IRA
Ideal!
Defined Assets Funds[SM]
PREMIER
WORLD
PORTFOLIO
SERIES 2
INROADS TO
INTERNATIONAL
INVESTING
[ML logo] Merril Lynch
PREMIER WORLD PORTFOLIO
"Blue Chip" Investing in International Stocks
A decade ago, the majority of the world's stock market capitalization
could be found among U.S. based companies. And there was a time when
investors looked to the U.S. markets for their "blue chip" equity needs. But
now, as we approach the 21st century, we are part of a global economy with
international investment opportunities.
What has spurred this international growth? Demographics are changing
worldwide. Industrialization of many third-world countries is leading to a
growing middle class, creating a rising demand for consumer goods and the need
to develop infrastructure for communications and transportation.
Privatization is becoming far more common in countries that once relied on
state-owned industries. Through this expansion, 60% of the world's stock
market capitalization can now be found in companies outside of the U.S.
A Defined, Diversified Portfolio
Like every Defined Asset Fund, the Premier World Portfolio lets you know
exactly what stocks you'll own up front and the Portfolio will remain
relatively fixed over its two year life. The Portfolio is well diversified
both by country and industry sector.
[GRAPH]
Diversification by Industry Sector
Financial Services/Insurance/Banking 24%
Integrated Oil 13%
Pharmaceuticals 13%
Telecommunications 12%
Automotive 10%
Food/Beverage 8%
Consumer Products 5%
Transportation 5%
Retail 4%
Building Materials 3%
Chemicals 2%
Diversified Operations 1%
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<CAPTION>
Country/Company Description Reasons
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FRANCE Currency: French Franc 23% of Portfolio
Axa The largest European insurance group and The company may benefit from the global
second largest insurance company in the world. consolidation of the insurance industry and
Acquired a 91% stake in Compagnie UAP, favorable demographics associated with its life
France's largest insurance company in 1997. In insurance, savings and asset management products.
addition to its core insurance and reinsurance Earnings growth is projected to be above average in
businesses, the company also engages in relation to peers.
securities trading, real estate and other
financial services activities.
Carrefour SA A global operator of hypermarkets with over 100 Expansion plans call for another 34 hypermarkets
stores in France and 200 stores throughout to open this year, expanding its system into
Europe, Latin America and Asia. These large Singapore and Poland.
retail stores sell food, clothing, appliances,
household products, auto parts and hardware
under one roof.
Compagnie de Saint Gobain A world leader in engineered materials with Stronger earnings may result from a more
operations in 42 countries. The company has profitable and stable business mix as well as
restructured its portfolio to focus on market acquisitions and expansion into emerging markets.
leadership in its core businesses including
industrial ceramics, flat glass and insulation.
Elf Aquitaine SA France's largest company conducts oil and gas Management improved past earnings through cost
exploration in 29 countries while producing in 15 cutting while future efforts will concentrate on oil
countries. Other activities include pipeline and gas exploration. Major offshore holdings it
interests, chemicals, pharmaceuticals and beauty Western Africa have the potential to double its
products. current reserves over the next few years.
Pinault-Printemps-Redoute This diversified global retailer operates The rapid growth in sales and operating profits has
SA supermarkets, department and home been the result of both internal growth and
appliance/furniture stores as well as the largest acquisitions and expansion into new markets.
French mail-order business. Strong earnings growth is expected to continue.
LaFarge SA One of the world's foremost producers of With a recovery in construction activity beginning
building materials with operations in 45 in Europe, Lafarge has posted strong gains in sales
countries. Leading products include cement, and profits which is projected to continue.
concrete and aggregates, gypsum and specialty
products.
L'Oreal L'Oreal is a world leader in cosmetics. Its L'Oreal has a very strong financial condition and
growth has been driven by expansion into Asia, good sales and earnings growth. Volume growth is
Latin America and Eastern Europe, stronger projected to outpace industry.
markets in the U.S. and in Western Europe, as
well as new product development.
Total SA Integrated oil and gas company with operations This production profile is one of the best of the
in more than 100 countries. The company major oil companies and can offset sharply lower
conducts exploration and production activities oil prices and lead to rising earnings growth.
in 25 countries.
