Defined Asset Funds
Select Ten Performance Summary
A Simple Strategy For Total Return
The Select Ten Portfolio seeks total return by holding the ten current highest
dividend-yielding stocks of the Dow Jones Industrial Average* (DJIA) for about
one year.
Purchasing a Portfolio of these stocks, instead of just one or two, is a way to
diversify your stock holdings. Investing in a number of established stocks
when their prices are depressed is a strategy designed to increase the
potential for total return.
How The Portfolio Works
The Portfolio consists of approximately equal values of the ten stocks in the
DJIA having the highest dividend yield shortly before the initial offering
date (the "Strategy Stocks") and holds them for about a year. The Portfolio
will remain relatively fixed during this time. After one year, the Portfolio
will liquidate. You may choose to roll your proceeds into the next Portfolio
of the then-current Strategy Stocks, if available, or you can take the cash.
Although this is a one year investment, we recommend you stay with the
Strategy for three to five years.
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 stock
prices will not decrease.
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 through 3/31/97 Most Recently Completed Portfolio
Inception Return Period Return
A Series 1/3/92 15.12% A Series 1/18/96-2/28/97 31.27%
B Series 5/17/91 16.24% B Series 5/10/95-6/28/96 25.75%
C Series 9/1/92 18.87% C Series 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.
The Dow Jones Industrial Average
The Dow Jones Industrial Average consists of 30 stocks chosen by the editors of
The Wall Street Journal as representative of the NY Stock Exchange and of
Americana industry. The companies are highly capitalized and their stocks are
widely held by individual and institutional investors.
Allied Signal Eastman Kodak Merck
Aluminum Co. of Exxon 3M
America
American Express General Electric J.P. Morgan & Co.
AT&T General Motors Philip Morris
Boeing Goodyear Procter & Gamble
Caterpillar Hewlett-Packard Sears Roebuck & Co.
Chevron IBM Travelers Group
Coca-Cola International Paper Union Carbide
Walt Disney Johnson & Johnson United Technologies
Du Pont McDonald's Wal-Mart
Time In The Market
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
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% 16.57% 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).]
<TABLE>
<CAPTION>
Annual Total Returns
Periods ending December 31
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Strategy Stocks 23.26% -1.02% -0.31% 57.02% 34.81% -0.83% 0.16% 12.35% 26.37% 7.47%
Dow Jones Industrial
Average 18.21% -13.12% -23.14% 44.40% 22.72% -12.71% 2.69% 10.52% 21.41% -3.40%
S&P 500 18.98% -14.66% -26.47% 36.92% 23.53% -7.19% 6.39% 18.02% 31.50% -4.83%
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
Strategy Stocks 25.46% 38.46% 7.34% 28.63% 34.57% 6.97% 21.50% 27.30% -7.94% 33.37%
Dow Jones Industrial
Average 25.79% 25.68% 1.06% 32.78% 26.91% 6.02% 15.95% 31.71% -0.57% 23.93
S&P 500 20.26% 22.27% 5.95% 31.43% 18.37% 5.67% 16.58% 31.11% -3.20% 30.51
1992 1993 1994 1995 1996 3/31/97
Strategy Stocks 8.32% 26.92% 3.89% 36.48% 27.94% 3.32%
Dow Jones Industrial
Average 7.34% 16.72% 4.95% 36.48% 28.57% 2.63%
S&P 500 7.67% 9.97% 1.30% 37.10% 22.69% 2.70%
</TABLE>
Notes:
The data above represent past performance and are no guarantee of future
results of Strategy Stocks or any Select Ten Portfolio. The figures compare
hypothetical performance of the Select Ten Strategy Stocks (not any actual
Portfolio) with the actual performance of the Dow Jones Industrial Average and
the S&P 500 Composite Stock Price Index. The figures do not reflect sales
charges, commissions, expenses or taxes. Portfolio performance will differ
from the Strategy Stocks because the Portfolio has sales charges and pays
brokerage commissions and other expenses, among other reasons. Annual total
returns represent price changes plus dividends distributed. Average annual
total returns and the chart show dividends reinvested at each year end.
If Portfolio sales charges and expenses were deducted, the Strategy Stocks
would have underperformed the Dow Jones Industrial Average in 11 out of the
last 25 years and the S&P 500 Index 10 out of the last years.
* 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.
For more complete information about the latest Equity Income Fund Select Ten
Portfolio, including sales charges and expenses, ask your financial
professional for a free prospectus. Read the prospectus carefully before you
invest.
