Defined Asset Funds [Registered Trademark]
Focus Series Capital Appreciation
2000 Merrill Lynch Research
IRA Ideal!
2000 Year-Ahead
Portfolio
[logo] Merrill Lynch
[logo]
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.
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...
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the 2000 Year-Ahead Portfolio
The Portfolio
The Defined Asset Funds [Registered Trademark] 2000 Year-Ahead Portfolio seeks
capital appreciation by investing in a Portfolio of U.S. common stocks. The
Portfolio was selected for potential growth in 2000 by the Merrill Lynch Global
Research and Economics Group.
The Strategy
The 2000 Year-Ahead Portfolio follows 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.
Is this Portfolio Right for You?
If your investment goal is capital appreciation without concern for current
income, the 2000 Year-Ahead Portfolio may be an appropriate choice. Although
this is a one-year portfolio, it is designed to be part of a longer-term
investment strategy. We believe more consistent results are likely if the
Strategy is followed for at least three to five years. If you are interested in
investing globally, the 2000 Year-Ahead International Portfolio is also
available. It follows a similar investment strategy, but holds stocks from
around the world.
Defined Advantages
Cost
You can get started with a minimum investment of about $250. Discounts are
available for volume purchases.
Convenience
There's no need for multiple security purchases. This Portfolio offers
diversification among various securities with just one price to track.
Liquidity
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.
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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 Symbol
Alcoa, Inc.* AA
Alcoa produces aluminum and alumina and is
involved in mining, refining, smelting, fabricating
and recycling. It's a world-wide supplier of a
variety of fabricated and finished products for
many markets including packaging, automotive,
aerospace and construction.
Cisco Systems, Inc. CSCO
Cisco supplies data networking products including
routers, LAN switches, frame relay/ATM and
remote access concentrators. Its clients include
utilities, corporations, universities, governments
and small- to medium-sized businesses worldwide.
Citigroup, Inc.* C
This diversified financial services holding
company provides services to consumer and
corporate customers worldwide. These services
include investment banking, retail brokerage,
corporate banking and cash management products.
The Coca-Cola Company* KO
This company manufactures, markets and
distributes soft drink concentrates and syrups, and
also distributes and markets juice and juice-drink
products. Its products are distributed under brand
names such as Coca-Cola, Minute Maid and Sprite
to retailers and wholesalers in the U.S. and
internationally.
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Cox Communications, Inc. - Class A COX
This full-service provider of telecommunications
products offers local and long-distance telephone
services, Internet access, digital video
programming and commercial voice/data services.
Cox also holds interests in Sprint PCS and various
programming networks.
El Paso Energy Corporation* EPG
El Paso owns an integrated coast-to-coast natural
gas pipeline system in the U.S. It has operations
in interstate natural gas transmission, gas
gathering and processing, international
infrastructure development and energy marketing.
Exxon Mobil Corporation* XOM
This company's world-wide operations include
coal and minerals, the exploration and production
of oil and gas and electric power generation.
Exxon Mobil also manufactures and markets fuels
and chemicals.
Guidant Corporation GDT
Guidant designs, develops, manufactures and
markets therapeutic medical devices for use in
cardiac rhythm management, vascular intervention
and cardiac and vascular surgery. Its products
include implantable pacemaker systems and
balloon dilation catheters.
Lowe's Companies, Inc.* LOW
Lowe's distributes building materials and supplies
through retail stores in the U.S. Its wide variety of
products include lumber, home decoration and
lights, kitchen, bath and laundry items, patio
accessories, heating, cooling and water systems.
Motorola, Inc.* MOT
This provider of integrated communication and
embedded electronic solutions offers software-
enhanced wireless telephones, two-way radios,
messaging and satellite communications products
and systems as well as networking and Internet-
access products.
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Oracle Corporation ORCL
A supplier of software for enterprise information
management, Oracle offers databases and
relational servers, application development,
decision support tools and enterprise business
applications.
The Procter & Gamble Company* PG
Procter & Gamble manufactures and markets
consumer products throughout the world. Its
products include Pampers diapers, Tide laundry
detergent, Crest toothpaste and Vicks cough/cold
products.
Solectron Corporation SLR
This provider of integrated solutions offers pre-
production planning and design, manufacturing,
distribution, and product service and support to
original electronics equipment manufacturers
worldwide.
Sprint Corporation (PCS Group) PCS
This company operates a 100% digital, 100%
personal cellular communication system
nationwide in the U.S. It currently serves the
U.S., Puerto Rico and the U.S. Virgin Islands.
Texas Instruments, Inc.* TXN
Texas Instruments provides semiconductor
products as well as designing and supplying
digital signal processing and analog technologies.
The company has manufacturing or sales
operations in several countries around the world.
(*) Only these stocks currently pay dividends.
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
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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.
[Logo Defined Asset Funds [Registered Trademark]]
Buy with Knowledge-Hold With Confidence
FIXED-INCOME FUNDS
Corporate funds
Government Funds
Municipal Funds
EQUITY INVESTOR FUNDS
Other Merrill Lynch
Research-Based Funds
2000 Year-Ahead International 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
Real Estate Income Fund
Tele-Global Trust
Utility Portfolio
Select Series
Select Ten Portfolio (DJIA)
United Kingdom Portfolio (Financial Times Index)
Defined Technology Portfolio(sm)
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Institutional Holdings Portfolio
Multinational Portfolio
Principled Values Portfolio(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 MidCap Trust
The Time to Think Ahead is Now!
Call your Merrill Lynch Financial Consultant for a free prospectus containing
more complete information, including sales charges, expenses and risks. 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 associated
with equity investments, and may not be appropriate for investors seeking
capital preservation or current income.
o There can be no assurance that the Portfolio will meet its objective, or
that stock prices will not decrease.
o The value of your investment will fluctuate with the prices of the
underlying stocks. Stock prices can be volatile.
Tax Reporting
When seeking capital appreciation, managing tax liability on capital gains can
be vital to your overall return. By holding this Fund for more than one year,
individuals may be eligible for favorable federal tax rates on net long-term
capital gains (currently no more than 20%) for individuals.
Generally, dividends and any 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. Please consult your tax
advisor concerning state and local taxation.
Defining Your Costs
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
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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
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Estimated Annual Expenses (as a % of 0.176% $1.74
net assets)
Estimated Organization Costs $1.05
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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 Documents
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Total Sales Charge as a
% of
Amount Purchased 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%
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[logo] Printed on Recycled Paper 32719BR-12/99
[Copyright] 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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