Defined Asset Funds[SM]
The Select S&P Industrial Portfolio
1997 Series D
Take indexing to a new level...
For Dividends...
For Potential Capital Appreciation...
For Total Return...
Indexing--it's a strategy that many investors choose to
mirror the returns of major indices. Why not go a step beyond Indexing?
Defined Asset Funds[SM]
can help.
A Step Beyond Indexing
Instead of simply replicating an index, the Select S&P
Industrial Portfolio takes indexing to a new level by attempting to single out
stocks within the index for a combination of value capital appreciation and
current dividend income. The Portfolio seeks total return through a contrarian
strategy of selecting the 15 stocks from the S&P Industrial Index(*) that have
high dividend yields.
The Selection Process
The Select S&P Industrial Portfolio looks for potential values
in the equity market by investing in companies in the S&P Industrial Index
that may be currently out of favor. It does this by employing a disciplined
four-part screening process:
1. Defining the Universe: We begin with the S&P Industrial
Index which is a sub-set of the S&P 500(*) that includes only
industrial stocks. Defined Asset Funds then removes any stocks
that are a part of the Dow Jones Industrial Average(*) (DJIA).
- ---------------
(*)"Standard & Poor's," "S&P" and "S&P 500" are trademarks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Defined Asset
Funds. The Portfolio is not sponsored, managed, sold or promoted by
Standard & Poor's. The name "Dow Jones Industrial Average" is the property
of Dow Jones & Company, Incorporated.
2. Quality Screen: Only stocks that are ranked A+ or A by
Standard & Poor's are included. Standard & Poor's determines these
rankings of stocks using a computerized system, which focuses
primarily on the growth and stability of per-share earnings and
dividends. It then assigns a symbol to each stock, which
ranges from A+ for the most highly esteemed stocks to D for
those stocks which Standard & Poor's considers to be the most
speculative. These rankings are not intended to predict stock
price movements.
3. Market Capitalization: The stocks are then ranked by their
market capitalization from highest to lowest, and the lowest 25%
are eliminated. This allows the Portfolio to avoid smaller, less
liquid issues.
4. Highest Dividend Yield: Finally, the remaining stocks are
ranked according to dividend yield, which identifies companies
whose prices may have declined. The 15 highest-yielding stocks are
selected for the Portfolio.
The Defined Asset Funds Select Strategy
Like each Portfolio in the Defined Asset Funds Select Series,
the S&P Industrial Portfolio employs a "buy and hold" style of investing for
approximately one year following a disciplined investment strategy. At the
end of one year, the screening process is reapplied and a new Portfolio is
selected. You can reinvest your earnings into the new Portfolio, if
available, or you can redeem your investment. The research is done for you.
There are no buy or sell decisions to make.
Although the Select Portfolios are one year investments, we
recommend staying with the Strategy for at least three to five years.
Defining the Portfolio
At Defined Asset Funds, we believe in giving our investors the
facts they need to make informed choices. It is important to note that when a
stock has a relatively high dividend yield, it can be an indication that the
company or the industry may be currently out of favor.
Select S&P Industrial Portfolio -- Series 1997 D
<TABLE>
<CAPTION>
Current
Companies Ticker Symbol Dividend Yield*
<S> <C> <C> <C>
1. UST, Inc. UST 5.81%
2. General Mills, Inc. GIS 3.49%
3. Alltel Corporation AT 3.41%
4. International Flavors & Fragrances, Inc. IFF 3.21%
5. SBC Communications, Inc. SBC 3.03%
6. Royal Dutch Petroleum Company** RD 2.95%
7. Genuine Parts Company GPC 2.81%
8. Heinz (H.J.) Company HNZ 2.67%
9. May Department Stores Company MAY 2.51%
10. The Limited, Inc. LTD 2.43%
11. Winn-Dixie Stores, Inc. WIN 2.42%
12. Anheuser-Busch Companies, Inc. BUD 2.31%
13. Pitney Bowes, Inc. PBI 2.25%
14. American Home Products Corporation AHP 2.15%
15. Kellogg Company K 2.13%
</TABLE>
_______________
* Current Dividend Yield for each stock was calculated by annualizing the last
quarterly or semi-annual ordinary dividend received on the stock and dividing
the results by its market value on the close of trading on June 6, 1997.
** This issuer is located in The Netherlands; the current semi-annual dividend
per share will be subject to withholding taxes of The Netherlands.
