# Factor Investing Bridges

# Passive and Active

## Is Factor Investing for You?

What’s a factor in the simplest terms? Factors describe those features determining how an investment performs. Factors for risk; factors for return; factors for risk and return.

Factors emphasize results. Isn’t this true about you?

Labels. Style Boxes. Branding. Popularity. Cachet. These are irrelevant compared to getting results. Passive investing seeks a market’s return at low cost whereas active investing strives for outperformance. Factor investing does both.

Factor investing is rational, quantitative, and efficient like passive but identifies tilts persistent in achieving a targeted result like active.

InvestIn produces all the necessary factor investing components enabling both institutional and private wealth advisors to build customized portfolios tightly fitting investment objectives while targeting desired results.

# No Compromises. What You Need.

Factor investing sits at the center of tried and true investment strategies.

Whether a portfolio manager or a wealth advisor, InvestIn produces customized portfolios using the best of each approach but at low cost and with exclusivity.

Any of InvestIn’s 270+ factors can be used to find investments persistent in excelling in a factor. Pick, say, ten of the best of these, save them as a sleeve, and you have a customized, pure-play factor theme. (Or, you can use any of InvestIn’s pre-packaged IntelliSleeves for a quick, one-step approach.)

Mix a variety of risk/return, financial, and/or ESG factors along with different investment types such as stocks, bonds, and hedge funds. You have built a multi-factor model unlike anything else in the market.

Your mix of themes flows through to portfolio building even to a sleeve of sleeves that can be optimized to any investment objective of your design.

These investments and portfolio designs are 100% proprietary to the advisory firm.

# Mainstream.

“The other main application is the use of factor products to express a more tactical view . . . Factors can be used to alter risk exposures at an overall portfolio level or to target exposures to certain investment themes . . . there are constituencies which see factor investing as a way to efficiently express particular types of views, themes, or exposures [including] ESG requirements.”

“An interesting aspect of factor momentum is its stability with respect to the definition of recent performance. Whether the look-back window is as short as one month or as long as five years, . . . large positive momentum [exists] among factors . . . factor momentum is a truly global phenomenon . . . support[ing] the conclusion that factor momentum is a pervasive phenomenon in financial markets.”

“With factor investing, I decide which factors are important to my clients and I do the research looking for funds where those factors are most robust. It’s more technical than just picking active managers.”

“To understand factor investing, you have to understand that factors are the source of returns whether you know it or not”

“This is the next silver bullet in portfolio construction . . .We believe factors can be a great part of the tool kit and can help advisers to continue to build better portfolios.”

“A fundamental stock picker might be wary of a quant team simply telling her a stock is a “buy.” But if the quant team can identify screening techniques that produce significantly better returns, the stock picker is more likely to become a believer, Bochman said. That same feedback loop can be applied to other parts of the process, including due diligence, investment committees, reviews, portfolio construction and so on.”

“Quantitative analysis, on the other hand, uses mathematical and statistical modeling that pulls in a sometimes-dizzying array of inputs to screen investment ideas . . . quantamental investing reflects advances on the quantitative front.”

# Your Factor Investing Toolkit.

Do you want traditional Smart Beta using factor bundles such as momentum, value, growth, size, quality, or volatility? InvestIn allows you to build your own customized versions at a low cost.

Why not use quantitative risk/return/risk-adjusted factors aligning with an investment objective (see below) or a go-forward sentiment? InvestIn channels expected results directly into investment discovery and selection.

How about using fundamental financial factors or ESG to discover individual securities fitting a portfolio’s needs?

Or a mixture of all the above? InvestIn propels your portfolio building exactly the way you want it.

Pick from a results table ordered from “best” to “worst”. Top-ranked Investments in the results table can be selected for a quick portfolio with fully featured portfolio analysis. And, you can mix investment types or simply focus on one.

And, allocate these selections based on your preference: equal weighted, custom weights, or the industry’s most advanced optimization (using InvestIn’s exclusive multi-factor, multi-period, and learning genetic algorithm optimizing either to the holdings or the portfolio).

How about true stress testing? InvestIn gives an unprecedented method to evaluate factor models using any packaged or custom time periods (called in-sample) and evaluating these models in a “walking forward” time period (called out-of-sample in which the forward period is treated as though it’s happening in real-time).

Do you like how this portfolio satisfies the design objectives? Save it as a model or a sleeve. A sleeve becomes a single investment itself, fully integrated into InvestIn’s 50,000+ investment database with risk, return, and ranking analytics. (Sleeves become discoverable in future searches alongside all other investment types.)

