Defined Asset Funds(sm)
As of March 31, 1999
Defined Performance
[ML Logo] Merrill Lynch
Defined Asset FundsSM 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 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 valuable 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 Lynch 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 return.
<PAGE>
Low Expenses
Although units are subject to sales charges, annual operating expenses are low.
What's more, sales charge 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 among various securities, 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 Funds..............................8
OUR FAMILY OF DEFINED PORTFOLIOS
Defined Asset Funds(sm)
Buy With Knowledge. Hold With Confidence
Portfolios to fit various levels of risk tolerance.
2
<PAGE>
[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 Income o Western Premier o Tele-Global Trust o Financial Portfolio
Funds Fund o Select Large-Cap o Select Ten United o Technology
o Laddered Treasury o Utility Portfolio Growth Kingdom PortfolioSM
Trusts o Baby Boom Economy o Select Principled o Year-Ahead o Biotechnology
o Municipal Investment (Accumulating ValuesSM International Portfolio
Trusts/Defined Assets) o Select Standard & o Select S&P Intrinsic o Health Care Trust
Municipal Funds o Baby Boom Economy Poor's Industrial+ Value+ (Pharmaceutical &
o United States (Adding Income) o Premier American o Premier World Biotechnology
Treasury Strategy o Cohen & Steers o Select Ten (DJIA)* o Standard & Poor's Portfolio)
Trust Realty MajorsSM MidCap Trust+ o Select Growth
o GNMA Series o S&P 500 Trust+ o Baby Boom Economy Portfolio
(Adding Growth)
o European Monetary
Union
o Year-Ahead Domestic
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.
3
<PAGE>
DOMESTIC EQUITIES
Baby Boom Economy PortfoliosSM
Three defined portfolios with growth potential, income potential and asset
allocation within "Boomer-Driven" economic trends.
Low Five Portfolio
For growth potential with principal protection. Features call options
representing five Dow Jones Industrial Average* 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 Large-Cap Growth Portfolio
Seeks to achieve capital appreciation by applying a quantitative selection
model to the Russell 1000 Growth Index.
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 Standard & Poor's 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 MidCap indices.
4
<PAGE>
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 European Monetary Union 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 Ordinary Share
Index (FT Index).
Year-Ahead International Portfolio
International stocks recommended by Merrill Lynch Research from a variety of
non-U.S. countries.
SECTOR EQUITIES
Biotechnology Portfolio
Capital appreciation by investing in stocks selected by Merrill Lynch Research
within the Biotechnology sector.
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 (Pharmaceutical & Biotechnology Portfolio) 31 stocks which
seek to capitalize on the innovations in the Pharmaceutical and Biotechnology
sectors.
5
<PAGE>
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 Defined Funds Research believes
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 possibly triple tax-free income.
Insured Series
AAA rated. Federal tax-free income.++ Portfolio bonds are guaranteed against
credit risk, but not market risk.+++
Insured Taxable Series
AAA rated. Diversified portfolio bonds are guaranteed against credit risk, but
not market risk.+++
Corporate Income Funds
Insured
AAA rated. Diversified portfolio of corporate bonds. Insured against credit
risk.+++
Intermediate
Diversified quality corporate bonds rated A or better.
Long Term
Diversified corporate bonds rated A or better.
Government Securities Income Funds
6
<PAGE>
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.
++ Some of the income in the Intermediate Series and all the income in the AMT
Series may be subject to federal alternative minimum tax. Income may also be
subject to state and local taxes.
+++Insurance does not remove market risk.
