INTECH Launches Eurozone Low Volatility Equity Strategy
LONDON and WEST PALM BEACH, Fla., July 30, 2012 /PRNewswire/ -- INTECH Investment Management LLC (INTECH) announced today the launch and funding of its Eurozone Low Volatility strategy, offering institutional investors the potential for modest above-market returns with lower volatility than is typically associated with capitalisation-weighted equity indexes. The new product is euro-denominated and benchmarked to the MSCI EMU (European Economic and Monetary Union) Index.
As part of INTECH's absolute volatility strategy suite, the Eurozone Low Volatility product seeks to generate modest above-market returns, gross of fees, over time, at a significantly lower level of absolute volatility and a higher Sharpe Ratio.
"INTECH is introducing this Eurozone-focused low volatility product to serve the needs of investors in and around Europe who are not necessarily constrained to keeping tracking error low relative to a cap-weighted index, but find lower absolute volatility and high Sharpe Ratios attractive," said David Schofield, President of INTECH's International Division. "This latest product, in addition to INTECH's other absolute volatility products, is managed using stock-price volatility and the correlation between stocks in an attempt to generate an excess return above the capitalisation-weighted benchmark over the long term, but with less risk."
INTECH's chief investment officer, Dr. Adrian Banner, noted that, "The optimisation process of INTECH's absolute volatility strategies attempts to minimise a portfolio's standard deviation rather than its tracking error. These strategies represent a natural evolution of INTECH's mathematical investment process."
INTECH also announced today the client-funding of its U.S. Low Volatility strategy, which was launched in October 2011. Like its Eurozone counterpart, the U.S. Low Volatility strategy seeks to generate a modest excess return above its benchmark, the Russell 1000 Index, gross of fees, with significantly lower absolute risk and a high Sharpe Ratio.
INTECH's Eurozone and U.S. Low Volatility products are built on the same "alpha engine" as INTECH's existing product line of relative- and absolute-return strategies. During the past 25 years, INTECH has been able to extend the application of its mathematically driven investment process to include various equity universes (core, growth, value and high yield); geographies (global, EAFE, eurozone) and strategic objectives (relative return and absolute return). INTECH's investment process can also be applied with varying levels of aggressiveness.
For 25 years, global institutional investment manager INTECH has been generating alpha by utilizing stock-price volatility as a source of reward while attempting to limit risk and trading costs. INTECH manages equity portfolios using a mathematical and scientific approach for clients including some of the world's largest corporate pension funds, public pension funds, foundations and endowments, sovereign wealth funds, Taft-Hartley and other institutional investors. The company's global headquarters is located in West Palm Beach, Florida, with its research office in Princeton, New Jersey, and international division in London, England. As of June 30, 2012, INTECH had approximately $39.4 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. As of June 30, 2012, JCG managed $152.4 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in Frankfurt, The Hague, Paris, London, Milan, Munich, Zurich, Singapore, Hong Kong, Tokyo and Melbourne.
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