- InvestIn's Factor Inventory
- Quantitative Factors
- Fundamental Financials
- Environmental; Social; Governance (ESG)

Click a tab to view each category’s factors

Active Premium

Alpha

Annualized CAGR

Annualized Return

Annualized SD

Average Gain

Average Loss

Average Rank

Average Return

Beta

Calmar Ratio

Correlation Coefficient

Down Capture

Down Number Ratio

Down Percentage Ratio

Downside Deviation

Expected Tail Return 95%

Expected Tail Return 99%

Expected Tail Risk 95%

Expected Tail Risk 99%

Fat Tailed VaR 95%

Fat Tailed VaR 99%

Gain To Loss Ratio

Information Ratio

Jensen Alpha

Kurtosis

Max Drawdown

Modified VaR 95%

Modified VaR 99%

Percent Gain

Potential Gain 5%

Profit To Loss Ratio

Rachev Ratio

R-Squared

Semi Deviation

Sharpe Ratio

Skewness

Sortino Ratio

Standard Deviation

Standard Error

STARR Ratio

Sterling Ratio

Tracking Error

Treynor Ratio

T-Stat

Up Capture

Up Number Ratio

Up Percentage Ratio

VaR 95%

VaR 99%

1-Months Change Percent

1-Year Change Percent

200-Day Moving Average

2-Years Change Percent

30-Day Moving Average

3-Months Change Percent

50-Day Moving Average

52-Week High

52-Week Low

52-Week Change

5-Days Change Percent

6-Months Change Percent

Accounting Charges Effect

Accounts Payable

Accounts Receivable Change

Actual EPS

Beta

Book Value

Capital Expenditures

Casflow Growth (Past 3 Quarters)

Cash

Cash (TTM)

Cash Change

Cash Flow

Cash Flow Margin

Cash Per Employee (TTM)

Cashflow Growth (Past 1 Quarter)

Cashflow Growth (Past 2 Quarters)

Cashflow Margin

Cashflow Margin (TTM)

Common Stock

Consensus EPS

Cost of Revenue

Current Assets

Current Cash

Current Debt

Current Debt/Equity

Current Ratio

Debt (TTM)

Debt Growth

Debt/Equity

Deferred Long-Term Liabilities

Depreciation

Diluted EPS (TTM)

Discontinued Operations

Dividend Rate

Dividend Share

Dividend Yield

Dividend Yield (Calendar Year)

Dividends Paid

Earnings

Earnings Yield

EBIT

EBIT Growth

EBIT Margin

EBIT Margin (TTM)

EBITDA

EBITDA (TTM)

EBITDA Growth

EBITDA Margin

EBITDA Margin (TTM)

EBITDA Yield

Enterprise Value EBITDA

Enterprise Value Revenue

EPS (TTM)

EPS Actual

EPS Difference

EPS Estimate

EPS Growth (Past 1 Quarter)

EPS Growth (Past 2 Quarters)

EPS Growth (Past 3 Quarters)

EPS Surprise Dollar

EPS Surprise Percent

EPS Surprise Percent (Past 1 Quarter)

EPS Surprise Percent (Past 2 Quarters)

EPS Surprise Percent (Past 3 Quarters)

Estimated Change Percent (TTM)

Estimated EPS

Extraordinary Items

Float Ratio

Float Shares

Forward PE

Free Cash Flow Yield

Goodwill

Gross Profit

Gross Profit (TTM)

Gross Profit Margin

Gross Profit Margin (TTM)

Gross Profit Trailing 12 Months

Income Before Tax

Income Tax Expense

Insider Percent

Instiution Percent

Intangible Assets

Interest Expense

Inventory

Inventory Change

Investments

Latest EPS

Liabilities Change

Long-Term Debt

Long-Term Investments

Long-Term Debt/Equity

Market Capitalization

Market Capitalization Minimum

Minority Interest

Net Borrowings

Net Income

Net Income (TTM)

Net Income Change

Net Income Growth (Past 1 Quarter)

Net Income Growth (Past 2 Quarters)

Net Income Growth (Past 3 Quarters)

Net Income to Common Shares

Net Income to Continuing Operations

Net Profit For Employee (TTM)

Net Profit Margin

Net Profit Margin (TTM)

Net Receivables

Net Tangible Assets

Net To Operating Profit

Net To Operating Profit (TTM)

Non Recurring

Number Of Estimates

Operaing Margin (TTM)

