C8 Weekly Bulletin: New Provider - Arabesque

C8 are delighted that Arabesque has joined the C8 ecosystem. Arabesque have a well-respected ESG ratings business, S-Ray, as well as an innovative AI-driven investment allocation platform, combining both to be the world’s first AI ESG fund manager. We then illustrate how C8 Studio can be used to build a portfolio of their AI ESG indices.

New Provider – Arabesque

Arabesque have added eight long only equity indices onto C8 Studio:

ESG

AI Global Climate Change
Global, all-cap, long only strategy focusing on stocks well-positioned to benefit from the opportunities and manage the risks associated with climate change
AI Europe Climate Change
As above, but for European stocks only
AI Governance
Global, all-cap, long only strategy focusing on stocks with the best governance credentials
AI Human Rights
Global, all-cap, long only strategy focusing on stocks with the best human rights and labour rights credentials
AI Waste Management
Global, all-cap, long only strategy focusing on stocks with the best waste and resource usage credentials
AI Water
Global, all-cap, long only strategy focusing on stocks with the best environment and water credentials

Non-ESG

AI Global Developed Large Caps
Global Developed large-cap stocks
AI US Health Tech
US Stocks in the Health Technology sector

Arabesque Investment Process

Combination of Arabesque AI ESG Indices

on C8 Studio

Selecting the five Arabesque Global ESG indices on C8 Studio, these indices can then be combined using C8’s proprietary methodology, Tactical Asset Allocation. For diversification we use a minimum of three of the five indices each year, the TAA combination produces returns close to the best performer without the benefit of hindsight. This analysis is done on a walk-forward basis which gives a realistic assessment of achievable returns (i.e. not just optimising past performance).