IRA Ideal!
DEFINED ASSET FUNDS
Global Diversification
- ----------------------
with the Select Ten Strategies
DJIA Portfolio
Hong Kong
Portfolio
United Kingdom
Portfolio
Japan Portfolio
Simple Investment Strategies
for Global Diversification
and Total Return.
Merrill Lynch
[LOGO]
In recent years, many American investors have begun investing globally to seek
diversification and additional investment opportunities outside the U.S.
After all, U.S. capital markets today represent less than 40% of total world
capitalization- compare that to over 65% in 1970.
Select Ten: Your Passport to Global Diversification
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The United Kingdom, Hong Kong, Japan and the United States...each of these
countries offer potential growth opportunities. The Select Ten Portfolios can
be a convenient and cost-effective way to help you diversify globally.
The Strategy
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Each Select Ten Portfolio consists of approximately equal values of the ten
stocks in its related index having the highest dividend yield shortly before
the initial offering date (the "Strategy"). The Portfolios hold these stocks
for about a year and remain relatively fixed during this time. After one
year, the investments will liquidate. You may choose to reinvest your
proceeds into the next Portfolios of the then-current Strategies, if
available, or you can take the cash.
Although these are one year investments, we recommend you stay with the
Strategies for three to five years.
The Portfolios
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The Portfolios currently available in the Select Ten Series feature these
indices:
o Dow Jones Industrial Average(*)
(DJIA Strategy)
o Financial Times Industrial Ordinary Share Index(FT)(*)
(United Kingdom Strategy)
o Hang Seng Index(*)
(Hong Kong Strategy)
o Nikkei 225 Index(*)
(Japan Strategy)
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(*)These names are the properties of their respective publishers. None of
these forms is affiliated with, nor participated in the creation of any Select
Ten Portfolio or the selection of these stocks and has neither reviewed nor
approved any information in this brochure or the prospectus relating to the
Portfolio.
Hypothetical Performance of the Strategies (not any Portfolio) January 1,
1977-September 30, 1997
Growth of $10,000 invested
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[A line graph, captioned "Hypothetical Performance of the Strategies (not any
Portfolio) January 1, 1977-September 30, 1997", growth of $10,000 invested"
compares the cumulative annual performance of each Strategy with its related
index from 1/1/77 through 9/30/97. The graph compares the DJIA Strategy (blue
line) with the DJIA (blue dotted line); the Hong Kong Strategy (green line)
with the Hang Seng Index (green dotted line); the United Kingdom Strategy
(purple line) with the FT Index (purple dotted line); and the Japan Strategy
(orange line) with the Nikkei 225 Index (orange dotted line). The horizontal
or (Y) axis compares the cumulative annual performance by YEAR from 1977
through 9/30/97. The vertical or (X) axis reflects DOLLAR AMOUNT value for each
index from 1977 ending 9/30/97. The initial value of each investment is
$10,000. Throughout the period from 1977 through September 30, 1997, increases
in each investment build towards the right vertical or (X) axis. At the end of
this period, the right vertical or (X) axis, reflects the ending value of the
DJIA Strategy ($212,979), the ending value of the DJIA ($179,709), the ending
value of the Hong Kong Strategy ($346,275), the ending value of the Hang Seng
Index ($472,026), the ending value of the United Kingdom Strategy ($550,089),
the ending value of the FT Index ($246,852), the ending value of the Japan
Strategy ($187,196) and the ending value of the Nikkei 225 Index
($110,116).]
Past performance of the Strategy is no guarantee of future results of any
Select Ten Portfolio. The DJIA, HK, UK, and Japan Strategies would have
underperformed their related indices in 11, 10, 7 and 8 of these years,
respectively. Changes in currency exchange rates significantly affected
returns on the UK and Japan Portfolios in certain years. There can be no
assurance that any Portfolio will outperform their related indices. Returns
shown represent price appreciation plus dividends distributed (reinvested at
each year end in chart and averages) and do not reflect commissions or taxes.
Only Strategy figures reflect the deduction of Portfolio sales charges and
expenses.
<TABLE>
<CAPTION>
DJIA Portfolio Hong Kong Portfolio
Year DJIA Strategy Year Hang Strategy
Total Total Seng Total
Return Return<F1> Index Return<F1>
Total
Return
<S> <C> <C> <C> <C> <C>
1977 -12.71% -3.80% 1977 N/A N/A
1978 2.69 -1.81 1978 23.51% 24.79%
1979 10.52 10.38 1979 78.33 80.03
1980 21.41 24.40 1980 65.83 39.15
1981 -3.40 5.50 1981 -11.07 -6.12
1982 25.79 23.49 1982 -47.79 -41.23
1983 25.68 36.49 1983 -0.89 -9.74
1984 1.06 5.37 1984 42.54 63.07
1985 32.78 26.66 1985 51.10 45.27
1986 26.91 32.60 1986 51.16 58.24
1987 6.02 5.00 1987 -6.73 0.78
1988 15.95 19.53 1988 20.60 31.79
1989 31.71 25.33 1989 10.19 7.16
1990 -0.57 -9.91 1990 11.99 3.86
1991 23.93 31.40 1991 48.25 46.26
1992 7.34 6.35 1992 33.63 36.69
1993 16.72 24.95 1993 121.11 104.74
1994 4.95 1.92 1994 -28.83 -33.71
1995 36.48 34.51 1995 26.95 13.86
1996 28.57 25.97 1996 37.73 25.57
9/30/97 24.80 22.11 1997 14.01 3.47
Average 14.94% 15.88% Average 21.55% 19.66%
<FN>
<F1>
Net of Portfolio sales charges (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses (generally 0.20-0.55% a year).
