Defined Asset Funds(R)
Select Series
1999
4th Quarter
IRA Ideal!
The Select S&P Industrial Portfolio
Take Indexing to Another Level...
PaineWebber
Indexing -- it's a strategy to mirror the returns of major indices. Why not
take a step beyond?
The Defined Asset Funds(R)
Select S&P Industrial Portfolio can help.
Instead of simply replicating an index, the Select S&P Industrial Portfolio
singles out stocks within the S&P Industrial Index* for a combination of
capital appreciation potential and current dividend income. 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 Selection Process
Stocks in the Portfolio are selected through a disciplined process:
1. Defining the Universe: We begin with the S&P Industrial Index and remove
any stocks that are also in the Dow Jones Industrial Average* (DJIA).
2. Quality Screen: We only consider stocks that are ranked A+ or A by Standard
& Poor's.* This ranking system focuses on growth and stability of earnings and
dividends. It predicts neither credit-worthiness nor stock price movements.
3. Market Capitalization: We then rank the stocks by market capitalization and
eliminate the lowest 25%.
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4. Dividend Yield: Finally, we rank the remaining stocks according to dividend
yield. From this group, we select the 15 highest dividend-yielding stocks for
the Portfolio. Their prices may be undervalued.
Past Performance of Prior Select S&P Industrial Portfolios
Past performance is no guarantee of future results.
Series From Inception
Through 12/31/99 Most Recently Completed Portfolio
(including annual rollovers)
Inception Series Return Period Series Return
1/22/97 A 8.02% 2/9/98-3/19/99 A 5.92%
2/24/97 B 7.91 3/23/98-4/23/99 B 6.13
4/21/97 C 9.72 4/27/98-6/4/99 C 12.29
6/9/97 D 1.32 6/15/98-7/23/99 D 7.93
7/21/97 E 0.99 7/27/98-8/27/99 E 1.39
9/8/97 F 7.51 9/14/98-10/15/99 F -1.91
10/20/97 G 2.73 10/26/98-12/3/99 G 5.03
12/2/97 H -0.30 12/2/97-1/8/99 H 17.47
1/8/98 J -1.21 1/8/98-2/8/99 J 10.13
The chart above shows average annual total returns which represent price
changes plus dividends reinvested, divided by the initial public offering
price, and reflect deduction of maximum sales charges and expenses. Returns for
Series From Inception differ from Most Recently Completed Portfolio because the
former figures reflect different performance periods and reduced sales charges
on annual rollovers.
Hypothetical Results
We analyzed the hypothetical returns of the Strategy compared to various
benchmarks. The Strategy (with Portfolio sales charges and expenses deducted)
would have underperformed the DJIA in 10, the S&P 500 Index* in 11 and the S&P
Industrial Index in 10 of the last 27 years, and would have produced a loss in
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only four years. Portfolio performance may vary from that of the Indices for a
variety of reasons, as discussed in the prospectus.
Defining Your Risks
Before investing, please consider:
o There are risks associated with equity investments. The Portfolio 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 or unit 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. These stocks may have
relatively low prices because they or their industries are out of favor.
There can be no assurance that the market factors causing these low prices
will change.
o Owning units of the Portfolio may result in annual federal, state and
local taxes. Please consult your tax advisor.
Hypothetical Past Performance of the Strategy (not any Portfolio)
Growth of $10,000 Invested Over 25 Years-- 1/1/75 Through 12/31/99
Strategy.............$566,204 S&P 500 Index..............$508,254
DJIA.................$477,20 S&P Industrial Index.......$524,342
Growth of $10,000 Invested Over 27 Years--
1/1/73 Through 12/31/99
[A mountain chart compares the hypothetical past performance of the Strategy
(ochre), the Dow Jones Industrial Average (1) (DJIA) (pink), the S&P 500 Index
(purple), and the S&P Industrial Index (green) from 1/1/73 through 12/31/99. 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 12/31/99. The vertical (Y) axis reflects the dollar amount value
for each index from 1/1/73 through 12/31/99. The initial value of each
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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 ($431,122), the ending value of the
DJIA ($318,656), the ending value of the S&P 500 Index ($318,932), and the
ending value of the S&P Industrial Index ($328,907).]
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 deduction of Portfolio sales charges (2.50%
for the first year, 1.50% for each subsequent year), creation and development
fee 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, they 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 or Standard & Poor's.
* "Standard & Poor's," "S&P," "S&P 500 Index" and the "S&P Industrial Index"
are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for
use by Defined Asset Funds. The Portfolio is not sponsored, managed, sold or
promoted by Standard & Poor's. The name "Dow Jones Industrial Average" is the
property of Dow Jones & Company, Inc.
Take a Step Beyond!
You can get started today with the Select S&P Industrial Portfolio for about
$250. Simply return the attached coupon to receive a free copy of our brochure.
Call your financial professional for a free prospectus containing more complete
information on the Select S&P Industrial 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 S&P Industrial Portfolio from
Defined Asset Funds.
Name___________________________________________________________________________
Address________________________________________________________________________
City___________________________________________________________________________
State________________________________________________Zip_______________________
Home Phone_____________________________________________________________________
Business Phone_________________________________________________________________
E-Mail Address_________________________________________________________________
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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 ofer to buy
these securities in any state where their offer or sale is not permitted.
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JM37 (1/00)
Paine Webber, Inc. Member SIPC
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