WEST PALM BEACH, Florida, April 3, 2013 /PRNewswire/ -- INTECH Investment Management LLC (INTECH) today announced the launch of its suite of Emerging Markets (EM) strategies, which include Emerging Markets Managed Volatility, Emerging Markets Low Volatility and Emerging Markets Core, reflecting increased institutional investor demand for these types of products.
All three strategies are based on the same volatility-capture process that INTECH has used in managing developed-market portfolios for more than 25 years. They are designed for institutional investors seeking to diversify further their non-U.S. asset allocations and to tap into the potential for capital appreciation. These products are benchmarked to the MSCI Emerging Markets Index.
INTECH's Managed Volatility strategy has an excess return target of 3% to 4% above the MSCI Emerging Markets Index, with a risk target of approximately 25% less than the benchmark, on average. The Low Volatility strategy seeks market-like returns with a risk target of approximately 35% less than the MSCI Emerging Markets Index, on average. INTECH's Emerging Markets Core strategy seeks an excess return of 3% to 4% above the benchmark, with 3% to 4% tracking error.
"Our extensive research and development have demonstrated the potential to achieve attractive risk and reward results in the emerging markets segment," said Adrian Banner, chief executive and chief investment officer of INTECH. "Key factors such as recently available reliable historical data, increased liquidity and lower trading costs, as well as evidence of a stabilized capital distribution, have given us the confidence that we can now apply the INTECH investment process to manage products of the same high quality as in the developed markets."
Added John F. Brown, senior vice president, head of global client development at INTECH, "We are seeing particular interest in our low volatility and managed volatility EM strategies because there are limited offerings available within the emerging markets space. What makes INTECH's Emerging Markets Managed Volatility strategy unique is its ability to provide institutional investors with exposure to emerging markets, targeting above-market returns but with substantially less risk than the benchmark."
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 December 31, 2012, INTECH had approximately $40.2 billion under management and 78 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 December 2012, JCG managed $156.8 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 includes 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: +1.212.279.3115, ext. 249