Defined Asset Funds(SM)
Fund Performance Information As of September 30, 1999
Defined Performance
[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 investment opportunities, within the
convenient structure of a Unit Investment Trust (UIT).
We offer a full range of equity and fixed-income portfolios using research-based
and quantitative investment 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 created by professional analysts to offer our clients back-tested
strategies with performance potential. And our Portfolio Consultants provide
valuable insights from Wall Street, and beyond.
The following pages contain detailed information on our family of funds,
including fund performance figures.
If you have any questions about how Defined Asset Funds could help you 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.
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.
<PAGE>
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 of most funds for certain other
Defined Asset Funds at a reduced sales charge.
Convenience
There's no need for multiple security purchases. Defined Asset Funds offer
diversification among various securities, with just one price to track.
Table of Contents
Levels of Risk Tolerance..........................................2
Portfolio Definitions...........................................2-3
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 FUNDS
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.]
2
<PAGE>
<TABLE>
Lower Risk Higher Risk
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
o Corporate Income o Real Estate Income o Select Large-Cap o Tele-Global o Pacific Rim
Funds o Utility Growth o Select Ten United o Internet
o Laddered Treasury o Baby Boom Economy o Energy Kingdom o Financial Services
Trusts (Accumulating o Select Principled o Year-Ahead Domestic o Defined
o Municipal Investment Assets) Values(SM) o Year-Ahead Technology(SM)
Trusts/Defined o Baby Boom Economy o Select S&P Industrial+ International o Biotechnology
Municipal Funds (Adding Income) o Premier American o Institutional Holdings o Health Care
o United States o Cohen & Steers o Select Ten (DJIA)* o Premier World o Select Growth
Treasury Strategy Realty Majors(SM) o S&P MidCap+
Trust o S&P 500 o Baby Boom Economy
o GNMA Series (Adding Growth)
o European Monetary
Union
o Select Standard &
Poor's Intrinsic
Value+
o Select Standard &
Poor's+ Industry
Turnaround
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This chart indicates the relative risk level of various Defined Asset Funds and
should only be used as a general guide. Please contact your Financial Consultant
for specific recommendations regarding your personal investment goals.
DOMESTIC EQUITIES
Baby Boom Economy Portfolios(SM)
Three defined Portfolios seeking to capitalize on anticipated "boomer-driven"
economic trends, based on three distinct asset allocation models:
- -- Adding Growth - 100% Stocks
- -- Accumulating Assets - 75% Stocks, 25% Treasuries
- -- Adding Income - 50% Stocks, 50% Treasuries
Institutional Holdings Portfolio
Seeks capital appreciation by applying our Multi-Disciplined Strategy to the
Amex Institutional Index.
Premier American Portfolio
Selected by Defined Asset Funds Research, a diversified Portfolio seeking growth
by holding American blue chip companies.
3
<PAGE>
Principled Values Portfolio
Invests in companies from the Domini Social Index, screened for socially
responsible policies and a positive diversity record.
Select Growth Portfolio
Holds ten growth stocks selected by O'Shaughnessy Capital Management's
proprietary quantitative screening process.
Select Large-Cap Growth Portfolio
Seeks capital appreciation by applying a quantitative selection model to the
Russell 1000 Growth Index.
Select S&P Industrial Portfolio
Follows a contrarian quantitative value strategy by selecting 15 high
dividend-yielding, large-cap stocks from the S&P Industrial Index, each ranked
"A" or better for earning and dividend quality by S&P.
Select Standard & Poor's Industry Turnaround Portfolio
Quantitative strategy of investing in 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 Dow Jones Industrial
Average.
S&P 500 Trust and S&P MidCap Trust+
Replicate the composition and weighting of the S&P 500 and S&P MidCap
Indices.
Year-Ahead Domestic Portfolio
Stocks selected for their growth potential by Merrill Lynch Global Research
(Offered December - March Only).
INTERNATIONAL EQUITIES
European Monetary Union Portfolio
Invests in stocks from European countries we believe may benefit from the
monetary union.
