ROGERS COMMODITY INDEX TRAKRS

Objective

The objective of the Rogers Commodity Index TRAKRS is to track as closely as possible the performance of the Rogers International Commodity Index®. Rogers Commodity Index TRAKRS provides broad-based representation of the commodity markets, reflecting the current state of international trade and commerce and to obtain the true benefit of global diversification. TRAKRS follow the consumption of 36 commodities worldwide. The value of each component in the Index is based on daily closing prices of the corresponding futures and/or forward contracts.

Summary

Market Commentary (September 2007)

September saw commodity prices post their largest monthly gain in 32 years. Led by wheat, crude oil and gold, the Rogers International Commodity Index jumped 11.23%. While the fundamental backdrop for commodities remains positive (generally expanding global demand and tightening supplies), some retrenchment can be expected in October.

The appeal of commodities as an inflation hedge was enhanced by world central banks decision to inject a massive $325 million into the world’s financial system in August to quell a gathering crisis in the global credit markets. This action was followed by a larger than expected 50 bps cut to both the Fed Funds rate and the Discount rate on September 18th.

The aggressive Fed action pushed several key commodity prices to record levels. If there was ever any doubt, it is now abundantly clear that the world’s central banks will respond to any slowing of the global economy with ever more liquidity. Continuing cuts in U.S. borrowing costs may push the U.S. dollar, already near record low levels, even lower. This would continue to make raw materials priced in the U.S. currency cheaper for buyers holding other currencies.

China remains a major force in the commodity markets. For example, China imported more rice than it exported only three times in the last 44 years. In 2007, China will import more rice than it exports. Global rice inventories, already at 26 year lows, are expected to drop even further according to the USDA. The amount of rice on hand this year will be 50% less than the surplus in 2000. China has lost 8 million hectares of its farmland in the past decade, and rice output in the United States is falling because of rising production costs. Fertilizer and irrigation costs are rising along with energy prices, and farmers are turning to growing other crops that are cheaper to grow. There are more and more people in the world and many crop yields are not rising as quickly as the increases in population. Rice prices have nearly doubled during the course of the past year, moving from $6.50/cwt to $11.50 /cwt as of the end of September.

In other markets, lean hogs declined by 11.85% in September. but corn and soy prices responded positively in the wake of bearish crop reports. The overall trend in commodities remains positive.

Returns of the Rogers Commodity Index TRAKRS

Rogers Commodity Index TRAKRS were launched November 2005.

Statistics of Rogers Commodity Index TRAKRS (November 2005 - September 2007)

Track Record of Commodities *

The following risks should be considered:
Before you invest in Rogers Commodity Index TRAKRS, your broker must provide you with a disclosure statement that informs you of the risks inherent in trading commodity futures contracts. An investor could lose a substantial portion or all of his or her investment in Rogers Commodity Index TRAKRS. Commodity trading is speculative and the Rogers International Commodity Index, upon which the TRAKRS trading will be based, is likely to be volatile and could suffer from periods of prolonged decline in value. Rogers Commodity Index TRAKRS will not provide any benefit of diversification of one’s overall portfolio unless it is profitable and it produces returns that are independent from stock and bond market returns

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.