WEST PALM BEACH, Fla., June 28, 2012 /PRNewswire/ -- INTECH Investment Management LLC (INTECH), a global institutional investment management firm, today announced it has reached the 25-year mark, celebrating a quarter-century of pursuing alpha while managing risk.
"In commemorating this significant milestone in INTECH's history, we want to express our appreciation for the partnership we have with our clients and their consultants and the trust they have placed in us," said Jennifer Young, CFA, Chairman and Chief Executive Officer of INTECH.
INTECH serves its institutional clients through an investment process, based on a mathematical theorem that attempts to capitalize on the random nature of stock-price movements. The theorem was discovered by INTECH founder Dr. Robert Fernholz and published in the paper, "Stochastic Portfolio Theory and Stock Market Equilibrium" in The Journal of Finance in 1982. "The goal of INTECH's investment process is to achieve long-term returns that outperform the benchmark index, while managing risk and trading costs," said Dr. Adrian Banner, INTECH's Chief Investment Officer.
On a practical level, Stochastic Portfolio Theory was first applied at INTECH when the firm launched its flagship strategy, U.S. Enhanced Plus, on July 1, 1987. INTECH uses stock-market volatility as an alpha source, while embedded risk controls in its process are designed to help protect its portfolios on the downside through many different market cycles. "That is the real value we provide to our clients. We offer a consistent and repeatable risk-managed investment process, which, over time, is able to generate alpha," noted Ms. Young.
Evidence that INTECH's investment process is able to achieve this result can be found by looking at the performance of U.S. Enhanced Plus since its inception. The strategy has realized positive relative returns based on all 299 possible monthly inception dates through May 31, 2012 (298, net of fees). Since its inception, the strategy has provided an annualized excess return of 1.50% above its benchmark, the S&P 500 Index, gross of fees (1.05% net of fees) as of May 31, 2012.*
Because all of INTECH's strategies are built on the same "alpha engine," during the past 25 years, INTECH has been able to extend the application of its mathematically driven investment process to include various investment 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 March 31, 2012, INTECH had approximately $42.7 billion under management and 79 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 March 31, 2012, JCG managed $164.0 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 involves risk including the possible loss of principal and fluctuation of value. Positive relative returns may not be indicative of positive absolute performance. Performance results reflect the reinvestment of dividends and other earnings. The gross performance results presented do not reflect the deduction of investment advisory fees. Returns will be reduced by such advisory fees and other contractual expenses as described in each client's individual contract.
The net performance results do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite. However, the net performance results do reflect the deduction of model investment advisory fees. Through December 31, 2004, net returns were derived using the maximum fixed fee in effect for the product. As of January 1, 2005, net returns are calculated by applying the standard fee schedule in effect for the respective period to each account in the composite on a monthly basis. Actual advisory fees may vary among clients invested in this strategy. Actual advisory fees paid may be higher or lower than model advisory fees. Some clients may utilize a performance-based fee.
Contact: Kate McGann, CJP Communications: 212.279.3115, ext. 249