Defined Asset Funds
Select Ten Portfolio
International
1996
Japan
Portfolio
Series B
Merrill Lynch
SELECT TEN PORTFOLIO
INTERNATIONAL SERIES
JAPAN
The Nikkei 225 Index
The Nikkei 225 Index consists of 225 Japanese companies listed in the first
section of the Tokyo Stock Exchange. First published in 1950, the Nikkei is
well known both in Japan and worldwide.
The Nikkei 225 Index is published by the Nihon Keizai Shimbun (Japan Economic
Journal).
The Nikkei 225 Index is a price-weighted index. This means that the movement
of each stock, in yen or dollars, is equally weighted regardless of its market
capitalization.
Today's global marketplace offers many opportunities. Defined Assets Funds'
Select Ten Portfolio - International Series uses a simple investment strategy
to help you take advantage of opportunities in selected countries.
Global Opportunities
Many international equity markets, such as Japan's, offer attractive growth
potential, which can help investors diversify their portfolios globally.
Japan's economic growth is reflected in the performance of its leading stock
market indicator, the Nikkei 225 Index.
A Simple Strategy
The Japan Portfolio seeks total return by investing in approximately equal
values of the ten stocks in the Nikkei 225 Index* having the highest
dividend yield at the time of the offering (Strategy Stocks). These
companies are among the most highly capitalized in Japan.
___________
*The publisher of the Nikkei 225 Index has not participated in any
way in the creation of the Portfolio or in the selection of its stocks nor
approved any information included in this brochure.
After one year, the Portfolio will liquidate. You may choose to reinvest your
proceeds into the next portfolio of the then-current Strategy Stocks, if
available, at a significantly reduced sales charge, or you can take the cash.
Offers U.S. Investors Some Big Advantages
o Semi-annual dividends. This means investors receive two consolidated checks
per year, not 20 for the 10 stocks, and payments are in U.S. dollars.
o Low costs. The minimum purchase is about $250. There is a total sales
charge of 2 3/4%.
o Reinvestment. You may choose to reinvest your dividends at a reduced sales
charge to compound your income.
o Year-end rollover option. The Japan Portfolio matures in about one year,
at which time you'll have an opportunity to reinvest your Select Ten
Portfolio into the next Portfolio, if available. Although each Select Ten
Portfolio is a one-year fund, we recommend you stay with the Strategy for a
minimum of three- to five-years.
Defining Your Risks
At Defined Asset Funds, our goal is to give investors the information they
need to make informed decisions. The following are important facts to keep in
mind when considering this investment for your portfolio. Please read them
carefully. Your financial professional will be happy to answer any questions
you may have.
o The Portfolio should not be considered a complete investment program, and
may be considered speculative.
o The Portfolio may not be appropriate for investors seeking either
preservation of capital or high current income, nor would it be suitable for
investors unable or unwilling to assume the increased risks of higher price
volatility and currency fluctuations associated with investments in
international equities.
o There can be no assurance that the Portfolio or the Strategy will meet its
objectives.
o Total returns on Japanese stocks fluctuate widely, and the value of your
investment will change with the prices of the underlying stocks and
currency exchange rates. In addition, there is no guarantee that dividend
rates will be maintained or that stock prices or currency exchange rates
will not decline.
o The Portfolio's exposure to the Japanese yen is not hedged.
o The Strategy Stocks may have higher yields because they or their industries
are experiencing financial difficulty or are out of favor.
Time-Tested Track Record
Since stocks in the Portfolio were chosen solely by applying the Strategy, we
analyzed the Strategy since 1976 to see how it had performed. The chart below
illustrates past performance of the Nikkei 225 index and the Strategy Stocks.
Although this is no guarantee of future results, as you can see the results
are compelling.
chart/graph description:
[A mountain chart, captioned "Suppose you had invested $10,000 in the Strategy
in 1976", compares the cumulative annual performace from 1976 through 3/31/96
of the Strategy Stocks (burnt orange) with the Nikkei Index (green). A box
in the upper left quadrant indicates the components 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; next to the right margin the ending values
are stated as follows: $546,571 Ending 3/31/96 (Strategy); $179,007 Ending
3/31/96 (Index).]
There can be no assurance that the Portfolio or Strategy will meet its
objective. The performance of the Strategy is a hypothetical example of how
the Japan 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. The back cover discusses the significant effects that the
exchange rate of Japanese yen relative to the U.S. dollar can have on
Portfolio performance.
It's important to note that actual performance of the Portfolio will differ
from the Strategy Stocks because the Portfolio has sales charges and pays
brokerage commissions and expenses. Strategy Stock figures are generally
annual figures based on December 31 closing sale prices, while the Portfolios
are established and liquidated at different times during the year. The
Portfolio will normally purchase and sell stocks at prices and currency
exchange rates different from the closing price and currency exchange rate
used in determining the Portfolio's unit price. In addition, the Portfolio is
not fully invested at all times and all stocks may not be weighted equally.
Select Ten Portfolio - International Series B - 1996 Japan*
Current
Dividend
Name of Issuer Yield+
______________ ________
1. Tonen Corporation 2.55%
2. Kansai Electric Power 1.96%
3. Chubu Electric Power Company, Inc. 1.92%
4. Tokyo Electric Power 1.76%
5. Fuji Electric Co., Ltd. 1.35%
6. Konica Corporation 1.27%
7. Toshiba Corporation 1.27%
8. Tokyo Gas Co., Ltd. 1.26%
9. Mitsubishi Electric Corporation 1.25%
10. Toyobo, Ltd. 1.23%
___________
* Initial date of deposit - May 20, 1996.
