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Defined Asset FundsSM
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<TABLE>
<S> <C>
Government 6.47% ESTIMATED CURRENT RETURN shows the estimated annual
Securities cash to be received from interest-bearing securities in
Income Fund the Portfolio (net of estimated annual expenses) divided
by the Public Offering Price (including the maximum sales
charge).
GNMA SERIES--1Y
6.61% ESTIMATED LONG TERM RETURN is a measure of the
estimated return over the estimated life of the Fund
A UNIT INVESTMENT (about 10 years). This represents an average of the
TRUST yields to
maturity (or in certain cases, to an earlier call date)
of the
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individual securities in the Portfolio, adjusted to
reflect the maximum sales charge and estimated expenses.
/ /MONTHLY INCOME The aver-
age yield for the Portfolio is derived by weighting each
security's yield by its market value and the time
remaining to the call or maturity date, depending on how
the security is priced. Unlike Estimated Current Return,
/ /AAA RATED Estimated
6.47%
ESTIMATED CURRENT Long Term Return takes into account maturities, discounts
RETURN and premiums of the underlying securities.
No return estimate can be predictive of your actual
return because returns will vary with purchase price
(including
sales charges), how long units are held, changes in
6.61% Portfolio composition, changes in interest income and
ESTIMATED LONG TERM changes in fees and expenses. Therefore, Estimated
RETURN Current Return
and Estimated Long Term Return are designed to be com-
parative rather than predictive. A yield calculation
which is more comparable to an individual security may be
higher or lower than Estimated Current Return or
Estimated Long Term Return which are more comparable to
AS OF JUNE 13, 1995 return calculations used by other investment products.
</TABLE>
<TABLE>
<S> <C>
SPONSORS: THESE SECURITIES HAVE NOT BEEN APPROVED OR
Merrill Lynch, DISAPPROVED BY THE SECURITIES AND EXCHANGE
Pierce, Fenner & COMMISSION OR ANY STATE SECURITIES COMMISSION
Smith Incorporated NOR HAS THE COMMISSION OR ANY STATE SECURITIES
Smith Barney Inc. COMMISSION PASSED UPON THE ACCURACY OR ADE-
Prudential QUACY OF THIS DOCUMENT. ANY REPRESENTATION
Securities TO THE CONTRARY IS A CRIMINAL OFFENSE.
Incorporated Inquiries should be directed to the Trustee at
Dean Witter Reynolds 1-800-323-1508.
Inc. Prospectus dated June 14, 1995.
PaineWebber Investors should read this prospectus carefully and
Incorporated retain it for future reference.
</TABLE>
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Defined Asset FundsSM
Defined Asset Funds is America's oldest and largest family of unit investment
trusts, with over $95 billion sponsored since 1971. Each Defined Asset Fund is a
portfolio of preselected securities. The portfolio is divided into 'units'
representing equal shares of the underlying assets. Each unit receives an equal
share of income and principal distributions.
Defined Asset Funds offer several defined 'distinctives'. You know in advance
what you are investing in and that changes in the portfolio are limited - a
defined portfolio. Most defined bond funds pay interest monthly - defined
income. The portfolio offers a convenient and simple way to invest - simplicity
defined.
Your financial professional can help you select a Defined Asset Fund to meet
your personal investment objectives. Our size and market presence enable us to
offer a wide variety of investments. The Defined Asset Funds family offers:
Municipal portfolios
Corporate portfolios
Government portfolios
Equity portfolios
International portfolios
The terms of Defined Funds are as short as one year or as long as 30 years.
Special defined bond funds are available including: insured funds, double and
triple tax-free funds and funds with 'laddered maturities' to help protect
against changing interest rates. Defined Asset Funds are offered by prospectus
only.
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Defined GNMA Series
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Our defined portfolio of mortgage-backed GNMA Securities offers you a simple and
convenient way to participate in the GNMA market and obtain monthly income while
earning an attractive return as well as the assurance of an investment in
securities that are guaranteed by GNMA, a federal agency.
Investment Objectives
To obtain safety of capital and current monthly income distributions through
investment in a portfolio of interest-bearing GNMA securities. The full faith
and credit of the United States is pledged to the payment of the Securities but
the units of the Fund, as such, are not directly backed.
