Defined Asset Funds[SM]
Defined Performance
As of December 31, 1999
[ML Logo] Merrill Lynch
Defined Asset Funds(SM) is committed to providing our investors with what we
believe are some of today's most attractive financial opportunities, within the
convenient structure of a Unit Investment Trust (UIT). We offer a full range of
equity and fixed-income investments including research-based funds and
quantitative strategies. Our research-based funds are developed by an
experienced team of buyers and analysts who investigate securities around the
globe to uncover promising investment opportunities. Our quantitative portfolios
are developed by professional analysts who work diligently to provide our
clients with investment strategies that have demonstrated past performance for
future potential. And our Portfolio Consultants can provide some of the best
insights from Wall Street, and beyond.
The following pages provide detailed information on our family of funds
including fund performance.
If you have any questions or would like additional information on any Defined
Asset Fund and how they could help to meet your investment goals, please
contact your Merrill Lunch Financial Consultant.
The Defined Asset Funds Advantage
Ongoing Supervision
While our funds are not actively managed, the portfolios are reviewed
regularly by our research analysts and a security may be sold in the event of
significant adverse developments.
Reinvestment Option
Most equity funds offer a reinvestment option that lets you reinvest
distributions into additional units of the fund, at a reduced sales charge. By
reinvesting, you can increase your holdings and compound your total return.
Low Expenses
Although units are subject to sales charges, annual operating expenses are low.
What's more, volume discounts are generally available on larger purchases.
Liquidity
You can redeem your investment at any time at a price based on the fund's then
current net asset value which may be more or less than your original cost.
Exchange Option
You may also choose to exchange your holdings for certain other Defined Asset
Funds at a reduced sales charge.
Convenience
No need for multiple security purchases. Defined Asset Funds offer
diversification, with one easy price to track.
Table of Contents
Levels of Risk Tolerance 2
Portfolio Definitions 3
Portfolio Offerings 4
Equity Performance
Select Series 6
Domestic, International and Sector 7
Fixed-Income Performance
Municipal, State and Corporate Series 8
OUR FAMILY OF DEFINED PORTFOLIOS
Defined Asset Funds[SM]
Buy with Knowledge o Hold with Confidence
Portfolios to fit various levels of risk tolerance.
[A chart in pyramid form, divided into five sections. The degree of risk is
lower at the base and increases section by section to higher risk as one moves
in the direction of and to the top of the pyramid.]
<TABLE>
Lower Risk Higher Risk
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
o Corporate Income o Real Estate o Western Premier o Tele-Global Trust o Financial Portfolio
Funds Income Fund Portfolio o Select Ten United o Defined
o Laddered Treasury o Utility Portfolio o Select Principled Kingdom Technology
Trusts o Cohen & Steers Values(SM) Portfolio o Select Year-Ahead Portfolio(SM)
o Municipal Realty Majors(SM) o Select Standard & International o Health Care Trust
Investment (Portfolio) Poor's Industrial o Select S&P (Pharmaceutical &
Trusts/Defined o S&P 500 Trust Portfolio Intrinsic Value Biotechnology
Municipal Funds o Premier American Portfolio Portfolio)
o United States Portfolio o Premier World o Select Growth
Treasury Strategy o Select Ten Portfolio Portfolio
Trust Portfolio (DJIA)* o Standard & Poor's
o GNMA Series MidCap Trust
o European
Monetary Union
Portfolio
o Select Year-Ahead
Domestic Portfolio
o Select Standard &
Poor's Industry
Turnaround
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
This chart is for illustrative purposes to be used as a general guide. Please
consult your Financial Consultant who can make recommendations for your
personal investment goals.
DOMESTIC EQUITIES
Low Five Portfolio
For growth potential with principal protection. Features call options
representing five DJIA* stocks.
Premier American Portfolio
A diversified Portfolio of American blue chip companies.
Principled Values Portfolio
Invests in companies with socially responsible policies and a positive
diversity record.
Select Growth Portfolio
Holds ten growth stocks selected by O'Shaughnessy Capital Management's
proprietary screening process.
Select S&P Industrial Portfolio(+)
Follows a contrarian strategy by selecting 15 large cap stocks ranked A or
better by S&P from the Industrial Index with high dividend yields.
Select S&P Industry Turnaround Portfolio(+)
Promising stocks selected by Standard & Poor's from out of favor industries,
potentially ready for a comeback.
