IRA Ideal!
Defined Asset Funds
Select Ten Portfolio
International
1999 United Kingdom Portfolio
Series A
[ML logo] Merrill Lynch
SELECTING INVESTMENTS FOR YOUR PORTFOLIO CAN BE
COMPLICATED -- UNLESS YOU HAVE A STRATEGY
The Strategy
International equity markets can offer attractive growth potential and help
investors diversify their portfolios. The United Kingdom's markets are
reflected in the performance of the Financial Times Industrial Ordinary Share
Index* (FT Index).
The Portfolio seeks total return by holding the ten highest dividend-yielding
stocks of the FT Index for about one year (the "Strategy").
The Portfolio looks for potential values in the equity market by investing in
established companies whose prices may be depressed. It consists of
approximately equal values of the ten stocks in the FT Index with the highest
dividend yields at the time of the offering.
Each year, we intend to reapply the screening process to select a new
Portfolio. You can reinvest in the next Portfolio, if available, at a reduced
sales charge, or you can redeem your investment. Although each Portfolio is a
one-year investment, we recommend you stay with the Strategy for at least three
to five years for more consistent results.
Advantages for U.S. Investors
o Semi-annual dividends. Investors receive two consolidated checks per year,
not 20 for the 10 stocks, and payments are in U.S. dollars.
o Reinvestment. You may choose to reinvest your dividends at a reduced sales
charge to compound your income.
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o Purchase Option. Investments start at about $250 with sales charge
discounts available for purchases of $50,000 or more.
o No sell decisions. You are buying and holding for about a year, a
Portfolio of established companies with relatively high dividend yields.
o Tax-Efficient. On rollovers to future portfolios, if available, you will
defer recognition of gains and losses that are transferred to the new
Portfolio.
Select Ten International United Kingdom Portfolio -- 1999 Series A1(1)
Current
Dividend
Name of Issuer Yield(2)
1. Imperial Chemical Industries PLC 6.18%
2. Allied Domecq PLC 5.22
3. Peninsular & Oriental Steam Navigation Company 4.61
4. British Airways PLC 4.54
5. Royal & Sun Alliance Insurance Group PLC 4.51
6. Tate and Lyle PLC 4.47
7. Blue Circle Industries PL 4.44
8. EMI Group PLC 4.00
9. Marks & Spencer PLC 3.91
10. BOC Group PLC 3.59
The Portfolio does not reflect the research opinions or any buy or sell
recommendations of any of the Sponsors.
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(1) Initial date of deposit -- February 3, 1999
(2) Current dividend yield for each security was calculated by adding the
most recent interim and final dividends declared on that security and dividing
the result by its market value as of the close of trading on February 3, 1999.
There can be no assurance that future dividends, if any, will be maintained at
the indicated rates.
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Past Performance of Prior Select Ten International United Kingdom Portfolios
Past performance is no guarantee of future results.
Series From Inception Through 12/31/98 Most Recently Completed Portfolio
(including annual rollovers)
Inception Return Period Return
6/21/93 Series B 8.11% 5/27/97-6/30/98 Series B 31.56%
9/28/93 Series C 7.83 9/22/97-10/23/98 Series C 3.85
1/5/94 Series A 6.16 1/27/97-2/27/998 Series A 16.97
7/22/96 Series 3 15.59 7/28/97-8/28/98 Series 3 19.78
11/1/96 Series 5 11.08 11/10/97-12/18/98 Series 5 6.98
2/25/97 Series 1 14.78 2/25/97-3/27/98 Series 1 29.25
The chart above shows average annual total returns which represent price
changes plus dividends reinvested, divided by the initial public offering
price, and reflect maximum sales charges and expenses. Returns for Series From
Inception will differ from Most Recently Completed Portfolio because the former
figures reflect a reduced sales charge on annual rollovers and different
performance periods.
*The publisher of the Financial Times Index has not participated in any way in
the creation of the Portfolio or in the selection of its stocks nor approved any
information included in this brochure.
