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