Defined Asset Funds[SM]
Select-Ten Philip Morris
Select-Ten Texaco
Select-Ten JPMorgan
Select-Ten Exxon
Select-Ten AT&T
Select-Ten Chevron
Select-Ten General Motors
Select-Ten Du Pont
Select-Ten International Paper
Select-Ten Minnesota Mining
Select Ten Portfolio 1997 Series J
A Simple Investment Strategy For Total Return
Merrill Lynch
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 and
their stocks are widely held by individual and institutional investors.
Allied Signal
J.P. Morgan & Co.
3M
Du Pont
Eastman Kodak
Goodyear
Bethlehem Steel
IBM
General Electric
General Motors
McDonald's
Chevron
Caterpillar
Boeing
Merck
Procter & Gamble
American Express
International Paper
Philip Morris
United Technologies
Sears Roebuck & Co.
Exxon
Texaco
Coca-Cola
Union Carbide
Walt Disney
AT&T
Westinghouse Electric
Woolworth
Aluminum Co. of America
Selecting Investments For Your Portfolio Can Be Complicated. Sometimes,
Simple Can Be Better.
The Select Ten Strategy
The Select Ten Portfolio seeks total return by holding the ten highest
dividend-yielding stocks of the Dow Jones Industrial Average(*) (the "Strategy
Stocks") for about one year.
- ------------
(*)Dow Jones & Company, Inc., owner of the name "Dow Jones Industrial
Average," is unaffiliated with, and did not participate in the creation of the
Portfolio or the selection of its stocks, and has neither reviewed nor
approved any information in this brochure or the prospectus relating to the
Portfolio. The "S&P 500" is a trademark of Standard & Poor's Corporation.
It's Simple
The Portfolio offers a simple way to seek potential values in the equity
market by investing in leading companies whose prices may be depressed.
The Portfolio consists of approximately equal values of the ten stocks in the
DJIA having the highest dividend yield at the time of the offering, and will
hold them for about one year. 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. Although this is a one year investment, we recommend you
stay with the Strategy for a minimum of three to five years.
You can get started with the Select Ten Portfolio with as little as about $250.
It's Convenient
You have a convenient way to invest in a fixed Portfolio of widely held stocks
with just one purchase. You'll also enjoy the advantages of:
o Quarterly Dividends. You will receive four consolidated checks per year,
not 40 for the 10 stocks.
o Reinvestment. You may choose to reinvest your dividends at a reduced sales
charge to compound your income.
o No sell decisions. You are buying and holding for about a year, a
Portfolio of established companies with relatively high dividend yields.
Select Ten Portfolio 1997 Series J(*)
Current
Name of Issuer Ticker Symbol Dividend Yield+
1. Philip Morris Companies, Inc. MO 4.26%
2. J.P. Morgan & Company, Inc. JPM 3.61%
3. Texaco, Inc. TX 3.46%
4. Chevron Corporation CHV 3.32%
5. Exxon Corporation XON 3.22%
6. American Telephone &
Telegraph Company++ T 3.03%
7. General Motors Corporation GM 2.87%
8. International Paper Company IP 2.48%
9. Du Pont (E.I.)
De Nemours & Company DD 2.42%
10. Minnesota Mining &
Manufacturing Company MMM 2.37%
* Initial date of deposit -- January 2, 1997
+ Current Dividend Yield for each security was calculated by annualizing the
last quarterly or semi-annual ordinary dividend distributed on that
security and dividing the result by that security's market value as of the
close of trading on December 31, 1996. There can be no assurance that
future dividends, if any, will be maintained at the indicated rates.
++ As of the close on December 31, 1996, AT&T will spinoff NCR Corp., whose
common stock will then be purchased for the Portfolio on subsequent
deposits of securities into the Portfolio.
The Strategy may not necessarily reflect the research opinions or any buy or
sell recommendations of any of the Sponsors.
Prior Select Ten Portfolio Performance
The chart below shows average annual total returns for each of the three
established Series, which assume an annual "rollover" into the next Portfolio.
We've also included returns for the most recently completed Portfolio of each
Series:
Series From Inception
through 12/31/96 Most Recently Completed Portfolio
- -------------------------------- -------------------------------------
Inception Return Period Return
A Series 1/3/92 15.62% 1/9/95-2/23/96 34.84%
B Series 5/17/91 16.01% 5/10/95-6/28/96 25.39%
C Series 9/1/92 18.92% 9/12/95-10/31/96 29.01%
Past performance is no guarantee of future results. Average annual total
return represents price changes plus dividends reinvested, divided by the
initial public offering price, and reflects maximum sales charges and expenses.
Time in the Market
<TABLE>
<CAPTION>
Average Annual Total Returns for periods ending 12/31/96: Strategy
Stocks, DJIA and S&P 500 (dividends reinvested at year-end).
3 year 5 year 10 year 15 year 20 year 25 year 26 year
<S> <C> <C> <C> <C> <C> <C> <C>
Strategy 21.96% 20.05% 17.62% 20.48% 17.41% 18.08% 17.44%
Stocks
DJIA* 22.57% 18.20% 16.49% 18.27% 14.27% 12.76% 12.65%
S&P 500* 19.44% 15.07% 15.20% 16.57% 14.33% 12.35% 12.42%
</TABLE>
[A mountain chart, captioned "Hypothetical Growth of $10,000 invested in 1971
through 12/31/96", compares the performances of the Strategy Stocks (blue),
Dow Jones Industrial Average (mauve), and S&P 500 (green) beginning in 1971,
and increasing in five year increments, ending in 1996. The x axis reflects
the three dollar amounts that correspond to the three different strategies;
$210,051 equals the S&P 500; $221,143 equals the Dow Jones Industrial Average;
$653,792 equals the Strategy Stocks; the y axis relects years starting in 1971
and ending in 1996.]
