ADVISORS D T 1850 F O P S UBIQUITOUS STRATEGY … › FISDocuments › FISDocuments...Preliminary Prospectus Dated September 29, 2017 ADVISORS DISCIPLINED TRUST 1850 FINANCIAL OPPORTUNITIES

Preliminary Prospectus Dated September 29, 2017 ADVISORS DISCIPLINED TRUST 1850

FINANCIAL OPPORTUNITIES PORTFOLIO, SERIES 2018-1 UBIQUITOUS STRATEGY PORTFOLIO, SERIES 2018-1

The attached final prospectus for a prior Advisors Disciplined Trust series is hereby used as a preliminary prospectus for the above stated series. The narrative information and structure of the attached final prospectus will be substantially the same as that of the final prospectus for this series. Information with respect to pricing, the number of units, dates and summary information regarding the characteristics of securities to be deposited in this series is not now available and will be different since each unit investment trust has a unique portfolio. Accordingly the information contained herein with regard to the previous series should be considered as being included for informational purposes only.

A registration statement relating to the units of this series has been filed with the Securities and Exchange Commission but has not yet become effective. Information contained herein is subject to completion or amendment. Such units may not be sold nor may an offer to buy be accepted prior to the time the registration statement becomes effective. This prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the units in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

(Incorporated herein by reference is the final prospectus and information supplement from Advisors Disciplined Trust 1809 (Registration No. 333-218411) as filed on June 22, 2017 which shall be used as a preliminary prospectus and information supplement for the current series of the trust.)

Prospectus

June 22, 2017

As with any investment, the Securities andExchange Commission has not approvedor disapproved of these securities orpassed upon the adequacy or accuracy ofthis prospectus. Any contrary representa-tion is a criminal offense.

Financial Opportunities Portfolio,Series 2017-3

Ubiquitous Strategy Portfolio,Series 2017-3

(Advisors Disciplined Trust 1809)

IINNVVEESSTTMMEENNTT OOBBJJEECCTTIIVVEE

The trust seeks to provide capital apprecia-tion. There is no assurance the trust will achieveits objective.

PPRRIINNCCIIPPAALL IINNVVEESSTTMMEENNTT SSTTRRAATTEEGGYY

The trust seeks to provide capital apprecia-tion by investing in a diversified portfolio of com-mon stocks of companies involved in aspects ofthe financial industry including, among otherthings, banking, mortgage finance, consumerfinance, specialized finance, investment bankingand brokerage, asset management and custody,corporate lending, insurance, financial invest-ment, and real estate.

In selecting the securities for the portfolio,we* considered market capitalization, revenues,revenue growth, earnings, earnings growth andvaluation to construct a portfolio that we believeadequately represents the financial industry.Under normal circumstances the trust will investat least 80% of its assets in securities of compa-nies involved in aspects of the financial industry.

PPRRIINNCCIIPPAALL RRIISSKKSS

As with all investments, you can lose money byinvesting in this trust. The trust also might notperform as well as you expect. This can happen forreasons such as these:

• SSeeccuurriittyy pprriicceess wwiillll fflluuccttuuaattee. The value ofyour investment may fall over time.

• TThhee iissssuueerr ooff aa sseeccuurriittyy mmaayy bbee uunnwwiilllliinngg oorruunnaabbllee ttoo mmaakkee ddiivviiddeenndd ppaayymmeennttss iinn tthheeffuuttuurree.. This may reduce the level of divi-dends the trust receives which would reduceyour income and cause the value of yourunits to fall.

• TThhee ffiinnaanncciiaall ccoonnddiittiioonn ooff aann iissssuueerr mmaayywwoorrsseenn oorr iittss ccrreeddiitt rraattiinnggss mmaayy ddrroopp,, rreessuulltt--iinngg iinn aa rreedduuccttiioonn iinn tthhee vvaalluuee ooff yyoouurr uunniittss..This may occur at any point in time, includ-ing during the primary offering period.

• TThhee ttrruusstt iiss ccoonncceennttrraatteedd iinn sseeccuurriittiieess iissssuueeddbbyy ccoommppaanniieess iinn tthhee ffiinnaanncciiaallss sseeccttoorr..Negative developments in the financials sec-tor will affect the value of your investmentmore than would be the case in a more diver-sified investment.

• TThhee ttrruusstt mmaayy iinnvveesstt iinn sseeccuurriittiieess ooff ssmmaallllaanndd mmiidd--ssiizzee ccoommppaanniieess.. These securities areoften more volatile and have lower tradingvolumes than securities of larger companies.Small and mid-size companies may have lim-ited products or financial resources, manage-ment inexperience and less publicly availableinformation.

• WWee ddoo nnoott aaccttiivveellyy mmaannaaggee tthhee ppoorrttffoolliioo..Except in limited circumstances, the trust willgenerally hold, and continue to buy, shares ofthe same securities even if their market valuedeclines.

2 Investment Summary

FINANCIAL OPPORTUNITIES PORTFOLIO

* “AAM,” “we” and related terms mean Advisors Asset Management,Inc., the trust sponsor, unless the context clearly suggests otherwise.

WWHHOO SSHHOOUULLDD IINNVVEESSTT

You should consider this investment if you want:

• to own a defined portfolio of stocks of com-panies involved in aspects of the financialindustry.

• the potential for capital appreciation.

You should not consider this investment if you:

• are uncomfortable with the risks of anunmanaged investment in common stocks.

• are uncomfortable investing in companiesinvolved in aspects of the financial industry.

• seek current income or capital preservation.

FFEEEESS AANNDD EEXXPPEENNSSEESS

The amounts below are estimates of the direct andindirect expenses that you may incur based on a $10unit price. Actual expenses may vary.

AAss aa %% AAmmoouunntt ooff $$11,,000000 ppeerr 110000

SSaalleess FFeeee IInnvveesstteedd UUnniittss

Initial sales fee 0.00% $0.00Deferred sales fee 2.25 22.50Creation & development fee 0.50 5.00Maximum sales fee 2.75% $27.50

OOrrggaanniizzaattiioonn CCoossttss 0.49% $4.90

AAss aa %% AAmmoouunnttAAnnnnuuaall ooff NNeett ppeerr 110000ooppeerraattiinngg eexxppeennsseess AAsssseettss UUnniittss

Trustee fee & expenses 0.19% $1.83Supervisory, evaluation

and administration fees 0.10 1.00Total 0.29% $2.83

The initial sales fee is the difference between thetotal sales fee (maximum of 2.75% of the unit offeringprice) and the sum of the remaining deferred sales feeand the total creation and development fee. The deferredsales fee is fixed at $0.225 per unit and is paid in threemonthly installments beginning November 20, 2017.The creation and development fee is fixed at $0.05 perunit and is paid at the end of the initial offering period(anticipated to be approximately four months). Whenthe public offering price per unit is less than or equalto $10, you will not pay an initial sales fee. When thepublic offering price per unit is greater than $10 perunit, you will pay an initial sales fee.

EEXXAAMMPPLLEE

This example helps you compare the cost of thistrust with other unit trusts and mutual funds. In theexample we assume that the expenses do not changeand that the trust’s annual return is 5%. Your actualreturns and expenses will vary. Based on these assump-tions, you would pay these expenses for every $10,000you invest in the trust:

1 year $3522 years (approximate life of trust) $382

These amounts are the same regardless of whetheryou sell your investment at the end of a period or con-tinue to hold your investment.

Investment Summary 3

ESSENTIAL INFORMATION

Unit price at inception $10.0000

Inception date June 22, 2017Termination date July 8, 2019

Estimated net annual distributions*First year $0.1037 per unitSecond year $0.1022 per unit

Distribution dates 25th day of January, April,July and October

Record dates 10th day of January, April,July and October

CUSIP NumbersStandard Accounts

Cash distributions 00776Q229Reinvest distributions 00776Q237

Fee Based AccountsCash distributions 00776Q245Reinvest distributions 00776Q252

Ticker Symbol FOPAFX

Minimum investment $1,000/100 units

Tax Structure Regulated Investment Company

* As of June 21, 2017 and may vary thereafter.

