Defined Asset Funds
Focus Series
Capital Appreciation
Fundamental Research
IRA Ideal!
Pacific Rim
Portfolio
Investing in the Potential of Asian Markets
[logo] Merrill Lynch
Merrill Lynch Research:
A Reputation for Excellence
With more than 500 equity research analysts globally, Merrill Lynch is a world
class research organization. Its Global Research & Economics Group provides
in-depth coverage of more than 4,000 companies in 53 countries worldwide.
The Focus Series
Like each Portfolio in the Focus Series, the Pacific Rim Portfolio employs a
research-driven "buy and hold" philosophy. Through a proprietary selection
process, Merrill Lynch seeks out attractive stocks for the Portfolio from within
promising Asian countries and industry sectors, and holds them for about two
years. At the end of that time, the selection process may be reapplied, and a
new Portfolio may be selected. At that time, you can either reinvest in the new
Portfolio, if available, exchange your investment for another Focus or Select
Series Portfolio, or redeem your investment.
Asian/Pacific Rim economies have seen their share of tumult, but behind the
negative headlines, we believe the potential exists for attractive investment.
Contrarian investors know that bad news can present special investment
opportunities. At Merrill Lynch, we believe such opportunities can be found
across the Asian/Pacific Rim region.
Defined Asset Funds, in conjunction with Merrill Lynch Research, is pleased to
offer you a convenient way to participate in the potential of Pacific Rim
markets with our new . . .
<PAGE>
Pacific Rim Portfolio
Why Asia?
Asian governments and businesses are beginning to acknowledge their fiscal and
monetary shortcomings of the recent past. The result is new economic policies
and more consolidated corporations. We believe that over the long-term, Pacific
Rim markets may show promising up-side potential for several reasons.
Company Balance Sheets Are Under Repair
Many Asian companies are deleveraging -- they're paying their debts and selling
off non-core assets. As they clean up their balance sheets, they may increase
their equity value.
Currencies Are Stabilizing And Are Potentially Undervalued
Money and credit creation is down, and the decline in spending has increased
savings. Deficits in certain Pacific Rim countries are already turning toward
surpluses.
As Liquidity Improves, Interest Rates May Fall
As regional economies deleverage and restructure, there is less borrowing from
banks, which helps to build the economies' liquidity. As liquidity increases and
corporate debt is paid down, interest rates could fall, creating an improved
credit environment.
Capital Markets May Be Upgraded
As the corporate sector deleverages, banks stabilize and earnings volatility
slows, capital markets in the region may be upgraded.
Foreign Direct Investment Is On the Rise
Many foreign companies are choosing to increase their profiles across the
region, which can increase economic growth and consumer confidence.
Savings Rates
High domestic savings rates may be the single most important factor in each
country's ability to turn around economically.
2
<PAGE>
The Portfolio
The Pacific Rim Portfolio highlights 34 stocks from nine Pacific Rim countries
that Merrill Lynch believes may benefit from some of these promising trends. The
stocks are selected by the Merrill Lynch Global Research & Economics Group for
their potential for growth over the two-year life of the Portfolio. Each stock
in the Portfolio is also analyzed for market capitalization and liquidity by the
Defined Asset Funds Research Group.
Portfolio Breakdown by Industry
Telecommunications 22%
Electronic Equipment 20%
Automobiles 10%
Money Center Banks 8%
Medical Drugs 6%
Brewery 5%
Retail/Diversified 5%
Office Automation & Equipment 4%
Steel 4%
Distribution/Wholesale 3%
Diversified Operations 3%
Electronic Component/Semiconductor 3%
Construction 2%
Electric-Integrated 2%
Multimedia 2%
Paper Products 1%
A Defined Portfolio
Company Symbol
Japan
Bank of Tokyo-Mitsubishi, Ltd. MBK
Through its global subsidiaries, the company offers commercial, investment and
trust banking products and services. It was formed through the merger of the
Bank of Tokyo and the Mitsubishi Bank on April 1, 1996.
Canon, Inc. CANNY
Canon makes color laser and high-speed copiers, midrange copiers, 35mm cameras
and video equipment, as well as computer peripherals, aligners for
3
<PAGE>
semiconductor chip production, broadcasting lenses and medical equipment.
DDI Corporation DDICF
DDI provides long distance telephone services and mobile communications
such as the Personal Handy-phone System (PHS) and cellular phone services.
Hitachi, Ltd. HIT
Hitachi builds communications and electronic equipment, heavy electronic and
industrial and consumer electronics, with subsidiaries in the chemical, wire and
cable, shipbuilding and aerospace industries.
