Supplement dated August 28, 1998
to Prospectuses of
all Corporate Income Fund Series
and GNMA and Freddie Mac Series
of Government Securities Income Fund
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Sales Charge. The sales charges on Units of these Funds have been
reduced. The maximum sales charge (including deferred sales charges on some
Series) on Intermediate, GNMA and Freddie Mac Series is now normally 3.0% of the
public offering price. The maximum sales charge on Monthly Payment and Insured
Series (including deferred sales charges on some Series) is now normally 3.5% of
the public offering price. However, on purchases of outstanding series charging
deferred sales charges, the maximum sales charge will be either $30 or $35 per
Unit (per 1,000 Units on GNMA and Freddie Mac Series), respectively, which may
be more or less than 3.0% or 3.5%, depending on the purchase price.
The maximum sales charge is reduced on any purchase of at least
$100,000 as follows:
Monthly Payment and GNMA, Freddie Mac
Insured Series and Intermediate Series
---------------------- -----------------------
Percentage Percentage Percentage Percentage
of Public of Net of Public of Net
Offering Amount Offering Amount
Amount Invested Price Invested Price Invested
- --------------- ---------- ---------- ---------- ----------
Less than $100,000 3.50% 3.627% 3.00% 3.093%
$100,000 - $249,999 3.25 3.359 2.75 2.828
$250,000 - $499,999 3.00 3.093 2.50 2.564
$500,000 - $999,999 2.75 2.828 2.25 2.302
$1,000,000 or more 2.50 2.564 2.00 2.041
Selling dealers receive 65% of the sales charge.
Revised Sponsors' Fees. The Sponsors receive annual fees to reimburse
the Sponsors for their costs of providing portfolio supervision, bookkeeping and
administrative services and for any other expenses properly chargeable to the
Fund. The fees for these services have been combined and currently total $0.45
per $1,000 face amount a year. While these fees may exceed the costs and
expenses for this Fund, the total of these fees from all Defined Asset Funds
will not exceed the aggregate costs and expenses for all Funds for any calendar
year.