4
<PAGE>
Pacific Rim Portfolio
Holds stocks from the Asia/Pacific region selected for their growth potential by
Merrill Lynch Global Research.
Premier World Portfolio
Diversified portfolio seeking growth by holding large-cap, non-U.S. companies
selected by Defined Asset Funds Research.
Select Ten United Kingdom Portfolio
Holds 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 Global Research for their
growth potential, from a variety of non-U.S. countries (Offered December -
March Only).
SECTOR EQUITIES
Biotechnology Portfolio
Seeks capital appreciation by investing in biotechnology stocks selected by
Merrill Lynch Research.
Cohen & Steers Realty Majors(SM) Portfolio
Real Estate Investment Trusts chosen by Cohen & Steers for their industry
leadership.
Defined Technology Portfolio
Seeks capital appreciation by applying a quantitative selection model to the
Merrill Lynch 100 Technology Index.
Energy Portfolio
Seeks capital appreciation by investing in stocks from large-cap companies that
provide energy products and services.
Financial Services Portfolio
A portfolio seeking capital appreciation by holding financial industry stocks
selected by Defined Asset Funds Research as among the most attractive in the
industry.
Health Care Trust
Holds stocks selected by Defined Asset Funds Research to capitalize on
innovations in the health-care industry.
5
<PAGE>
Real Estate Income Fund
Portfolio of REITs, diversified both geographically and by sector, selected by
Cohen & Steers.
Tele-Global Trust
Domestic and international telecommunications companies that Defined Funds
Research believes are well-positioned for growth.
Utility Portfolio
U.S. electric utility stocks with strong dividend histories, selected by Defined
Asset Funds Research.
FIXED-INCOME
Alternative to Corporate or Government Funds.
Municipal Funds whose interest is subject to federal tax for individuals, but
exempt from state and local tax for residents of the state of issuance.
Municipal Investment Trusts/Defined Municipal Funds
National Series
Diverse bond portfolios providing income exempt from regular federal income
taxes.++
State Series
Bonds primarily from one state, offering double or possibly triple tax-free
income.
Insured Series
Portfolio of AAA-rated bonds providing federal tax-free income, guaranteed
against credit risk, but not market risk.
Corporate Income Funds
Insured Series
Diversified portfolio of AAA-rated corporate bonds, insured against credit
risk.+++
Intermediate Series
Diversified portfolio of corporate bonds rated "A" or better.
Long Term Series
Diversified portfolio of corporate bonds rated "A" or better.
6
<PAGE>
Government Securities Income Funds
5 & 10 Year Laddered Treasury Trust
Portfolios of AAA-rated Treasury notes with laddered maturities.
U.S. Treasury Strategy Trust
Portfolios of AAA-rated, laddered, medium-term, interest-bearing U.S.
Treasuries.
GNMA Series
Portfolios of AAA-rated Ginnie Mae mortgage-backed securities.
+ "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.
* 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.
++ "Amex Institutional Index" is a trademark of the American Stock Exchange LLC,
a subsidiary of the NASD, and has been licensed for use by Defined Asset
Funds. The portfolio is not sponsored, managed, sold or promoted by the
American Stock Exchange. The American Stock Exchange does not guaranty the
accuracy or completeness of the Index.
ss.The "Domini 400 Social Index" is a service mark of its publisher, Kinder,
Lydenberg, Domini & Co., Inc.
|| "Russell 1000 Growth Index" is a trademark of Frank Russell Company. Frank
Russell Company has not sponsored, managed, sold or promoted the Portfolio.
