C8 Technologies Press Release
FolioBeyond and Alerian/S-Network Global Indexes Partner with C8 Technologies to Offer Multisector Fixed Income Strategy via Direct Indexing
March 23, 2021, New York – FolioBeyond, in collaboration with Alerian and S-Network Global Indexes, announced its partnership with C8 Technologies, the first global marketplace for asset owners, funds, banks and index providers, to offer the S-Network FolioBeyond Optimized Fixed Income Index (“SNFBFI”) on its direct indexing platform.
This new collaboration enables advisors to use the C8 platform to directly trade the underlying sub-sector fixed income ETFs of our strategy, gaining access to institutional-grade investment models at a lower cost than traditional broker-specific solutions. Clients execute the trades through their existing broker or bank, rather than committing their capital in advance to a fund or structured product. In doing so, the end investor gains greater transparency and flexibility in their positions as well as simple tools to customize their portfolio. Additionally, in many jurisdictions, the financial advantage of tax loss harvesting can be significant.
C8 users will now gain access to FolioBeyond’s advanced factor-based optimization algorithm that captures the major drivers of value and risk in the Fixed Income markets. SNFBFI is based on best-of-breed Fixed Income ETFs representing 23 discrete sub-sectors spanning most liquid Fixed Income market sectors and further defined by credit risk and duration. SNFBFI provides a dynamically adjusted ETF portfolio that enhances risk-adjusted returns in comparison to the commonly followed Bloomberg Barclays U.S. Aggregate Bond Index (“AGG”).
“FolioBeyond’s advanced multisector model is designed to provide optimized, risk-controlled portfolio solutions that systematically captures changing relative value and risk relationships. It is particularly well-suited for the current environment where historical relationships are in flux with heightened concerns about inflation and rising rates. The C8 infrastructure will enable investors to customize direct indexing solutions with a risk-managed approach to Fixed Income exposure,” said Yung Lim, CEO of FolioBeyond.
“Success through partnerships is a cornerstone of how we intend to grow our business,” said David LaValle, CEO of Alerian and S-Network. “Providing enhanced client exposure to models like FolioBeyond’s, through the C8 platform, is essential to our partnership growth commitment and dedication.”
“The simplification of direct indexing means that it is now easier than ever to act directly on industry research and trends to stay ahead of the market,” notes Mattias Eriksson, CEO of C8 Technologies. “With the Optimized Fixed Income Index our partners have created a low-beta strategy with consistently positive yields. Net of fees, it has still shown a 70% positive monthly hit-rate and a max drawdown of only 6.5% going back more than a decade. The more diversity and quality we can offer our clients on the platform, the better for all parties.”
Notes to Editors:
About FolioBeyond
FolioBeyond is providing the next generation investment platform that leverages advanced quantitative modeling along with machine learning tools to offer cutting edge proprietary products and attractive investment solutions. Founded in December 2017, FolioBeyond offers institutional quality, quantitative asset allocation models that address the needs of a broad array of end users. The founders and team of FolioBeyond comprise a diverse and tenured skillset across capital markets, asset management, technology and marketing.
FolioBeyond Media Contact: James Viceconte, Chief Marketing Officer and Co-Chief Investment Officer jviceconte@foliobeyond.com
About C8 Technologies
C8 Technologies is a provider of strategic decision support tools and services for the global investment community. We create industry-leading, research-enhanced solutions that clients use to gain insight and improved-transparency across their investment process. Utilizing over 20 years of expertise in index-research and trade-execution, C8 powers better investment decisions through Direct Investing, which enables clients to maintain full control of their own capital by trading the underlying assets. C8 was formed in 2017 and has offices in London, Shanghai, and New York.
C8 Technologies Media Contact: Anthony Shewell, Director, Fin International, Anthony.Shewell@fininternational.com
About Alerian and S-Network Global Indexes
Alerian is a leading independent index provider focused on building innovative, index-based investment strategies. The firm acquired S-Network Global Indexes in 2019, expanding their index offerings and services to partners. Combined, the firm serves the global investment community through indexing, benchmarking and calculation services. Built on a foundation of data rigor and specialty research, Alerian and S-Network Global Indexes offer a comprehensive family of energy, income, and thematic indexes. Today, the firms cumulatively have over $23 billion in total assets tracking its indexes and over 200 customers world-wide.
