Defined Asset Funds[SM]
Defined Performance
As of September 30, 1998
[ML Logo] Merrill Lynch
Defined Asset Funds(SM) are defined portfolios of securities. They can be a
convenient and cost-efficient way for you to invest in stocks and bonds with
reduced risk through diversification and professional selection.
Buy With Knowledge. Hold With Confidence.
When you buy a Defined Asset Fund, you are investing in a pre-defined
portfolio. Its securities and attributes are printed right in the prospectus.
So you know exactly where your money is being invested.
The portfolios follow disciplined strategies or are selected by our
experienced buyers and market analysts with access to extensive research.
Our philosophy is to buy quality investments and hold them, rather than trying
to time the market. Our funds are not managed, nor do you pay a management
fee. We do monitor each fund's holdings on an ongoing basis-so you can hold
this investment with confidence.
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, please contact your Merrill Lunch Financial Consultant.
Defined Advantages
Ongoing Supervision
Our funds are not actively managed; however, 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 may also 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 net
asset value at that time. The price you receive may be more or less than your
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 4-5
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. 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
Investment (Portfolio) Poor's Industrial o Select S&P Portfolio
Trusts/Defined o S&P 500 Index Portfolio Intrinsic Value o Select Growth
Municipal Funds Trust o Premier American Portfolio Portfolio
o United States Portfolio o Premier World
Treasury Strategy o Select Ten Portfolio
Trust Portfolio (DJIA)* o Standard & Poor's
o GNMA Series MidCap Index
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 situation.
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.
Select Year-Ahead Domestic Portfolio
Companies selected for growth potential by Merrill Lynch Global Research.
S&P 500 Trust and S&P MidCap 400 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.
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.
Select Year-Ahead International Portfolio
International stocks recommended by Merrill Lynch Research from 17 non-U.S.
countries.
SECTOR EQUITIES
Cohen & Steers Realty Majors Portfolio
28 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 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
Intermediate
Diversified quality corporate bonds.
Intermediate Insured
AAA rated. Diversified portfolio of corporate bonds. Insured against credit
risk.(Section )
Long Term
A rated of better. Diversified corporate bonds.
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" 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 Portfolio is 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 GOAL PORTFOLIO STYLE
- ----------------------------------------------------------------------------------------------------
DOMESTIC
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Low Five Portfolio* 5 1/2 Years LARGE CAP/CAPITAL
PRESERVATION
- ----------------------------------------------------------------------------------------------------
Premier American Portfolio 2 Years LARGE CAP GROWTH
- ----------------------------------------------------------------------------------------------------
Principled Values Portfolio 1 Year LARGE CAP GROWTH
- ----------------------------------------------------------------------------------------------------
Select Growth Portfolio 1 Year MID CAP GROWTH
- ----------------------------------------------------------------------------------------------------
Select S&P Industrial 1 Year GROWTH & VALUE
Portfolio
- ----------------------------------------------------------------------------------------------------
Select S&P Industry 2 Years LARGE CAP
Turnaround Portfolio
- ----------------------------------------------------------------------------------------------------
Select Standard & Poor's 1 Year LARGE CAP GROWTH
Intrinsic Value Portfolio
- ----------------------------------------------------------------------------------------------------
Select Ten Portfolio (DJIA) 1 Year LARGE CAP VALUE
- ----------------------------------------------------------------------------------------------------
Select Year-Ahead 1 Year LARGE CAP GROWTH
Domestic Portfolio
- ----------------------------------------------------------------------------------------------------
S&P 500 Trusts Perpetual LARGE CAP
- ----------------------------------------------------------------------------------------------------
S&P MidCap 400 Trusts Perpetual MID CAP
- ----------------------------------------------------------------------------------------------------
