Defined Asset Funds [Registered]
Fundamental Research
2000 Series B
Tele-Global Trust
In Touch with Progress, Online for Growth
[logo] Merrill Lynch
[Symbol] Tele-Global Trust
More than a century ago, Samuel Morse gave us the ground-breaking telegraph and
Alexander Graham Bell created the telephone. From the fast-paced world of
business, to how our families keep in touch, our lives have been changed by
astounding advances in communications technology. Defined Asset Funds
[Registered] stays in touch with the future...
Tele-Global Trust
Why Telecommunications?
Favorable Regulatory Trends
U.S. legislation has opened a host of opportunities to telecommunications
firms, allowing them to cross their traditional service boundaries and offer
multi-service packages. Now, cable companies can connect phone calls, local
phone companies can enter the long-distance arena, and both local and
long-distance phone carriers can broadcast television programs.
Global Opportunities Abound
Although the Portfolio consists mainly of domestic stocks, 23% are from other
countries that seem poised for growth. The privatization of government-owned
telephone companies, which has had a favorable impact on the profitability of
some foreign telecommunications companies, is likely to continue.
Technologically Friendly
Telecommunications equipment manufacturers are expected to profit as consumers
place increasing demands on service providers, which in turn continue to retool
their own systems to meet rising demand.
Rigorously Screened
Our experienced Defined Asset Funds research analysts:
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- Identify telecommunications companies we believe have the potential to
grow over the next two years.
- Perform thorough financial analysis including the review of each company's
operating history, balance sheet and cash flow.
- Review the stocks for liquidity, market share and timeliness of purchase.
The Portfolio
The Tele-Global Trust seeks capital appreciation by investing in 28 leading
companies from the telecommunications industry.
The Portfolio will hold its stocks for about two years. At the end of that
time, you can choose to either redeem your investment or roll your proceeds
into the next Portfolio, if available, at a reduced sales charge.
Past Performance of Prior Tele-Global Trusts
Past performance is no guarantee of future results.
<TABLE>
S&P 500(++) NASDAQ(++)
Average Annual Composite Telecommunications
Series Period Total Return Index Index
<S> <C> <C> <C> <C>
Telecommunications Trust(*)(+) 1/22/91-12/22/95 10.61% 16.83% 20.41%
Tele-Global 1(+) 10/13/93-2/12/98 13.46 23.04 13.66
Tele-Global 2(+) 2/14/96-2/28/00 53.09 21.52 49.44
Tele-Global 3 2/6/98-3/10/00 77.53 18.18 86.97
Tele-Global 4 8/13/98-6/30/00 60.62 18.95 50.17
Tele-Global 5 1/25/99-6/30/00 47.91 13.60 36.71
</TABLE>
The chart above shows average annual total returns, which represent price
changes plus reinvestment (except as noted) of income and principal
distributions, divided by the initial public offering price, and reflect actual
Trust expenses and maximum sales charges and durations, which differ from the
current Trust. Index performance reflects no sales charges or expenses.
The S&P 500 Index is a capitalization-weighted index of 500 stocks selected for
market size, liquidity and industry group representation (industrials,
utilities, financials and transportation stocks). The Nasdaq Telecommunications
Index is a capitalization-weighted index of about 250 companies designed to
measure the performance of all Nasdaq stocks in the telecommunications sector,
including all types of telecommunications companies.
(*) Total returns represent price changes plus the addition of dividends and
principal distributions (not reinvested), divided by the initial public
offering price.
(+) Telecommunications Trust, Tele-Global 1 and Tele-Global 2 were outstanding
longer than other Tele-Global Funds and had a different sales charge
structure.
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(++) The S&P 500 Composite Index is a trademark of The McGraw-Hill
Companies, Inc. and has been licensed for use by Defined Asset Funds.
The Nasdaq Telecommunications Index is a trademark of the Nasdaq Stock
Market, Inc. The Portfolio is not sponsored, managed, sold or promoted
by standard & Poor's or Nasdaq.
(ss) These securities do not currently pay cash dividends.
(") The issuer is a foreign corporation; dividends, if any, may be subject
to withholding tax.
[A horizontal timeline illustrates the milestones in the development of
communications as follows:
1844
Samuel Morse sends his historic telegraph message, "What hath God wrought?"
1876
Alexander Graham Bell's first telephone call-"Mr. Watson, come here, I want
you."
1925
Bell Labs Research produces the first talking motion pictures.
1965
"Early Bird" is the world's first commercial communications satellite.