++ 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
Energy Portfolio 2 Years > SECTOR FUNDAMENTAL
RESEARCH
Financial Services Portfolio 2 Years > SECTOR FUNDAMENTAL
RESEARCH
Health Care Trust 2 Years > SECTOR FUNDAMENTAL
RESEARCH
Institutional Holdings 1 Year > LARGE-CAP GROWTH QUANTITATIVE
Portfolio
Internet Portfolio 1 Year > SECTOR FUNDAMENTAL
RESEARCH
Large-Cap Growth Portfolio 1 Year > LARGE-CAP GROWTH QUANTITATIVE
Premier American Portfolio 2 Years > LARGE-CAP GROWTH FUNDAMENTAL
RESEARCH
Principled Values Portfolio 1 Year > LARGE-CAP GROWTH QUANTITATIVE
Real Estate Income Fund 2 Years X SECTOR FUNDAMENTAL
RESEARCH
Select Growth Portfolio 1 Year > MID-CAP GROWTH QUANTITATIVE
Select S&P Industrial 1 Year X GROWTH & VALUE QUANTITATIVE
Portfolio
Select Standard & Poor's 2 Years > LARGE-CAP QUANTITATIVE
Industry Turnaround
Portfolio
Select Standard & Poor's 1 Year > LARGE-CAP GROWTH QUANTITATIVE
Intrinsic Value Portfolio
Select Ten Portfolio (DJIA) 1 Year X LARGE-CAP VALUE QUANTITATIVE
S&P 500 Trust 18 Years > LARGE-CAP INDEX
S&P MidCap Trust 18 Years > MID-CAP INDEX
</TABLE>
8
<PAGE>
<TABLE>
INVESTMENT SELECTION
TERM OF FUND GOAL PORTFOLIO STYLE METHODOLOGY
------------ ---- --------------- -----------
<S> <C> <C> <C> <C>
Utility Portfolio 2 Years X SECTOR 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
Pacific Rim Portfolio 2 Years > INTERNATIONAL FUNDAMENTAL
RESEARCH
Select Ten United Kingdom 1 Year > INTERNATIONAL QUANTITATIVE
Portfolio
Tele-Global Trust (Global) 2 Years > SECTOR FUNDAMENTAL
RESEARCH
Year-Ahead International 1 Year > INTERNATIONAL FUNDAMENTAL
Portfolio RESEARCH
FIXED-INCOME PORTFOLIOS
</TABLE>
<TABLE>
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 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
</TABLE>
9
<PAGE>
<TABLE>
AVERAGE INVESTMENT SELECTION
MATURITY GOAL PORTFOLIO STYLE METHODOLOGY
-------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
MUNICIPAL FUNDS
Municipal Investment Trust 20 to 35 Years $ CAPITAL FUNDAMENTAL
Insured Series PRESERVATION RESEARCH
Municipal Investment Trust 20 to 35 Years $ CAPITAL FUNDAMENTAL
Insured Taxable Series PRESENTATION 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>
10
<PAGE>
Defined Asset Funds offers a wide diversity of Portfolios designed to meet a
variety of individual investment goals. The charts on the opposite page indicate
each Portfolio's suitability based on investment goal and portfolio style, as
described below.
INVESTMENT GOAL
$ INCOME
Provides periodic cash disbursements for current income or reinvestment.
X INCOME & GROWTH
Offers a combination of dividends and potential appreciation of the value
of your investment.
> CAPITAL APPRECIATION
Seeks appreciation of the value of your 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
INSTITUTIONAL
HOLDINGS
S&P 500 TRUST PORTFOLIO
LARGE-CAP
GROWTH
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.]
SECTOR PORTFOLIOS
o Biotechnology
o Defined Technology
o Financial Services
o Health Care
o Internet
o Real Estate Income
o Tele-Global
o Utility
INTERNATIONAL PORTFOLIOS
o European Monetary Union
o Pacific Rim
o Premier World
o Select Ten United Kingdom
o Year-Ahead International
PORTFOLIO STYLE
GROWTH
Focuses on companies with better-than-average expected earnings growth.
LARGE-CAP GROWTH
Invests in large companies with better-than-average expected earnings growth.
MID-CAP GROWTH
Holds stocks from mid-size companies with better-than-average expected earnings
growth.
GROWTH & VALUE
Invests in companies with better-than-average expected earnings growth and
considers the relative price level of securities.
LARGE-CAP VALUE
Invests in large-company stocks that may be undervalued.