Select Standard & Poor's Intrinsic Value Portfolio(+)
Invests in stocks selected by a Standard & Poor's model for their strong
capital appreciation potential.
Select Ten Portfolio (DJIA)
Holds the ten highest dividend-yielding stocks of the DJIA.
S&P 500 Trust and S&P MidCap Trust(+)
Replicates composition and weighting of S&P 500 and S&P 400 MidCap indices.
Western Premier Portfolio
Stocks of highly capitalized companies headquartered in the western U.S.
chosen for their growth potential.
Year-Ahead Domestic Portfolio
Companies selected for growth potential by Merrill Lynch Global Research.
INTERNATIONAL EQUITIES
European Monetary Union Portfolio
Attractive stocks from EMU countries that may benefit from economic union.
Premier World Portfolio
Diversified portfolio of large cap non-U.S. companies.
Select Ten United Kingdom Portfolio
The ten highest dividend-yielding stocks of the Financial Times Index.
Year-Ahead International Portfolio
International stocks recommended by Merrill Lynch Research from a variety of
non-U.S. countries.
SECTOR EQUITIES
Cohen & Steers Realty Majors Portfolio
29 REITs which Cohen & Steers considers to be leaders in the industry.
Defined Technology Portfolio
Seeks to outperform the Merrill Lynch 100 Technology Index by reweighting
stocks in the index.
Financial Portfolio
Financial stocks selected by Merrill Lynch Research as among the most
attractive.
Health Care Trust (Pharmeceutical & Biotechnology Portfolio)
Attractive health care stocks selected by Merrill Lynch Research.
Real Estate Income Fund
Portfolio of REITs, diversified both geographically and by sector. Cohen &
Steers consults on the portfolio selection.
Tele-Global Trust
Global telecommunications companies that are believed to be well-positioned for
growth.
Utility Portfolio
U.S. electric utility stocks with strong dividend history.
FIXED-INCOME
Municipal Investment Trusts/Defined Municipal Funds
National Series
Diverse bond portfolios, income exempt from regular federal income taxes.(++)
State Series
Bonds from one state, offering double or triple tax-free income.
Insured Series
AAA rated. Federal tax-free income.(++) Portfolio bonds are guaranteed against
credit risk, but not market risk.(Section)
Corporate Income Funds
Insured
AAA rated. Diversified portfolio of corporate bonds. Insured against credit
risk.(Section)
Intermediate
Diversified quality corporate bonds rated A or better.
Long Term
Diversified corporate bonds rated A or better.
Government Securities Income Funds
5 & 10 Year Laddered Treasury Trust
AAA rated portfolios of Treasury notes with laddered maturities.
U.S. Treasury Strategy Trust
AAA rated laddered portfolios of medium-term interest-bearing U.S. Treasuries.
GNMA Series
AAA rated portfolios of Ginnie Mae mortgage-backed securities.
* Dow Jones & Company, Inc., owner of the name "Dow Jones Industrial Average,"
is unaffiliated with, and did not participate in the creation of the
Portfolios or the selection of their stocks, and has neither reviewed nor
approved any information in this brochure or the prospectus relating to the
Portfolios.
+ "Standard & Poor's," "S&P," "S&P 500," "S&P MidCap" and the "S&P Industrial
Index" are trademarks of The McGraw-Hill Companies, Inc. and have been
licensed for use by Defined Asset Funds. The Portfolios are not sponsored,
managed, sold or promoted by Standard & Poor's.
++ May be subject to state and local taxes.
Section Insurance does not remove market risk.
