Janus Subsidiary INTECH Launches New International Equity Capability

Company Release - 1/3/2007 8:00 AM ET


Janus Capital Group Inc. (NYSE: JNS) subsidiary Enhanced Investment Technologies LLC (INTECH) today announced the launch of an international equity capability. The new offering was developed in response to strong demand for an active, risk-managed, international equity capability to complement INTECH's broad range of U.S. and global equity strategies.

The INTECH international equity strategy uses a universe of international securities benchmarked to the Morgan Stanley Capital International Europe, Australasia, and Far East (MSCI EAFE) Index.

The strategy will target an annualized average gross return over the long term of between 2.75% and 3.25% above its benchmark index and will complement INTECH's global strategy that launched in early 2006.

"INTECH has concluded that the application of stochastic portfolio theory to a universe of non-U.S. securities can offer investors a product that aims to produce better upside potential than the market with less relative risk," said Robert Garvy, Chairman and Chief Executive Officer of INTECH. "We believe the new International Equity strategy will be an attractive option to investors interested in a risk-managed international equity offering."

By capitalizing on the natural price movement of individual stocks, INTECH portfolios seek to offer better upside potential than the market with benchmark-like risk. INTECH has used this process to successfully manage money for institutional investors since 1987, reflecting one of the longest continuous records of mathematical equity investment strategies in the industry.

INTECH's proprietary investment process relies on a precise mathematical methodology rather than fundamental analysis of companies. INTECH begins by identifying stocks with high relative volatility and low correlation to each other. Within specific risk constraints, INTECH identifies target weightings of these stocks in an attempt to take advantage of the natural volatility of stock price movement. The result is a portfolio of stocks that seeks to produce an overall return greater than the benchmark index, but with less downside risk. This structured process results in virtually no style drift.

In addition to the new international equity strategy, INTECH's risk-managed active-equity disciplines include: Enhanced Index, Enhanced Plus, Large Cap Core, Large Cap Value, Large Cap Growth and Global Core.


Headed by Chief Executive Officer Robert Garvy, INTECH was founded in 1987 following research undertaken by Dr. Robert Fernholz, the company's Chief Investment Officer, and the publication of his paper in 1982 on mathematical investment processes called "Stochastic Portfolio Theory and Stock Market Equilibrium." Headquartered in Palm Beach Gardens, Florida, and with research facilities in Princeton, New Jersey, the company employs 62 staff and manages approximately $55.6 billion in assets as of September 30, 2006.

About Janus Capital Group Inc.

Founded in 1969, Denver-based Janus Capital Group Inc. (Janus) is a recognized leader of growth and risk-managed 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 September 2006, Janus managed approximately $158.3 billion in assets for more than four million shareholders, clients and institutions around the world. Outside the U.S., Janus has offices in London, Milan, Tokyo and Hong Kong. Janus Capital Group consists of Janus Capital Management LLC, Enhanced Investment Technologies, LLC (INTECH), and Capital Group Partners, Inc. (doing business as Rapid Solutions Group). In addition, Janus Capital Group owns 30% of Perkins, Wolf, McDonnell and Company, LLC.

The Morgan Stanley Capital International EAFE Index is a market capitalization weighted index composed of companies representative of the market structure of Developed Market countries in Europe, Australasia and the Far East.

The Fund's portfolio may differ significantly from the securities held in the index. The index is not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.

Past performance is no guarantee of future results.

Source: Janus Capital Group Inc.

Contact: Janus Capital Group Inc. Shelley Peterson, 303-316-5625 or James Aber, 303-336-4513