SWITZERLAND Currency: Swiss Franc 17% of Portfolio
Nestle SA Nestle is the world's largest food company and a The company has built a very large portfolio of
world leader in coffee and mineral water. Its truly global brands and its rapid rate of new
major operating groups include prepared foods, product launches may result in strong future
beverages, milk and dietetic, pharmaceuticals earnings growth.
and the chocolate/confectionery businesses.
Novartis Created by the 1996 merger of Sandoz and Ciba- Sixteen new drugs are expected to be launched by
Geigy, Novartis is the third largest the year 2001.
pharmaceutical company in the world. They
spend over $2 billion annually on research.
UBS AG Formed by the merger of the Union Bank of Earnings should benefit from the substantial cost
Switzerland and Swiss Bank Corp. completed in savings expected as part of the consolidation
June 1998. One of the largest institutional asset process.
managers in the world with over $1 trillion in
assets under management as well as a global
leader in private and investment banking.
Zurich Allied AG A July '98 merger with Zurich Insurance and the Zurich is a global leader in commercial insurance
financial service business of B.A.T. Industries and one of the world's largest asset management
formed Zurich Financial Services Group. firms. Above average earnings growth is projected
Former Zurich Insurance shareholders own 57% with consolidation providing the potential for
of the combined business through Zurich Allied. further earnings enhancement.
UNITED KINGDOM Currency: British Pound 15% of Portfolio
Barclays PLC Barclays offers a full range of services in the We believe there will be a strong performance in
U.K. through approximately 2,000 branches. the personal banking business unit and a share
Also maintains retail-banking and repurchase program may bolster earnings per share
corporate/wholesale banking in over 70 growth.
countries.
British Airways PLC One of the world's largest airlines operating in Earnings growth could continue over the next
82 countries. Its global reach is expanding due several years due to reorganization cost savings,
to alliances with other airlines such as American. labor productivity out of a 1997 strike and further
outsourcing.
British Petroleum Company One of the world's largest integrated oil Future earnings growth may come from the
PLC companies markets products in over 50 countries. combination of increased upstream production and
Also one of the five largest companies in Europe. more-efficient downstream operations through its
partnership with Mobil in Europe.
Cable & Wireless PLC One of the world's leading international Earnings could grow significantly due to the
telecommunications companies, with operations purchase of MCI's Internet operations and
in over 50 countries on five continents. The bulk increasing global presence.
of revenues and income are generated in the U.K.
and Hong Kong through HK Telecom.
Peninsular and Oriental One of the world's leading ship owners. Its fleet Deconglomeration and reorganization should lead
Steam Navigation Company includes Princess and P&O Cruises, ferries, to both improved financial performance and
container ships, bulk carriers and related port earnings growth.
and travel management businesses.
SmithKline Beecham PLC SmithKline Beecham PLC is the tenth largest SmithKline has 36 drugs in the pipeline.
pharmaceutical company in the world. $1.4
billion is spent annually on research.
Zeneca Group PLC A leading pharmaceutical manufacturer, Zeneca The pipeline includes 87 development projects
is the world's second largest producer of cancer including 26 new chemical entities. Strong
drugs and is also strong in the area of earnings growth is expected over the next several
cardiovascular treatments. years.
GERMANY Currency: Deutch Mark 14% of Portfolio
Bayerische Motoren Werke A world leader in the luxury car market, BMW Future growth should be driven by its strong
(BMW) AG also produces motorcycles, aircraft engines and market position, increased sales of recently
owns the Rover Group, manufacturer of cars and introduced models and the continued development
utility vehicles. of innovative new car and motorcycle models.
Deutsche Bank AG The largest bank in Germany and one of the three A recent reorganization including a large
largest banking groups in the world. Offers a restructuring charge and plans to significantly
full range of commercial and investment banking reduce personnel could bolster future earnings. It
services through over 2,400 offices in 50 may also benefit from the global consolidation of
countries. the financial services sector.
Dresdner Bank AG The second largest bank in Germany, fourth Well-capitalized with very good asset quality. If
largest in Europe and the 11th largest in the strong increases in operating profits continue, they
world with over 1,500 offices in 70 countries. will result in above average growth of earnings per
Dresdner is a universal bank and is also a share.
leading mortgage bank in Germany.
