IRA Ideal!
DEFINED ASSET FUNDS[SM]
PREMIER
AMERICAN
PORTFOLIO
BLUE CHIP SERIES 6
[ML Logo] Merrill Lynch
PREMIER AMERICAN PORTFOLIO
[GRAPHICS]
AN OPPORTUNITY TO ACQUIRE A DIVERSIFIED PORTFOLIO OF SOME OF AMERICA'S PREMIER
COMPANIES
Now the Premier American Portfolio brings 33 of America's leading companies
together in one Portfolio, affording individual investors access to stocks of
companies that supply products and services America uses every day. With the
Premier American Portfolio, the relatively high stock prices of these
companies is not a barrier to ownership. What's more, by including this
Portfolio in your investments, you can be instantly diversified among 33 of
America's premier stocks.
Blue Chip Portfolio
We believe the Premier American Portfolio is a solid choice for the equity
portion of your investment portfolio. The Portfolio seeks total return
through capital appreciation and, to a lesser extent, dividend income. It
offers a diversified Portfolio of some of America's largest and most
established companies.
Buy with Knowledge o Hold with Confidence
Each company represented in the Portfolio was professionally selected for its
high quality and established earnings record. In August, 1998 each of these
stocks traded on the New York Stock Exchange, and each at a price of more than
$60 a share. The market capitalization of each company was at least $3.8
billion, and each has passed our rigorous screening process.
A Defined Strategy
The Premier American Portfolio offers access to an affordable variety of blue
chip stocks. Like other Defined Asset Funds, it follows a buy and hold
investment strategy of selecting stocks based on specific investment merits,
and then holds them for a set period of time, in this case, two years. At the
end of two years, the screening process is reapplied and a new Portfolio is
selected. You can choose to reinvest into another Portfolio, if available, or
redeem your investment.
[GRAPHIC BOX]
Company Symbol
MEDICAL/HEALTH CARE 23% of Portfolio
Bristol-Myers Squibb Company BMY
Bristol Myers Squibb is the number one drug company in the U.S. Pravachol
(cholesterol), taxol (cancer) and glucophage (diabetes) are key products.
Presently, there are 50 compounds in development.
Cardinal Health, Inc. CAH
One of the largest pharmaceutical distributors in the nation. Cardinal also
provides hospital pharmacy management, automated dispensing systems
manufacturing, pharmacy packaging, retail pharmacy franchising and clinical
information systems development.
Eli Lilly and Company LLY
Worldwide pharmaceutical company best known for Prozac, the top selling
antidepressant in the world. Evista, used to prevent osteoporosis, lower
cholesterol and address breast cancer, may be come Lily's best selling drug.
Approximately 16 compounds are now in clinical trials.
Johnson & Johnson JNJ
With $23 billion in sales, Johnson & Johnson is a worldwide leader in
pharmaceuticals, toiletries, first aid, hygiene, medical equipment, surgical
products and contraceptives. The company spends over $2 billion annually on
research and development.
Merck & Company, Inc. MRK
One of the world's largest pharmaceutical companies, Merck spends $1.9
billion annually on research and is a leader in treating cholesterol, high
blood pressure and HIV. Merck participates in 19 therapeutic categories
and has plans to expand to 24 by the year 2002.
Pfizer, Inc. PFE
A worldwide leader in pharmaceuticals, medical technology, consumer health-
care items and animal health goods. Pfizer has three established drugs with
over $1 billion in sales. The recently launched Viagra may become the best
selling drug ever.
Schering-Plough Corporation SGP
Schering-Plough is the worldwide leader in antihistamines. Claritin, with
over 50% of the U.S. market, has patent protection for several years. The
pipeline is strong with over 35 products either in early phase testing or
already filed.
Warner-Lambert Company WLA
Warner-Lambert is a worldwide leader in health-care and consumer products with
sales in excess of $8 billion. Lipitor (cholesterol) and Rezulin (diabetes)
are among its key products. Ten products are waiting market clearance or in
advanced clinical development.
INSURANCE 13% of Portfolio
American International Group, Inc. AIG
The nation's largest underwriter of commercial insurance conducts
property/casualty business in over 100 countries. One of the strongest and
most diversified financial services companies in the world with an outstanding
record of profitable growth. AIG recently announced plans to acquire Sun
America, a leader in the retirement savings market.
Aon Corporation AOC
This diversified insurance holdings company has businesses in insurance
brokerage, consulting, warranties and consumer insurance. As a global leader
in insurance brokerage, Aon has made a number of acquisitions throughout the
world as the industry consolidates.
Chubb Corporation CB
A major underwriter of property/casualty insurance. The majority of premiums
are written in commercial lines with specialties in directors' and officers'
liabilities coverage and products for the financial services sector. Personal
lines primarily consist of homeowners' insurance for wealthy individuals.
Above average premium growth in excess of the industry average and cost
savings efforts are likely to result in earnings growth.
