DEFINED ASSET FUNDS(SM)
Select Ten Portfolio
International
1997
United
Kingdom
Portfolio
Series 5
[A picture of Big Ben with Parliament in the background]
[LOGO] Merrill Lynch
Defined Asset Funds(SM) Select Ten Portfolio--International Series uses a
simple investment strategy to help you take advantage of opportunities in
selected countries. International equity markets, such as the United Kingdom,
can offer attractive growth potential and can help investors diversify their
portfolios. The United Kingdom's economic growth is reflected in the
performance of the Financial Times Industrial Ordinary Share Index(*) (FT
Index).
A Simple Strategy
This Portfolio seeks total return by investing in approximately equal values
of the ten stocks in the FT Index, having the highest dividend yield shortly
before the offering date (the "Strategy") and will hold them for about a year.
These companies are among the most highly capitalized in the United Kingdom.
Each year, we intend to reapply the screening process to select a new
Portfolio. You may choose to reinvest in the next Portfolio, if available, at
a reduced sales charge, or you can take the cash. Although each Select Ten
Portfolio is a one-year investment, we recommend you stay with the Strategy
for at least three to five years.
Offers U.S. Investors Some Big Advantages
o Semi-annual dividends. Investors receive two consolidated checks per year,
not 20 for the 10 stocks, and payments are in U.S. dollars.
o Low cost. The minimum investment is about $250.
o Reinvestment. You may choose to reinvest your dividends at a reduced sales
charge to compound your income.
o No sell decisions. You are buying and holding for about a year, a
Portfolio of established companies with relatively high dividend yields.
*The publisher of the Financial Times Index has not participated in any way in
the creation of the Portfolio or in the selection of its stocks nor approved
any information included in this brochure.
Select Ten International United Kingdom Portfolio - 1997 Series 5(**)
Name of Issuer Current Dividend Yield(***)
1. Courtaulds PLC 5.94%
2. BTR PLC 5.49%
3. Allied Domecq PLC 4.88%
4. Peninsular & Oriental Steam Navigation Company 4.47%
5. British Telecommunications PLC 4.30%
6. Tate & Lyle PLC 3.98%
7. Blue Circle Industries PLC 3.85%
8. Imperial Chemical Industries PLC 3.60%
9. National Westminster Bank PLC 3.52%
10. EMI Group PLC 3.42%
- ------------
(**)Initial date of deposit - November 7, 1997.
(***)Current dividend yield for each security was generally calculated
by adding the most recent interim and final dividends declared on the
security and dividing the result by its market value as of the close of
trading on November 7, 1997. There can be no assurance that future
dividends, if any, will be maintained at the indicated rates. </FN>
PAST PERFORMANCE OF PRIOR SELECT TEN INTERNATIONAL UNITED KINGDOM PORTFOLIOS
The chart below shows average annual total returns for the following 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 9/30/97 Completed Portfolio
- ----------------------------------- ---------------------------------
Inception Return Period Return
- ---------- -------- --------- -------
6/21/93 Series B 9.68% 5/20/96- Series B 18.63%
6/27/97
9/28/93 Series C 7.45% 9/12/95- Series C 1.28%
10/31/96
1/5/94 Series A 3.99% 1/22/96- Series A 2.78%
2/28/97
7/22/96 Series 3 26.84% 7/22/96- Series 3 18.01%
8/29/97
Past performance is no guarantee of future results. Average annual total
returns represent price changes plus dividends reinvested, divided by the
initial public offering price, and reflect 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 and because the performance period of
the Most Recently Completed Portfolio is different.
J019 (11/97)
PaineWebber, Inc. Member SIPC
Financial Times Index
The Financial Times Industrial Ordinary Share Index (FT Index) 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 these companies:
Allied Domecq SELECT TEN PORTFOLIO
ASDA Group [A picture of Big Ben]
BOC Group UNITED KINGDOM
BTR INTERNATIONAL SERIES
Blue Circle Industries
Boots Company
British Airways
British Petroleum Company
British Telecommunications
BG
Cadbury Schweppes
Courtaulds
General Electric Company
Glaxo Wellcome
Grand Metropolitan
GKN
Granada
Guinness
Imperial Chemical Industries
Lucas Industries
Lloyds TSB
Marks & Spencer
National Westminster Bank
Peninsular & Oriental Steam Navigation Company
Reuters Holdings
Royal & Sun Alliance Insurance
SmithKline Beecham
Tate & Lyle
Thorn EMI
Vadafone Group
[A mountain chart, captioned "Hypothetical Performance of the Strategy (not any
Portfolio) Growth of $10,000 invested 1/1/77 through 9/30/97," compares the
cumulative annual performance from 1/1/77 through 9/30/97 of the Strategy
(ochre) with the FT Index (crimson). An ochre box in the upper left quadrant
indicates the components of the Strategy*** performance section of the chart.