7
<PAGE>
EQUITY PORTFOLIOS
<TABLE>
INVESTMENT SELECTION
TERM OF FUND GOAL PORTFOLIO STYLE METHODOLOGY
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DOMESTIC
Baby Boomer Portfolio 1 Year X BALANCED FUNDAMENTAL
(Accumulating Assets) RESEARCH
Baby Boomer Portfolio 1 Year ^ GROWTH FUNDAMENTAL
(Adding Growth) RESEARCH
Baby Boomer Portfolio 1 Year X BALANCED FUNDAMENTAL
(Adding Income) RESEARCH
Biotechnology Portfolio 2 Years ^ SECTOR FUNDAMENTAL
RESEARCH
Cohen & Steers Realty 3 Years X 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
(Pharmaceutical & RESEARCH
Biotechnology)
Large-Cap Growth Portfolio 1 Year ^ LARGE CAP GROWTH QUANTITATIVE
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 X SECTOR FUNDAMENTAL
RESEARCH
Select Growth Portfolio 1 Year ^ MID CAP GROWTH QUANTITATIVE
RESEARCH
Select S&P Industrial 1 Year X GROWTH & VALUE QUANTITATIVE
Portfolio RESEARCH
Select Standard & Poor's 2 Years ^ LARGE CAP QUANTITATIVE
Industry Turnaround RESEARCH
Portfolio
Select Standard & Poor's 1 Year ^ LARGE CAP GROWTH QUANTITATIVE
Intrinsic Value Portfolio RESEARCH
Select Ten Portfolio (DJIA) 1 Year X LARGE CAP VALUE QUANTITATIVE
RESEARCH
S&P 500 Trust Perpetual ^ LARGE CAP INDEX
S&P MidCap Trust Perpetual ^ MID CAP INDEX
8
<PAGE>
INVESTMENT SELECTION
TERM OF FUND GOAL PORTFOLIO STYLE METHODOLOGY
- -----------------------------------------------------------------------------------------------------------------------------------
Utility Portfolio 2 Years X SECTOR FUNDAMENTAL
RESEARCH
Western Premier Portfolio 2 Years ^ LARGE CAP GROWTH FUNDAMENTAL
RESEARCH
Year-Ahead Domestic 1 Year ^ LARGE CAP GROWTH FUNDAMENTAL
Portfolio RESEARCH
INTERNATIONAL
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
Tele-Global Trust (Global) 2 Years ^ SECTOR FUNDAMENTAL
RESEARCH
Year-Ahead International 1 Year ^ INTERNATIONAL FUNDAMENTAL
Portfolio RESEARCH
</TABLE>
<TABLE>
FIXED-INCOME PORTFOLIOS
AVERAGE INVESTMENT SELECTION
MATURITY GOAL PORTFOLIO STYLE METHODOLOGY
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE INCOME FUNDS
Insured Corporate Income 30 Years $ CAPITAL FUNDAMENTAL
Funds PRESERVATION RESEARCH
Long Term Corporate 30 Years $ N/A FUNDAMENTAL
Income Funds RESEARCH
Intermediate Corporate 10 Years $ N/A FUNDAMENTAL
Income Funds RESEARCH
GOVERNMENT SECURITIES INCOME FUNDS
U. S. Treasury Strategy 21 Years $ CAPITAL N/A
Trust 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
9
<PAGE>
AVERAGE INVESTMENT SELECTION
MATURITY GOAL PORTFOLIO STYLE METHODOLOGY
- -----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL FUNDS
Municipal Investment Trust 20 to 35 Years $ CAPITAL FUNDAMENTAL
Insured Series PRESERVATION RESEARCH
Municipal Investment Trust 15 to 30 Years $ N/A FUNDAMENTAL
National Series RESEARCH
Municipal Investment Trust 20 to 35 Years $ N/A FUNDAMENTAL
State Series RESEARCH
Municipal Investment Trust 12 to 17 Years $ N/A FUNDAMENTAL
Investment Grade Series RESEARCH
Municipal Defined Funds 15 to 30 Years $ N/A FUNDAMENTAL
RESEARCH
Municipal Investment Trust 10 to 13 Years $ N/A FUNDAMENTAL
Intermediate State Series RESEARCH
Municipal Investment Trust 5 or 10 Years $ N/A FUNDAMENTAL
Intermediate 5 & 10 Year 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.
10
<PAGE>
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.
X INCOME & GROWTH
Provides a combination of both dividends and potential appreciation in
value of investment.
^ CAPITAL APPRECIATION
Potential appreciation in value of investment.
VALUE AND GROWTH DEFINED
[Graphic representation of various portfolios plotted on a rectangle,
positioned as they relate to Large Cap vs. Small Cap, and Value vs. Growth. The
following is a basic representation of the positions of the portfolios on the
rectangle:
LARGE CAP
- -------------------------------------------------------------------------------
VALUE SELECT S&P INDUSTRIAL BABY BOOM GROWTH
TEN ECONOMY
PORTFOLIOS
LARGE-CAP
GROWTH
S&P 500 TRUST
PREMIER
AMERICAN
YEAR-AHEAD
DOMESTIC
S&P MIDCAP
TRUST
SELECT
GROWTH
SMALL CAP
The background of the rectangle consists of skyscrapers and a fluctuating line
graph.]
