Defined Asset Funds [SM]
Select Ten Portfolio
International
1998 Hong Kong Portfolio
Series A
[Dean Witter logo] Dean Witter
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 Hong Kong's, can
offer attractive growth potential and can help investors diversify their
portfolios. Hong Kong's economic growth is reflected in the performance of its
leading stock market indicator, the Hang Seng Index.(*)
A Simple Strategy
This Portfolio seeks total return by investing in approximately equal values of
the ten stocks in the Hang Seng Index having the highest dividend yield shortly
before the offering date (the "Strategy") and holding them for about a year.
These companies are among the most highly capitalized in Hong Kong.
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 redeem your investment. Although each Select
Ten Portfolio is a one-year investment, we recommend you stay with the Strategy
for at least three years for more consistent results.
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.
Select Ten International Hong Kong Portfolio -- 1998 Series A(1)
Name of Issuer Current Dividend Yield(2)
1. Henderson Land Development Co., Ltd. 8.46%
2. Sino Land Co. 7.65
3. Amoy Properties, Ltd. 7.64
4. Hysan Development Co., Ltd. 7.48
5. The Wharf (Holdings), Ltd. 7.23
6. Cathay Pacific Airways, Ltd. 6.63
7. Hung Lung Development Co., Ltd. 6.48
8. Henderson Investment, Ltd. 6.41
9. Great Eagle Holdings, Ltd. 5.87
10. Hopewell Holdings, Ltd. 5.36
(1) Initial date of deposit -- February 11, 1998
(2) Current dividend yield for each security was calculated by adding the most
recent interim and final dividends declared on that security and dividing the
result by the market value of that security as of the close of trading on
February 11, 1998. There can be no assurance that future dividends, if any,
will be maintained at the indicated rates.
The Portfolio does not reflect the research opinions or any buy or sell
recommendation of the Sponsors.
Past Performance of Prior Select Ten International Hong Kong Portfolios
The chart below shows the average annual total return 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 Through 12/31/97 Most Recently Completed Portfolio
Inception Return Period Return
6/21/93 Series C(3) -0.68% 5/20/96-6/27/97 Series C 9.70%
9/28/93 Series D(4) -5.16% 9/27/96-10/24/97 Series D -15.87%
1/5/94 Series A -9.72% 1/22/96-2/28/97 Series A 8.03%
4/23/96 Series B -14.11% 4/23/96-6/13/97 Series B 6.08%
7/22/96 Series 3 -16.42% 7/22/96-8/29/97 Series 3 2.13%
11/1/96 Series 5 -27.13% 11/1/96-12/12/97 Series 5 -25.59%
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 From Inception differ from Most Recently Completed Portfolio because
Series From Inception figures reflect a reduced sales charge on rollover and a
different performance period.
(3) 1995 Series B (HST95B) rolled into 1996 Series (HST96C)
(4) 1995 Series C (HST95C) rolled into 1996 Series D (HST96D)
[Logo] Select Ten Portfolio -- Hong Kong -- International Series
The Hang Seng Index
The Hang Seng Index, published since 1969, is a recognized indicator of Hong
Kong's stock market performance. The Index is an arithmetic index, weighted by
market capitalization representing about 70% of the total stocks on the Hong
Kong Stock Exchange. The Hang Seng Index includes companies intended to
represent four major market sectors:
1) commerce and Industry; 2) finance; 3) properties; and 4) utilities.
Currently, the companies are:
Amoy Properties
Bank of East Asia
Cathay Pacific Airways
Cheung Kong
Cheung Kong Infrastructure
China Light & Power Co.
China Resources Enterprise
China Telecom
CITIC Pacific
Fist Pacific Co.
Great Eagle Holdings
Guangdong Investment
Hang Lung Development
Hang Seng Bank
Henderson Investment
Henderson Land Development Co.
Hong Kong Electric Holdings
Hong Kong and China Gas Co.
Hong Kong and Shanghai Hotels
Hong Kong Telecommunications
Hopewell Holdings
HSBC Holdings
Hutchison Whampoa
Hysan Development Company
New World Development Co.
Shanghai Industrial Holdings
Shangri-La Asia
Sino Land Co.
Sun Hung Kai Properties
Swire Pacific (A)
Television Broadcasts
The Wharf
Wheelock and Co.
Units of the Trust are not insured by the Federal Deposit Insurance Corp.
(FDIC) and are not obligations of, endorsed by, deposits in or guaranteed by
any bank. Investments in Unit Investment Trusts and other products are subject
to investment risk, including the possible loss of the principal amount
invested.
