Unit Investment Trusts (UITs)

In 2013, Sabrient began creating strategies for stock portfolios; we partnered with First Trust Portfolios, LLC to package and market them as Unit Investment Trusts (UITs).

Current UIT portfolios include the Baker's Dozen, Dividend, Small Cap Growth and Forward Looking Value. You can view current portfolios and performance at First Trust Portfolios.  Enter the word Sabrient in the search bar to access links to the portfolios.

The UIT Process

Sabrient's stock selection process for UITs begins with Sabrient’s quantitative research methodology. For each UIT theme, a theme-specific strategy has been developed by the Sabrient research team..

Two critical elements for all strategies are (1) the Sabrient Earnings Quality Rank (EQR), a proprietary forensic accounting factor that measures the aggressiveness of a company's accounting practices and (2) the Sabrient Growth Quality Rank (GQR), a proprietary factor that measures the consistency and reliability of a company’s sales and earnings history and meeting forward expectations.

Companies in the bottom quintile of the both EQR and GQR rankings are eliminated from consideration. This helps us avoid the risk of companies that could be overstating reported growth or are less likely to achieve their forward earnings guidance.

The final step in the process is an in-depth fundamental review to screen out any candidates that might not have been eliminated by the EQR model but that nevertheless exhibit unique risks related to earnings quality, corporate governance, or insider trading.