Select Series | Capital Appreciation
Defined Asset Funds(sm) 1999 | International
C |
United
Kingdom
Portfolio
[logo] Merrill Lynch
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Selecting investments
for your portfolio
can be complicated --
a strategy can help.
The Strategy
International equity markets can offer attractive growth potential and help
investors diversify their portfolios. The United Kingdom's market performance is
reflected by the Financial Times Industrial Ordinary Share Index* (FT Index).
The United Kingdom Portfolio seeks total return by holding the ten highest
dividend-yielding stocks of the FT Index for about one year (the "Strategy").
The Portfolio looks for potential values in the equity market by investing in
established companies whose prices may be depressed. It consists of
approximately equal values of the ten FT Index stocks with the highest dividend
yields, selected shortly before the offering.
Each year, we intend to reapply the screening process to select a new Portfolio.
You can reinvest in the new 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.
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* The publisher of the Financial Times Index has not participated in any way
in the creation of the Portfolio or in the selection of its stocks, nor
approved any information included in this brochure.
Advantages for U.S. Investors
o Semi-Annual Dividends. Investors receive two consolidated checks per year,
not 20 for the ten stocks, and payments are in U.S. dollars.
o Reinvestment. You may choose to reinvest your distributions at a reduced
sales charge to compound your income.
o Cost. Investments start at about $250 with sales charge discounts available
for 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.
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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.
Select Ten International United Kingdom Portfolio -- 1999 Series C(1)
Name of Issuer Current Dividend Yield(2)
1. Allied Domecq PLC 8.86%
2. British Airways PLC 5.36
3. Royal & Sun Alliance Insurance Group PLC 4.97
4. Imperial Chemical Industries PLC 4.84
5. Marks & Spencer PLC 4.51
6. Tate & Lyle PLC 4.47
7. Blue Circle Industries PLC 4.11
8. Scottish Power PLC 4.04
9. EMI Group PLC 3.63
10. Boots Company PLC 3.60
The Portfolio does not reflect the research opinions or any buy or sell
recommendations of any of the Sponsors.
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(1) Initial date of deposit -- October 4, 1999.
(2) Current dividend yield for each security was calculated by annualizing
the last monthly, quarterly or semi-annual ordinary dividend declared on the
security and dividing the result by its market value as of the close of trading
on October 4, 1999. There can be no assurance that future dividends, if any,
will be maintained as the indicated rates.
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Past Performance of Prior Select Ten International United Kingdom Portfolios
Past performance is no guarantee of future results.
Series From Inception Through 9/30/99 Most Recently Completed Portfolio
(including annual rollovers)
Inception Series Return Period Series Return
6/21/93 B 8.26% 6/1/98-7/9/99 B -1.98%
9/28/93 C 9.88 9/22/97-10/23/98 C 3.85
1/5/94 A 6.56 1/28/98-3/5/99 A 4.95
7/22/96 3 16.68 7/31/98-9/10/99 3 5.88
11/1/96 5 12.35 11/10/97-12/18/98 5 6.98
2/25/97 1 14.60 3/2/98-4/9/99 1 6.44
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.
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Select Ten Portfolio
United Kingdom
International Series
Financial Times Index
The FT Index consists of 30 common stocks chosen by the editors of The Financial
Times (London) as representative of British industry and commerce. The companies
are major players in their industries, and their stocks are widely held by
individual and institutional investors. The FT Index is an unweighted average of
the share prices of these companies:
Allied Domecq
BG
BOC Group
BP Amoco
Blue Circle Industries
Boots Company
British Airways
British Aerospace
British Telecommunications
Cadbury Schweppes
Diageo
EMI Group
General Electric Company
GKN
Glaxo Wellcome
Granada
Imperial Chemical Industries
Invensys
Lloyds TSB
Marks & Spencer
National Westminster Bank
Peninsular and Oriental Steam Navigation Company
Prudential Corporation
Reuters Group
Royal & Sun Alliance Insurance
Scottish Power
SmithKline Beecham
Tate & Lyle
Tesco
Vodafone Group
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Hypothetical Past Performance of the Strategy (not any Portfolio) Growth of
$10,000 Invested 1/1/79 Through 9/30/99
[A mountain chart compares the hypothetical past performance of the Strategy
(ochre) (3) from 1/1/79 through 9/30/99 and the FT 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"). A purple box in the
upper left quadrant indicates the FT Index. The horizontal (X) axis compares the
cumulative annual performance by year, from 1/1/79 through 9/30/99. The vertical
(Y) axis reflects the dollar amount value for each index from 1/1/79 through
9/30/99. The initial value of each investment is $10,000. Throughout the
aforementioned period, increases in each investment builds towards the Y axis.
