innovative quantitative indices and other tools, you can define and create a unique investment model, leveraging on the hundreds of indices available in the market, tailored to your clients’ needs, interests, desires and so on. FOs are seeing an improvement in their market image reach a wider client base and manage this expansion in a scalable manner. Flexibility and accuracy – There are several ways to access quantitative strategies, as well as a multitude of specific indices, which means that investment managers have gained the ability to invest in what genuinely interests them. For example, if a client has a particular affinity for companies that invest heavily into social development, or are environmentally friendly, the investment manager can focus on these easily. Likewise, there are indices concerning Shariah-compliant companies, international trade agreements, asset classes like FX or commodities, and various others. You can even select indices based on their risk factors or diversification. Coherence and consistency – Once your Family Office has clarified and defined an investment process for QIs, it is a simple matter to translate that process into different areas and investment universes, thanks to
the broad variety of indices and the extensive market-related, thematic and profile-specific horizons available. Cost efficiency – Once the algorithms have been defined, it should not change, which means you do not need a dedicated portfolio manager to renew the model on a regular basis. As a consequence, indices are usually cheaper than actively managed funds, even if more transparency could and should still be reached in this sense (regulators are aware and have produced interesting pieces which will be in place next year). Access to investment opportunities – Thanks to their considerable accuracy, quantitative indices gives investors significantly improved ability to react to potential return-generating market events which they may have avoided previously, due to their unpredictability. Through the use of QIs, predictability is tightened and sharpened, making apparent risks less risky and potentially more return-generative. One can, for example, invest in the rise of risk in the market through volatility indices, as well as benefiting from quiet markets with short volatility ones. The Investor’s Choice Typically, quantitative indices
have been used by institutional investors and have long been a favourite of pension funds and sovereign wealth funds. So, what is spurring the growing interest among Family Offices, and why should you be considering including QIs in your strategies? As with many things in the Digital Age, the answer comes down to improved and more easily accessible technology. For example, French FinTech startup, Quantilia, has been disrupting the traditional investment industry with its intuitive interface that is designed to connect institutional investors with asset managers and investment banks, as well as facilitating a move from traditional investment models into Quantitative Indices-based investments. Launched less than one year ago, Quantilia can already count some of the major players in the investment industry among its clients. The company specialises in QIs, in creating the complex but accurate and reliable filtering tools that are helping investors make better, more informed decisions on their clients’ behalf. The Quantilia offering includes both wide-reaching, up to date data, and quantitative analysis tools that are designed for effectivity. www.quantilia.com
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