Western Premier Portfolio 2 Years LARGE CAP GROWTH
- ----------------------------------------------------------------------------------------------------
INTERNATIONAL
- ----------------------------------------------------------------------------------------------------
European Monetary Union 2 Years INTERNATIONAL
Portfolio
- ----------------------------------------------------------------------------------------------------
Premier World Portfolio 2 Years INTERNATIONAL
- ----------------------------------------------------------------------------------------------------
Select Ten United Kingdom 1 Year INTERNATIONAL
Portfolio
- ----------------------------------------------------------------------------------------------------
Select Year-Ahead International Portfolio 1 Year INTERNATIONAL
- ----------------------------------------------------------------------------------------------------
SECTOR
- ----------------------------------------------------------------------------------------------------
Cohen & Steers Realty 3 Years SECTOR
Majors Portfolio
- ----------------------------------------------------------------------------------------------------
Defined Technology 1 Year SECTOR
Portfolio
- ----------------------------------------------------------------------------------------------------
Financial Portfolio 2 Years SECTOR
- ----------------------------------------------------------------------------------------------------
Health Care Portfolio 2 Years SECTOR
- ----------------------------------------------------------------------------------------------------
Real Estate Income Fund 2 Years SECTOR
- ----------------------------------------------------------------------------------------------------
Tele-Global Trust 2 Years SECTOR
- ----------------------------------------------------------------------------------------------------
Utility Portfolio 2 Years SECTOR
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FIXED-INCOME PORTFOLIOS
- ---------------------------------------------------------------------------------------------------------------
AVERAGE MATURITY INVESTMENT GOAL
- ---------------------------------------------------------------------------------------------------------------
CORPORATE INCOME FUNDS
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Long Term and Insured Corporate Income Funds A or A- 30 Years $
- ---------------------------------------------------------------------------------------------------------------
Intermediate Corporate Income Funds 10 Years $
- ---------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES INCOME FUNDS
- ---------------------------------------------------------------------------------------------------------------
U. S. Treasury Strategy Trust 21 Years $
- ---------------------------------------------------------------------------------------------------------------
GNMA Series 12 Years $
- ---------------------------------------------------------------------------------------------------------------
10 Year Laddered Trust 10 Years $
- ---------------------------------------------------------------------------------------------------------------
5 Year Laddered Trust 5 Years $
- ---------------------------------------------------------------------------------------------------------------
MUNICIPAL FUNDS
- ---------------------------------------------------------------------------------------------------------------
Municipal Investment Trust Insured Series 20 to 35 Years $
- ---------------------------------------------------------------------------------------------------------------
Municipal Investment Trust National Series 15 to 30 Years $
- ---------------------------------------------------------------------------------------------------------------
Municipal Investment Trust State Series 20 to 35 Years $
- ---------------------------------------------------------------------------------------------------------------
Municipal Investment Trust Investment Grade Series 12 to 17 Years $
- ---------------------------------------------------------------------------------------------------------------
Municipal Defined Fund 15 to 30 Years $
- ---------------------------------------------------------------------------------------------------------------
Municipal Investment Trust Intermediate State Series 10 to 13 Years $
- ---------------------------------------------------------------------------------------------------------------
Municipal Investment Trust Intermediate Series 5 & 10 Year Series 5 or 10 Years $
- ---------------------------------------------------------------------------------------------------------------
</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.
