Business & Finance
Business and Finance
Business and Finance
Thu, February 5, 2009
Wed, February 4, 2009 INTECH Launches Market Neutral Strategy
WEST PALM BEACH, Fla.--([ BUSINESS WIRE ])--INTECH Investment Management LLC (INTECH), a subsidiary of Janus Capital Group (NYSE: JNS), today announced the formal launch of its Market Neutral strategy. The strategy builds on the same volatility capture strategy that the firm has implemented since 1987, while targeting an absolute return above LIBOR.
"The Market Neutral strategy is a natural extension of INTECH's mathematical, risk-managed, long-only, relative return strategies," said Robert Garvy, CEO of INTECH. "We've seen increased interest in this strategy from institutional investors and believe it offers a risk-managed approach that seeks to provide greater transparency into the portfolio construction process."
Using INTECH's proprietary investment process, the Market Neutral strategy seeks to outperform the three-month LIBOR rate over rolling three- to five-year periods. The strategy will target leverage of approximately $1 of short exposure and $1 of long exposure for every $1 in the portfolio's nominal value. With a target beta of approximately zero, the strategy extends INTECH's existing long-only Large Cap Core investment process to build an absolute return product. For the three-month period ended December 31, 2008, INTECH's Market Neutral strategy has generated positive returns and outperformed the LIBOR three-month rate by 1.84%, net of fees. For the one-year period ended December 31, 2008, the strategy outperformed the LIBOR three-month rate by 1.2%, with an annual return of 3.98% net of fees, as of December 31, 2008. Since its inception (December 1, 2006) INTECH's Market Neutral Strategy has returned 5.51%, net of fees, outpacing three-month LIBOR by 1.45% for the same period.*
In addition to the Market Neutral strategy, INTECH's risk-managed active equity disciplines include: Broad Large Cap Core 130/30, Enhanced Index, Enhanced Plus, Global Core, International Equity, Large Cap Core, Large Cap Growth and Large Cap Value.
About INTECH
Headed by Chief Executive Officer Robert A. Garvy, INTECH was founded in 1987 following research undertaken by Dr. E. Robert Fernholz, the company's Chief Investment Officer, and the publication of his paper in 1982, on mathematical investment processes titled "Stochastic Portfolio Theory and Stock Market Equilibrium." The company's global headquarters is located in West Palm Beach, Florida and has offices in Princeton, New Jersey and London, England. As of December 31, 2008, INTECH had approximately $42.4 billion under management and 82 employees. INTECH is an independently managed subsidiary of Janus Capital Group.
About Janus Capital Group Inc.
Founded in 1969, Denver-based Janus Capital Group Inc. ("Janus") is a recognized leader of growth, risk-managed and value investment strategies. Our commitment to deliver for investors is rooted in our research-intensive approach and relentless passion to gain a competitive edge. At the end of December 2008, Janus managed $123.5 billion in assets for more than four million shareholders, clients and institutions around the globe. Outside the U.S., Janus has offices in London, Tokyo, Hong Kong and Singapore. Janus Capital Group consists of Janus Capital Management LLC, INTECH Investment Management LLC (INTECH), formerly known as Enhanced Investment Technologies, LLC and Perkins Investment Management LLC (Perkins), formerly known as Perkins, Wolf, McDonnell and Company LLC.
* Periods of less than one year are not annualized.
Data presented reflects past performance, which is no guarantee of future results. INTECH Investment Management LLC (INTECH) is an indirect subsidiary of Janus Capital Group Company and an independent investment adviser registered under the Investment Advisers Act of 1940 utilizing an investment process based on a mathematical theory. INTECH is affiliated with Janus Capital Group Inc. and its subsidiaries. The proprietary mathematical process used by INTECH may not achieve the desired results. Since the portfolio is regularly rebalanced, this may result in higher portfolio turnover rates, higher expenses and potentially higher net taxable gains or losses compared to a "buy and hold" or index strategy. Performance results reflect the reinvestment of dividends and other earnings. Portfolio performance results included are time-weighted rates of return using daily valuation, include the effect of transaction costs (commission, exchange fees, etc.) and are gross of non-reclaimable withholding taxes, if any. The Market Neutral Composite returns include all actual fee-paying accounts managed on a fully discretionary basis according to the investment strategy from inception date, including those no longer under management. Accounts meeting such criteria enter the composite upon the first full month under management. Reporting currency is USD. INTECH claims compliance with Global Investment Performance Standards (GIPS®). To receive a complete list and description of INTECH's composites and/or presentations that adhere to GIPS® standards, please contact INTECH at [ finance@intechjanus.com ].
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. For example, net returns were 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.
The Market Neutral composite, previously named Long/Short Market Neutral Composite, is an absolute return strategy, designed to produce returns above three-month LIBOR (London Interbank Offered Rate). This strategy pursues a risk-controlled approach invested equally in long and short positions of a large number of stocks, primarily constituents of the S&P 500 Index® universe, but many include other large-cap U.S. equities.
LIBOR is an interest rate at which banks can borrow funds from other banks in the London interbank market and is fixed on a daily basis by the British Bankers' Association. LIBOR is derived from a filtered average of the world's most creditworthy interbank deposit rates for larger loans with maturities between overnight and one full year.
