Date: 7/11/2012
Source: Incapital
Author: Incapital

Incapital Announces Licensing Agreement with Goldman Sachs Securities Division to Launch New Unit Trust Offerings

Balance Sheet Strength and High Quality Select Portfolios Comprised of 50 Companies in the S&P 500 with Strong Balance Sheet Indicators

Incapital LLC, a leading underwriter and distributor of fixed income securities and a growing range of financial products, has announced that it has entered into an agreement with Goldman Sachs’ Securities Division to license basket selection methodologies used to create quantitatively-driven Unit Trust offerings.

The first such offering is the Balance Sheet Strength Portfolio and is based on a systematic and objective selection methodology developed by Goldman Sachs which focuses on the companies within the S&P 500. The methodology uses a modified Altman Z-score formula to identify the companies with the highest scores based on the weighted sum of five financial ratios: working capital to assets, retained earnings to assets, operating income to assets, leverage ratio and sales to assets.

The second offering, the High Quality Select Portfolio, approximates the Goldman Sachs Quality Select Basket and is similar to the Balance Sheet Strength portfolio. However in addition to balance sheet strength, the stocks included are allocated across ten sectors of the S&P 500 and are quantitatively scored and screened for various other factors, including: stable sales growth, low downside earnings variability, strong return on equity and low stock price drawdown risk. The portfolio is designed to include equally weighted securities that have the highest quality scores from each sector, and is allocated so that the basket is sector neutral.

“Our agreement with Goldman Sachs underscores our commitment to work with the leading global firms in the industry to provide financial professionals with quality products,” said John Browning, Director of Incapital’s Unit Trust Division. “The robustness of the underlying methodology coupled with the flexibility and transparency of a unit trust, we believe, makes both portfolios extremely appealing products.”

Incapital is the only Unit Trust provider offering products driven by Goldman Sachs selection methodologies. The licensing agreement follows Incapital’s recent announcements of offerings in collaboration with Zacks Investment Research and Morningstar Investment Services, Inc.

Incapital Unit Trust portfolios are professionally-selected fixed baskets of securities that allow investors to diversify market risk without the large capital commitment, time and expertise it may require to achieve this type of diversification on their own. They have a low minimum purchase, daily liquidity, and a predetermined investment life which gives investors the opportunity to review and evaluate their long-term investment approach.

More information about Incapital Unit Trusts is available at www.incapital.com/Unit_Trusts.



The investment products discussed herein contain unique risks, terms, conditions and fees specific to each offering. Depending upon the particular investment product, risks may include, but are not limited to, issuer credit risk, market risk, the performance of an underlying derivative financial instrument, formula or strategy, and foreign currency risks. Return of principal may not be guaranteed and may be subject to credit risk of the issuer or the performance of a derivative instrument, formula or strategy. Additionally, unless otherwise specified in the particular offering documentation, the products discussed herein are not FDIC insured, may lose value, and are not bank guaranteed. You should not purchase an investment product or make an investment recommendation to a customer until you have read the specific offering documentation and understand the specific investment terms, conditions and risks of such investment. A copy of the official statement and other offering information may be found at the SEC’s EDGAR as related to securities offerings. Incapital will also provide copies of the relevant offering statements upon request. Incapital does not offer or sell investment products to individual investors. Investors should consult with their financial professional prior to investing any money in these or other products and carefully review the disclosure statement or other offering documents.

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