Operating Activities Change

Operating Expense

Operating Gains Losses

Operating Income

Operating Income Growth (Past 1 Quarter)

Operating Income Growth (Past 2 Quarters)

Operating Income Growth (Past 3 Quarters)

Operating Margin

Operating Margin (TTM)

Operating Revenue

Operating To Gross Profit

Operating To Gross Profit (TTM)

Other Assets

Other Cash Flow from Financing Activities

Other Current Assets

Other Current Liabilities

Other Items

Other Liabilities

Other Operating Expenses

Other Stockholder Equity

PE Ratio (TTM)

PE Ratio High

PE Ratio Low

PER Ratio

Price To Book

Price to Book MRQ

Price to Cash Flow

Price to Free Cash Flow

Price To Sales

Price to Sales (TTM)

Profit Margin

Property -Plant and Equipment

Quarterly Earning Growth Year over Year

Quarterly Revenue Growth Year over Year

Research and Development

Retained Earnings

Return On Assets

Return on Assets (TTM)

Return on Capital (TTM)

Return On Equity

Return on Equity (TTM)

Return On Investment Capital

Revenue (TTM)

Revenue Growth (Past 1 Quarter)

Revenue Growth (Past 2 Quarters)

Revenue Growth (Past 3 Quarters)

Revenue Per Employee (TTM)

Revenue Per Share (TTM)

Sale-Purchase of Stock

Selling, General, and Administrative

Shareholder Equity

Shares Outstanding

Shares Short

Shares Short Prior Month

Short Interest

Short Long-Term Debt

Short Percent

Short Ratio

Short Term Cash Power

Short-Term Investments

Solvency Ratio

Splits-Dividends Date

Splits-Dividends Payout Ratio

Splits-Ex Dividend Date

Splits-Forward Annual Dividend

Splits-Forward Annual Dividend Yield

Splits-Last Split Date

Splits-Last Split Factor

Total Assets

Total Assets/Equity

Total Cash

Total Cash Flow from Financing Activities

Total Cash Flow from Investing Activities

Total Cash Flow from Operating Activities

Total Current Assets

Total Current Liabilities

Total Debt

Total Debt Cash Coverage (TTM)

Total Debts/Total Assets

Total Liabilities

Total Operating Expenses

Total Other Income Net Expense

Total Revenue

Total Stockholder Equity

Trailing PE

Wall Street Target Price

Community Rating

Controversies Rating

CSR Stragegies Rating

Emmissions Rating

Environmental Innovations Rating

Environmental Rating

ESG Combined Rating

Governance Rating

Human Rights Rating

Management Rating

Product Responsibility Rating

Resource Use Rating

Shareholders Rating

Social Rating

Workforce Rating

# Planning and Execution Aligned.

A competent wealth plan is developed through conversations, insights, intelligence, and expertise. The plan is set and ready to go. Now, it’s time to execute the plan through investment selection and portfolio design.

Far too often, this is where compromises are made, inefficiencies are realized, and failed expectations arise.

Why? The investment plan strayed from the wealth plan’s objective.

Whether an institution or a private wealth advisor, every portfolio includes two objectives: Wealth Preservation and Wealth Creation.

Factor investing aligns specific investments to this objective continuum but targeting a desired result.

Unlike factor-investing ETFs and mutual funds collected around a small number of factors – momentum; growth; value; size; low volatility – InvestIn’s extensive risk/return/risk-adjusted factors connect portfolio building directly to a portfolio’s objective.

With the investments selected, InvestIn offers the most advanced portfolio optimization in the market. Objective targets, go-forward sentiment, min/max constraints, and multiple time periods are optimized together using InvestIn’s proprietary learning genetic algorithm. This optimization performs at either the holdings level using a single time horizon or the portfolio level using multiple time periods (a major technical invention).

# Transparency. Low Cost Investing.

Like packaged products such as mutual funds, ETFs, and hedge funds, factor-based themes can be constructed with individual securities. But, instead of fund or ETF shares, the custody account for a factor-based portfolio holds the underlying equity shares and bonds (fixed income).

InvestIn, as the premier digital research assistant, handles the investment discovery process based on the factor criteria you want. With ranked choices in the results table including individual securities , a portfolio easily assembles into a one-to-one separately managed account or model.

In this version, each investment is visible in the portfolio and there are no hidden fees or excess costs.

Either solely individual securities or mixed with packaged products according to the same factor criteria, the portfolio’s internal investing costs are efficient.