Defined Asset Funds(sm)
Performance Summary
2nd Quarter 1999
IRA Ideal!
Select Ten Portfolio
[encircled torch logo]
A Defined Strategy
for Total Return
[bull logo] Merrill Lynch
THE SELECT TEN PORTFOLIO o PERFORMANCE SUMMARY 2ND QUARTER o 1999
SELECT TEN HIGHLIGHTS-----------------------------------------------------------
o Quarterly Dividends
You will receive four consolidated checks per year, not 40 for the ten
stocks.
o Reinvestment
You may choose to reinvest your dividends at a reduced sales charge to
compound your income.
o Cost
Investments start at about $250 with sales charge discounts available
for volume purchases of $50,000 or more.
o Buy and Hold
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 on stocks that are transferred to the
new Portfolio.
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Past Performance of Prior Select Ten Portfolios
Past performance is no guarantee of future results.
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Series From Inception Through 6/30/99
(including annual rollovers)
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Inception Series Return
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5/17/91 B 15.45%
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1/3/92 A 15.88
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9/1/92 C 19.65
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7/22/96 3 21.38
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11/1/96 5 16.48
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1/2/97 J 14.40
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2/25/97 1 13.50
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4/28/97 2 14.18
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9/3/97 4 14.83
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Most Recently Completed Portfolio
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Period Series Return
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5/27/97--6/30/98 B 11.29%
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1/28/98--3/5/99 A 5.33
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9/22/97--10/23/98 C 6.79
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7/28/97--8/28/98 3 1.59
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11/10/97--12/18/98 5 6.66
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1/6/98--2/8/99 J 8.80
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3/2/98--4/9/99 1 2.65
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5/4/98--6/4/99 2 2.47
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9/3/97--10/2/98 4 2.02
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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.
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
Growth of $10,000 Invested Over 26 Years -- 1/1/73 Through 6/30/99
[A mountain chart compares the hypothetical past performance from 1/1/73 through
6/30/99 of the Strategy (ochre), the Dow Jones Industrial Average (DJIA) (pink),
and the S&P 500 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 1/1/73 through 6/30/99. The vertical
(Y) axis reflects the dollar amount value. The initial value of each investment
is $10,000. Throughout the aforementioned period, increases in each investment
build towards the Y axis. At the end of this period, the Y axis reflects the
ending value of the Strategy ($529,378), the ending value of the DJIA
($301,997), and the ending value of the S&P 500 Index ($296,349).]
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
(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. There can be no
assurance that any Portfolio will outperform either Index. The Portfolio does
not reflect the research opinions or any buy or sell recommendations of any of
the Sponsors.
Average Annual Total Returns
For periods ending 12/31/98
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3 year 5 year 10 year 15 year 20 year 25 year
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Strategy* 17.73% 17.51% 16.12% 16.74% 17.49% 16.78%
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DJIA 23.71% 22.08% 18.62% 17.71% 17.14% 14.40%
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S&P 500 Index 27.97% 23.82% 19.03% 17.74% 17.50% 14.71%
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Annual Total Returns
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Year Strategy* DJIA S&P 500 Index
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1973 -4.08% -13.12% -14.66%
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1974 -2.40 -23.14 -26.47
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1975 55.65 44.40 36.92
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1976 33.25 22.72 23.53
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1977 -2.90 -12.71 -7.19
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1978 -1.91 2.69 6.39
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1979 10.48 10.52 18.02
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1980 24.69 21.41 31.50
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1981 5.51 -3.40 -4.83
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1982 23.78 25.79 20.26
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1983 36.93 25.68 22.27
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1984 5.41 1.06 5.95
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1985 27.00 32.78 31.43
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1986 32.96 26.91 18.37
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1987 5.06 6.02 5.67
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1988 22.44 15.95 16.58
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1989 25.65 31.71 31.11
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1990 -10.14 -0.57 -3.20
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1991 31.81 23.93 30.51
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1992 6.44 7.34 7.67
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1993 25.30 16.72 9.97
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1994 1.95 4.95 1.30
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1995 34.97 36.48 37.10
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1996 26.34 28.57 22.69
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1997 19.92 24.78 33.10
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1998 8.55 18.00 28.34
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6/30/99 12.97 20.37 12.33
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Average 16.16% 13.72% 13.64%
The results shown are hypothetical past performance of the Strategy (not any
Portfolio) and are no guarantee of future results. Returns represent price
changes plus dividends reinvested at year ends, divided by the initial public
offering price and do not reflect deduction of any commissions or taxes.
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.
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* Net of Portfolio sales charges (2.75% for the first year, 1.75% for each
subsequent year) and estimated expenses.
+ 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 this brochure or the prospectus relating to the
Portfolio. "S&P 500 Index" is a trademark of The McGraw-Hill Companies, Inc.
[encircled flag logo with "Select Ten Portfolio DJIA" written around circle]
The Strategy
The Select Ten Portfolio employs a strategy of investing in the ten highest
dividend-yielding stocks in the DJIA and holding them for about one year. As
each Portfolio ends, you may choose to reinvest your proceeds into the next
Portfolio of the then-current Strategy stocks, if available, or you can redeem
your
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investment at the then-current net asset value. Although each Portfolio is a
one-year investment, we recommend you stay with the Strategy for at least three
to five years for potentially more consistent results.
The Dow Jones Industrial Average
The Dow Jones Industrial Average+ consists of 30 common stocks chosen by the
editors of The Wall Street Journal as representative of the New York Stock
Exchange and of American industry. These companies are highly capitalized, and
their stocks are widely held by both individual and institutional investors. The
current companies are:
Alcoa Hewlett-Packard
Allied Signal IBM
American Express International Paper
AT&T Johnson & Johnson
Boeing J.P. Morgan & Co.
Caterpillar McDonald's
Chevron Merck
Citigroup Minnesota Mining &
Coca-Cola Manufacturing (3M)
Du Pont Philip Morris
Eastman Kodak Procter & Gamble
Exxon Sears Roebuck & Co.
General Electric Union Carbide
General Motors United Technologies
Goodyear Wal-Mart Stores
Walt Disney
Select Today!
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You can get started with the Select Ten 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.
[logo: oval containing "Defined Asset Funds" inside and "Buy With Knowledge o
Hold With Confidence" wrapping around bottom edge of logo]
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 is designed for investors who can assume the risks associated
with equity investments, and 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.
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 their offer or sale is not permitted.
[recycling logo] Printed on Recycled Paper
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70109SJ-7/99
(C) 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
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