Time In The Market
Annual Total Returns (Periods ending December 31)
S&P S&P
Year Strategy DJIA 500 Industrial
1972 17.80% 18.21% 18.98% 19.83%
1973 -16.66% -13.12% -14.66% -14.61%
1974 -3.16% -23.14% -26.47% -26.54%
1975 42.19% 44.40% 36.92% 36.78%
1976 32.53% 22.72% 23.53% 22.59%
1977 -4.34% -12.71% -7.19% -8.20%
1978 8.04% 2.69% 6.39% 7.50%
1979 28.18% 10.52% 18.02% 18.40%
1980 20.04% 21.41% 31.50% 32.98%
1981 9.64% -3.40% -4.83% -6.69%
1982 27.59% 25.79% 20.26% 20.14%
1983 26.45% 25.68% 22.27% 22.79%
1984 14.22% 1.06% 5.95% 4.09%
1985 31.64% 32.78% 31.43% 30.08%
1986 30.44% 26.91% 18.37% 18.54%
1987 4.53% 6.02% 5.67% 9.13%
1988 43.56% 15.95% 16.58% 15.80%
1989 36.99% 31.71% 31.11% 29.30%
1990 3.00% -0.57% -3.20% -0.84%
1991 28.73% 23.93% 30.51% 30.39%
1992 13.36% 7.34% 7.67% 5.63%
1993 4.29% 16.72% 9.97% 8.90%
1994 13.28% 4.95% 1.30% 3.75%
1995 38.25% 36.48% 37.10% 34.26%
1996 14.10% 28.57% 22.69% 22.70%
3/31/97 2.87% 2.63% 2.70% 2.67%
Average* 17.49% 12.76% 12.34% 12.24%
__________________
* Average annual total returns represent the annual rate of price
appreciation plus dividends reinvested at the end of each year. Neither
the average annual return of 17.49%, nor any of the other figures listed,
are any guarantee of future performance.
Avoid the teachings of speculators whose judgments are not confirmed by
experience.
L E O N A R D O D A V I N C I
How the Strategy Could Have Performed
We analyzed the hypothetical historical returns of $10,000
invested over 25 years according to the S&P Industrial Strategy as compared to
the Index, the S&P 500 and the DJ1A. While past performance is no guarantee of
future results, the Strategy would have offered impressive returns, as you can
see from the chart below.
[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 (not any portfolio) (yellow), the
DJIA (pink), the S&P 500 (purple) and the S&P Industrial (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: $585,489 (Strategy); $206,721 (DJIA);
$188,717 (S&P 500); $184,512 (S&P Industrial).]
The charts above compare hypothetical performance of the Select
S&P Strategy (not any actual Portfolio) with the actual performance of the S&P
Industrial Index, the S&P 500 Composite Stock Price Index and the DJIA. 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
would have underperformed the S&P Industrial Index in 9 out of the last 25
years, the S&P 500 in 10 out of the last 25 years and the DJIA in 11 out of
the last 25 years. There can be no assurance that any Portfolio will
outperform these indices. Actual performance will also differ from the
Strategy 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.
About Standard & Poor's
STANDARD & POOR'S is a leading financial information and
investment research company. Since 1860, it has provided investors with
financial research, benchmarks, and market data. Its most notable benchmark
the S&P 500 Composite Stock Price Index, features utility, financial,
transportation and industrial stocks. The S&P Industrial Index, a sub-set of
the S&P 500, includes only highly capitalized industrial stocks.
Defining Your Cost
Low Initial Sales Charge/Reduced Charge for Rollovers
All investors pay a deferred sales charge of $1.75 per 1,000
units, deducted in each of the last ten months of the Portfolio ($17.50
total). First-time investors also pay a sales charge of approximately 1% when
they buy.
As of % of
Initial
Public Amount per
Amount Purchased Offering Price 1,000 Units
- -----------------------------------------------------------------
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
========================
Maximum Sales Charge 2.75% $27.50
If you sell before termination, the remaining deferred sales
charges are deducted, along with the estimated costs of selling Portfolio
securities. If you roll over into a successor Portfolio, if available, the
initial charge is waived. You only pay the $17.50 deferred fee on that
Portfolio.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to
put more of your investment dollars to work for you.
Total Sales Charge
as a % of the Public
Amount Purchased Offering Price
- --------------------------------------------------------------
Less than $50,000 2.75%
$50,000 to $99,999 2.50%
$100,000 to $249,999 2.00%
$250,000 to $999,999 1.75%
$1,000,000 or more 1.00%
- --------------------------------------------------------------
Defining Your Risks
The Select S&P Industrial Portfolio is 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 this investment will fluctuate
with the value of the underlying stocks and the sale price may be more or less
than the original cost. There can be no assurance that dividend rates will be
maintained or that stock prices will not decrease.
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.
Select Now!
You can get started with the Select S&P Industrial Portfolio
with as little as $250. Call your financial professional for a free prospectus
containing more complete information including all charges and expenses.
Please read the prospectus carefully before investing.
Information contained herein is subject to amendment. A
registration statement relating to the next Series of the S&P Industrial
Portfolio has been filed with the Securities and Exchange Commission. The
securities of the new offering 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 those 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 any such state.
Select Stories
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(DJIA)
Hong Kong Portfolio
(Hang Seng Index)
Japan Portfolio
(Nikkei Index)
United Kingdom Portfolio
(Financial Times Index)
Select Growth Portfolio
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Concept Series
Health Care Trust II
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Premier American Portfolio
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15th Utility Common Stock Series
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