Global Agriculture Portfolio Series 16

The Trust consists of securities of companies incorporated in at least five different countries and selected by the Sponsor that may appreciate in value, especially in an environment of rising agricultural commodity prices. These commodities include, but are not limited to, corn, soybeans, wheat, sugar, palm oil, cotton, fruit and livestock. In addition, the Trust invests in companies that processes and distributes plant or animal agricultural products, manufactures equipment used in the agricultural process, or offers goods and services to improve the agricultural process.

Under normal circumstances, at least 80% of the Trust’s assets have a significant connection to the global agriculture business. The Trust may invest in the securities of U.S. and non-U.S. companies. As of the date of deposit, the Trust will invest at least 40% of its assets in the securities of non-U.S. companies incorporated in at least five different countries. As a result of this strategy, the Trust is concentrated in the consumer staples and materials sectors.

Agricultural Commodities
The Sponsor believes that this Trust offers an opportunity to invest in a global basket of companies that directly produce or provide services to the global agricultural business. Unlike owning agricultural commodities outright—where returns are limited to an increase in prices— investing in companies that generate these products can produce earnings and share price appreciation regardless of the commodity price environment, though rising agricultural prices would generally benefit such companies.

In addition, as more of the limited supply of certain agricultural products is diverted to biofuel consumption and general population trends make global food supplies more scarce, the prices of agricultural products may positively impact the performance of the Trust. The Sponsor believes that these forces may sustain agricultural commodities prices above historical levels.

As with any similar investments, there can be no guarantee that the objective of the Trust will be achieved. Additionally, there is no guarantee that agricultural commodities prices or stocks of companies in the agricultural industry will perform well or that the Trust will replicate the future performance of the agricultural industry as a whole. See “Investment Risks” in Part A of the prospectus for a discussion of the risks of investing in the Trust.

The Sponsor selects global companies that it believes are core holdings of an agricultural portfolio. To select the portfolio, the Sponsor begins by identifying a universe of approximately 500 companies that it believes have a significant focus (based on revenues and/or earnings) in the various activities involved in the global agriculture industry. The Sponsor then identifies companies that are diversified across the many categories and countries of origin that comprise the agricultural business for inclusion in the portfolio. The selection process uses a qualitative analysis, which may be based on, but is not limited to, each firm’s revenue and earnings growth, margin expansion, and industry leadership.

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.
• 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 securities of companies in the agribusiness industry. Companies involved in the agribusiness industry are subject to numerous risks, including cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, weather conditions, quotas, product liability litigation and governmental regulation and subsidies. Generally, the agribusiness industry is affected by the economic health of consumers. A weak economy and its effect on consumer spending would adversely affect agribusiness companies.
• The Trust is concentrated in the consumer staples sector. As a result, the factors that impact the consumer staples sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the consumer staples sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer staples sector.
• The Trust is concentrated in the basic materials sector. As a result, the factors that impact the basic materials sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the basic materials sector include the general state of the economy, consolidation, domestic and international politics and excess capacity. In addition, basic materials companies may also be significantly affected by volatility of commodity prices, import controls, worldwide competition, liability for environmental damage, depletion of resources and mandated expenditures for safety and pollution control devices.
• The Trust invests in securities issued by small-capitalization and midcapitalization companies. These securities customarily involve more investment risk than securities of large- capitalization companies. Small-capitalization and midcapitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• The Trust invests in foreign securities listed on a foreign exchange and a U.S.-listed foreign security. The Trust’s investment in foreign securities listed on a foreign exchange and a U.S.-listed foreign security presents additional risk. 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 includes securities issued by companies headquartered or incorporated in countries considered to be emerging markets. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk.
• The Trust includes securities whose value may be dependent on currency exchange rates. The U.S. dollar value of these securities may vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.
• 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.