Henkel KGaA Henkel is one of Germany's most internationally With several new acquisitions, the company is
active corporations with over 330 companies projected to generate significant annual earnings
operating in 60 countries. Businesses include growth over the next two years.
chemical products, adhesives, cosmetics and
toiletries, detergent, household cleaners and
others.
Siemens AG Manufacturers a wide range of industrial and Over the next two years, Siemens could see even
consumer products worldwide including higher earnings growth resulting from restructuring
locomotives, traffic control systems and steps taken in 1998 to realign its businesses.
automotive electronics.
Volkswagen AG One of the world's leading car and light truck A number of new ventures and acquisitions well
manufacturers with a growing world market position the company for further growth.
share currently at 10%.
NETHERLANDS Currency: Dutch Gilder 12% of Portfolio
ABN AMRO Holding, N.V. The largest bank in the Netherlands, one of the ABN is well-capitalized with a good quality,
ten largest banks in Europe and among the Top- geographically-diversified loan portfolio. May also
20 in the world. This universal bank has over benefit from consolidation in the global banking
1,000 domestic braches and over 700 offices in industry.
69 countries including a major presence in the
U.S.
Aegon N.V. The second largest Dutch insurance company and The company has strong capital and conservative
one of the ten largest stockholder-owned operating leverage, good asset quality and a history
insurance companies in the world. Significant of relatively strong and consistent profits.
operations in the U.S. due to its 1997
acquisition of the Providian Corp.
Royal Dutch Petroleum As the world's largest publicly owned integrated Increased global demand for oil and natural gas,
Company oil company, the Group also has a significant recent OPEC production reductions, rising
presence in petrochemicals, coal and metals. company production, dominance in deepwater Gulf
of Mexico exploration, and massive cash reserves,
should propel its profitability.
Unilever N.V. One of the world's largest producers of branded The company is restructuring to refocus on its core
and packaged consumer products, Unilever consumer product business lines and is projected to
operates in more than 90 countries. Its diverse see very strong annual earnings growth.
products include foods and beverages, personal
and household products.
JAPAN Currency: Japanese Yen 6% of Portfolio
Honda Motor Company, Ltd. Honda is one of the world's major builders of The company's strong market position reflects its
passenger cars and the world's largest maker of leadership in product engineering, and cost control
motorcycles. as well as the popularity of core models.
Takeda Chemical Industries Takeda is one of Japan's larger pharmaceutical It has an attractive joint venture with Abbott
manufacturers. Laboratories called TAP. Nine new drugs are
expected to be launched by 2002.
CANADA Currency: Canadian Dollar 5% of Portfolio
Canadian Pacific Limited(*) One of Canada's largest companies which owns A major restructuring including selling its more
North America's sixth largest railroad. It also cyclical business and concentrating on
owns steamships and container services, explores transportation, natural resources and hotels have
and produces oil and natural gas, mines coal and enhanced earnings and dividend growth.
operates Canada's largest hotel chain.
Northern Telecom Limited(*) Northern Telecom is a leading global Its product and market diversification is projected
telecommunications equipment supplier to to provide compound annual growth of 20% over
wireline and wireless telecommunications the long term.
companies, cable television operators, businesses
and government agencies.
FINLAND Currency: U.S. Dollar 3% of Portfolio
Nokia Oyj(*) An international telecommunications company We anticipate very strong earnings growth over the
and the world's second largest manufacturer of next several years, as cellular systems through the
wireless phones with sales in 120 countries. world expand or build out their infrastructure.
ITALY Currency: U.S. Dollar 3% of Portfolio
Telecom Italia SpA(*) Provides a wide range of telecommunications Its wireless operations will continue to see
services in Italy and abroad. It has formed joint explosive growth. We anticipate Telecom Italia
ventures with Siemens and IBM. should sustain outstanding earnings growth over
the next few years.
BELGIUM Currency: Belgian Franc 1% of Portfolio
Delhaize "LeLion" SA A leading Belgian food retailer operating The company's store system has been growing
supermarket chains around the world as well as rapidly through acquisitions as well as new store
drugstores, discount stores and health & beauty development. Strong earnings growth is expected
shops. to continue.
AUSTRALIA Currency: U.S. Dollar 1% of Portfolio
National Australia Bank The largest bank in Australia and the 61st largest A diverse earnings stream and exceptional
Limited(*) in the world. It is also involved in commercial operating efficiency has permitted the company to
banking in the U.S., the U.K., Ireland and New historically post an above average return on equity.
