GLOBAL (ex-US) - Pension funds and other institutional investors outside of the US can now have access to four new active strategies from Denver-based Janus International.
Janus is extending its reach with risk-managed mathematical products designed by Intech, its US-based affiliate acquired earlier this year
These strategies/benchmarks are large cap core (S&P 500), large cap growth (Russell 1000 Growth Index), large cap value (Russell 1000 Value Index) and enhanced index (S&P 500) and aim to reel in investors whose appetite for risk-managed products has grown in recent times.
“In these volatile markets institutional investors want a greater proportion of risk-managed strategies in their portfolios,” said Richard Garland, chief executive officer of Janus International.
“We also believe that institutional investors, who have historically used passive investment strategies, will continue to diversify into enhanced index and risk managed strategies.”
Janus’s investment process uses a mathematical methodology rather than fundamental company analysis. Intech identifies stocks with high relative volatility and a low correlation to each other. It then builds a portfolio with ideal stock weightings within specific risk constraints which aims to exploit the natural volatility of stock prices.
The result is an investment strategy designed to produce an overall return greater than the benchmark index but with ‘benchmark-like’ risk. This structured process results in virtually no style drift, said Janus.
According to the firm, each of Intech’s mathematical investment strategies have outperformed, net of fees.
Chairman, president and CEO of Intech, Robert Garvy, said: “Our aim is to outperform our benchmarks indexes within the confines of ‘benchmark-like’ risk. We are confident international investors will be as receptive to our unique risk-managed process as US-based institutional investors have been over the past 15 years.”
The funds will be marketed in Japan, the Netherlands, Scandinavia, Switzerland and the UK.
Next year Janus plans to launch a new sub funds of Janus World Funds linked to Intech’s investment strategies, again targeting non-US investors.
Dublin-based Janus World Funds are a family of mutual funds based on some of Janus' strongest-performing US-based funds. The funds use several strategies, including US growth, US value, global growth, global value, US combination, income and currency reserve funds.
The secretary of state for work and pensions has told MPs clawback and avoidance measures could be imposed for the people responsible for driving Carillion over the cliff.
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.