Defined Asset Funds(sm)
2nd Quarter
1999
IRA Ideal!
Select Ten Portfolio
[encircled Torch Logo]
A Defined Strategy for Total Return
[bull logo] Merrill Lynch
SELECTING INVESTMENTS FOR YOUR PORTFOLIO CAN BE COMPLICATED -- UNLESS YOU HAVE
A STRATEGY.
Maybe you've heard of "The Dow Ten" or even "The Dogs of the Dow." However you
refer to it, this contrarian strategy of investing each year in the ten highest
dividend-yielding stocks of the Dow Jones Industrial Average* (DJIA) looks for
value by selecting established stocks whose prices may be depressed. After all,
to a contrarian investor, bad news can be good news, and unfavorable
developments may create special opportunities.
The Strategy
The Select Ten Portfolio seeks total return by holding the ten highest
dividend-yielding stocks of the DJIA for about one year (the "Strategy").
As each Portfolio ends, you may choose to reinvest your proceeds into the next
Portfolio, if available, or you can redeem your investment. Although each
Portfolio is about a one-year investment, we recommend you stay with the
Strategy for at least three to five years for potentially more consistent
results.
Hypothetical Results
We analyzed the Strategy to see how it could have performed. The Strategy (with
Portfolio sales charges and expenses deducted) would have underperformed the
DJIA in 13 and the S&P 500 Index* in 12 of the last 26 years, and would have
produced a loss in five of those years.
Past Performance of Prior Select Ten Portfolios
<PAGE>
Past performance is no guarantee of future results.
Series From Inception Through 6/30/99
(including annual rollovers)
Inception Series Return
5/17/91 B 15.45%
1/3/92 A 15.88
9/1/92 C 19.65
7/22/96 3 21.38
11/1/96 5 16.48
1/2/97 J 14.40
2/25/97 1 13.50
4/28/97 2 14.18
9/3/97 4 14.83
Most Recently Completed Portfolio
Period Series Return
5/27/97--6/30/98 B 11.29%
1/28/98--3/5/99 A 5.33
9/22/97--10/23/98 C 6.79
7/28/97--8/28/98 3 1.59
11/10/97--12/18/98 5 6.66
1/6/98--2/8/99 J 8.80
3/2/98--4/9/99 1 2.65
5/4/98--6/4/99 2 2.47
9/3/97--10/2/98 4 2.02
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<PAGE>
The chart above shows average annual total returns which represent price
changes plus dividends reinvested, divided by the initial public offering
price, and reflects 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.
Defining Your Risks
Please keep in mind the following factors when considering this investment:
o The Portfolio is designed for investors who can assume the risks
associated with equity investments. It may not be appropriate for
investors seeking capital preservation or high current income.
o There can be no assurance that the Portfolio will meet its objective, that
dividend rates will be maintained, that stock prices will not decrease or
that the Portfolio will outperform the indices.
o The value of your investment will fluctuate with the prices of the
underlying stocks. Stock prices can be volatile.
o These stocks may have higher yields because they or their industries are
experiencing financial difficulties or are out of favor. There can be no
assurance that the market factors which caused these relatively low prices
and high yields will change.
o Owning units of the Portfolio may result in annual federal, state and
local taxes, some of which can be deferred by rolling over into the next
Portfolio, if available. Please consult your tax advisor.
Hypothetical Past Performance of the Strategy (not any Portfolio)
Growth of $10,000 Invested Over 25 Years -- 1/1/74 Through 6/30/99
Strategy........$546,225 DJIA........$347,602 S&P 500 Index.......$347,257
[Insert Mountain Graph]
For the 26 years ending 6/30/99, these figures would have been: Strategy
$529,378, DJIA $301,997 and S&P 500 Index $296,349.
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<PAGE>
Past performance of the Strategy is no guarantee of future results of any
Portfolio. Results shown represent price changes plus dividends reinvested at
year ends, and do not reflect deduction of any commissions or taxes. Only
Strategy performance reflects the deductions of Portfolio sales charges (2.75%
for the first year, 1.75% for each subsequent year) and estimated expenses.
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 different from those used in
determining Portfolio unit price, Portfolios are not fully invested at all
times and stocks may not be weighted equally. The Portfolio does not reflect
the research opinions or any buy or sell recommendations of any of the
Sponsors.
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* Dow Jones & Company, Inc., owner of the name "Dow Jones Industrial
Average," is unaffiliated with, and did not participate in the creation of
the Portfolio or the selection of its stocks, and has neither reviewed nor
approved any information in the prospectus relating to the Portfolio. "S&P
500 Index" is a trademark of The McGraw-Hill Companies, Inc.
Select Now!
You can get started with the Select Ten Portfolio for about $250. Simply return
the attached coupon to receive a free copy of our brochure. Ask your financial
professional for a free prospectus containing more complete information on the
Select Ten Portfolio, including sales charges, expenses and risks. Please read
it carefully before you invest or send money.
Yes! I would like more information on the Select Ten Portfolio from Defined
Asset Funds.
The information in this mailer 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 mailer 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.
[recycling logo] Printed on Recycled Paper
15360NI-7/99
(C) 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
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