EQUITY PORTFOLIOS
<TABLE>
- ------------------------------------------------------------------------------------------------------------
TERM OF FUND INVESTMENT PORTFOLIO STYLE SELECTION
GOAL METHODOLOGY
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
DOMESTIC
- ------------------------------------------------------------------------------------------------------------
Cohen & Steers Realty 3 Years # SECTOR FUNDAMENTAL
Majors Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Defined Technology 1 Year > SECTOR QUANTITATIVE
Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Financial Portfolio 2 Years > SECTOR FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Health Care Trust 2 Years > SECTOR FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Low Five Portfolio* 5 1/2 Years > LARGE CAP/CAPITAL QUANTITATIVE
PRESERVATION RESEARCH
- ------------------------------------------------------------------------------------------------------------
Premier American Portfolio 2 Years > LARGE CAP GROWTH FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Principled Values Portfolio 1 Year > LARGE CAP GROWTH QUANTITATIVE
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Real Estate Income Fund 2 Years # SECTOR FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select Growth Portfolio 1 Year > MID CAP GROWTH QUANTITATIVE
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select S&P Industrial 1 Year # GROWTH & VALUE QUANTITATIVE
Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select S&P Industry 2 Years > LARGE CAP QUANTITATIVE
Turnaround Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select Standard & Poor's 1 Year > LARGE CAP GROWTH QUANTITATIVE
Intrinsic Value Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select Ten Portfolio (DJIA) 1 Year # LARGE CAP VALUE QUANTITATIVE
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select Year-Ahead 1 Year > LARGE CAP GROWTH FUNDAMENTAL
Domestic Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
S&P 500 Trust Perpetual > LARGE CAP INDEX
- ------------------------------------------------------------------------------------------------------------
S&P MidCap Trusts Perpetual > MID CAP INDEX
- ------------------------------------------------------------------------------------------------------------
Utility Portfolio 2 Years # SECTOR FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Western Premier Portfolio 2 Years > LARGE CAP GROWTH FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
INTERNATIONAL QUANTITATIVE
RESEARCH
- ------------------------------------------------------------------------------------------------------------
European Monetary Union 2 Years > INTERNATIONAL FUNDAMENTAL
Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Premier World Portfolio 2 Years > INTERNATIONAL FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select Ten United Kingdom 1 Year > INTERNATIONAL QUANTITATIVE
Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Select Year-Ahead 1 Year > INTERNATIONAL FUNDAMENTAL
International Portfolio RESEARCH
- ------------------------------------------------------------------------------------------------------------
Tele-Global Trust (Global) 2 Years > SECTOR FUNDAMENTAL
RESEARCH
- ------------------------------------------------------------------------------------------------------------
</TABLE>
FIXED-INCOME PORTFOLIOS
<TABLE>
- -------------------------------------------------------------------------------------------------------------
AVERAGE INVESTMEN PORTFOLIO SELECTION
MATURITY T GOAL STYLE METHODOLOGY
- -------------------------------------------------------------------------------------------------------------
CORPORATE INCOME FUNDS
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured Corporate Income Funds 30 Years $ CAPITAL FUNDAMENTAL
PRESERVATION RESEARCH
- -------------------------------------------------------------------------------------------------------------
Long Term Corporate Income Funds 30 Years $ N/A FUNDAMENTAL
RESEARCH
- -------------------------------------------------------------------------------------------------------------
Intermediate Corporate Income Funds 10 Years $ N/A FUNDAMENTAL
RESEARCH
- -------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES INCOME FUNDS
- -------------------------------------------------------------------------------------------------------------
U. S. Treasury Strategy Trust 21 Years $ CAPITAL N/A
PRESERVATION
- -------------------------------------------------------------------------------------------------------------
GNMA Series 12 Years $ CAPITAL N/A
PRESERVATION
- -------------------------------------------------------------------------------------------------------------
10 Year Laddered Trust 10 Years $ CAPITAL N/A
PRESERVATION
- -------------------------------------------------------------------------------------------------------------
5 Year Laddered Trust 5 Years $ CAPITAL N/A
PRESERVATION
- -------------------------------------------------------------------------------------------------------------
MUNICIPAL FUNDS
- -------------------------------------------------------------------------------------------------------------
Municipal Investment Trust Insured 20 to 35 Years $ CAPITAL FUNDAMENTAL
Series PRESERVATION RESEARCH
- -------------------------------------------------------------------------------------------------------------
Municipal Investment Trust National 15 to 30 $ N/A FUNDAMENTAL
Series Years RESEARCH
- -------------------------------------------------------------------------------------------------------------
Municipal Investment Trust State 20 to 35 $ N/A FUNDAMENTAL
Series Years RESEARCH
- -------------------------------------------------------------------------------------------------------------
Municipal Investment Trust Investment 12 to 17 $ N/A FUNDAMENTAL
Grade Series Years RESEARCH
- -------------------------------------------------------------------------------------------------------------
Municipal Defined Fund 15 to 30 $ N/A FUNDAMENTAL
Years RESEARCH
- -------------------------------------------------------------------------------------------------------------
Municipal Investment Trust 10 to 13 $ N/A FUNDAMENTAL
Intermediate State Series Years RESEARCH
- -------------------------------------------------------------------------------------------------------------
Municipal Investment Trust 5 or 10 $ N/A FUNDAMENTAL
Intermediate Series 5 & 10 Year Years RESEARCH
Series
- -------------------------------------------------------------------------------------------------------------
</TABLE>
* Features call options, rather than the equities, representing five DJIA
stocks. The price of the fund is based on the price of the underlying
stocks.
