Spin-Off Portfolio Series 2

Under normal circumstances, the Trust will invest at least 80% of the value of its net assets in securities of “spin-off” companies, as defined by Beacon Indexes (“Beacon”). Beacon defines a spin-off company as any company resulting from either of the following events: (i) a spinoff distribution of stock of a subsidiary company by its parent company to parent company shareholders or equity “carveouts;” or (ii) “partial initial public offerings” in which a parent company sells a percentage of the equity of a subsidiary to public shareholders. The Trust utilizes a quantitative selection process developed by Beacon to attempt to construct a portfolio of companies with potentially superior risk/return profiles as determined by Beacon. The universe of companies eligible for inclusion consists of companies that have been spun off within the past 30 months (but not more recently than six months prior to the security selection date).

The Trust will invest in a portfolio of U.S.- traded stocks (which may include U.S.-listed foreign securities), American Depositary Receipts (“ADRs”), master limited partnerships (“MLPs”) and real estate investment Trusts (“REITs”). The Trust will invest primarily in companies with market capitalizations under $10 billion, however, it may invest in companies of all market capitalizations, including micro-capitalization securities.

As a result of this strategy, the Trust is concentrated in the consumer products sector.

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

The portfolio is designed to represent the securities of a group of companies that have recently been spun-off from larger corporations. The portfolio selection model evaluates and selects stocks from a universe of recently spun-off companies using a proprietary methodology developed by Beacon. The portfolio selection methodology utilizes multi-factor selection rules in an attempt to identify those stocks that offer the greatest potential from a risk/return perspective while maintaining industry diversification.

In constructing the Trust’s portfolio, the securities were selected based on the following steps:

1. Begin by identifying an initial universe of all equity securities trading on major U.S. exchanges of companies that were spun-off during the period beginning 30 months prior to portfolio selection and ending 6 months prior to portfolio selection.

2. Rank each company using a quantitative methodology that includes composite scoring of several growth-oriented, multi-factor filters. These filters are proprietary information owned and used by Beacon.

3. Select the highest-ranking stocks. 33 stocks will be selected for the final portfolio.

Beacon Indexes

Beacon Indexes creates and publishes custom indexes using a combination of qualitative research and quantitative methods. Beacon designs custom indexes to quantitatively measure specific market segments. The indexes are used for custom institutional benchmarks and investment product design. Beacon is a division of Beacon Trust Company.

INDEX DEFINITIONS: The Beacon Spin-off Index is comprised of up to 40 securities selected, based on investment and other criteria, from a broad universe of U.S.-traded stocks, ADRs and MLPs. The universe of companies eligible for inclusion in the Index includes companies that have been spun-off within the past 30 months (but not more recently than six months prior to the applicable rebalancing date), without limitations on market capitalization (including micro-cap securities), but which are primarily small- and mid-cap companies with capitalizations under $10 billion. Beacon Indexes LLC (“Beacon” or the “Index Provider”) defines a spinoff company as any company resulting from either of the following events: a spin-off distribution of stock of a subsidiary company by its parent company to parent company shareholders or equity “carve-outs” or “partial initial public offerings” in which a parent company sells a percentage of the equity of a subsidiary to public shareholders.

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.

• The Trust invests in securities issued by “spin-off” companies. These issuers generally are subsidiaries of larger companies and customarily involve more investment risk than investment in securities of the parent company. In particular, these companies may focus on a single or narrow group of product lines, may have limited access to capital markets or financial resources, and may offer limited liquidity. In addition, spin-off companies may initially have significant administrative costs, including expenses associated with financial reporting and company overhead as a result of the partial or complete split with the parent company. As a result, spin-off companies may be more vulnerable to adverse general market or economic developments.

• The Trust is concentrated in the consumer products sector. As a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Some of the risks associated with the consumer products sector are listed below. General risks of companies in the consumer products 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 products sector.

• The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of large-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.

• The Trust invests in an ADR and U.S.-listed foreign securities. The Trust’s investment in an ADR and U.S.- listed 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 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.

• 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.

• 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.