DEFINED ASSET FUNDS[SM]
1996 United Kingdom Portfolio
Series 3
Select Ten Portfolio
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International
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*
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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*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 difficulties 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 such as currency risk. Read it
carefully before you invest.
Financial Times Index
The Financial Times Industrial Ordinary Share 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.
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.
Suppose you had invested $10,000 in the Strategy in 1976?
Chart
Chart illustrates comparison of Strategy Stocks as described above with the FT
30 Index, as defined over a 20-year period, in $100,000 to $500,000 GUIDELINES
posted at left of chart. At the period ending 6/30/96, the Strategy Stocks as
above described were valued at $550,692, as compared with $154,332 for the FT
30 Index for the same period.
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 3*
Current
Name of Issuer Dividend Yield
1. British Gas PLC 7.80%
2. Hanson PLC 7.38%
3. BTR PLC 6.81%
4. Peninsular & Oriental Steam 6.12%
Navigation Company
5. British Telecommunications PLC 5.21%
6. Allied Domecq PLC 4.89%
7. Royal & Sun Alliance Insurance 4.66%
Group PLC
8. National Westminster Bank PLC 4.04%
9. Glaxo Wellcome PLC 3.92%
10. BICC PLC 3.87%
*Initial date of deposit -- July 22, 1996
+Current Dividend Yield for each security was generally 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 July 19, 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.
About the Chart
It is important to note that the actual performance of a 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 currency exchange rates different from the closing price and
currency exchange rate used in determining the Portfolio's unit price, and the
Portfolio is not fully invested at all times and not all stocks may be
weighted equally.
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. The last three
lines show the average annual return of the latest completed fund of each
Series. The Series now being offered is for a different time period.
Average
Series Term Total Return Annual 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% 5.75%
1995 Series C 9/6/94 - 10/13/95 -2.42% -2.21%