Financial Opportunities Portfolio, Series 2017-3(Advisors Disciplined Trust 1809)PortfolioAs of the trust inception date, June 22, 2017

COMMON STOCKS — 100.00%

Financials - 89.51%

24 AMG Affiliated Managers Group, Inc. 2.62% $161.86 $3,88544 ALL The Allstate Corporation 2.65 89.24 3,92739 AFG American Financial Group, Inc. 2.64 100.31 3,91230 AMP Ameriprise Financial, Inc. 2.59 128.24 3,847

169 BAC Bank of America Corporation 2.64 23.13 3,90979 BK The Bank of New York Mellon Corporation 2.64 49.59 3,91884 OZRK Bank of the Ozarks, Inc. 2.64 46.64 3,91890 BBT BB&T Corporation 2.65 43.65 3,92823 BRK/B Berkshire Hathaway, Inc. (3) 2.63 169.62 3,901

9 BLK BlackRock, Inc. 2.55 420.74 3,78794 SCHW The Charles Schwab Corporation 2.65 41.75 3,92427 CB Chubb Limited (4) 2.67 146.62 3,95961 C Citigroup, Inc. 2.62 63.83 3,89431 CME CME Group, Inc. 2.61 124.90 3,87265 DFS Discover Financial Services 2.64 60.36 3,92369 EWBC East West Bancorp, Inc. 2.63 56.58 3,90415 RE Everest Re Group Limited (4) 2.59 256.58 3,84918 GS The Goldman Sachs Group, Inc. 2.70 222.49 4,00561 ICE Intercontinental Exchange, Inc. 2.64 64.29 3,92245 JPM JPMorgan Chase & Company 2.64 87.12 3,92049 MMC Marsh & McLennan Companies, Inc. 2.62 79.40 3,89187 MS Morgan Stanley 2.63 44.91 3,90732 PNC The PNC Financial Services Group, Inc. 2.64 122.33 3,91578 PFBC Preferred Bank 2.63 50.04 3,90337 PRU Prudential Financial, Inc. 2.62 104.89 3,88150 RJF Raymond James Financial, Inc. 2.62 77.68 3,88427 SPGI S&P Global, Inc. 2.64 145.22 3,92129 SBNY Signature Bank (3) 2.68 136.90 3,97096 AMTD TD Ameritrade Holding Corporation 2.63 40.62 3,89975 USB U.S. Bancorp 2.63 52.00 3,900

(Continued)


Percentage of Market Cost ofNumber Ticker Aggregate Offering Value per Securitiesof Shares Symbol Issuer(1) Price Share(1) to Trust(2)


Financial Opportunities Portfolio, Series 2017-3(Advisors Disciplined Trust 1809)Portfolio (Continued)As of the trust inception date, June 22, 2017

Financials (Continued)

74 WFC Wells Fargo & Company 2.64% $52.98 $3,92081 WAL Western Alliance Bancorp (3) 2.64 48.42 3,92252 WTFC Wintrust Financial Corporation 2.62 74.62 3,88092 ZION Zions Bancorporation 2.63 42.33 3,894

Information Technology - 7.86%

73 PYPL PayPal Holdings, Inc. (3) 2.63 53.54 3,90865 VNTV Vantiv, Inc. (3) 2.62 59.88 3,89241 V Visa, Inc. 2.61 94.54 3,876

Real Estate - 2.63%

111 CBG CBRE Group, Inc. (3) 2.63 35.14 3,901

100.00% $148,368

Notes to Portfolio

(1) Securities are represented by contracts to purchase securities. The value of each security is based on the most recent closing sale price of eachsecurity as of the close of regular trading on the New York Stock Exchange on the business day prior to the trust’s inception date. In accordancewith Accounting Standards Codification 820, “Fair Value Measurements”, the trust’s investments are classified as Level 1, which refers to securityprices determined using quoted prices in active markets for identical securities.

(2) The cost of the securities to the sponsor and the sponsor’s profit or (loss) (which is the difference between the cost of the securities to thesponsor and the cost of the securities to the trust) are $148,368 and $0, respectively.

(3) This is a non-income producing security.

(4) This is a security issued by a foreign company.

Common stocks comprise 100.00% of the investments in the trust, broken down by country of organization as set forth below:

Bermuda 2.59%Switzerland 2.67%United States 94.74%


IINNVVEESSTTMMEENNTT OOBBJJEECCTTIIVVEE

The trust seeks to provide above average totalreturn primarily through capital appreciation.There is no assurance the trust will achieve itsobjective.

PPRRIINNCCIIPPAALL IINNVVEESSTTMMEENNTT SSTTRRAATTEEGGYY

The trust seeks to achieve its objective byinvesting in a portfolio of stocks of companiesderiving a substantial portion of their revenuesworldwide that Pence Capital Management, LLC(the “Portfolio Consultant”) believes are involvedin aspects of the transformation of consumerbehavior and a shift in how people transact pur-chases. Today, shopping has become easier asinnovations in electronics and information tech-nology provide consumers access to a wide rangeof products from the convenience of almost any-where and the ease of using their smart phonesand tablets. Consumers can fulfill desires sponta-neously without going to brick and mortarstores. Consumers shop online using smartphones and tablets, connect wirelessly fromalmost anywhere, are able to purchase almost anyproduct online, pay by credit cards and haveproducts delivered to their doorsteps.

From these companies involved in aspects ofthis shift in how people transact purchases, securi-ties were selected for the trust’s portfolio by ana-lyzing factors including expected market domi-nance over the next three to five years, relativesize within industry sectors based on market capi-talization, steadiness of past earnings growth ratesand revenue growth, strength of earnings and rev-enue projects, balance sheet strength, valuationand levels of cash holdings.

PPRRIINNCCIIPPAALL RRIISSKKSS

As with all investments, you can lose money byinvesting in this trust. The trust also might notperform as well as you expect. This can happen forreasons such as these:

• SSeeccuurriittyy pprriicceess wwiillll fflluuccttuuaattee. The value ofyour investment may fall over time.

• TThhee ffiinnaanncciiaall ccoonnddiittiioonn ooff aann iissssuueerr mmaayywwoorrsseenn oorr iittss ccrreeddiitt rraattiinnggss mmaayy ddrroopp,, rreessuulltt--iinngg iinn aa rreedduuccttiioonn iinn tthhee vvaalluuee ooff yyoouurr uunniittss..This may occur at any point in time, includ-ing during the primary offering period.

• TThhee iissssuueerr ooff aa sseeccuurriittyy mmaayy bbee uunnwwiilllliinngg oorruunnaabbllee ttoo mmaakkee ddiivviiddeenndd ppaayymmeennttss iinn tthheeffuuttuurree.. This may reduce the level of divi-dends the trust receives which would reduceyour income and cause the value of yourunits to fall.

• TThhee ttrruusstt iiss ccoonncceennttrraatteedd iinn sseeccuurriittiieess iissssuueeddbbyy ccoommppaanniieess iinn tthhee iinnffoorrmmaattiioonn tteecchhnnoollooggyysseeccttoorr.. Negative developments in the infor-mation technology sector will affect the valueof your investment more than would be thecase in a more diversified investment.

• WWee** ddoo nnoott aaccttiivveellyy mmaannaaggee tthhee ppoorrttffoolliioo..Except in limited circumstances, the trust willgenerally hold, and continue to buy, shares ofthe same securities even if their market valuedeclines.

PPOORRFFOOLLIIOO CCOONNSSUULLTTAANNTT

The Portfolio Consultant, Pence CapitalManagement, LLC, is a registered investmentadviser registered with the U.S. Securities andExchange Commission.

* “AAM,” “we” and related terms mean Advisors Asset Management,Inc., the trust sponsor, unless the context clearly suggests otherwise.


UBIQUITOUS STRATEGY PORTFOLIO

Pence Capital Management, LLC is a regis-tered investment advisory firm based in NewportBeach, California. The firm uses its proprietaryresearch to identify and deliver actionable invest-ment insights. The firm is led by Colonel (ret) E.Dryden Pence III, a Harvard-educated economistwith thirty years of experience in the financialindustry. His formal training and knowledge ineconomics combined with his career of more thantwenty-two years in Army Intelligence, SpecialOperations and Psychological Warfare, gives thefirm a unique understanding of human behaviorand its effects on the economy and the markets.The Ubiquitous Strategy Portfolio is based on thefirm’s expertise in portfolio construction.

The Portfolio Consultant is not an affiliate ofthe sponsor. The Portfolio Consultant makes norepresentations that the portfolio will achieve theinvestment objectives or will be profitable or suit-able for any particular potential investor.

The Portfolio Consultant and/or its affiliatesmay use the list of securities in its independentcapacity as an investment adviser and distributethis information to various individuals and enti-ties. The Portfolio Consultant and/or its affiliatesmay recommend to other clients or otherwiseeffect transactions in the securities held by thetrust. This may have an adverse effect on theprices of the securities. This also may have animpact on the price the trust pays for the securi-ties and the price received upon unit redemptionsor liquidation of the securities. The PortfolioConsultant and/or its affiliates also may issuereports and makes recommendations on securi-ties, which may include the securities in the trust.

Neither the Portfolio Consultant nor thesponsor manages the trust. Opinions expressedby the Portfolio Consultant are not necessarilythose of the sponsor, and may not actually come

to pass. The Portfolio Consultant is being com-pensated for its portfolio consulting services,including selection of the trust portfolio.


WWHHOO SSHHOOUULLDD IINNVVEESSTT

You should consider this investment if you want:

• to own a defined portfolio of stocks.

• the potential for capital appreciation.

You should not consider this investment if you:

• are uncomfortable with the risks of anunmanaged investment in common stocks.

• seek high current income or capital preserva-tion.

FFEEEESS AANNDD EEXXPPEENNSSEESS

The amounts below are estimates of the direct andindirect expenses that you may incur based on a $10unit price. Actual expenses may vary.

