Preferred Securities Portfolio Series 11

The sponsor has selected preferred stocks and/or trust preferred securities believed to have the best potential for high current income. The sponsor believes that an investment in a portfolio of preferred stocks and/or trust preferred securities offers investors an opportunity to receive many of the income flow advantages of bonds. The Trust is carefully diversified across the preferred market, with close attention paid to:

• dividend yield
• credit quality
• call protection
• diversification
• liquidity

As with all investments, you can lose money by investing in the Trust. The Trust also might not perform as well as you expect. Stock 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.

The value of your units will generally fall if interest rates, in general, rise. Typically, securities with longer periods before maturity are more sensitive to interest rate changes.

An issuer may be unwilling or unable to make principal payments and/or to declare dividends in the future, may call a security before its stated maturity or may reduce the level of dividends declared. This may result in a reduction in the value of your units.

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 initial offering period.

The Trust will receive early returns of principal if securities held by the Trust are called or sold before they mature. If this happens your income will decline and you may not be able to reinvest the money you receive at as high a yield or as long a maturity.

The sponsor does not actively manage the portfolio. The value of your investment may fall over time. 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.

The Trust invests in preferred stocks and Trust preferred securities. Preferred securities are typically  subordinated 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 risk than those debt instruments. See “Investment Risks” for additional information.

Certain of the preferred securities held by the Trust may be rated as investment grade by only one rating agency. As a result, such split-rated securities may have more speculative characteristics and are more subject to a greater risk of default than securities rated as investment grade by both Moody’s and Standard & Poor’s.

The Trust may invest in bonds that are rated below investment grade and are considered to be “junk” securities. Below investment grade obligations are considered to be speculative and are subject to greater market and credit risks, and accordingly, the risk of nonpayment or default is higher than investment grade securities. In addition, such securities may be more sensitive to interest rate changes and more likely to receive early returns of principal.

The Trust may invest in bonds that are rated as investment grade by only one rating agency. As a result, such split-rated bonds may have more speculative characteristics and are more subject to a greater risk of default than securities rated as investment grade by both Moody’s and Standard & Poor’s.

The Trust includes securities issued by companies in the financial sector. Companies in the financial sector include banks, insurance companies and investment firms. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments.

Inflation may lead to a decrease in the value of assets or income from investments.