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Defining Your Portfolio
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Professional Selection and Supervision
The Portfolio of Securities is selected by experienced buyers and research
analysts. The Fund is not actively managed; however it is regularly reviewed and
a Security can be sold if retaining it is considered detrimental to investors'
interests.
Portfolio Composition
The Portfolio consists of 2 different issues of mortgage-backed Securities of
the modified pass-through type guaranteed by the Government National Mortgage
Association (GNMA): 6.5% Ginnie Maes maturing 8/15/14 to 6/15/25, 50%; 7% Ginnie
Maes maturing 8/15/14 to 6/15/25, 50%. All of the Ginnie Maes in the Fund are
backed by pools of long term mortgages on 1-to 4-family dwellings. The Ginnie
Maes are fully guaranteed as to payment of principal and interest by GNMA. Based
on the creditworthiness of the U.S. government, Standard & Poor's has rated
units of the Fund AAA, its highest rating.
Tax Information
Distributions of ordinary income or capital gain from the Fund will be included
in a U.S. investor's gross income, but will not be eligible for the
dividends-received deduction for corporations. Distributions to investors who
are not U.S. citizens or residents will generally be subject to withholding tax
at the statutory rate of 30% (or a lesser treaty rate).
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Defining Your Investment
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Public Offering Price per 1,000 Units $1,019.21
The Public Offering Price as of June 13, 1995, the business day prior to the
Initial Date of Deposit, is based on the aggregate offer side value of the
underlying Securities in the Fund ($489,217.50), the price at which they can be
directly purchased by the public assuming they were available, divided by the
number of units outstanding (500,000) times 1,000 plus a maximum sales charge of
4.00%. The Public Offering Price on any subsequent date will vary. An amount
equal to net accrued but undistributed interest on the unit is added to the
Public Offering Price. The underlying Securities are evaluated by an independent
evaluator at 3:30 p.m. Eastern time on every business day.
Low Minimum Investment
You can get started with a minimum purchase of about 1,000 Units. There is no
minimum purchase for payroll deduction plans.
Principal Distributions
Principal from sales, redemptions and maturities of Securities in the Fund will
be distributed to investors periodically when the amount to be distributed is
more than $5.00 per 1,000 units.
Reinvestment Option
You can elect to automatically reinvest your distributions into a separate
portfolio of mortgage-backed securities. Reinvesting helps to compound your
income.
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Termination Date
The Fund will generally terminate no later than one year following the maturity
date of the last maturing Security listed in the Portfolio. The Fund may be
terminated earlier if the value is less than 40% of the face amount of
Securities deposited.
Sponsors' Profit or Loss
The Sponsors' profit or loss associated with the Fund will include the receipt
of applicable sales charges, fluctuations in the Public Offering Price or
secondary market price of units, a loss of $548.13 on the initial deposit of the
Securities and a gain or loss on subsequent deposits of additional Securities.
Selling Your Investment
You may sell your units at any time. Your price is based on the Fund's then
current net asset value (based on the offer side evaluation of the Securities
during the initial public offering period and on the lower, bid side evaluation
thereafter, as determined by an independent evaluator), plus accrued interest.
The bid side redemption and secondary market repurchase price per 1,000 units as
of June 13, 1995 was $977.19 ($42.02 less than the Public Offering Price). There
is no fee for selling your units.
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Defining Your Risks
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Risk Factors
U.S. Government securities are not affected by credit risk but are subject to
changes in market value resulting from changes in interest rates. Unit price
fluctuates and the value of units will decline if interest rates increase. The
mortgages underlying the GNMA Securities are amortized, and there is no
prepayment protection. The potential for appreciation that might otherwise
result from a decline in interest rates would be limited by any increase in
prepayments by mortgagors as interest rates decline. Investors may also receive
payments of principal sooner than anticipated, and interest payments will
decrease as principal is returned. Because regular payments of principal will be
received over the life of the Fund and because of the possible maturity, sale or
other disposition of Securities, the size, composition and return of the
Portfolio may change at any time. Because of the sales charges, returns of
principal and fluctuations in unit price, among other reasons, the sale price
will generally be less than the cost of your units. There is no guarantee that
the Fund will achieve its investment objective.
