Utilities Portfolio Series 2

The Trust consists of the stocks of utility companies. The trust is diversified across the utility sector including integrated electric, pipeline and gas distribution companies. The sponsor selects stocks within the sector that it believes have the potential to achieve the Trust's investment objective.

See "Investment Policies" in Part B of the prospectus for more information.

The Sponsor selects companies from within the utility sector by examining factors that include, but are not limited to:

• products and/or services offered by the companies
• the competitive environment
• research and development capabilities
• potential acquisitions
• financing
• a fundamental and technical equity valuation assessment

By employing these steps the Sponsor hopes to identify companies for the Trust that represent the best relative values in the utility sector.

As of the Trust’s inception date (the ‘‘Inception Date’’), the securities in each portfolio are approximately equally dollar weighted.

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.
• 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.
• Share prices or dividend rates on the stocks may decline during the life of the Trust.
• The Trust is concentrated in the 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, the difficulty of the capital market in absorbing utility debt, the difficulty in obtaining fuel at reasonable prices, taxes, government regulation, price and supply fluctuations, competition and energy conservation.