C8 Multi-Asset Global Opportunities August 2022 Monthly Report

In August, as the inflation viewpoint becomes established, the certificate was able to capture these moves, rebounding sharply to rise by 4.6% in the month.
BY JON WEBB

C8 Multi-Asset Global Opportunities August 2022 Monthly Report

The first few months of the Multi-Asset Global Opportunities certificate have been characterised by volatile markets with sharp trend reversals, as inflation concerns cause an unwinding of long-held positions. However, in August, as the inflation viewpoint becomes established, the certificate was able to capture these moves, rebounding sharply to rise by 4.6% in the month.

Looking at the component performance (see table below), systematic macro, rates and FX risk premia added to the overall gain, whilst commodity risk premia and equity ‘good governance’ had a negative impact. Note, the risk parity component has now been assigned a zero weight by C8’s proprietary Tactical Asset Allocation (TAA) algorithm.

The TAA is designed to adapt to changing trading environments, and we note the combined index has a strong long-term track record across many different market environments.

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 →

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 →

C8 Technologies Expands into the US with New Tools and Team

BY JON WEBB
C8 Technologies Expands into the US with New Tools and Team November 1, 2022… Read more →
Back to all posts →