Lincoln National Corporation LNC
One of the largest stockholder-owned life insurance companies in the U.S.
which provides annuities, life insurance, retirement savings plans,
life/health reinsurance, institutional asset management and mutual funds.
Lincoln National is also active in the asset management business through
Delaware Management Holdings.
[GRAPHICS BOX]
Company Symbol
CONSUMER PRODUCTS 10% Portfolio
Clorox Company CLX
A leading producer of home cleaning products with several major brands.
Other products include Combat insecticides, Kingsford and Matchlite
Charcoal, Hidden Valley Ranch salad dressings, Armor All products and Fresh
Step cat litter. Double-digit growth should continue due to the portfolio
of leading brands, new product development, international expansion and
tight cost control.
Colgate-Palmolive Company CL
The global leader in oral care and a leading producer of cleaners,
deodorants, shampoos, fabric softeners and detergents in a variety of
markets. Innovative new products, continued geographic expansion and tight
cost control are expected to produce strong earnings growth over the next
few years.
Procter & Gamble Company PG
One of the world's leading consumer product companies, Procter & Gamble
markets a broad range of laundry, cleaning, paper, beauty and health care,
food and beverage products. Key brands include Tide, Crest, Ivory, Dawn,
Downy, Comet, Head & Shoulders, Scope, Secret, Crisco, Pampers, Folger's,
Covergirl and many others. Its key strengths are dominant market shares
and geographic diversity, low cost base and strong customer relationships.
ELECTRONIC PRODUCTS/SERVICES 10% of Portfolio
Emerson Electric Company EMR
A leading global producer of electrical and electronics products and systems.
With an excellent global position for most products, Emerson's market strength
is supported by its many brand name products and vast distribution network.
General Electric Company GE
The fifth-largest U.S. corporation, GE's diverse businesses include
aircraft engines, TV network NBC, appliances, electrical and industrial
control systems, information services, lighting, medical services, power
and transportation systems and plastics. GE's Capital Services business is
one of the largest financial services companies in the U.S. An ongoing
focus on cost management and an expansion of service businesses bode well
for GE's earnings outlook.
Honeywell, Inc. HON
A world leader in automation and control technology. Its products, which
range from home automatic thermostats to high-tech valves and process
controllers, increase comfort, protect the environment, conserve energy and
enhance productivity and safety in homes, industry, aviation and space.
DIVERSIFIED OPERATIONS 8% of Portfolio
Berkshire Hathaway, Inc. (Class B) BRK/B
Warren Buffet's diversified holding company engaged in property/casualty
insurance and reinsurance as well as a range of diverse non-insurance
businesses. It has an excellent financial condition and exceptional capital
strength. Its buy and hold strategy produced a book value that has grown over
the past 33 years at a compound annual rate of 24.1%.
FINANCIAL SERVICES 8% of Portfolio
Fannie Mae FNM
This federally chartered, privately-owned corporation, organized as a U.S.
government agency, provides supplemental liquidity to the residential mortgage
market. Rather than functioning as a primary lender, Fannie Mae purchases,
sells and deals in mortgages in the secondary market. It also issues
mortgage-backed securities in exchange for pools of mortgages from lenders.
MBIA, INC. MBI
The world's leading financial guarantor also provides specialized financial
products and services for public and private sector organizations around the
globe. MBIA's primary business is insuring municipal bonds issued by
governmental units to finance essential public purposes. The acquisition of
CAPMAC has strengthened its structured finance market.
Wachovia Corporation WB
With dual headquarters in Atlanta, GA and Winston-Salem, NC, the 17th largest
bank in the country offers a full range of financial services. As a leading
issuer of credit cards, it is significantly expanding overall operations with
multiple acquisitions in Virginia. Recent expansion should boost revenue
growth going forward.
GRAPHICS BOX
Company Symbol
AEROSPACE/DEFENSE-EQUIPMENT 7% of Portfolio
Lockheed Martin Corporation LMT
The result of the 1995 merger of Lockheed and Martin Marietta, this company is
the world's largest defense contractor and a leading aerospace company. A
strong competitive position, a focus on reducing costs and a strong cash flow
is likely to drive future earnings growth.
UNITED TECHNOLOGIES CORPORATION UTX
This global company's principal products and support services are provided by
Pratt & Whitney, a leader in aircraft engines; Otis, the world's largest maker
of elevators; and Carrier, the world's largest manufacturer of air
conditioning/heating equipment.
FOOD/BEVERAGES 5% of Portfolio
Brown-Forman Corporation (Class B) BF/B
One of the largest U.S. companies in the wine and spirits business, Brown-
Forman is also a diversified producer and marketer of quality consumer
products. Well known beverage brands include Jack Daniel's and Bolla
wines. Products include Lenox china and giftware and Gorham silver,
crystal and china.
