Integra Capital Ltd. has entered into an agreement with California-based Analytic Investors to represent Analytic’s global and U.S. low-volatility equity strategies in the Canadian institutional market.
Integra will launch pooled fund investment vehicles incorporating Analytic’s strategies, which use a proprietary risk forecasting and optimization process that’s designed to achieve a more effective risk/return trade-off than a capitalization-weighted approach.
The strategies—which are designed to outperform in falling markets, keep pace in normal markets and lag in sharply rising markets—produce a higher annualized return over a full market cycle with substantially less risk.
Between June 2011 and September 2011, Analytic’s U.S. low-volatility equity strategy outperformed the Russell 1000 Index by 9.8% (gross of fees) and 9.7% (net of fees). In that same time period, the global low-volatility equity strategy outperformed the MSCI World Index by 10.7% (gross of fees) and 10.6% (net of fees).
Analytic has been managing its U.S. low-volatility equity strategy since 2004 and the global low-volatility equity strategy since 2006.
As of Sept. 30, 2011, Analytic has $5.7 billion in total assets under management, and Integra has $3.2 billion in total assets.