</FN>
</TABLE>
<TABLE>
<CAPTION>
United Kingdom Portfolio Japan Portfolio
Year FT Index Strategy Year Nikkei Strategy
Total Total 225 Index Total
Return Return<F1> Total Return<F1>
Return
<S> <C> <C> <C> <C> <C>
1977 61.92% 84.02% 1977 21.55% 50.97%
1978 9.92 15.48 1978 55.32 69.79
1979 3.59 2.51 1979 -10.00 -3.20
1980 31.77 27.90 1980 29.47 36.62
1981 -5.30 -8.52 1981 2.20 16.13
1982 0.42 41.78 1982 -0.77 -4.85
1983 21.94 39.81 1983 27.08 28.73
1984 2.15 3.25 1984 8.92 0.80
1985 54.74 76.39 1985 44.19 50.70
1986 24.36 30.63 1986 83.78 75.52
1987 38.99 45.85 1987 50.71 91.36
1988 6.74 9.13 1988 36.57 60.73
1989 22.80 26.46 1989 12.80 20.65
1990 10.29 7.01 1990 -34.79 -43.30
1991 14.65 14.32 1991 5.56 4.59
1992 -2.33 2.02 1992 -25.76 -18.48
1993 18.40 35.44 1993 15.94 19.21
1994 1.89 3.21 1994 28.30 25.68
1995 17.63 8.58 1995 -2.30 -7.29
1996 20.05 12.04 1996 -12.43 -19.08
9/30/97 16.29 7.13 9/30/97 -10.88 -27.79
Average 16.71% 21.30% Average 12.26% 15.16%
<FN>
<F1>
Net of Portfolio sales charges (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses (generally 0.20-0.55% a year).
</FN>
</TABLE>
Portfolio performance will differ from the Strategy because of sales charges
and expenses, 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.
Past Performance of Prior Select Ten Portfolios
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Series From Inception show the results that could have been obtained by
investing in the first fund of each established Series and rolling over each
year into a successor fund. Most Recently Completed Portfolio show the
returns of the latest completed fund of each Series. Returns between the
first and last set of figures will differ because the first set assume annual
rollovers and reflect a reduced sales charge on the rollovers. Also, the
performance period for Series From Inception differs from the last completed
fund.
<TABLE>
<CAPTION>
Series From Inception through Most Recently Completed Portfolio
9/30/97
Inception Series Return Period Return
DJIA Portfolio
<S> <C> <C> <C> <C>
5/17/91 B 17.63% 5/20/96- 27.54%
6/27/97
1/3/92 A 17.86% 1/18/96- 31.27%
2/28/97
9/1/92 C 20.75% 9/12/95- 30.30%
10/31/96
7/22/96 3 32.60% 7/22/96- 33.68%
8/29/97
<CAPTION>
Hong Kong Portfolio
<S> <C> <C> <C> <C>
6/21/93<F1> C 6.66% 5/20/96- 9.70%
6/27/97
9/28/93<F2> D 2.78% 9/12/95- 20.68%
10/31/96
1/5/94 A -4.25% 1/22/96- 8.03%
2/28/97
4/23/96 B 3.23% 4/23/96- 6.08%
6/13/97
7/22/96 3 5.53% 7/22/96- 2.13%
8/29/97
<CAPTION>
United Kingdom Portfolio
<S> <C> <C> <C> <C>
6/21/93 B 9.68% 5/20/96- 18.63%
6/27/97
9/28/93 C 7.45% 9/12/95- 1.28%
10/31/96
1/5/94 A 3.99% 1/22/96- 2.78%
2/28/97
7/22/96 3 26.84% 7/22/96- 18.01%
8/29/97
<CAPTION>
Japan Portfolio
<S> <C> <C> <C> <C>
1/22/96 A -30.54% 1/22/96- -29.53%
2/28/97
5/20/96 B -39.85% 5/20/96- -21.46%
6/27/97
7/22/96 3 -41.32% 7/22/96- -28.83%
8/29/97
<FN>
<F1>
Hong Kong 95B(HST95B)rolled into Hong Kong 96C(HST96C)
<F2>
Hong Kong95C(HST95C) rolled into Hong Kong96D(HST96D)
</FN>
</TABLE>
Past performance is no guarantee of future results. The above tables show
average annual total returns (price changes plus dividends reinvested, divided
by the initial public offering price) converted into U.S. dollars and reflect
all sales charges and expenses, but not taxes.
Defining Your Risks
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There can be no assurance that a Portfolio will achieve its objective. Prices
and yields will fluctuate. The Strategies may have higher yields because they
or their industries are experiencing financial difficulty or are out of favor.
The Hong Kong and Japan Portfolios may be considered speculative, and should
not be considered a complete investment program. Investing in several Select
Ten Strategies may not be appropriate if you are seeking either preservation
of capital or high current income, nor would international portfolios be
appropriate for investors who are unable or unwilling to assume the special
risks, including higher price volatility and currency rate fluctuations,
associated with investments in international equities. Generally, dividends
and any gains will be subject to tax each year. Capital gains, if any on
assets held over a year will be taxed up to the maximum federal tax rate of
28%.
Begin Your Global Journey
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Ask your financial professional for information on the latest Select Ten
offerings. He or she will be happy to provide you with a brochure and a free
prospectus containing more complete information on any of the Portfolios,
including all sales charges and expenses, and the special considerations
associated with international investing such as foreign currency and political
developments. Read the prospectus carefully before investing.
11580SJ-10/97
Merrill Lynch, Pierce, Fenner & Smith
Incorporated. Member SIPC
Units of the next Series are not yet available. Information contained 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 solicitation 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.