AAss aa %% AAmmoouunnttooff $$11,,000000 ppeerr 110000

SSaalleess FFeeee IInnvveesstteedd UUnniittss

Initial sales fee 0.00% $0.00Deferred sales fee 2.25 22.50Creation & development fee 0.50 5.00Maximum sales fee 2.75% $27.50

OOrrggaanniizzaattiioonn CCoossttss 0.49% $4.90

AAss aa %% AAmmoouunnttAAnnnnuuaall ooff NNeett ppeerr 110000ooppeerraattiinngg eexxppeennsseess AAsssseettss UUnniittss

Trustee fee & expenses 0.15% $1.48Supervisory, evaluation

and administration fees 0.10 1.00Total 0.25% $2.48

The initial sales fee is the difference between thetotal sales fee (maximum of 2.75% of the unit offeringprice) and the sum of the remaining deferred sales feeand the total creation and development fee. Thedeferred sales fee is fixed at $0.225 per unit with the firstinstallment commencing on November 20, 2017 thesecond installment on December 20, 2017 and thefinal installment on January 20, 2018. The creationand development fee is fixed at $0.05 per unit and ispaid at the end of the initial offering period (anticipatedto be approximately four months). When the publicoffering price per unit is less than or equal to $10, youwill not pay an initial sales fee. When the public offer-ing price per unit is greater than $10 per unit, you willpay an initial sales fee.

EEXXAAMMPPLLEE

This example helps you compare the cost of thistrust with other unit trusts and mutual funds. In theexample we assume that the expenses do not changeand that the trust’s annual return is 5%. Your actualreturns and expenses will vary. Based on these assump-tions, you would pay these expenses for every $10,000you invest in the trust:

1 year $3492 years (approximate life of trust) $375

These amounts are the same regardless of whetheryou sell your investment at the end of a period or con-tinue to hold your investment.

ESSENTIAL INFORMATION

Unit price at inception $10.0000

Inception date June 22, 2017Termination date July 8, 2019

Estimated net annualdistributions*First year $0.0916 per unitSecond year $0.0903 per unit

Distribution dates 25th day of each month

Record dates 10th day of each month

CUSIP NumbersStandard Accounts

Cash distributions 00776Q260Reinvest distributions 00776Q278

Fee Based AccountsCash distributions 00776Q286Reinvest distributions 00776Q294

Ticker Symbol UBQPFX

Minimum investment $1,000/100 units

Tax Structure Grantor Trust

* As of June 21, 2017 and may vary thereafter.


Ubiquitous Strategy Portfolio, Series 2017-3(Advisors Disciplined Trust 1809)PortfolioAs of the trust inception date, June 22, 2017

COMMON STOCKS — 100.00%

Consumer Discretionary - 21.81%22 AMZN Amazon.com, Inc. (3) 14.88% $1,002.23 $22,04913 CHTR Charter Communications, Inc. (3) 2.93 333.88 4,340

147 CMCSA Comcast Corporation 4.00 40.28 5,921

Financials - 3.00%54 AXP American Express Company 3.00 82.21 4,439

Industrials - 6.03%21 FDX FedEx Corporation 3.01 212.30 4,45841 UPS United Parcel Service, Inc. 3.02 109.19 4,477

Information Technology - 53.08%15 GOOGL Alphabet, Inc. (3) 9.91 978.59 14,679

102 AAPL Apple, Inc. 10.04 145.87 14,879127 EBAY eBay, Inc. (3) 3.00 34.96 4,440

97 FB Facebook, Inc. (3) 10.08 153.91 14,92960 MA Mastercard, Inc. 4.99 123.10 7,386

148 MSFT Microsoft Corporation 7.02 70.27 10,40083 PYPL PayPal Holdings, Inc. (3) 3.00 53.54 4,44479 V Visa, Inc. 5.04 94.54 7,469

Real Estate - 10.07%57 AMT American Tower Corporation 5.03 130.61 7,44575 CCI Crown Castle International Corporation 5.04 99.50 7,462

Telecommunication Services - 6.01%117 T AT&T, Inc. 3.01 38.15 4,464

98 VZ Verizon Communications, Inc. 3.00 45.41 4,450

100.00% $148,131

Notes to Portfolio

(1) Securities are represented by contracts to purchase securities. The value of each security is based on the most recent closing sale price of eachsecurity as of the close of regular trading on the New York Stock Exchange on the business day prior to the trust’s inception date. In accordancewith Accounting Standards Codification 820, “Fair Value Measurements”, the trust’s investments are classified as Level 1, which refers to securityprices determined using quoted prices in active markets for identical securities.

(2) The cost of the securities to the sponsor and the sponsor’s profit or (loss) (which is the difference between the cost of the securities to thesponsor and the cost of the securities to the trust) are $148,131 and $0, respectively.

(3) This is a non-income producing security.

(4) This is a security issued by a foreign company.



HHOOWW TTOO BBUUYY UUNNIITTSS

You can buy units of a trust on any businessday the New York Stock Exchange is open bycontacting your financial professional. Unitprices are available daily on the Internet atwwwwww..AAAAMMlliivvee..ccoomm.. The public offering price ofunits includes:

• the net asset value per unit plus

• organization costs plus

• the sales fee.

The “net asset value per unit” is the value ofthe securities, cash and other assets in your trustreduced by the liabilities of your trust divided bythe total units or your trust outstanding. Weoften refer to the public offering price of units asthe “offer price” or “purchase price.” The offerprice will be effective for all orders received priorto the close of regular trading on the New YorkStock Exchange (normally 4:00 p.m. Easterntime). If we receive your order prior to the closeof regular trading on the New York StockExchange or authorized financial professionalsreceive your order prior to that time and properlytransmit the order to us by the time that we des-ignate, then you will receive the price computedon the date of receipt. If we receive your orderafter the close of regular trading on the New YorkStock Exchange, if authorized financial profes-sionals receive your order after that time or iforders are received by such persons and are nottransmitted to us by the time that we designate,then you will receive the price computed on thedate of the next determined offer price providedthat your order is received in a timely manner onthat date. It is the responsibility of the author-ized financial professional to transmit the ordersthat they receive to us in a timely manner.

Certain broker-dealers may charge a transactionor other fee for processing unit purchase orders.

VVaalluuee ooff tthhee SSeeccuurriittiieess.. We determine thevalue of the securities as of the close of regulartrading on the New York Stock Exchange on eachday that exchange is open. We generally deter-mine the value of securities using the last sale pricefor securities traded on a national securitiesexchange. For this purpose, the trustee providesus closing prices from a reporting service approvedby us. In some cases we will price a security basedon its fair value after considering appropriate fac-tors relevant to the value of the security. We willonly do this if a security is not principally tradedon a national securities exchange or if the marketquotes are unavailable or inappropriate.

We determined the initial prices of the securi-ties shown under each “Portfolio” section in thisprospectus as described above at the close of regu-lar trading on the New York Stock Exchange onthe business day before the date of this prospectus.On the first day we sell units we will compute theunit price as of the close of regular trading on theNew York Stock Exchange or the time the registra-tion statement filed with the Securities andExchange Commission becomes effective, if later.

OOrrggaanniizzaattiioonn CCoossttss.. During the initial offer-ing period, part of the value of the units repre-sents an amount that will pay the costs of creatingyour trust. These costs include the costs ofpreparing the registration statement and legaldocuments, a portfolio consultant’s security selec-tion fee (if any), federal and state registration fees,the initial fees and expenses of the trustee and theinitial audit. Your trust will sell securities toreimburse us for these costs at the end of the ini-tial offering period or after six months, if earlier.The value of your units will decline when yourtrust pays these costs.

UNDERSTANDING YOUR INVESTMENT

10 Understanding Your Investment

SSaalleess FFeeee.. The maximum sales fee is shownunder “Fees and Expenses” for your trust and is2.75% of the public offering price per unit at thetime of purchase.

You pay a fee in connection with purchasingunits. We refer to this fee as the “transactionalsales fee”. The transactional sales fee has both aninitial and a deferred component. The transac-tional sales fee equals 2.25% of the public offer-ing price per unit based on a $10 public offeringprice per unit. The percentage amount of thetransactional sales fee is based on the unit priceon your trust’s inception date. The transactionalsales fee equals the difference between the totalsales fee and the creation and development fee.As a result, the percentage and dollar amount ofthe transactional sales fee will vary as the publicoffering price per unit varies. The transactionalsales fee does not include the creation and devel-opment fee which is described under "Fees andExpenses" for your trust.

You pay the initial sales fee, if any, at thetime you buy units. The initial sales fee is thedifference between the total sales fee percentage(maximum of 2.75% of the public offering priceper unit) and the sum of the remaining fixeddollar deferred sales fee and the total fixed dollarcreation and development fee. The initial salesfee will be 0.00% of the public offering price perunit at a public offering price per unit of $10. Ifthe public offering price per unit exceeds $10,you will be charged an initial sales fee equal tothe difference between the total sales fee percent-age (maximum of 2.75% of the public offeringprice per unit) and the sum of the remainingfixed dollar deferred sales fee and total fixed dol-lar creation and development fee. The deferredsales fee is fixed at $0.225 per unit. Your trustpays the deferred sales fee in equal monthlyinstallments as described under “Fees and

Expenses” for your trust. If you redeem or sellyour units prior to collection of the totaldeferred sales fee, you will pay any remainingdeferred sales fee upon redemption or sale ofyour units.

Since the deferred sales fee and creation anddevelopment fee are fixed dollar amounts perunit, your trust must charge these amounts perunit regardless of any decrease in net asset value.As a result, if the public offering price per unitfalls to less than $10 (resulting in the maximumsales fee percentage being a dollar amount that isless than the combined fixed dollar amounts ofthe deferred sales fee and creation and develop-ment fee) your initial sales fee will be a creditequal to the amount by which these fixed dollarfees exceed the sales fee at the time you buy units.In such a situation, the value of securities per unitwould exceed the public offering price per unit bythe amount of the initial sales fee credit and thevalue of those securities will fluctuate, whichcould result in a benefit or detriment to unithold-ers that purchase units at that price. The initialsales fee credit is paid by the sponsor and is notpaid by the trust.

