Institutional Asset Manager: C8 launches 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.”