RADNOR, Pa.--(BUSINESS WIRE)--Hartford Funds today announced the launch of two new actively managed fixed income Exchange Traded Funds (ETFs), Hartford Quality Bond ETF (ticker: HQBD) and Hartford Corporate Bond ETF (ticker: HCOR). Sub-advised by Wellington Management Company LLP, the actively managed ETFs package core fixed income strategies within ETF wrappers, offering another choice for investors looking to meet their long-term goals.
“In response to advisors’ call for a broad range of investment options, we’ve decided to further diversify our ETF lineup and enter the actively managed ETF space with two fixed income products,” said Vernon Meyer, Chief Investment Officer of Hartford Funds. “By fusing our ETF capabilities with the investment skill of Wellington Management, we are looking to maximize the value Hartford Funds can offer to investors.”
Both new ETFs leverage Wellington Management’s deep fixed income research and portfolio management capabilities, while also supplying the potential benefits of ETF transparency, cost and tax-efficiency.
Hartford Quality Bond ETF seeks to maximize total return while providing a high level of current income consistent with prudent investment risk. The fund is a conservative core bond fund with an emphasis on investment grade debt, including US Governments and mortgage-backed securities. Hartford Corporate Bond ETF offers corporate bond exposure through a bottom-up strategy of predominantly investment grade corporate bonds and seeks to provide total return, with income as a secondary objective.
Wellington Management’s Michael Garrett, Senior Managing Director and Fixed Income Portfolio Manager, Val Petrov, PhD, CFA, Managing Director and Fixed Income Portfolio Manager, and Brian Conroy, CFA, