INTECH launches EM strategies suite
INTECH Investment Management LLC has launched a its suite of emerging markets strategies, which include Emerging Markets Managed Volatility, Emerging Markets Low Volatility and Emerging Markets Core, to meet 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.
He added: “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.”