Defined Asset Funds[Registered]
Select Series 2000 A
Capital Appreciation Quantitative Research
Select Large-Cap Growth Portfolio
A Quantitative Approach to Growth Stock Investing
[logo] Merrill Lynch
Growth 1000
The Russell 1000[Registered] Growth Index
The Russell 1000[Registered] Index is an equity securities benchmark that
measures the performance of the 1,000 largest U.S. companies by total market
capitalization. The Russell 1000[Registered] Growth Index is a subset of the
Russell 1000 that measures the performance of those Russell 1000 companies with
higher price-to-book ratios, and higher forecasted growth values.
Annual Total Returns(*)
Year Russell 1000 Growth Index
(not any Portfolio)
1980 39.57%
1981 -11.31
1982 20.46
1983 15.98
1984 -0.95
1985 32.85
1986 15.36
1987 5.31
1988 11.27
1989 35.92
1990 -0.26
1991 41.16
1992 5.00
1993 2.90
1994 2.66
1995 37.19
1996 23.12
<PAGE>
1997 30.49
1998 38.71
1999 33.16
3/31/00 7.13
Average 17.99%
Average Annual Total Returns
(For periods ending 12/31/99)
1 Year 33.16%
3 Year 34.07
5 Year 32.41
10 Year 20.32
20 Year 17.82
When investing in established companies, the challenge for many investors is
identifying stocks whose growth potential makes them worth the price. Defined
Asset Funds[Registered] offers you a convenient way to invest in the growth
potential of leading companies with our...
Select Large-Cap Growth Portfolio
A Quantitative Approach to Growth Stock Investing
The Select Large-Cap Growth Portfolio offers you a way to invest in a
professionally selected Portfolio of large-cap companies, which we believe have
potential to provide better-than-average growth. By applying a quantitative
Selection Model to stocks in the Russell 1000 Growth Index(+), the Large-Cap
Growth Portfolio seeks out leading companies whose potential for growth may
make them worth the price. The result is a diversified Portfolio of 77
promising companies, many of which are household names.
An Enhanced Index Strategy
The Select Large-Cap Growth Portfolio follows a disciplined strategy for index
enhancement. A quantitative Selection Model is applied to select stocks from
the Index and determine desirable weightings.
The Selection 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
equity sectors. As Portfolio Consultant for the Select Large-Cap Growth
2
<PAGE>
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 Russell
1000 Growth Index for its diversification among large-cap growth stocks that
are forecasted to experience better-than-average growth relative to their
prices.
Reweight the Index
We then reweight the Russell 1000 Growth 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 seeks to enhance potential return.
Construct an Enhanced Portfolio
Stocks in the Russell 1000 Growth Index are then analyzed by the Portfolio
Consultant for historical correlation relationships, to identify stocks whose
prices and returns have a low correlation to one another. These relationships
create a portfolio of stocks that complement each other and seeks to 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 Russell 1000 Growth Index to determine the weightings
for a new Select Large-Cap Growth Portfolio.
At that time, you can choose to roll your proceeds into a new Select Large-Cap
Growth 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.
Performance of the Large-Cap Growth Portfolio Past performance is no guarantee
of future results.
Series From Inception Through 3/31/00
Inception Return
4/6/99 2.81%
The chart above shows a cumulative total return which represents price changes
plus dividends reinvested, divided by the initial public offering price, and
reflects a deduction of maximum sales charges and expenses.
3
<PAGE>
(*) This Portfolio applies screening criteria to select among and reweight the
Russell 1000 Growth stocks. Not only is past performance no indication of
future results, Portfolio performance may differ significantly from Index
returns.
(+) "Russell 1000" and "Russell 1000 Growth Index" are trademarks of Frank
Russell Co., which has not sponsored, managed, sold or promoted the Portfolio.
A Defined Portfolio
% of
Company Symbol Portfolio(++)
Microsoft Corporation(ss) MSFT 7.08%
Cisco Systems, Inc.(ss) CSCO 6.57
General Electric Company GE 6.41
Intel Corporation INTC 6.14
Wal-Mart Stores, Inc. WMT 3.15
Oracle Corporation(ss) ORCL 3.06
Lucent Technologies, Inc. LU 2.62
AT&T Corporation T 2.33
Sun Microsystems, Inc.(ss) SUNW 2.14
America Online, Inc.(ss) AOL 2.12
The above 10 stocks represent 41.62% of the Portfolio.
American International Group, Inc. AIG 2.01
Merck & Company, Inc. MRK 1.93
Dell Computer Corporation(ss) DELL 1.92
SBC Communications, Inc. SBC 1.92
The Home Depot, Inc. HD 1.86
Hewlett-Packard Company HWP 1.85
Texas Instruments, Inc. TXN 1.84
Pfizer, Inc. PFE 1.82
EMC Corporation(ss) EMC 1.79
MCI WorldCom, Inc.(ss) WCOM 1.62
The above 20 stocks represent 60.18% of the Portfolio.
Time Warner, Inc. TWX 1.54
Motorola, Inc. MOT 1.51
The Coca-Cola Company KO 1.50
Johnson & Johnson JNJ 1.46
Bristol-Myers Squibb Company BMY 1.41
The above 25 stocks represent 67.60% of the Portfolio.
