The Markets March 4, 2007

Collared Long/Short (120/20) Strategy Launches

Janus Capital Group Inc. subsidiary Enhanced Investment Technologies LLC (INTECH) has 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.
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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, according to a press release.

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.

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According to a press release, the new offering was developed in response to strong demand for an active, risk-managed, long/short equity capability to complement INTECH’s range of U.S., global and international equity strategies.

Mathematical Methodology

INTECH’s proprietary investment process relies on a mathematical methodology rather than fundamental analysis of companies, according to the firm. 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. This structured process results in virtually no style drift, according to a press release.

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.

Headquartered in Palm Beach Gardens, Florida, and with research facilities in Princeton, New Jersey, the INTECH employs 69 staff and manages approximately $62.3 billion in assets as of December 31, 2006.

MORE at http://www.janusintech.com

The Markets March 4, 2007

Mutual Fund Assets Increase $153.8B in January

Combined assets of the nation's mutual funds increased by $152.8 billion, or 1.5%, to $10.56 trillion in January, according to the Investment Company Institute's (ICI) survey of the mutual fund industry.
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The increase is just slightly higher than the $132.8 billion increase in December.

Long-term funds – stock, bond, and hybrid funds – had a net inflow of $46.89 billion in January, compared to an inflow of $20.4 billion in December, ICI data showed.

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Stock funds posted an inflow of $28.35 billion in January, versus $10.8 billion in December. U.S. funds that invest primarily overseas posted an inflow of $21.11 billion for the month, while funds that invest primarily in the U.S. had an inflow of $7.23 billion in January, versus an outflow of $3.42 billion in December.

Bond funds had an inflow of $15.17 billion; taxable bond funds, an inflow of $12.35 billion; and municipal bond funds, an inflow of $2.82 billion for the month.

Hybrid funds saw an inflow of $3.37 billion in January, compared to an inflow of $1.76 billion in December.

Money market funds had an ouflow of $7.88 billion in January, compared with an inflow of $41.45 billion reported in December. Funds offered primarily to institutions experienced an outflow of $24.20 billion, while funds offered primarily to individuals posted an inflow of $16.32 billion.

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