Financials Portfolio Series 1

Under normal circumstances, the Trust will invest at least 80% of the value of its assets in common stocks issued by companies in the financial sector, as classified by Standard & Poor’s Global Industry Classification Standard. The Trust is concentrated in the financial sector and includes, but is not limited to, securities in the following industries: capital markets, commercial banks, thrifts and mortgage finance, consumer finance, diversified financial services, insurance and real estate. The Trust will not have a major emphasis on the real estate industry, but may include real estate stocks that exhibit compelling characteristics. The Sponsor selects stocks for the portfolio that it believes have the potential to achieve the Trust’s investment objective.

See “Investment Policies” in Part B of the prospectus for additional information.

The Sponsor selects U.S.-traded common stocks that it believes are core holdings of a portfolio concentrated in the financial sector. To select the portfolio, the Sponsor follows a disciplined process which includes both quantitative and qualitative analysis. The Trust may invest in common stocks of U.S. and foreign companies that have small-, mid- and large-capitalizations. The Sponsor begins with the approximately 690 stocks of companies that are classified as being in the financials sector and are members of the Russell 3000 Index. The Sponsor then reduces that group of stocks to approximately 40-50 by following a disciplined process based on, but not limited to, the following factors:

• Valuation. The Sponsor may screen for reasonably valued stocks based on measures such as price to earnings and price to book.

• 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.

• Financial Statements. The Sponsor favors companies which possess overall financial strength and exhibit financial statement strength 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.

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. In addition, Standard & Poor’s Rating Services lowered its long-term sovereign credit rating on the United States to “AA+” from “AAA.” Effects of the economic crisis can still be felt in many countries around the world and may have an impact on the securities held by the Trust.

• The Trust is concentrated in the financial sector. As a result, the factors that impact the financial sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Some of the risks associated with the financial sector are listed below. 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. Financial sector companies are especially subject to the adverse effects of economic recession, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business. Negative developments initially relating to the subprime mortgage market and subsequently spreading to other parts of the economy, have adversely affected credit and capital markets worldwide and significantly impacted financial sector companies.

• The Trust may invest in REITs. REITs may concentrate their investments in specific geographic areas or in specific property types, such as, hotels, shopping malls, residential complexes and office buildings. The value of the REITs and other real estate securities and the ability of such securities to distribute income may be adversely affected by several factors, including: rising interest rates; changes in the global and local economic climate and real estate conditions; perceptions of prospective tenants of the safety, convenience and attractiveness of the properties; the ability of the owner to provide adequate management, maintenance and insurance; increased competition from new properties; the impact of present or future environmental legislation and compliance with environmental laws; changes in real estate taxes and other operating expenses; adverse changes in governmental rules and fiscal policies; adverse changes in zoning laws; declines in the value of real estate; the downturn in the subprime mortgage lending market and the real estate markets in the United States; and other factors beyond the control of the issuer of the security.

• The Trust invests in U.S.-listed foreign securities. The Trust’s investment in foreign securities presents additional risk. 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 invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of 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 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.

• 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.