If you purchase units after the last deferredsales fee payment has been assessed, the secondarymarket sales fee is equal to 2.75% of the publicoffering price and does not include deferred pay-ments (i.e. unitholders who buy in the secondarymarket after collection of the deferred sales feesare not charged deferred sales fees).

MMiinniimmuumm PPuurrcchhaassee.. The minimum amountyou can purchase appears under “EssentialInformation” for your trust, but such amountsmay vary depending on your selling firm.

RReedduucciinngg YYoouurr SSaalleess FFeeee. We offer a varietyof ways for you to reduce the fee you pay. It is

Understanding Your Investment 11

your financial professional’s responsibility toalert us of any discount when you order units.Except as expressly provided herein, you maynot combine discounts. Since the deferred salesfee and the creation and development fee arefixed dollar amounts per unit, your trust mustcharge these fees per unit regardless of any dis-counts. However, if you are eligible to receive adiscount such that your total sales fee is less thanthe fixed dollar amounts of the deferred sales feeand the creation and development fee, we willcredit you the difference between your total salesfee and these fixed dollar fees at the time youbuy units.

Fee Accounts. Investors may purchase unitsthrough registered investment advisers, certifiedfinancial planners or registered broker-dealers whoin each case either charge investor accounts (“FeeAccounts”) periodic fees for brokerage services,financial planning, investment advisory or assetmanagement services, or provide such services inconnection with an investment account for whicha comprehensive “wrap fee” charge (“Wrap Fee”)is imposed. You should consult your financialadvisor to determine whether you can benefitfrom these accounts. To purchase units in theseFee Accounts, your financial advisor must pur-chase units designated with one of the FeeAccount CUSIP numbers, if available. Pleasecontact your financial advisor for more informa-tion. If units are purchased for a Fee Accountand the units are subject to a Wrap Fee in suchFee Account (i.e., the trust is “Wrap Fee Eligible”)then investors may be eligible to purchase units inthese Fee Accounts that are not subject to thetransactional sales fee but will be subject to thecreation and development fee that is retained bythe sponsor. For example, this table illustrates thesales fee you will pay as a percentage of the initial

$10 public offering price per unit (the percentagewill vary with the unit price).

Initial sales fee 0.00%Deferred sales fee 0.00%

Transactional sales fee 0.00%Creation and development fee 0.50%

Total sales fee 0.50%

This discount applies only during the initialoffering period. Certain Fee Account investorsmay be assessed transaction or other fees on thepurchase and/or redemption of units by their bro-ker-dealer or other processing organizations forproviding certain transaction or account activities.We reserve the right to limit or deny purchases ofunits in Fee Accounts by investors or selling firmswhose frequent trading activity is determined tobe detrimental to a trust.

Employees. We waive the transactional salesfee for purchases made by officers, directors andemployees (and immediate family members) of thesponsor and its affiliates. These purchases are notsubject to the transactional sales fee but will besubject to the creation and development fee. Wealso waive a portion of the sales fee for purchasesmade by officers, directors and employees (andimmediate family members) of selling firms.These purchases are made at the public offeringprice per unit less the applicable regular dealerconcession. Immediate family members for thepurposes of this section include your spouse, chil-dren (including step-children) under the age of 21living in the same household, and parents (includ-ing step-parents). These discounts apply to initialoffering period and secondary market purchases.All employee discounts are subject to the policiesof the related selling firm, including but not lim-ited to, householding policies or limitations.


Only officers, directors and employees (and theirimmediate family members) of selling firms thatallow such persons to participate in this employeediscount program are eligible for the discount.

Dividend Reinvestment Plan. We do notcharge any sales fee when you reinvest distribu-tions from your trust into additional units of yourtrust. This sales fee discount applies to initialoffering period and secondary market purchases.Since the deferred sales fee and the creation anddevelopment fee are fixed dollar amounts perunit, your trust must charge these fees per unitregardless of this discount. If you elect the distri-bution reinvestment plan, we will credit you withadditional units with a dollar value sufficient tocover the amount of any remaining deferred salesfee or creation and development fee that will becollected on such units at the time of reinvest-ment. The dollar value of these units will fluctu-ate over time.

RReettiirreemmeenntt AAccccoouunnttss.. Your portfolio may besuitable for purchase in tax-advantaged retirementaccounts. You should contact your financial pro-fessional about the accounts offered and any addi-tional fees imposed.

HHOOWW TTOO SSEELLLL YYOOUURR UUNNIITTSS

You can sell or redeem your units on anybusiness day the New York Stock Exchange isopen by contacting your financial professional.Unit prices are available daily on the Internet atwwwwww..AAAAMMlliivvee..ccoomm or through your financial pro-fessional. The sale and redemption price of unitsis equal to the net asset value per unit, providedthat you will not pay any remaining creation anddevelopment fee or organization costs if you sellor redeem units during the initial offering period.The sale and redemption price is sometimesreferred to as the “liquidation price.” You pay

any remaining deferred sales fee when you sell orredeem your units. Certain broker-dealers maycharge a transaction or other fee for processingunit redemption or sale requests.

SSeelllliinngg UUnniittss. We may maintain a secondarymarket for units. This means that if you want tosell your units, we may buy them at the currentnet asset value, provided that you will not pay anyremaining creation and development fee or organ-ization costs if you sell units during the initialoffering period. We may then resell the units toother investors at the public offering price orredeem them for the redemption price. Our sec-ondary market repurchase price is the same as theredemption price. Certain broker-dealers mightalso maintain a secondary market in units. Youshould contact your financial professional for cur-rent repurchase prices to determine the best priceavailable. We may discontinue our secondarymarket at any time without notice. Even if we donot make a market, you will be able to redeemyour units with the trustee on any business dayfor the current redemption price.

RReeddeeeemmiinngg UUnniittss. You may also redeem yourunits directly with the trustee, The Bank of NewYork Mellon, on any day the New York StockExchange is open. The redemption price that youwill receive for units is equal to the net asset valueper unit, provided that you will not pay anyremaining creation and development fee or organ-ization costs if you redeem units during the initialoffering period. You will pay any remainingdeferred sales fee at the time you redeem units.You will receive the net asset value for a particularday if the trustee receives your completedredemption request prior to the close of regulartrading on the New York Stock Exchange.Redemption requests received by authorizedfinancial professionals prior to the close of regulartrading on the New York Stock Exchange that are


properly transmitted to the trustee by the timedesignated by the trustee, are priced based on thedate of receipt. Redemption requests received bythe trustee after the close of regular trading on theNew York Stock Exchange, redemption requestsreceived by authorized financial professionals afterthat time or redemption requests received by suchpersons that are not transmitted to the trusteeuntil after the time designated by the trustee, arepriced based on the date of the next determinedredemption price provided they are received in atimely manner by the trustee on such date. It isthe responsibility of authorized financial profes-sionals to transmit redemption requests receivedby them to the trustee so they will be received ina timely manner. If your request is not receivedin a timely manner or is incomplete in any way,you will receive the next net asset value computedafter the trustee receives your completed request.

If you redeem your units, the trustee will gen-erally send you a payment for your units no laterthan seven days after it receives all necessary doc-umentation (this will usually only take three busi-ness days). The only time the trustee can delayyour payment is if the New York Stock Exchangeis closed (other than weekends or holidays), theSecurities and Exchange Commission determinesthat trading on that exchange is restricted or anemergency exists making sale or evaluation of thesecurities not reasonably practicable, and for anyother period that the Securities and ExchangeCommission permits.

You can request an in-kind distribution ofthe securities underlying your units if you tenderat least 2,500 units for redemption (or suchother amount as required by your financial pro-fessional’s firm). This option is generally avail-able only for securities traded and held in theUnited States. The trustee will make any in-kind distribution of securities by distributing

applicable securities in book entry form to theaccount of your financial professional atDepository Trust Company. You will receivewhole shares of the applicable securities and cashequal to any fractional shares. You may notrequest this option in the last 30 days of yourtrust’s life. We may discontinue this optionupon sixty days notice.

RRoolllloovveerr OOppttiioonn.. Your trust’s strategy may bea long-term investment strategy designed to befollowed on an annual basis. You may achievemore consistent long-term investment results byfollowing the strategy. As part of the strategy, wecurrently intend to offer a subsequent series ofyour trust for a rollover when the current trustterminates. When your trust terminates you willhave the option to (1) participate in a rolloverand have your units reinvested into a subsequenttrust series through a cash rollover as described inthis section, (2) receive an in-kind distribution ofsecurities or (3) receive a cash distribution.

If you elect to participate in a rollover, yourunits will be redeemed on your trust’s terminationdate. As the redemption proceeds become avail-able, the proceeds (including dividends) will beinvested in a new trust series, if available, at thepublic offering price for the new trust. Thetrustee will attempt to sell securities to satisfy theredemption as quickly as practicable on the termi-nation date. We do not anticipate that the saleperiod will be longer than one day, however, cer-tain factors could affect the ability to sell thesecurities and could impact the length of the saleperiod. The liquidity of any security depends onthe daily trading volume of the security and theamount available for redemption and reinvest-ment on any day.

