Janus Subsidiary INTECH Launches New Collared Long/Short (120/20) Strategy

First Leveraged INTECH Strategy Aims to Provide Higher Risk-Adjusted Returns Than the Russell 1000

Company Release - 2/28/2007 4:10 PM ET


Janus Capital Group Inc. (NYSE: JNS) subsidiary Enhanced Investment Technologies LLC (INTECH), today announced the launch of its Collared Long/Short (120/20) strategy, which will be available to both U.S. and non-U.S. institutional investors. The new offering was developed in response to strong demand for an active, risk-managed, long/short equity capability to complement INTECH's broad range of U.S., global and international equity strategies.

The INTECH Collared Long/Short (120/20) strategy uses a universe of U.S. securities benchmarked to the Russell 1000 Index. The strategy's portfolio weights are determined by extending the active positions from INTECH's long-only strategy building on the same risk managed mathematical investment process developed by INTECH in 1987. The strategy will target an annualized average gross return over the long term of between 4.75% and 5.25% above its benchmark index with a beta of 1.0 and an approximate information ratio of 1.0.

"Risk management remains at the heart of INTECH's Collared Long/Short (120/20) Strategy because it utilizes scaled active weights from INTECH's existing risk-managed long-only strategy," said Robert Garvy, Chairman and Chief Executive Officer of INTECH. "This strategy seeks higher excess returns and tracking error targets, but at approximately the same market risk and information ratio levels. We believe this strategy will be attractive to those institutional investors looking for alpha with high information ratios."

INTECH's proprietary investment process relies on a precise mathematical methodology rather than fundamental analysis of companies. INTECH begins by attempting to identify stocks with high volatility relative to the index 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 Collared Long/Short (120/20) equity strategy, INTECH's risk-managed active-equity disciplines include: Enhanced Index, Enhanced Plus, Large Cap Core, Large Cap Value, Large Cap Growth, Global Core and International Equity.

    For more information, please visit www.janusintech.com

    About INTECH

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 69 staff and manages approximately $62.3 billion in assets as of December 31, 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 December 2006, Janus managed approximately $167.7 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, Hong Kong and Melbourne. 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 proprietary mathematical process used by Enhanced Investment Technologies LLC ("INTECH") may not achieve the desired results. Since the portfolio is regularly re-balanced, this may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a "buy and hold" or index strategy.

The use of short sales may cause the strategy to have higher expenses than those of other equity strategies. Short sales are speculative transactions and involve special risks. The strategy's losses are potentially unlimited in a short sale transaction. The strategy's use of short sales in effect leverages the strategy's portfolio. The strategy's use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.

The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index. The weighting of securities within the portfolio may differ significantly from the weightings within 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.

Information Ratio is a measure of portfolio management's performance against risk and return relative to a benchmark or alternative measure.

Beta is a measurement of a fund's trailing 36-month returns in relation to the overall market (or appropriate market index). Beta of 1 - share price will typically move with the market; Beta more than 1 - share price will typically be more volatile than the market; Beta less than 1 - share price will typically be less volatile than the market.

Tracking Error is a divergence between the price behavior of a position or portfolio and the price behavior of a benchmark.

    Past performance is no guarantee of future results.

    INTECH is a subsidiary of Janus Capital Group Inc.

    Source: Janus Capital Group Inc.
Contact: Janus James Aber, 303-336-4513 (US) Neal Jenkins: 44 207 410 1907 (UK)