[logo] Select Ten Portfolio
United Kingdom
International Series
Financial Times Index
The FT Index consists of 30 common stocks chosen by the editors of The
Financial Times (London) to be representative of British industry and commerce.
The companies are major players in their industries and their stocks are widely
held by individual and institutional investors. The FT Index is an unweighted
average of the share prices of these companies:
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Allied Domecq
ASDA Group
BG
BOC Group
BP Amoco
BTR Siebe3
Blue Circle Industries
Boots Company
British Airways
British Telecommunications
Cadbury Schweppes
Diageo
EMI Group
General Electric Company
Glaxo Wellcome
GKN
Glaxo Wellcome
Granada
Imperial Chemical Industries
Lloyds TSB
Lucas Varity
Marks & Spencer
National Westminster Bank
Peninsular and Oriental Steam Navigation Company
Prudential Corporation
Reuters Group
Royal & Sun Alliance Insurance
Scottish Power
SmithKline Beecham
Tate & Lyle
Vodafone Group
Hypothetical Past Performances of the Strategy (not any Portfolio)
Growth of $10,000 invested 1/1/79 through 12/31/98
[A mountain chart compares the cumulative annual performance from 1/1/79
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(3) As of 2/4/99, BTR was replaced with BTR Siebe
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through 12/31/98 of the Strategy(4) (ochre) and the FT Index (purple). An ochre
box in the upper left quadrant indicates the components of the Strategy
performance section of the chart ("net of sales charges and expenses"). The
horizontal (X) axis compares the cumulative annual performance by year, from
'79 through '98. The vertical (Y) axis reflects the dollar amount value for
each index from $0 through $400,000. The initial value of each investment is
$10,000. Throughout the aforementioned period, increases in each investment
builds towards the Y axis. At the end of this period, the Y axis reflects the
ending value of the Strategy ($332,809) and the FT Index ($154,599).]
Since stocks in the Portfolio were chosen solely by applying the Strategy, we
analyzed the Strategy to see how it could have performed. Past performance of
the Strategy is no guarantee of future results of any Portfolio. The Strategy
would have underperformed the FT Index in 8 of the last 20 years. There can be
no assurance that any Portfolio will outperform the Index.
Annual Total Returns
Strategy returns are net of sales charges and expenses.
Year Strategy(4) FT Index Year Strategy(4) FT Index
1979 1.50% 3.59 1990 7.14 10.29
1980 28.25 31.77 1991 14.56 14.65
1981 -8.70 -5.30 1992 2.09 -2.33
1982 42.32 0.42 1993 35.96 18.40
1983 40.35 21.94 1994 3.32 1.89
1984 3.33 2.15 1995 8.67 17.63
1985 77.20 54.74 1996 12.27 20.05
1986 31.09 24.36 1997 10.03 16.98
1987 46.45 38.99 1998 21.58 10.81
1988 9.31 6.74
1989 26.87 22.80 Average 19.15% 14.67%
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(4) Net of Portfolio sales charge (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses.
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Returns shown represent price changes plus dividends reinvested at year ends,
divided by the initial public offering price, and do not reflect the deduction
of any commissions or taxes. Changes in the exchange rate of the pound sterling
relative to the U.S. dollar affected these figures significantly in certain
years. These changes ranged from -20% in 1984 to +27% in 1987, and averaged
- -0.11% over the last 20 years.
Portfolio performance will differ from the Strategy because of commissions,
Portfolios are established and liquidated at different times during the year,
they normally purchase and sell stocks at prices and currency exchange rates
different from those used in determining Portfolio unit price, they are not
fully invested at all times and stocks may not be weighted equally. Portfolio
results of the value-oriented strategy may vary from the FT Index for various
reasons. For example, FT Index performance may be driven by stocks not held in
the Portfolio, such as growth stocks.