EQUITIES
The Select Series includes portfolios that invest in specific strategies, most
of which 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 September 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
AVERAGE
CUMULATIVE ANNUAL MOST RECENTLY
SELECT INCEPTION TOTAL TOTAL COMPLETED PORTFOLIO
SERIES DATE RETURN RETURN Offer to End Date Return
- --------------------------------------------------------------------------------------------------------
SELECT TEN PORTFOLIOS - DJIA
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Series B 5/17/91 182.65% 15.12% 5/27/97-6/30/98 11.29%
- --------------------------------------------------------------------------------------------------------
Series A 1/3/92 149.91 14.54 1/27/97-2/27/98 18.90
- --------------------------------------------------------------------------------------------------------
Series C 9/1/92 168.30 17.62 9/17/96-10/24/97 28.52
- --------------------------------------------------------------------------------------------------------
Series 3 7/22/96 41.43 17.13 7/28/97-8/28/98 1.59
- --------------------------------------------------------------------------------------------------------
Series 5 11/1/96 27.74 13.66 11/1/96-12/12/97 25.85
- --------------------------------------------------------------------------------------------------------
Series J 1/2/97 15.51 8.63 1/2/97-1/30/98 12.87
- --------------------------------------------------------------------------------------------------------
Series 1 2/25/97 8.48 5.24 2/25/97-3/27/98 19.38
- --------------------------------------------------------------------------------------------------------
Series 2 4/28/97 14.92 10.25 4/28/97-6/5/98 24.49
- --------------------------------------------------------------------------------------------------------
Series 4 9/3/97 2.36 2.19 N/A N/A
- --------------------------------------------------------------------------------------------------------
SELECT S&P INDUSTRIAL PORTFOLIOS
- --------------------------------------------------------------------------------------------------------
Series A 1/22/97 20.10% 11.46% 1/22/97-3/13/98 31.43%
- --------------------------------------------------------------------------------------------------------
Series B 2/24/97 20.80 12.56 2/24/97-4/24/98 22.96
- --------------------------------------------------------------------------------------------------------
Series C 4/21/97 31.55 20.91 4/21/97-5/22/98 35.59
- --------------------------------------------------------------------------------------------------------
Series D 6/9/97 10.12 7.64 6/9/97-7/17/98 19.39
- --------------------------------------------------------------------------------------------------------
Series E 7/21/97 5.59 4.66 7/21/97-8/21/98 8.25
- --------------------------------------------------------------------------------------------------------
Series F 9/8/97 8.23 7.74 N/A N/A
- --------------------------------------------------------------------------------------------------------
SELECT GROWTH PORTFOLIOS
- --------------------------------------------------------------------------------------------------------
Series A 2/14/95 65.24% 14.85% 2/10/97-3/13/98 33.77%
- --------------------------------------------------------------------------------------------------------
Series B 6/6/95 35.02% 9.46 5/12/97-6/19/98 32.10
- --------------------------------------------------------------------------------------------------------
Series C 8/1/95 -31.08% -11.09 8/18/97-9/18/98 -23.74
- --------------------------------------------------------------------------------------------------------
Series D 11/1/95 15.97% 5.21 11/12/96-12/19/97 21.25
- --------------------------------------------------------------------------------------------------------
SELECT S&P INTRINSIC VALUE PORTFOLIOS
- --------------------------------------------------------------------------------------------------------
Series C 11/21/96 6.54% 3.47% 11/21/96-12/19/97 7.08%
- --------------------------------------------------------------------------------------------------------
Series A 4/2/97 9.57 6.30 4/2/97-5/15/98 32.93
- --------------------------------------------------------------------------------------------------------
Series B 8/6/97 -24.21 -21.40 8/6/97-9/2/98 -8.51
- --------------------------------------------------------------------------------------------------------
SELECT TEN UNITED KINGDOM PORTFOLIOS
- --------------------------------------------------------------------------------------------------------
Series B 6/21/93 33.39% 5.61% 5/27/97-6/30/98 31.56%
- --------------------------------------------------------------------------------------------------------
Series C 9/28/93 32.17 5.73 9/17/96-10/24/97 22.15
- --------------------------------------------------------------------------------------------------------
Series A 1/5/94 19.51 3.83 1/27/97-2/27/98 16.97
- --------------------------------------------------------------------------------------------------------
Series 3 7/22/96 27.08 11.55 7/28/97-8/28/98 19.78
- --------------------------------------------------------------------------------------------------------
Series 5 11/1/96 11.85 6.03 11/1/96-12/12/97 18.50
- --------------------------------------------------------------------------------------------------------
Series 1 2/25/97 11.00 6.77 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 rollovers and
different performance periods. Past returns are no guarantee of future
performance.
Growth of $10,000 in the Select Ten Portfolio Series B from 5/17/91-9/30/98
[A bar graph compares the cumulative annual performance from 5/17/91 through
9/30/98. The horizontal (X) axis shows the cumulative annual performance by
year, from 5/17/91 through 9/30/98. The vertical (Y) axis reflects the dollar
amount value for each year from 5/17/91 through 9/30/98.]
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
9/30/98 28,265
NOTE: Above returns represent price changes plus dividends reinvested and
reflect the maximum applicable sales charge and expenses.
Equity Prices can be tracked in Barron's Financial Weekly.
