LONDON and WEST PALM BEACH, Florida, 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, Paris, The Hague, Zurich, Singapore, Hong Kong, Tokyo and Melbourne.
Issued in Europe by Janus Capital International Limited, authorised and regulated by the Financial Services Authority.
Issued in: (a) Taiwan R.O.C by Janus Capital International Limited, authorised and regulated by the Financial Services Authority of the United Kingdom; (b) Hong Kong by Janus Capital Asia Limited, licensed and regulated by the Securities and Futures Commission of Hong Kong.
In Taiwan R.O.C and the PRC, only available to select targeted institutional investors.
This document does not constitute investment advice or an offer to sell, buy or a recommendation for securities, other than pursuant to an agreement in compliance with applicable laws, rules and regulations. Janus Capital Group and its subsidiaries are not responsible for any unlawful distribution of this document to any third parties, in whole or in part, or for information reconstructed from this presentation and do not guarantee that the information supplied is accurate, complete, or timely, or make any warranties with regards to the results obtained from its use. As with all investments, there are inherent risks that each individual should address.
The distribution of this document or the information contained in it may be restricted by law and may not be used in any jurisdiction or any circumstances in which its use would be unlawful. Should the intermediary wish to pass on this document or the information contained in it to any third party, it is the responsibility of the intermediary to investigate the extent to which this is permissible under relevant law, and to comply with all such law.
* Past performance is not a guarantee of future results. There is no assurance that the investment process will consistently lead to successful investing. The opinions are those of the authors are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes. Janus is not responsible for any distribution of this document to any third parties in whole or in part or for information reconstructed from this presentation.
Janus Capital Management, INTECH Investment Management LLC & Perkins Investment Management LLC will act as sub-adviser to Janus Capital International.
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