IRA Ideal!
Defined Asset Funds
Select Growth Portfolio
Select Series 1999
Capital Appreciation Quantitative
C
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 is 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.
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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 Funds 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 only one 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.
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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
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.
A DEFINED PORTFOLIO
Company Symbol
ACNielsen Corporation ART
Conveys market research, information and analysis of consumer products
and services domestically and internationally. It also offers customized
research, media measurement and consumer panel services.
American Eagle Outfitters, Inc. 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.
Dycom Industries, Inc. DY
Provides engineering, construction and maintenance services to
telecommunications providers throughout the U.S. Dycom's other services
include providing underground utility locating, electric utility
contracting and installing integrated voice, data and video networks in
office buildings.
Family Dollar Stores, Inc.(1) FDO
National discount store chain operating throughout the U.S. under the
Family Dollar Stores name.
ICN Pharmaceuticals, Inc.(1) ICN
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Manufactures and markets prescription and non-prescription
pharmaceuticals, as well as biotechnology research products with
operations in North America, Latin America, Europe and the Pacific Rim.
Macromedia, Inc. MACR
Develops, sells and supports software products and technologies for the
Web. Macromedia's publishing products enable designers and developers to
create interactive e-commerce, entertainment, news and information.
Orthodontic Centers of America, Inc. OCA
Provides practice management services such as developing orthodontic
centers and managing the business operations and marketing aspects of the
affiliated orthodontists' practices in the U.S., Puerto Rico, Mexico and
Japan.
Renal Care Group, Inc. RCGI
Leasing and owning dialysis centers throughout the U.S., Renal Care Group
provides dialysis and ancillary services to patients with chronic kidney
failure through contractual relationships with various hospitals.
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.
US Oncology, Inc. USON
Provides a variety of comprehensive management services such as
strategic, financial, management information, administration, personnel,
clinical research and clinical initiatives and standards under long-term
agreements with oncology practices throughout the U.S.
(1) Only these stock currently pay dividends. The current annual dividends
per share for the Securities in Portfolio numbers 4 and 5 are $0.20 and $0.28,
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.
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Past Performance of Prior Select Growth Portfolios
Past performance is no guarantee of future results.
Series From Inception Through 6/30/99 Most Recently Completed Portfolio
(including annual rollovers)
Inception Series Return Period Series Return
2/14/95 A 28.00% 2/17/98-3/19/99 A 26.37%
6/6/95 B 15.04 5/18/98-6/18/99 B -13.99
8/1/95 C 4.49 8/18/97-9/18/98 C -23.74
11/1/95 D 14.89 11/17/97-12/18/98 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 -- 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 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
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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 assurance 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 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
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%) for individuals.
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 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
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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
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Estimated Annual Expenses
(as a % of net assets) 0.208% $2.06
Estimated Organization Costs $2.58
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 the
Portfolio 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 % 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%
Defined Asset Funds
Buy With Knowledge o Hold With Confidence
EQUITY INVESTOR FUNDS
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Other Select Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio
(Financial Times Index)
Institutional Holdings 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 Portfolios
Health Care Trust
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Index Series
S&P 500 Trust
S&P MidCap Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
[logo] Printed on Recycled Paper
11591BR-8/99
[Copyright] 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC.
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