Global Water Equities Portfolio Series 3

The Trust consists of a portfolio of 25 securities of companies that the Sponsor believes have a focus in at least one of the many categories that comprise the global water business. These categories include, but are not limited to, procurement, treatment, purification, filtration and distribution of water and wastewater treatment. The Sponsor selects stocks for the Trust from within the global water business that it believes have the potential to achieve the Trust’s investment objective. At least 80% of the Trust’s assets have a significant connection to the global water business in that the companies represented devote a portion of their operations to, or derive a material portion of their revenues from, water utilities, water treatment, water testing, water infrastructure and water resource management.

The Sponsor selects global companies that it believes are core holdings of a well-diversified global water 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 global water business. The Sponsor then identifies approximately 25 companies that are diversified across the many global water categories and countries of origin for inclusion in the portfolio through a qualitative analysis based on factors that include, but are not limited to the following:

• 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 sales, earnings and dividends (if applicable).

The portfolio consists of securities of companies that may devote a portion of their operations, or derive a material portion of their revenues from, one of the following categories of the global water business:

• Water Utilities: Water utilities are the regulated purveyors of water directly responsible for getting water supplies to residential, commercial and industrial users. Utilities may be public utilities or investor owned utilities.
• Water Treatment: Treatment refers to the application of technologies and/or processes that alter the composition of water to achieve a beneficial objective in its uses. The most critical treatment objective pertains to the global need for healthy drinking water. Water treatment specifically refers to the process of converting source water to drinking water of sufficient quality to comply with applicable regulations, thereby ensuring the protection of human health, or to treat water in the optimization of an industrial process.
• Water Testing: This category includes companies that provide services, manufacture instrumentation or develop techniques for the analysis, testing or monitoring of water and/or wastewater quality parameters.
• Water Infrastructure/Distribution: This category includes the companies that supply products that are used as a component in the water infrastructure as it relates to the distribution of water. These companies include, among others, pipe manufacturers, pump, valve and flow control manufacturers, storage tanks and those companies that apply a specific technology or process to pipe rehabilitation, repair or replacement.
• Water Resource Management: This category includes companies that provide consulting, engineering and technical services in order to develop irrigation systems and other water resource management systems.
• Conglomerates: The conglomerates category comprises those companies that contribute significantly to the water industry, yet are extensively diversified into other industries or markets such that the contribution of water-related activities is relatively small. These companies may not be conglomerates in the traditional sense, but may have instead sought to apply a particular platform technology, product-line or service capability across several global markets, including water.

As with all investments, you can lose money by investing in this trust. The Trust also might not perform as well as you expect. This can happen for reasons such as these:

• 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 Sponsor does not actively manage the portfolio. The Trust will generally hold, and may continue to buy, the same stocks even though the stock’s outlook or its market value or yield may have changed.
• 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 primary offering period.
• The Trust is concentrated in the water utility industry. Adverse developments in this industry may significantly affect the value of your units. Companies involved in the utility industry must contend with environmental considerations, taxes, government regulation, price and supply fluctuations, competition and water conservation.
• The Trust is concentrated in the industrials industry. Adverse developments in this industry may significantly affect the value of your units. Companies involved in the industrials industry must contend with the state of the economy, intense competitors, domestic and international politics, excess capacity and spending trends.
• The Trust is concentrated in stocks issued by small-cap companies. These stocks customarily involve more risk than large-cap or more seasoned stocks.
• The Trust may invest in foreign securities. The Trust’s investment in foreign stocks also presents additional risk. Foreign risk is the risk that foreign stocks will be more volatile than U.S. stocks 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. As with any mutual fund investment, loss of money is a risk of investing.
• Inflation may decrease the value of money. Inflation may lead to a decrease in the value of assets or income from investments.