European Capital Strength & Hedged Currency Portfolio Series 3

The Trust seeks to provide to investors exposure to European equities and exchange-traded funds (“ETFs”) designed to deliver a hedged currency strategy. Accordingly, under normal circumstances, the Trust will invest at least 80% of the value of its assets in equity securities of European companies and in ETFs that hedge some of the foreign currency risk generally associated with international investing. For purposes of this 80% test, European companies will be defined as those with a European home country designation by the Russell Global Index Methodology.

The Trust invests approximately 50% of the portfolio in common stocks, which may include American Depositary Receipts, of European companies that the Sponsor believes have strong valuations, returns on capital and balance sheets. To determine whether a company has an attractive valuation, the Sponsor compares valuation metrics against the selected company’s peer group. Strong returns on capital are evidenced by the company’s return on capital compared to the selected company’s peer group. Companies with strong balance sheets are typically those entities that are less levered than their peers. The Trust’s investment process is designed to favor strong cash flow generating companies that trade at reasonable multiples of their excess profits. However, there can be no assurance that the Trust's investment strategy will identify companies that will perform well in the future.

The ETFs, which will represent approximately 50% of the portfolio, will invest in both currency strategies designed to benefit from a strengthening U.S. dollar as well as European equity ETFs, which employ a hedge against currency risk. The ETFs may use derivatives to hedge their exposure to the euro. However, there can be no assurance that any security held by the Trust will meet the Trust’s objective.

European Equities

Approximately 50% of the Trust portfolio will constitute common stocks selected by the Sponsor using the methodology described below:

• Begin with the largest 30% of companies, as measured by market capitalization, with home country designations by the Russell Global Index Methodology in developed Western European countries. The Trust may invest in companies of all market capitalizations.

• Focus on companies which have demonstrated several years of consistently higher return on equity, and which have debt leverage levels lower than the broader developed European equity market and their industry peers.

• Filter out “value traps,” which are those companies with the worst fundamentals in their sector, as determined by the Sponsor, or with steep market declines that imply a turn in fundamentals.

Hedging ETFs

Approximately 50% of the Trust portfolio will constitute ETFs selected by the Sponsor using the methodology discussed below:

• Start with the entire universe of ETFs traded on major U.S. exchange.

• Select ETFs designed to benefit from a strengthening U.S. dollar currency as a means to offset foreign currency fluctuations or are constructed as a European equity portfolio with a European currency hedge overlay.

• ETFs selected for inclusion in the final portfolio must have a minimum market capitalization of $100 million. The Trust does not have a market capitalization policy for the equities held by the ETFs.

Russell Global Index Methodology

The Trust utilizes the Russell Global Index Methodology to determine a security’s home country designation. The Russell Global Index Methodology initially looks at the country of incorporation, the stated country of headquarters and what countries the security trades in. If these three match, then that country is designated as the home country. If any of these three criteria do not match, then the Russell Global Index Methodology compares the primary location of the company’s assets (averaged for the last two years) against three home country indicators (the “HCIs”), which are 1) the country of incorporation; 2) the country of headquarters; and 3) the country of the most liquid exchange, as defined by 2-year average daily dollar trading volume. If the primary location of the company’s assets matches with any of the three HCIs, then that country is designated as the home country. If the primary location of a company’s assets cannot be determined, then the Russell Global Index Methodology compares the primary location of the company’s revenues (averaged for the last two years) against the three HCIs. If the primary location of the company’s revenues matches with any of the three HCIs, then that country is designated as the home country. If the Russell Global Index Methodology cannot determine the home country using the company’s assets or revenue, the country of headquarters is generally assigned as the home country.

European Equities

Approximately 50% of the Trust portfolio will constitute common stocks selected by the Sponsor using the methodology described below:

• Begin with the largest 30% of companies, as measured by market capitalization, with home country designations by the Russell Global Index Methodology in developed Western European countries. The Trust may invest in companies of all market capitalizations.

• Focus on companies which have demonstrated several years of consistently higher return on equity, and which have debt leverage levels lower than the broader developed European equity market and their industry peers.

• Filter out “value traps,” which are those companies with the worst fundamentals in their sector, as determined by the Sponsor, or with steep market declines that imply a turn in fundamentals.

Hedging ETFs

Approximately 50% of the Trust portfolio will constitute ETFs selected by the Sponsor using the methodology discussed below:

• Start with the entire universe of ETFs traded on major U.S. exchange.

• Select ETFs designed to benefit from a strengthening U.S. dollar currency as a means to offset foreign currency fluctuations or are constructed as a European equity portfolio with a European currency hedge overlay.

• ETFs selected for inclusion in the final portfolio must have a minimum market capitalization of $100 million. The Trust does not have a market capitalization policy for the equities held by the ETFs.

Russell Global Index Methodology

The Trust utilizes the Russell Global Index Methodology to determine a security’s home country designation. The Russell Global Index Methodology initially looks at the country of incorporation, the stated country of headquarters and what countries the security trades in. If these three match, then that country is designated as the home country. If any of these three criteria do not match, then the Russell Global Index Methodology compares the primary location of the company’s assets (averaged for the last two years) against three home country indicators (the “HCIs”), which are 1) the country of incorporation; 2) the country of headquarters; and 3) the country of the most liquid exchange, as defined by 2-year average daily dollar trading volume. If the primary location of the company’s assets matches with any of the three HCIs, then that country is designated as the home country. If the primary location of a company’s assets cannot be determined, then the Russell Global Index Methodology compares the primary location of the company’s revenues (averaged for the last two years) against the three HCIs. If the primary location of the company’s revenues matches with any of the three HCIs, then that country is designated as the home country. If the Russell Global Index Methodology cannot determine the home country using the company’s assets or revenue, the country of headquarters is generally assigned as the home country.