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INTECH moves into emerging market strategies
04 April 2013
The investment manager’s David Scholfield sees increasing demand for unique emerging market strategies
Interest is rising in emerging market strategies that offer low volatility and managed volatility, according to David Schofield, president of the international division at INTECH Investment Management.
Schofield said there are “limited offerings” available in emerging market investment management.
INTECH has just launched a suite of emerging market strategies to give managed volatility, low volatility, as well as what it calls a “core” strategy that seeks an excess return of 3% to 4% above the benchmark.
“We are seeing particular interest in our low volatility and managed volatility emerging market strategies because there are limited offerings available within the emerging markets space,” said Schofield.
He said the managed volatility strategy targets above-market returns but with “substantially less risk” than the benchmark.
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 index, on average. The core strategy seeks an excess return of 3% to 4% above the benchmark, with 3% to 4% tracking error.