ROGERS COMMODITY INDEX TRAKRS

Objective

The objective of the Rogers Commodity Index TRAKRS is to track as closely as possible the peformance 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 ( October 2007 )

For the month of October commodity prices added to their strong September gains with the Rogers Commodity Index TRAKRS contract gaining 6.2%.  Year-to-date, Rogers Commodity Index TRAKRS have now gained 25.52%.

October also saw the Fed cut its key lending rate to 4.5% to try to calm continuing fears in the credit markets and fend off an economic downturn.  This activity is supportive of commodity prices as it puts pressure on the U.S. dollar making dollar denominated commodities cheaper for foreign buyers.

While the Fed's posture continues to be supportive, underlying fundamentals in the energy complex continue to surprise.  NYMEX crude oil futures reached a new all-time high in October, surging 16% on a confluence of factors, including declining U.S. inventories and concerns that tensions between Turkey and Kurdish militants could spill over into northern Iraq and affect crude oil supplies.  Additionally, there is growing consensus among oil industry experts that mounting global demand and shrinking supplies will soon push crude prices past the $100.00 mark. Gold prices have also moved smartly higher, reaching the $800.00 level for the first time in more than two decades.

In other markets, cotton declined 1.73%, No. 11 sugar by 1.68% and COMEX copper by 5.9%.  Livestock prices also continued to sag in October with CME December lean hogs down 13.46%.  Reliable sources in China are now forecasting that China's corn situation could prove tighter than expected approaching next spring and summer.  It was recently reported that feed production during September increased by more than 27% as government subsidies for expanding pork and poultry production seem to be working.

Returns of the Rogers Commodity Index TRAKRS

Rogers Commodity Index TRAKRS were launched November 2005.

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

Track Record of Commodities *

1 Standard Deviation: A statistical measure of the historical volatility of a portfolio. More generally, a measure of the extent to which numbers are spread around their average.
2 Sharpe Ratio: A risk-adjusted measure of return, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the risk-adjusted performance.
Risk Factors:
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.

The following risks should be considered:
• 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.