C8 GBI Good Governance January 2022 Monthly Report – Cirdan Capital

The ‘Good Governance’ certificate performed badly in January, particularly in the last week of the month, giving back December’s outsize gains, to end 6.6% lower on the month. There was no overriding theme, with the broad sector sell-off in US stocks, on rising expectations of US rate rises, also reflected in the ‘Good Governance’ portfolio. 
BY JON WEBB

C8 GBI Good Governance January 2022 Monthly Report – Cirdan Capital

The ‘Good Governance’ certificate performed badly in January, particularly in the last week of the month, giving back December’s outsize gains, to end 6.6% lower on the month. There was no overriding theme, with the broad sector sell-off in US stocks, on rising expectations of US rate rises, also reflected in the ‘Good Governance’ portfolio.

One positive attribute of the ‘Good Governance’ investment approach is that it tends to outperform in market dislocations (e.g. 2020 Covid sell-off) on a flight to quality but, in this case, our Good Governance portfolio underperformed the equity sell-off. Looking back over the full performance history since 2007, both in and out of sample, there is only one equivalent episode, in Dec 2010 – Jan 2011, when there was a drop of 12.2%. We note, in this period, that these losses proved only temporary and were fully recovered within 4 months. Indeed, in the current drawdown, the certificate has already recovered 1½% in the first few days of February.

Other posts

C8 Weekly Bulletin: The asset class ‘du jour’ – corporate bonds!

BY JON WEBB
The latest Financial Times opinion piece 'The Long View' flags investor interest in an exciting new asset class – not crypto, not AI-driven stocks… but newly higher-yielding corporate bonds! January data on ETF inflows certainly underlined the revived US investor appetite for fixed income with overall inflows running slightly of those into equities. Amid this constructive backdrop, USD and EUR corporate bond markets begin 2023 on a robust note.  Read more →

C8 Bulletin:  Power of Combination with IVI

BY JON WEBB
One of the big advantages of direct indexing with C8 is the ability to efficiently combine investment approaches on our platform, C8 Studio. A perfect example is the recent launch of a new index by one of our providers, IVI Capital. Read more →

C8 Weekly Bulletin: Europe performs well in ‘long only’ recovery

BY ROBERT MINIKIN
The new calendar year has begun with an explosive extension of the 'long only' asset rally which has been underway since last October’s Fed signal of smaller rate hikes. The positive case for European asset markets specifically been reinforced by a new slide in regional natural prices – to levels last seen ahead of the Ukraine invasion. In this Weekly Bulletin, we take a look at how investors can build European asset market exposure on the C8 platform. Read more →
Back to all posts →