Hypothetical Past Performance of the Strategy (not any Portfolio)
Annual Total Return Comparison 1/1/78 through 12/31/97
[A mountain chart compares the cumulative annual performance from 1/1/78
through 12/31/97 of the Strategy [5] (ochre) and the Hang Seng Index (green).
An ochre box in the upper left quadrant indicates the components of the
Strategy performance section of the chart ("net of sales charges and
expenses"). The horizontal (X) axis compares the cumulative annual performance
by year, from 1/1/78 through 12/31/97. The vertical (Y) axis reflects the
percentage value (from -50% to 130%) of performance for each index from 1/1/78
through 12/31/97.]
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 Hang Seng Index in 10 of the last 20 years. There
can be no assurance that any Portfolio will outperform the Index.
Recent underperformance is largely due to outstanding past performance of some
low dividend-yielding stocks overweighted in the Hang Seng Index that were not
selected by the Strategy. At Defined Asset Funds, we believe in the importance
of maintaining a long-term approach regardless of short-term market movements.
Annual Total Returns
Strategy returns are net of sales charges and expenses.(5)
Hang Seng Hang Sang
Year Strategy Index Year Strategy Index
1978 24.79% 23.51% 1989 7.16 10.19
1979 80.03 78.33 1990 3.86 11.99
1980 39.15 65.83 1991 46.26 48.25
1981 -6.12 -11.07 1992 36.69 33.63
1982 -41.23 -47.79 1993 104.74 121.11
1983 -9.74 -0.89 1994 -33.71 -28.83
1984 63.07 42.54 1995 13.86 26.95
1985 45.27 51.10 1996 25.57 37.73
1986 58.24 51.16 1997 -16.34 -18.33
1987 0.78 -6.73
1988 31.79 20.60 Average 18.13 19.25%
The results shown are hypothetical past performance of the Strategy (not any
Portfolio) and are no guarantee of future results. Annual total returns
represent price changes plus dividends reinvested at each year end and do not
reflect the deduction of any commissions or taxes.
Portfolio performance will also differ from the Strategy because of
commissions, Portfolios are established and liquidated at different times
during the year, they normally purchase and sell stocks at prices and currency
exchange rates different form the closing price and currency exchange rates
used in determining Portfolio unit price, Portfolios are not fully invested at
all times and stocks may not be weighted equally.
(5) Net of Portfolio sales charges (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses.
Defining Your Risks
The following are important facts to keep in mind when considering the
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. The Portfolio is highly
concentrated (90%) in real estate and property companies which could
involve additional risks.
o There can be no assurance that the Portfolio will meet it objective.
o Total returns on Hong Kong 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.
o Future political changes in Hong Kong, including the effects of Chinese
sovereignty, could impact market values of Hong Kong stocks in general.
Since October 1997, Hong Kong stocks have declined steeply with extreme
volatility, changing by more than 10% a day in some cases.
o These stocks may have higher yields because they or their industries
are experiencing financial difficulty or are out of favor. There can be
no assurance that 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
additional, the annual statement and the relevant tax reporting forms you
receive at year end will be based on the 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.
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%. However, on rollovers to future series (if available),
investors will defer recognition of gains and losses on stocks that are
contributed in kind to the new series. Investors may also be eligible for a 20%
maximum federal tax rate on gains from stocks that are sold.
Defining Your Cost
Low Initial Sales Charge / Reduced Charge for Rollovers
First-time investors pay a sales charge of up to 2.75% of the offering price
(1% initially and $17.50 per 1,000 units deferred and paid by 10 monthly
deductions from net asset value).
As a % of Public Amount per
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
Estimated Annual Operating Expenses
(as a % of net assets) 0.50% $5.01
- -------------------------------------------------------------------------------
If you sell your units before termination, the remaining deferred sales charges
will be 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 charge 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.
Amount Total Sales Charge as a % of
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%
- -------------------------------------------------------------------------------
Don't Delay
Call your financial professional for 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
and political developments. Read the prospectus carefully before you invest.
Additional Hong Kong 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 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 becomes effective. This brochure
may 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 any such state.
Other Selected Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Japan Portfolio (Nikkei Index)
Select Growth Portfolio
Select S&P Intrinsic Value Portfolio
Select S&P Industrial Portfolio
Select S&P Industry Turnaround 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
Municipal Investment Trusts
Corporate Income Funds
Government Securities Income Funds
International Bond Funds
Cover photo
Statue of Kuan-yin,
Chinese Goddess of Mercy
Her statue, pictured on the front cover,
stands in front of the Repulse Bay
Temple in Hong Kong.
[Recycling logo] Printed on Recycled Paper
37279-2/98
Dean Witter Reynolds, Inc. Member SIPC