Defined Asset Funds offers a wide diversity of Portfolios in order to provide
a balance of opportunities to meet each individual's investment goals. The
charts on the opposite page indicate a Portfolio's suitability to your
investment goal and portfolio style as described below.
INVESTMENT GOAL
$ INCOME
Provides periodic cash disbursements for current income or reinvestment.
# INCOME & GROWTH
Provides a combination of both dividends and potential appreciation in
value of investment.
> CAPITAL APPRECIATION
Potential appreciation in value of investment.
PORTFOLIO STYLE
GROWTH
Portfolio focuses on companies with better than average expected growth in
earnings.
LARGE CAP GROWTH
Portfolio focuses on large companies with better than average expected growth
in earnings.
MID CAP GROWTH
Portfolio focuses on mid-size companies with better than average expected
growth in earnings.
GROWTH & VALUE
Portfolio focuses on better than average expected growth in earnings and also
considers relative price level of securities.
LARGE CAP VALUE
Portfolio focuses on large companies that may appear undervalued.
INTERNATIONAL
Portfolio focuses on companies based outside the United States.
SECTOR
Portfolio focuses on a specific industry such as technology or utility.
CAPITAL PRESERVATION
Value of initial investment is preserved if fund is held to maturity.
SELECTION METHODOLOGY
FUNDAMENTAL RESEARCH
Stock analysis which focuses on the interpretation of publicly available
information pertaining to a certain company to determine the current financial
status of that company and future prospects of the company's stock. Such
information used may include earnings, dividends, interviews with management,
and other financial factors.
QUANTITATIVE RESEARCH
Analysis that objectively selects stocks to be included in a portfolio based on
non-subjective factors, such as price-earnings, dividend yield, price-momentum,
and other financial ratios.
INDEX
A passive investment technique in which the portfolio is a replication in both
stock selection and stock weightings of a given index.
EQUITIES
The Select Series includes portfolios that invest in specific strategies.
Several portfolios in the Select Series are based on well-known indices. Each
portfolio has a one year maturity. You can choose to roll your assets each
year, if a new fund is available. Past performance is no guarantee of future
results.
Performance from Inception through December 31, 1998
<TABLE>
- ------------------------------------------------------------------------------------------------------------
AVERAGE
CUMULATIVE ANNUAL MOST RECENTLY
SELECT INCEPTION TOTAL TOTAL COMPLETED PORTFOLIO
SERIES DATE RETURN RETURN Offer to End Date Return
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECT TEN PORTFOLIOS - DJIA
- ------------------------------------------------------------------------------------------------------------
Series B 5/17/91 207.10% 15.84% 5/27/97-6/30/98 11.29%
- ------------------------------------------------------------------------------------------------------------
Series A 1/3/92 165.85 15.00 1/27/97-2/27/98 18.90
- ------------------------------------------------------------------------------------------------------------
Series C 9/1/92 195.12 18.63 9/17/96-10/24/97 28.52
- ------------------------------------------------------------------------------------------------------------
Series 3 7/22/96 54.38 19.45 7/28/97-8/28/98 1.59
- ------------------------------------------------------------------------------------------------------------
Series 5 11/1/96 31.48 13.48 11/1/96-12/12/97 25.85
- ------------------------------------------------------------------------------------------------------------
Series J 1/2/97 25.01 11.84 1/2/97-1/30/98 12.87
- ------------------------------------------------------------------------------------------------------------
Series 1 2/25/97 17.09 8.92 2/25/97-3/27/98 19.38
- ------------------------------------------------------------------------------------------------------------
Series 2 4/28/97 25.18 14.33 4/28/97-6/5/98 24.49
- ------------------------------------------------------------------------------------------------------------
Series 4 9/3/97 12.62 9.37 9/3/97-10/2/98 2.02
- ------------------------------------------------------------------------------------------------------------
SELECT S&P INDUSTRIAL PORTFOLIOS
- ------------------------------------------------------------------------------------------------------------
Series A 1/22/97 38.32% 18.20% 1/22/97-3/13/98 31.43%
- ------------------------------------------------------------------------------------------------------------