Zealand. A recently announced global restructuring charge
in conjunction with a plan to reduce personnel by
9% may enhance future earnings potential.
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(*) American Depositary Receipts (ADR) in U.S. Dollars.
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LOGO
Your Inroad to International Investing
For investors, there are a number of ways to tap into the growth of a global
economy. The opportunities are out there, but there are also challenges that
face most international investors. For example, it can be important to
research the issues that move international markets -- like the impact of
economic trends, political developments and currency fluctuations. And to
reduce risk, effective diversification among countries and industries is
critical.
To meet these needs, Defined Asset Funds[SM] created the Premier World
Portfolio. With a minimum investment of about $250, you can own 37 leading
international "blue chip" companies from 11 different countries outside the
U.S.
Quality Companies
"International blue chips" are the stocks of very large and well known high
grade companies outside the U.S. with a good record of earnings and dividend
payments. Defined Asset Funds' experienced research team explored the world's
markets to find these large, established companies who are leaders in their
industries. Companies that offer attractive growth potential, credit quality
and at least 10 years of continuous dividend payments. Each of the stocks
selected for the Portfolio trades on a major foreign exchange and has a market
capitalization of over $4 billion in U.S. dollars.
Dedicated Research
At Defined Asset Funds, our philosophy is to buy quality stocks and hold them
in a fixed Portfolio for a stated period of time. With the Premier World
Portfolio the period is two years. Our team of research analysts and buyers
will closely monitor the stocks in the Portfolio. While it is our objective
to retain this Portfolio over the term of the trust, we can sell a stock under
certain adverse circumstances.
Defining Your Risks
The following are important facts to keep in mind when considering this
investment:
o The Portfolio is designed for investors willing and able to assume
the risks generally associated with international equity investing,
including higher price volatility and fluctuating currency rates.
It may not be appropriate for investors seeking capital
preservation or high current income.
o The Portfolio should not be considered a complete investment
program and may be considered speculative.
o The value of your investment will fluctuate with the prices of the
underlying stocks and currency exchange rates.
o There can be no guarantee that the currency exchange rates of any
of the stocks in the Portfolio will appreciate (or not depreciate)
in price during any particular time period, or over the two year
life of the Portfolio.
Tax Reporting
The proceeds received when you sell this investment will reflect the deduction
of the deferred sales charge and, after the primary offering period, 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, net of the deferred sales charge and the charge for
organizational expenses. Accordingly, you should not increase the tax basis
in your units by these sales charges and expenses.
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%.
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 of seven monthly payments
of $2.50 per 1,000 units, deducted from the Portfolio's net asset value each
year of the Portfolio's two year life ($35.00 total).
Estimated
Amount
Per 1,000 Units
- ---------------------------------------------------------------------------
Initial Sales Charge
(1% per $1,000 of Initial Price) $10.00
Deferred Sales Charge $35.00
($17.50 per year x 2 years) =================
Maximum Sales Charge $45.00
Estimated Annual Expenses
(as a % of net assets) 0.547% $5.42
- ---------------------------------------------------------------------------
If you sell your investments before the final deferred sales charge
installment in either the first or second year, he remaining deferred sales
charges 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 of 1% will be waived. You will only pay
the deferred charge and operating expenses.
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 Sales charge as a % of
Purchased Public 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%
Don't Delay
Contact your financial professional for a free prospectus containing more
complete information, including all charges and expenses, and the special
risks of international investing including currency risk on the Equity
Investor Fund-Premier World Portfolio 2. 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
Premier American Portfolio
Real Estate Income Fund 2
Tele-Global Trust 4
Utility Portfolio
Select Series
Select Ten Portfolio
(DJIA)
Select Growth Portfolio
Select S&P Industrial
Portfolio
Select S&P Intrinsic Value
Portfolio
Select S&P Industry
Turnaround Portfolio
United Kingdom Portfolio
(Financial Times Index)
Index Series
S&P 500 Index Trust 2
S&P MidCap Index Trust
Other Defined Asset Funds
Corporate Income Funds
Government Securities
Income Fund
Municipal Investment
Trusts
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[Copyright logo] 1998 Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Member SIPC.