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Please find below monthly updates for the following C8-driven products: C8 Corporate Bond Monthly Update, C8 Active World ESG Index, C8 Multi Asset Global Opportunities Certificate, C8 China Futures Access TRS, C8/ Greenblue Good Governance US Equity L/S Certificate
The ‘Good Governance’ certificate was steadily recovering from January’s sell-off but was hit once again as energy prices spiked following the Russian invasion of Ukraine. The certificate ended down 0.6% on the month.
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.
C8 Technologies and Green Blue Invest combine to create the first Good Governance US Equity L/S Index
The ‘Good Governance’ certificate closed out the year with a strong month, up 6.3% in December, to leave the certificate up 4.9% in 2021, and 10.7% since inception. Most notable was a rotation away from some of the more speculative (and less well-governed) stocks in the S&P 500 into our Good Governance portfolio, as year-end approached.
The certificate fell by 1% on the month. The Good Governance premia had been making steady gains before falling, towards the end of the month, as volatility returned to US stocks (the certificate is already back higher in early December).
The ‘Good Governance’ certificate recovered some of last month’s losses in October, rising by 0.7%, as commodity markets stabilised, and in some cases, reversed their recent sharp gains. High energy prices and post-Covid supply chain issues remain however, but, as we have previously expressed, we believe that the ‘Good Governance’ premia can perform well as these influences diminish over time.
After a period of strong gains, the Good Governance Certificate gave back 3.2% in June. With oil and gas stocks excluded from our long basket on ESG grounds, the sharp recovery in these stocks (up 23% since the start of May) weighed on the overall performance. However, this underperformance is to be expected, given the ESG exclusions, when, for example, the oil price rises sharply. This leaves the Certificate up 2.6% in the first half of the year, and up 8.2% since inception.
C8/GreenBlue Good Governance US Equity L/S Certificate up 1.7% in May Please click on the link above to view the May Monthly Report for the ‘C8/GreenBlue Good Governance US Equity L/S Certificate’, that we are forwarding on behalf of the issuer, Cirdan Capital. ‘There were…
In this post, we run through the full suite of new Combination Methodologies which have been released on the C8 Direct Indexing platform, C8 Studio.
March Monthly Report for C8/GreenBlue Good Governance US Equity L/S Certificate, issued by Cirdan Capital, update.
February Monthly Report for C8/GreenBlue Good Governance US Equity L/S Certificate, issued by Cirdan Capital, update.
After a strong November, the Certificate gave back 1.2% in December to close 2020 with a 5.4% gain. It was certainly a challenging year to launch the Certificate, however it still made consistent gains through the year. Most impressive was the standout performance in the Q1 equity sell-off.
September was a month of two halves, the initial retracement in the S&P 500 was also matched by some further weakness in the Certificate, however the partial rebound in US stocks later in the month favoured the ‘Good Governance’ portfolio, leaving the Certificate up on the month. This leaves the Certificate up 5% since inception.
C8/GreenBlue Good Governance US Equity L/S Certificate – August 2020 Review Please click on the link above to view the July Monthly Report of the ‘C8/GreenBlue – Good Governance US Equity L/S Certificate’, that we are forwarding on behalf of the issuer, Cirdan Capital.
The Certificate had a strong start to the month but pre-US election stock market jitters lead to these gains being given back as October progressed. As a result, the certificate ended unchanged on the month. With the HFRX Equity Index down ½% on the month, the Certificate has now outperformed this HF index by almost 10% this year.
The ‘Good Governance’ Certificate continues to perform well, rising by a further 1.4% in July, with the S&P 500 continuing to recover ground from Feb/Mar falls. This took the performance of the Certificate to +5.5% since inception, on the 21 January. The ‘Good Governance’ risk premia has shone through in the past few months, and we note similar outperformance in the backtest during 2008/09 and in other volatile years for US stocks. Most notable, is the max drawdown of the Certificate of 3½% in March, set against the S&P 500’s 30% fall.
It was another strong month for the Certificate, which rose by 1.9% in June, as the S&P 500 continued to recover ground from Feb/Mar falls. This took the performance of the Certificate to +4.3% since inception, on the 21 January. The ‘Good Governance’ risk premia has shone through in the past few months, and we note similar outperformance in the backtest during 2008/09 (see chart below) and in other down years for US stocks.
June was the third consecutive positive month for the US equity markets. The GBI – Good Governance Fund Class SA was up 3.98%, outperforming the S&P 500 TR index by 1.99%. With the fund now up 10.07% in the first 6 months of 2020, the accumulated outperformance since the beginning of the year stands at 13.15% and 17.74% since inception.
May was a positive month for the S&P index. Performances in May were dispersed, with many big winners as well as big losers. The GBI – Good Governance Fund Class SA was up 4.94%, once again outperforming the S&P 500 TR index by 0.17%. Accumulated outperformance year-to-date now stands at 10.83%, and 14.91% since inception.
