Feb. 28, 2003 — Janus Capital Group (JNS) debuted a new mutual fund that uses a mathematical formula in an effort to beat the returns of the Standard & Poor’s 500-stock index.
The Janus Risk-Managed Stock Fund is the first quantitative fund offered directly to investors by Janus, which recently introduced two other quantitative funds in its Advisor series of products that are sold through financial intermediaries.
Unlike other quantitative funds, Janus’ products do not analyze companies or to try to forecast a stock’s performance, a Janus spokeswoman said. Instead, they focus on stocks in an index that are volatile, but do not move in tandem, she said.
All three funds are run by Janus’ Enhanced Investment Technologies LLC (INTECH) subsidiary. The investment process was formulated by Robert Fernholz, the unit’s chief investment officer. Enhanced Investment has employed the approach to manage money for institutions since 1987, Janus said.
By capitalizing on the natural price movement of individual stocks, INTECH portfolios seek to offer better up-side potential than the market, Janus noted.
The new fund imposes a 1% charge on shares that are sold within 90 days of purchase.