<PAGE>
Defined
Asset Funds(SM)
Government
Securities
Income Fund
- --------------------
FREDDIE MAC SERIES 12
A UNIT INVESTMENT TRUST
7.05%
ESTIMATED CURRENT RETURN
AS OF MARCH 7, 1995
7.41%
ESTIMATED LONG TERM RETURN
AS OF MARCH 7, 1995
/ / INTERMEDIATE TERM
/ / MONTHLY INCOME
/ / AAA RATED
Merrill Lynch,
Pierce, Fenner & Smith Incorporated
Defined Asset Funds
P.O. Box 9051
Princeton, NJ 08543-9051
(609) 282-8500
<PAGE>
<PAGE>
INVESTMENT SUMMARY AS OF MARCH 7, 1995
<TABLE>
<S> <C>
ESTIMATED CURRENT RETURN( A ) (based on Public Offering Price) 7.05%
ESTIMATED LONG TERM RETURN( A ) (based on Public Offering Price) 7.41%
PUBLIC OFFERING PRICE PER 1,000 UNITS (including 3.25% sales charge) $ 1,005.97( B )
FACE AMOUNT OF SECURITIES $ 500,000
INITIAL NUMBER OF UNITS( C ) 500,000
FRACTIONAL UNDIVIDED INTEREST IN FUND REPRESENTED BY EACH UNIT 1/500,000TH
SPONSORS' REPURCHASE PRICE AND
REDEMPTION PRICE PER 1,000 UNITS( D ) (based on bid side evaluation) $ 972.03( B )
Daily Rate at which Estimated Net Interest Accrues per 1,000 Units........ .0197%
MONTHLY INCOME DISTRIBUTIONS PER 1,000 UNITS
First distribution to be paid on April 23, 1995 to Holders of record on
April 10, 1995....................................................... $ 5.91
Second and subsequent distributions will be paid on or shortly after
the twenty-third day of each month to Holders of record of Units on
the tenth day of the month.
</TABLE>
- ------------
(a) Estimated Current Return represents annual interest income after estimated
annual expenses divided by the maximum public offering price including a 3.25%
maximum sales charge. Estimated Long Term Return is the net annual percentage
return based on the yield on each underlying Security weighted to recent market
value and estimated average life. Estimated average life for the Fund is
approximately 6 years; this estimate is based on various assumptions discussed
more fully under 'Income; Estimated Current Return; Estimated Long Term Return'.
Estimated Long Term Return is adjusted for estimated expenses and the maximum
offering price but not for delays in the Fund's distribution of income.
Estimated Current Return shows current annual cash return to investors while
Estimated Long Term Return shows the return on Units held to estimated average
life, reflecting prepayments of principal, maturities, discounts and premiums on
underlying Securities. Actual returns will vary with purchase price, principal
payments and prepayments on the underlying mortgages and changes in Fund income
after expenses.
(b) Plus accrued interest.
(c) The Sponsors may create additional Units during the offering period of the
Fund.
(d) During the initial offering period, the Fund's Sponsors intend to offer to
purchase Units at prices based on the offer side value of the underlying
Securities. Thereafter the Sponsors intend to maintain such a market based on
the bid side value of the underlying Securities which will be equal to the
Redemption Price.
THE EFFECT OF VOLUME DISCOUNTS
For larger purchases the sales charge has been reduced. This increases your
effective return on a Unit.
To give you an idea of these volume purchase discounts please examine the
chart below. This example is based on the public offering price as of the date
of the prospectus.
<TABLE>
<S> <C> <C>
INITIAL OFFERING PERIOD
SALES CHARGE
(GROSS UNDERWRITING PROFIT)
--------------------------------
AS PERCENT OF AS PERCENT
OFFER SIDE OF
PUBLIC NET AMOUNT
NUMBER OF UNITS OFFERING PRICE INVESTED
---------------- ------------
Less than 100,000................................................. 3.25 % 3.359 %
100,000 - 499,999................................................. 2.75 2.828
500,000 - 749,999................................................. 2.00 2.041
750,000 - 999,999................................................. 1.25 1.266
1,000,000 or more................................................. 1.00 1.010
</TABLE>
<TABLE>
<S> <C> <C>
SECONDARY MARKET SALES
SALES CHARGE
(GROSS UNDERWRITING PROFIT)
------------------------------
AS PERCENT OF AS PERCENT
BID SIDE OF
PUBLIC NET AMOUNT
NUMBER OF UNITS OFFERING PRICE INVESTED
-------------- ------------
Less than 100,000................................................... 3.50 % 3.627 %
100,000 - 499,999................................................... 3.00 3.093
500,000 - 749,999................................................... 2.25 2.302
750,000 - 999,999................................................... 1.50 1.523
1,000,000 or more................................................... 1.25 1.266
</TABLE>
<PAGE>
<PAGE>
DEFINED GOVERNMENT SECURITIES INCOME FUNDS
Our defined portfolios of mortgage-backed Freddie Mac
Gold Participation Certificates (Gold PCs) offer
investors a simple and convenient way to participate in
the Federal Home Loan Mortgage Corporation (FHLMC) market
while earning an attractive return. And by purchasing
Freddie Mac funds, investors avoid the problem of
selecting securities by themselves.
