IRA IDEAL
Defined Asset Funds(sm)
CONCEPT o SERIES
Tele-Global Trust 5
IN TOUCH WITH PROGRESS . . .
ON-LINE FOR GROWTH
[LOGO] MERRILL LYNCH
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IN TOUCH WITH THE FUTURE
LOGO
o A business woman e-mails her office. Her message is instantly beamed
across the ocean.
o A concerned father checks on his child. He puts his car phone on
speaker.
o A student works on a term paper. Most of the research is downloaded from
the internet.
From the fast-paced world of business, to the way a family keeps in touch,
our lives have been changed by astounding advances in communications. More than
a century ago, Samuel Morse gave us the telegraph and Alexander Graham Bell
changed our lives with the telephone. Since that time, progress in
telecommunications technology, along with an expanding demand, have created an
industry that has become increasingly attractive to investors. Favorable
domestic regulatory trends, technological advances and growing global potential
continue to brighten the outlook for these stocks.
INTRODUCING TELE-GLOBAL TRUST 5
ON-LINE FOR GROWTH
From cellular service to video-conferencing to e-mail -- communication
methods are increasing at a startling pace. The Defined Asset FundsSM Tele-
Global Trust offers an opportunity to participate in the communications
revolution. This two-year Trust seeks capital appreciation by investing in
telecommunications companies we believe are well-positioned to benefit from
industry globalization.
DEFINED PORTFOLIO
Because this is a Defined Asset Fund you know in advance what you're
buying. This preselected Portfolio of companies should remain relatively
unchanged for the life of the Trust. And since this one investment gives you
access to 31 telecommunications companies, there's no need for multiple stock
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purchases. Just one easy price to track -- which you can follow weekly in
Barron's.
PROFESSIONALLY RESEARCHED
Our experienced research analysts used an extensive screening process to
determine which stocks should be included in the Portfolio. The process used to
screen the stocks included:
o Identifying telecommunications companies which they believe have
growth potential over the next two years.
o Performing thorough financial analysis including the review of each
company's operating history, balance sheet and cash flow to determine
credit quality.
o Reviewing the stocks for liquidity, market share and timeliness of
purchase.
WHY TELECOMMUNICATIONS?
FAVORABLE REGULATORY TRENDS
U.S. legislation has brought a host of opportunities to
telecommunications, enabling telephone companies and cable providers to cross
their traditional service boundaries and offer multi-service packages. Now
cable companies can connect phone calls, local phone companies have entered the
long-distance arena, and both local and long-distance phone carriers can
broadcast to televisions.
As the breadth of products and services continues to expand, so do the
potential benefits to consumers and investors.
GLOBAL OPPORTUNITIES ABOUND
Although the Trust consists mainly of domestic stocks, 33% of the
Portfolio is concentrated in telecommunications companies from other countries
that seem poised for growth. It is anticipated that the privatization of
telephone companies that were once government-owned will continue.
Privatization has had a favorable impact on the profitability of some foreign
telecommunications companies.
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TECHNOLOGICALLY FRIENDLY
Adding a second telephone line for your modem, buying a pager for your
teenager, getting a cable hook-up to catch the latest movies and download
computer files -- these services create common demands: hardware and service
systems for transmission.
Telecommunications equipment manufacturers are expected to profit as
consumers place increasing demands on service providers, which in turn will
continue to retool their own systems to meet rising demands.
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EVOLUTION OF TELECOMMUNICATIONS
A look at the historical points that have shaped the new world of
telecommunications.
<TABLE>
1884 1876 1925 1965 1966
<S> <C> <C> <C> <C>
Samuel Morse Alexander Bell Labs "Early Bird" is Development
sends Graham Research the world's of silicon
his historic Bell's first produces the first first chip makes
telegraph telephone talking motion commercial computers
message, call-- "Mr. pictures. communica- smaller and
"What hath Watson, come tions satellite. much faster.
God wrought?" here, I want
you."
1972 1990 1996 1998
<S> <C> <C> <C>
FCC opens up Cellular Landmark Lucent introduces
domestic phones telecom- 400-gigabit fiber-
satellite trans- grow in munications optic cable that can
mission. popularity. legislation transmit the
passed. equivalent of
90,000 encyclo-
pedia volumes per
second!
</TABLE>
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A DEFINED PORTFOLIO
<TABLE>
<S> <C> <C>
COMPANY SYMBOL RESEARCH EVALUATION
BELL REGIONALS
BELLSOUTH CORPORATION BLS Growth through sound overseas investments and fast-growing domestic properties is
expected to continue.