Yahoo!, Inc.(ss) YHOO 1.36
QUALCOMM, Inc.(ss) QCOM 1.18
Warner-Lambert Company WLA 1.05
Applied Materials, Inc.(ss) AMAT 1.03
The Walt Disney Company DIS 1.03
4
<PAGE>
The Procter & Gamble Company PG 0.94
American Home Products Corporation AHP 0.92
Eli Lilly and Company LLY 0.88
AT&T Corporation - Liberty Media Group (Class A)(ss)LMG/A 0.86
American Express Company AXP 0.84
Medtronic, Inc. MDT 0.84
Fannie Mae FNM 0.82
Amgen, Inc.(ss) AMGN 0.81
VERITAS Software Corporation(ss) VRTS 0.80
Dynergy, Inc. DYN 0.76%
Schering-Plough Corporation SGP 0.74
Compaq Computer Corporation CPQ 0.71
Abbott Laboratories ABT 0.70
Enron Corporation ENE 0.69
Corning, Inc. GLW 0.67
CBS Corporation(ss) CBS 0.64
General Motors Corporation GM 0.64
PepsiCo, Inc. PEP 0.64
MediaOne Group, Inc.(ss) UMG 0.63
McDonald's Corporation MCD 0.62
Nextel Communications, Inc.(ss) NXTL 0.62
Philip Morris Companies, Inc. MO 0.59
The Charles Schwab Corporation SCH 0.58
Sprint Corporation FON 0.58
The Gap, Inc. GPS 0.52
The Gillette Company G 0.50
Comcast Corporation(ss) CMCSK 0.47
Computer Associates International, Inc. CA 0.46
US WEST, Inc. USW 0.45
Automatic Data Processing, Inc. AUD 0.43
Micron Technology, Inc.(ss) MU 0.43
Viacom, Inc. - Class B(ss) VIA/B 0.43
Freddie Mac FRE 0.42
The Boeing Company BA 0.41
Electronic Data Systems Corporation EDS 0.41
Analog Devices, Inc.(ss) ADI 0.40
Immunex Corporation(ss) IMNX 0.40
Pharmacia Corporation PHA 0.39
PMC-Sierra, Inc.(ss) PMCS 0.39
Colgate-Palmolive Company CL 0.38
Network Appliance, Inc.(ss) NTAP 0.38
Target Corporation TGT 0.38
Kimberly-Clark Corporation KMB 0.37
5
<PAGE>
Walgreen Company WAG 0.36
Anheuser-Busch Companies, Inc. BUD 0.35
Xilinx, Inc.(ss) XLNX 0.34
Vastar Resources, Inc. VRI 0.16
(++) Based on closing market price as of April 12, 2000.
(ss) These stocks currently do not pay dividends.
Defined Asset Funds -- Our Philosophy
At Defined Asset Funds, we believe that knowledge and discipline are essential
to sound investment planning. For this reason, our unit investment trusts
provide the information to help you invest appropriately, and the discipline to
help you stay on course.
We've found that diversity and drive can be key to uncovering compelling
investments. To this end, our experienced team of research analysts and
securities traders search Wall Street and beyond, creating portfolios for
strong potential. Our equity funds seek to capitalize on vibrant economic
sectors, innovative quantitative strategies and thorough fundamental analysis.
Our fixed-income funds offer the regular income and stability to help balance
and diversify your investment assets.
At Defined Asset Funds, we set the foundation for each of our portfolios in
this way, because we have a very important goal in mind -- yours.
EQUITY INVESTOR FUNDS
Other Concept Series
Baby Boom Economy Portfolios [SM]
Biotechnology Portfolio
Broadband Portfolio
Earnings Growth Consistency Portfolio
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
Western Premier Portfolio
Select Series
6
<PAGE>
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Institutional Holdings Portfolio
Select Growth Portfolio
Select S&P Industrial Portfolio
Standard & Poor's Industry Turnaround Portfolio
Standard & Poor's Intrinsic Value Portfolio
Index Series
S&P 500 Trust
S&P MidCap Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
Invest in Large-Cap Growth Today!
You can get started with the Large-Cap Growth Portfolio for $250. Your
financial professional can explain how this Portfolio may help meet your
personal investment goals and how it may be appropriate for your IRA account.
You may also request 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.
- There can be no assurance the Portfolio will meet its objective.
- This Portfolio is designed for investors who can assume the increased risks
associated with growth investments, and may not be appropriate for investors
seeking capital preservation or current income.
- This Portfolio may be considered speculative because it is composed of growth
stocks which are subject to above-average price volatility.
- This Portfolio does not reflect recommendations of any individual stocks by
the Sponsor.
7
<PAGE>
- This Portfolio may continue to purchase or hold stocks originally selected,
even though their market value may have changed, they may no longer be included
in the Index, or they may be subject to Sponsor sell recommendations.
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 net capital gains will be subject to tax each
year, whether or not reinvested. However, on rollovers to future Portfolios, if
available, investors may 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 $15.00 per 1,000 units, about
1.50%.
As a % of Public Amount Per
Offering Price 1,000 Units
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge Year 1.50% $15.00
Maximum Sales Charge 2.50% $25.00
Annual Creation and Development Fee
(as a % of net assets) 0.250% $2.48
Estimated Annual Expenses
(as a % of net assets) 0.248% $2.45
Estimated Organization Costs $2.55
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 your 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.
8
<PAGE>
Amount Purchased Total Sales Charge as a % of Public Offering Price
Less than $50,000 2.50%
$50,000 to $99,999 2.25
$100,000 to $249,999 1.75
$250,000 to $999,999 1.50
$1,000,000 or more 0.75
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 32764BR-4/00
[copyright] 2000 Merrill Lynch, Pierce, Fenner & Smith Incorporated, Member
SIPC. Defined Asset Funds is a registered service mark of Merrill Lynch & Co.,
Inc.
9