Coca-Cola Company KO
The world's largest soft drink company, Coke's products are sold in nearly
200 countries and are the leaders in most of those markets. Coke's strong
position in almost every world market has produced enviable sales and
earnings growth records, and there is no sign of let-up in the pace of new
markets being opened and expanded.
Wrigley (WM.) Jr. Company WWY
The world's leading producer of chewing gum, Wrigley's products are sold in
over 140 countries with 53% of revenues generated outside North America.
Wrigley has a very strong financial condition and a long record of consistent
sales and profit growth. Overseas expansion, more aggressive advertising and
new products being introduced to foreign markets should support continued
earnings growth.
RETAIL 4% of Portfolio
Wal-Mart Stores, Inc. WMT
The world's largest retailer, Wal-Mart is one of the strongest and fastest
growing retailers in the U.S. Its size and buying power enable the company to
get the lowest prices from suppliers, giving it a competitive edge that
supports continued growth.
OFFICE AUTOMATION & EQUIPMENT 4% of Portfolio
Xerox Corporation XRX
Xerox manufacturers a broad range of office equipment including copiers, laser
printers, publishing and duplication equipment. Eliminating insurance and
financial services businesses made it possible for Xerox to focus on growth
markets in its core document processing business. Strict cost controls and
reduced headcount should allow it to maintain its double-digit growth goals.
DATA PROCESSING/MANAGEMENT 3% of Portfolio
Automatic Data Processing, Inc. AUD
One of the largest independent computing services companies in the world.
Automatic Data Processing provides computerized transaction processing, data
communications, software and information services to virtually every industry.
BUILDING & CONSTRUCTION PRODUCTS 2% of Portfolio
Vulcan Materials Company VMC
The nation's foremost producer of construction aggregates is also a leading
chemicals manufacturer. Vulcan's aggregates are a core component in highways,
roads and bridges. Its chemical segment supplies chlorine, caustic soda and
other products.
OIL 2% of Portfolio
Exxon Corporation XON
One of the world's largest energy companies. Because Exxon is weighted more
towards exploration & production than most of its peers, crude prices have a
greater effect on earnings. Earnings should benefit from high quality
international oil and natural gas reserves, an extensive refining and
marketing system and a strong balance sheet.
TELECOMMUNICATIONS 1% of Portfolio
BellSouth Corporation BLS
Founded in 1983 as part of the AT&T divestiture, BellSouth is a leading
telecommunications provider in nine southeastern states. Other businesses
include advertising and publishing, international communications services and
domestic and international wireless services.
[GRAPHICS BOX]
Defined Advantages
o Diversification among 33 "Blue-Chip" stocks.
o A defined term of two years.
o A minimum investment of just $250.
o Daily liquidity (the price is based on then-current net asset
value).
o Option to reinvest quarterly distributions at a reduced sales
charge.
Is the Blue Chip Portfolio Right for You?
If you are saving for a long-term goal, such as a new home, a child's
education or retirement, this Portfolio may be a smart choice. It may not be
suitable for investors seeking current income. The Portfolio is designed for
investors who are willing and able to assume risks of equity investing. The
value of your investment will fluctuate with the prices of the stocks in the
Portfolio. There can be no assurance that any of the stocks included in the
Portfolio will appreciate or not depreciate in price during the two-year life
of the Portfolio. U.S. equity markets have recently been at historic highs,
and there can be no assurance that these price levels will continue.
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.
Dividends and any gains will be subject to tax each year, whether or not
reinvested. 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.
Defining Your Costs
Investors pay an initial sales charge of about 1% up front, and a deferred
sales charge of $17.50 per year, deducted in seven monthly installments of
$250 per 1,000 units.
As a % of Estimated Amount
Public Offering Price per 1,000 units
- -----------------------------------------------------------------------------
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
(per year) ---- -----
Maximum Sales Charge 4.50% $45.00
Estimated Annual Operating Expenses
(as a % of net assets) 0.160% $1.58
Estimated Organization Costs $1.60
- -----------------------------------------------------------------------------
If you sell your units before the final deferred sales charge installment in
either year, the remaining 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 1% initial charge
will be waived.
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 for Both Years
Purchased as a % of 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!
You can get started with the Premier American Portfolio with as little as $250
for regular or IRA accounts. Contact your financial professional for a free
prospectus containing more complete information, including all charges,
expenses and risks. Be sure to read it carefully before you invest.
Defined Asset Funds
Buy With Knowledge o Hold With Confidence
[logo]
EQUITY INVESTOR FUNDS
Other Concept Series
Premier World Portfolio
Tele-Global Trust
Utility Portfolio
Select Series
Select Ten Portfolio
(DJIA)
United Kingdom Portfolio
(Financial Times Index)
Select Growth Portfolio
Select S&P Industrial
Portfolio
Select S&P Industry
Turnaround Portfolio
Select Standard & Poor's
Intrinsic Value Portfolio
Index Series
S&P 500 Index Trust
S&P MidCap Index Trust
FIXED INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
15570BR-9/98
[Copyright logo] Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC.