SBC COMMUNICATIONS, INC. SBC SBC's domestic growth, coupled with developing international investments, is
expected to contribute to good earnings and dividend growth.
U.S. WEST, INC. USW Geographic diversity and low population density in its market areas has led to a
reduced threat of competition. U.S. West offers an attractive dividend yield with
good earnings growth resulting from continued solid access line growth.
INDEPENDENTS
ALLTEL CORPORATION AT Operations include wireline and wireless properties, long-distance, directory
publishing and software. Non-telephone businesses and continued strong telephone and
wireless revenue growth are expected to contribute to future growth.
CENTURY TELEPHONE CTL Provides a wide range of telecommunications services including local exchange,
wireless, long-distance and internet access.
ENTERPRISES, INC. Revenues and income are expected to increase due to continued revenue and income
growth from its wireless and wireline operations.
CINCINNATI BELL, INC. CSN Principal businesses include wireline and wireless telecommunications services. We
anticipate earnings growth should be fueled by increased access lines and internet
operations.
LONG-DISTANCE
AT&T CORPORATION T As the world's largest long-distance communications network, earnings growth is
expected to continue.
MCI WORLDCOM, INC. WCOM We believe earnings are expected to grow as MCI capitalizes on its fastest growing
segments: data/internet, international and U.S. local phone services.
SPRINT CORPORATION FON The nation's third-largest inter-exchange carrier, also provides local exchange,
wireless and internet services. Future earnings growth will be fueled by revenue and
customer growth in all sectors.
WIRELESS
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COMPANY SYMBOL RESEARCH EVALUATION
US CELLULAR CORPORATION USM As the nation's eighth-largest wireless provider, we expect earnings growth should
continue as demand for cellular services continues.
TELECOMMUNICATIONS EQUIPMENT
ADC TELECOMMUNICATIONS, INC. ADCT ADC places a strong emphasis on manufacturing fiber-optic video transmission systems
used by both cable and telephone companies. International sales offer a significant
opportunity for new customer expansion.
DSP COMMUNICATIONS, INC. DSP As a developer of chip sets and products for wireless personal communications
applications, we anticipate growth to continue as digital wireless telephones gain
popularity around the world.
LUCENT TECHNOLOGIES, INC. LU The leading supplier of telecommunications infrastructures in the U.S. and
number-two globally, Lucent is well-positioned with European, U.S. and Asian
standards of digital wireless technology.
SYMBOL TECHNOLOGIES, INC. SBL Growth is expected as the company continues to capitalize on technology development
and expand its telecommunications distribution network.
TELLABS, INC. TLAB Growth is expected through world-wide product demand from telecommunications
companies upgrading wireless and wireline networks.
TELECOMMUNICATIONS NETWORKING
CAMBRIDGE TECHNOLOGY CATP Growth will be fueled by the development and deployment of client/server and
PARTNERS, INC. internet applications.
CISCO SYSTEMS, INC. CSCO As the world's leading supplier of high-performance, multimedia, multiprotocal and
internetworking solutions, it is well-positioned for future growth with strong
earnings attributable to increased unit sales of its products.
NETWORK APPLIANCE, INC. NTAP Designs, manufactures, markets and supports high performance network data storage
devices for data-intensive network devices.
INTERNATIONAL*
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* These issues are foreign corporations; any dividends will be subject to withholding taxes.
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COMPANY SYMBOL RESEARCH EVALUATION
ALCATEL ALA A world leader in providing equipment to the telecommunications, energy and
transportation industries.
BRITISH TELECOMMUNICATIONS BTY A leading provider of telecommunications services. Increased demand for services,
PLC global alliances and the internet should result in future growth.
CABLE & WIRELESS PLC CWP Serving more than 50 countries of five continents, earnings are expected to increase
as the company increases its global presence.
ECI TELECOMMUNICATIONS LTD. ECILF ECI has demonstrated strong revenue growth for 40 consecutive quarters and
longer-term earnings growth is expected as solid sales continue.
KPN NV KPN KPN has a fully digital telecommunications network throughout the Netherlands.
Growth will be derived from domestic properties and investments abroad.
NEWBRIDGE NETWORKS NN A world leader in designing, manufacturing, marketing and servicing networking
CORPORATION products for multimedia communications.
NOKIA CORPORATION NOKA The world's largest manufacturer of wireless phones, Nokia expects strong earning
growth as cellular systems throughout the world expand or build out their
infrastructures.
NORTHERN TELECOM LIMITED NT This leading telecommunications equipment supplier expects to grow from its product
and market diversification.
PORTUGAL TELECOM S.A. PT The company's earnings growth is expected to be driven by strong deployment in
wireline, wireless, internet and cable TV services.
