Quality High Dividend Portfolio Series 4

Under normal circumstances, the trust will invest at least 80% of the value of its assets in quality, dividend-paying equity securities. The trust will invest in quality equity securities, which are companies that exhibit an attractive blend of quality, valuation and price appreciation characteristics. When assessing quality, the trust evaluates companies by looking for positive and improving profitability, earnings that are cash generative, declining leverage and improving liquidity. The trust seeks to provide dividend income that is greater than its starting universe, the Russell 3000® Index. The sponsor believes that companies that distribute significant dividends on a consistent basis generally demonstrate strong financial strength and positive performance relative to their peers. There can be no assurance that the selected securities will continue to pay dividends or that the trust will achieve its investment objective.

The trust invests in domestically-traded companies, which may include U.S. and non-U.S. companies. The trust may invest in securities of companies with small-, mid- and large market capitalization and may invest in real estate investment trusts.

As of the date of deposit, this trust will hold a significant amount of its assets in dividend-paying securities of U.S. companies of mid- and large capitalizations and REITs.

The sponsor selects domestically-traded equities which it believes are core holdings of a diversified dividend-paying portfolio. To select the portfolio, the sponsor follows a disciplined process which includes both quantitative screening and qualitative analysis. The sponsor begins with the companies currently in the Russell 3000® Index with at least $1 billion in current market cap and an indicated yield greater than the average of the Russell 3000® Index. From this initial universe of approximately 700 companies, the sponsor identifies companies for inclusion in the portfolio through a qualitative analysis, which may be primarily based on, but not limited to, the following factors:

• Cash-flow Adequacy. The Sponsor favors companies with recent earnings, operating cash-flow, and free cashflow significantly higher than the dividends paid.
• Balance Sheet. The Sponsor favors companies that possess overall financial strength and exhibit balance sheet improvements relative to their peers and the marketplace.
• Valuation. The Sponsor favors companies whose valuations appear to be attractive based on measures such as price-to-earnings, price-to-book and price-to-cash flow.
• 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) above average growth of dividends, sales and earnings.

For the final step, the Sponsor weights the selected securities such that the portfolio has no more than approximately 20% of its net assets (as of the date of deposit) in any one given Global Industry Classification Standard (GICS) sector, while no sector has less than approximately 5%. Additionally, the real estate sector will have a maximum weighting of 10%. Please note that due to the fluctuating nature of security prices, the weighting of a sector in the Trust portfolio may change after the date of deposit.

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, events such as 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. An outbreak of a novel form of coronavirus disease (“COVID-19”) was first detected in December 2019 and rapidly spread around the globe leading the World Health Organization to declare the COVID-19 outbreak a pandemic in March 2020 and resulting in major disruptions to economies and markets around the world. The complete economic impacts of COVID-19 are not yet fully known. The COVID-19 pandemic, or any future public health crisis, is impossible to predict and could result in adverse market conditions which may negatively impact the performance of the 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.
• 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 invests in dividend-paying securities. The Trust’s investment in dividend-paying securities could cause the Trust to underperform similar funds that invest without consideration of a company’s track record of paying dividends. Securities of companies with a history of paying dividends may not participate in a broad market advance to the same degree as most other securities, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. There is no guarantee that the issuers of the securities held by the Trust will declare dividends in the future or that, if declared, they will remain at their current levels or increase over time.
• The trust invests 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; the cost of complying with the Americans with Disabilities Act; 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. Additionally, current negative economic impacts caused by COVID-19 have resulted in a number of businesses and individuals struggling to pay their rents, which has created cash flow difficulties for many landlords. Furthermore, demand for leased commercial space has weakened. REITs provide space to many industries that have been directly impacted by the spread of COVID-19 and may be negatively impacted by these current conditions.
• The Trust invests in securities issued by mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. 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 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, rating, market value or yield may have changed.