the risks of international investing, such as foreign currency
risk, is also available. Read it carefully before investing.
Prior Select Ten Portfolio Performance*
The following shows total returns in U.S. dollars (price changes plus
dividends received, divided by the maximum initial offering price, each
converted into U.S. dollars) for each completed prior series, and reflects all
ales charges and expenses.
Fund Term Total Return
DJIA Portfolio
Series A
1992 Winter 1/3/92-1/8/93 0.07%
1993 Winter 1/4/93-1/14/94 23.93%
1994 Winter 1/5/94-1/27/95 -0.52%
1995 Winter 1/9/95-2/23/96 39.75%
Series B
1991 Spring 5/17/-6/12/92 14.72%
1992 Spring 5/5/92-5/14/93 4.67%
1993 Spring 5/5/92-5/13/93 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 9/1/92-9/16/93 7.08%
Hong Kong Portfolio
1993 Spring B 6/21/93-7/22/94 20.07%
1993 Autumn C 9/28/93-10/28/94 7.93%
1994 Winter A 1/5/94-2/3/95 -45.09%
1994 Spring B 5/6/94-6/16/95 -9.49%
1994 Autumn C 9/6/94-10/13/95 -27.02%
1995 Winter A 1/6/95-2/23/96 41.18%
United Kingdom Portfolio
1993 Spring B 6/21/93-7/22/94 16.36%
1993 Autumn C 9/28/93-10/28/94 10.52%
1994 Winter A 1/5/94-2/395 -4.21%
1994 Spring B 5/6/94-6/16/95 8.75%
1995 Winter A 1/6/95-2/23/96 6.53%
On the same basis, including presently outstanding series, an investor who
reinvested all income and principal distributions in the next available series
would have received the following results:
Average Annual
Series Term Total Return Total Return
DJIA Portfolio
Spring B 5/17/91-3/31/96 96.62% 14.89%
Autumn C 9/1/92/3/31/96 84.71% 18.72%
Winter A 1/3/92-3/31/96 73.88% 13.94%
Hong Kong Portfolio
Spring B 6/21/93-3/31/96 25.87% 8.65%
Autumn C 9/28/93-3/31/96 -.79% -.32%
Winter A 1/5/94-3/31/96 -20.56% -9.89%
United Kingdom Portfolio
Spring B 6/21/93-3/31/96 11.41% 3.97%
Autumn C 9/28/93-3/31/96 6.41% 2.52%
Winter A 1/5/94-3/31/96 1.02% .46%
* this represents past performance, and is no guarantee of future results.
INSERT
Global Diversification
- ------------------------------
with the Select Ten Strategies
[picture of
a torch] The Dow Jones
Industrial Average:
The Dow Jones Industrial Average (DJIA) consists of 30 common stocks
chosen by the editors of The Wall Street Journal as representative of the New
York Stock Exchange and of American industry. The companies are highly
capitalized, leaders in their industries, and their stocks are widely held by
individual and institutional investors.
[picture of
Big Ben] The Financial Times Industrial
Ordinary Share Index:
The Financial Times Industrial Ordinary Share Index (FT) consists of
30 common stocks chosen by the editors of The Financial Times (London) to be
representative of British industry and commerce. The companies are major
players in t heir industries and their stocks are widely held.
[picture of The Nikkei 225 Index:
japanese gate]
The Nikkei 225 Index, published by the Nihon Keizai Shimbun (Japan
Economic Journal), consists of 225 highly capitalized Japanese companies.
First published in 1950, the Nikkei is well known both in Japan and worldwide.
[picture of The Hang Seng Index:
the Pagoda]
The Hang Seng Index, published in 1969, is the recognized indicator
of Hong Kong's stock market performance. The index includes companies
intended to represent commerce and industry, finance, properties and utilities.
Combined Strategy
You can use the Combined Strategy to help you diversify globally by investing
in both domestic and international Select Ten Portfolios. For examine, the
numbers listed below illustrate a 70% investment n the Select Ten DJIa
Strategy Stocks, and an investment of 10% each in the United Kingdom, Hong
Kong and Japan Select Ten Strategy Stocks.
Total Return Value of $10,000
1978 11.90% $11,190
1979 17.26% $13,121
1980 29.51% $16,994
1981 6.06% $18,023
1982 18.07% $21,280
1983 33.48% $28,405
1984 12.53 $31,964
1985 37.96% $44,397
1986 41.32% $62,318
1987 19.36% $74,383
1988 25.90% $93,678
1989 25.22% $117,266
1990 -8.12 $107,744
1991 30.56% $140,671
1992 8.53% $152,670
1993 35.46% $206,807
1994 2.92% $212,846
1995 27.73% $271,868
1/1-3/31/96 6.58 $289,757
Total Return* 2797.57%
Average Annualized Return** 20.26%
These figures represent past performance of the Strategy. Each strategy would
have underperformed in certain years and there is no guarantee of future
results. Because the Fund has sales charges and is not fully invested at all
times, actual results may be more or less than its related Strategy. Both
dividend income and stock prices may fluctuate.
* Total return represents price changes plus dividends received (reinvested
at the end of each year in summary figures). These figures do not reflect
commissions or taxes.
** Average annualized return represents annualized total return for the entire
period.
A free prospectus containing more complete information on any of these
Portfolios, including all charges and expenses and the special considerations
associated with the risks of international investing, such as foreign currency
risk, is also available. Read it carefully before investing.
</TABLE>
