IRA Ideal!
Defined Asset Funds(SM)
Focus Series
The 1999 International Year-Ahead Portfolio
[ML Logo] Merrill Lynch
1999 is a new year... Why not consider a portfolio based on the 1999 stock
selections from the top-ranked research team? The 1999 Year-Ahead International
Portfolio can help you get the coming investment year into focus.
Make Your Resolution
To Think Ahead.
An investment strategy should never be static. As your life changes, so should
your portfolio. At Merrill Lynch, we believe in the importance of on-going
communication between you and your Financial Consultant. Will your investment
goals be the same next year? How about your tolerance for risk and your time
horizon? Your Financial Consultant will be happy to help you think ahead by
analyzing these important questions, and coming up with informed solutions.
About Defined Asset Funds--
Time in The Market
We believe that the disciplined strategy of buying and holding securities with a
long-term view can help in meeting our investors' needs. For income, growth or
total return, time in the market can be an effective strategy for growing your
portfolio. This philosophy is the cornerstone of Defined Asset Funds. If you are
also interested in U.S. investments, the Domestic Year-Ahead Portfolio is
available along with our entire family of Defined Portfolios.
The Portfolio
The Defined Asset Funds(SM) 1999 Year-Ahead International Portfolio seeks
capital appreciation by investing for approximately one year in a Portfolio of
international common stocks from eight different countries. The Portfolio was
selected for potential growth in 1999 by the Merrill Lynch Global Research and
Economics Group.
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The Strategy
The 1999 Year-Ahead International Portfolio offers a "buy and hold" strategy of
investing for approximately one year in a list of stocks selected by Merrill
Lynch Global Research. After one year, a new Portfolio is researched and
compiled based on a similar selection process. You can reinvest each year into a
successor Portfolio, if available, or you can redeem your investment. We believe
more consistent results are likely if the strategy is followed for at least
three to five years.
Why Invest Internationally?
In recent years, many American investors have begun investing globally to seek
diversification and additional investment opportunities outside the U.S. After
all, U.S. capital markets today represent less than 50% of total world
capitalization-- compare that to over 65% in 1970.
Defined Advantages
o Purchase Options. You can get started with about $250 and discounts
are available for volume purchases of $50,000 or more.
o Convenience. There's no need for multiple security purchases. This
Portfolio offers diversification, with only one purchase.
o Daily Liquidity. You can sell back your investment at any time at the
then-current net asset value, which may be more or less than your
original cost.
o No Sell Decisions. You're buying and holding for approximately one
year.
International Year-Ahead Portfolio-- 1999
Company Description
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United Kingdom/Continental Europe (59% of the Portfolio)
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France
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Cap Gemini SA Europe's largest information technology firm
providing a complete range of computer services
including systems integration, outsourcing,
software development and consulting. As the most
dominant information technology firm in the
European market, it is in a good strategic position
to take advantage of its size in this fragmented
market.
Germany
Volkswagen AG Volkswagen Group is the largest vehicle
manufacturer in Western Europe and in 1988
became the largest worldwide. Its four main
divisions are "Volkswagen," "Audi," "Seat" and
"Skoda." It has also acquired the "Bentley,"
"Rolls- Royce," "Bugatti" and "Lamborghini" brands
and has just reintroduced the "Beetle."
Italy
Telecom Italia SpA The incumbent telephone operator in Italy, it owns
55% of Telecom Italia Mobile, the largest cellular
telephone operator in Europe. Other subsidiaries
include telecom equipment manufacturer SIRTI and
computer supplier Finsiel. It is also a provider of
internet and satellite services in Italy.
Netherlands
Royal Dutch Petroleum A premier international oil company which derives
Company income from its 60% ownership of the Royal
Dutch/Shell Group of companies. Involved in
all phases of the petroleum industry from
exploration to final processing and delivery.
Spain
"Argentaria SA" One of the four largest commercial banks
in Spain offering retail, corporate and
international banking along with funds
management and insurance services. The company
is refocusing strongly on the retail market in
Spain from its past wholesale bias.
United Kingdom
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Vodafone Group PLC Britain's largest cellular telecommunications
company with a 35% market share and nearly 7.3
million subscribers including U.K.-based and
overseas customers.
Siebe PLC The world's largest producer of appliance and
climate control systems. It also manufactures
computer-based industrial automation equipment,
semiconductor surge protection devices, safety
shutdown systems and air compressors. Its
proposed merger with BTR, one of Britain's leading
industrial manufacturing companies, would create
the world's leader in the process controls and
automation industry.
Japan (25% of the Portfolio)
Sony Corporation A pre-eminent manufacturer of consumer
electronics and multimedia entertainment in the
world. Products include audio and video equipment,
televisions, displays, semiconductors, electronic
components, computers and computer peripherals
and telecommunication equipment. Entertainment
assets include "Columbia/Epic" record labels,
"Columbia/Tri Star Pictures" and "Playstation"
videogame console.
