Intech Investment Management, part of US fund manager Janus Capital, has launched its first Enhanced Global Equity strategy, seeded with funding from one of Europe's largest pension funds.
Enhanced Global aims to achieve returns above its benchmark, the MSCI Developed World Gross Index, of around 1.25% to 1.35% over a three- to five-year period. It anticipates tracking error of 1.35% to 1.50% annually over the long term and targets an information ratio of over 0.75. All Janus performance figures quoted in this story are annualised and gross of fees.
The product is being marketed in all Janus Capital's target Asia-Pacific markets, says Jack Lin, co-chief executive of Janus Capital International. He anticipates interest from sophisticated, long-term investors such as pension funds and government funds using this as an "anchor strategy" in their portfolio.
"We have seen this play out in the US and Europe with Intech's Enhanced US Equity strategies," Lin tells AsianInvestor.
In the past, large sophisticated investors in China, Australia and Japan have selected Intech to manage both US and global equity portfolios, he says. Lin could not provide specific AUM targets.
Enhanced Global is an extension of both Intech's Global Core and Enhanced Index strategies. As of November 30, Global Core returned 3.88% since its inception on January 1, 2005, outperforming its benchmark, the MSCI World Index, by 1.65%. Enhanced Index has returned 2.98% since its inception on April 1, 1998, outperforming its benchmark, the S&P 500 Index, by 1.28%.
This new strategy is managed using Intech's mathematical -- or quantitative -- risk-managed investment process designed to seek long-term returns in excess of the target benchmark.