11
<PAGE>
INTERNATIONAL
Holds stocks from companies based outside the United States.
SECTOR
Focuses on investing in a specific industry, such as Technology or Utility.
CAPITAL PRESERVATION
Preserves the value of your initial investment if fund is held to maturity.
BALANCED
Consists of a combination of both equity and fixed- income components.
12
<PAGE>
EQUITIES
The Select Series includes portfolios that invest in specific strategies.
Several Select Series portfolios are based on well-known indices, and each
portfolio has about 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, 1999
<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>
SELECT TEN PORTFOLIOS - DJIA
Series B 5/17/91 202.45% 14.12% 6/1/98-7/9/99 6.82%
Series A 1/3/92 183.44 14.40 1/28/98-3/5/99 5.33
Series C 9/1/92 211.90 17.42 9/22/97-10/23/98 6.79
Series 3 7/22/96 60.30 15.93 8/3/98-9/10/99 11.05
Series 5 11/1/96 42.74 13.00 11/10/97-12/18/98 6.66
Series J 1/2/97 30.89 10.31 1/6/98-2/8/99 8.80
Series 1 2/25/97 26.46 9.47 3/2/98-4/9/99 2.65
Series 2 4/28/97 22.44 8.71 5/4/98-6/4/99 2.47
Series 4 9/3/97 14.44 6.72 9/3/97-10/2/98 2.02
SELECT S&P INDUSTRIAL PORTFOLIOS
Series A 1/22/97 23.22% 8.08% 2/9/98-3/19/99 5.92%
Series B 2/24/97 21.55 7.81 3/23/98-4/23/99 6.13
Series C 4/21/97 25.21 9.63 4/27/98-6/4/99 12.29
Series D 6/9/97 4.76 2.03 6/15/98-7/23/99 7.93
Series E 7/21/97 3.29 1.48 7/27/98-8/27/99 1.39
Series F 9/8/97 10.70 5.06 9/8/97-10/2/98 9.95
Series G 10/20/97 5.63 2.86 10/20/97-12/4/98 14.22
Series H 12/2/97 1.35 0.74 12/2/97-1/8/99 17.47
Series J 1/8/98 -0.24 -0.14 1/8/98-2/8/99 10.13
SELECT GROWTH PORTFOLIOS
Series A 2/14/95 228.25% 29.29% 2/17/98-3/19/99 26.37%
Series B 6/6/95 63.77 12.09 5/18/98-6/18/99 -13.99
Series C 8/1/95 21.66 4.82 8/18/97-9/18/98 -23.74
13
<PAGE>
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 80.94 16.35 11/17/97-12/18/98 -28.98
SELECT STANDARD & POOR'S INTRINSIC VALUE PORTFOLIOS
Series C 11/21/96 34.83% 11.03% 12/3/97-1/15/99 13.15%
Series A 4/2/97 51.07 17.97 4/13/98-5/21/99 16.95
Series B 8/6/97 6.92 3.16 8/10/98-9/10/99 27.02
SELECT TEN UNITED KINGDOM PORTFOLIOS - FT INDEX
Series B 6/21/93 64.60% 8.26% 6/1/98-7/9/99 -1.98%
Series C 9/28/93 76.18 9.88 9/22/97-10/23/98 3.85
Series A 1/5/94 43.94 6.56 1/28/98-3/5/99 4.95
Series 3 7/22/96 63.63 16.68 7/31/98-9/10/99 5.88
Series 5 11/1/96 40.37 12.35 11/10/97-12/18/98 6.98
Series 1 2/25/97 42.41 14.60 3/2/98-4/9/99 6.44
</TABLE>
Average Annual Total Return differs from Most Recently Completed Portfolio
because the former figures reflect different performance periods and a reduced
sales charge on annual rollovers.
Growth of $10,000 invested in the Select Ten Portfolio Series B
5/17/91-9/30/99
[A bar graph shows the cumulative annual performance from 5/17/91 through
9/30/99. The horizontal (X) axis shows the cumulative annual performance by
year, from 5/17/91 through 9/30/99. The vertical (Y) axis reflects the dollar
amount value for each year from 5/17/91 through 9/30/99.]