At the end of this period, the Y axis reflects the ending value of the Strategy
($390,083) and the ending value of the FT Index ($165,375).]
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 FT Index in 8 of the last 20 years. There can be no assurance that any
Portfolio will outperform the Index.
Portfolio results of this value-oriented strategy may differ from the FT Index
for various reasons. For example, FT Index performance may be driven by stocks
not held in the Portfolio, such as growth stocks.
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Annual Total Returns
Strategy returns are net of sales charges and expenses.(3)
Year Strategy(3) FT Year Strategy(3) FT
Index Index
1979 1.50% 3.59% 1990 7.14 10.29
1980 28.25 31.77 1991 14.56 14.65
1981 -8.70 -5.30 1992 2.09 -2.33
1982 42.32 0.42 1993 35.96 18.40
1983 40.35 21.94 1994 3.32 1.89
1984 3.33 2.15 1995 8.76 17.63
1985 77.20 54.74 1996 12.27 20.05
1986 31.09 24.36 1997 10.03 16.98
1987 46.45 38.99 1998 21.58 10.81
1988 9.31 6.74 9/30/99 17.21 6.97
1989 26.87 22.80 Average 19/31% 14.48%
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. Changes in the exchange rate of the pound sterling
relative to the U.S. dollar affected these figures significantly in certain
years. These changes ranged from -20% in 1984 to +27% in 1987, and averaged
- -0.11% over the last 20 years.
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 and currency exchange rates
different from those used in determining Portfolio unit price, they are not
fully invested at all times and stocks may not be weighted equally.
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(3) Net of Portfolio sales charges (2.75% for the first year, 1.75% for
each subsequent year) and estimated expenses.
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Defined Asset Funds(sm)
Buy With Knowledge o Hold With Confidence
EQUITY INVESTOR FUNDS
Other Select Series
Select Ten Portfolio (DJIA)
Institutional Holdings Portfolio
Select Large-Cap Growth Portfolio
Select 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(sm)
Financial Services Portfolio
Health Care Trust
Internet Portfolio
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
Defined Asset Funds --
Our Philosophy
At Defined Assets Funds, we are ever mindful that behind every investment dollar
lies something
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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 Assets Funds, we set the foundation for all of our portfolios in this
way, because we too have an important goal in mind -- yours.
Start Today!
You can get started with the Select Ten International United Kingdom Portfolio
for about $250. Call your financial professional for a free prospectus
containing more complete information, including sales charges, expenses and the
special considerations associated with the risks of international investing
including currency risk. 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 should not be considered a complete investment program and
may be considered speculative.
o The Portfolio may not be appropriate for investors seeking either capital
preservation or high current income, nor would it be suitable for investors
unable or unwilling to
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assume the increased risks of higher price volatility and currency
fluctions associated with investments in international equities.
o There can be no assurance that the Portfolio will meet its objective, that
dividend rates will be maintained, that stock or unit process or currency
exchanges rates will not decline or that the Portfolio will outperform the
Index.
o The value of your investment will change with the prices of the underlying
stocks and currency exchanges rates. The prices of United Kingdom stocks
fluctuate widely.
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.
A Tax-Efficient Structure
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. U.S. investors will include in income their share of dividends, grossed
up for certain taxes paid by U.K. issuers; however, they may not be able to
obtain refunds for such taxes.
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
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rollovers of 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 sale 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 Offering Amount Per
Price 1,000 Units
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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
(as of %of net assets) 0.233% $2.31
Estimated $1.51
Organization Costs
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.
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Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Total Sales Charge as of %
Amount Purchased of Public Offering Price
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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%
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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.
11341BR - 10/99
(C) 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC.
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