Defined Asset Funds [R]
Select Series 1999 D
Capital Appreciation
Quantitative Research
IRA Ideal!
Merrill Lynch [dotted 100 in a box] Technology Index
Defined Technology Portfolio[SM]
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Merrill Lynch [dotted 100 in a box] Technology Index
The Merrill Lynch 100 Technology Index (ML 100 Index) is a benchmark for
technology stocks. It offers a cross section of 100 highly capitalized
technology stocks, covering important areas such as computer software,
semi-conductors, telecommunications equipment, electronic data processing and
the Internet. The ML 100 Index also includes American Depositary Receipts (ADRs)
for international exposure. The Index follows strict quantitative rules to
minimize subjectivity in stock selection, and only includes stocks that have
been screened for liquidity. You can follow the ML 100 Index on the American
Stock Exchange using the symbol MLO.
The Technology Sector
It has been considered an investment only for those with the most robust of
temperaments. This sector has shown Wall Street lofty highs and humble lows, but
we believe it offers great potential for the future. Defined Asset Funds [R]
gives you a convenient way to invest in the promise of technology with the...
Defined Technology Portfolio[SM]
Why Technology Now?
Imagine your world without cable TV, a cellular phone or a home computer. How
would your place of business operate without online services and networking
capabilities? While many technology companies have seen ups and downs, overall,
the industry's products have become essential to how we do business, and how we
live. Despite wide variations over the last few years in the performance of
certain stocks in the ML 100 Technology Index, the sector itself continues to
redefine our economy and future in dramatic ways.
The Enhanced Index Strategy
The Defined Technology Portfolio offers you the potential for capital
appreciation by holding a diversified portfolio of technology stocks for about
one year. By applying a Rebalancing Model to the Merrill Lynch 100 Technology
Index (ML 100 Index), the Portfolio seeks to outperform the Index by reweighting
each stock to increase potential return.
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Each year, Defined Asset Funds intends to reapply the Rebalancing Model to the
ML 100 Index to create a new Portfolio. At that time, you can choose to roll
your proceeds into a new Defined Technology Portfolio, if available, or you can
redeem your investment. Although this is a one-year investment, we recommend you
continue with this Strategy for at least three to five years for potentially
more consistent results.
If your investment objective should change, Defined Asset Funds offers the
flexibility to exchange your investment for certain other Equity Investor
Portfolios at a reduced sales charge.
The Rebalancing Model
Bernard V. Tew, Ph.D., Chairman of Q.E.D. Investments, designed his quantitative
model as a means for improving returns and controlling risks in speculative
equity sectors. As Portfolio Consultant for the Defined Technology Portfolio,
Dr. Tew works with Defined Asset Funds to apply the following stock selection
process:
Define the Universe
We begin by defining the universe of stocks. In this case, we use the ML 100
Technology Index for its diversification within the technology sector, as well
as its emphasis on highly capitalized stocks.
Reweight the Index
We then reweight the ML 100 Index, stock by stock, from most attractive to least
attractive. Stocks considered most attractive, those with the best prices
relative to potential performance, are weighted most heavily. Stocks with less
attractive prices relative to returns are underweighted. This reweighting is
designed to enhance potential return.
Construct an Enhanced Portfolio
Stocks in the ML 100 Index are then analyzed by the Portfolio Consultant for
historical correlation relationships, to identify stocks whose prices move
inversely to one another. These relationships create a portfolio of stocks that
complement each other and reduce volatility.
Rebalance the Portfolio
Because the Model works best over a one-year period, Defined Asset Funds and the
Portfolio Consultant plan to construct a new Portfolio each year. The Model will
be reapplied to the ML 100 Index to determine the weightings for a new Defined
Technology Portfolio.
Past Performance of Prior Defined Technology Portfolio
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Past performance is no guarantee of future results.
Series From Inception Through 9/30/99
(including annual rollovers)
Inception Series Return
8/25/98 C(1) 63.73%
Most Recently Completed Portfolio
Period Series Return
8/25/98-9/24/999 C(1) 66.73%
The chart above shows total return which represents price changes plus
dividends, divided by the initial public offering price, and reflects maximum
sales charges and expenses. Return for Series From Inception differs from Most
Recently Completed Portfolio because the former figure reflects different
performance periods and a reduced sales charge on annual rollovers.
(1) This Portfolio was originally Series 1 and rolled into Series C on
August 30, 1999.