EQUITIES
Performance from Inception through September 30, 1998
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN SINCE INCEPTION DATE
INCEPTION END ------------------ ---------------------------
DATE DATE YTD 1 YEAR TTL. RTN. AVG. ANN. RTN.
- -------------------------------------------------------------------------------------------------------------------------
DOMESTIC
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
S&P Index Trusts 5YR TTL. RTN 5YR. AAR
- -------------------------------------------------------------------------------------------------------------------------
500 Index Trust 1* 139.57% 19.08% 5/26/83 N/A 3.57% 6.51% 362.68% 16.54%
- -------------------------------------------------------------------------------------------------------------------------
500 Index Trust 2 140.40 19.16 2/19/92 N/A 3.54 6.49 180.72 16.88
- -------------------------------------------------------------------------------------------------------------------------
400 Midcap Trust 81.47 12.65 2/19/92 N/A -9.28 -8.64 116.29 12.37
- -------------------------------------------------------------------------------------------------------------------------
S&P Industry Turnaround Portfolios+
- -------------------------------------------------------------------------------------------------------------------------
Industry Turnaround Series 1 11/21/97 N/A -8.11 N/A -5.15 N/A
- -------------------------------------------------------------------------------------------------------------------------
Industry Turnaround Series 2 4/3/98 N/A N/A N/A -28.96 N/A
- -------------------------------------------------------------------------------------------------------------------------
Premier American Portfolios
- -------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 1++ 6/23/86 6/21/91 N/A N/A 101.49 13.99
- -------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 2++ 12/16/87 2/5/93 N/A N/A 101.62 13.59
- -------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 3 8/22/95 N/A 1.67 -0.77 73.94 19.48
- -------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 4 1/8/97 N/A 0.76 N/A 36.65 19.83
- -------------------------------------------------------------------------------------------------------------------------
Blue Chip Series 5 4/2/98 N/A N/A N/A -14.13 N/A
- -------------------------------------------------------------------------------------------------------------------------
Western
- -------------------------------------------------------------------------------------------------------------------------
Western Premier Portfolio 2/5/98 N/A N/A N/A 12.75 N/A
- -------------------------------------------------------------------------------------------------------------------------
Year-Ahead
- -------------------------------------------------------------------------------------------------------------------------
Year-Ahead Domestic Series 98A+ 12/9/97 N/A 1.76 N/A 1.55 N/A
- -------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL
- -------------------------------------------------------------------------------------------------------------------------
Europe
- -------------------------------------------------------------------------------------------------------------------------
European Monetary Union Portfolio 5/13/98 N/A N/A N/A -15.66% N/A
- -------------------------------------------------------------------------------------------------------------------------
International
- -------------------------------------------------------------------------------------------------------------------------
Premier World Portfolio 8/7/97 N/A 2.32% -2.39% -0.86 -0.75%
- -------------------------------------------------------------------------------------------------------------------------
Year-Ahead International Series A+ 12/10/97 N/A -15.70 N/A -17.10 N/A
- -------------------------------------------------------------------------------------------------------------------------
SECTOR
- -------------------------------------------------------------------------------------------------------------------------
Financial
- -------------------------------------------------------------------------------------------------------------------------
Financial Focus Portfolio 1 9/17/97 N/A -14.74% N/A -6.18% -5.98%
- -------------------------------------------------------------------------------------------------------------------------
Financial Focus Portfolio 2 4/9/98 N/A N/A N/A -28.76 N/A
- -------------------------------------------------------------------------------------------------------------------------
Health Care
- -------------------------------------------------------------------------------------------------------------------------
Health Care Series 1++ 2/13/90 1/25/95 N/A N/A 175.42 22.83
- -------------------------------------------------------------------------------------------------------------------------
Health Care Series 2 1/24/95 N/A 14.49 18.40 87.95 18.68
- -------------------------------------------------------------------------------------------------------------------------
