Defined Asset Funds(R)
Focus Series
2000
Capital Appreciation
Merrill Lynch Research
IRA Ideal!
2000
Year-Ahead
International
Portfolio
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Merrill Lynch Research:
A Reputation for Excellence
With 575 equity research analysts globally, Merrill Lynch has earned its
reputation as a world-class research organization. Our Global Research team
provides in-depth coverage of more than 3,700 companies in 53 countries
worldwide.
For each of the last five years, Merrill Lynch has been awarded the top rank in
Institutional Investor's "All-America Research Team" survey of equity analysts,
based on the total number of team analysts.
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 ongoing
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.
The Year 2000 o It's a time of excitement and reflection. As you make your
resolutions for the new year and prepare for opportunities in the new
millennium, it's also an excellent time to re-examine your portfolio.
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At Merrill Lynch, we know that planning ahead is an important part of working
toward your investment goals. This is why we are pleased to offer a portfolio
based on the year 2000 stock selections from our top-ranked research team...
the 2000 Year-Ahead International Portfolio
The Portfolio
The Defined Asset Funds(R) 2000 YearAhead International Portfolio seeks capital
appreciation by investing in a Portfolio of international common stocks from
nine different countries. The Portfolio is selected by the Merrill Lynch Global
Research and Economics Group for potential growth in 2000.
The Strategy
The 2000 Year-Ahead International Portfolio relies on a "buy and hold" strategy
of investing for approximately one year. After one year, we expect that a new
Portfolio will be researched and compiled based on a similar selection process.
You can roll your proceeds over 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 US. After
all, U.S. capital markets today represent around 50% of total world
capitalization -- compare that to over 65% in 1970. If you are interested in
investing nationally, the 2000 Year-Ahead (Domestic) Portfolio is also
available. It follows a similar investment strategy.
Defined Advantages
o Cost
You can get started with a minimum investment of about $250. Discounts are
available for volume purchases.
o Convenience
There's no need for multiple security purchases. This Portfolio offers
diversification among various securities with just one price to track.
o Liquidity
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You can redeem your investment at any time at the then-current net asset value,
which may be more or less than your original cost.
* Buy and Hold
You are buying and holding, for about one year, a Portfolio of stocks selected
by Merrill Lynch Global Research.
A DEFINED PORTFOLIO
Company
Japan 26%
Kyocera Corporation
This company manufactures electronic equipment and components worldwide,
including telecommunications, information and optical equipment, ceramic
products, semiconductor parts, chips and connectors.
Nippon Telegraph & Telephone Corporation
Providing a variety of telecommunication services, this company also offers
local and long-distance telephone services within Japan.
SONY Corporation
SONY develops and manufactures consumer and industrial electronics, including
audio and video equipment, televisions, displays, semiconductors, electronic
components, computers and telecommunications equipment.
China 16%
HSBC Holdings PLC*
This holding company for the HSBC Group provides international banking and
financial services, including retail and corporate banking, trade, trusteeship,
securities, custody, capital markets, treasury, private and investment banking
and insurance.
Hutchison Whampoa Limited
A diversified holding company, Hutchison Whampoa Limited's diversified
operations include real estate, retail and manufacturing, telecommunications,
media, energy, finance and investments.
Spain 9%
Banco Santander Central Hispano, SA
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Along with its subsidiary, Banco Espanol de Credito SA, this company offers
commercial banking services. Through other subsidiaries, it serves Latin
American customers with credit, leasing, factoring, brokerage services and
mutual funds.
Company 9%
Switzerland
Mettler-Toledo International, Inc.+
Manufacturing and marketing weighing instruments to customers worldwide,
Mettler-Toledo's products are used in laboratory, industrial and food retailing
applications.
Australia 8%
The News Corporation Limited
An international media company, The News Corporation's operations include
the production and distribution of motion pictures and television programming.
It also broadcasts television, satellite and cable programming and publishes
newspapers, magazines and books.
Finland 8%
Nokia Corporation
Nokia is a global wireless and wireline telecommunications company. It
pioneered the Nokia 9110 Communicator, an all-in-one mobile phone that
offers fax, e-mail and Internet capabilities.
Germany 8%
Deutsche Telekom AG
Deutsche Telekom owns, operates and leases public telecommunications
networks and offers network applications services. Providing local and
long-distance telephone services as well as integrated voice and data digital
services, the company also maintains a large cable television network.
Ireland 8%
CRH PLC
Through its subsidiaries, U.K.-based CRH manufactures cement, concrete
products, aggregates, roofing, insulation and other building materials in 12
countries, including Ireland, the U.S., Spain, Germany and the Netherlands.
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United Kingdom 8%
BP Amoco PLC
This oil and petrochemicals company, with operations in more than 70
countries, explores for and produces oil and natural gas, refines, markets, and
supplies petroleum products; and manufactures and markets chemicals.
* This holding company is based in the United Kingdom, but the stock is
traded in both Hong Kong and the United Kingdom.
+ This stock currently pays no dividend.
Defined Asset Funds -- Our Philosophy
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.
Defined Asset Funds(R)
Buy With Knowledge o Hold With Confidence
FIXED-INCOME FUNDS
Corporate Funds
Government Funds
Municipal Funds
EQUITY INVESTOR FUNDS
Other Merrill Lynch Research-Based Funds
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2000 Year-Ahead (Domestic) Portfolio
Biotechnology Portfolio
Pacific Rim Portfolio
Concept Series
Baby Boom Economy Portfolios [SM]
Energy Portfolio
Financial Services Portfolio
Health Care Trust
Internet Portfolio
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Select Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Defined Technology Portfolios [SM]
Institutional Holdings Portfolio
Multinational Portfolio
Principled Values Portfolios [SM]
Select Growth Portfolio
Select Large-Cap Growth Portfolio
Select S&P Industrial Portfolio
Standard & Poor's Industry Turnaround Portfolio
Standard & Poor's Intrinsic Value Portfolio
Index Series
S&P 500 Trust
S&P MidCapTrust
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.
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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 current income.
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 telecommunications
equipment/services 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. However, on rollovers to future portfolios, if
available, investors will defer recognition of gains and losses for federal tax
purposes on stocks that are transferred to the new Portfolio. 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
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You will pay an initial sales charge of about 1% the first time you buy. In
addition, you'll pay a deferred sales charge of $17.50 per 1,000 units, about
1.75%.
As a % of Public Amount Per
Offering Price 1,000 Units
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
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Maximum Sales Charge 2.75% $27.50
Estimated Annual Expenses
(as a % of net assets) 0.235% $2.33
Estimated Organization Costs $2.67
If you sell your units before the termination date, the remaining balance of
your deferred sales charge will be 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 on that
Portfolio 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.
Total Sales Charge
Amount as a % of
Purchased Public Offering Price
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%
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32718BR-12/99
(C)1999 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
Defined Asset Funds is a registered service mark of Merrill Lynch & Co., Inc.
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