We intend to make subsequent trust seriesavailable for sale at various times during the year.


Of course, we cannot guarantee that a subsequenttrust or sufficient units will be available or thatany subsequent trusts will offer the same invest-ment strategies or objectives as current trusts. Wecannot guarantee that a rollover will avoid anynegative market price consequences resulting fromtrading large volumes of securities. Market pricetrends may make it advantageous to sell or buysecurities more quickly or more slowly than per-mitted by the trust procedures. We may, in oursole discretion, modify a rollover or stop creatingunits of any future trust at any time regardless ofwhether all proceeds of unitholders have beenreinvested in a rollover. We may decide not tooffer a rollover option upon sixty days notice.Cash which has not been reinvested in a rolloverwill be distributed to unitholders shortly after thetermination date. Rollover participants mayreceive taxable dividends or realize taxable capitalgains which are reinvested in connection with arollover but may not be entitled to a deductionfor capital losses due to the “wash sale” tax rules.Due to the reinvestment in a subsequent trust, nocash will be distributed to pay any taxes. See“Understanding Your Investment—Taxes”.

DDIISSTTRRIIBBUUTTIIOONNSS

DDiissttrriibbuuttiioonnss.. Your trust generally pays dis-tributions of its net investment income alongwith any excess capital on each distribution dateto unitholders of record on the preceding recorddate. If your trust is a “grantor trust” for federaltax purposes, the trust will generally only make adistribution if the total cash held for distributionequals at least 0.1% of the trust’s net asset valueas determined under the trust agreement. Therecord and distribution dates and the tax statusare shown under “Essential Information” in the“Investment Summary” section of this prospectusfor your trust. In some cases, your trust mightpay a special distribution if it holds an excessive

amount of cash pending distribution. For exam-ple, this could happen as a result of a merger orsimilar transaction involving a company whosestock is in your portfolio. Your trust will alsogenerally make required distributions or distribu-tions to avoid imposition of tax at the end ofeach year if it is structured as a “regulated invest-ment company” for federal tax purposes. Theamount of your distributions will vary from timeto time as companies change their dividends andother income distributions or trust expenseschange.

When your trust receives dividends and otherincome distributions from a portfolio security, thetrustee credits such payments to the trust’saccounts. In an effort to make relatively regularincome distributions, if your trust is a “regulatedinvestment company” for tax purposes and makesmonthly distributions, your trust’s monthlyincome distribution is equal to one twelfth of theestimated net annual income distributions to bereceived by your trust after deduction of trustoperating expenses. Because a trust does notreceive income distributions from the portfoliosecurities at a constant rate throughout the year,the income distributions to unitholders from sucha trust may be more or less than the amount cred-ited to your trust accounts as of the record date.For the purpose of minimizing fluctuation inincome distributions, the trustee is authorized toadvance such amounts as may be necessary toprovide income distributions of approximatelyequal amounts. The trustee will be reimbursed,without interest, for any such advances fromavailable income received by a trust on the ensu-ing record date.

EEssttiimmaatteedd AAnnnnuuaall DDiissttrriibbuuttiioonnss.. The estimat-ed net annual distributions for your trust areshown under “Essential Information” section ofthis prospectus related to your trust. We generally


base the estimate of the income your trust mayreceive on annualizing the most recent ordinarydividend declared by an issuer (or adding themost recent interim and final dividends declaredfor certain foreign issuers) and/or on scheduledincome payments. However, dividend conven-tions for certain companies and/or certain coun-tries differ from those typically used in theUnited States and in certain instances, dividendspaid or declared over several years or other peri-ods were used to estimate annual distributions.Due to this and various other factors, actual divi-dends and other income distributions received byyour trust will most likely differ from the mostrecent annualized dividends or scheduled incomepayments. The actual net annual distributionsyou will receive will vary with changes in yourtrust’s fees and expenses, in dividends and otherincome distributions received and with the saleof securities.

RReeppoorrttss. The trustee or your financial profes-sional will make available to you a statementshowing income and other receipts of your trustfor each distribution. Each year the trustee willalso provide an annual report on your trust’sactivity and certain tax information. You canrequest copies of security evaluations to enableyou to complete your tax forms and auditedfinancial statements for your trust, if available.

IINNVVEESSTTMMEENNTT RRIISSKKSS

All investments involve risk. This sectiondescribes the main risks that can impact the valueof the securities in your portfolio. You shouldunderstand these risks before you invest. If thevalue of the securities falls, the value of your unitswill also fall. We cannot guarantee that your trustwill achieve its objective or that your investmentreturn will be positive over any period.

MMaarrkkeett RRiisskk.. Market risk is the risk that thevalue of the securities in your trust will fluctuate.This could cause the value of your units to fallbelow your original purchase price. Market valuefluctuates in response to various factors. Thesecan include changes in interest rates, inflation, thefinancial condition of a security’s issuer, percep-tions of the issuer, or ratings on a security. Eventhough we supervise your portfolio, you shouldremember that we do not manage your portfolio.Your trust will not sell a security solely because themarket value falls as is possible in a managed fund.

DDiivviiddeenndd PPaayymmeenntt RRiisskk.. Dividend paymentrisk is the risk that an issuer of a security isunwilling or unable to pay income on a security.Stocks represent ownership interests in the issuersand are not obligations of the issuers. Commonstockholders have a right to receive dividends onlyafter the company has provided for payment of itscreditors, bondholders and preferred stockholders.Common stocks do not assure dividend pay-ments. Dividends are paid only when declared byan issuer’s board of directors and the amount ofany dividend may vary over time.

SSeeccttoorr CCoonncceennttrraattiioonn RRiisskk.. Sector concentrationrisk is the risk that the value of your trust is moresusceptible to fluctuations based on factors thatimpact a particular sector because the portfolioconcentrates in companies within that sector. Aportfolio “concentrates” in a sector when securitiesin a particular sector make up 25% or more of theportfolio. Refer to the “Principal Risks” in the“Investment Summary” section of this prospectusfor your trust for sector concentrations.

Your trust may invest significantly in securi-ties issued by companies in the ffiinnaanncciiaallss sseeccttoorr.Any negative impact on this sector will have agreater impact on the value of units than on aportfolio diversified over several sectors. You


should understand the risks of this sector beforeyou invest. Companies in the financials sectormay include banks and their holding companies,finance companies, investment managers, broker-dealers, insurance and reinsurance companies andmortgage real estate investment trusts (“REITs”).Banks and their holding companies are especiallysubject to the adverse effects of economic reces-sion; volatile interest rates; portfolio concentra-tions in geographic markets and in commercialand residential real estate loans; and competitionfrom new entrants in their fields of business. Inaddition, banks and their holding companies areextensively regulated at both the federal and statelevel and may be adversely affected by increasedregulations. Banks face increased competitionfrom nontraditional lending sources as regulatorychanges permit new entrants to offer variousfinancial products. Technological advances allowthese nontraditional lending sources to cut over-head and permit the more efficient use of customerdata. Banks are already facing tremendous pres-sure from mutual funds, brokerage firms andother providers in the competition to furnishservices that were traditionally offered by banks.

Companies engaged in investment manage-ment and broker-dealer activities are subject tovolatility in their earnings and share prices thatoften exceeds the volatility of the equity market ingeneral. Adverse changes in the direction of thestock market, investor confidence, equity transac-tion volume, the level and direction of interestrates and the outlook of emerging markets couldadversely affect the financial stability, as well as thestock prices, of these companies. Additionally,competitive pressures, including increased compe-tition with new and existing competitors, theongoing commoditization of traditional businessesand the need for increased capital expenditures onnew technology could adversely impact the profitmargins of companies in the investment manage-

ment and brokerage industries. Companiesinvolved in investment management and broker-dealer activities are also subject to extensive regula-tion by government agencies and self-regulatoryorganizations, and changes in laws, regulations orrules, or in the interpretation of such laws, regula-tions and rules could adversely affect the stockprices of such companies.

Companies involved in the insurance, rein-surance and risk management industry under-write, sell or distribute property, casualty andbusiness insurance. Many factors affect insur-ance, reinsurance and risk management companyprofits, including interest rate movements, theimposition of premium rate caps, a misapprehen-sion of the risks involved in given underwritings,competition and pressure to compete globally,weather catastrophes or other disasters and theeffects of client mergers. Already extensively reg-ulated, insurance companies’ profits may beadversely affected by increased government regu-lations or tax law changes.

Mortgage REITs engage in financing realestate, purchasing or originating mortgages andmortgage-backed securities and earning incomefrom the interest on these investments. SuchREITs face risks similar to those of other financialfirms, such as changes in interest rates, generalmarket conditions and credit risk, in addition torisks associated with an investment in real estate.Risk associated with real estate investmentsinclude, among other factors, changes in generalU.S., global and local economic conditions,declines in real estate values, changes in the finan-cial health of tenants, overbuilding and increasedcompetition for tenants, oversupply of propertiesfor sale, changing demographics, changes in inter-est rates, tax rates and other operating expenses,changes in government regulations, faulty con-struction and the ongoing need for capital


improvements, regulatory and judicial require-ments including relating to liability for environ-mental hazards, changes in neighborhood valuesand buyer demand, and the unavailability of con-struction financing or mortgage loans at ratesacceptable to developers.