1966
Development of silicon chip makes computers smaller and much faster.
1972
FCC opens up domestic satellite transmission.
1990
Cellular phones grow in popularity.
1996
Landmark telecommunications legislation is passed.
1998
Lucent introduces 400-gigabit fiberoptic cable.
2000
Broadband comes of age.]
A Defined Portfolio
Company Symbol
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Telecommunications Equipment
ADC Telecommunications, Inc.(ss) ADCT
ADC Telecommunications derives most of its sales from broadband
connectivity and has a strong emphasis on manufacturing fiber
optic video transmission systems.
ADTRAN, Inc.(ss) ADTN
This company designs, develops, manufactures, markets and
services a broad range of high-speed digital transmission
products utilized by telephone companies and corporate end-users
to implement advanced digital data services over existing
telephone networks.
Advanced Fibre Communications, Inc.(ss) AFCI
Advanced Fibre Communications designs and manufactures
end-to-end multi-service narrowband and broadband access
solutions for telecommunications service providers in over 25
countries.
ANTEC Corporation(ss) ANTC
This company develops, manufactures and supplies optical and
radio frequency (RF) transmission equipment for the
construction, rebuilding and maintenance of broadband
communications systems.
Corning, Inc. GLW
This global technology-based company operates in three
broadly-based business segments: telecommunications, advanced
materials and information display. The telecommunications
segment accounts for 63% of revenues.
Dycom Industries, Inc.(ss) DY
One of North America's largest telecommunications and electrical
services companies, Dycom provides engineering, design,
construction, maintenance and facilities locating services to
the telecommunications, cable television and electric utility
industries.
Motorola, Inc. MOT
Motorola is a global leader in providing integrated
communications and embedded electronic solutions.
Polycom, Inc.(ss) PLCM
This company develops, manufactures and markets a full range of
high-quality, media-rich communications tools and network
solutions. Its broadband communications solutions enable
business users to realize the benefits of video, voice and data
over rapidly growing converged networks.
Powerwave Technologies, Inc.(ss) PWAV
Powerwave Technologies designs, manufactures and markets
ultra-linear RF power amplifiers for use in the wireless
communications market.
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<PAGE>
Scientific-Atlanta, Inc. SFA
This company's products connect information generators with
information users via broadband and satellite networks, and
include applications for converging cable, telephone and data
networks.
International ALA
Alcatel(")
Alcatel builds next generation networks, delivering integrated
end-to-end voice and data networking solutions to established
and new telecommunications carriers, as well as enterprises and
consumers worldwide.
France Telecom S.A.(") FTE
France Telecom is the principal provider of telecommunications
services in France and the world's fourth largest
telecommunications carrier.
Nokia Oyj(") NOK
This global wireless and wireline telecommunications company
pioneered the Nokia 9110 Communicator, an all-in-one mobile
phone that offers fax, e-mail and Internet capabilities.
Nortel Networks Corporation(") NT
One of the five largest telecommunications equipment makers in
the world, Nortel's Unified Networks Solutions span
mission-critical telephony and Internet Protocol-optimized
networks. Its main product lines are switching, enterprise,
wireless and broadband networks.
Telefonaktiebolaget LM Ericsson AB(") ERICY
Operating in over 140 countries, this company is an
international leader in telecommunications products, including
mobile communications.
Telefonica S.A.(ss)(") TEF
Telefonica is a diversified telecommunications and multimedia
group, providing a range of services in Spain and Latin America
including local and long-distance telephone service, integrated
business communications, wireless and Internet services,
high-speed data transmission and cable TV.
Vodafone AirTouch PLC (") VOD
The world's largest mobile telecommunications company, Vodafone
owns or has partnership interests in wireless properties in
Europe, the U.S., the Pacific Rim, Egypt, South Africa and Asia.
Telecommunications Services - Wireline/Wireless
ALLTEL Corporation AT
ALLTEL, a diversified independent telecommunications company,
provides wireline and wireless communications and information
services to customers in rural and suburban markets.
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<PAGE>
BellSouth Corporation BLS
This communications company offers wireline, wireless, cable and
digital TV and Internet services to more than 37 million
customers in 20 countries.
SBC Communications, Inc. SBC
One of the largest telecommunications companies in the U.S.,
this company's subsidiaries and affiliates provide wireline and
wireless telecommunications services and equipment, Internet
services, directory advertising, publishing and cable TV
services.
