Reduces Management Fees on ETF Suite by an Average of
28%
Hartford Funds celebrated the three-year anniversary of three of
its Multifactor ETFs on February 25: Hartford Multifactor Developed
Markets (ex-US) ETF (RODM), Hartford Multifactor US Equity ETF
(ROUS), and Hartford Multifactor Emerging Markets ETF (ROAM). The
milestone was marked by the reduction of management fees across six
of the seven MultiFactor ETFs, which is designed to lower costs for
investors.
“Our risk-first investment approach is designed to allow
advisors the ability to build more robust portfolios that are
intentional about emphasizing rewarded risks, while seeking to
control undesirable risks,” said Ted Lucas, Head of Investment
Strategies and Solutions for Hartford Funds. “We foresee a
progressively challenging investment environment and believe
advisors should be positioning their clients accordingly –
enhancing their potential for capital growth, while aggressively
managing cost and tax drag.”
Hartford Funds’ Multifactor ETFs seek to outperform traditional
passive benchmarks while delivering the potential benefits of lower
cost, transparency, and tax efficiency offered within an ETF
wrapper. Its flagship, RODM, was awarded a Five Star Overall Rating
by Morningstar (Out of 605 products in the Foreign Large Blend
Category based on Risk-Adjusted Returns as of 2/28/18)1.
Since inception on 2/25/15 through 2/28/18, RODM ranked among
the second quintile for the one-year period and top decile for the
three-year period out of 746 and 661 funds, respectively. The
ranking was based on RODM’s NAV return in the Morningstar Foreign
Large Blend Category. Morningstar fund rankings are based on total
returns of all products within their peer groups.2
Hartford Funds is lowering management fees on six of its seven
Multifactor ETFs. As a result of these reductions, as of 2/15/18,
the operating expense ratios for Hartford Funds’ Multifactor ETFs
now rank near the lowest one-third of all ETFs within their
respective categories and among the least expensive 5% when
compared to institutional share classes of all actively managed
mutual funds.3
Ticker Name
Prospectus Expense
Ratio (effective February 15, 2018)
ProspectusExpense
Ratio (prior to February 15, 2018)
Multifactor ETFs
ROUS Hartford Multifactor US
Equity ETF
0.19% 0.29% RODM
Hartford Multifactor Developed Markets (ex-US) ETF
0.29% 0.39% ROGS
Hartford Multifactor Global Small Cap ETF
0.39% 0.55% ROAM Hartford
Multifactor Emerging Markets ETF
0.49%
0.59%
Low Volatility Multifactor
ETFs LVIN
Hartford Multifactor Low Volatility International Equity ETF
0.29% 0.39% LVUS
Hartford Multifactor Low Volatility US Equity ETF
0.22% 0.29%
Multifactor Sector ETF
RORE Hartford US REIT ETF
0.45% 0.45%
Past performance is not a guarantee of future results.
Ordinary brokerage commissions apply. Brokerage commissions will
reduce returns.
Transparency: The ability to see holdings information in real
time. Hartford Multifactor ETFs publish holdings every market
day.
Tax-efficiency: An attempt to minimize tax liability through
reduced portfolio turnover, the creation/redemption process and by
other means.
1 Morningstar Star Ratings: 3-year 5 stars out of 605 products
for the period ended 2/28/18. The Morningstar RatingTM for funds,
or “star rating”, is calculated for funds and separate accounts
with at least a 3-year history. Exchange-traded funds and
open-ended mutual funds are considered a single population for
comparative purposes. Star rating based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a
managed product’s monthly excess performance (without adjusting for
any sales load, if applicable), placing more emphasis on downward
variations and rewarding consistent performance. 5 stars are
assigned to the top 10%, 4 stars to the next 22.5%, 3 stars to the
next 35%, 2 stars to the next 22.5%, and 1 star to the bottom 10%.
Overall Morningstar Rating is derived from a weighted average of
the performance figures associated with its 3-, 5-, and 10-year (if
applicable) Morningstar Rating metrics. For more information about
the Morningstar Fund Ratings, including their methodology, please
go to global.morningstar.com/managerdisclosures. © 2018
Morningstar, Inc. All rights reserved. The information contained
herein: (1) is proprietary to Morningstar and/ or its content
providers; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses
arising from any use of this information.
2 Morningstar uses total returns based on net asset values,
instead of market prices, for the ETF rating. These returns are
most comparable to open-end fund returns and do not rely on market
data that could potentially be stale.
The fund did not have negative performance during the reporting
period.
3 Source: Morningstar Direct
Investing involves risk, including the possible loss of
principal. There is no guarantee a fund will achieve its stated
objective. Security prices fluctuate in value depending on general
market and economic conditions and the prospects of individual
companies. •Foreign investments may be more volatile and less
liquid than U.S. investments and are subject to the risk of
currency fluctuations and adverse political and economic
developments. •Due to their investment strategies, the funds may
make higher capital gain distributions than other ETFs.
Investors should carefully consider a fund’s investment
objectives, risks, charges and expenses. This and other important
information is contained in a fund’s full 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 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.
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 line-up includes more than 55 mutual funds in a
variety of styles and asset classes, as well as a variety of
multifactor and active ETFs. 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 December 31, 2017, Hartford Funds Management
Company, LLC and its wholly owned subsidiary, Lattice Strategies
LLC, had approximately $115.3 billion in discretionary and
non-discretionary assets under management. For more information
about our investment family, visit
http://www.hartfordfunds.com.
HIG-W
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 2017 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
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Alerts" section at http://ir.thehartford.com.
205699HFA0002713/6/19
© 2018 by The Hartford. Classification:
Internally Controlled. All rights reserved.
No part of this document may be reproduced,
published or used without the permission of The Hartford.
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For Hartford Funds:Robin Pertusi,
347-719-4527rpertusi@prosek.com
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