+ Current Dividend Yield for each security was calculated
by adding the most recent interim and final dividends
declared on the security and dividing the result by its
market value as of the close of trading on May 17, 1996.
The Portfolio may not necessarily reflect the research
opinion or any buy or sell recommendation of any of the
Sponsors.
Historical Performance of Strategy Stocks
If the Strategy had been followed in each of the last 20 years, investors
would have generally achieved a higher total return than by investing in the
entire Nikkei 225 Index.
The table below illustrates how the Strategy would have performed on a
theoretical basis from January 1, 1976 through March 31, 1996.* The returns
shown represent past performance of the Nikkei 225 Index and Strategy
Stocks, and are no guarantee of future results. The figures do not reflect
the Portfolio's sales charges, commissions, expenses, or reinvestment of
dividends.
Strategy Illustration*
January 1, 1976 - March 31, 1996
Nikkei 225 Index Strategy Stocks
Year Total Return Total Return
---- ---------------- ---------------
1976 21.93% 10.57%
1977 21.55 54.28
1978 55.32 72.10
1979 -10.00 -.89
1980 29.47 38.93
1981 2.20 18.44
1982 -0.77 -2.54
1983 27.08 31.04
1984 8.92 3.11
1985 44.19 53.01
1986 83.78 77.83
1987 50.71 93.67
1988 36.57 63.04
1989 12.80 22.96
1990 -34.79 -40.99
1991 5.56 6.90
1992 -25.76 -16.17
1993 15.94 21.52
1994 28.30 27.99
1995 -2.30 -4.98
1/1-3/31/96 4.05 5.00
Average** 15.31% 21.85%
Changes in the exchange rates of the Japanese yen relative to the U.S.
dollar affected these figures significantly. These changes ranged from
- -23% in 1979 to +23% in 1987 and averaged +4.61% annually over the last 20
years. There can be no assurance that such appreciation will continue
during the life of the Portfolio or successive rollover series.
* After Portfolio sales charges and expenses, a Portfolio would have
outperformed the index in 12 of the 20 years.
** Average annual total returns represent the annual rate of price
appreciation, plus dividends reinvested at the end of each year.
Defining Your Cost
Low Initial Sales Charge/
Reduced Charge for Rollovers
As illustrated in the chart below, first-time investors pay a 1% maximum sales
charge when they buy. 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.
As a % of
Amount per Public
Amount Purchased 1,000 Units Offering Price
- ---------------- ----------- --------------
Maximum Initial Sales Charge $10.00 1.00%
Deferred Sales Charge $17.50 1.75%
------ ----
Your Sales Charge $27.50 2.75%
====== ====
After a year, should you reinvest proceeds of your investment into a new
portfolio, you will not be subject to an additional 1% initial sales charge,
just the $17.50 deferred fee. If you sell your investment before maturity,
the remaining deferred sales charge and, in the secondary market, a charge to
reflect the estimated costs of liquidating securities to meet cash
redemptions, will be deducted.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of
your investment dollars to work for you.
Total Sales Charge
Deferred Sales as a % of the
Charge per Public Offering
Amount Purchased 1,000 units Price
- ---------------- --------------- ------------------
Less than $50,000 $17.50 2.75%
$50,000 to $99,999 $17.50 2.50%
$100,000 to $249,999 $17.50 2.00%
$250,000 or more $17.50 1.75%
Tax Reporting
The proceeds received when you sell this investment will reflect the
deduction of the deferred sales charge and the charge for organizational
expenses. In addition, the annual statement and the relevant tax reporting
forms you receive at year-end will reflect the actual amount paid to you
(not including the deferred sales charge and the charge for organizational
expenses). Accordingly, you should not increase your tax basis in your
units by the deferred sales charge and the charge for organizational
expenses.
Don't Delay.
A free prospectus containing more complete information, including all charges
and expenses, and the special considerations associated with the risks of
international investing, including currency risk, is available. Read it
carefully before you invest.
Additional Japan Portfolios containing the then-highest-yielding stocks may be
created in the future. Information contained herein is subject to completion
or amendment. A registration statement relating to the securities of the next
Portfolio in this Select Ten Portfolio--International Series has been filed
with the Securities and Exchange Commission. The securities of the Portfolio
may not be sold nor may offers to buy be accepted prior to the time that
registration becomes effective. This brochure may not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of
these 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.
Other Select Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio
(Financial Times Index)
Hong Kong Portfolio
(Hang Seng Index)
Select Growth Portfolio
Equity Income Funds
Concept Series
Premier American Portfolio
Health Care Trust II
Natural Gas Trust 2
Real Estate Income Fund
Tele-Global Trust 2
Equity Income Funds
Utility Series
15th Utility Common Stock
Series
Equity Income Funds
Index Series
S&P 500 Index Trust
S&P MidCap Trust
Defined Bond Funds
Municipal Income Funds
Corporate Income Funds
Government Securities
Income Funds
International Bond Funds
Cover Photo:
Located off the shores of Miyajima Island, Japan, this famous Torii signifies
a gateway between the secular and spiritual worlds.
14949-5/96
