Defined Asset Funds[SM]
Select Ten Portfolio
International
1996 United Kingdom Portfolio
Series C
Many international equity markets, such as the United Kingdom's, offer
attractive growth potential. Defined Asset Funds[SM] Select Ten Portfolio
International Series uses a simple investment strategy to help you take
advantage of potential opportunities in this country.
A Defined Strategy
The United Kingdom Portfolio seeks total return by holding for about one year,
the ten stocks in the Financial Times Industrial Ordinary Share (FT) Index(1)
having the highest dividend yield at the time of the offering (the "Strategy
Stocks"). 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 reduced sales charge, or you can take the cash.
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(1) This name is the property of its publisher. That firm is not
affiliated with, nor has participated in any way in the creation of the
Portfolio or in the selection of its stocks, and has neither reviewed
nor approved any information in this insert or the prospectus.
The Select Ten Portfolio selection process is straightforward, objective and
mathematical--it eliminates subjective influences. What's more, when
investors follow the Strategy, they're investing in some of the largest
companies in the United Kingdom.
Defining Your Risks
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 Strategy will meet its
objective.
o Total returns on United Kingdom 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 Strategy Stocks may have higher yields because they or their industries
are experiencing financial difficulty or are out of favor.
Don't Delay
You can get started with the Select Ten Portfolio with as little as about $250.
Call your financial professional for a free prospectus containing more complete
information, including all charges and expenses, and the special risks
associated with international investing including such as currency risk. Read
it carefully before you invest.
Merrill Lynch
Financial Times Index
The Financial Times Industrial Ordinary Shares 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 their industries and their stocks are widely held by individual and
institutional investors. The FT Index is an unweighted average of the share
prices of the companies.
United Kingdom Portfolio
January 1, 1976 - June 30, 1996
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FT 30 Index Strategy Stocks
Year Total Return Total Return
1976 -15.58% -15.89%
1977 61.92 87.27
1978 9.92 17.73
1979 3.59 4.76
1980 31.77 30.15
1981 -5.30 -6.26
1982 0.42 44.03
1983 21.94 42.06
1984 2.15 5.50
1985 54.74 78.64
1986 24.36 32.88
1987 38.99 48.10
1988 6.74 11.38
1989 22.80 28.71
1990 10.29 9.26
1991 14.65 16.57
1992 -2.33 4.27
1993 18.40 37.69
1994 1.89 5.46
1995 17.63 10.83
1/1-6/30/96 3.39 -0.07
Average 14.28% 21.60%
About the Chart
It is important to note that the actual performance of the Portfolio will
differ from that of the Strategy Stocks because the Portfolio has sales
charges and pays brokerage commissions and expenses. After deducting
Portfolio sales charges and expenses, the Strategy Stocks would have
outperformed the Index in 13 of the 20 years. Strategy Stock figures are
generally annual figures based on the closing sale prices on December 31,
while the Portfolios are established and liquidated at different times during
the year. Also, performance varies because Portfolios normally purchase and
sell stocks at prices and a currency exchange rate different from the closing
prices and currency exchange rate used in determining the Portfolio's unit
price, and the Portfolio is not fully invested at all times and stocks may not
be weighted equally.
Time-Tested Track Record
We analyzed the Strategy of investing in the ten highest dividend yielding
stocks in the FT Index, or "Strategy Stocks," over a 20-year period to see how
it had performed. The chart below illustrates past performance of the FT
Index and Strategy Stocks (but not any Portfolio). Although this is no
guarantee of future results of any Portfolio, as you can see the results are
compelling.
[A mountain chart, captioned "Suppose you had invested $10,000 in the Strategy
in 1976", compares the cumulative annual performance from 1976 through 6/30/95
of the Strategy Stocks (mauve) with the FT30 Index (gray). A box in the upper
left quadrant indicates the components of the chart. The x axis reflects
dollar amounts in $100,000 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: $550,692. Ending 6/30/96 (Strategy); $154,332 Ending
6/30/96 (Index).]
The performance of the Strategy is a hypothetical example of how the United
Kingdom 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. Changes in the exchange rate of the pound sterling relative
to the US dollar affected these figures significantly in certain years. These
changes ranged from -25% in 1981 and 1984 to +21% in 1987, and averaged
- -2.7% over the last 20 years.
Select Ten Portfolio - International 1996 United Kingdom Portfolio - Series C*
Current
Name of Issuer Dividend Yield+
1. Hanson PLC 7.29%
2. British Gas PLC 7.20
3. BTR PLC 5.19
4. Peninsular & Oriental Steam Navigation Company 5.14
5. British Telecommunications PLC 4.96
6. Allied Domecq PLC 4.51
7. Royal & Sun Alliance Insurance Group PLC 4.46
8. BICC PLC 3.88
9. National Westminster Bank PLC 3.85
10. Imperial Chemical 3.71
* Initial date of deposit--September 16, 1996
+ Current dividend yield for each security was calculated by adding the most
recent interim and final dividends declared on that security and dividing the
result by that security's market value as of the close of trading on September
16, 1996. There can be no assurance that future dividends, if any, will be
maintained at the indicated rates.
The Portfolio does not necessarily reflect the research opinions or any buy or
sell recommendation of any of the Sponsors.
Prior Select Ten Portfolio Rollover Performance
The following table shows total returns (price changes plus dividends
reinvested, divided by the maximum initial public offering price, converted
into U.S. dollars) and reflects all sales charges and expenses, but not taxes.
These figures represent past performance and are no guarantee of future
results. The first three lines show the results that could have been obtained
by investing in the first fund of each established Series and rolling over each
year. The last three lines show the return of the last completed fund of each
Series.
Average Annual
Series Term Total Return Total Return
Series B 6/21/93-6/30/96 6.75% 2.19%
Series C 9/28/93-/6/30/96 1.94% 0.70%
Series A 1/5/94-6/30/96 -2.44% -0.99%
Performance of the last completed fund of each established series:
1995 Series B 5/10/95-6/28/96 -11.31% -10.03%
1995 Series A 1/6/95-2/23/96 6.53% 5.57%
1994 Series C 9/6/94-10/13/95 -2.42% -2.21%