The financial services sector was adverselyaffected by global developments over the lastseveral years stemming from the financial crisisincluding recessionary conditions, deteriorationin the credit markets and recurring concernsover sovereign debt. These events led to consid-erable write-downs in the values of many assetsheld by financial services companies and a tight-ening of credit markets that was marked by ageneral unwillingness of many entities to extendcredit. These factors caused a significant need formany financial services companies to raise capi-tal to meet obligations and to satisfy regulatoryand contractual capital requirements. Manywell-established financial services companies wereforced to seek additional capital through issuancesof new preferred or common equity and certaincompanies were forced to agree to be acquired byother companies (or sell some or all of their assetsto other companies). In some cases governmentassistance, guarantees or direct participation ininvestments or acquisitions were necessary tofacilitate these transactions. In addition, concernsregarding these issues and their potential negativeimpact to the U.S. and global economies resultedin extreme volatility in securities prices and uncer-tain market conditions.

In response to these issues, governmentauthorities in the U.S. and other countries haveinitiated and may continue to engage in adminis-trative and legislative action, including the Dodd-Frank Wall Street Reform and ConsumerProtection Act and resulting rulemaking. Thesegovernment actions include, but are not limited to,

restrictions on investment activities; increased over-sight, regulation and involvement in financial serv-ices company practices; adjustments to capitalrequirements; the acquisition of interests in and theextension of credit to private entities; and increasedinvestigation efforts into the actions of companiesand individuals in the financial service industry.No one can predict any action that might be takenor the effect any action or inaction will have. It ispossible that any actions taken by governmentauthorities will not address or help improve thestate of these difficulties as intended. No one canpredict the impact that these difficulties will haveon the economy, generally or financial servicescompanies. These difficulties and correspondinggovernment action or inaction may have far reach-ing consequences and your investment may beadversely affected by such developments.

Your trust may invest significantly in securi-ties of companies in the iinnffoorrmmaattiioonn tteecchhnnoollooggyysector. Technology companies are generally sub-ject to the risks of rapidly changing technologies;short product life cycles; fierce competition;aggressive pricing; frequent introduction of newor enhanced products; the loss of patent, copy-right and trademark protections; cyclical marketpatterns; evolving industry standards; and fre-quent new product introductions. Technologycompanies may be smaller and less experiencedcompanies, with limited product lines, markets orfinancial resources. Technology company stockshave experienced extreme price and volume fluc-tuations that are often unrelated to their operat-ing performance, and have lately experienced sig-nificant market declines in their share values.Also, the stocks of many internet companies haveexceptionally high price-to-earnings ratios withlittle or no earnings histories.

RReeaall EEssttaattee IInnvveessttmmeenntt TTrruussttss.. Your trust mayinvest in securities issued by real estate investment


trusts (“REITs”). REITs may be exposed to therisks associated with the ownership of real estatewhich include, among other factors, changes ingeneral U.S., global and local economic condi-tions, declines in real estate values, changes in thefinancial health of tenants, overbuilding andincreased competition for tenants, oversupply ofproperties for sale, changing demographics,changes in interest rates, tax rates and other oper-ating expenses, changes in government regula-tions, faulty construction and the ongoing needfor capital improvements, regulatory and judicialrequirements including relating to liability forenvironmental hazards, changes in neighborhoodvalues and buyer demand, and the unavailabilityof construction financing or mortgage loans atrates acceptable to developers.

Many factors can have an adverse impact onthe performance of a REIT, including its cashavailable for distribution, the credit quality ofthe REIT or the real estate industry generally.The success of a REIT depends on various fac-tors, including the occupancy and rent levels,appreciation of the underlying property and theability to raise rents on those properties.Economic recession, overbuilding, tax lawchanges, higher interest rates or excessive specu-lation can all negatively impact REITs, theirfuture earnings and share prices. Variations inrental income and space availability and vacancyrates in terms of supply and demand are addi-tional factors affecting real estate generally andREITs in particular. Properties owned by aREIT may not be adequately insured against cer-tain losses and may be subject to significantenvironmental liabilities, including remediationcosts. You should also be aware that REITs maynot be diversified and are subject to the risks offinancing projects. The real estate industry maybe cyclical, and, if REIT securities are acquiredat or near the top of the cycle, there is increased

risk of a decline in value of the REIT securities.At various points in time, demand for certaintypes of real estate may inflate the value of realestate. This may increase the risk of a substantialdecline in the value of such real estate andincrease the risk of a decline in the value of thesecurities. REITs are also subject to defaults byborrowers and the market’s perception of theREIT industry generally. Because of their struc-ture, and a current legal requirement that theydistribute at least 90% of their taxable income toshareholders annually, REITs require frequentamounts of new funding, through both borrow-ing money and issuing stock. Thus, REITs his-torically have frequently issued substantialamounts of new equity shares (or equivalents) topurchase or build new properties. This mayadversely affect REIT equity share market prices.Both existing and new share issuances may havean adverse effect on these prices in the future,especially if REITs issue stock when real estateprices are relatively high and stock prices are rel-atively low.

Mortgage REITs engage in financing realestate, purchasing or originating mortgages andmortgage-backed securities and earning incomefrom the interest on these investments. SuchREITs face risks similar to those of other financialfirms, such as changes in interest rates, generalmarket conditions and credit risk, in addition torisks associated with an investment in real estate.

FFoorreeiiggnn IIssssuueerr RRiisskk.. An investment in securi-ties of foreign issuers involves certain risks that aredifferent in some respects from an investment insecurities of domestic issuers. These include risksassociated with future political and economicdevelopments, international trade conditions, for-eign withholding taxes, liquidity concerns, curren-cy fluctuations, volatility, restrictions on foreigninvestments and exchange of securities, potential


for expropriation of assets, confiscatory taxation,difficulty in obtaining or enforcing a court judg-ment, potential inability to collect when a compa-ny goes bankrupt and economic, political orsocial instability. Moreover, individual foreigneconomies may differ favorably or unfavorablyfrom the U.S. economy for reasons including dif-ferences in growth of gross domestic product,rates of inflation, capital reinvestment, resources,self-sufficiency and balance of payments positions.There may be less publicly available informationabout a foreign issuer than is available from adomestic issuer as a result of different accounting,auditing and financial reporting standards. Someforeign markets are less liquid than U.S. marketswhich could cause securities to be bought at ahigher price or sold at a lower price than wouldbe the case in a highly liquid market.

Securities of certain foreign issuers may bedenominated or quoted in currencies other thanthe U.S. dollar. Foreign issuers also make pay-ments and conduct business in foreign currencies.Many foreign currencies have fluctuated widely invalue against the U.S. dollar for various economicand political reasons. Changes in foreign curren-cy exchange rates may affect the value of foreignsecurities and income payments. Generally, whenthe U.S. dollar rises in value against a foreign cur-rency, a security denominated in that currencyloses value because the currency is worth fewerU.S. dollars. Conversely, when the U.S. dollardecreases in value against a foreign currency, asecurity denominated in that currency gains valuebecause the currency is worth more U.S. dollars.The U.S. dollar value of income payments on for-eign securities will fluctuate similarly withchanges in foreign currency values.

Certain foreign securities may be held in theform of American Depositary Receipts (“ADRs”),Global Depositary Receipts (“GDRs”), or other

similar receipts. Depositary receipts representreceipts for foreign securities deposited with acustodian (which may include the trustee of yourtrust). Depository receipts may not be denomi-nated in the same currency as the securities intowhich they may be converted. ADRs typicallytrade in the U.S. in U.S. dollars and are regis-tered with the Securities and ExchangeCommission. GDRs are similar to ADRs, butGDRs typically trade outside of the U.S. andoutside of the country of the issuer in the curren-cy of the country where the GDR trades.Depositary receipts generally involve most of thesame types of risks as foreign securities helddirectly but typically also involve additionalexpenses associated with the cost of the custodi-an’s services. Some depositary receipts may expe-rience less liquidity than the underlying securitiestraded in their home market. Certain depositaryreceipts are unsponsored (i.e. issued without theparticipation or involvement of the issuer of theunderlying security). The issuers of unsponsoreddepositary receipts are not obligated to discloseinformation that may be considered material inthe U.S. Therefore, there may be less informa-tion available regarding these issuers which canimpact the relationship between certain informa-tion impacting a security and the market value ofthe depositary receipts.

SSmmaallll aanndd MMiidd--SSiizzee CCoommppaanniieess.. Your trustmay invest in securities issued by small and mid-size companies. The share prices of these com-panies are often more volatile than those of larg-er companies as a result of several factors com-mon to many such issuers, including limitedtrading volumes, products or financial resources,management inexperience and less publicly avail-able information.

LLeeggiissllaattiioonn//LLiittiiggaattiioonn.. From time to time,various legislative initiatives are proposed in the


United States and abroad which may have a nega-tive impact on certain of the companies represent-ed in the trust. In addition, litigation regardingany of the issuers of the securities or of the indus-tries represented by these issuers may negativelyimpact the share prices of these securities. Noone can predict what impact any pending orthreatened litigation will have on the share pricesof the securities.

LLiiqquuiiddiittyy RRiisskk.. Liquidity risk is the risk thatthe value of a security will fall if trading in thesecurity is limited or absent. No one can guar-antee that a liquid trading market will exist forany security.

