International Assets Israel Opportunity Portfolio Series 1

The trust consists of a portfolio of Israeli securities, represented by exchange-listed shares and American Depositary Receipts (“ADRs”). These securities have been identified after a thorough selection process  consisting of “topdown” economic analysis, sector and industry analysis, and company-specific due diligence. International Assets Investment Management, LLC (“IAIM”) believes that Israel has demonstrated significant economic growth in recent years and will continue this trend in the long-term. As such, this market may be poised to realize asset appreciation as global investors identify the investment opportunities and growth potential.

The sponsor has selected IAIM to serve as the trust’s portfolio consultant. The portfolio consultant is responsible for selecting the trust’s portfolio and providing ongoing support related to the securities in the portfolio.

IAIM shall select stocks for the trust that it believes have the potential to achieve the trust’s investment objective. The  individual securities that comprise the trust have been specifically selected by IAIM to take advantage of the potential growth of the region, country and company itself.

See “Investment Risks” in Part A of the prospectus for a discussion of the risks of investing in the trust.

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

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 securities even though a security’s outlook, market value or yield may have changed.
• Share prices or dividend rates on the securities 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.
• The trust will invest in ADRs and foreign securities. The trust’s investment in ADRs and foreign securities presents additional risk. ADRs are issued by a bank or trust company to evidence ownership of underlying securities issued by foreign corporations. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, 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.
• The trust may invest in companies that are considered to be passive foreign investment companies (“PFICs”). In general, PFICs are certain non-U.S. corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties or capital gains) or that hold at least 50% of their assets in investments producing such passive income. As a result of an investment in PFICs, the trust could be subject to U.S. federal income tax and additional interest charges on gains and certain distributions with respect to those equity interests, even if all the income or gain is distributed to its unitholders in a timely manner. The trust will not be able to pass through to its unitholders any credit or deduction for such taxes.
• The trust includes securities issued by companies headquartered in countries considered to be emerging markets. 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 issued by companies headquartered in certain Middle Eastern countries. Certain Middle Eastern markets are in only the earliest stages of development. There also may be a high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries, as well as a high concentration of investors and financial intermediaries. Certain economies in Middle Eastern countries depend to a significant degree upon exports of primary commodities such as gold, silver, copper, diamonds and oil. These economies therefore are vulnerable to changes in commodity prices, which in turn may be affected by a variety of factors. In addition, many Middle Eastern governments have exercised and continue to exercise substantial influence over many aspects of the private sector. In certain cases, the government owns or controls many companies, including the largest in the country. Accordingly, governmental actions in the future could have a significant effect on economic conditions in Middle Eastern countries. Furthermore, investments in companies headquartered in the Middle East may be subject to additional risks because of government instability, terrorism and/or war.
• The trust includes securities issued by companies headquartered in Israel. Investment in companies headquartered in Israel may involve certain risks not typically associated with investments in the United States, including the possibility of future political and economic developments and the level of Israeli governmental supervision and regulation of its securities markets. The Israeli securities markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States.
• The trust includes securities whose value is dependent on currency exchange rates. The U.S. dollar value of these securities will 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.
• The trust invests in securities of companies in the communications sector. General risks of companies in the communications sector include rapidly changing technology, rapid product obsolescence or loss of patent protection, cyclical market patterns, evolving industry standards and frequent new product introductions. Furthermore, deregulation in the communication industry may lead to fierce competition for market share and can have a negative impact on certain companies. Competitive pressures are intense and communications stocks can experience rapid volatility.
• The trust invests in stocks issued by small-capitalization and mid-capitalization companies. These stocks customarily involve more investment risk than stocks of larger capitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• Inflation may lead to a decrease in the value of assets or income from investments.