IRA Ideal!
DEFINED ASSET FUNDS
SELECT GROWTH PORTFOLIO
1999 Series A
A Disciplined Approach to Growth Stock Investing
[logo] Merrill Lynch
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SELECT GROWTH PORTFOLIO
Deciding which investments may support your long-term investment objectives at
a level of risk that is acceptable to you can be difficult. This is
particularly true if you're interested in incorporating aggressive growth
stocks into your portfolio. While many mutual funds and money managers follow a
"growth stock" investment style, there is no generally accepted definition of a
growth stock and no easy way to select them. That's why we've developed the
Select Growth Portfolio. It's designed to provide definition and discipline to
aggressive growth stock investing.
How The Portfolio Was Selected
A quantitative selection model was developed by O'Shaughnessy Capital
Management, Inc., a registered investment advisor (the Portfolio Consultant).
This model was used to screen a universe of over 5,000 stocks and identify
growth stocks believed to be reasonably priced with an attractive growth
potential.
Here's How It Worked:
First, growth was defined by selecting stocks with consensus estimated earnings
per share growth of 20% for the next year. Then, to give a longer-term view and
to avoid short-term run ups, the Portfolio Consultant screened for a 20%
estimated consensus earnings per share growth for the next three to five years.
Second, value was considered by selecting growth stocks with Price to Earnings
Ratios not exceeding their estimated three to five year earnings growth rates.
This was to remove expensive stocks.
Third, relative strength was determined by separating out stocks with strong
price performance over the prior six months.
Fourth, the Portfolio Consultant weeded out the smaller companies with market
capitalization below $750 million.
Finally, the 10 stocks considered most attractive were selected by the Sponsors.
The securities will be selected and held without regard to any buy or sell
recommendations of any of the Sponsors.
Investor Profile
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This Portfolio is designed for investors whose primary objective is long-term
growth. The investor should have the willingness and ability to withstand
extreme price volatility from aggressive growth stocks for the potential of
greater rewards over time. Investors are encouraged to follow the Strategy for
at least three to five years.
Past Performance of Prior Select Growth Portfolios
Past performance is no guarantee of future results.
Series From Inception Through 12/31/98
(including annual rollovers)
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Inception Return
2/14/95 Series A 20.13%
6/06/95 Series B 18.08
8/01/95 Series C -4.07
11/01/95 Series D 6.07
Most Recently Completed Portfolio
Period Return
2/10/97-3/13/98 Series A 33.77%
5/12/97-6/19/98 Series B 32.10
8/18/97-9/18/98 Series C -23.74
11/17/97-12/18/98 Series D -28.98
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 differ from Most Recently Completed Portfolio because the former
figures reflect a reduced sales charge on annual rollovers and different
performance periods.
Defined Asset Funds -- Time in the Market
We believe that the disciplined strategy of buying and holding securities with
a long-term view can help meet your investment needs. For income, for growth,
or
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for total return, time in the market can be an effective strategy for growing
your portfolio. This philosophy is the cornerstone of Defined Asset Funds.
The Strategy
The Select Growth Portfolio is based on the Strategy of buying ten screened
growth stocks and holding them for about a year. At the end of the year, we
expect to select a new Portfolio through reapplication of the Strategy. You can
reinvest in the next Portfolio, if available, at a reduced sales charge, or you
can redeem your investment.
This is a one-year investment but, like all equity investing, a longer-term
view is appropriate. To reduce the effect of short-term volatility, we
recommend following the Strategy for at least three to five years for
potentially more consistent results.
Portfolio Defined
This pre-selected Portfolio will remain relatively fixed throughout its
one-year life. You will always know how your dollars are invested.
Convenience Defined
There's no need for multiple security purchases. Defined Asset Funds offers
diversification among ten stocks, with one easy price to track -- quoted weekly
in Barron's.
No Sell Decisions
The Portfolio will follow a disciplined strategy of buying and holding for
about one year. You may also have the option of reinvesting after a year, at a
reduced sales charge, to continue with the Strategy.
Exchange Option
You can exchange units of these funds for units of certain other Defined Asset
Funds. You may also exchange into these funds from certain other funds at a
reduced sales charge.
