INTECH Expands Absolute Volatility Strategies With ACWI Offering
WEST PALM BEACH, Fla., June 4, 2013 /PRNewswire/ -- INTECH Investment Management LLC (INTECH) today announced that it has further broadened its absolute volatility product suite to include strategies benchmarked to the MSCI All Country World Index (ACWI). This expansion reflects increasing institutional-investor demand for a variety of products that offer the potential to generate alpha, while meeting their need for reduced volatility.
All of INTECH's managed- and low-volatility strategies, as well as its relative-return strategies, are based on the same volatility-capture process that INTECH has been using to construct portfolios for more than 25 years. The new offerings are designed for institutional investors seeking to further diversify their non-U.S. asset allocations, and provide the potential for capital appreciation with less absolute risk than the capitalization-weighted index. The new strategies follow INTECH's expansion into the emerging markets equity space earlier this year.
INTECH's Global All Country Managed Volatility strategy has an excess return target of 3-to-4% above the benchmark, with a risk target of approximately 30% less than the benchmark, on average. The Global All Country Low Volatility strategy has a modest above-market return target, with a risk target of approximately 45% less than the MSCI All Country World Index, on average. Also benchmarked to the MSCI ACWI Index are INTECH's three new relative-volatility strategies: Global All Country Core, Global All Country Core Select and Global All Country Enhanced Index.
"INTECH manages portfolios using stock-price volatility and the correlation between stocks in an attempt to generate a long-term excess return above the cap-weighted benchmark. Our relative-return strategies, first launched in 1987, target low tracking error, while our absolute volatility portfolios, introduced in 2011, seek to minimize standard deviation rather than tracking error," said Dr. Adrian Banner, chief executive and chief investment officer of INTECH. "We continue to research further applications of our mathematically-based investment process, with the goal of providing additional investment solutions that will help our clients meet their long-term funding goals."
John F. Brown, senior vice president and head of global client development at INTECH noted, "Institutional investors are increasingly interested in risk-managed investment strategies that offer the potential to generate alpha. This is precisely what we have been offering at INTECH for almost 26 years. However, while clients' aversion for risk continues to grow, so does their need for alpha; hence their interest in non-U.S. strategies that offer the potential for higher returns. At INTECH, we believe our strategies offer institutional investors the alpha potential they are seeking – all within a risk-managed framework."
For more than 25 years, global investment manager INTECH has been offering institutional investors highly disciplined, mathematical equity strategies that seek long-term returns in excess of the target benchmark, while attempting to reduce the risk of significant underperformance relative to that benchmark. Since 1987, INTECH has been generating alpha by taking advantage of stock-price volatility while limiting relative risk and trading costs. The company's global headquarters is located in West Palm Beach, Florida, with its research office in Princeton, New Jersey, and an international division in London. As of March 31, 2013, INTECH had approximately $41.7 billion under management and 80 employees worldwide. INTECH is an independently managed subsidiary of Janus Capital Group Inc. (NYSE: JNS), based in Denver.
About Janus Capital Group Inc.
Janus Capital Group Inc. (JCG) is a global investment firm offering strategies from three individual investment boutiques: Janus Capital Management LLC (Janus), INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins). Each manager employs a research-intensive approach that is distinct within its respective asset class. This multi-boutique approach enables the firm to provide style-specific expertise across an array of strategies, including growth, value and risk-managed equities, fixed income and alternatives through one common distribution platform. At the end of March 2013, JCG managed $161.8 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in London, Milan, Munich, Singapore, Hong Kong, Tokyo and Melbourne.
Past performance does not guarantee future results. Investing in foreign securities involves additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity, the potential lack of strict financial and accounting controls and standards, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation. These risks are magnified in emerging markets, which have historically been subject to significant gains and/or losses, and as such, absolute returns may be subject to increased volatility. Risk targets discussed herein include an effort to monitor and manage risk compared to the relevant benchmark index, which should not be confused with and does not imply low risk or the ability to control risk. Investing involves risk, including fluctuation in value, the possible loss of principal and total loss of investment.
Contact: Kate McGann, Prosek Partners: 212.279.3115, ext. 249
SOURCE INTECH Investment Management LLC