Renewable & Alternative Energy Portfolio Series 14

The Trust consists of a portfolio of 35 domestic and foreign securities of companies, which the Sponsor believes have a focus in at least one of the many categories that comprise the renewable and alternative energy business. The categories include, but are not limited to, solar power, wind power, biomass, hydrogen, fuel cell, nuclear, geothermal and hydroelectric. The Sponsor selects securities for the Trust from companies involved in the renewable and alternative energy business that it believes have the potential to achieve the Trust’s investment objective.

The Sponsor selects global companies that it believes are core holdings of a diversified renewable and alternative energy portfolio. To select the portfolio the Sponsor begins by identifying a universe of approximately 100 companies that it believes have a significant focus (based on revenues and/or earnings) in the renewable and alternative energy business. The Sponsor then identifies 35 companies that are diversified across the many categories and countries of origin that comprise the renewable and alternative energy business for inclusion in the portfolio through a qualitative analysis, which may be primarily based on, but not limited to, the following factors:

• Industry Leadership: The Sponsor favors companies that possess a strong competitive position among their domestic and global peers.
• Growth: The Sponsor favors companies with a history of (and prospects for) better than average growth of sales and earnings (where applicable).

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. 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.
• Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. Starting in December 2007, economic activity declined across all sectors of the economy, and the United States experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Standard & Poor’s Rating Services recently lowered its long-term sovereign credit rating on the United States to “AA+” from “AAA,” which could lead to increased interest rates and volatility. Extraordinary steps have been taken by the governments of several leading countries to combat the economic crisis; however, the impact of these measures is not yet fully known and cannot be predicted.
• Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee 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 invests in American Depositary Receipts (“ADRs”) and foreign securities listed on a foreign exchange. The Trust’s investment in foreign securities and 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 includes securities issued by companies headquartered or incorporated in countries considered to be emerging markets. The performance of the securities included in the Trust may be dependant, in part, on the growth or decline of emerging market countries. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk. In addition, the economies of emerging market countries may be extremely volatile and subject to increased risks.
• The Trust includes securities whose value is dependent on currency exchange rates. The U.S. dollar value of these securities will vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.
• The Trust includes securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more 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.
• The Trust includes securities issued by companies in the renewable and alternative energy business. Companies involved in the renewable and alternative energy business can be significantly affected by the following factors: obsolescence of existing technology, short product cycles, legislation resulting in more strict government regulations and enforcement policies, fluctuations in energy prices and supply and demand of alternative energy fuels, energy conservation, the success of exploration projects, the supply of and demand for oil and gas, world events and economic conditions. In addition, shares in the companies involved in this business have been significantly more volatile than shares of companies operating in other more established businesses and the securities included in the Trust may be subject to sharp price declines. This line of business is relatively nascent and under-researched in comparison to more established and mature businesses, and should therefore be regarded as having greater investment risk.
• The Trust includes securities issued by companies in the industrials sector. Companies in the industrials sector are affected by a number of factors including the general state of the economy, intense competition, domestic and international politics, excess capacity and spending trends.
• The Trust includes securities from the utilities sector. Adverse developments in this sector may significantly affect the value of your units. Companies involved in the utilities sector must contend with environmental considerations, taxes, government regulation, price and supply fluctuations, competition and energy conservation.
• 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.
• Inflation may lead to a decrease in the value of assets or income from investments.