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International equity markets can offer attractive
growth potential and help you diversify your portfolio. Selecting investments
for your portfolio can be complicated. Defined Asset Funds®
has a disciplined strategy that may help...
United Kingdom Portfolio
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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 searches 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 mindyours. |
The
Strategy
The United Kingdom Portfolio seeks total return by holding the ten highest dividend-yielding stocks of the Financial Times Industrial Ordinary Share Index* (FT Index) for about one year. The Universe The FT Index consists of 30 common stocks chosen by the editors of The Financial Times (London) as representative of British industry and commerce. The companies are major players in their industries, and their stocks are widely held by individual and institutional investors. Dividend Yield The Portfolio looks for potential values in the equity market by investing in established companies whose prices may be depressed. It consists of approximately equal dollar amounts of the ten FT Index stocks with the highest dividend yields, selected shortly before the offering. A higher yield may indicate that a stock is out of favor. As the prices of a stock declines, the dividend yield often increases, indicating a possible buying opportunity. |
New
Portfolio Annually
The Portfolio will hold its
stocks for about one year. At the end of that period, we intend to reapply
the strategy to select a new Portfolio
Discipline Using dividend yield as the selection criteria eliminates emotion from the investment decision-making process. This disciplined contrarian approach to investing selects established stocks that others might be selling. It also eliminates the need to make buy and sell decisions on individual stocks. Tax Efficiency By holding this Portfolio for more than one year, individuals may be eligible for favorable federal tax rates on net long-term capital gainst (currently no more than 20%). On rollovers to future Portfolios, if available, certain investors may defer recognition of gains and losses on stocks that are transferred to the new Portfolio. |
Past Performance of Prior Select Ten International United Kingdom Portfolios | |||||||
Past performance is no guarantee of future results. | |||||||
Series
From Inception Through 9/30/00
(including annual rollovers) |
Most Recently Completed Portfolio | ||||||
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Series | Inception Date | Return | Period | Return | |||
B | 6/21/93 | 3.71% | 6/7/99 - 7/7/00 | -16.55% | |||
C | 9/28/93 | 4.65 | 9/28/98 - 10/29/99 | 19.62 | |||
A | 1/5/94 | 3.55 | 2/4/99-3/10/00 | -6.20 | |||
3 | 7/22/96 | 4.76 | 8/9/99-9/8/00 | -31.22 | |||
5 | 11/1/96 | 3.79 | 11/16/98-12/17/99 | 14.84 | |||
1 | 2/25/97 | 5.84 | 3/8/99-4/7/00 | -1.33 | |||
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 a reduced sales charge on annual rollovers. * The publisher of the Financial Times Index has not participated in any way in the creation of this Portfolio or in the selection of its stocks, nor approved any information included in this brochure. |
Select Ten International United Kingdom Portfolio Series 2000 C | ||
Name of Issuer | Current Dividend Yield | |
1. | Tate & Lyle PLC | 9.11% |
2. | Imperial Chemical Industries PLC | 8.53 |
3. | British Airways PLC | 6.13 |
4. | Royal & Sun Alliance Insurance Group PLC | 5.62 |
5. | Invensys PLC | 5.62 |
6. | Peninsular and Oriental Steam Navigation Company | 5.46 |
7. | Boots Company PLC | 4.90 |
8. | Marks & Spencer PLC | 4.77 |
9. | Scottish Power PLC | 4.74 |
10. | Lloyds TSB Group PLC | 4.47 |
The Portfolio does not reflect the research opinions or any buy or sell recommendations of any of the Sponsors. |
Hypothetical Past Performance of the Strategy (not any Portfolio) 20-Year Annual Total Returns |
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Strategy returns are net of sales charges and expenses.§ | ||||||||
Year | Strategy§ | FT
INDEX |
Year | Strategy§ | FT
INDEX |
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1980 | 27.25 | 31.77 | 1991 | 14.56 | 14.65 | |||
1981 | -8.70 | -5.30 | 1992 | 2.09 | -2.33 | |||
1982 | 42.32 | 0.42 | 1993 | 35.96 | 18.40 | |||
1983 | 40.35 | 21.94 | 1994 | 3.32 | 1.89 | |||
1984 | 3.33 | 2.15 | 1995 | 8.76 | 17.63 | |||
1985 | 77.20 | 54.74 | 1996 | 12.27 | 20.05 | |||
1986 | 31.09 | 24.36 | 1997 | 10.03 | 16.98 | |||
1987 | 46.45 | 38.99 | 1998 | 21.58 | 10.81 | |||
1988 | 9.31 | 6.74 | 1999 | 24.50 | 15.77 | |||
1989 | 26.87 | 22.80 | 6/30/00 | -8.22 | -16.70 | |||
1990 | 7.14 | 10.29 | Average | 18.40% | 13.14% |
Since the stocks in the portfolio were chosen
solely by applying the Strategy, we analyzed the Strategy to see how it
could have performed. Past performance of the Strategy is no guarantee
of future results of any Portfolio. The Strategy (with Portfolio sales
charges and expenses deducted) would have underperformed the FT Index in
7 of the last 20 years. There can be no assurance that any Portfolio will
outperform the Index.
