Defined Asset Funds Select Series Income & Growth
1999 Quantitative Research
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IRA Ideal!
Select
Ten
Portfolio
A Defined Strategy
Designed for Total Return
Merrill Lynch
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Selecting investments for your portfolio can be complicated -- a strategy can
help.
The Strategy
The Select Ten Portfolio seeks total return by holding the ten highest
dividend-yielding stocks of the Dow Jones Industrial Average(1) (DJIA) for
about one year (the "Strategy").
The Portfolio looks for potential values through a contrarian approach of
investing in companies whose stocks show the highest yields, indicating that
their prices may be depressed. Because we limit the field of potential stock
to those in the DJIA, the Portfolio is selected from a group of large,
well-established companies whose financial strength makes it possible for them
to recover from these low prices. This basic strength is essential to the
Strategy.
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 potentially more consistent results.
It's Convenient
Invest in a fixed Portfolio of widely held stocks with just one purchase and
enjoy the advantages of:
* Quarterly Dividends. You will receive four consolidated checks
per year, not 40 for the ten stocks.
* Reinvestment. You may choose to reinvest your distributions at a
reduced sales charge to compound your income.
* Cost. Investments start at about $250, with sales charge discounts
available for purchases of $50,000 or more.
* Buy and Hold. You are buying and holding, for about a year, a
portfolio of established companies with relatively high dividend
yields.
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1 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.
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* Tax-Efficiency. On rollovers to future Portfolios, if available,
you will defer recognition of gains and losses on stocks that are
transferred to the new Portfolio.
Select Ten Portfolio -- 1999 Series 4+
Name of Issuer Ticker Current Dividend
Symbol Yield++
1. Philip Morris Companies, MO 5.08%
Inc.
2. J.P. Morgan & Company, Inc. JPM 3.09
3. General Motors Corporation GM 3.09
4. Sears Roebuck & Company S 2.70
5. Chevron Corporation CHV 2.55
6. Eastman Kodak Company EK 2.41
7. Minnesota Mining & MMM 2.29
Manufacturing Company
8. Caterpillar Inc. CAT 2.29
9. Goodyear Tire & Rubber GT 2.17
Company
10. Du Pont (E.I.) De Nemours & DD 2.13
Company
The Portfolio does not reflect the research opinions or any buy or sell
recommendations of any of the Sponsors.
+ Initial date of deposit -- September 13, 1999.
++ Current dividend yield for each security was calculated by annualizing
the last monthly, quarterly or semi-annual ordinary dividend received on
that security and dividing the result by its market value as of the close
of trading on September 10, 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 Portfolios
Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
Series From Inception Through Most Recently Completed Portfolio
6/30/99
<S> <C> <C> <C> <C> <C>
(including annual rollovers)
Inception Series Return Period Series Return
5/17/91 B 15.45% 5/27/97-6/30/98 B 11.29%
1/3/92 A 15.88 1/28/98-3/5/99 A 5.33
9/1/92 C 19.65 9/22/97-10/23/98 C 6.79
7/22/96 3 21.38 7/28/97-8/28/98 3 1.59
11/1/96 5 16.48 11/10/97-12/18/98 5 6.66
1/2/97 J 14.40 1/6/98-2/8/99 J 8.80
2/25/97 1 13.50 3/2/98-4/9/99 1 2.65
4/28/97 2 14.18 5/4/98-6/4/99 2 2.47
9/3/97 4 14.83 9/3/97-10/2/98 4 2.02
</TABLE>
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.
Select Ten Portfolio
DJIA
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.
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The current companies are:
Alcoa
Allied Signal
American Express
AT&T
Boeing
Caterpillar
Chevron
Citigroup
Coca-Cola
Du Pont
Eastman Kodak
Exxon
General Electric
General Motors
Goodyear
Hewlett-Packard
IBM
International Paper
Johnson & Johnson
J.P. Morgan
McDonald's
Merck
Minnesota Mining & Manufacturing (3M)
Philip Morris
Procter & Gamble
Sears Roebuck
Union Carbide
United Technologies
Wal-Mart Stores
Walt Disney
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
[A mountain chart, captioned "Growth of $10,000 Invested Over 26 Years-1/1/73
Through 6/30/99", compares the cumulative annual performance from 1973 through
1999 between the Strategy (net of sales charges and expenses) (orange), the
DJIA (pink), and the S&P 500 Index (purple). The y axis reflects years in one
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year increments. The initial value of each is $10,000; the ending values are
as follows: $529,378 (Strategy); $301,997 (DJIA); $296,349 (S&P 500).]
