IRA Ideal!
Defined Asset Funds [SM]
Select Series 1999 D
Capital Appreciation Quantitative Research
Select Growth Portfolio
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 and to have attractive growth potential.
Here's 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 Ratio
not exceeding their estimated three to five year earnings growth rates.
3) Relative strength is determined by separating out stocks with strong relative
price performance over the prior six months.
4) The Portfolio Consultant eliminates smaller companies with market
capitalizations below $750 million.
Finally, the Defined Funds Research Group selects ten stocks considered
most attractive.
The securities are selected and held without regard to any buy or sell
recommendations of any of the Sponsors.
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Choosing investments to support your long-term financial objectives can be
difficult. This is particularly true if you're interested in adding progressive
growth stocks to 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 [SM] developed a portfolio designed to provide definition and
discipline to aggressive growth stock investing...
Select Growth Portfolio
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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 that year, we
intend to reapply the strategy to select a new Portfolio. You can roll your
proceeds into 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
staying with the strategy for at least three to five years for potentially more
consistent results.
Defined Portfolio
This preselected Portfolio will remain relatively fixed throughout its one-year
life. You will always know where your dollars are invested.
Convenience Defined
There's no need for multiple security purchases. The Select Growth Portfolio
offers a screened portfolio of ten stocks, with just one price to track - quoted
weekly in Barron's.
Buy and Hold
The Portfolio follows a disciplined strategy of buying and holding stocks for
about one year. You may also have the option of rolling your proceeds over each
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 at a reduced sales charge. You may also exchange in this Fund from certain
other funds.
Cost
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 aggressive
long-term growth. Investors should have the will and ability to withstand the
extreme price volatility of aggressive growth stocks, in exchange for the
potential of greater rewards over time.
A DEFINED PORTFOLIO
Company Symbol
American Eagle Outfitters, Inc. AEOS
This specialty retailer of men's and women's casual apparel, footwear,
outerwear and accessories operates throughout the United States. Its
products include dungarees, khakis, T-shirts and other similar apparel.
Ann Taylor Stores Corporation ANN
Through its wholly owned subsidiary, Ann Taylor retails women's
apparel, shoes and accessories in the United States and the District of
Columbia.
Compuware Corporation CPWR
This company provides software products and professional services to
help informaiton technology professionals develop, implement and
support their business-critical mainframe and client/server systems.
CSG Systems International, Inc. CSGS
Offering a suite of processing, software and related services to
automate customer care and billing functions, this company provides
solutions for cable television providers, direct broadcast satellite
providers, online services markets and telephony providers.
Forest Laboratories, Inc. FRX
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This company develops, manufacturers and sells both branded and
generic prescription and non-prescription pharmaceutical products, in
the United States and eastern Europe.
The Men's Wearhouse, Inc. SUIT
This company retails men's tailored business attire, selling designer,
brand name and private label suits, sport coats, furnishings and
accessories. It manufactures men's suits and sport coats in Canada.
Michaels Stores, Inc. MIKE
Owning retail specialty chain stores featuring home decoration, arts
and crafts items, this company operates Michaels and Aaron Brothers
stores in the United States and Canada.
Sybron International Corporation SYB
Through its subsidiaries, Sybron designs, manufactures and markets
laboratory and dental supply products worldwide. Its products include
laboratory microscope slides, reusable and disposable plastic labware,
precision heating and stirring apparatuses, water purification systems,
orthodontic products and dental materials.
Symantec Corporation SYMC
Symantec's products include security and assistance software, remote
productivity solutions and Internet tools, sold worldwide.
The Titan Corporation TTN
Providing communications and information solutions to the United States
military, allied government agencies and commercial customers, this
company's systems, products and services enable data to be generated,
processed, transmitted, stored and distributed in a secure manner.
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PAST PERFORMANCE OF PRIOR SELECT GROWTH 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
2/14/95 A 29.29% 2/17/98-3/19/99 A 26.37%
6/6/95 B 12.09 5/18/98-6/18/99 B -13.99
8/1/95 C 4.82 8/18/97-9/18/98 C -23.74
11/1/95 D 16.35 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.
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[Defined Asset Funds logo]
EQUITY INVESTOR FUNDS
OTHER SELECT SERIES
Select Ten Portfolio (DJIA)
United Kingdom Portfolio
(Financial Times Index)
Institutional Holdings Portfolio
Multinational 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(sm)
Energy Portfolio
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
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PARTICIPATE IN GROWTH STOCK NOW!
You can get started with the Select Growth 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.
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. The Portfolio is
concentrated in retail stocks, which may involve special risks.
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
1995, when the first Portfolio was offered, the model has often
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 adverse developments affect 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
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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%, deducted over the last ten months of the Portfolio.
As a % of Public Amount Per
Offering 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 a % of net assets) 0.214% $2.12
Estimated Organization Costs $2.58
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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
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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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[Recycle Logo] Printed on Recycled Paper 11591BR-12/99
(C) 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
