Defined Asset Funds
Select Series 1999 C
Capital Appreciation Quantitative Research
IRA Ideal!
Institutional Holdings Portfolio
A Multi-Disciplined
Strategy Based on the
Amex Institutional Index
[Logo] Merrill Lynch
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The Amex Institutional Index
When it comes to finding a group of large, well-established companies, the Amex
Institutional Index1 can help. It represents the 75 stocks most widely held
among professionally managed institutional portfolios with market values in
excess of $100 million. Its stocks are reviewed quarterly, and the Index is
adjusted as necessary to keep current with institutional investments.
Total Returns Comparison
(not any portfolio)
Institutional Amex
Holdings International S&P 500
Year Strategy+ Index Index*
1984 -0.05% 4.90% 5.95%
1985 38.05 31.07 31.43
1986 20.74 19.69 18.37
1987 11.43 6.58 5.67
1988 1.38 13.78 16.58
1989 29.31 33.19 31.11
1990 0.03 0.55 -3.20
1991 33.50 28.40 30.51
1992 4.86 4.05 7.67
1993 24.49 7.51 9.97
1994 -2.06 2.61 1.30
1995 39.91 39.69 37.10
1996 37.25 26.22 22.69
1997 37.53 34.01 33.10
1998 40.49 38.71 28.34
9/30/99 7.07 7.14 5.38
Average 19.48% 18.15% 17.22%
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Average Annualized Returns
For periods ending 12/31/98
Institutional Amex
Holdings International S&P 500
Period Strategy+ Index Index*
3 Year 8.08% 32.88% 27.97%
5 Year 9.17 27.45 23.82
10 Year 3.31 20.53 19.03
15 Year 0.00 18.59 17.74
Hypothetical past performance of the Strategy is no assurance of future results
of any Portfolio. 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. 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, stocks may not be weighted equally.
A quantitative approach to portfolio management can sometimes reveal unseen
investment opportunities. Combining both fundamental and technical
stock-selection techniques can broaden your portfolio. Now, by applying our
Multi-Disciplined Strategy to a large-cap index, Defined Asset Funds [Registered
trademark] offers you a balanced plan for equity investing with our . . .
Institutional Holdings Portfolio
Nearly Everything Moves in Cycles
o Economies o Industries
o Markets o Investment Styles
Being prepared for life's inevitable transitions can often mean the difference
between a gentle roll and a wild ride. The same holds true for the changes that
affect our investments. Defined Asset Funds' multi-disciplined investment
approach is a strategy based on several stock- selection methodologies. It
selects issues from each and combines them to produce a 20-stock portfolio with
complementary investment style characteristics.
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Financial Security is a Journey, Not a Destination
At Defined Asset Funds, we believe that achieving financial security is a
long-term process, best accomplished by investing in a consistent and
disciplined manner. We recognize that predicting the market over the short term
is almost impossible. We also recognize that human emotions can interfere with
the execution of a sound and logical investment strategy. Our Multi-Disciplined
Strategy is designed to facilitate an ordered and rational approach to long-term
investing, to help keep you on track toward achieving your financial goals.
The Selection Model
Using the Amex Institutional Index (excluding utilities) as our universe of
stocks (as it is proposed to be reconstituted at the close of December 17,
1999), we select stocks for the Portfolio by applying a proprietary screening
process that focuses on a combination of fundamental and technical factors, with
an emphasis on momentum. The tests consider:
o Price Momentum o Price/Earnings Ratio
o Recovery o Dividend Yield
We then close the top-ranked issues from each category and combined them in a
single portfolio. The resulting collection of large-cap stocks benefits from the
balance of fundamental and technical methodologies built into the selection
screens. While there can be no guarantee of results, the objective of this
Multi-Disciplined Strategy is to produce a balanced and diversified portfolio of
large-cap stocks -- all components of the Amex Institutional Index.
Stay with the Strategy
When the Portfolio ends, you can choose to roll your proceeds into a new
Institutional Holdings Portfolio, if available, or you can redeem your
investment. Although this is a one-year investment, we suggest you continue with
this Strategy for at least three to five years for potentially more consistent
results.
If your investment objective should change, you have the flexibility to exchange
your investment for certain other Defined Asset Funds portfolios at a reduced
sales charge.
* "Standard & Poor's" and "S&P 500 Index" are trademarks of The McGraw-Hill
Companies, Inc. "Amex" and "Amex Institutional Index" are trademarks of the
American Stock Exchange, LLC, a subsidiary of the NASD, and have been licensed
for use by Defined Asset Funds. The Portfolio is not sponsored, managed, sold or
promoted by Standard & Poor's or the American Stock
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Exchange. The American Stock Exchange does not guarantee the accuracy or
completeness of the Amex Institutional Index.
+ Hypothetical returns are net of Portfolio sales charges (2.75% for the first
year, 1.75% for each subsequent year) and estimated expenses.
A MULTI - DISCIPLINED PORTFOLIO
Company Symbol
American International Group AIG
American Express Company AXP
BP Amoco PLC++ BPA
Citigroup, Inc. C
CBS Corporation(Section) CBS
Chase Manhattan Corporation CMB
Dayton Hudson Corporation DH
Honeywell International, Inc. HON
Hewlett-Packard Company HWP
Kimberly-Clark Corporation KMB
McDonald's Corporation MCD
Minnesota Mining & Manufacturing Company MMM
Motorola, Inc. MOT
Morgan Stanley Dean Witter & Company MWD
Oracle Corporation(Section) ORCL
Procter & Gamble Company PG
Schlumberger Limited SLB
Sun Microsystems, Inc.(Section) SUNW
Texas Instruments, Inc. TXN
Wells Fargo Company WFC
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++ The Issuer is a foreign corporation; dividends if any, will be subject
to withholding taxes.
Section These stocks currently pay no dividends.
STRATEGY
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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.
Defined Asset Funds
Buy With Knowledge o Hold With Confidence
EQUITY INVESTOR FUNDS
Other Select Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio
(Financial Times Index)
Multinational Portfolio
Select Growth 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
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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
Invest in the Multi-Disciplined Approach Today!
You can get started with about $250 for regular or retirement accounts. 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.
On the Cover: Gyroscopes
A gyroscope is a wheel or disk mounted to spin rapidly about an axis. As it
twirls, it resists shearing forces applied to its axis of rotation. Like a
child's spinning top, a gyroscope seeks to maintain its balance despite changing
external influences.
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 There can be no assurance that the Portfolio will meet its objective.
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o The Portfolio is designed for investors who can assume the risks associated
with equity investments, and may not be 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 Each screen involves an element of momentum, which may result in
underperformance in declining markets.
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%) 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
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 of % of a
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) 0.202% $2.00
Estimated Organization Costs $2.13
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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.
Total Sales Charge as a % of
Amount 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%
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.
[logo] Printed on Recycled Paper
32767BR-12/99
(C) 1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
Defined Asset Funds is a registered service mark of Merrill Lynch & Co., Inc.