The Merrill Lynch 100 Technology Index(2)
Company Symbol
1. 3Com Corporation COMS
2. Apple Computer, Inc. AAPL
3. Adobe Systems, Inc.(3) ADBE
4. ADC Telecommunications, Inc. ADCT
5. Analog Devices, Inc. ADI
6. Alcatel(3)(4) ALA
7. Altera Corporation ALTR
8. Applied Materials, Inc. AMAT
9. Amazon.com, Inc. AMZN
10. America Online, Inc. AOL
11. Ariba, Inc. ARBA
12. ASM Lithography Holding N.V. ASML
13. At Home Corporation ATHM
14. Automatic Data Processing, Inc.(3) AUD
15. BMC Software, Inc. BMCS
16. Broadcom Corporation BRCM
17. BroadVision, Inc. BVSN
18. Computer Associates International, Inc.(3) CA
19. CIENA Corporation CIEN
20. CMGI, Inc. CMGI
21. Commerce One, Inc. CMRC
22. Comverse Technology, Inc. CMVT
23. Conexant Systems, Inc. CNXT
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24. Compaq Computer Corporation(3) CPQ
25. Compuware Corporation CPWR
26. Computer Sciences Corporation CSC
27. Cisco Systems, Inc. CSCO
28. Citrix Systems, Inc. CTXS
29. DoubleClick, Inc. DCLK
30. Dell Computer Corporation DELL
31. eBay, Inc. EBAY
32. Electronic Data Systems Corporation(3) EDS
33. E*TRADE Group, Inc. EGRP
34. EMC Corporation EMC
35. Ericsson (LM) Telephone Company(3)(4) ERICY
36. Electronic Arts, Inc. ERTS
37. Exodus Communications, Inc. EXDS
38. First Data Corporation(3) FDC
39. Foundry Networks, Inc. FDRY
40. General Instrument Corporation(5) GIC
41. Gateway, Inc. GTW
42. Hewlett-Packard Company(3) HWP
43. International Business Machines Corporation(3) IBM
44. Internet Capital Group, Inc. ICGE
45. Internap Network Services Corporation INAP
46. Infosys Technologies Limited(3)(4) INFY
47. Inktomi Corporation INKT
48. Intel Corporation(3) INTC
49. Intuit, Inc. INTU
50. i2 Technologies, Inc. ITWO
51. JDS Uniphase Corporation JDSU
52. Juniper Networks, Inc. JNPR
53. KLA-Tencor Corporation KLAC
54. Linear Technology Corporation(3) LLTC
55. LSI Logic Corporation LSI
56. Lucent Technologies, Inc.(3) LU
57. Lexmark International Group, Inc. LXK
58. Molex, Inc.(3) MOLX
59. Motorola, Inc.(3) MOT
60. Microsoft Corporation MSFT
61. Micron Technology, Inc.(3) MU
62. Maxim Integrated Products, Inc. MXIM
63. Nokia Corporation(3)(4) NOK
64. Novell, Inc. NOVL
65. National Semiconductor Corporation NSM
66. Nortel Networks Corporation(3) NT
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67. Network Appliance, Inc. NTAP
68. Nextel Communications, Inc. NXTL
69. Oracle Corporation ORCL
70. Paychex, Inc.(3) PAYX
71. Priceline.com, Inc. PCLN
72. Phone.com, Inc. PHCM
73. Koninklijke (Royal)Philips Electronics N.V.(3)(4) PHG
74. PMC-Sierra, Inc. PMCS
75. Parametric Technology Corporation PMTC
76. Portal Software, Inc. PRSF
77. QUALCOMM, Inc. QCOM
78. RealNetworks, Inc. RNWK
79. SAP AG(3)(4) SAP
80. Sycamore Networks, Inc. SCMR
81. Siebel Systems, Inc. SEBL
82. Seagate Technology, Inc. SEG
83. Solectron Corporation SLR
84. SONY Corporation(3)(4) SNE
85. STMicroelectronics N.V.(3)(4) STM
86. Sun Microsystems, Inc. SUNW
87. Teradyne, Inc. TER
88. TIBCO Software, Inc. TIBX
89. Tellabs, Inc. TLAB
90. Terra Networks, S.A. TRRA
91. Taiwan Semiconductor Manufacturing Company Limited(4) TSM
92. Texas Instruments, Inc.(3) TXN
93. Unisys Corporation UIS
94. Vignette Corporation VIGN
95. VeriSign, Inc. VRSN
96. VERITAS Software Corporation VRTS
97. Vitesse Semiconductor Corporation VTSS
98. Xilinx, Inc. XLNX
99. Xerox Corporation(3) XRX
100. Yahoo! Inc. YHOO
(2) Index as of 12/16/99.
(3) Only these stocks currently pay dividends.
(4) The issuer is a foreign corporation; any dividends will be subject to
withholding taxes.
(5) General Instrument Corporation is the subject of a cash tender offer and is
expected to be removed from the Merrill Lynch 100. The trustee will hold
amounts deposited for the purchase of this security in cash pending the
announcement of a substitute security in the Merrill Lynch 100. The cash
will then be used to purchase the substitute security.
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Defined Asset Funds[R]
Buy With Knowledge - Hold With Confidence
FIXED-INCOME FUNDS
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Defined Asset Funds -- Our Philosophy
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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.
Invest in Technology Today!
You can get started with the Defined Technology Portfolio for about $250. Call
your Financial Consultant for a free prospectus containing more complete
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
Merrill Lynch Financial Consultant will be happy to answer any questions you may
have.
There can be no assurance that the Portfolio will meet its objective.
The Portfolio is designed for investors who can assume the additional risks
associated with aggressive growth equity investments, and may not be appropriate
for investors seeking capital preservation or current income. The Portfolio is
composed of aggressive growth stocks that are subject to extreme price
volatility; therefore, it may be considered speculative. The Portfolio consists
exclusively of stocks from the technology sector and should not be considered a
complete investment program. The Portfolio does not reflect research opinions or
any buy or sell recommendations from the Sponsor.
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
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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
You will pay an initial sales charge of about 1% the first time you buy. In
addition, you'll pay a deferred sales charge of $17.50 per 1,000 units, about
1.75%.
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
Estimated Annual Expenses
(as a % of net assets) 0.196% $1.94
Estimated Organization Costs $1.93
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.
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%
$100,00 to $249,999 2.00%
$250,000 to $999,999 1.75%
$1,000,000 to $4,999,999 1.00%
$5,000,000 or more .60%
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
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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.
70116BR-12/99
[Copyright] 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC. Defined Asset Funds is a registered service mark of Merrill Lynch & Co.,
Inc.