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
9/30/99 30,245
14
<PAGE>
NOTE: Above returns represent price changes plus dividends reinvested and
reflect the maximum applicable sales charges and expenses.
Equity Prices can be tracked weekly in Barron's.
15
<PAGE>
EQUITIES
Performance For Periods Ending September 30, 1999
<TABLE>
TOTAL RETURN SINCE INCEPTION DATE
------------------------ -----------------------------
INCEPTION AVG. ANN.
DATE YTD 1 YEAR TTL. RTN. RTN.
--------- --------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
DOMESTIC
Index Trusts 5YR. TTL. RTN 5YR. AAR
S&P 500 Trust 1 193.49% 24.01% 5/26/83 2.87% 24.94% 347.51%* 16.16%*
S&P 500 Trust 2 196.36 24.25 2/19/92 2.90 24.82 258.45 18.25
S&P MidCap Trust 125.15 17.61 2/19/92 -4.39 22.31 170.63 13.96
S&P Industry Turnaround Portfolios+
Industry Turnaround Series 1 11/21/97 2.51 11.72 7.32 3.88
Industry Turnaround Series 2 4/3/98 -6.57 2.44 -24.94 -17.48
Industry Turnaround Series 3 9/16/98 -8.39 1.30 -0.79 -0.76
Premier American Portfolios
Blue Chip Series 3 8/22/95- N/A N/A 123.35 22.08
8/31/99
Blue Chip Series 4 1/8/97 -6.65 8.33 52.22 16.66
Blue Chip Series 5 4/2/98 -11.13 2.89 -9.18 -6.24
Blue Chip Series 6 9/11/98 -11.68 3.42 4.68 4.44
Blue Chip Series 7 2/19/99 N/A N/A -5.51 N/A
Year-Ahead
Year-Ahead Domestic Series 99A+ 12/11/98 -11.84 N/A -6.49 N/A
INTERNATIONAL
Europe
European Monetary Union Portfolio Series 1 5/13/98 -3.41% 18.66% 2.89% 2.08%
International
Premier World Portfolio Series 1 8/7/97 15.92 46.35 49.18 20.47
Premier World Portfolio Series 2 8/3/98 1.07 23.07 3.33 2.87
Year-Ahead International Series 99A+ 12/11/98 26.44 N/A 29.27 N/A
SECTOR
Financial
Financial Focus Portfolio Series 1 9/17/97 -12.88% -1.94% -7.08% -3.54%
Financial Focus Portfolio Series 2 4/9/98 -12.66 -3.29 -28.94 -20.65
Health Care
Biotechnology 3/25/99 N/A N/A 30.09 N/A
Health Care Focus Series 3 4/9/98 -11.75 -12.51 -12.51 -8.65
Health Care Trust Series 4 1/20/99 N/A N/A -0.69 N/A
Real Estate
Cohen & Steers Realty Majors Portfolio 4/23/98 -7.09 -7.49 -12.26 -8.69
16
<PAGE>
Real Estate Income Fund Series 2 6/25/96 -4.88 -4.03 29.74 8.30
Real Estate Income Fund Series 3 10/30/98 -7.05 N/A -6.80 N/A
Real Estate Income Fund Series 4 5/12/99 N/A N/A -12.22 N/A
Socially Responsible
Principled Values Portfolio Series 2 6/11/98- N/A N/A 12.56 10.82
8/6/99
Principled Values Portfolio Series 3 1/29/99 N/A N/A -3.18 N/A
Telecommunication
Tele-Global Trust Series 2 2/14/96 40.28 95.21 211.99 36.84
Tele-Global Trust Series 3 2/6/98 30.84 76.06 98.33 51.57
Tele-Global Trust Series 4 8/13/98 40.26 88.63 65.20 55.84
Tele-Global Trust Series 5 1/25/99 N/A N/A 2.45 N/A
Technology
Technology Portfolio Series 1 8/25/98- N/A N/A 73.87 66.71
9/24/99
Technology Portfolio Series 2 1/14/99 N/A N/A 19.89 N/A
Technology Portfolio Series 3 5/5/99 N/A N/A 15.57 N/A
Utilities 5YR. TTL. RTN 5YR. AAR
14th Utility Stock Series 60.89% 9.97% 10/5/89 -16.95 -14.62 140.43 9.18
15th Utility Stock Series 54.77 9.12 6/4/92 -19.09 -17.51 68.10 7.35
Utility Portfolio Series 1 N/A N/A 6/18/98 -13.46 -11.56 -7.02 -5.51
Utility Portfolio Series 2 N/A N/A 12/1/98 -13.42 N/A -10.33 N/A
Utility Portfolio Series 3 N/A N/A 5/13/98 N/A N/A -10.31 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.