THE SAFETY OF FHLMC BACKED SECURITIES
The fund offers an attractive rate of return, convenience
and numerous benefits, plus the assurance of investing
only in securities that are guaranteed by the FHLMC.
While Freddie Mac is a corporate instrumentality of the
U.S., the U.S. government does not guarantee these
securities. FHLMC guarantees that the holders
of these securities will be paid every penny of interest
and principal due to them. The fund itself is not
guaranteed by
FHLMC, only the securities it holds. The value of the
units will fluctuate with changes in market conditions
and other factors.
MONTHLY DISTRIBUTIONS
The fund will distribute principal and income monthly.
Principal from sales, redemptions, prepayments and
maturities of the securities is distributed as it is
received. Interest payments, of course, decrease as
principal is returned.
AAA-RATED INVESTMENT QUALITY
Based on the creditworthiness of the FHLMC guarantee,
Standard & Poor's has rated units of the fund AAA, its
highest rating.
A LIQUID INVESTMENT
Although not legally required to do so, the Sponsors have
maintained a secondary market for their funds for over 20
years. You can cash in your units at any time. Your price
is based on the market value of the fund's securities at
that time as determined by an independent evaluator.
There is never a fee for cashing in your investment.
REINVESTMENT OPTION
You can elect to reinvest distributions of principal and
redemption proceeds, interest, or both in additional
units of the fund at a reduced sales charge of 1.0% of
the public offering price. Reinvesting your interest
income can add the power of compound interest to your
investment. Reinvesting your principal in additional
units keeps your capital continuously working for you and
helps you maintain your income flow.
RISK FACTORS
Unit price fluctuates and is affected by interest rates
as well as the financial condition of the issuer of the
securities.
- --------------------------------------------------------------------------------
Information contained herein is subject to completion or amendment. A
registration statement relating to the securities of the next Trust in the
series of Government Securities Income Fund has been filed with the Securities
and Exchange
Commission. The securities of that Trust may not be sold nor may offers to buy
be accepted prior to the time that registration statement becomes effective.
This
brochure shall not constitute an offer to sell or the solicitation of an offer
to buy nor shall there be any sale of these securities in any State in which
such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such State.
------------------------------
A free prospectus containing more complete information, including charges and
expenses, regarding this Trust is available from your financial professional.
Please read the prospectus carefully before you invest.
<PAGE>
<PAGE>
PORTFOLIO OF GOVERNMENT
SECURITIES INCOME FUND,
FREDDIE MAC SERIES 12
DEFINED ASSET FUNDS
ON THE INITIAL DATE OF DEPOSIT,
MARCH 8, 1995
<TABLE>
<S> <C> <C> <C>
PORTFOLIO NO. AND TITLE OF FACE RANGE OF STATED
SECURITIES CONTRACTED FOR AMOUNT COUPON MATURITIES(1)
----------- -------- -------------------
1. Federal Home Loan Gold Mortgage Participation Certificates $ 250,000 7.00% 1/15/09 to 1/15/10
2. Federal Home Loan Gold Mortgage Participation Certificates 250,000 7.50% 1/15/09 to 1/15/10
-----------
$ 500,000
-----------
-----------
</TABLE>
- ---------------
NOTES
(1) The principal amount of Securities listed as having the range of maturities
shown is an aggregate of individual Securities having varying ranges of
maturities within that shown. They are listed as one category of Securities
with a single range of maturities because of current market conditions that
accord no difference in price among the Securities grouped together on the
basis of the difference in their maturity ranges. At some time in the
future, however, the difference in maturity ranges could affect the market
value of the individual Securities.
------------------------
All Securities are represented by contracts to purchase such Securities. The
contracts to purchase Securities were acquired on March 7, 1995 and are expected
to be settled 5 days after the initial settlement date for Units. Interest
will begin accruing to the benefit of Holders on the settlement date for the
Units.
In addition to the information as to the Securities set forth under Portfolio,
the Trustee will furnish Holders a statement listing the name of issuer, pool
number, interest rate, maturity date and principal amount for each Security
in the Portfolio upon written request.
15083-3/95
<PAGE>
<PAGE>
