C8 Technologies and Green Blue Invest combine to create the first Good Governance US Equity L/S Index

  • The portfolio blends a methodology that scores the quality of governance at S&P 500 companies with systematic risk premia factors.
  • The Stewardship model is one of the first strategies in the market dedicated to systematically quantifying the quality of governance.
  • Through the C8 Toolbox, c8-studio.com, C8 supplies a systematic overlay, on the 100 best governed names to separate good governance alpha from market beta.

London, November 2021 – C8, the pioneering fintech platform that offers investors the ability to use direct indexing across all liquid asset classes and investment styles, hosts an index that systematically quantifies the quality of governance of the S&P 500 by combining its Systematic Long/Short Overlay with Green Blue Invest’s Good Governance strategy.

Annually rebalanced, Green Blue Invest provides C8 with the list of the top 100 of the S&P 500 companies in terms of quality of governance. The stock selection is based on Green Blue’s Stewardship model, a methodology that scores the quality of governance of S&P companies using systematic analysis of language processing. Green Blue is a financial solutions provider, dedicated to the development of ESG and impact products that align with the Sustainable Development Goals.

C8’s systematic risk premia overlay, available to all users of c8-studio.com, separates good governance alpha from market beta. Uncorrelated factors are used to position the long stock portfolio which is partially hedged through a short position in S&P futures. The index exhibits -3% correlation to the S&P Index and yields an average of 13.5% annualised return for a target volatility of 7.5%.

Mattias Eriksson, Co-Founder and CEO of C8, said:“ Our clients, institutional investors, are more focused than ever on implementing transparent and accountable investment strategies that also provide good returns. It is all made possible through the systematic toolbox available in c8-studio.com. We are delighted to partner Green Blue in matching those client needs.”

Pascal Botteron, Co-Founder and CEO of Green Blue, said: After almost three years of activity, we have showed, through a family of financial products, that good governance is at the cornerstone of both ESG quality and long-term performance. Our ability to extract this premium could be applied to a variety of alternative ESG products, including through our collaboration with C8.” 

Green Blue’s product is an ESG index that has been categorised as top quartile in terms of ESG portfolio quality by Impact Cubed, an independent rating company.

Other posts

A New Approach to Sector Investing

Many advisors that we speak to believe that it is possible to improve client outcomes through tactical management of sector exposure, but developing the right strategy for doing so can be extremely difficult. Please see attached link to a 15-minute webinar where Craig Cmiel, Managing Director of C8 Technologies US, and Chris McHeffey, Head of US product at C8, will introduce a powerful new tool that can potentially enable advisors to deliver better returns, lower risk, or both through tactical management of sector exposures. This scientific approach might be a great addition to your toolkit. Read more →

C8 Weekly Bulletin: Can US Earnings Rebound as Forecast

We follow-up from last week’s piece by IVI Capital on US debt dynamics, with an… Read more →

Thoughts From the Divide:  Tremendous

While there is likely some argument within the Administration as to whether supply chain shocks are both necessary and sufficient or simply necessary (mirrored by the Fed’s own divergence in views), it’s clear that Yellen and the White House are not too concerned about the Philips Curve, nor seem to put stock in John Cochrane’s “fiscal theory of the price level”. After all, Yellen is still quoted as saying that the US is on a responsible fiscal path, despite the deficit (which is, as Mosler notes, the public’s surplus). Or perhaps they think that with some proper cajoling, the greedflation genie can be put back in the bottle (at least temporarily) as CEO’s find a renewed sense of civic virtue and community? We wouldn’t hold our breath. Read more →
Back to all posts →