DEFINED ASSET FUNDS
Select Ten Portfolio
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INTERNATIONAL SERIES
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Autumn
1995
United
Kingdom
Portfolio
[On the cover: a picture of Big Ben with Parliament in the background].
PaineWebber
Financial Times Index
The FT Index consists of 30 common stocks chosen by the editors of The
Financial Times (London) to be 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. The FT
Index is an unweighted average of the share prices of these companies:
ASDA Group
Allied Domecq
BICC
BOC Group
BTR
Blue Circle Industries
Boots Company
British Airways
British Gas
British Telecommunications
British Petroleum Company
Cadbury Schweppes
Courtaulds
Forte
General Electric Company
Glaxo Wellcome
Grand Metropolitan
GKN
Guinness
Hanson
Imperial Chemical Industries
Lucas Industries
Marks & Spencer
National Westminster Bank
Penninsular & Oriental Steam Navigation Company
Reuters Holdings
Royal Insurance Holdings
SmithKline Beecham
Tate & Lyle
Thorn EMI
Today's global marketplace offers many opportunities. Defined Asset Funds'
Select Ten Portfolio - International Series uses a simple investment strategy
and offers a way to take advantage of opportunities in selected countries.
Global Opportunities
Many international equity markets, such as the London Stock Exchange, offer
attractive growth potential and provide U.S. investors with opportunities for
global portfolio diversification.
A Simple Strategy For Higher Total Return
The United Kingdom Portfolio seeks higher total return from holding the ten
current highest dividend-yielding stocks in the Financial Times Industrial
Ordinary Share (FT) Index.(*) Purchasing a portfolio of ten of these stocks
instead of just one or two is a way to diversify your stock holdings.
How the Portfolio Works
The UK Portfolio consists of approximately equal values of the ten stocks in
the FT Index having the highest dividend yield shortly before the initial
offering date (the "Strategy Stocks") and will hold them for about one year.
After one year, the Portfolio will liquidate. You may choose to roll your
proceeds into the next portfolio of the then-current Strategy Stocks, if
available, at a significantly reduced sales charge or you can take the cash.
Offers U.S. Investors Some Big Advantages
bullet Low costs. The minimum purchase is about $1,000, or about $250 for
IRAs or Keogh accounts. With a total sales charge of 2 3/4%,
Portfolio investors will benefit from the reduced commissions and
institutional prices available to the Portfolio.
bullet Semi-annual dividends. This means investors receive two
consolidated checks per year, not 20 for the 10 stocks, and
payments are in U.S. dollars.
bullet Reinvestment. You may choose to reinvest your dividends at a reduced
sales charge to compound your income.
bullet Year-end rollover option to continue with the Strategy.
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(*)The publisher of the Hang Seng Index has not participated in any way in the
creation of the Portfolio or in the selection of its stocks nor approved any
information included in this brochure.
Time-Tested Track Record
We analyzed the Strategy over a 20-year period to see how it had performed,
and we offered the first Select Ten International Portfolio in 1993.
Actual performance of a Portfolio will differ from that of the Strategy Stocks
because:
bullet The Portfolio has sales charges and pays brokerage commissions and
expenses.
bullet Strategy Stock figures are generally annual figures based on the
closing sale prices on December 31, while the Portfolios are
established and liquidated at different times during the year.
bullet Portfolios normally purchase and sell stocks at prices and currency
exchange rates different from the closing price and currency
exchange rate used in determining the Portfolio's unit price.
[A mountain chart, captioned "Suppose you had invested $10,000 in the
Strategy in 1975?", compares the cumulative annual performance from 1975
through 6/30/95 of the Strategy Stocks (ochre) with the Financial Times
Index (crimson). A box in the upper left quadrant indicates the components
of the chart. The x axis reflects dollar amounts in $100,000 increments;
the y axis reflects years. The initial value of each is $10,000; next to
the right the ending values are stated as follows: $1,289,284 Ending
6/30/95 (Strategy); $294,094 Ending 6/30/95 (Index).]
The chart above represents past performance of the FT Index and the
Strategy Stocks (but not any portfolio) and should not be considered
indicative of future results. The performance of the Strategy is a
hypothetical example of how the United Kingdom Portfolio could have
performed if its strategy has been employed since 1975. The chart assumes
that all dividends during a year are reinvested at the end of that year.
It does not reflect sales charges, commissions, expenses or taxes.
bullet The Portfolio is not fully invested at all times and not all stocks
may be weighted equally.
Defining Your Risks
The stocks in the Portfolio are chosen solely by applying the Strategy. The
Portfolio may be speculative; it is appropriate for investors able and willing
to assume the risks generally associated with equity investments traded in a
foreign currency. It may not be appropriate for investors seeking either
preservation of capital or high current income, nor would it be suitable for
investors unable or unwilling to assume the increased risks of higher price
volatility and currency fluctuations associated with investments in
international equities.
The Strategy Stocks may have higher yields because they or their industry are
experiencing financial difficulty or are out of favor. There can be no
assurance that the Portfolio or Strategy will meet its objective. The value
of your investment will fluctuate with the prices of the underlying stocks.
In addition, there is no guarantee that dividend rates will be maintained or
that stock prices or currency exchange rates will not decrease.
Select Ten Portfolio - International Series Autumn 1995 United Kingdom
Portfolio*
Name of Issuer Current Dividend Yield**
1. Penninsular & Oriental Steam Navigation Company 5.54%
2. Hanson PLC 5.54
3. British Gas PLC 5.38
4. Allied Domecq PLC 5.19
5. BTR PLC 4.38
6. British Telecommunications PLC 4.34
7. BICC PLC 3.96
8. Glaxo Wellcome PLC 3.83
9. National Westminster Bank PLC 3.81
10. Royal Insurance Holdings PLC 3.74
* Initial date of deposit - September 11, 1995.