11
<PAGE>
SECTOR PORTFOLIOS
o Biotechnology
o Cohen & Steers Realty Majors(SM)
o Concept Series Healthcare 4
o Concept Series Tele-Global 5
o Defined Technology
o Financial
INTERNATIONAL PORTFOLIOS
o European Monetary Unit
o Premier World
o Select Ten United Kingdom
o Year-Ahead International
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 the 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.
12
<PAGE>
BALANCED
Portfolio consists of both equity and fixed income components.
13
<PAGE>
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 March 31, 1999
<TABLE>
AVERAGE MOST RECENTLY
CUMULATIVE ANNUAL COMPLETED PORTFOLIO
INCEPTION TOTAL TOTAL
DATE RETURN RETURN Offer to End Date Return
- -------------------------------------------------------------------------------------------------------
SELECT TEN PORTFOLIOS - DJIA
<S> <C> <C> <C> <C> <C>
Series B 5/17/91 202.65% 15.10% 5/27/97-6/30/98 11.29%
Series A 1/3/92 158.09 13.98 1/28/98-3/5/99 5.33
Series C 9/1/92 202.90 18.34 9/22/97-10/23/98 6.79
Series 3 7/22/96 56.31 18.06 7/28/97-8/28/98 1.59
Series 5 11/1/96 32.31 12.31 11/10/97-12/18/98 6.66
Series J 1/2/97 21.90 9.24 1/6/98-2/8/99 8.80
Series 1 2/25/97 15.35 7.06 2/25/97-3/27/98 19.38
Series 2 4/28/97 24.49 12.06 4/28/97-6/5/98 24.49
Series 4 9/3/97 14.24 8.84 9/3/97-10/2/98 2.02
SELECT S&P INDUSTRIAL PORTFOLIOS
Series A 1/22/97 31.48% 13.34% 2/9/98-3/19/99 5.92%
Series B 2/24/97 31.36 13.90 2/24/97-4/24/98 22.96
Series C 4/21/97 45.37 21.24 4/21/97-5/22/98 35.59
Series D 6/9/97 22.85 12.05 6/9/97-7/17/98 19.39
Series E 7/21/97 17.12 9.78 7/21/97-8/21/98 8.25
Series F 9/8/97 19.32 12.00 9/8/97-10/2/98 9.95
Series G 10/20/97 8.61 5.89 10/20/97-12/4/98 14.22
Series H 12/2/97 7.24 5.41 12/2/97-1/8/99 17.47
Series J 1/8/98 5.41 4.39 1/8/98-2/8/99 10.13
SELECT GROWTH PORTFOLIOS
Series A 2/14/95 127.42% 22.04% 2/17/98-3/19/99 26.37%
Series B 6/6/95 53.89 11.95 5/12/97-6/19/98 32.10
Series C 8/1/95 -17.90 -5.24 8/18/97-9/18/98 -23.74
</TABLE>
14
<PAGE>
<TABLE>
AVERAGE MOST RECENTLY
CUMULATIVE ANNUAL COMPLETED PORTFOLIO
INCEPTION TOTAL TOTAL
DATE RETURN RETURN Offer to End Date Return
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Series D 11/1/95 18.56 5.11 11/17/97-12/18/97 -28.98
SELECT STANDARD & POOR'S INTRINSIC VALUE PORTFOLIOS
Series C 11/21/96 28.79% 11.34% 12/3/97-1/15/99 13.15%
Series A 4/2/97 51.76 23.26 4/2/97-5/15/98 32.93
Series B 8/6/97 1.76 1.06 8/6/97-9/2/98 -8.51
SELECT TEN UNITED KINGDOM PORTFOLIOS
Series B 6/21/93 64.93% 9.05% 5/27/97-6/30/98 31.56%
Series C 9/28/93 60.73 9.00 9/22/97-10/23/98 3.85
Series A 1/5/94 36.60 6.14 1/28/98-3/5/99 4.95
Series 3 7/22/96 49.84 16.22 7/28/97-8/28/98 19.78
Series 5 11/1/96 35.82 13.54 11/10/97-12/18/98 6.98
Series 1 2/25/97 34.53 15.23 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
5/17/91-3/31/99
[A bar graph shows the cumulative annual performance from 5/17/91 through
3/31/99. The horizontal (X) axis shows the cumulative annual performance by
year, from 5/17/91 through 3/31/99. The vertical (Y) axis reflects the dollar
amount value for each year from 5/17/91 through 3/31/99.]
