Sentence Correction

Asset allocators create portfolios, often in the form of of mutual funds, with the intention to turn in good results in both "bull" and "bear" markets.
(A) with the intention
(B) the intention of which is
(C) intended
(D) and intending
(E) so intended as

In this SC, I ignored options B,D and E for lengthy, complex and ungrammatical usage. Between A and C, I am stuck. Which option to choose? Because, A is not grammatically wrong. So why did we not select A? By the way, C is the OA. Can any expert help me in understanding the missing difference between A and C.

If you ignore the modifier set off by commas, the difference is more obvious.

Asset allocators create portfolios with the intention to turn in...

Asset allocators create portfolios intended to turn in...

By using a prepositional phrase, A links the intention to turn in good results back to the subject (asset allocators). It's not the allocators that turn in good results, it's the portfolios.

C uses a past participle to clearly refer to the portfolios.

A: Asset allocators create portfolios, often in the form of mutual funds, WITH THE INTENTION to turn in good results in both "bull" and "bear" markets.

C: Asset allocators create portfolios, often in the form of mutual funds, INTENDED to turn in good results in both "bull" and "bear" markets.

Generally, a modifier surrounded by commas is NON-ESSENTIAL and can be removed without changing the basic meaning of the sentence.
In the SC above, often in the form of mutual funds is surrounded by commas thus is NON-ESSENTIAL.
Implication:
The upper case modifiers in A and C refer not to this non-essential phrase but to the preceding CLAUSE (asset allocators create portfolios).

A prepositional modifier can serve as an ADJECTIVE or as an ADVERB.

Answer choice A, case 1: with the intention = ADJECTIVE
PORTFOLIOS WITH THE INTENTION to turn in good results.
No - PORTFOLIOS cannot have an INTENTION.

Answer choice A, case 2: with the intention = ADVERB
Asset allocators CREATE WITH THE INTENTION to turn in good results.
No -- the allocators themselves do not turn in good results; the PORTFOLIOS turn in good results.

Since neither option conveys the intended meaning, eliminate A.

Answer choice C:
Asset allocators create PORTFOLIOS INTENDED to turn in good results.
Here the meaning makes sense: the PORTFOLIOS that the allocators create are INTENDED to turn in good results.

The correct answer is C.

Please also note the following idiom issue: with the intention OF VERBing is typically preferred to with the intention TO + VERB.

Thanks GMATGURUNY and Bill. I somehow get to know the difference between the two options. Hope this will help me in solving similar problems in SC!

GMATGuruNY wrote: A prepositional modifier can serve as an ADJECTIVE or as an ADVERB.

Answer choice A, case 1: with the intention = ADJECTIVE
PORTFOLIOS WITH THE INTENTION to turn in good results.
No - PORTFOLIOS cannot have an INTENTION.

Answer choice A, case 2: with the intention = ADVERB
Asset allocators CREATE WITH THE INTENTION to turn in good results.
No -- the allocators themselves do not turn in good results; the PORTFOLIOS turn in good results.

Since neither option conveys the intended meaning, eliminate A.

Dear Mitch,

I have a question regarding about in your interpretation of case 2 .

I understood with the intention = ADVERB to as follows:

Assets allecators Create the portfolio as those allecators intend to deliver good results. So they are willing to prodcue good results. Here 'intention' belongs to human beings Not a non-human such 'portfolio' in case 1.

Why is it wrong to understand this way?

Mo2men wrote:

GMATGuruNY wrote: A prepositional modifier can serve as an ADJECTIVE or as an ADVERB.

Answer choice A, case 1: with the intention = ADJECTIVE
PORTFOLIOS WITH THE INTENTION to turn in good results.
No - PORTFOLIOS cannot have an INTENTION.

Answer choice A, case 2: with the intention = ADVERB
Asset allocators CREATE WITH THE INTENTION to turn in good results.
No -- the allocators themselves do not turn in good results; the PORTFOLIOS turn in good results.

Since neither option conveys the intended meaning, eliminate A.

Dear Mitch,

I have a question regarding about in your interpretation of case 2 .

I understood with the intention = ADVERB to as follows:

Assets allecators Create the portfolio as those allecators intend to deliver good results. So they are willing to prodcue good results. Here 'intention' belongs to human beings Not a non-human such 'portfolio' in case 1.

Why is it wrong to understand this way?

Case 2 implies that asset allocators want good results in both "bull" and "bear" markets.
This meaning is so obvious that it need not be stated.
OF COURSE asset allocators would like good results in both "bull" and "bear" markets.
The meaning conveyed by the OA is far more logical:
that the PORTFOLIOS created by asset allocators are intended to yield good results.

Regardless, with the intention + TO + VERB is idiomatically suspect.
Correct: with the intention + OF + VERBing.