Intech’s COVID-19 Response Update Read Now

Please Choose Your Country

Welcome. This website is intended solely for the use of institutional investors, consultants and other professionally recognized financial intermediaries in specific countries. Intech Investment Management LLC (“Intech”), is an investment adviser registered with the United States Securities & Exchange Commission. Intech is not permitted to offer products and services in all countries. It is the responsibility of prospective investors to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdictions, including the legal requirements and tax consequences within the countries of their citizenship, residence, domicile and place of business with respect to the acquisition, holding or disposal of shares or securities, and any foreign exchange restrictions that may be relevant thereto. The products and services referred to in this website are not offered to any person or entity in any jurisdiction where the advertisement, offer or sale of such products and services is restricted or prohibited by law or regulation or where we would be subject to any registration or licensing requirement not currently held by Intech or our affiliates. If Intech does not offer a website for your country, please visit

For U.S. and Canadian Institutional Investors Only

Information contained in this area of the Website is published solely for general informative purposes and intended only for United States and Canadian institutional investors, consultants, financial advisers, and other intermediaries who are who are knowledgeable and experienced in the financial services market and in investment products of this nature. If you are a retail, individual investor or non-ultra-high net worth individual then please leave this website immediately. The information is not authorized for use in a jurisdiction where distribution is not authorized and is not intended for distribution to retail clients, the general public or retail investors. If you choose to access this Website from locations outside of the United States or Canada, you do so at your own initiative and risk, and are responsible for compliance with all applicable laws.

U.S. Institutional Investors: By accessing this site you confirm that you are an U.S. Institutional Investor, you agree not to forward or make the contents of this site available to any person who is not an U.S. Institutional Investor, and you agree to be subject to terms of use.

Canadian Institutional Investors: By accessing this site you confirm that you are a “permitted client” as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations of the Canadian Securities Administrators, you agree not to forward or make the contents of this site available to any person who is not a “permitted client”, and you agree to be subject to terms of use. The information on this Website is for informational purposes only and does not constitute (i) an offer for products or services or (ii) the provision of investment advice of any kind, tailored or otherwise. The information on this Website should also not be construed as an offer to sell or a solicitation of an offer to buy to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. Intech Investment Management LLC (“Intech”) does not have any funds that offer securities under a simplified prospectus for general offer or sale within Canada. No securities regulatory authority in Canada has reviewed or in any way passed upon this website or the merits of any investment available, and any representation to the contrary is an offense. Intech is registered with the United States Securities & Exchange Commission under the Investment Advisers Act of 1940. Intech is a subsidiary of Janus Henderson Group plc, and is affiliated with its subsidiaries and affiliates.

Redirect Me to

We’ve enjoyed a historically long bull market, but it can’t last forever, of course. Recent volatility shocks and increasing political uncertainty serve as a reminder that corrections are difficult to predict, and impossible to protect against after the fact. Defensive equity strategies offer a long-term, strategic option to potentially mitigate those risks and their impact on multi-manager equity line-ups is clear, but how much of it do you really need?

What's Your Loss Tolerance?

Asset owners can use defensive equity strategies to substitute for either passive cap-weighted indexes or active long-only portfolios benchmarked to a cap-weighted index. But unlike traditional active strategies, defensive strategies focus on volatility reduction and lower drawdowns; therefore, the amount you allocate to your portfolio should be based on your willingness to tolerate losses.

Figure 1 demonstrates the drawdown effects that incremental allocations to a low volatility or variable beta strategy may have on your equity allocation. Asset owners with a low tolerance for large capital losses should allocate more of their equity holdings to defensive equity strategies. For example, over the last 20 years an investor unwilling to tolerate losses exceeding 40% should have allocated over 60% of his or her equity holdings to a low volatility strategy or about 70% to a variable beta strategy.

Largest Drawdown vs. Return for Hypothetical Global Blended Portfolios-1

New Frontiers

As seen in Figure 1, returns improved with incremental allocations to a low volatility or variable beta strategy. Combined with lower volatility, the higher returns offer higher Sharpe ratio potential. Yet, not all Sharpe ratios are created equally. Each of the two types of defensive equity strategies may improve it, but towards which part of the efficient frontier are they going to do so? Figure 2 demonstrates the effect incremental allocations to a low volatility or variable beta strategy may have on your risk-return profile when combined with a cap-weighted index allocation.

Volatility vs Return for Hypothetical Global Blended Portfolios 1999-2018

No Quick Fix

Of course, an investor’s time horizon matters too. The magnitude and duration of up and down markets can produce varying outcomes for these strategies. Most of these strategies tend to lag the market in sharp upturns because of the headwind faced due to beta lower than one. To make the most of their potential, asset owners should consider defensive equity strategies as part of their long-term policy allocation. These strategies are not short-term tactical solutions.

Learn More

Diversifying your equity allocation by adding defensive equity strategies is compelling, but managers use a variety of approaches to achieve those results. And a strategy name doesn’t tell the story. How do you distinguish between similar-sounding strategies? What’s more, how do they impact your overall portfolio? You can learn more by downloading our paper entitled, “Evaluating and Implementing Defensive Equity Strategies.”


Evaluating and Implementing Defensive Equity Strategies  A deeper look at defensive equity investing. Download Paper


The information expressed herein is subject to change based on market and other conditions. The views presented are for general informational purposes only and are not intended as investment advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation, or sponsorship of any company, security, advisory service, or fund nor do they purport to address the financial objectives or specific investment needs of any individual reader, investor, or organization. This information should not be used as the sole basis for investment decisions. All content is presented by the date(s) published or indicated only, and may be superseded by subsequent market events or other reasons. Past performance is no guarantee of future results. Investing involves risk, including possible loss of principal and fluctuation of value. Hypothetical performance results presented are for illustrative purposes only. Hypothetical performance is not real and has many inherent limitations. It does not reflect the results or risks associated with actual trading or the actual performance of any portfolio and has been prepared with the benefit of hindsight. Therefore, there is no guarantee that an actual portfolio would have achieved the results shown. In fact, there will be differences between hypothetical and actual results. No investor should assume that future performance will be profitable, or equal to the results shown. Hypothetical results do not reflect the deduction of advisory fees and other expenses incurred in the management of a portfolio.