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
3/31/99 30,265
15
<PAGE>
NOTE: Above returns represent price changes plus dividends reinvested and
reflect the maximum applicable sales charge and expenses.
Equity Prices can be tracked weekly in Barron's.
16
<PAGE>
EQUITIES
Performance For Periods Ending March 31, 1999
<TABLE>
SINCE INCEPTION DATE
INCEPTION END 1 YEAR AVG. ANN.
DATE DATE TTL. RETURN TTL. RTN. RTN.
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DOMESTIC
Index Trusts 5YR. TTL. RTN 5YR. AAR
S&P 500 Trust 1 209.23% 25.31% 5/26/83 N/A 15.84% 470.06%* 18.50%*
S&P 500 Trust 2 211.02 25.46 2/19/92 N/A 15.74 257.37 19.60
S&P MidCap Trust 121.68 17.25 2/19/92 N/A -1.94 159.34 14.33
S&P Industry Turnaround Portfolios+
Industry Turnaround Series 1 11/21/97 N/A -7.89 2.17 1.60
Industry Turnaround Series 2 4/3/98 N/A N/A -17.66 N/A
Industry Turnaround Series 3 9/16/98 N/A N/A 2.39 N/A
Premier American Portfolios
Blue Chip Series 3 8/22/95 N/A 5.61 112.55 23.24
Blue Chip Series 4 1/8/97 N/A 4.59 61.91 24.19
Blue Chip Series 5 4/2/98 N/A N/A 4.16 N/A
Blue Chip Series 6 9/11/98 N/A N/A 16.77 N/A
Western
Western Premier Portfolio Series 1 2/5/98 N/A 35.97 47.24 40.08
Year-Ahead
Year-Ahead Domestic Series 99A 12/11/98 N/A N/A 0.26 N/A
INTERNATIONAL
Europe
European Monetary Union Portfolio Series 1 5/13/98 N/A N/A 1.64% N/A
International
Premier World Portfolio Series 1 8/7/97 N/A 11.20% 31.70 18.20%
Premier World Portfolio Series 2 8/3/98 N/A N/A -0.18 N/A
Year-Ahead International Series 99A 12/11/98 N/A N/A 9.74 N/A
SECTOR
Financial
Financial Focus Portfolio Series 1 9/17/97 N/A -17.85% -2.74% -1.79%
Financial Focus Portfolio Series 2 4/9/98 N/A N/A -20.20 N/A
Health Care
Health Care Trust Series 2 1/24/95 3/31/99 N/A 129.46 21.96
Health Care Focus Series 3 4/9/98 N/A N/A -9.18 N/A
Real Estate
Cohen & Steers Realty Majors Portfolio 4/23/98 N/A N/A -12.68 N/A
17
<PAGE>
Real Estate Income Fund Series 2 6/25/96 N/A -14.88 26.63 8.92
Real Estate Income Fund Series 3 10/30/98 N/A N/A -9.58 N/A
Socially Responsible
Principled Values Portfolio Series 1 1/8/98 2/19/99 N/A 23.05 20.47
Principled Values Portfolio Series 2 6/11/98 N/A N/A 7.84 N/A
Telecommunication
Tele-Global Trust Series 2 2/14/96 N/A 55.97 146.49 33.45
Tele-Global Trust Series 3 2/6/98 N/A 37.91 60.76 51.37
Tele-Global Trust Series 4 8/13/98 N/A N/A 26.16 N/A
Technology
Technology Portfolio Series 1 8/25/98 N/A N/A 47.64 N/A
Utilities 5YR. TTL. RTN 5YR. AAR
14th Utility Stock Series 51.92% 8.72% 10/5/89 N/A -14.92 128.10 9.08
15th Utility Stock Series 48.75 8.26 6/4/92 N/A -15.96 62.35 7.36
Utility Portfolio Series 1 N/A N/A 6/18/98 N/A N/A -11.71 N/A
Utility Portfolio Series 2 N/A N/A 12/1/98 N/A N/A -14.59 N/A
</TABLE>
Past Performance is no guarantee of future results.
Return figures represent price changes plus reinvestment of income and
principal distributions (net of all fund expenses and maximum sales charges),
divided by the initial public offering price.
* These figures represent latest ten years rather than since inception.
+ S&P Industry Turnaround Portfolios are part of the Select family of funds.
