Insight use case 01: Fund creation monitor & re-balance

Thematic ETFs

According to Forbes and Factset 9/10 financial institutions are now interested in thematic Investing, which has become increasingly more popular, as investors align their portfolios with future expectations for themes and concepts. Thematic ETFs represent an essential investment strategy that aligns stock selection according to a number of factors, such as ESG considerations for example, in an ever changing global landscape.

Orbit Insight is the ultimate thematic research tool generating key insights, trends and patterns from global company filings, news and press releases.

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ETF Fund creation – selecting stocks

Orbit Insight can suggest trending themes to kick start your selection process or perform an in depth search of your chosen theme/concept. This will in-turn highlight relevant companies who fit your criteria from their company filings, news and press release activities. The underlying filings and articles are made instantly available for further manual review and screening for suitability.

Once you’ve selected the stocks for the fund and have gone through the process of setting up your active ETF now it’s time to keep your finger on the pulse. With your Orbit Insight account you can setup automated alerts covering your portfolio to keep you a breast of the underlying company’s activities and global events to save you valuable analysis time.

Stock selection
Step 1 – select your search requirements for your chosen theme and concepts and run the search
Step 2 – use the filters to drill down to the most relevant results
Step 3 – add the individual companies to your portfolio

Monitor & re-balance
Monitor the information through the application in almost real-time to decide how aggressive you’d like to be with re-weighting the stock holdings in the fund.
Step 4 – monitor the filings, news and press releases relating to your specific portfolio
Step 5 – weight your stock holding accordingly

HSBC:

"Our ETF range combines our emerging market credentials, sustainable investing focus and our belief that thematic investing is becoming an ever increasing part of the investment landscape."

Case study

Orbit Financial Technology Ltd – Sanlam AI fund

By efficiently screening global public filings, Orbit Insight helped Sanlam AI fund launch and consistently outperform benchmarks over the last 4 years. In 2017, our client decided to launch one of the world’s first Artificial Intelligence (AI) funds at a crucial moment for the AI industry.

AI is believed to be a key driver for economic and productivity growth in the next two decades. Companies that invest in AI related technologies should out-perform their peers and benchmark. The stock selection is a fully proprietary bottom-up process from global stocks, with no restrictions on geography or sector. It is crucial to have a systematic and compliant methodology to screen the whole universe and narrow it down to a size that can be handled by follow up procedures & processes.

Orbit Insight is a platform that centralises public and in-house data for financial service companies to enable highly informed evidence-based investment analysis and decision making. The system provides a broad range of unstructured data collected in-house such as news, press releases and public filings from over 20 global exchanges. Coupled with multi-lingual massive parallel processing and a number of machine learning modules delivered together as a service via its cloud platform.

Sanlam AI fund

 

Testimonial – Chris Ford, the fund manager for the AI fund

As part of the process of designing new investment funds, my team and I had identified the opportunity to use data science at the heart of our investment process in order to deliver more efficient, insightful, accurate and timely process implementation. After ideation and process design, we looked to partner with Orbit Financial Technology to deliver what has proven to be a truly differentiated and innovative tool that sits at the heart of our investment process.

Working with Orbit, we specified a solution that was delivered on time and on budget in 2017. We have subsequently worked with Orbit to improve the functionality of the platform they delivered to us and are now on version 4 of the platform. Each version has delivered substantial improvements, allowing us to work with greater insight and to use Orbit’s products to support a greater breadth of investment products.

In managing the first equity investment fund to target artificial intelligence thematically, we have been pleased to work with the team at Orbit. Their platform, alongside our investment design and implementation, has helped us to deliver one of the strongest investment track records in the world over the past 4 years. We look forward to continuing to develop our relationship together in the future.

Forbes/Facset:

"9/10 financial institutions are now interested in thematic Investing"
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What is an ETF?

An exchange traded fund (ETF) is a type of security made up of a number of securities (the fund) but can be bought or sold on a stock exchange as a single stock in the same way a regular stock can. As only a single stock (representing a number of stocks) is being bought or sold, the associated fees are often lower and unlike mutual funds, an ETF can be traded throughout the day.

What is an active ETF?

An actively managed ETF refers to ETFs that are managed by a portfolio manager, supported by analysts and do not typically follow an index or rebalancing strategy like their passive counterparts. Rather than following and tracking the performance of a specific index, benchmarks are set with an aim to outperform the market.
Due to the added risk and potentially higher reward, its imperative the fund manager has a full 360 degree view of the markets and underlying stocks. Research is key to success and therefore unstructured data around the realtime performance of a company is essential to decision making when rebalancing the fund.

What is Orbit Insight?

Orbit Insight is an indispensable tool for thematic and company-based research from unstructured data such as news, press releases and listed company filings across 15 global exchanges.
Unstructured data accounts for over 80% of all data. Our AI-based solutions have been created to unlock the power of this relatively untapped form of invaluable data.

"Orbit Insight is a truly differentiated and innovative tool that sits at the heart of our investment process."

Chris Ford, AI fund manager at Sanlam