Defined Asset FundsSM
Select Series
1999
B
IRA Ideal!
Select Growth Portfolio
A Disciplined Approach
to Growth Stock Investing.
[logo] Merrill Lynch
How the Portfolio is Selected
O'Shaughnessy Capital Management, Inc., a registered investment advisor (the
Portfolio Consultant), developed a quantitative selection model that screens a
universe of over 5,000 stocks to identify growth stocks believed to be
reasonably priced with attractive growth potential.
Here's how it works:
1 Growth is 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 screens for a 20%
estimated consensus earnings per share growth for the next three to five years.
2 Value is considered by selecting growth stocks with Price to Earnings
Ratios not exceeding their estimated three to five year earnings growth rates.
This removes expensive stocks.
3 Relative strength is determined by separating out stocks with strong
price performance over the prior six months.
4 The Portfolio Consultant eliminates smaller companies with market
capitalizations below $750 million.
Finally, the ten stocks considered most attractive are selected by the
Sponsors.
The securities are selected and held without regard to any buy or sell
recommendations of any of the Sponsors.
Deciding which investments may support your long-term investment objectives at
an acceptable risk level 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 Defined Asset FundsSM developed a
portfolio designed to provide definition and discipline to aggressive growth
stock investing...
The Select Growth Portfolio
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 by reapplying 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 preselected 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 follows a disciplined strategy of buying and holding stocks 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 this Fund for units of certain other Defined Asset
Funds. You may also exchange into this Fund from certain other funds at a
reduced sales charge.
Purchase Option
Investments start at about $250, with sales charge discounts available for
volume purchases of $50,000 or more.
Investor Profile
This Portfolio is designed for investors whose primary objective is long-term
growth. Investors should have the will and ability to withstand the extreme
price volatility of aggressive growth stocks for the potential of greater
rewards over time. We encourage you to follow the Strategy for at least three
to five years for potentially more consistent results.
A DEFINED PORTFOLIO
Company Symbol
American Eagle Outfitters, Incorporated AEOS
Specialty retailer of teen casual apparel, footwear,
outerwear and accessories including dungarees, khakis
and t-shirts. The company operates approximately 380
retail stores throughout the U.S.
Best Buy Company, Incorporated BBY
Retail chain that operates over 300 stores in more than
36 states. The company sells a variety of products
including consumer electronics, home office equipment,
entertainment software and appliances.
CKE Restaurants, Incorporated * CKR
Owns, operates and franchises quick-service restaurants.
The company operates 3,800 restaurants, primarily under
the "Hardee's" and "Carl's Jr." names.
Compuware Corporation CPWR
Develops mainframe computer software systems,
systems management tools and systems analysis
programs for large businesses in various industries
including financial, manufacturing, telecommunications
and health care.
Gateway 2000, Incorporated GTW
Manufactures personal computers and related products
and sells them via direct computer marketing, rather than
through more conventional means such as resellers.
MacDermid, Incorporated* MRD
Distributes chemical materials produced by other
companies and manufactures a wide range of its own
chemical products for use in electronics, graphic arts and
metal and plastic finishings. The company maintains
operations in 19 countries and markets more than 1,000
proprietary chemical compounds.
Nokia Corporation*+ NOK
Global telecommunications company specializing in the
production of digital cellular telephones. With
operations in over 12 countries, Nokia ranks among the
world's largest suppliers of digital and analog cellular
phones, multimedia digital satellites and cable network
systems.
Quantum Corporation QNTM
Produces disk drives for top computer manufacturers and
markets them internationally.
Symantec Corporation SYMC
Global software company that develops computer
security software, remote productivity solutions and
related Internet tools. The company partners with some
of the largest companies in the technology industry in
order to expand market share.
Transaction Systems Architects, Incorporated TSAI
Provides electronic funds transfer solutions for
companies that process transactions involving ATMs,
home banking, credit and debit cards, smart cards and
wire transfers. The company markets its software
products in over 70 countries.
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* Only these stocks currently pay dividends. The current annual
dividends per share for the Securities in Portfolio numbers 3,6 and
7 are $0.08, $0.08 and $0.4396, respectively, based on the latest
quarterly, semi-annual or annual declaration. There can be no
assurance that future dividend payments, if any, will be maintained
in an amount equal to these dividends.
+ The issuer is a foreign corporation; any dividends will be subject to
withholding taxes.
Past Performance of Prior Select Growth Portfolios
Past performance is no guarantee of future results.
Series From Inception Through 3/31/99
(including annual rollovers)
...................................................................
Inception Series Return
2/14/95 Series A 22.04%
6/6/95 Series B 11.95
8/1/95 Series C -5.24
11/1/95 Series D 5.11
Most Recently Completed Portfolio
...................................................................
Period Series Return
2/17/98- Series A 26.37%
3/19/99
5/12/97- Series B 32.10
6/19/98
8/18/97- Series C -23.74
9/18/98
11/17/97- Series D -28.98
12/18/98
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 -- Our Philosophy
At Defined Asset Funds, we are ever mindful that behind every investment
dollar lies something infinitely more important--your investment goal. This is
why we offer a full range of defined investments designed to meet a variety of
objectives.
We are committed to providing our investors with some of today's most
attractive equity and fixed-income investments, within the convenient "buy and
hold" structure of a Unit Investment Trust. For income, for growth or for
total return, we believe that time in the market can be an effective strategy
for growing your portfolio.
At Defined Asset Funds, we set the foundation for all of our portfolios in
this way, because we too have an important goal in mind--yours.
DEFINED ASSET FUNDS(SM)
Buy With Knowledge o Hold With Confidence
EQUITY INVESTOR FUNDS
Other Select Series
Select Ten Portfolio (DJIA)
Select United Kingdom Portfolio (Financial Times Index)
Select Amex Institutional 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 PortfoliosSM
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 Index Trust
S&P MidCap Index Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Trusts
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 sales charges, expenses and risks. Please
read it carefully before you invest or send money.
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 There can be no guarantee that the Portfolio will meet its objective.
o The Portfolio is designed for investors who can assume the risks associated
with speculative equity investments. It is not appropriate for investors
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
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, after the initial offering period, the charge for
organization costs. 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. Net capital gains, if any, on assets held over a year may
qualify for a favorable federal tax rate (currently no more than 20%) for
individuals. However, on rollovers to 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 Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
Maximum Sales Charge 2.75% $27.50
Estimated Annual Expenses
(as a % of net assets) 0.182% $1.80
Estimated Organization Costs $3.15
- ----------------------------------------------------------------------------
If you sell your units before the termination date, 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 sales charge will be
waived. You will only pay the deferred sales charge.
Volume Purchase Discounts
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
--------------------------------------------------------------
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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[logo] Printed on Recycled Paper 11591BR-5/99
[copyright symbol] 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC.