Health Care Series 3 4/9/98 N/A N/A N/A -16.18 N/A
- -------------------------------------------------------------------------------------------------------------------------
Real Estate
- -------------------------------------------------------------------------------------------------------------------------
Cohen & Steers Realty Majors Portfolio 4/23/98 N/A N/A N/A -8.45 N/A
- -------------------------------------------------------------------------------------------------------------------------
Real Estate Income Fund Series 1 6/15/94 8/14/98 N/A N/A 40.71 8.54
- -------------------------------------------------------------------------------------------------------------------------
Real Estate Income Fund Series 2 6/25/96 N/A -11.09 -9.34 32.50 13.22
- -------------------------------------------------------------------------------------------------------------------------
Socially Responsible
- -------------------------------------------------------------------------------------------------------------------------
Principled Values Portfolio 1 1/8/98 N/A N/A N/A 4.03 N/A
- -------------------------------------------------------------------------------------------------------------------------
Principled Values Portfolio 2 6/11/98 N/A N/A N/A -18.66 N/A
- -------------------------------------------------------------------------------------------------------------------------
Telecommunications
- -------------------------------------------------------------------------------------------------------------------------
Telecommunications Series 1++ 1/22/91 12/22/95 N/A N/A 71.09 11.54
- -------------------------------------------------------------------------------------------------------------------------
Telecommunications Series 2 10/13/93 2/12/98 N/A N/A 72.93 13.46
- -------------------------------------------------------------------------------------------------------------------------
Tele-Global Trust 2 2/14/96 N/A 16.72 19.28 56.63 18.62
- -------------------------------------------------------------------------------------------------------------------------
Tele-Global Trust 3 2/6/98 N/A N/A N/A 10.53 N/A
- -------------------------------------------------------------------------------------------------------------------------
Utilities
- -------------------------------------------------------------------------------------------------------------------------
14th Utility Stock Series 10/5/89 N/A 5.50 22.59 168.87 11.63
- -------------------------------------------------------------------------------------------------------------------------
15th Utility Stock Series 6/4/92 N/A 5.66 24.11 94.59 11.10
- -------------------------------------------------------------------------------------------------------------------------
Utility Portfolio 6/18/98 N/A N/A N/A 2.25 N/A
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
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.
* The Total Return and Average Total Return for S&P Index Trust 1--since
inception, actually represents ten years of performance.
+ Year-Ahead Portfolios and Standard & Poor's Industry Turnaround
Portfolios are part of the Select family of funds.
++ Return figures for Blue Chip Series 1 & 2, Health Care Series 1 and
Telecommunications Series 1 assumes dividends were added rather
than reinvested, and does not include sales charges.
FIXED-INCOME
For Periods Ending September 30, 1998 (reflecting all expenses)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
1 YEAR 5 YEAR 5 YEAR AVG. 10 YEAR 10 YEAR AVG.
TOTAL TOTAL ANNUAL TOTAL ANNUAL
RETURN RETURN RETURN RETURN 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 Term HIGH 11.32% 7.06% 37.03% 30.76% 6.50% 5.51% 119.84 107.96% 8.19% 7.59%
Series
(1/26/88-
9/26/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.81 4.42 32.19 25.98 5.73 4.72 116.19 104.60 8.01 7.42
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 4.28 2.58 28.11 22.03 5.08 4.06 113.37 101.84 7.87 7.27
- -----------------------------------------------------------------------------------------------------------------------------------
Long- HIGH 9.82 7.83 44.67 39.80 7.66 6.93 N/A N/A N/A N/A
Intermediate
Term Series
(10-Year)
(8/9/88-
10/18/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.23 4.90 35.82 30.65 6.31 5.49 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 4.26 2.96 30.28 25.12 5.43 4.58 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Insured HIGH 11.22 6.13 36.40 28.99 6.40 5.22 115.20 105.10 7.96 7.44
Series
(1/5/88-
10/17/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.57 4.17 30.51 24.20 5.46 4.43 113.50 102.15 7.88 7.29
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 3.07 0.91 26.52 20.96 4.81 3.88 111.82 100.37 7.79 7.19
- -----------------------------------------------------------------------------------------------------------------------------------
Short- HIGH 7.67 6.01 33.94 30.09 6.02 5.40 N/A N/A N/A N/A
Intermediate
Term Series
(5-Year)
(9/20/91-
