La Française Investment Solutions, part of French asset management group La Française, has reached a three-year partnership with the quantitative management initiative (QMI), gathering quantitative management professionals and academic researchers.
Through the deal, LFIS seeks to develop new areas of quantitative research with potential real-world application for asset management. The partnership between LFIS and QMI will focus on the three main stages of quantitative investing, artificial intelligence and signal generation, portfolio construction and risk management and real-world implementation challenges.
A call for research projects around these themes will be soon launched. Proposed projects will be assessed by a committee including representatives from Paris-Dauphine, the Fondation du Risque, LFIS and other leading quantitative asset managers.
LFIS’ support will help finance selected research projects. LFIS’ head of Quantitative Research and Development, Guillaume Garchery, and head of Factor Investing, Luc Dumontier will be the representatives of La Française on the partnership.
The QMI was launched in 2012 and is part of France’s Fondation du Risque and supported by the Institut Louis Bachelier. Associated research is mainly carried out by teams from universities of Paris-Dauphine and ENSAE (Ecole Nationale de la Statistique et de l’Administration Economique).
The QMI’s goal is to produce world-class research with practical applications by encouraging cooperation between quantitative management professionals and academic researchers.
Sofiene Haj-Taieb, CIO of LFIS, commented: “A quantitative approach is an essential part of our DNA at LFIS and is evident in both our premia and credit strategies. We view this approach as one of the major disruptors in the investment management industry. This partnership with QMI amplifies our internal research efforts through access to the universe of manager and academic talent in the field.
“We hope the partnership will support and nurture the next generation of quantitative talent. Most of all, we intend to apply the findings to help our clients go beyond traditional asset management approaches and to access a robust, repeatable roadmap for performance.”
Gaëlle Le Fol, professor at Dauphine and Scientific Director of QMI, added: “We are thrilled to welcome LFIS as a partner in this initiative. The firm’s strong quantitative research and development capabilities are a valuable source of ideas and inspiration for our research. Through this partnership we seek to build and strengthen the collaboration between the academic and professional worlds of quantitative management and to bring the QMI’s research to life.”
Launched in 2013, LFIS had $12.5bn of assets under management as of 29 March 2018.