Factor strategies

Smart beta ETFs combine active investment strategies with the passive characteristics of index funds. The resulting investment instruments offer systematic exposure to groups of stocks with certain attributes such as Value, Momentum, Quality or Low Volatility. Smart beta ETFs are a sound alternative to classic market-cap-based index investments because the weightings of the respective factors are regularly rebalanced according to predefined rules.

Inefficiencies can be systematically identified and exploited by locking in so-called factor premiums. The targeted use of factor investment strategies can systematically reduce portfolio risk and improve overall returns. Numerous scientific studies have demonstrated the long-term positive effects of individual factors such as Value and Size. Whereas the “Value” factor zeroes in on stocks that are undervalued on the basis of their fundamentals, the “Size” factor can be used to screen stocks with a small market capitalization. Small-cap stocks can perform better than the total market over the long run in the presence of various additional risks, resulting in a factor premium.

Not every factor strategy will generate an excess return in every phase of the market, and there are sometimes striking differences depending on the region. A factor can temporarily outperform, or underperform, the market. Our system of factor rotation is specifically designed to address the constantly moving pieces of this puzzle.

Investment Case

Investment process

The investment universe of the STARS Multi-Faktor Fund comprises about 100 factor ETFs that provide global and regional exposure to equities through a range of different factors.

The allocation to the varying factors is actively managed by means of a rules-based investment process. Only the factor ETFs with the best positive trend strength readings qualify for monthly inclusion in the portfolio, and they must also be showing a positive trend in absolute terms.

The risks of every single factor ETF are well monitored and managed, which limits the portfolio's downside (or draw-down) risks, and the level of investment is routinely adjusted within a range of 0 to 100 percent in the process.

Active Multi Factor strategy

StarCapital has designed its ETF-based multi-factor strategy for investors seeking flexible equity market exposure in the face of changing market and economic cycles, and who want a dynamic tool for investing in factor premiums. In positive market phases, the aim is to generate capital gains by selecting the factor investments with the most bullish trend strength indicators, whereas the objective during negative market phases is to cushion losses in relative terms by investing in selected factor strategies and in absolute terms by actively adjusting the overall investment ratio.

In doing so, the equity allocation can vary between zero and 100 percent. Proceeds from the sale of investments will be temporarily invested in money-market-like and money-market ETFs. Reducing the equity allocation at the right time when a downturn is looming allows portfolio assets to be reinvested in factor ETFs with strong trends when stocks begin to trend higher again without having to first recoup heavy losses.

Our expertise

StarCapital’s award-winning portfolio management specialists boast decades of experience and they are supported by in-house capital market research expertise. The funds managed by Markus Kaiser have received numerous awards for their innovative investment process and performance track records. In 2017, for example, the STARS Multi-Factor Fund was awarded the “Goldenen Bullen” for investment fund innovation by Finanzen Verlag.

Team regelbasierte Strategien

Markus Kaiser
Markus Kaiser, Leiter regelbasierte Strategien
  • Since 2013 member of the Executive Board of StarCapital AG and ETF Fund Manager
  • 2001 – 2013 Managing Director and Fund Manager at Veritas Investment GmbH
  • 2000 – 2001  Portfolio Manager and Technical Analyst at PEH Wertpapier AG
  • 1997 – 2000  Portfolio Manager and Technical Analyst at OCM Vermögensverwaltung GmbH
  • Economics studies, degree in asset management (DIA)
  • Certified Asset Manager (DIA), Freiburg
Andreas Krauss
Andreas Krauss, Portfolio Manager
  • Since 2013 Portfolio Manager at StarCapital AG
  • 2011 – 2013 Risk Manager for products and corporates at Veritas Investment Trust GmbH
  • 2009 – 2010 Fund Administration Officer at Helaba Invest Kapitalanlagegesellschaft mbH
  • 2005 – 2009 Team Manager, custodian bank services at Société Générale S.A.
  • Studies in banking, Certified Banking Specialist
  • Markus Kaiser
  • Andreas Krauss

Our investment solutions

With our rule-based multi-asset strategies, investors can benefit from the development of different asset classes without losing sight of the risks.

Our STARS products are licensed for distribution exclusively to private and professional investors in Germany.

Product Date ISIN NO. NAV YTD 1YR 3YR Factsheet

STARS Defensiv

> I-EUR 18.10.2018 LU0944781110 1,114.13 -3.63% -2.96% 1.56%
  • DE

    • DE
> A-EUR 18.10.2018 LU0944780906 10.95 -4.20% -3.69% -0.15%
  • DE

    • DE
> R-EUR 18.10.2018 LU0944781037 10.99 -4.35% -3.77% -0.02%
  • DE

    • DE

STARS Flexibel

> I-EUR 18.10.2018 LU0944781466 1,239.96 -4.88% -3.40% 8.11%
  • DE

    • DE
> A-EUR 18.10.2018 LU0944781201 11.82 -5.52% -4.21% 5.65%
  • DE

    • DE
> R-EUR 18.10.2018 LU0944781383 11.87 -5.57% -4.12% 6.49%
  • DE

    • DE

STARS Offensiv

> I-EUR 18.10.2018 LU0944781896 1,412.29 -2.52% -0.71% 17.83%
  • DE

    • DE
> A-EUR 18.10.2018 LU0944781540 13.59 -2.58% -1.45% 15.20%
  • DE

    • DE
> R-EUR 18.10.2018 LU0944781623 13.88 -2.60% -1.42% 16.80%
  • DE

    • DE

STARS Multi-Faktor

> I-EUR 18.10.2018 LU0938041398 1,037.85 -4.37% -4.64% 3.98%
  • DE

    • DE
> A-EUR 18.10.2018 LU0938040077 10.38 -4.33% -4.60% 4.04%
  • DE

    • DE


Markets & Opinions / 13.07.2017

Lesen Sie den STARS-Newsletter vom Juli 2017.

Products & Services / 13.02.2017

 "Fondsinnovation des Jahres 2017"- Auszeichnung des Finanzenverlags.

Markets & Opinions / 13.01.2017

Lesen Sie den aktuellen STARS-Newsletter vom Januar 2017.

Markets & Opinions / 14.12.2016

Lesen Sie den aktuellen STARS-Newsletter vom Dezember 2016.

Markets & Opinions / 05.12.2016

Euro Fondsxpress über den SC Fonds STARS Multi-Faktor.