Annual Total Returns
Periods ending December 31
<TABLE>
<CAPTION>
Strategy Strategy S&P
Year Stocks DJIA S&P 500 Year Stocks DJIA 500
<S> <C> <C> <C> <C> <C> <C> <C>
1971 2.47% 9.79% 14.31% 1984 7.34% 1.06% 5.95%
1972 23.26% 18.21% 18.98% 1985 28.63% 32.78% 31.43%
1973 -1.02% -13.12% -14.66% 1986 34.57% 26.91% 18.37%
1974 -0.31% -23.14% -26.47% 1987 6.97% 6.02% 5.67%
1975 57.02% 44.40% 36.92% 1988 21.50% 15.95% 16.58%
1976 34.81% 22.72% 23.53% 1989 27.30% 31.71% 31.11%
1977 -0.83% -12.71% -7.19% 1990 -7.94% -0.57% -3.20%
1978 0.16% 2.69% 6.39% 1991 33.37% 23.93% 30.51%
1979 12.35% 10.52% 18.02% 1992 8.32% 7.34% 7.67%
1980 26.37% 21.41% 31.50% 1993 26.92% 16.72% 9.97%
1981 7.47% -3.40% -4.83% 1994 3.89% 4.95% 1.30%
1982 25.46% 25.79% 20.26% 1995 36.48% 36.48% 37.10%
1983 38.46% 25.68% 22.27% 1996 27.94% 28.57% 22.69%
</TABLE>
The charts above compare hypothetical performance of the Select Ten Strategy
Stocks with the actual performance of the Dow Jones Industrial Average and the
S&P 500 Composite Stock Price Index. The results shown assume that all
dividends during each year are reinvested at the end of that year, and do not
reflect sales charges, commissions, expenses or taxes. If Portfolio sales
charges and expenses were deducted, the Strategy Stocks would have
underperformed the DJIA in 12 of the last 26 years and the S&P 500 index in 11
out of the last 26 years, and there can be no assurance that any Portfolio
will outperform the DJIA. Portfolio performance will also differ from
Strategy Stocks because Portfolios are established and liquidated at different
times during the year, they normally purchase and sell stocks at prices
different from the closing prices used in determining Portfolio unit price,
Portfolios are not fully invested at all times and stocks may not be weighted
equally. For a more complete discussion of Strategy Stock and Portfolio
performance, please speak to your financial professional.
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 is designed for investors able and willing to assume the
risks generally associated with equity investments. It may not be appropriate
for investors seeking preservation of capital or high current income.
o There can be no assurance that the Portfolio or Strategy will meet its
objective.
o The value of your investment will fluctuate with the prices of the
underlying stocks. There is no guarantee that dividend rates will be
maintained or that stock prices will not decrease.
o These stocks may have higher yields because they or their industries are
experiencing financial difficulties or are out of favor. There can be no
assurance the market factors that caused these relatively low prices and high
yields will change.
Defining Your Cost
Low Initial Sales Charge/Reduced Charge for Rollovers
As illustrated in the following chart, 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 Offering
Amount Purchased 1,000 units Price
- -----------------------------------------------------------------------
Maximum Initial Sales Charge $10.00 1.00%
Deferred Sales Charge $17.50 1.75%
==================================
Your Sales Charge $27.50 2.75%
- -----------------------------------------------------------------------
Should you reinvest 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, in the secondary market, a charge to reflect
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.
Deferred Sales Total Sales Charge
Charge per as a % of the
Amount Purchased 1,000 units Public Offering 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 to $999,999 $17.50 1.75%
$1,000,000 or more $10.00 1.00%
- -----------------------------------------------------------------------
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 (net of the
deferred sales charge and the charge for organizational expenses).
Accordingly, you should not increase your basis in your units by the deferred
sales charge and the charge for organizational expenses.
Don't Delay
Call your financial professional for a free prospectus containing more
complete information, including all charges and expenses. Read it carefully
before you invest.
Units of the next Series are not yet available. Information herein is subject
to amendment. A registration statement relating to these securities has been
filed with the Securities and Exchange Commission. These securities 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 solicitations of an offer to buy nor shall there be any sale of
these securities in any state in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of such state.
Other Select Series
Hong Kong Portfolio
(Hang Seng Index)
Japan Portfolio
(Nikkei Index)
United Kingdom Portfolio
(Financial Times Index)
Select Growth Portfolio
Intrinsic Value Portfolio
1997 Year-Ahead
International Portfolio
1997 Year-Ahead
Domestic Portfolio
Equity Income Funds
Concept Series
Premier American Portfolio
Health Care Trust II
Natural Gas Trust 2
Real Estate Income Fund 2
TeleoGlobal Trust 2
Equity Income Funds
Utility Series
15th Utility Common Stock Series
Equity Income Funds
Index Series
S&P 500 Index Trust 2
S&P MidCap Index Trust
Other Defined Asset Funds
Municipal Income Funds
Corporate Income Funds
Government Securities
Income Funds
International Bond Funds