Sprint Corporation (Fon Group) FON
Sprint Corporation provides wireline telecommunications
operations (long-distance and local telephone, product
distribution and directory publishing) and development and
deployment of Sprint ION (Integrated On-Demand Network).
United States Cellular Corporation(ss) USM
This company provides wireless telephone service to over 2.6
million customers through 139 majority-owned and managed
cellular systems.
Verizon Communications VZ
Formed by the merger of Bell Atlantic and GTE, Verizon is one of
the world's leading providers of high-growth communications
services. It is the largest provider of wireline and wireless
communications in the U.S. with a global presence extending to
40 countries.
WorldCom,Inc.(ss) WCOM
This global communications company provides a broad range of
communications, outsourcing and managed network services to U.S.
and international corporations.
Internet Services
America Online, Inc.(ss) AOL
A premier online service company, AOL provides services such as
electronic mail, software, computing support and online classes.
Over the last several years the company has aggressively sought
new customers and formed strategic alliances.
Telecommunications/Software Services
Convergys Corporation(ss) CVG
This leading provider of outsourced information and customer
management solutions focuses on clients in the
telecommunications, cable, cable telephony, satellite
broadcasting, Internet services, utility, technology, financial
services, consumer product and health-care industries.
CSG Systems International, Inc.(ss) CSGS
One of the world's leading providers of customer care and
billing solutions for converging communications markets, CSG's
clients include cable TV, direct broadcast satellite, telephony
and online services.
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<PAGE>
Telecommunications Networking
Cisco Systems, Inc.(ss) CSCO
Cisco Systems is a world-wide leader in networking for the
Internet. Its products include routers, LAN and ATM switches,
dial-up access servers and network management software.
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QUANTITATIVE RESEARCH & INDEX
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FIXED INCOME
Corporate Funds
Government Funds
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<PAGE>
Municipal Funds
Defining Your Risks
Please keep in mind the following factors when considering this investment.
Your financial professional will be happy to answer any questions you may have.
- This Portfolio consists entirely of telecommunications stock, which can
involve special risks including increasing competition and capital needs,
rapid changes in technology and changing regulation. This Portfolio is
concentrated in foreign stocks, which also involve special risks.
- The value of your investment will fluctuate with the prices of the
underlying stocks. Foreign stocks will also fluctuate with changes in
currency exchange rates. Stock prices can be volatile and foreign stocks
may be subject to greater price volatility and political developments.
- An investment in this Portfolio may be considered speculative. This
Portfolio is designed for investors who can assume the risks associated
with equity investments, and generally is not appropriate for investors
seeking capital preservation or current income.
- There can be no assurance that this Portfolio will meet its objective.
Tax Efficiency
Your taxable income may include foreign withholding taxes. However, subject to
limitations, you may be able to credit these taxes against your U.S. federal
income taxes. 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%).
Generally, dividends and any gains will be subject to tax each year, whether or
not reinvested. However, on rollovers to future Portfolios, if available,
certain investors may defer recognition of capital gains and losses for federal
income tax purposes on stocks 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 in six monthly payments of about
$2.50 per 1,000 units, deducted from the Portfolio's net asset value in each
year of its two-year life ($30.00 total).
As a % of Public Amount Per
Offering Price 1,000 Units
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge Year 1 1.50% $15.00
Deferred Sales Charge Year 2 1.50% $15.00
Maximum Sales Charge 4.00% $40.00
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Annual Creation and Development Fee
(as a % of net assets) 0.250% $ 2.48
Estimated Annual Expenses
(as a % of net assets) 0.188% $ 1.86
Estimated Organization Costs $ 1.58
If you sell your units before the final deferred sales charge installment in
either the first or second year, the remaining balance of your 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 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.
Your Maximum Two-Year
If You Sales Charge (as a % of
Invest: your investment) Will Be:
Less than $50,000 4.00%
$50,000 to $99,999 3.75
$100, 000 to $249,999 3.25
$250,000 to $999,999 3.00
$1,000,000 or more 2.50
Call Today!
You can get started with $250. This Fund is eligible for purchase through
Unlimited Advantag[SM] accounts, in which Unlimited Advantage fees apply in
lieu of traditional sales charges. Call your financial professional to learn
how the Tele-Global Trust may help to meet your personal investment goals and
how it may be appropriate for your IRA account. You may request a free
prospectus containing more complete information, including sales charges,
expenses and risks. You may also download a prospectus from our Web site
address listed above. 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 their offer or sale is not permitted.
[logo] Printed on Recycled Paper 11387BR-8/00
[copyright] 2000 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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