Honda Motor Co., Ltd. HMC
The company develops, manufacturers, distributes and finances motorcycles,
automobiles and power products.
JUSCO Co., Ltd. JUSCY
JUSCO provides a variety of retail consumer products and services, including
clothing, food, household goods, electric appliances, furniture, cosmetics,
tobacco and firearms.
Kirin Brewery Company, Ltd. KNBWY
Kirin brews beer and produces soft drinks, food products, whiskey and
pharmaceuticals. The company has 15 breweries located throughout Japan. Its
"Kirin" brand beer is sold in more than 30 countries around the world.
Matsushita Electric Industrial Company, Ltd. MC
This company produces and markets video, audio, home systems, telecommunications
and industrial equipment under the brand names National, Panasonic, Technics,
Quasar, Victor and JVC.
NEC Corporation NIPNY
NEC manufactures and markets computers, telecommunications devices, electric
appliances, circuit boards, instruments and accessories for medical equipment
and aircraft, and serves as an information provider for computer communications.
Nippon Telegraph & Telephone Corporation NTT
NTT provides a variety of telecommunications services including telephone,
telegraph, leased circuits, data communication, terminal equipment sales, and
local and long-distance telephone services.
Softbank Corporation SFTBF
Wholesaler of PC software and publisher of PC-related materials. The company is
also engaged in the net-working and satellite broadcasting business.
4
<PAGE>
Sony Corporation SNE
Sony develops and manufactures a variety of consumer and industrial electronic
equipment and is active in the worldwide music and image-based software markets.
Suzuki Motor Corporation SZKMF
Manufacturers compact cars, motorcycles and related parts. The company makes
automobiles in Canada, India, Pakistan and Spain.
Yamanouchi Pharmaceutical Co., Ltd YNCHF
Yamanouchi makes and sells pharmaceuticals for both human and veterinary use,
and produces cosmetics and health foods through its subsidiaries.
Hong Kong
Asia Satellite Telecommunications Holdings, Ltd. SAT
Provides satellite transponder capacity through its subsidiaries in Asia.
China Telecom (Hong Kong), Ltd. CHL
Provides cellular telecommunications services in the People's Republic of China.
HSBC Holdings plc HBC
The holding company for the HSBC Group, an international banking and financial
services organization.
Hutchison Whampoa, Ltd. HUWHY
Has extensive interests in shipping, food processing and distribution,
retailing, manufacturing and real estate.
Indonesia
PT Indosat (Persero) Tbk(1) IIT
Provides domestic international telecommunications services.
Company Symbol
Taiwan
Asustek Computer, Inc.(2) ASUJF
Asustek manufactures and markets computer motherboards, PentiumII/Pentium Pro,
Pentium and 486-based motherboards.
China Steel Corporation(2) CEESF
Makes and sells various steel products.
5
<PAGE>
Taiwan Semiconductor Manufacturing Company, Ltd.(1) TSM
An affiliate of Philips Electronics N.V., Taiwan Semiconductor makes integrated
circuits based on its proprietary designs, offering a comprehensive set of
integrated-circuit fabrication processes.
South Korea
Korea Electric Power Corporation(1) KEP
KEPCO generates and supplies electric power to industrial and residential
customers. The majority of the company is owned by the Korean government.
Pohang Iron & Steel Company, Ltd.(1) PKX
Pohang manufactures hot and cold rolled steel products, heavy plate and other
steel products for construction and shipbuilding industries.
Samsung Electronics(2) SSEKF
Manufactures precision and other electronic parts including TV, audio, VCR and
PC parts, tuners, video head drums and precision motors.
SK Telecom Company, Ltd.(1) SKM
Provides mobile telecommunications and paging services in Korea and India. The
company offers subscribers digital cellular service and business features such
as wireless fax and data transmission.
Thailand
Advanced Info Service Public Company, Ltd. AVIVF
This company has been granted a 20-year concession, expiring in the year 2010,
to provide cellular phone services. Through its subsidiaries, it operates paging
services.
Siam Cement Public Company, Ltd. SCVPF
Siam Cement manufactures and distributes cement, construction materials,
ceramics, steel, automotive accessories and petrochemicals.
Australia
News Corporation, Ltd. NWS
This international media company's operations include the production and
distribution of motion pictures and television programming, television,
satellite and cable broadcasting and print publications.
6
<PAGE>
Telstra Corporation, Ltd. TLS
A full-service domestic and international telecommunications provider for
Australia.
New Zealand
Telecom Corporation of New Zealand, Ltd. NZT
This company provides telecommunication services throughout New Zealand,
offering local, national and international services to households and
businesses.