NNoo FFDDIICC GGuuaarraanntteeee.. An investment inyour trust is not a deposit of any bank and is notinsured or guaranteed by the Federal DepositInsurance Corporation or any other governmentagency.

HHOOWW TTHHEE TTRRUUSSTT WWOORRKKSS

YYoouurr TTrruusstt.. Your trust is a unit investmenttrust registered under the Investment CompanyAct of 1940. We created your trust under a trustagreement between Advisors Asset Management,Inc. (as depositor/sponsor, evaluator and supervi-sor) and The Bank of New York Mellon (astrustee). To create your trust, we deposited secu-rities with the trustee (or contracts to purchasesecurities along with an irrevocable letter of creditor other consideration to pay for the securities).In exchange, the trustee delivered units of yourtrust to us. Each unit represents an undividedinterest in the assets of your trust. These unitsremain outstanding until redeemed or until yourtrust terminates. At the close of the New YorkStock Exchange on your trust’s inception date, thenumber of units may be adjusted so that the pub-lic offering price per unit equals $10. The num-

ber of units and fractional interest of each unit inyour trust will increase or decrease to the extentof any adjustment.

CChhaannggiinngg YYoouurr PPoorrttffoolliioo.. Your trust is not amanaged fund. Unlike a managed fund, wedesigned your portfolio to remain relatively fixed.Your trust will generally buy and sell securities:

• to pay expenses,

• to issue additional units or redeem units,

• to take actions in response to certain cor-porate actions and other events impactingportfolio securities,

• in limited circumstances to protect the trust,

• to make required distributions or avoidimposition of taxes on the trust, or

• as permitted by the trust agreement.

When your trust sells securities, the compo-sition and diversification of the securities in theportfolio may be altered. If a public tender offerhas been made for a security or a merger, acqui-sition or similar transaction has been announcedaffecting a security, the sponsor may direct thetrustee to sell the security or accept a tenderoffer if the supervisor determines that the actionis in the best interest of unitholders. The trusteewill distribute any available cash proceeds tounitholders.

If an offer by the issuer of any of the port-folio securities or any other party is made toissue new securities, or to exchange securities,for trust portfolio securities, the trustee willreject the offer unless your trust is a “regulatedinvestment company” for tax purposes (see“Essential Information—Tax Structure” in the“Investment Summary” section for your trust in


this prospectus). If your trust is a “regulatedinvestment company” for tax purposes and anoffer by the issuer of any of the portfolio securi-ties or any other party is made to issue newsecurities, or to exchange securities, for trustportfolio securities, the trustee may either votefor or against, or accept or reject, any offer fornew or exchanged securities or property inexchange for a trust portfolio security at thedirection of the sponsor.

If any issuance, exchange or substitution ofnew or exchanged securities or property inexchange for a trust portfolio security occurs(regardless of any action or rejection by a trust),any securities and/or property received will bedeposited into the trust and will be promptly soldby the trustee pursuant to the sponsor’s direction,unless the sponsor advises the trustee to keep suchsecurities or property.

If any contract for the purchase of securitiesfails, the sponsor will refund the cash and sales feeattributable to the failed contract to unitholderson or before the next distribution date unless sub-stantially all of the moneys held to cover the pur-chase are reinvested in substitute securities inaccordance with the trust agreement. If yourtrust is a “regulated investment company” for taxpurposes, the sponsor may direct the reinvestmentof security sale proceeds if the sale is the directresult of serious adverse credit factors which, inthe opinion of the supervisor, would make reten-tion of the securities detrimental to the trust. Insuch a case, the sponsor may, but is not obligatedto, direct the reinvestment of sale proceeds in anyother securities that meet the criteria for inclusionin the trust on the trust’s inception date. Thesponsor may also instruct the trustee to takeaction necessary to ensure that a portfolio contin-ues to satisfy the qualifications of a “regulatedinvestment company” for tax purposes. Your

trust will not participate in rights offerings ofclosed-end funds, if any.

We will increase the size of your trust as wesell units. When we create additional units, wewill seek to replicate the existing portfolio to theextent practicable. When your trust buys securi-ties, it may pay brokerage or other acquisitionfees. You could experience a dilution of yourinvestment because of these fees and fluctuationsin security prices between the time we create unitsand the time your trust buys the securities.When your trust buys or sells securities, we maydirect that it place orders with and pay brokeragecommissions to brokers that sell units or are affili-ated with us, your trust or the trustee.

Pursuant to an exemptive order, your trustmay be able to purchase securities from othertrusts that we sponsor when we create additionalunits. Your trust may also be able to sell securi-ties to other trusts that we sponsor to satisfy unitredemption, pay deferred sales charges or expens-es, in connection with periodic tax compliance orin connection with the termination of your trust.The exemption may enable each trust to elimi-nate commission costs on these transactions.The price for those securities will be the closingprice on the sale date on the exchange where thesecurities are principally traded as certified by usto the trustee.

AAmmeennddiinngg tthhee TTrruusstt AAggrreeeemmeenntt.. The sponsorand the trustee can change the trust agreementwithout your consent to correct any provisionthat may be defective or to make other provisionsthat will not materially adversely affect your inter-est (as determined by the sponsor and thetrustee). We cannot change this agreement toreduce your interest in your trust without yourconsent. Investors owning two-thirds of the unitsin your trust may vote to change this agreement.


TTeerrmmiinnaattiioonn ooff YYoouurr TTrruusstt.. Your trust willterminate on the termination date set forth under“Essential Information” in the “InvestmentSummary” section of this prospectus for yourtrust. The trustee may terminate your trust earlyif the value of the trust is less than 40% of theoriginal value of the securities in your trust at thetime of deposit. At this size, the expenses of yourtrust may create an undue burden on your invest-ment. Investors owning two-thirds of the unitsin your trust may also vote to terminate the trustearly. The trustee will liquidate your trust in theevent that a sufficient number of units not yetsold to the public are tendered for redemption sothat the net worth of your trust would bereduced to less than 40% of the value of thesecurities at the time they were deposited in thetrust. If this happens, we will refund any salescharge that you paid.

You will receive your final distribution withina reasonable time following liquidation of all thesecurities after deducting final expenses. Your ter-mination distribution may be less than the priceyou originally paid for your units.

TThhee SSppoonnssoorr.. The sponsor of your trust isAdvisors Asset Management, Inc. We are a bro-ker-dealer specializing in providing trading andsupport services to broker-dealers, registered rep-resentatives, investment advisers and other finan-cial professionals. Our headquarters are located at18925 Base Camp Road, Monument, Colorado80132. You can contact our unit investment trustdivision at 8100 East 22nd Street North, Building800, Suite 102, Wichita, Kansas 67226 or byusing the contacts listed on the back cover of thisprospectus. AAM is a registered broker-dealerand investment adviser, a member of theFinancial Industry Regulatory Authority, Inc.(FINRA) and Securities Investor ProtectionCorporation (SIPC) and a registrant of the

Municipal Securities Rulemaking Board (MSRB).If we fail to or cannot perform our duties as spon-sor or become bankrupt, the trustee may replaceus, continue to operate your trust without a spon-sor, or terminate your trust.

We and your trust have adopted a code ofethics requiring our employees who have access toinformation on trust transactions to report per-sonal securities transactions. The purpose of thecode is to avoid potential conflicts of interest andto prevent fraud, deception or misconduct withrespect to your trust.

The sponsor or an affiliate may use the list ofsecurities in your trust in its independent capacity(which may include acting as an investmentadviser or broker-dealer) and distribute this infor-mation to various individuals and entities. Thesponsor or an affiliate may recommend or effecttransactions in the securities. This may also havean impact on the price your trust pays for thesecurities and the price received upon unitredemption or trust termination. The sponsormay act as agent or principal in connection withthe purchase and sale of securities, includingthose held by your trust, and may act as a special-ist market maker in the securities. The sponsormay also issue reports and make recommenda-tions on the securities in your trust. The sponsoror an affiliate may have participated in a publicoffering of one or more of the securities in yourtrust. The sponsor, an affiliate or their employeesmay have a long or short position in these securi-ties or related securities. An officer, director oremployee of the sponsor or an affiliate may be anofficer or director for the issuers of the securities.

TThhee TTrruusstteeee.. The Bank of New YorkMellon is the trustee of your trust with its prin-cipal unit investment trust division offices locat-ed at 2 Hanson Place, 12th Floor, Brooklyn,



New York 11217. You can contact the trusteeby calling the telephone number on the backcover of this prospectus or by writing to its unitinvestment trust office. We may remove andreplace the trustee in some cases without yourconsent. The trustee may also resign by notify-ing us and investors.

HHooww WWee DDiissttrriibbuuttee UUnniittss.. We sell units tothe public through broker-dealers and otherfirms. These distribution firms each receive partof the sales fee when they sell units. During theinitial offering period, the broker-dealer conces-sion or agency commission for broker-dealers andother firms is 2.00% of the public offering priceper unit at the time of the transaction. The bro-ker-dealer concession or agency commission is65% of the sales fee for secondary market sales.No broker-dealer concession or agency commis-sion is paid to broker-dealers, investment advisersor other selling firms in connection with unitsales in Fee Accounts subject to a Wrap Fee.

