BNY Brazil, Russia, India and China (Bric) Portfolio Series 2

The Trust seeks to invest, as of the Trust’s deposit date, in each of the securities included in the BNY BRIC Index. The Index is comprised of American Depositary Receipts (“ADRs”) selected, based on liquidity, from a universe of all listed depositary receipts of companies from Brazil, Russia, India and China currently trading on U.S. exchanges. The companies in the universe are selected through a proprietary methodology developed by The Bank of New York (“BNY”). The ADRs in the Trust are denominated in U.S. dollars and designed for use in the U.S. securities markets. The Index is a subset of The Bank of New York ADR Index^SM (“BNY ADR Index”) which is an index that tracks all depositing receipts, New York shares and global registered shares that trade on the New York Stock Exchange (“NYSE”), the American Stock Exchange (“AMEX”) and the Nasdaq Stock Market (“NASDAQ”). The Trust’s portfolio will NOT be adjusted to reflect changes to the BNY BRIC Index and accordingly, the performance of the trust will NOT correspond to the performance of the BNY BRIC Index.

As with all investments, you can lose money by investing in the Trust. 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.
• Share prices or distributions of the securities in the Trust may decline during the life of the Trust. This may result in a reduction in the value of your units.
• The performance of the Trust will NOT correspond with the performance of the Index. This is due primarily because the Trust’s portfolio will not be modified to reflect changes in the Index and the Trust is subject to sales charges and expenses.
• The Trust includes securities issued by small-capitalization and mid-capitalization companies. These stocks customarily involve more risk than large-capitalization or more seasoned stocks. 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.
• The Trust will invest in ADRs. The Trust’s investment in ADRs presents additional risk. ADRs are issued by a bank or trust company to evidence ownership of underlying securities issued by foreign corporations. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
• The Trust will invest in the emerging markets of Brazil, Russia, India and China. Investing in emerging markets entails the risk that news and events unique to a country or region will affect those markets and their issuers. Countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets. These markets are generally more volatile than countries with more mature economies. See “Investment Risks” in Part A of the prospectus for more specific information about the risks of investing in the securities of companies located in Brazil, Russia, India and China.
• The Trust invests in preferred securities. Preferred securities are typically subordinate to bonds and other debt instruments in a company’s capital structure in terms of priority to corporate income and therefore will be subject to greater credit risk then those debt instruments.
• The Trust includes securities issued by companies in the energy sector. Companies in the energy sector are subject to volatile fluctuations in price and supply of energy fuels, and can be impacted by international politics and conflicts, including the war in Iraq and hostilities in the Middle East, terrorist attacks, the success of exploration projects, reduced demand as a result of increases in energy efficiency and energy conservation, natural disasters, clean-up and litigation costs associated with environmental damage and extensive regulation.
• The financial condition of an issuer may worsen or its credit ratings may drop, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period.
• Inflation may decrease the value of money. 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 continue to buy, the same securities even though the security’s outlook, rating, market value or yield may have changed.