Health Care Portfolio Series 32

Under normal circumstances, the Trust invests at least 80% of the value of its assets in stocks of companies that are classified as being in the health care sector by the Global Industry Classification Standard (“GICS”), or are believed by the Sponsor to have a significant level of revenues directly derived from health care related products and services. The Sponsor selects securities for the portfolio that it believes have the potential to achieve the Trust’s investment objective.

The Sponsor selects U.S.-traded securities that it believes are core holdings of a health care portfolio. To select the portfolio, the Sponsor follows a disciplined process that includes both quantitative and qualitative analysis. The Sponsor begins with the securities of companies that are classified as being in the health care sector by GICS, or are believed by the Sponsor to have a significant level of revenues directly derived from health care related products and services, and are either components of the Russell 3000 Index (“R3K”) or have market capitalizations larger than the smallest company within the R3K. The Sponsor then reduces the size of this universe by performing quantitative screening, which may be primarily based on, but not limited to, the following factors:

• Valuation. The Sponsor may screen for reasonably valued securities based on measures such as price-to-earnings, price-to-book, and price-to-cash flow.
• Growth. The Sponsor may screen for companies with a history of better than average growth of revenues and earnings.
• Profitability. The Sponsor may screen for companies with a history of consistent and high profitability as measured by return-on-assets, return-on-equity, gross margin and net margin.

The Sponsor then reduces the securities by performing qualitative analysis, which may be primarily based on, but not limited to, the following factors:

• Balance Sheet. The Sponsor favors companies which possess overall financial strength and exhibit balance sheet improvements relative to their peers and the marketplace.
• Industry Leadership. The Sponsor favors companies which possess a strong competitive position among their domestic and global peers.
• Valuation. The Sponsor favors stocks for which valuations appear to be attractive based on measures such as price-to-earnings, price-to-book, and price-to-cash flow.
• Growth. The Sponsor favors companies with a history of (and prospects for) better than average growth of revenues and earnings. 20 Investment Summary
• Profitability. The Sponsor favors companies with a history of (and prospects for) consistent and high profitability as measured by return-on-assets, return-on-equity, gross margin and net margin.

As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these:

• Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices, which could negatively impact the value of the Trust. Additionally, event such war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may adversely affect the economy, various markets and issuers. Recently, the outbreak of a novel and highly contagious form of coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant volatility in certain markets. Many governments and businesses have instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The potential impacts are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses. Any adverse event could materially and negatively impact the value and performance of Trust and the Trust’s ability to achieve its investment objectives. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
• The Trust is concentrated in the health care sector. As a result, the factors that impact the health care sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the health care sector include extensive competition, generic drug sales, the loss of patent protection, product liability litigation and increased government regulation.
• The Trust is concentrated in the securities of biotechnology companies. As a result, the factors that impact the biotechnology industry will likely have a greater effect on this Trust than on a more broadly diversified Trust. Biotechnology companies face intense competition and the potential for rapid product obsolescence. A biotechnology company’s valuation can be based largely on the potential or actual performance of a limited number of products and can accordingly be greatly affected if one of its products proves unsafe, ineffective or unprofitable. Biotechnology companies are subject to regulation by, and the restrictions of, the Food and Drug Administration, the Environmental Protection Agency, state and local governments, and foreign regulatory authorities. Biotechnology companies may be adversely affected by the loss or impairment of intellectual property rights or changes in government regulations.
• The Trust invests significantly in the securities of health care provider and services companies. As a result, the factors that impact the health care provider and services industry will likely have a greater effect on this Trust than on a more broadly diversified Trust. Health care provider and services companies may be affected by regulatory actions or policy changes by government agencies as well as requirements imposed by private entities such as insurance companies; cybersecurity breaches related to client information; demand for services; rising expenses, including malpractice insurance; incorporation of new technology and competition among health providers.
• The Trust invests significantly in the securities of pharmaceutical companies. As a result, the factors that impact the pharmaceuticals industry will likely have a greater effect on this Trust than on a more broadly diversified Trust. Companies in the pharmaceuticals industry can be significantly affected by government approval of products and services, government regulation, reimbursement rates and patent expirations and protection. Additionally, pharmaceutical companies can be adversely affected by intense competition, dependency on a limited number of products, obsolescence of products and product liability claims.
• The Trust invests significantly in the securities of health care equipment and supplier companies. As a result, the factors that impact the health care equipment and supplier industry will likely have a greater effect on this Trust than on a more broadly diversified Trust. Health care equipment and supplier companies may be affected by rising costs of medical products, devices and services; an increased emphasis on outpatient services; pricing pressure; extensive government regulations; restrictions on government reimbursement for medical expenses; industry innovation; changes in technologies and litigation.
• The Trust includes securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than large-capitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that share prices of the securities in the Trust will not decline and that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.
• The Trust may be susceptible to potential risks through breaches in cybersecurity. A breach in cybersecurity refers to both intentional and unintentional events that may cause the Trust to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Sponsor of the Trust to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cybersecurity breaches of the Trust’s third-party service providers, or issuers in which the Trust invests, can also subject the Trust to many of the same risks associated with direct cybersecurity breaches.
• The Trust is subject to risks arising from various operational factors and their service providers. Operational factors include, but not limited to, human error, processing and communication errors, errors of the Trust’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Additionally, the Trust may be subject to the risk that a service provider may not be willing or able to perform their duties as required or contemplated by their agreements with the Trust. Although the Trust seeks to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
• Inflation may lead to a decrease in the value of assets or income from investments.
• The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.

See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.