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.

Decline - Redirect me to

Investor optimism appears to be on the rise as economies have begun reopening around the world. Both fiscal and monetary stimulus have boosted valuations, and the second quarter saw a dramatic recovery in global equity markets. Though the S&P registered its best quarter since 1998, rebounding 39%, it still wasn’t quite enough to erase the first quarter’s pandemic-related 34% drawdown.

1 - YTD Drawdown

While the robustness of the rebound’s structural footing is up for debate, its leadership among mega-cap stocks is not. Capital concentration, a measure of how capital is distributed between stocks within an index, steadily increased (capital moved toward the larger-cap stocks) in the second quarter. This effect was especially prevalent in the U.S., where the S&P 500 is now at the 87th percentile of capital concentration – an extreme level based on the past 40 years. As seen in the figure below, this metric ebbs and flows over time, but does not tend to stay near historical extremes for too long.

2 - Capital Concentration - SP 500 Index
The increase in capital concentration has been especially substantial in large growth-oriented technology stocks. Technology’s weight in the Russell 1000 Growth Index has ballooned to an astonishing 44% with the latest reconstitution. This is nearly double the level seen in 2016, and a massive rise since the reclassification of Alphabet and Facebook to the communication services sector.

3 - Information Technology – Russell 1000 Growth Index
As you might expect by the increasing weight, technology has been the best-performing sector in the Russell 1000 Growth as well. Despite February and March’s substantial decline, tech has led this index to a nearly 10% return in the first half of 2020 – a truly astonishing figure in the midst of a global recession.

4 - YTD Best and Worst Performing Sectors
This narrow rally has rewarded narrow portfolios and challenged active managers who take a more diversified, risk-managed approach. But we see in our historical observations that we have been here before, and reversals can and do happen. While these effects may continue in the near term, we remain confident that the incremental value added from diversification and the benefits of controlling sector exposure and systematic risk will continue to pay off over time.

Dive Deeper

Beyond the increase in capital concentration we’ve just discussed, we’ve also seen both correlation and dispersion of returns increase substantially over the past year in U.S. and non-U.S. indexes. Check out the Intech Equity Market Stress Monitor® for an interactive look at how this and other indicators have moved over time – and what it means for market risk.


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.