IRA Ideal!
Defined Asset Funds
Tele-
Global
Trust 3
In Touch
With Progress...
On-Line
for Growth
SalomonSmithBarney
A Member of TravelersGroup
IN TOUCH WITH THE FUTURE
A business woman e-mails her office. Her message is instantly beamed across
the ocean.
A concerned father checks on his child. He puts his car phone on speaker.
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 3
ON-LINE FOR GROWTH
From cellular service to video-conferencing to e-mail-communication methods are
increasing at a startling pace. Defined Asset Funds(sm) Tele-Global Trust 3
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
You know in advance how your investment is allocated among the Portfolio's
securities. You're investing in a known, preselected portfolio of companies -
a portfolio that should remain relatively unchanged for the life of the Trust.
And there is no need for multiple stock purchases. The Trust invests in many
stocks but makes it simple with only one price to track. Prices are published
each week 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:
identifying telecommunications companies which they believe have growth
potential over the next two years;
performance through financial analysis including the review of each company's
operating history, balance sheet, and cash flow to determine credit quality;
and reviewing the stocks for liquidity, market share, and timeliness of
purchase.
WHY TELECOMMUNICATIONS?
FAVORABLE REGULATORY TRENDS
Recent 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 is concentrated in domestic stocks, 29% of the Portfolio is
invested 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.
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.
Evolution of Telecommunications
A look at the historical points that have shaped the new world of
telecommunications.
1844
Samuel Morse sends his historic telegraph message, "What hath God Wrought?"
1876
Alexander Graham Bell's first telephone call--"Mr. Watson, come here, I want
you."
1925
Bell Labs Research produces the first talking motion pictures.
1965
"Early Bird" is the world's first commercial communications satellite.
1966
Development of silicon chip makes computers smaller and much faster
1972
FCC opens up domestic satellite transmission
1990
Cellular phones grow in popularity
1996
Landmark telecommunications legislation passed.
1998
Lucent introduces 400-gigabit fiberoptic cable that can transmit the
equivalent of 90,000 encyclopedia volumes per second!
A Defined Portfolio
Company Symbol Research Evaluation
BELL REGIONALS
Ameritech Corporation AIT Access lines and enhanced services,
coupled with international
investments, should result in earnings
and dividend growth. Electronic
commerce and security monitoring are
among its specialties.
Bell Atlantic Corporation BEL Because of its 1997 merger with NYNEX,
it has over 40 million access lines
and 5.8 million wireless customers
worldwide. Bell Atlantic expects to
derive long-term earnings and
dividends from continued expansion of
world-wide operations
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,
are expected to contribute to good
earnings and dividend growth.
U.S. West Communications Group USW Its 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 strong
earnings and dividend growth resulting
from continued solid access line
growth.
INDEPENDENTS
Aliant Communications, Inc. ALNT Diversified interests include local,
long-distance and wireless services as
well as communications equipment for
businesses. Good earnings growth from
access line and wireless customer
expansion is expected.
Alltel Corporation AT Operations include software, long-
distance and directory publishing.
Non-telephone businesses and continued
telephone and wireless revenue is
expected to contribute to future
growth.
Century Telephone Enterprises, Inc. CTL As the tenth-largest local exchange
and wireless company in the U.S.,
revenues and income are expected to
increase due to continued revenue and
income growth from its wireless and
telephone operations.
Cincinnati Bell, Inc. CSN As a world leader in customer care
billing and telemarketing solutions,
it should experience earnings growth,
fueled by its diversified businesses.
GTE Corporation GTE With an array of global services, GTE
expects to produce earnings growth
through continued volume and profit
margin improvement.
LONG DISTANCE
AT&T Corporation T As the world's largest long-distance
communications network, earnings
growth is expected to continue.
Frontier Corporation FRO Frontier's revenues have been growing
at an accelerated pace as a result of
acquisitions and internal development.
Continued growth is expected to result
from its acquisitions.
Sprint Corporation FON As the nation's third-largest inter-
exchange carrier, earnings are expected
to grow strongly due to good revenue
and customer growth.
WIRELESS
Airtouch Communications, Inc. ATI With businesses in the U.S. and abroad,
this wireless industry leader has
strong revenues and earnings growth.
United States Cellular Corporation USM As America's eighth-largest wireless
service provider, it has experienced
strong revenue growth, driven by a
rapidly expanding customer base.
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.
Andrew Corporation ANDW It serves the commercial, industrial,
and military markets. Andrew is
well-positioned for growth in world-
wide wireless services.
Aspect Telecommunications ASPT Because of a strong position in the
call center market, coupled with
improving gross margins, Aspect expects
revenue and earnings growth.
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.
Motorola, Inc. MOT This global leader in wireless
equipment manufacturing expects strong
growth from digital wireless
infrastructure deployment.
QUALCOMM, Inc. QCOM As a leader in digital wireless
technologies, earnings growth is
expected as wireless systems around the
globe deploy digital technologies.
Scientific-Atlanta, Inc. SFA Scientific Atlanta expects positive
earnings growth as the demand for
products intensifies by the convergence
of cable and telephone.