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Defined Portfolio
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Government Securities Income Fund
GNMA Series--1Y June 14, 1995
<TABLE>
<CAPTION>
FACE RANGE OF STATED COST
PORTFOLIO NO. AND TITLE AMOUNT COUPON MATURITIES(1) TO FUND(2)
<C> <S> <C> <C> <C> <C>
----------- ------- -------------------- --------------
1. Government National Mortgage Association, $ 250,000 6.50% 8/15/14 to 6/15/25 $ 241,640.00
Modified Pass-Through Mortgage-Backed
Securities
2. Government National Mortgage Association, 250,000 7.00 8/15/14 to 6/15/25 247,577.50
Modified Pass-Through Mortgage-Backed
Securities
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$ 500,000 $ 489,217.50
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----------- --------------
</TABLE>
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(1) The face 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. In addition to the information as to the GNMA
modified pass-through mortgage-backed Securities set forth above, the
Trustee will furnish investors a statement listing the name of issuer, pool
number, interest rate, maturity date and above amount for each Security in
the Portfolio upon written request.
(2) Evaluation of the Securities by the Evaluator is made on the basis of
current offer side evaluation. On this basis, 100% of the Securities were
deposited at a discount from par. On the business day prior to the Initial
Date of Deposit, the bid side evaluation was .13% lower than the offer side
evaluation.
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Defining Your Income
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Monthly Interest Income
The Fund pays monthly income, even though the Securities generally pay interest
semi-annually.
What You May Expect
(PAYABLE ON THE 23RD DAY OF THE MONTH TO HOLDERS OF RECORD ON THE 17TH DAY OF
THE MONTH):
<TABLE>
<S> <C>
Regular Monthly Income per 1,000 units
(Beginning on July 23, 1995): $5.49
Annual Income per 1,000 units: $65.98
</TABLE>
Estimated cash flows are available upon request from the Sponsors.
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Defining Your Costs
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Sales Charges
Although the Fund is a unit investment trust rather than a mutual fund, the
following information is presented to permit a comparison of fees and an
understanding of the direct or indirect costs and expenses that you pay.
<TABLE>
<CAPTION>
As a %
As a % of Secondary
of Initial Offering Market
Period Public Public Offering
Offering Price Price
<S> <C> <C>
------------------- ---------------
Maximum Sales Charges 4.00% 4.25%
</TABLE>
The Fund (and therefore the investors) will bear all or a portion of its
organizational costs--including costs of preparing the registration statement,
the trust indenture and other closing documents, registering units with the SEC
and the states and the initial audit of the Portfolio--as is common for mutual
funds. Historically, the Sponsors of unit investment trusts have paid all the
costs of establishing those trusts.
Estimated Annual Fund Operating Expenses
<TABLE>
<CAPTION>
As a %
of Average
Net Assets* Per 1,000 Units
<S> <C> <C>
------------------- ---------------
Trustee's Fee .086% $.84
Maximum Portfolio
Supervision,
Bookkeeping and
Administrative Fees .026% $.25
Organizational
Expenses .020% $.20
Evaluator's Fee .003 $.03
Other Operating
Expenses .020% $.20
TOTAL .155% $1.52
</TABLE>
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*Based on the mean of the bid and offer side evaluations.
Costs Over Time
You would pay the following cumulative expenses on a $1,000 investment, assuming
a 5% annual return on the investment throughout the indicated periods:
<TABLE>
<S> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
$42 $45 $48 $59
</TABLE>
The example assumes reinvestment of all distributions into additional units of
the Fund (a reinvestment option not offered by this Fund) and uses a 5% annual
rate of return as mandated by Securities and Exchange Commission regulations
applicable to mutual funds. The Costs Over Time above reflect both sales charges
and operating expenses on an increasing investment (because the net annual
return is reinvested). The example should not be considered a representation of
past or future expenses or annual rate of return; the actual expenses and annual
rate of return may be more or less than the example.
UNITS OF THIS FUND MAY NO LONGER BE AVAILABLE AND THEREFORE INFORMATION
CONTAINED HEREIN MAY BE SUBJECT TO AMENDMENT. A REGISTRATION STATEMENT RELATING
TO SECURITIES OF A FUTURE SERIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED
PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS DOCUMENT
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.
15116-6/95
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