An investment performance rebound this year at INTECH, the institutional, quantitative investment arm of money manager Janus Henderson Investors, has company officials hoping the company will be turning a corner from years of outflows.
Every one of INTECH's more than 35 investment strategies outperformed their respective benchmarks in the first six months of 2017, according to Janus Henderson statistics, a reversal from 2016 when most strategies underperformed.
And its largest strategy, the $10 billion-plus U.S. enhanced-plus flagship strategy, had a net return of 19.8% for the year ended Sept. 30 vs. 18.6% for its S&P 500 benchmark, INTECH statistics showed.
INTECH, with $46.7 billion in assets under management, still had net outflows of $1.8 billion in the quarter that ended June 30, but that amount was down from $3.7 billion in the preceding quarter. The firm reported $7.8 billion in net outflows in 2015 and 2016 combined.
Adrian Banner, INTECH CEO and chief investment officer, is optimistic.
He said the potential new business pipeline for the firm is more robust than in recent memory. "Let's say it's probably the highest that it's been in 10 years," he added.
Mr. Banner wouldn't offer specifics.
The better investment performance is an encouraging development, said Craig Siegenthaler, managing director and senior equity analyst at Credit Suisse Group, New York.
"Over the last five years, (INTECH) has had soft performance, but actually it's been improving pretty rapidly year to date," Mr. Siegenthaler said. "So 2017, great performance; the back half of 2016, they underperformed."
Janus Henderson officials are eager to feature a growing INTECH as one piece of evidence that the merger of Denver-based Janus Capital Group Inc. and London-based Henderson Global Investors in May can create a global world-class investment organization.