Series B 2/24/97 39.33 19.65 2/24/97-4/24/98 22.96
- ------------------------------------------------------------------------------------------------------------
Series C 4/21/97 48.05 26.03 4/21/97-5/22/98 35.59
- ------------------------------------------------------------------------------------------------------------
Series D 6/9/97 26.29 16.12 6/9/97-7/17/98 19.39
- ------------------------------------------------------------------------------------------------------------
Series E 7/21/97 21.72 14.56 7/21/97-8/21/98 8.25
- ------------------------------------------------------------------------------------------------------------
Series F 9/8/97 24.35 18.07 9/8/97-10/2/98 9.95
- ------------------------------------------------------------------------------------------------------------
Series G 10/20/97 12.46 10.31 10/20/97-12/4/98 14.22
- ------------------------------------------------------------------------------------------------------------
Series H 12/2/97 12.49 11.52 N/A N/A
- ------------------------------------------------------------------------------------------------------------
SELECT GROWTH PORTFOLIOS
- ------------------------------------------------------------------------------------------------------------
Series A 2/14/95 103.70% 20.13% 2/10/97-3/13/98 33.77%
- ------------------------------------------------------------------------------------------------------------
Series B 6/6/95 81.07 18.08 5/12/97-6/19/98 32.10
- ------------------------------------------------------------------------------------------------------------
Series C 8/1/95 -13.24 -4.07 8/18/97-9/18/98 -23.74
- ------------------------------------------------------------------------------------------------------------
Series D 11/1/95 20.53 6.07 11/17/97-12/18/97 -28.98
- ------------------------------------------------------------------------------------------------------------
SELECT S&P INTRINSIC VALUE PORTFOLIOS
- ------------------------------------------------------------------------------------------------------------
Series C 11/21/96 31.23% 13.75% 11/21/96-12/19/97 7.08%
- ------------------------------------------------------------------------------------------------------------
Series A 4/2/97 44.27 23.33 4/2/97-5/15/98 32.93
- ------------------------------------------------------------------------------------------------------------
Series B 8/6/97 -1.33 -0.95 8/6/97-9/2/98 -8.51
- ------------------------------------------------------------------------------------------------------------
SELECT TEN UNITED KINGDOM PORTFOLIOS
- ------------------------------------------------------------------------------------------------------------
Series B 6/21/93 53.96% 8.11% 5/27/97-6/30/98 31.56%
- ------------------------------------------------------------------------------------------------------------
Series C 9/28/93 48.70 7.83 9/17/96-10/24/97 22.15
- ------------------------------------------------------------------------------------------------------------
Series A 1/5/94 34.74 6.16 1/27/97-2/27/98 16.97
- ------------------------------------------------------------------------------------------------------------
Series 3 7/22/96 42.49 15.59 7/28/97-8/28/98 19.78
- ------------------------------------------------------------------------------------------------------------
Series 5 11/1/96 25.54 11.08 11/1/96-12/12/97 18.50
- ------------------------------------------------------------------------------------------------------------
Series 1 2/25/97 28.99 14.78 2/25/97-3/27/98 29.25
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return differs from Most Recently Completed Portfolio
because the former figures reflect a reduced sales charge on annual rollovers
and different performance periods.
Growth of $10,000 in the Select Ten Portfolio Series B from 5/17/91-12/31/98
[A bar graph shows the cumulative annual performance from 5/17/91 through
12/31/98. The horizontal (X) axis shows the cumulative annual performance by
year, from 5/17/91 through 12/31/98. The vertical (Y) axis reflects the
dollar amount value for each year from 5/17/91 through 12/31/98.]
DATE VALUE
5/17/91 $10,000
5/5/92 11,312
5/5/93 12,093
5/6/94 13,014
5/11/95 15,830
5/20/96 20,878
5/27/97 26,688
6/1/98 30,878
12/31/98 30,710
NOTE: Above returns represent price changes plus dividends reinvested and
reflect the maximum applicable sales charge and expenses.
Equity Prices can be tracked weeekly in Barron's.
EQUITIES
Performance from Inception through December 31, 1998
<TABLE>
SINCE INCEPTION DATE
INCEPTION END 1 YEAR ------------------------
DATE DATE TTL RETURN TTL. RTN.