18
<PAGE>
FIXED-INCOME
For Periods Ending March 31, 1999 (reflecting all expenses)
<TABLE>
1 YEAR TOTAL 5 YEAR TOTAL
RETURN RETURN
- -------------------------------------------------------------------------------------------
MUNICIPAL FUNDS
- -------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Long Term Series HIGH 7.23% 4.19% 52.20% 43.91%
(2/4/88-9/26/96)* AVG. 5.23 2.00 38.60 32.09
LOW 2.93 -1.01 29.16 23.11
Number of Funds/Average Sales Fee in Sample 107/3.22% 72/4.99%
Long-Intermediate Term Series HIGH 7.20 6.42 41.44 35.20
(10-Year)* AVG. 5.35 3.07 36.70 31.51
(8/9/88-10/18/96) LOW 2.71 1.45 33.28 28.27
Number of Funds/Average Sales Fee in Sample 69/2.25% 47/4.01%
Insured Series HIGH 7.02 4.22 51.39 43.17
(1/5/88-10/17/96)* AVG. 5.38 2.01 38.66 31.89
LOW 2.98 -0.65 28.13 23.18
Number of Funds/Average Sales Fee in Sample 104/3.35% 69/5.19%
Short-Intermediate Term Series HIGH 5.46 3.61 32.99 28.51
(5-Year) AVG. 4.43 3.08 30.68 26.47
(3/11/92-10/3/96)* LOW 3.58 2.53 28.33 24.23
Number of Funds/Average Sales Fee in Sample 40/1.33% 21/3.36%
5 YEAR AVG. ANNUAL 10 YEAR TOTAL 10 YEAR AVG.
RETURN RETURN ANNUAL RETURN
- ------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Long Term Series HIGH 8.76% 7.55% 111.67% 100.22% 7.78% 7.19%
(2/4/88-9/26/96)* AVG. 6.72 5.71 107.85 96.60 7.59 6.99
LOW 5.25 4.24 103.35 92.35 7.35 6.76
Number of Funds/Average Sales Fee in Sample 72/4.99% 15/5.82% 15/5.82%
Long-Intermediate Term Series HIGH 7.18 6.21 N/A N/A N/A N/A
(10-Year)* AVG. 6.45 5.63 N/A N/A N/A
(8/9/88-10/18/96) LOW 5.91 5.10 N/A N/A N/A
Number of Funds/Average Sales Fee in Sample 47/4.01% N/A
Insured Series HIGH 8.64 7.44 107.65 96.36 7.58 6.98
(1/5/88-10/17/96)* AVG. 6.73 5.67 104.44 93.37 7.41 6.81
LOW 5.08 4.26 102.29 91.37 7.30 6.70
Number of Funds/Average Sales Fee in Sample 69/5.19% 7/5.82% 7/5.82%
Short-Intermediate Term Series HIGH 5.86 5.14 N/A N/A N/A N/A
(5-Year) AVG. 5.49 4.81 N/A N/A N/A N/A
(3/11/92-10/3/96)* LOW 5.11 4.43 N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample 21/3.36% N/A N/A
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- -------------------------------------------------------------------------------------------
STATE FUNDS
- -------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Series HIGH 7.61% 4.57% 52.67% 44.39%
(6/22/88-9/27/96)* AVG. 5.52 2.32 38.48 31.82
LOW 3.11 0.40 28.28 23.29
Number of Funds/Average Sales Fee in Sample 101/3.18% 67/5.10%
Florida Series HIGH 7.59 4.94 51.18 42.95
(4/20/88-9/13/96)* AVG. 5.45 2.24 38.25 31.57
LOW 3.15 -0.66 29.33 23.99
Number of Funds/Average Sales Fee in Sample 87/3.19% 62/5.13%
New Jersey Series HIGH 7.45 5.83 48.61 40.54
(3/30/88-9/19/96)* AVG. 5.53 2.55 36.87 30.25
LOW 3.51 0.51 28.79 22.83
Number of Funds/Average Sales Fee in Sample 94/2.96% 71/5.14%
New York Series (1/14/88- HIGH 7.65 5.38 49.94 41.79
10/16/96)* AVG. 5.49 2.37 36.03 29.74
LOW 3.37 -0.98 28.39 23.05
Number of Funds/Average Sales Fee in Sample 152/3.11% 104/4.90%
Pennsylvania Series HIGH 7.57 3.65 50.42 42.23
(5/19/88-9/13/96)* AVG. 5.22 2.17 37.01 30.49
LOW 1.23 -0.52 27.55 21.47
Number of Funds/Average Sales Fee in Sample 91/3.03% 67/5.04%
- ------------------------------------------------------------------------------------------------------------------------------
STATE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
California Series HIGH 8.82% 7.62% N/A N/A N/A N/A
(6/22/88-9/27/96)* AVG. 6.70 5.66 N/A N/A N/A N/A
LOW 5.10 4.27 N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample 67/5.10% N/A N/A