** Current dividend yield for each security was calculated by adding the most
recent interim and final dividends declared on that security and dividing the
result by the market value of the security as of the close of trading on
September 11, 1995. Returns are subject to fluctuations in foreign currency
exchange rates and there is no assurance that future dividends, if any, will
be maintained at the indicated rates.
The Portfolio may not necessarily reflect the research opinions or any buy or
sell recommendation of any of the Sponsors.
Prior Select Ten Portfolio Performance***
The following shows total returns (price changes plus dividends received,
divided by the maximum initial offering price, each converted into U.S.
dollars) for each completed prior series, and reflects all sales charges and
expenses.
Fund Term Total Return
1993 Spring B 6/21/93 - 7/22/94 16.36%
1993 Autumn C 9/28/93 - 10/28/94 10.52%
1994 Winter A 1/5/94 - 2/3/95 -4.21%
On the same basis, including presently outstanding series, a holder who rolled
over all income and principal distributions in the next available series would
have received the following results:
Average
Annual
Series Term Total Return Total Return
Spring B 6/21/93 - 6/30/95 15.42% 7.34%
Autumn C 9/28/93 - 6/30/95 12.79% 7.11%
Winter A 1/5/94 - 6/30/95 9.07% 6.03%
*** This represents past performance, and is no guarantee of future results.
Historical Performance
If the Strategy had been followed for the last 20 years, an investor generally
would have achieved a higher total return than by investing in the entire
Financial Times Index.
The table below illustrates how the Strategy would have performed on a
theoretical basis from January 1, 1975 through June 30, 1995.* The returns
shown represent past performance of the United Kingdom and Strategy Stocks,
and are no guarantee of future results. The figures do not reflect the
Portfolio's sales charges, commissions, expenses, or reinvestment of
dividends.
Strategy Illustration*
January 1, 1975 - June 30, 1995
Year FT Index Strategy Stocks
Total Return Total Return
1975 111.59 142.99
1976 -15.58 -15.89
1977 61.92 87.27
1978 9.92 17.73
1979 3.59 4.76
1980 31.77 30.15
1981 -5.30 -6.26
1982 0.42 44.03
1983 21.94 42.06
1984 2.15 5.50
1985 54.74 78.64
1986 24.36 32.88
1987 38.99 48.10
1988 6.74 11.38
1989 22.80 28.71
1990 10.29 9.26
1991 14.65 16.57
1992 -2.33 4.27
1993 18.40 37.69
1994 1.89 5.46
1/1/95-6/30/95 9.53 6.71
Average** 17.93% 26.75%
* As indicated, the Strategy Stocks underperformed the Index in 4 years and
there can be no assurance that the Portfolio will outperform the Index. After
Portfolio sales charges and expenses, a portfolio would have outperformed the
index in 14 of the 20 years.
** Average annual total returns represent the annual rate of price
appreciation, plus dividends reinvested at the end of each year.
Defining Your Cost
Low Initial Sales Charge/Reduced Charge for Rollovers
First-time investors pay a 1% maximum sales charge when they buy. For
example, on a $1,000 investment, $990 is invested in income-producing
stocks. In addition, a deferred sales charge of $1.75 per 1,000 units will
be deducted from the Portfolio's net asset value each month over the last
ten months of the Portfolio's life ($17.50 total). This deferred method of
payment keeps more of your money invested over a longer period of time.
After a year, should you roll the proceeds of your investment into a new
portfolio, if available, you will not be subject to an additional 1%
initial charge, just the $17.50 deferred fee. If you sell your investment
before maturity, the deferred sales charge and, in the secondary market, a
charge to reflect the estimated costs of liquidating securities to meet
cash redemptions, will be deducted.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Amount Purchased Deferred Sales Total Sales Charge
Charge per As A Percentage Of The
1,000 units Public Offering Price
Less Than $50,000 $17.50 2.75%
$50,000 to $99,000 $17.50 2.50
$100,000 to $249,999 $17.50 2.00
$250,000 or more $17.50 1.75
Tax Reporting
The proceeds received when you sell this investment will reflect the deduction
of the deferred sales charge and the charge for organizational expenses. In
addition, the annual statement and the relevant tax reporting forms you
receive at year-end will reflect the actual amount paid to you (not including
the deferred sales charge and the charge for organizational expenses).
Accordingly, you should not increase your tax basis in your units by the
deferred sales charge and the charge for organizational expenses. 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.
Don't Delay
Call your financial professional for a free prospectus containing more
complete information, including all charges and expenses, and the special
considerations associated with the risks of international investing
including currency risk. Read it carefully before you invest.
Additional United Kingdom Portfolios containing the then-highest
dividend-yielding stocks may be created in the future. Information contained
herein is subject to completion or amendment. A registration statement
relating to the securities of the next Portfolio in this Select Ten Portfolio
- - International Series has been filed with the Securities and Exchange
Commission. The securities of the Portfolio may not be sold nor may offers to
buy be accepted prior to the time that registration becomes effective. This
brochure may 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.
Other Select Series
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Hong Kong Portfolio (Hang Seng Index)
Select Growth Portfolio
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Corporate Income Funds
International Bond Funds
Government Securities Income Funds
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15th Utility Common Stock Series
Blue Chip Stock Series 3 (Premier American Portfolio)
Health Care Trust II
Natural Gas Trust 2
Northwest Investment Trust
Real Estate Income Fund
S&P 500 Index Trust 2
S&P MidCap Trust
Telecommunications Utility Trust
Tele bullet Global Trust