Broker-dealers and other firms that sell unitsof certain unit investment trusts for which AAMacts as sponsor are eligible to receive additionalcompensation for volume sales. The sponsoroffers two separate volume concession structuresfor certain trusts that are referred to as “VolumeConcession A” and “Volume Concession B.”The trusts offered in this prospectus are VolumeConcession A trusts. Broker-dealers and otherfirms that sell units of any Volume Concession Atrust are eligible to receive the additional com-pensation described below. Such payments willbe in addition to the regular concessions paid tofirms as set forth in the applicable trust’sprospectus.

For unit sales prior to July 1, 2017, the addi-tional concession is based on total initial offeringperiod sales of all Volume Concession A trusts

during a calendar quarter as set forth in the fol-lowing table:

Initial Offering Period Sales VolumeDuring Calendar Quarter Concession

Less than $10,000,000 0.000%$10,000,000 but less than $25,000,000 0.050$25,000,000 but less than $50,000,000 0.100$50,000,000 but less than $75,000,000 0.110$75,000,000 but less than $100,000,000 0.120$100,000,000 but less than $250,000,000 0.125$250,000,000 but less than $500,000,000 0.135$500,000,000 or more 0.150

We will pay these amounts out of our ownassets within a reasonable time following each cal-endar quarter. Broker-dealer firms will not receiveadditional compensation unless they sell at least$10.0 million of units of Volume Concession Atrusts during a calendar quarter. For example, if afirm sells $9.5 million of units of VolumeConcession A trusts in the initial offering periodduring a calendar quarter, the firm will not receiveany additional compensation with respect to suchtrusts. Once a firm reaches a particular breakpointduring a quarter, the firm will receive the statedvolume concession on all initial offering periodsales of Volume Concession A trusts during theapplicable quarter. For example, if a firm sells$12.5 million of units of Volume Concession Atrusts in the initial offering period during a calen-dar quarter, the firm will receive additional com-pensation of 0.05% of $12.5 million and if a firmsells $27.0 million of units of Volume ConcessionA trusts in the initial offering period during a cal-endar quarter, the firm will receive additionalcompensation of 0.100% of $27.0 million.

For unit sales on or after July 1, 2017, theadditional concession for sales in a calendar monthis based on total initial offering period sales of allVolume Concession A trusts during the 12-month


period through the end of the preceding calendarmonth as set forth in the following table:

Initial Offering Period Sales Volume In Preceding 12 Months Concession

$25,000,000 but less than $100,000,000 0.035%$100,000,000 but less than $150,000,000 0.050$150,000,000 but less than $250,000,000 0.075$250,000,000 but less than $1,000,000,000 0.100$1,000,000,000 but less than $5,000,000,000 0.125$5,000,000,000 but less than $7,500,000,000 0.150$7,500,000,000 or more 0.175

We will pay these amounts out of our ownassets within a reasonable time following each cal-endar month.

The volume concessions will be paid on unitsof all Volume Concession A trusts sold in the ini-tial offering period, except as described below.For a trust to be eligible for this additionalVolume Concession A compensation, the trust’sprospectus must include disclosure related to theadditional Volume Concession A compensation; atrust is not eligible for additional VolumeConcession A compensation if the prospectus forsuch trust does not include disclosure related tothe additional Volume Concession A compensa-tion. In addition, dealer firms will not receivevolume concessions on the sale of units which arenot subject to a transactional sales charge.However, such sales will be included in determin-ing whether a firm has met the sales level break-points for volume concessions subject to the poli-cies of the related selling firm. Secondary marketsales of all unit trusts are excluded for purposes ofthese volume concessions.

Any sales fee discount is borne by the broker-dealer or selling firm out of the broker-dealerconcession or agency commission. We reserve theright to change the amount of compensation paid

to selling firms from time to time. Some broker-dealers and other selling firms may limit the com-pensation they or their representatives receive inconnection with unit sales. As a result, certainbroker-dealers and other selling firms may waiveor refuse payment of all or a portion of the regu-lar concession or agency commission and/or vol-ume concession described above and instruct thesponsor to retain such amounts rather than pay orallow the amounts to such firm.

We currently may provide, at our ownexpense and out of our own profits, additionalcompensation and benefits to broker-dealers whosell units of your trust and our other products.This compensation is intended to result in addi-tional sales of our products and/or compensatebroker-dealers and financial advisors for past sales.A number of factors are considered in determin-ing whether to pay these additional amounts.Such factors may include, but are not limited to,the level or type of services provided by the inter-mediary, the level or expected level of sales of ourproducts by the intermediary or its agents, theplacing of our products on a preferred or recom-mended product list and access to an intermedi-ary’s personnel. We may make these payments formarketing, promotional or related expenses,including, but not limited to, expenses of enter-taining retail customers and financial advisors,advertising, sponsorship of events or seminars,obtaining information about the breakdown ofunit sales among an intermediary’s representativesor offices, obtaining shelf space in broker-dealerfirms and similar activities designed to promotethe sale of our products. We make such pay-ments to a substantial majority of intermediariesthat sell our products. We may also make certainpayments to, or on behalf of, intermediaries todefray a portion of their costs incurred for thepurpose of facilitating unit sales, such as the costsof developing or purchasing trading systems to

process unit trades. Payments of such additionalcompensation described in this paragraph and thevolume concessions described above, some ofwhich may be characterized as “revenue sharing,”may create an incentive for financial intermedi-aries and their agents to sell or recommend ourproducts, including your trust, over other prod-ucts. These arrangements will not change theprice you pay for your units.

We generally register units for sale in variousstates in the U.S. We do not register units forsale in any foreign country. This prospectus doesnot constitute an offer of units in any state orcountry where units cannot be offered or soldlawfully. We may reject any order for units inwhole or in part.

We may gain or lose money when we holdunits in the primary or secondary market due tofluctuations in unit prices. The gain or loss isequal to the difference between the price we payfor units and the price at which we sell or redeemthem. We may also gain or lose money when wedeposit securities to create units. The amount ofour profit or loss on the initial deposit of securi-ties into your trust is shown in the “Notes toPortfolio” section for your trust.

TTAAXXEESS——RREEGGUULLAATTEEDD IINNVVEESSTTMMEENNTT CCOOMMPPAANNIIEESS

This section summarizes some of the mainU.S. federal income tax consequences of owningunits of your trust if your trust intends to qualifyas a “regulated investment company” under feder-al tax laws. The tax structure of your trust is setforth under “Essential Information—TaxStructure” in the “Investment Summary” sectionfor your trust in this prospectus.

This section is current as of the date of thisprospectus. Tax laws and interpretations change

frequently, and these summaries do not describeall of the tax consequences to all taxpayers. Forexample, these summaries generally do notdescribe your situation if you are a corporation, anon-U.S. person, a broker/dealer, or otherinvestor with special circumstances. In addition,this section does not describe your state, local orforeign tax consequences.

This federal income tax summary is based inpart on the advice of counsel to the sponsor. TheInternal Revenue Service could disagree with anyconclusions set forth in this section. In addition,our counsel was not asked to review, and has notreached a conclusion with respect to the federalincome tax treatment of the assets to be depositedin your trust. This may not be sufficient for youto use for the purpose of avoiding penalties underfederal tax law.

As with any investment, you should seekadvice based on your individual circumstancesfrom your own tax advisor.

TTrruusstt SSttaattuuss.. Your trust intends to qualify asa “regulated investment company” under the fed-eral tax laws. If your trust qualifies as a regulatedinvestment company and distributes its income asrequired by the tax law, your trust generally willnot pay federal income taxes. If your trust investsin a partnership, an adverse federal income taxaudit of that partnership could result in the trustbeing required to pay federal income tax or pay adeficiency dividend (without having receivedadditional cash).

DDiissttrriibbuuttiioonnss.. Trust distributions are general-ly taxable. After the end of each year, you willreceive a tax statement that separates your trust’sdistributions into three categories, ordinaryincome distributions, capital gain dividends andreturn of capital. Ordinary income distributions


are generally taxed at your ordinary tax rate, how-ever, as further discussed below, certain ordinaryincome distributions received from your trustmay be taxed at the capital gains tax rates.Generally, you will treat all capital gain dividendsas long-term capital gains regardless of how longyou have owned your units. To determine youractual tax liability for your capital gain dividends,you must calculate your total net capital gain orloss for the tax year after considering all of yourother taxable transactions, as described below. Inaddition, your trust may make distributions thatrepresent a return of capital for tax purposes andthus will generally not be taxable to you. Areturn of capital, although not initially taxable toyou, will result in a reduction in the basis in yourunits and subsequently result in higher levels oftaxable capital gains in the future. In addition, ifthe non-dividend distribution exceeds your basisin your units, you will have long-term or short-term gain depending upon your holding period.The tax status of your distributions from yourtrust is not affected by whether you reinvest yourdistributions in additional units or receive themin cash. The income from your trust that youmust take into account for federal income taxpurposes is not reduced by amounts used to pay adeferred sales fee, if any. The tax laws mayrequire you to treat distributions made to you inJanuary as if you had received them on December31 of the previous year. Income from your trustmay also be subject to a 3.8 percent “medicaretax.” This tax generally applies to your net invest-ment income if your adjusted gross incomeexceeds certain threshold amounts, which are$250,000 in the case of married coupl