The Bank of Tokyo- Formed by the merger of the Bank of Tokyo and
Mitsubishi, Ltd. Mitsubishi Bank in April 1996, it is the world's
largest bank, with total assets close to US
$700 billion. It is also one of the strongest
banks in Japan in terms of asset quality,
profitability and reserve coverage of bad
debts.
Yamanouchi The third largest pharmaceutical company in Japan.
Pharmaceutical Its research and development facilities in Europe
Company, Ltd. have had nine out of the current 15 projects start
clinical trials in the past year with several
new drugs to be introduced in 1999 including
"Starsis," a drug for Type II diabetes,
applications for "Lipitor" (licensed from
Warner-Lambert) and "Bisphonal" for
osteoporosis.
China (16% of the Portfolio)
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China Telecom (Hong The cellular arm of the Chinese government,
Kong) Limited providing cellular communications services in the
Guangdong and Zhejiang provinces in the
People's Republic of China. With a market
share over 96%, it is the leading cellular
carrier in Asia.
HSBC Holdings PLC The holding company for the HSBC Group, one of
the best banks in the world and one of the
strongest in terms of regulatory capital. The
Group is an international banking and financial
services organization with operations in the
Asia-Pacific region, Europe, the Middle East and
the Americas.
Merrill Lynch
Research:
A Reputation for
Excellence
With 500 equity research analysts globally, Merrill Lynch has earned its
reputation as a world-class research organization. Its Global Research team
provides in-depth coverage of more than 4,000 companies in 53 countries
worldwide.
For each of the last four years, Merrill Lynch was awarded the top rank in
Institutional Investor's "All-America Research Team" survey of equity analysts
based on the total number of team analysts.
Defining Your Risks
Please keep in mind the following factors when considering this investment.
Your Merrill Lynch Financial Consultant will be happy to answer any questions
you may have.
o The Portfolio is designed for investors who can assume the risks
generally associated with international equity investments, including
higher price volatility, currency fluctuations and political
developments.
o The Portfolio is not appropriate for investors seeking preservation
of capital or high current income.
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o The value of your investment will fluctuate with the prices of the
underlying stocks. There can be no assurance that stock prices will
not decrease.
o The Portfolio should not be considered a complete equity investment
program, and may be considered speculative.
o There can be no assurance that the Portfolio will meet its objective.
o This Portfolio may be considered concentrated in the banking/financial
industry and in stocks of Japanese issuers.
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 the charge for organization costs, after
the initial offering period. Accordingly, you should not increase the tax basis
in your units by these charges.
Generally, dividends and any net capital 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 individuals. Please
consult your tax advisor concerning state and local taxation.
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 $17.50 per 1,000 units,
about 1.75%, deducted over the last ten months of the Portfolio's life.
As a % of Public Amount per
Offering Price 1,000 Units
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Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
Maximum Sales Charge 2.75% $27.50
Estimated Annual Expenses .207% $ 2.05
(as a % of net assets)
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Estimated Organization Costs $ 2.58
If you sell your units before termination, the remaining balance of your
deferred sales charge is deducted, along with the estimated costs of selling
Portfolio securities from the proceeds you receive. 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 Purchased Total Sales Charge as a % of
Public Offering Price
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Less than $50,000 2.75%
$50,000 to $99,999 2.50%
$100,000 to $249,999 2.00%
$250,000 to $999,999 1.75%
$1,000,000 or more 1.00%
Defined Asset Funds(SM)
Buy With Knowledge o Hold With Confidence
Equity Investor Funds
Other Merrill Lynch Research-Based Funds
1999 Year-Ahead Domestic Portfolio
Defined Technology Portfolio(SM)
Financial Portfolio
Health Care Portfolio
Select Series
Principled Values Portfolio(SM)
Select Ten Portfolio (DJIA)
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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
Concept Series
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Western Premier Portfolio
Index Series
S&P 500 Index Trust
S&P MidCap Index Trust
Fixed-Income Funds
Corporate Funds
Government Funds
Municipal Funds
The Time To Think Ahead Is Now!
Call your Merrill Lynch Financial Consultant for a free prospectus containing
more complete information, including all risks, sales charges and expenses and
the special considerations associated with international investing. Please read
it carefully before you invest or send money.
The information in this brochure is not complete and may be changed. We may not
sell the securities of the next Portfolio until the registration statement filed
with the Securities and Exchange Commission is effective. This brochure is not
an offer to sell these securities and is not soliciting an offer to buy these
securities in any state where the offer is not permitted.
[Logo] printed on Recycled paper 32718BR-12/98
(C)1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated, Member SIPC.
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