TELE DANMARK A/S TLD Earnings growth is expected to increase through international telecommunications
service projects, and expansion of wireless and interactive capabilities of its
cable TV network.
TELECOM ITALIA S.P.A. TI As the sixth-largest telecommunications operator in the world, wireless operations
will continue to see expansion. Telecom Italia is positioned for strong earnings
growth as it capitalizes on steps taken to date, and continues to seek foreign
interests.
TELEFONAKTIEBOLAGET LM ERICY As an international leader in telecommunications products and electronic defense
ERICSSON* systems, strong earnings growth is expected from wireless telecommunications
products as wireless systems are deployed world-wide.
TELEFONICA S.A. TEF A diversified global telecommunications company. Telefonica has focused on
international expansion primarily in Latin America. Earnings growth may be fueled by
international investments.
</TABLE>
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DEFINING YOUR RISKS
Please keep in mind the following factors when considering this
investment. Your financial professional will be happy to answer any questions
you may have.
o The Portfolio is designed for investors who can assume the risks
associated with equity investments and may not be appropriate for
investors seeking capital preservation or high current income. It
consists solely of telecommunications stocks.
o There can be no assurance that the Portfolio will meet its objective.
o Federal legislation is changing pricing structures and increasing
competition.
o The value of your investment will fluctuate with the prices of the
underlying stocks. Stock prices can be volatile. International stocks
make up 33% of the Portfolio, which may be subject to special risks
including higher volatility, fluctuating currency exchange rates and
political developments. There can be no assurance that stock prices
will not decrease.
TAX REPORTING
The proceeds received when you sell this investment will reflect the
deduction of the deferred sales charge and, after the initial offering period,
the charge for organization costs.
In addition, the annual statement and the relevant tax reporting forms you
receive at year-end will be based on the amount paid to you, net of the
deferred sales charge and, after the initial offering period, the charge for
organization costs. Accordingly, you should not increase the tax basis in your
units by these charges.
Generally, dividends and any gains will be subject to tax each year.
Capital gains, if any, on assets held over a year will be taxed up to the
maximum federal tax rate of 20% for non-corporate taxpayers. However, on
rollovers of future Portfolios, if available, investors will defer recognition
of gains and losses on stocks that are transferred to the new Portfolio.
DEFINING YOUR COSTS
First-time investors pay an initial sales charge of about 1% when they
buy. In addition, all investors pay a deferred sales charge in seven monthly
installments of $2.50 per 1,000 units, deducted from the Portfolio's net asset
value in each year of the Portfolio's two-year life ($35.00 total).
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As a % Amount per
of Public 1,000 units
Offering Price
- -------------------------------------------------------------------------------
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge Year 1 1.75% $17.50
Deferred Sales Charge Year 2 1.75% $17.50
Maximum Sales Charge 4.50% $45.00
Estimated Annual Expenses 0.178% $ 1.76
(as a % of net assets)
Estimated Organization Costs $ 2.05
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If you sell your units before the final deferred sales charge installment
in either the first or second year, the remaining balance of your deferred
sales charge for that year will be deducted, along with the estimated costs of
selling Portfolio securities. If you roll over to a successor Portfolio, if
available, the initial sales charge will be waived. You will only pay the
deferred sales charge.
VOLUME PURCHASE DISCOUNTS
For larger purchases, the overall sales charges are reduced to put more of
your investment dollars to work for you.
AMOUNT TOTAL TWO-YEAR SALES CHARGE
PURCHASED AS A % OF PUBLIC OFFERING PRICE
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Less than $50,000 4.50%
$50,000 to $99,999 4.25%
$100,000 to $249,999 3.75%
$250,000 to $999,999 3.50%
$1,000,000 or more 2.75%
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CALL NOW!
You can get started with the Tele-Global Trust for about $250. Call your
financial professional for a free prospectus containing more complete
information, including sales charges, expenses and risks. Please read the
prospectus carefully before you invest or send money.
DEFINED ASSET FUNDS(sm)
Buy With Knowledge o Hold With Confidence
EQUITY INVESTOR FUNDS
OTHER CONCEPT SERIES
Health Care Trust (Pharmaceutical & Biotechnology Portfolio)
Premier American Portfolio
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SELECT SERIES
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(DJIA)
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(Financial Times Index)
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Portfolio
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Intrinsic Value Portfolio
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INDEX SERIES
S&P 500 Index Trust
S&P MidCap Index Trust
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
[Recycle LOGO] Printed on Recycled Paper
11387BR-1/99
(C)1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC
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