Defining Your Risks
Please keep in mind the following factors when considering this investment.
Your financial professional will be happy to answer any questions you may have.
o The Portfolio should not be considered a complete investment program and
may be considered speculative.
o The Portfolio may not be appropriate for investors seeking either
preservation of capital or high current income, nor would it be suitable
for investors unable or unwilling to assume the increased risks of higher
price volatility and currency fluctuations associated with investments in
international equities.
o There can be no assurance that the Portfolio will meet its objective, that
dividend rates will be maintained or that stock prices or currency
exchange rates will not decline.
o The value of your investment will change with the prices of the underlying
stocks and currency exchange rates. The prices of United Kingdom stocks
fluctuate widely.
o These stocks may have higher yields because they or their industries are
experiencing financial difficulty or are out of favor. There can be no
assurance that the market factors that caused these relatively low prices
and high yields will change.
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Tax Reporting
The proceeds received when you sell this investment will reflect the deduction
of the deferred sales charge and, after the initial offering period, the charge
for organizational costs.
In addition, the annual statement and the relevant tax reporting forms you
receive at year-end will be based on the amount paid to you, net of the
deferred sales charge and, after the initial offering period, the charge for
organizational costs. Accordingly, you should not increase the tax basis in
your units by these charges. U.S. investors will include in income their share
of dividends, grossed up for certain taxes paid by U.K. issuers; however, they
may not be able to obtain refunds for such taxes.
Generally, dividends and any gains will be subject to tax each year, whether or
not reinvested. Capital gains, if any, on assets held over a year will be taxed
up to the maximum federal tax rate of 20% for individuals. However, on
rollovers of future Portfolios, if available, investors will defer recognition
of gains and losses for federal tax purposes on stocks that are transferred to
the new Portfolio. Please consult your tax advisor concerning state and local
taxation.
Defining Your Costs
First-time investors pay an initial sales charge of about 1% when they buy. In
addition, all investors pay a deferred sales charge of $17.50 per 1,000 units,
about 1.75%, deducted over the last ten months of the Portfolio.
As a % of Public Amount Per
Offering Price 1,000 Units
- --------------------------------------------------------------------------------
Initial Sales Charges 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
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Maximum Sales Charge 2.75% $27.50
Estimated Annual Operating Expenses 0.206% $2.04
(as a % of net assets)
Estimated Organizational Costs $1.43
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If you sell your units before termination, the remaining balance of your
deferred sales charge will be deducted, along with the estimated costs of
selling Portfolio securities from the proceeds you receive. If you roll over to
a successor Portfolio, if available, the initial charge will be waived. You
will only pay the deferred sales charge.
Volume Purchase Discounts
For larger purchases, the overall sales charge are reduced to put more of your
investment dollars to work for you.
Amount Total Sales Charge as a % of
Purchased Public Offering Price
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Less than $50,000 2.75%
$50,000 to $99,999 2.50%
$100,000 to $249,999 2.00%
$250,000 to $999,999 1.75%
$1,000,000 or more 1.00%
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Don't Delay
You can get started today with the Select United Kingdom Portfolio for about
$250. Call you financial professional for a free prospectus containing more
complete information, including sales charges, expenses and the special
considerations associated with the risks of international investing including
currency risk. Please read it carefully before you invest or send money.
The information contained 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 their offer or sale is not
permitted.
Other Select Series
Select Ten Portfolio (DJIA)
Select Growth Portfolio
Select S&P Industrial Portfolio
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<PAGE>
Select S&P Industry Turnaround Portfolio
Select Standard & Poor's Intrinsic Value Portfolio
Concept Series
Health Care Trust (Pharmaceutical & Biotechnology Portfolio)
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Index Series
S&P 500 Trust
S&P MidCap Trust
Fixed-Income Funds
Corporate Funds
Government Funds
Municipal Funds
[Recycling logo] Printed on Recycled Paper
11341BR-2/99
[Copyright logo] 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC.
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