Factor Based Thematic Investing

An investment strategy is a basket of stocks created to represent an investment theme. An investment strategy can be a goal or factor based thematic strategy. You can choose from one of our pre-optimised strategies or you can design your own strategy.

Thematic investing allows you to invest in long term trends and ideas that are transforming the world and creating a wealth of opportunities. Our algorithm sifts through up to 2,500 stocks across 20 countries and 400 ETFs across multiple asset classes to curate investment portfolios that stand to gain from a particular theme or idea. Through these portfolios, we provide you opportunities to ride on these real-world trends to grow your wealth. Invest in themes based on your goals and factors.

Factor based investing is an investment style that involves selecting stocks with attributes that are associated with higher returns. For example, low Price-to-Earnings, low Price-to-Book Value or high Earnings Per Share stocks.

Our factor based investing service allows you to select one of our thematic portfolios and make it yours by overlaying various factors. You can adopt our pre-selected factors or create your own combinations.

The Advisory service advises you on your investments using our proprietary algorithm, a wide array of fundamental factors and big data analytics. You can adopt our pre-optimised strategies, modify them or design it entirely on your own. The Analytics service lets you build your own strategy using our stocks and funds screener; and big data analytics. Both services are available in Goal based and Factor based thematic investing.

You invest in equities, selected from 2,500 stocks across 20 different countries.

Yes, you can. To do this when you use our algorithm, log in to your account, click “Overview” > click “My Portfolio” > click on one of your strategies and then “View Strategy Details” > click “Edit Strategy” > click “Investment Universe”. From there, you will be able to add and drop stocks from your strategy. Alternatively, in build your own strategy setting, you can select the stocks and assign the value of your position.

We adopt a systematic approach to portfolio construction, comprising six steps:

  1.  Set your investment style;
  2. Choose your investment universe from a few themes or define it yourself;
  3. Select the tilt in your portfolio – whether it is dividends, value or growth based;
  4. Set your risk limits;
  5. Determine the transaction costs; and
  6. Optimise your portfolio value, subject to the different risks and transaction cost constraints.

To understand our methodology more, please refer to our methodology white paper.

Yes, they do. The values of securities are subject to the fluctuation of the stock market, which may cause the weights of securities to drift away from the optimal weights. It is therefore important to rebalance strategies from time to time. Professional strategies are updated or rebalanced on a regular basis.

Yes, we do. If you have an idea about a strategy and want to design one yourself, go to ‘Strategies‘ and click ‘Design Your Own Strategies‘. You can use our algorithm to help you build or you can use our analytics to construct.

You cannot include that stock in an account linked to a factor based thematic strategy as we would automatically liquidate that stock if you do not specify so. It would be easier that you open a separate brokerage account that is not linked to Crea8 to hold that stock.

You can add any strategy – including strategies you built yourself – to a watchlist. A watchlist makes it easy to track performance of your favourite strategies.

You can access your watchlist by going to ‘Strategies‘ and clicking “Watchlist”.

Factor Based Thematic Investing

You are at the right place if you want to:

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Attributes of a stock that are identified as a potential drivers of returns.

Factors affect the performance of a stock. A basketball coach may consider factors such as “height” and “speed” when selecting players. Similarly, an investor might consider “reversion” and “value” as factors for a stock.

A systematic investment approach to evaluate firms based on certain attributes.

Firms are assessed on how attractive they are based on one or more factors/attributes, and then ranked against other firms. Higher ranked firms may indicate a greater opportunity to outperform the market.

It starts with a theory on how an attribute may affect future returns of a stock.

For example: “Shares that are cheap relative to some measure of fundamental value can outperform those that are pricier.” Researchers then analyse data to form an investment view based on the theory. The performance of the factor is evaluated for potential usefulness and significance.

Crea8’s founder and advisors have strong links with Cambridge University and years of experience, including publications at peer reviewed journals, available here.

We tap on these Cambridge backed research and industry experience to derive factors for you to invest in.

Factors are identified using historical data and may not be effective in the future.

As the predictability of factors may decay over time, factor potency might differ from what it used to be. Hence, it might not be as profitable as what the backtest has found.

We combine factors with themes to outperform the market.

Our factor based investing service allows you to overlay factors on thematic portfolios to profit from the predictability and sustainability of multi-year trends. You can adopt our pre-selected factors or create your own combinations.

Check out our white papers here.

Smart money and institutional investors have been using factor based investing for years.

It is a quantitative approach to portfolio construction based on powerful algorithms, advanced technology and robust research.

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Active returns
*Ang, A., W. Goetzmann, and S. Schaefer. 2009. Evaluation of active management of the Norwegian government pension fund-global. Report to the Norwegian Parliament. Full report here.

Global funds such as the USD 1 trillion Norwegian Government Pension Fund (Global) have adopted factor based investing to portfolio construction.

With Crea8, you can now build your own portfolio systematically.

Pre-optimised SRI strategies

Adopt one of our strategies or modify it to suit your needs

High dividend strategy in low interest rates environment

IP based dividend strategy

Opportunistic investing in distressed value stocks

Got Your Own Ideas To Implement?

Build your portfolio with our optimiser in six steps

Define your overall strategy

Set your investment amount and rebalancing frequency.

Set your investment universe

Select your investment market, sector, themes, company fundamentals and more from about 2,500 stocks from 20 countries.

Design your investment style

Choose one of our pre-set balanced, value, growth or dividend styles or design it entirely.

Specify your risk preference

Select one of the pre-defined risk preferences or configure your risk parameters along various risks dimensions.

Backtest before investing

Once you’ve built your portfolio, backtest and check how it would have done in the past before committing capital.

Automate trade routing and portfolio monitoring

Enjoy straight through order processing and whether the market moves in your favour or not, we let you set your take profit or cut loss limits.

Do you always lose money on a particular stock?

Do not worry. We allow you to exclude that ‘bad luck’ stock from your portfolio so that you are at ease with your strategy.

Run my profits and cut my losses

Want to run your profits or cut your losses?

Under normal market conditions, our smart portfolio monitoring system allows you to specify a limit on maximum possible loss, without setting a limit on the possible gain. Your stop loss limit will move with the market price and continually recalculates the stop trigger price at a fixed amount below the market price. As the market price rises, both the stop loss limit price and the stop trigger price rise will be rejigged upwards. But if the stock price falls and hits the trigger price, then your stop loss order is submitted at the last calculated limit price.

Want full control to build your own thematic portfolio?

Capitalise on our financial and alternative data to filter the stocks. Construct your portfolio and set the positions' values yourself.

Didn't find what you were looking for? Check out

Goal Based Thematic Investing

Sustainable and Responsible Investing (SRI)

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