Defined Asset Funds
Select Ten
Portfolio
Sometimes, simple strategies
can be the most effective...
Merrill Lynch
like the strategy applied in our Select Ten Portfolio . . .
Maybe you've heard of "The Dow Ten" or even "The Dogs of the Dow." However you
refer to it, this contrarian strategy of investing each year in the ten
highest dividend-yielding stocks of the Dow Jones Industrial Average(1) (DJIA)
looks for equity value by investing in established companies whose prices may
be depressed. After all, to a contrarian investor, bad news can be good news,
and unfavorable developments may create special opportunities.
_______________
(1) 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 the prospectus relating to
the Portfolio. "S&P 500" is a trademark of Standard & Poor's
Corporation.
The Select Ten Portfolio
The Select Ten Portfolio employs a simple strategy of investing in the ten
highest dividend-yielding stocks in the DJIA, and holding them for about one
year. After one year, you may choose to reinvest your proceeds into the next
Portfolio of the then-current Strategy Stocks, if available, or you can redeem
your investment. Although this is a one year investment, we recommend you stay
with the Strategy for a minimum of three to five years.
Past Performance of Prior Select Ten Portfolios
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 Most Recently
through 3/31/97 Completed Portfolio
- --------------------- -------------------
Inception Return Period Return
A Series 1/3/92 15.12% 1/18/96-2/28/97 31.27%
B Series 5/17/91 16.24% 5/10/95-6/28/96 25.75%
C Series 9/1/92 18.87% 9/12/95-10/31/96 30.30%
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. Returns for Series Since Inception and Most Recently Completed
Portfolio will differ because Series Since Inception figures reflect a reduced
sales charge for consecutive rollovers. Also, the returns will differ because
the performance period of the Most Recently Completed Portfolio is different
from that of the Series Since Inception.
A Time Tested Track Record
We analyzed the Strategy of investing in the ten highest dividend-yielding
stocks over various period to see how it compared to the DJIA and the S&P
500.* The chart directly below illustrates past performance of the Strategy
Stocks, but not any actual Select Ten Portfolio. While there is no guarantee
of future results of any Portfolio, as you can see the results are compelling.
Defining Your Risks
Select Ten Portfolios are designed for investors able and willing to assume
the risks generally associated with equity investments, and may not be
appropriate for those seeking preservation of capital or high current income.
The value of the investment will fluctuate with the prices of the underlying
stocks. There can be no assurance that dividend rates will be maintained or
that the stock prices will not decrease.
Time in the Market
Average Annual Total Returns for periods ending 12/11/96, Strategy Stocks,
DJIA and S&P 500 (dividends reinvested at year-end).
3 year 5 year 10 year 15 year 20 year 25 year
Strategy Stocks 21.96% 20.05% 17.62% 20.48% 17.41% 18.08%
DJIA* 22.57% 18.20% 16.49% 18.27% 14.27% 12.76%
S&P 500* 19.44% 15.07% 15.20% 16.37% 14.33% 12.35%
[A mountain chart, captioned "Hypothetical Growth of $10,000 invested in 1972
through 3/31/97", compares the cumulative annual performance from 1972 through
1996 between the Strategy Stocks (blue), the DJIA (pink), and the S&P 500
(green). A box in the upper left quadrant indicates the components of the
chart. The y axis reflects years in 1 year increments. The initial value of
each is $10,000; the ending values are as follows: $659,215 (Strategy Stocks);
$206,721 (DJIA); $188,717 (S&P 500).]
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, commission expenses or taxes. If Portfolio sales
charges and expenses were deducted, the Strategy Stocks would have
underperformed the DJIA in 11 of the last 25 years and the S&P 500 Index in 10
out of the last 25 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 are dated 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.
Act Now
You can get started with the Select Ten Strategy right now with as little as
$250. Simply return the attached coupon to receive a free copy of our
brochure. Ask your financial professional for a free prospectus containing
more complete information on the Select Ten Portfolio, including all sales
charges and expenses. Be sure to read the prospectus carefully before you
invest.
YES! I would like more information on the Select Ten DJIA Portfolio from
Defined Asset Funds.
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Home Phone
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Business Phone
15360NI-4/97
Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