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DOMESTIC
- ----------------------------------------------------------------------------------------------------------------------------
Index Trusts 5YR TTL. RTN 5YR. AAR
S&P 500 Trust 1 184.84% 23.27% 5/26/83 N/A 25.80% 442.85%(*) 18.42%(*)
- ----------------------------------------------------------------------------------------------------------------------------
S&P 500 Trust 2 185.04 23.29 2/19/92 N/A 25.60 240.53 19.53
- ----------------------------------------------------------------------------------------------------------------------------
S&P Midcap Trust 127.40 17.85 2/19/92 N/A 16.05 176.70 15.97
- ----------------------------------------------------------------------------------------------------------------------------
S&P Industry Turnaround Portfolios(+)
- ----------------------------------------------------------------------------------------------------------------------------
Industry Turnaround Series 1 11/21/97 N/A -0.82 2.38 2.14
- ----------------------------------------------------------------------------------------------------------------------------
Industry Turnaround Series 2 4/3/98 N/A N/A -21.21 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Industry Turnaround Series 3 9/16/98 N/A N/A 5.33 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Premier American Portfolios
- ----------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 3 8/22/95 N/A 19.88 105.10 23.82
- ----------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 4 1/8/97 N/A 16.93 58.58 26.25
- ----------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 5 4/2/98 N/A N/A 0.41 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 6 9/11/98 N/A N/A 15.27 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Western
- ----------------------------------------------------------------------------------------------------------------------------
Western Premier Portfolio 2/5/98 N/A N/A 38.60 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Year-Ahead
- ----------------------------------------------------------------------------------------------------------------------------
Year-Ahead Domestic Series 98A 12/9/97 N/A 21.94 21.69 20.34
- ----------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL
- ----------------------------------------------------------------------------------------------------------------------------
Europe
- ----------------------------------------------------------------------------------------------------------------------------
European Monetary Union Portfolio 5/13/98 N/A N/A 3.95% N/A
- ----------------------------------------------------------------------------------------------------------------------------
International
- ----------------------------------------------------------------------------------------------------------------------------
Premier World Portfolio 8/7/97 N/A 29.17 25.15 17.38
- ----------------------------------------------------------------------------------------------------------------------------
Year-Ahead International Series 98A 12/10/97 N/A 0.48 -1.19 -1.13
- ----------------------------------------------------------------------------------------------------------------------------
SECTOR
- ----------------------------------------------------------------------------------------------------------------------------
Financial
- ----------------------------------------------------------------------------------------------------------------------------
Financial Focus Portfolio 1 9/17/97 N/A -4.97 4.57 3.53
- ----------------------------------------------------------------------------------------------------------------------------
Financial Focus Portfolio 2 4/9/98 N/A N/A -20.21 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Health Care
- ----------------------------------------------------------------------------------------------------------------------------
Health Care Trust Series 2 1/24/95 N/A 31.65 116.13 21.62
- ----------------------------------------------------------------------------------------------------------------------------
Health Care Focus Series 3 4/9/98 N/A N/A -2.59 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Real Estate
- ----------------------------------------------------------------------------------------------------------------------------
Cohen & Steers Realty Majors Portfolio 4/23/98 N/A N/A -8.84 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Real Estate Income Fund Series 1 6/15/94 8/14/98 N/A 40.71 8.54
- ----------------------------------------------------------------------------------------------------------------------------
Real Estate Income Fund Series 2 6/25/96 N/A -10.29 33.68 12.22
- ----------------------------------------------------------------------------------------------------------------------------
Real Estate Income Fund Series 3 10/30/98 N/A N/A -4.04 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Socially Responsible
- ----------------------------------------------------------------------------------------------------------------------------
Principled Values Portfolio 1 1/8/98 N/A N/A 21.21 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Principled Values Portfolio 2 6/11/98 N/A N/A 2.15 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Telecommunications
- ----------------------------------------------------------------------------------------------------------------------------
Telecommunications Series 2 10/13/93 2/12/98 N/A 72.93 13.45
- ----------------------------------------------------------------------------------------------------------------------------
Tele-Global Trust 2 2/14/96 N/A 62.42 117.96 31.02
- ----------------------------------------------------------------------------------------------------------------------------
Tele-Global Trust 3 2/6/98 N/A N/A 49.81 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Tele-Global Trust 4 8/13/98 N/A N/A 14.55 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Technology
- ----------------------------------------------------------------------------------------------------------------------------
Technology Portfolio 8/25/98 N/A N/A 30.72 N/A
- ----------------------------------------------------------------------------------------------------------------------------
Utilities 5YR TTL. RTN 5YR. AAR
- ----------------------------------------------------------------------------------------------------------------------------
14th Utility Stock Series 65.38% 10.58% 10/5/89 N/A 8.46 176.42 11.63
- ----------------------------------------------------------------------------------------------------------------------------
15th Utility Stock Series 62.51 10.19 6/4/92 N/A 7.72 98.39 10.98
- ----------------------------------------------------------------------------------------------------------------------------
Utility Portfolio Series 1 N/A N/A 6/18/98 N/A N/A 5.10 N/A
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Past Performance is no guarantee of future results.