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.
Portfolio results of this equally-weighted value-oriented Strategy may differ
from the capitalization-weighted DJIA for various reasons. For example, the
DJIA performance may be driven by stocks not held in the Portfolio, such as
growth stocks.
Annual Total Returns
Strategy returns are not of sales charges and expenses.(+)
<TABLE>
Year Strategy(*) DJIA S&P 500 Year Strategy(+) DJIA S&P
Index 500
Index
<S> <C> <C> <C> <C> <C> <C> <C>
1973 4.08% -13.12% -14.66% 1987 5.06 6.02 5.67
1974 -2.40 -23.14 -26.47 1988 22.44 15.95 16.58
1975 55.65 44.40 36.92 1989 25.65 31.71 31.11
1976 33.25 22.72 23.53 1990 -10.14 -0.57 -3.20
1977 -2.90 -12.71 -7.19 1991 31.81 23.93 30.51
1978 -1.91 2.69 6.39 1992 6.44 7.34 7.67
1979 10.48 10.52 18.02 1993 25.30 16.72 9.97
1980 24.69 21.41 31.50 1994 1.95 4.95 1.30
1981 5.51 -3.40 -4.83 1995 34.97 36.48 37.10
1982 23.78 25.79 20.26 1996 26.34 28.57 22.69
1983 36.93 25.68 22.27 1997 19.92 24.78 33.10
1984 5.41 1.06 5.95 1998 8.55 18.00 28.34
1985 27.00 32.78 31.43 6/30/99 12.97 20.37 12.33
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1986 32.96 26.91 18.37 Average 16.16% 13.72% 13.64%
</TABLE>
Average Annual Total Returns
For periods 3 year 5 year 10 year 15 year 20 year 25 year
ending
12/31/98
Strategy(+) 17.73% 17.51% 16.12% 16.74% 17.49% 16.78%
DJIA 23.71% 22.08% 18.62% 17.71% 17.14% 14.40%
S&P 500 Index 27.97% 23.82% 19.03% 17.74% 17.50% 14.71%
Returns shown 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 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, they are not fully invested at all
times, stocks may not be weighted equally and Strategy returns do not reflect
deduction of commissions.
(+) Net of Portfolio sales charges (2.75% for the first year, 1.75%
for the subsequent year) and estimated expenses.
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<TABLE>
<S> <C> <C> <C>
Defined Asset Equity Investor Funds Select Standard & Poor's Index Series
Funds Intrinsic Value Portfolio S&P 500 Trust
Buy with Other Select Series S&P MidCap Trust
Knowledge - Hold United Kingdom Concept Series
With Confidence Portfolio Baby Boom Economy Fixed-Income
(Financial Times Portfolios[SM] Funds
Index) Health Care Trust
Institutional Holdings Internet Portfolio Corporate Funds
Portfolio Premier American
Select Growth Portfolio Portfolio Government
Select Large-Cap Premier World Portfolio Funds
Growth Portfolio Real Estate Income Fund
Select S&P Industrial Tele-Global Trust Municipal Funds
Portfolio Utility Portfolio
Select Standard &
Poor's Industry
Turnaround Portfolio
</TABLE>
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.
Select Today!
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.
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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.
* 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.
* There can be no assurance that the Portfolio will meet its objective,
that dividend rates will be maintained, that stock or unit prices will
not decrease over the life of the Portfolio or that the Portfolio will
outperform the indices.
* The value of your investment will fluctuate with the prices of the
underlying stocks. Stock prices can be volatile.
* 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 contributed to these
relatively low prices and high yields will change.
Tax Reporting
When seeking capital appreciation, managing tax liability on capital gains can
be vital to your overall return. By holding this Fund for more than one year,
individuals may be eligible for favorable federal tax rates on net long-term
capital gains (currently no more than 20%).
Generally, dividends and any gains will be subject to tax each year whether or
not reinvested. However, on rollovers to future Portfolios, if available,
investors will defer recognition of gains and losses 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 Amounts Per
Offering Price 1,000 Units
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
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Maximum Sales Charge 2.75% $27.50
Estimated Annual Expenses 0.152% $1.50
(as a % of net assets)
Estimated Organization Costs $0.63
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 you receive. If you roll over
to a successor Portfolio, if available, the initial sales charge on that
Portfolio will be waived. You will only pay the deferred sales charge on that
Portfolio.
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 % of
Purchased 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 to $999,999 1.75%
$1,000,000 or more 1.00%
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.
11342BR - 9/99
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