Hartford Funds Advances Plans for Offering Active Semi-Transparent ETFs
Hartford Funds announced today that the firm is advancing its plan to offer active semi-transparent ETFs by filing for an exemptive order to allow it to launch products using Fidelity Investments’ active equity ETF methodology, which Hartford Funds has agreed to license from Fidelity.
Fidelity’s active equity ETF model employs an innovative “tracking basket” methodology, which maintains the benefits of the ETF structure, provides information to market participants to promote efficient trading of shares, and preserves the ability to add value through active management.
“This relationship with Fidelity gives us the opportunity to expand and strengthen the options we’re offering to our clients and the broader marketplace,” said Vernon Meyer, Chief Investment Officer at Hartford Funds. “By leveraging the active equity ETF model, we can deliver the benefits of active management in a tax-efficient and cost-effective wrapper to both financial professionals and investors.”
“We are excited to partner with Hartford Funds as they license Fidelity’s active equity ETF methodology and work to develop a new offering to help meet the evolving needs of their clients,” said Greg Friedman, Head of ETF Management and Strategy at Fidelity. “Our innovative methodology is designed to operate seamlessly within the existing ETF market.”
For more information on Hartford Funds’ ETF product offerings, please visit www.hartfordfunds.com.
About Hartford Funds
Founded in 1996, Hartford Funds is a leading asset manager, which provides mutual funds, ETFs, and 529 college savings plans. Using its human-centric investing approach, Hartford Funds creates strategies and tools designed to address the needs and wants of investors. Leveraging partnerships with leading experts, Hartford Funds delivers insight into the latest demographic trends and investor behavior.
The firm’s product line-up includes more than 50 mutual funds and ETFs in a variety of styles and asset classes. Its mutual funds (with the exception of certain fund of funds) are sub-advised by Wellington Management or Schroder Investment Management North America Inc. The strategic beta ETFs offered by Hartford Funds are designed to help address investors’ evolving needs by leveraging a unique risk-optimized approach, which identifies risks within each asset class and then deliberately and systematically re-allocates capital toward risks more likely to enhance return potential. Excluding affiliated funds of funds, as of March 31, 2021, Hartford Funds’ investment advisory business had approximately $145.2 billion in discretionary and non-discretionary assets under management. For more information about our investment family, visit http://www.hartfordfunds.com.
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in The Hartford’s Quarterly Reports on Form 10-Q, our 2020 Annual Report on Form 10-K and the other filings The Hartford makes with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.
From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at http://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the “Email Alerts” section at http://ir.thehartford.com.
Important Risks: Investing involves risk, including the possible loss of principal.
Investors should carefully consider a fund’s investment objectives, risks, charges and expenses. This and other important information is contained in the fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.
Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA. Exchange traded products are distributed by ALPS Distributors, Inc. (ALPS). Advisory services are provided by Hartford Funds Management Company, LLC (HFMC) and its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc. Schroder Investment Management North America Ltd. serves as a secondary sub-adviser to certain funds. Hartford Funds refers to HFD, HFMC, and Lattice, which are not affiliated with any sub-adviser or ALPS.
The “tracking basket” methodology maintains confidentiality of a portfolio’s securities and trading strategies by disclosing a “tracking basket” comprised of select recently disclosed portfolio holdings, liquid U.S. ETFs that convey information about the types of instruments in which the fund invests, and cash and cash equivalents. This “tracking basket” is disclosed daily and is used to facilitate the creation and redemption process. Each ETF’s portfolio holdings will be disclosed on its website on a monthly basis with a 30-day lag.
No products or investment vehicles offered by HARTFORD FUNDS are sponsored, endorsed, sold, or promoted by FIDELITY or any of its affiliates.
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