DEFINED ASSET FUNDS
PaineWebber
Select Ten Portfolio
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INTERNATIONAL SERIES
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Autumn [A statuesque picture of Kunn-yin,
1995 Chinese Goddess of Mercy.]
Hong Kong
Portfolio
PaineWebber
The Hang Seng Index
The Hang Seng Index, published in 1969, is a recognized indicator of Hong
Kong's stock market performance. The Index is an arithmetic index, weighted
by market capitalization representing about 70% of the total stocks on the
Hong Kong Stock Exchange, and includes companies intended to represent four
major market sectors: 1) commerce and industry; 2) finance; 3) properties; and
4) utilities. The companies include:
Amoy Properties
Bank of East Asia
Cathay Pacific
Cheung Kong
China Light & Power
Citic Pacific
Great Eagle Holdings
Guangdong Investments
Hang Lung Development
Hang Seng Bank
Henderson Land Development
Hong Kong Aircraft Engineering
Hong Kong Electric
Hong Kong and China Gas
Hong Kong and Shanghai Hotels
Hong Kong Telecommunications
Hopewell Holdings
HSBC Holdings
Hutchison Whampoa
Hysan Development Co.
Johnson Electric Holdings
Miramar Hotel & Investment
New World Development
Oriental Press Group
Shangri-La Asia
Shun Tak Holdings
Sino Land Company
South China Morning Post
Sun Hung Kai Properties
Swire Pacific (A)
Television Broadcasts
Wharf Holdings
Wheelock & Co.
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 Hong Kong's, offer growth
potential and provide investors with opportunities for global portfolio
diversification.
Hong Kong's economic growth is reflected in the performance of its stock
market indicator, the Hang Seng Index.
A Simple Strategy For Higher Total Return
The Hong Kong Portfolio seeks higher total return from holding the ten current
highest dividend-yielding stocks in the Hang Seng Price Index.(*) These
companies are among the most highly capitalized in Hong Kong. Purchasing a
portfolio of ten of these stocks instead of just one or two is a way to
diversify your stock holdings.
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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. value of each is
$10,000; next to the right margin the ending values are stated as follows:
$368,679 Ending 6/30/95 (Strategy); $271,147 Ending 6/30/95 (Index).]
How the Portfolio Works
The Hong Kong Portfolio consists of approximately equal values of the ten
stocks in the Hang Seng 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.
Time-Tested Track Record
We analyzed the Strategy since 1978 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.
bullet The Portfolio is not fully invested at all times and not all stocks
may be weighted equally.
[A mountain shart, captioned "Suppose you had invested $10,000 in the
Strategy in 1978?", compares the cumulative annual performance from 1978
through 6/30/95 of the Stocks (ochre) with the Hang Seng Index (blue). A
box in the upper left quadrant indicates the components of the chart. The
x axis reflects dollar amounts in $50,000 increments; the y axis reflect
years. The initial
The chart above represents past performance of the Hang Seng 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 Hong Kong Portfolio could have performed if
its strategy had been employed since 1978. 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.
Defining Your Risks
The stocks in the Portfolio are chosen solely by applying the Strategy. The
Portfolio may be considered 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. Total returns on Hong Kong stocks fluctuate
widely, and the portfolio should not be considered a complete investment
program.
Additionally, future political changes in Hong Kong could impact market values
of Hong Kong stocks generally. 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 Hong Kong
Portfolio*
Name of Issuer Current Dividend Yield*
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1. Oriental Press Group Ltd. 7.73%
2. South China Morning Post (Holdings) Ltd. 6.85
3. Henderson Land Development Co., Ltd. 6.17
4. Amoy Properties Ltd. 5.89
5. Hysan Development Co., Ltd. 5.53
6. Hang Lung Development Co., Ltd. 5.39
7. Shun Tak Holdings Ltd. 5.24
8. Hopewell Holdings Ltd. 4.94
9. Hong Kong Aircraft Engineering Co., Ltd 4.87
10. Great Eagle Holdings Ltd. 4.41
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* 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 that 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 buyer
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
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1993 Spring B 6/21/93 - 7/22/94 20.07%
1993 Autumn C 9/28/93 - 10/28/94 7.93%
1994 Winter A 1/5/94 - 2/3/95 -45.09%
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
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Spring B 6/21/93 - 6/30/95 7.04% 3.42%
Autumn C 9/28/93 - 6/30/95 -8.31% -4.83%
Winter A 1/5/94 - 6/30/95 -33.60% -24.14%
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*** This represents past performance, and is no guarantee of future results.
Historical Performance of Strategy Stocks
If the Strategy had been followed in each of the last 17 years, investors
would have generally achieved a higher total return than by investing in the
entire Hang Seng Index.**
The table below illustrates how the Strategy would have performed on a
theoretical basis from January 1, 1978 through June 30, 1995.* The returns
shown represent past performance of the Hang Seng 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, 1978 - June 30, 1995
Hang Seng Index Strategy Stocks
Year Total Return Total Return
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1978 23.51% 28.04%
1979 78.33 82.28
1980 65.83 41.40
1981 -11.07 -3.86
1982 -47.79 -38.97
1983 -0.89 -7.48
1984 42.54 65.32
1985 51.10 47.52
1986 51.16 60.49
1987 -6.73 3.03
1988 20.60 34.04
1989 10.19 9.41
1990 11.99 6.11
1991 48.25 48.51
1992 33.63 38.94
1993 121.11 106.99
1994 -28.83 -31.45
1/1/95-6/30/95 14.51 12.01
Average** 20.75% 22.89%
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* As indicated, the Strategy Stocks underperformed the Index in 7 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 9 of the 17 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.
Deferred Sales Total Sales Charge
Charge per As A Percentage Of The
Amount Purchased 1,000 units Public Offering Price
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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.
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 Hong Kong 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
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Select Growth Portfolio
Other Defined Asset Funds
Municipal Investment Trust Funds
Corporate Income Funds
International Bond Funds
Government Securities Income Funds
Other Equity Income Funds
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
Teleo-Global Trust