Singapore
Asia Pulp & Paper Company, Ltd.(1) PAP
Through its subsidiaries, this company produces a variety of printing and
writing paper, including coated and uncoated freesheets, cut-sized photocopier
paper and stationery and carbonless paper.
Datacraft Asia, Ltd. DKKSF
Designs, develops, markets and services data communications systems. The company
builds telecommunications and Internet infrastructure and corporate information
networks across Asia, New Zealand and the U.S.A.
Oversea-Chinese Banking Corporation, Ltd. OVCNF
This company provides banking and finance services, including retail and
wholesale banking, investment management, stockbroking, corporate finance,
venture capital, nominee and trustee services, property investment and
development.
(1) American Depositary Receipts.
(2) Global Depositary Receipts.
Defined Asset Funds
Buy With Knowledge o Hold With Confidence
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
7
<PAGE>
EQUITY INVESTOR FUNDS
Other Merrill Lynch
Research-Based Funds
1999 Year-Ahead Domestic
Portfolio
1999 Year-Ahead International
Portfolio
Biotechnology Portfolio
European Monetary Union
Portfolio
Financial Portfolio
Concept Series
Baby Boom Economy Portfolios
Health Care Trust
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Select Series
Select Ten Portfolio (DJIA)
Select United Kingdom Portfolio
(Financial Times Index)
Select Growth Portfolio
Select Large-Cap Growth
Portfolio
Select S&P Industrial Portfolio
Select Standard & Poor's
Industry Turnaround Portfolio
Select Standard & Poor's
Intrinsic Value Portfolio
Defined Technology Portfolio
Institutional Holdings Portfolio
Principled Values Portfolio
Index Series
S&P 500 Trust
S&P MidCap Trust
Defined Asset Funds - Our Philosophy
8
<PAGE>
At Defined Asset Funds, we are ever mindful that behind every investment dollar
lies something infinitely more important - your investment goal. This is why we
offer a full range of defined investments designed to meet a variety of
objectives.
We are committed to providing our investors with some of today's most attractive
equity and fixed-income investments, within the convenient "buy and hold"
structure of a unit investment trust. For income, for growth or for total
return, we believe that time in the market can be an effective strategy for
growing your portfolio.
At Defined Asset Funds, we set the foundation for all of our portfolios in this
way, because we too have an important goal in mind - yours.
How to Get Started!
You can start investing in the potential of the Pacific Rim markets today for
about $250 for regular or retirement accounts. Call your Merrill Lynch Financial
Consultant for a free prospectus containing more complete information including
sales charges, expenses and risks including those associated with investing in
international equities. Please read it carefully before you invest or send
money.
Defining Your Risks
The following are important facts to keep in mind when considering this
investment:
o The Portfolio is defined for investors who want to invest a portion of their
assets in Asian equities. The Portfolio is concentrated in Asian stocks,
particularly in Japanese issuers.
o The Portfolio may be considered speculative, and is appropriate for only
those investors who can assume the increased risks of higher price
volatility and currency fluctuations associated with investments in
international equities. The Portfolio may also be affected by foreign
government regulations, including currency freezes, and political
developments.
o The value of your investment will fluctuate with the prices of the
underlying stocks and with the value of the U.S. dollar relative to the
various foreign currencies represented in the Portfolio. In general, Asian
stocks have suffered significant declines in the last few years. There can
be no assurance that this trend will not continue.
o This investment is not appropriate for investors seeking capital
preservation or high current income.
9
<PAGE>
o There can be no guarantee that the Portfolio will meet its objective or that
Merrill Lynch research analysts will continue to recommend investment in the
Portfolio's stocks.
Tax Reporting
Your taxable income is expected to include foreign withholding taxes. However,
subject to limitations, you may be able to credit these taxes against your U.S.
federal income taxes. This Portfolio may not be appropriate for foreign
investors who would not be subject to U.S. withholding taxes if they directly
owned the securities held by the Portfolio.
Generally, dividends and any net capital gains will be subject to tax each year,
whether or not invested. By holding this Fund for more than one year, investors
may be eligible for favorable federal tax rates on net long-term capital gains
(currently no more than 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 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).
As a % of Public Amount Per
Offering Price 1,000 Units
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
(as a % of net assets) 0.394% $3.90
Estimated Organization Costs $1.60
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 costs of selling Portfolio
securities. If you roll over to a successor Portfolio, if
10
<PAGE>
available, the initial sales charge on that Portfolio will be waived. You will
only pay the deferred 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
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%
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 their offer or sale is not permitted.
[logo]Printed on Recycled Paper 32774BR-8/99
11