+ These funds follow a rolling structure.
17
<PAGE>
FIXED-INCOME
For Periods Ending September 30, 1999 (reflecting all expenses)
<TABLE>
1 YEAR TOTAL 5 YEAR TOTAL RETURN 5 YEAR AVG. ANNUAL
RETURN RETURN
MUNICIPAL FUNDS ------------------- ----------------------- ----------------------
WITHOUT WITH WITHOUT WITH SALES WITHOUT WITH
SALES SALES SALES CHARGE SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE
------- ------ ------ ---------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Long-Term Series HIGH 2.95% 1.81% 47.82% 39.83% 8.13% 6.93%
(2/4/88-9/26/96)*
AVG. -0.70 -2.55 33.83 27.51 5.96 4.95
LOW -5.90 -7.99 20.89 16.49 3.87 3.10
Number of Funds/Average Sales Fee in Sample 104/1.93% 78/5.01% 78/5.01%
Long-Intermediate Term Series HIGH 5.82 5.05 37.41 31.46 6.56 5.62
(10-Year)*
(8/9/88-10/18/96)
AVG. 1.61 -0.14 31.25 26.29 5.58 4.77
LOW -2.49 -3.45 22.00 17.98 4.06 3.36
Number of Funds/Average Sales Fee in Sample 62/1.78% 48/3.97% 48/3.97%
Insured Series HIGH 2.72 1.40 46.04 38.12 7.86 6.67
(1/5/88-10/17/96)*
AVG. -0.41 -2.36 34.71 28.09 6.11 5.05
LOW -4.69 -7.31 19.51 15.13 3.63 2.86
Number of Funds/Average Sales Fee in Sample 101/2.04% 76/5.22% 76/5.22%
Short-Intermediate Term Series
(5-Year)
(10/8/92-10/3/96)* HIGH 2.71 1.38 28.14 24.24 5.08 4.43
AVG. 1.27 0.05 24.69 20.75 4.51 3.84
LOW -0.55 -1.46 19.90 16.53 3.69 3.10
Number of Funds/Average Sales Fee in Sample 37/1.23% 22/3.30% 22/3.30%
STATE FUNDS
California Series HIGH 4.25% 3.86% 46.21% 38.28% 7.89% 6.69%
(6/22/88-9/27/96)*
AVG. -0.25 -2.14 34.35 27.83 6.05 5.00
LOW -3.20 -5.88 19.62 14.93 3.65 2.82
Number of Funds/Average Sales Fee in Sample 104/1.97% 70/5.15% 70/5.15%
Florida Series HIGH 4.49 4.33 44.58 36.73 7.65 6.45
(4/20/88-9/13/96)*
AVG. -0.21 -2.14 33.90 27.41 5.98 4.94
LOW -4.96 -7.67 21.37 17.00 3.95 3.19
Number of Funds/Average Sales Fee in Sample 84/2.01% 69/5.14% 69/5.14%