Return figures represent changes in unit price plus reinvestment of income and
principal distributions (net of all fund expenses and sales charges), divided
by the initial public offering price.
(*) These figures represent latest 10 years rather than since inception.
(+) S & P Industry Turnaround Portfolios are part of the Select family
of funds.
<TABLE>
FIXED-INCOME
For Periods Ending December 31, 1998 (reflecting all expenses)
1 YEAR TOTAL 5 YEAR TOTAL 5 YEAR AVG. 10 YEAR TOTAL 10 YEAR AVG.
RETURN RETURN ANNUAL RETURN RETURN ANNUAL RETURN
MUNICIPAL FUNDS
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LONG HIGH 7.51% 6.51% 37.21% 29.76% 6.53% 5.35% 113.04 101.45 7.85% 7.25%
TERM AVG. 5.90 2.76 31.02 24.89 5.54 4.54 109.17 97.86 7.65 7.06
SERIES LOW 3.55 0.56 25.86 19.95 4.70 3.70 106.82 95.64 7.53 6.94
(1/26/88-
9/26/96)(*)
LONG- HIGH 7.49 7.49 40.95 36.26 7.10 6.38 N/A N/A N/A N/A
INTERME AVG. 5.91 3.64 33.48 28.47 5.94 5.13 N/A N/A N/A N/A
DIATE LOW 3.19 1.83 28.67 23.57 5.17 4.32 N/A N/A N/A N/A
TERM
SERIES
(10-Year)
(8/9/88-
10/18/96)(*)
INSURED HIGH 7.73 4.95 36.00 28.61 6.34 5.16 107.66 96.41 7.58 6.98
SERIES AVG. 5.78 2.64 30.05 23.77 5.39 4.35 105.34 94.23 7.46 6.86
(1/5/88- LOW 3.61 0.35 25.17 20.01 4.59 3.71 103.18 92.19 7.34 6.75
10/17/96)(*)
SHORT- HIGH 5.86 4.05 31.09 27.33 5.56 4.95 N/A N/A N/A N/A
INTERME AVG. 4.87 3.45 27.81 23.65 5.03 4.33 N/A N/A N/A N/A
DIATE LOW 3.98 2.80 25.45 21.40 4.64 3.95 N/A N/A N/A N/A
TERM
SERIES
(5-Year)
(3/11/92-
10/3/96)(*)
STATE FUNDS
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
CALIFOR HIGH 7.72% 4.90% 35.17% 27.82% 6.21% 5.03% 105.90 94.75% 7.48% 6.89%
NIA AVG. 5.81 2.54 29.64 23.43 5.32 4.30 105.48 94.33 7.46 6.87
SERIES LOW 3.45 0.60 24.81 19.94 4.53 3.70 104.87 93.71 7.43 6.83
(6/22/88-
9/27/96)(*)
FLORIDA HIGH 8.13 5.55 34.34 27.39 6.08 4.96 106.96 95.72 7.54 6.94
SERIES AVG. 5.74 2.68 29.36 23.13 5.28 4.25 104.17 93.09 7.40 6.80
(4/20/88- LOW 3.18 -0.10 25.02 19.78 4.56 3.67 102.02 90.97 7.28 6.68
9/13/96)(*)
NEW HIGH 7.57 5.43 33.31 26.14 5.91 4.75 107.96 96.67 7.59 6.99
JERSEY AVG. 5.70 2.81 28.84 22.66 5.19 4.17 105.43 94.52 7.46 6.87
SERIES LOW 3.85 0.74 24.48 19.32 4.47 3.59 103.02 92.04 7.33 6.74
(3/30/88-
9/19/96)(*)
NEW HIGH 8.20 5.93 34.42 27.79 6.09 5.02 118.55 106.72 8.13 7.53
YORK AVG. 6.01 2.83 29.32 23.19 5.27 4.25 112.55 101.03 7.83 7.23
SERIES LOW 4.11 0.35 25.16 19.42 4.59 3.61 108.93 97.55 7.64 7.04
(1/14/88-
10/16/96)(*)
PENNSYL HIGH 7.05 4.04 34.61 27.30 6.12 4.94 110.02 98.63 7.70 7.10
VANIA AVG. 5.59 2.50 29.08 22.92 5.23 4.21 107.74 96.47 7.58 6.98
SERIES LOW 2.04 0.37 24.30 19.03 4.44 3.54 105.10 94.01 7.44 6.85
(5/19/88-
9/13/96)(*)
CORPORATE FUNDS
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
LONG HIGH 10.72% 4.73% 49.02% 42.36% 8.30% 7.325 N/A N/A N/A N/A
TERM AVG. 7.78 1.97 43.38 35.85 7.46 6.31 N/A N/A N/A N/A
SERIES LOW 2.52 -2.98 38.48 31.22 6.72 5.58 N/A N/A N/A N/A
(11/2/88-
10/1/96)(*)
INTERM- HIGH 11.09 5.89 43.52 37.84 7.49 6.63 N/A N/A N/A N/A
EDIATE AVG. 8.89 3.81 40.63 34.11 7.05 6.04 N/A N/A N/A N/A
SERIES LOW 5.30 0.43 38.14 31.71 6.67 5.66 N/A N/A N/A N/A
(6/27/90)(*)
INSURED HIGH 10.40 4.42 48.94 42.35 8.29 7.31 N/A N/A N/A N/A
SERIES AVG. 8.65 2.79 43.00 35.42 7.41 6.24 N/A N/A N/A N/A
(5/23/91- LOW 7.07 1.31 37.03 29.65 6.50 5.33 N/A N/A N/A N/A
8/7/96)(*)
</TABLE>
Past Performance is no guarantee of future results. Total Return figures
represent price changes plus distributions reinvested in the related