10/3/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 5.79 4.25 30.17 26.03 5.41 4.73 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 4.73 3.14 26.25 21.99 4.77 4.05 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
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
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California HIGH 11.50% 6.54% 34.78% 28.05% 6.15% 5.07% 116.98% 105.24% 8.05% 7.45%
(3/30/88-
9/27/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.66 4.38 30.04 23.92 5.39 4.38 114.21 102.80 7.91 7.32
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 4.39 2.62 26.12 20.77 4.75 3.84 109.67 100.26 7.68 7.19
- -----------------------------------------------------------------------------------------------------------------------------------
Florida HIGH 11.75 6.79 35.24 27.86 6.22 5.03 N/A N/A N/A N/A
(4/20/88-
12/6/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.49 4.12 30.03 23.71 5.39 4.34 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 4.00 2.01 26.50 20.55 4.81 3.81 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey HIGH 10.78 5.85 33.09 25.85 5.88 4.70 113.58 102.03 7.88 7.28
(3/30/88-
8/1/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.29 4.15 29.34 23.04 5.28 4.23 112.03 100.54 7.80 7.20
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 4.52 3.11 26.08 20.46 4.74 3.79 110.43 99.05 7.72 7.12
- -----------------------------------------------------------------------------------------------------------------------------------
New York HIGH 11.62 6.94 34.00 29.23 6.02 5.26 125.51 113.31 8.47 7.87
(1/14/88-
9/11/97)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.72 4.47 30.33 24.08 5.44 4.41 118.01 106.37 8.10 7.51
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 4.79 2.18 26.20 20.59 4.76 3.81 115.02 103.66 7.95 7.37
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania HIGH 10.73 6.45 34.33 28.13 6.08 5.08 114.66 102.98 7.93 7.33
(3/4/88-
9/11/97)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 7.24 3.97 29.79 23.54 5.35 4.31 113.20 102.04 7.86 7.28
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 3.61 2.42 26.20 20.04 4.76 3.72 111.27 100.95 7.76 7.22
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
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
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Long Term HIGH 16.20% 9.91% 46.07% 39.52% 7.87% 6.88% N/A N/A N/A N/A
Series
(9/23/93-
10/1/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 12.08 6.04 41.80 34.21 7.23 6.06 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 6.66 0.93 38.91 31.36 6.79 5.60 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Intermediate HIGH 14.44 9.09 42.35 35.69 7.31 6.29 N/A N/A N/A N/A
Series
(9/15/93-
4/9/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 11.22 6.03 39.03 32.59 6.81 5.80 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 7.93 2.91 37.10 30.73 6.51 5.50 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Insured HIGH 16.24 9.95 45.19 38.68 7.74 6.76 N/A N/A N/A N/A
Series
(9/16/93-
8/7/96)
- -----------------------------------------------------------------------------------------------------------------------------------
AVG. 12.53 6.47 39.69 32.50 6.90 5.78 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
LOW 8.59 2.72 33.77 28.23 5.99 5.10 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance is no guarantee of future results. Total Return figures,
shown both with and without sales charges represent changes in unit price with
distributions reinvested in the related Investment Accumulation Program,
divided by the initial public offering price, for calculations with sales
charge and divided by Net Asset Value for calculations without sales charge.
High figures are for the individual series with the highest performance among
these series. Low figures are for the series with the lowest performance and
average figures are the aggregate performance of all series divided by the
number of recorded 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 new series.
The following are important facts to keep in mind when considering these
investments.
Please read them carefully before you invest.
There can be no assurance that any Portfolio will meet its objective.
Many of the Portfolios are designed for investors who can assume the risks
associated with equity investments, and may not be appropriate for investors
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 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, 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-11/98
[Copyright logo] 1998 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC.
EQUITY INVESTOR FUNDS
Select Series
Defined Technology Portfolio
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
Cohen & Steers Realty Majors(SM) Portfolio
Premier American Portfolio
Premier World Portfolio
Tele-Global Trust
Utility Portfolio
Western Premier Portfolio
Focus Series
European Monetary Union Portfolio
Financial Portfolio
Health Care Portfolio
Year-Ahead Domestic Portfolio
Year-Ahead International Portfolio
Index Series
S&P 500 Index Trust
S&P MidCap Index Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