Michigan Series HIGH 2.74 1.22 43.54 35.75 7.49 6.30
(6/13/90-2/15/96)*
AVG. -0.10 -1.93 34.99 28.51 6.16 5.12
LOW -3.26 -5.88 21.59 16.67 3.98 3.13
Number of Funds/Average Sales Fee in Sample 35/1.90% 31/5.09% 31/5.09%
New Jersey Series HIGH 2.67 1.38 45.47 37.58 7.78 6.59
(3/30/88-9/19/96)*
AVG. -0.04 -1.82 33.14 26.63 5.86 4.81
LOW -3.75 -6.50 20.23 16.04 3.75 3.02
Number of Funds/Average Sales Fee in Sample 88/1.85% 75/5.18% 75/5.18%
New York Series HIGH 3.90 2.66 47.24 39.26 8.04 6.84
(1/14/88-10/16/96)*
AVG. 0.17 -1.64 31.73 25.57 5.63 4.63
LOW -4.91 -7.50 20.26 14.98 3.76 2.83
Number of Funds/Average Sales Fee in Sample 144/1.88% 112/4.94% 112/4.94%
Pennsylvania Series HIGH 2.44 1.25 45.03 37.17 7.71 6.52
(5/19/88-9/13/96)*
AVG. -0.14 -2.01 34.13 27.56 6.01 4.96
LOW -4.12 -6.76 21.60 16.15 3.99 3.04
Number of Funds/Average Sales Fee in Sample 82/1.94% 67/5.20% 67/5.20%
CORPORATE FUNDS
WITHOUT WITH WITHOUT WITH SALES WITHOUT WITH
SALES SALES SALES CHARGE SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE
------- ------ ------- ---------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Long-Term Series HIGH 1.13% -2.33% 56.70% 48.85% 9.39% 8.28%
(11/2/88-10/1/96)*
AVG. -3.62 -6.93 49.35 41.39 8.33 7.15
LOW -6.86 -10.07 39.30 31.81 6.85 5.68
Number of Funds/Average Sales Fee in Sample 28/3.61% 21/5.76% 21/5.76%
Intermediate Series HIGH 3.73 0.69 53.86 46.68 9.00 7.96
(6/27/90-4/9/96)*
AVG. 0.26 -2.68 48.25 41.43 8.18 7.17
LOW -2.95 -5.81 40.84 34.69 7.09 6.13
Number of Funds/Average Sales Fee in Sample 32/3.08% 25/4.92% 25/4.92%
Insured Series HIGH 2.55 -1.00 56.83 48.36 9.41 8.20
(5/23/91-8/7/96)*
AVG. -3.51 -6.79 52.40 44.30 8.78 7.60
LOW -7.33 -10.53 46.10 38.27 7.87 6.69
Number of Funds/Average Sales Fee in Sample 19/3.58% 14/5.73% 14/5.73%
(TABLE TO BE CONTINUED)
<PAGE>
(TABLE CONTINUED)
FIXED-INCOME
For Periods Ending September 30, 1999 (reflecting all expenses)