Investment Accumulation Program, divided by net asset value (for calculations
without sales charge) and by the initial public offering price (for
calculations with sales charge). High figures represent the individual series
with the highest performance among these series. Low figures represent the
series with the lowest performance and average figures are the aggregate
performance of all series divided by the number of those series. The sales
charge for these series was reduced in August 1998. The average sales charge
included in these figures will be stated in prospectuses for the new series.
(*) Inception dates included in average figure. Series terminated prior to
12/31/98 are not included.
The following are important facts to keep in mind when considering these
investments.
Please read them carefully before you invest or send money.
There can be no assurance that any Portfolio will meet its objective.
Equity Portfolios are designed for investors who can assume the risks
associated with equity investments, and may not be appropriate for those
seeking capital preservation or high current income.
Several Portfolios are composed of aggressive growth stocks that are subject
to extreme price volatility. These Portfolios may be considered speculative.
No single Defined Asset Fund should be considered a complete investment
program.
The value of your investment fluctuates with the prices of the securities held
by the Fund. The amount you receive when you sell may be more or less than
your original cost. Security prices depend, among other factors, on the
financial condition of the issuer and general market factors. Bond prices
vary inversely with changes in interest rates; even on government and insured
bonds, while credit risk is minimal, market risk remains.
Except for regular federal income tax (and in some cases state and local
personal income taxes) on Municipal Funds, income and any gain is subject to
tax each year, whether or not these amounts are reinvested.
Defined Asset Funds(SM)
Buy With Knowledge o Hold With Confidence
A prospectus containing more complete information on any Defined Asset Fund
including risks, sales charges and expenses is available.
Please read it carefully before you invest or send money.
Your Financial Consultant will be happy to answer any questions you may have.
The information in this brochure is not complete and may be changed. We may
not sell the securities of the next Portfolio until the registration statement
filed with the Securities and Exchange Commission is effective. This brochure
is not an offer to sell these securities and is not soliciting an offer to buy
these securities in any state where the offer or sale is not permitted.
32700BR-2/99
[Copyright] 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC.
EQUITY INVESTOR FUNDS
Select Series
Defined Technology Portfolio(SM)
Principled Values Portfolio(SM)
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Select Growth Portfolio
Select S&P Industrial Portfolio
Select S&P Industry Turnaround Portfolio
Select Standard & Poor's Intrinsic Value Portfolio
Concept Series
Health Care Trust
(Pharmeceutical & Biotechnology Portfolio)
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Western Premier Portfolio
Focus Series
European Monetary Union Portfolio
Financial Portfolio
Year-Ahead Domestic Portfolio
Year-Ahead International Portfolio
Index Series
S&P 500 Trust
S&P MidCap Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds