Institutional Asset Manager:  C8 launches Diversified Risk Premia Index

C8 announces Diversified Risk Premia Index

London, 02 December 2021– C8, the pioneering fintech platform that offers investors the ability to use direct indexing across all liquid asset classes and investment styles, today announces its Diversified Risk Premia Index, a multi-strategy portfolio which enables access to diversified indices that track a desired performance, with low volatility and strong returns.

Index robustness and long-term continuity are maintained through the use of diversification and tactically allocating capital into selected constituent portfolios. The index targets a Sharpe Ratio of over 3.0.

The product is made up of five uncorrelated constituent portfolios, active on commodities, rates, equity index futures, FX and US cash equities. These portfolios are diversified by investment style and theme, covering alternative risk-premia, equity risk-premia, ESG, macro and some technical aspects of price action.

Mattias Eriksson, Co-founder and CEO, C8 Technologies said: “We understand institutional investors’ need for portfolios with low volatility yet good average annual returns. Our Diversified Risk Premia Index is a portfolio of portfolios that carefully manages the risk allocation to each underlying portfolio, making it robust and ensuring its longevity.

“Direct indexing allows investors to hold underlying securities directly, expanding their firepower beyond traditional pooled investment structures like ETFs and mutual funds. We’re seeing strong growth of direct indexing as investors increasingly see the benefits of retaining control over their assets in a world where ESG impact and stewardship accountability are paramount.

“The Diversified Risk Premia Index was built using the tools available on our C8 platform and our institutional investor clients customise their own exposures using those same tools.”

 

 

Other posts

NDR Fixed Income Allocation Strategy September 2023 Update

BY BRIAN SANBORN
The NDR Fixed Income Allocation Strategy, Positioning Update Read more →

Thoughts From The Divide: Winners and Losers

BY JON WEBB
In a stroke of luck (from the perspective of clarity) it turns out concerns about the possibility of a long, protracted election fight was wide of the mark. The Presidential election was called quickly (though at the time of writing, control of the House is still up in the air.) But as Trump trots to the “winner’s circle”, markets are still busy correcting commentators regarding just who the winners and losers of Trump v2.0 will be. Read more →

Thoughts From the Divide: Attribution

BY JON WEBB
In April of last year, Huw Pill caught flack for saying that Brits “need to accept that they’re worse off”. This was followed by John Authers coming to the defense of the pilloried BoE chief economist. As we wrote, Authers noted that the comments were taken out of context and explained that the BoE’s Chief Economist was describing how “after a few external shocks, inflation becomes a collective action problem” where “ideally everyone would take a share of the hit, and then they can move on. Human nature isn’t like that, and as a result, economics isn’t like that”. Now, roughly a year later, the BoE’s Catherine Mann has picked up Mr. Authers’ baton. It turns out that people who can maintain their standard of living will tend to do just that! Bemoaning the “challenge” of bringing inflation back to target, Mann said there was “a lack of consumer discipline” to rein in businesses’ pricing power, Read more →
Back to all posts →