Portfolio results of this value-oriented Strategy may differ from the FT Index for various reasons. For example, FT Index performance may be driven by stocks not held in the Portfolio, such as growth stocks. 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. Changes in the exchange rate of the pound sterling relative to the U.S. dollar affected these figures significantly in certain years. These changes ranged from -20% in 1984 to +27% in 1987, and averaged -0.67% over the last 20 years. Portfolio performance will differ from the Strategy because
Portfolios are established and liquidated at different times during the
year, they normally purchase and sell stocks at prices and currency exchange
rates different
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| Initial date of deposit October 11, 2000. |
| Current dividend yield for each security was calculated by annualizing the last monthly, quarterly or semi-annual ordinary dividend declared on that security and dividing the result by its market value as of the close of trading on October 11, 2000. There can be no assurance that future dividends, if any, will be maintained at the indicated rates. |
§ | Net of Portfolio sales charges (2.50% for the first year, 1.50% for each subsequent year), creation and development fee and estimated expenses. |
Financial
Times Index
The FT Index is an unweighted average of the share prices of these companies: Allied Domecq
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QUANTITIVE RESEARCH
& INDEX
Institutional Holdings Portfolio S&P Market Cap Plus Portfolio S&P 500 Trust S&P MidCap Trust Select S&P Industrial Portfolio Select Growth Portfolio Select Large-Cap Growth Portfolio Select Ten Portfolio (DJIA) Standard & Poor's Industry Turnaround Portfolio Standard & Poor's Intrinsic Value Portfolio United Kingdom Portfolio (Financial Times Index) SECTOR
FUNDAMENTAL RESEARCH
FIXED INCOME
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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. |
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Taxes U.S. investors will include in income their share of dividends, grossed up for certain taxes paid by U.K. issuers; however, they may not be able to obtain refunds for such taxes. Generally, dividends and any net capital gains will be subject to tax each year, whether or not reinvested. 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%. |
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As
a % of Public
Offering Price |
Amount
Per
1,000 Units |
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Initial Sales Charge | 1.00% | $10.00 | ||
Deferred Sales Charge | 1.50% | $15.00 | ||
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Maximum Sales Charge | 2.50% | $25.00 | ||
Creation and Development Fee
(as a % of net assets) |
0.250% | $2.48 | ||
Estimated Annual Expenses
(as a % of net assets) |
0.342% | $3.38 | ||
Estimated Organization Costs | $1.62 | |||
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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. |
If You
Invest: |
Your
Maximum Sales Charge
(as a % of your investment) Will Be: |
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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 | ||
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Diversify
with the United Kingdom Today!
You can get started with $250.Call your financial professional to learn how the United Kingdom Portfolio may help to meet your personal investment goals and how it may be appropriate for your IRA account. You may request a free prospectus containing more complete information, including sales charges, expenses and the special consideratons associated with the risks of international investing including currency risk. You may also download a prospectus from our Web site address listed above. Please read it carefully before you invest or send money. 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. |
Printed on Recycled Paper | 11341BR-10/00 | |
© 2000 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC. Defined Asset Funds is a registered service mark of Merrill Lynch & Co., Inc. |
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