SELECT GROWTH
PORTFOLIO
1996 SERIES B
A Disciplined Approach
to Growth Stock Investing
1 CompUSA, Inc.
(CPU) Is the United States' largest operator of deep-discount
superstores that sells microcomputers, related software and
accessories. Products are sold to individuals, commercial
businesses, and government agencies. Its subsidiary operates a mail
order computer business.
2 Freeport-McMoRan Copper & Gold, Inc.
(FCX) Explores for mines and mills, copper, gold and silver. Also
smelts and refines copper concentrates.
3 Healthsouth Corporation
(HRC) Is the largest provider of out-patient and rehabilitative
services for disabled patients in the United States. Has over 700
patient care locations in the United States and Canada with programs
for stroke, head trauma, orthopedic and neuromuscular disease, sports
medicine, physical therapy, occupational therapy, respiratory therapy
and speech pathology.
4 Northern Telecom, Ltd.
(NT) Is the leading international manufacturer and supplier of
telecommunications equipment to telephone companies, cable television
companies, corporations, governments and universities. Its product
line includes central switching systems, private branch exchanges,
multimedia communications solutions and cellular mobile
telecommunications switches.
5 Raychem Corporation
(RYC) Develops, manufactures and markets through its global sales
force a variety of high performance products used in the aerospace,
automotive, cable television, communications, industrial and
electronics industries.
6 Safeway, Inc.
(SWY) Operates over 1,000 supermarkets in the United States and
Canada.
7 Sofamor Danek Group, Inc.
(SDG) Manufactures spinal implant devises used in the surgical
treatment of spinal degenerative disorders, deformities and traumas.
Its products are globally marketed to spinal surgeons and over 3,000
hospitals.
8 Sun Microsystems, Inc.
(SUNW) Is a supplier of high performance workstations, servers and
networking software. Its products are primarily designed for
engineering, scientific, commercial and technical markets in
approximately 130 countries.
9 Tidewater, Inc.
(TDW) Services and supports the offshore oil and gas industry. Its
594 vessel fleet provides the oil industry with transport, towing,
barging services, ferry supplies and supports pipe laying and drilling
activities. It sells, leases and rents compressors used to raise the
pressure of natural gas to transport it to processing plants or
pipelines. Builds and installs natural gas processing plants and
compression stations.
10 WorldCom, Inc.
(WCOM) Is the fourth largest long-distance carrier in the United
States. Its digital fiber optic network serves the entire U.S. with
access to 230 countries providing voice, data, and video products and
services for business customers as well as other carriers and the
residential market.
Defined Strategy for Growth
Defined Asset Funds can help you to simplify complex issues regarding growth
stock investing with the Select Growth Portfolio. This Portfolio offers a
defined selection process and a disciplined investment approach.
Help From a Professional Consultant
Defined Asset Funds retained O'Shaughnessy Capital Management, Inc., a
registered investment adviser, as Portfolio Consultant to apply its
quantitative selection model to identify common stocks that it expected to show
superior growth in earnings per share over the next year. Using the model,
the Consultant screened a universe of 1600 stocks and identified growth stocks
that are believed to be reasonably priced and to have attractive growth
potential. Defined Asset Funds reviewed the identified stocks for liquidity,
market capitalization, and other factors and then selected the ten stocks for
the portfolio.
Defined Advantages
May reduce your risk. As with any portfolio of stocks, some stocks may not do
as well as expected or may miss their anticipated return. But investment in
ten professionally selected stocks, like those in the Select Growth Portfolio
1996 Series B, may reduce the risk of holding only one or two of these stocks.
May save you time. You don't need to buy each stock individually. This
Portfolio uses a disciplined buy and hold Strategy, enabling you to wait out
what may be short-term price fluctuations. When the current Portfolio is
liquidated after a year, Defined Asset Funds expects to offer a new portfolio
selected by this process, which can be purchased at a reduced sales charge.
May save you money. Although Portfolio units are subject to a sales charge,
because of the institutional commissions at which the Portfolio buys and sells
stocks, the combination may be less expensive for many investors than buying
and selling the stocks outright.
About the Portfolio
The Defined Asset Funds Select Growth Portfolio consists of ten growth stocks.
The Portfolio may be subject to higher than average price volatility and
therefore should be considered speculative. The Portfolio may only be
appropriate for investors willing and able to assume this risk and who are not
seeking either preservation of capital or current dividend income. It is
unlikely that the Portfolio will change over its one-year life, even if the
stock market decreases in value or there are adverse developments affecting
the stocks held. The value of this investment may fluctuate with changes in
the financial condition of the issuers of the stocks held, the value of common
stocks in general, and the impact of the Portfolio's purchase and sale of
stocks. The projected earnings growth rate for the stocks in the Portfolio is
substantially above the average for common stocks in general. Stocks with
higher growth potential can involve greater risk of loss.
Select Now
Call your financial professional to see how the Select Growth Portfolio can
fit into your financial plan. A free prospectus containing more information,
including all charges and expenses, is available. Read the prospectus
carefully before your invest.
Merrill Lynch