Florida Series HIGH 8.61 7.40 107.13 95.93 7.55 6.95
(4/20/88-9/13/96)* AVG. 6.67 5.62 103.98 92.92 7.39 6.79
LOW 5.28 4.39 102.49 91.54 7.31 6.71
Number of Funds/Average Sales Fee in Sample 62/5.13% 4/5.82% 4/5.82%
New Jersey Series HIGH 8.24 7.04 106.51 95.33 7.52 6.92
(3/30/88-9/19/96)* AVG. 6.46 5.41 104.20 93.15 7.40 6.80
LOW 5.19 4.20 102.91 91.94 7.33 6.73
Number of Funds/Average Sales Fee in Sample 71/5.14% 7/5.82% 7/5.82%
New York Series (1/14/88- HIGH 8.43 7.23 116.71 104.99 8.04 7.44
10/16/96)* AVG. 6.33 5.33 111.27 99.93 7.76 7.17
LOW 5.12 4.23 107.99 96.75 7.56 7.00
Number of Funds/Average Sales Fee in Sample 104/4.90% 22/5.77% 22/5.77%
Pennsylvania Series HIGH 8.50 7.30 107.35 96.44 7.56 6.98
(5/19/88-9/13/96)* AVG. 6.47 5.45 106.32 95.40 7.51 6.92
LOW 4.98 3.96 104.45 93.40 7.41 6.81
Number of Funds/Average Sales Fee in Sample 67/5.04% 8/5.68% 8/5.68%
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<PAGE>
- -------------------------------------------------------------------------------------------
CORPORATE FUNDS
- -------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Long Term Series HIGH 6.32% 1.18% 55.10% 48.02%
(11/2/88-10/1/96)* AVG. 4.72 -0.84 47.17 39.47
LOW -0.11 -5.34 38.19 31.54
Number of Funds/Average Sales Fee in Sample 31/5.72% 24/5.67%
Intermediate Series HIGH 8.04 2.99 51.32 44.87
(6/27/90-4/9/96)* AVG. 6.74 1.75 46.76 39.96
LOW 4.02 -0.79 42.04 35.43
Number of Funds/Average Sales Fee in Sample 32/4.99% 23/4.95%
Insured Series HIGH 6.93 2.65 55.97 48.07
(5/23/91-8/7/96)* AVG. 5.56 0.03 49.29 41.36
LOW 3.78 -0.99 41.50 33.89
Number of Funds/Average Sales Fee in Sample 19/5.62% 13/5.73%
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Long Term Series HIGH 9.17% 8.15% N/A N/A N/A N/A
(11/2/88-10/1/96)* AVG. 8.02 6.86 N/A N/A N/A N/A
LOW 6.68 5.63 N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample 24/5.67% N/A N/A
Intermediate Series HIGH 8.63 7.69 N/A N/A N/A N/A
(6/27/90-4/9/96)* AVG. 7.97 6.95 N/A N/A N/A N/A
LOW 7.27 6.25 N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample 23/4.95% N/A N/A
Insured Series HIGH 9.29 8.16 N/A N/A N/A N/A
(5/23/91-8/7/96)* AVG. 8.33 7.15 N/A N/A N/A N/A
LOW 7.19 6.01 N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample 13/5.73% N/A N/A
</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
3/31/99 are not included.
The following are important facts to keep in mind when considering these
investments.
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<PAGE>
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.
EQUITY INVESTOR FUNDS
Concept Series
Baby Boom Economy Portfolios
Health Care Trust
(Pharmaceutical & Biotechnology Portfolio)
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Western Premier Portfolio
Select Series
Defined Technology PortfolioSM
22
<PAGE>
Principled Values PortfolioSM
Select Growth Portfolio
Select Large-Cap Growth Portfolio
Select S&P Industrial Portfolio
Select Standard & Poor's Industry Turnaround Portfolio
Select Standard & Poor's Intrinsic Value Portfolio
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
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
Defined Asset FundsSM
Buy With Knowledge o Hold With Confidence
A prospectus containing more complete information on any Defined Asset Fund
including sales charges, expenses and risks 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-5/99
23
<PAGE>
(C) 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
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