Tellabs, Inc. TLAB Growth is expected through world- wide
product demand from telecommunications
companies upgrading wireless and
wireline networks.
TELECOMMUNICATIONS/NETWORKING
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.
INTERNATIONAL (ADRs)
Cable and Wireless CWP Serving more than 50 countries on five
continents, earnings are expected to
increase as the company increases its
global presence.
ECI Telecommunications ECILF ECI has demonstrated strong revenue
growth for 40 consecutive quarters and
longer-term earnings growth is expected
as solid sales continue.
Telefonaktiebolaget ERICY As an international leader in
LM Ericsson telecommunications products and
electronic defense systems, strong
earnings growth is expected from
wireless technologies as foreign
companies build these systems and the
U.S. deploys wireless digital systems.
France Telecom FTE The world's fourth-largest
telecommunications carrier, its
earnings are expected to grow through
domestic and international expansion.
Nokia Corporation NOKA The world's second-largest manufacturer
of wireless phones, Nokia expects
strong earnings growth as cellular
systems throughout the world expand or
build out their infrastructures.
Northern Telecom NT This leading equipment supplier expects
to grow from its product and market
diversification.
Portugal Telecom PT The company's earnings growth is
expected to be driven by strong
development in wireline, wireless,
internet and cable TV services.
Tele Danmark TLD Ameritech will acquire 42% of this
company through government
privatization. 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 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.
Telefonica de Espana TEF Telefonica's financial performance has
been improving year-to-year, as the
company seeks growth opportunities
abroad. Earnings growth will be fueled
by international subsidiaries.
Vodafone Group VOD Vodafone is well-positioned for growth
as it continues to dominate the U.K.
wireless market. Its anticipated
earnings growth is expected to result
from wireless acquisitions and
investments.
Defining Your Advantages
Defined Asset Funds follows a "buy and hold" strategy. The Trust is monitored,
rather than managed, and each stock is reviewed and evaluated by our team of
analysts on a regular basis. A stock may be sold in the event of developments
that could make its retention detrimental to investors in the Portfolio.
You can reinvest your semi-annual distribution from the Trust at a reduced
sales charge. By reinvesting your income, you not only increase your holdings
but gain the important benefits of compounding.
Units may be sold at any time at a price based on their then-current market
value, which may be more or less than their original cost.
Generally, dividends and any realized gains will be subject to tax each year.
By holding this two-year Portfolio until the end, you can benefit from
favorable tax treatment on any capital gains. Gains on assets held for more
than 18 months are now taxed at the maximum federal tax rate of 20% for
individuals.
Defining Your Risks
The following are important factors to keep in mind when considering this
investment for your portfolio. Please read them carefully. Your financial
professional will be happy to answer any questions you may have.
The Portfolio is designed for investors willing and able to assume the risks
generally associated with equity investments, and consists solely of
telecommunications stocks. It may not be appropriate for those seeking capital
preservation or high current income.
There can be no assurance that the Portfolio will meet its objective.
Federal legislation is changing pricing structures and increasing competition.
The value of your investment will fluctuate with the prices of the underlying
stocks. Equity markets have been at historically high levels, and no
assurance can be given that these levels will continue. There can be no
assurance that dividend rates will be maintained or 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 the charge for organizational expenses. In
addition, the annual statement and the relevant tax reporting forms you
receive at year end will reflect the amount paid to you, net of the deferred
sales charge and the charge for organizational expenses. Accordingly, you
should not increase your basis in your units by the deferred sales charge and
the charge for organizational expenses.
Defining Your Cost
Low Initial Sales Charge/
Reduced Charge for Rollovers
First-time investors pay an initial sales charge of approximately 1% when they
buy. 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.
As a % of Initial Amount per
Public Offering 1,000 Units
Price
______________________________________________________________________________
Initial Sales Charge 1.00% $10.00
Annual Deferred Sales Charge 1.75% $17.50
(per year x 2 years)
============================
Maximum Sales Charge 4.50% $45.00
Estimated Annual Operating Expenses
(as a % of net assets) .317% $3.14
______________________________________________________________________________
If you sell your investment before the final deferred sales charge installment
in either the first or second year, the remaining deferred sales charges for
that year will be deducted, along with the estimated cost of selling Portfolio
stocks. If you roll over into a successor Portfolio, if available, the initial
charge of 1% is waived. You only pay the deferred charge and operating
expenses.
Volume Purchase Discounts
For larger purchases, the cumulative sales charges are reduced to put more of
your investment dollars to work for you.
Total Sales Charge
Amount as a % of the Public
Purchased Offering Price
______________________________________________________________________________
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%
______________________________________________________________________________
Select Now!
You can get started with the Tele-Global Trust 3 with as little as $250. Call
your financial professional for a free prospectus containing more complete
information, including all charges and expenses. Please read the prospectus
carefully before investing.
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Information contained herein is subject to amendment. A registration statement
relating to the stocks of the next Portfolio has been filed with the Securities
and Exchange Commission. The stocks of that Portfolio may not be sold nor may
offers to buy be accepted prior to the time the 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 stocks in
any state in which such an offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state.
It is likely that the portfolio of the next series will differ from that of the
series described in this brochure.
Smith Barney Inc.
Member SIPC