Purchase Option
Investments start at about $250 with sales charge discounts available for
purchases of $50,000 or more.
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The Portfolio
(1) American Eagle Outfitters, Inc. (AEOS)
Specialty retailer of men's and women's casual apparel, footwear, outerwear and
accessories including dungarees, khakis, and T-shirts. The company operates
approximately 380 retail stores throughout the U.S.
(2) American Power Conservation Corporation (APCC)
Designs, develops, manufactures, and markets uninterruptible power supply
products with its subsidiaries. Products include electrical surge protection
devices, power conditioning products and associated software.
(3) Autodesk, Inc.(1) (ADSK)
Supplies PC software and multimedia tools that are sold worldwide. The
company's products are used by industries and in the home for architectural and
mechanical design, spatial data management, mapping, animation and
visualization applications.
(4) Biogen, Incorporated (BGEN)
Develops, manufactures and markets drugs for human health care. The company
focuses on developmental biology and gene therapy and sells a treatment for
relapsing forms of multiple sclerosis.
(5) CDW Computer Centers, Inc. (CDWC)
Markets brand name microcomputer products including hardware and peripherals,
software, networking products and accessories.
(6) Chiron Corporation (CHIR)
An international biopharmaceutical company which discovers, develops, and
markets drugs used for a variety of disorders, such as AIDS, cancers and
cardiovascular diseases.
(7) Papa John's International, Inc. (PZZA)
Operates and franchises pizza delivery and carry-out restaurants under the "Papa
John's" trademark. The company operates 1,530 restaurants in 41 states and the
District of Columbia.
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* Only this stock currently pays dividends; the current annual dividend
per share is $0.24 based in the latest quarterly declaration. There can be no
assurance that future dividend payments, if any, will be maintained in an
amount equal to this dividend.
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(8) QUALCOMM, Inc. (QCOM)
Develops, manufactures, markets, licenses and operates communications systems
and products based on its proprietary digital wireless technologies.
(9) Sanmina Corporation (SANM)
Provides electronic contract manufacturing services to a diversified base of
original equipment manufacturers. These services include the manufacturing of
complex printed circuit board assemblies, multi-layered printed circuit boards
and custom cable and wire harness assemblies as well as the testing and
assembly of electronic sub-systems and systems.
(10) Sylvan Learning Systems, Inc. (SLVN)
Provides educational services to families, school and industries. Delivers
computer-based testing for academic admissions and professional certification
programs. Sylvan also provides instructional services to students, educational
and professional development services under contract to school systems.
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 consists of aggressive growth stocks which are subject to
extreme price volatility. Therefore, the Portfolio should be considered
speculative and not a complete equity investment program.
o The Portfolio is designed for investors who can assume the risks
associated with speculative equity investments. It is not appropriate for
those seeking capital preservation or high current income
o The value of your investment will fluctuate with the prices of the
underlying stocks. Stock prices can be volatile
o The model and the Portfolio Consultant have a limited track record. Since
February 1995, when the first Portfolio was offered, the model has
generally underperformed the S&P 500 Index and other equity indices.
o It is unlikely that the Portfolio will change over its one-year life, even
if the stock market decreases in value or there are adverse developments
affecting the stocks held.
Tax Reporting
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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 organization 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 the charge for organization costs, after the initial
offering period. Accordingly, you should not increase the tax basis in your
units by these charges.
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
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Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
Maximum Sales Charge 2.75% $27.50
Estimated Annual Operating
Expenses (as a % of net assets) 0.178% $1.76
Estimated Organization Costs $2.74
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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 your 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 Documents
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For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Amount Total Sales Charge as a %
Purchased of 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 ro $999,999 1.75%
$1,000,000 or more 1.00%
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Select Now!
You can get started today with the Select Growth Portfolio for about $250. Call
your financial professional for a free prospectus containing more complete
information, including all sales charges, expenses and risks. Please read it
carefully before you invest or send money.
DEFINED ASSET FUNDS
Buy With Knowledge o Hold With Confidence
EQUITY INVESTOR FUNDS
Other Select Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Select S&P Industrial Portfolio
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
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Index Series
S&P 500 Trust
S&P MidCap Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Trusts
[logo] Printed on Recycled Paper 11591BR-2/99
[copyright symbol] 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC.
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