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 AMOUNTS
in $100,000 increments from $0 up to $500,000. The initial value of each
investment is $10,000. Throughout the 20 year period, increases in each
investment build towards the right vertical or (X) axis. At the end of the 20
year period, the right vertical or (X) axis, reflects both the ending value of
the STRATEGY($550,089) and the ending value of the FT Index ($246,852)].
Since stocks in the Portfolio were chosen solely by applying the Strategy, we
analyzed the Strategy to see how it could have performed. Past performance of
the Strategy is no guarantee of future results of any Portfolio. The Strategy
would have underperformed the FT Index in 7 of the last 20 years. There can
be no assurance that any Portfolio will outperform the Index.
Annual Total Returns
Strategy returns are net of sales charges and expenses***
FT FT
Year Strategy Index Year Strategy Index
1977 84.02% 61.92% 1988 9.13 6.74
1978 15.48 9.92 1989 26.46 22.80
1979 2.51 3.59 1990 7.01 10.29
1980 27.90 31.77 1991 14.32 14.65
1981 -8.52 -5.30 1992 2.02 -2.33
1982 41.78 0.42 1993 35.44 18.40
1983 39.81 21.94 1994 3.21 1.89
1984 3.25 2.15 1995 8.58 17.63
1985 76.39 54.74 1996 12.04 20.05
1986 30.63 24.36 9/30/97 7.13 16.29
1987 45.85 38.99 Average 21.30% 16.71%
The data shown represents hypothetical past performance of the Strategy (not
any Portfolio) and is no guarantee of future results. Figures represent price
changes plus dividends reinvested at each year end and do not reflect the
deductions of any commissions or taxes. Changes in the exchange rate of the
pound sterling relative to the U.S. 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.
Portfolio performance will differ from the Strategy because of commissions and
taxes, Portfolios are established and liquidated at different times during the
year, they normally purchase and sell stocks at prices and currency exchange
rates different from the closing price and currency exchange rate used in
determining Portfolio unit price, Portfolios are not fully invested at all
times and stocks may not be weighted equally. The Strategy does not reflect
the research opinions or any buy or sell recommendations of any of the
Sponsors.
*** Net of Portfolio sales charges(2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses (about 0.50% a year).
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 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 can be no assurance that dividend
rates will be maintained or that stock prices or currency exchange rates will
not decline. 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%.
o The stocks may have higher yields because they or their industries are
experiencing financial difficulty or are out of favor. There can be no
assurance the market factors that caused these relatively low prices and high
yields will change.
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 tax basis in your units by the
deferred sales charge and the charge for organizational expenses. U.S.
investors will include in income their share of dividends grossed up for
certain taxes paid by U.K. issuers; however, they may not be able to obtain
refunds for such taxes.
Defining Your Cost
Low Initial Sales Charge/
Reduced Charge for Rollovers
First-time investors pay an initial sales charge of approximately 1% when they
buy. 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).
As a % of Public Offering Amount per
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
Estimated Annual
Operating Expenses (as a
% of net assets) 0.43% $4.32
If you sell your units before termination, the remaining deferred sales
charges are deducted, along with the estimated costs of selling Portfolio
securities. If you roll over to a successor Portfolio, if available, the
initial charge is waived. You only pay the $17.50 deferred fee and operating
expenses.
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
Amount Purchased Public 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%
Other Select Series
Select Ten Portfolio (DJIA)
Hong Kong Portfolio (Hang Seng Index)
Japan Portfolio (Nikkei Index)
Select Growth Portfolio
Select S&P Industrial Portfolio
Select S&P Intrinsic Value Portfolio
Equity Investor Funds Concept Series
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund 2
Tele-Global Trust 2
Equity Investor Funds Index Series
S&P 500 Index Trust 2
S&P MidCap Index Trust
Other Defined Asset Funds
Corporate Income Funds
Government Securities Income Funds
International Bond Funds
Municipal Investment Trusts
Don't Delay.
Call your financial professional for a free prospectus containing more complete
information, including all charges and expenses, and the special considerations
associated with the risks of international investing including currency risk.
Read the prospectus carefully before you invest.
Additional United Kingdom Portfolios containing the then-highest
dividend-yielding stocks may be created in the future. Information contained
herein is subject to completion or amendment. A registration statement
relating to the securities of the next Portfolio in this Select Ten
Portfolio--International Series has been filed with the Securities and
Exchange Commission. The securities of that Portfolio may not be sold nor may
offers to buy be accepted prior to the time that 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 offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state.
14952BR-11/97
Copyright 1997 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC.