10 YEAR TOTAL 10 YEAR AVG.
RETURN ANNUAL RETURN
MUNICIPAL FUNDS ------------------- --------------------
WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE
------ ------ ------- ------
<S> <C> <C> <C> <C>
Long-Term Series HIGH 90.28% 80.78% 6.64% 6.10%
(2/4/88-9/26/96)*
AVG. 85.24 75.30 6.35 5.77
LOW 80.03 70.30 6.05 5.46
Number of Funds/Average Sales Fee in Sample 20/5.77% 20/5.77%
Long-Intermediate Term Series HIGH 86.39 77.56 6.42 5.91
(10-Year)*
(8/9/88-10/18/96)
AVG. 84.46 75.80 6.31 5.80
LOW 81.64 73.16 6.15 5.64
Number of Funds/Average Sales Fee in Sample 3/4.99% 3/4.99%
Insured Series HIGH 89.62 79.29 6.60 6.01
(1/5/88-10/17/96)*
AVG. 84.42 74.44 6.31 5.72
LOW 81.53 71.70 6.14 5.55
Number of Funds/Average Sales Fee in Sample 10/5.82% 10/5.82%
Short-Intermediate Term Series
(5-Year)
(10/8/92-10/3/96)* HIGH N/A N/A N/A N/A
AVG. N/A N/A N/A N/A
LOW N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample N/A N/A
STATE FUNDS
California Series HIGH 88.94% 78.69% 6.57% 5.97%
(6/22/88-9/27/96)*
AVG. 86.18 76.08 6.41 5.82
LOW 82.51 72.63 6.20 5.61
Number of Funds/Average Sales Fee in Sample 8/5.82% 8/5.82%
Florida Series HIGH 90.23 79.87 6.64 6.04
(4/20/88-9/13/96)*
AVG. 84.63 74.82 6.32 5.74
LOW 81.70 71.87 6.15 5.56
Number of Funds/Average Sales Fee in Sample 9/5.70% 9/5.70%
Michigan Series HIGH N/A N/A N/A N/A
(6/13/90-2/15/96)*
AVG. N/A N/A N/A N/A
LOW N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample N/A N/A
New Jersey Series HIGH 89.68 81.19 6.61 6.12
(3/30/88-9/19/96)*
AVG. 84.17 74.45 6.29 5.72
LOW 80.91 71.12 6.10 5.52
Number of Funds/Average Sales Fee in Sample 7/5.66% 7/5.66%
New York Series HIGH 94.55 83.91 6.88 6.28
(1/14/88-10/16/96)*
AVG. 88.16 78.04 6.52 5.93
LOW 83.61 73.68 6.26 5.67
Number of Funds/Average Sales Fee in Sample 27/5.78% 27/5.78%
Pennsylvania Series HIGH 88.60 80.14 6.55 6.06
(5/19/88-9/13/96)*
AVG. 85.22 75.49 6.35 5.78
LOW 83.13 73.24 6.23 5.65
Number of Funds/Average Sales Fee in Sample 6/5.63% 6/5.63%
CORPORATE FUNDS
WITHOUT WITH WITHOUT WITH
SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE
------- ------ ------- ------
<S> <C> <C> <C> <C>
Long-Term Series HIGH N/A N/A N/A N/A
(11/2/88-10/1/96)*
AVG. N/A N/A N/A N/A
LOW N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample N/A N/A
Intermediate Series HIGH N/A N/A N/A N/A
(6/27/90-4/9/96)*
AVG. N/A N/A N/A N/A
LOW N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample N/A N/A
Insured Series HIGH N/A N/A N/A N/A
(5/23/91-8/7/96)*
AVG. N/A N/A N/A N/A
LOW N/A N/A N/A N/A
Number of Funds/Average Sales Fee in Sample 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
21
<PAGE>
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.
22
<PAGE>
Inception dates included in average figure. Series terminated prior to 9/30/99
are not included.
Please keep in mind the following factors 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 will fluctuate 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 are affected by, among other factors, the
financial condition of the issuer and general market factors. Bond prices vary
inversely with changes in interest rates, and even on government and insured
bonds, with minimal credit risk, 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 net realized gain is
subject to tax each year, whether or not these amounts are reinvested.
23
<PAGE>
EQUITY INVESTOR FUNDS
Select Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Defined Technology Portfolio(SM)
Institutional Holdings Portfolio
Principled Values Portfolio(SM)
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
Concept Series
Baby Boom Economy Portfolios(SM)
Energy Portfolio
Financial Services Portfolio
Health Care Trust
Internet Portfolio
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
ML Research-Based Funds
1999 Year-Ahead Domestic Portfolio
1999 Year-Ahead International Portfolio
Biotechnology Portfolio
Pacific Rim Portfolio
Index Series
S&P 500 Trust
S&P MidCap Trust
24
<PAGE>
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
Defined Asset Funds(SM)
Buy With Knowledge o Hold With Confidence
Please contact your Financial Consultant for a free prospectus containing more
complete information on any Defined Asset Fund, including sales charges,
expenses and risks. 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-10/99
(C) 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
25
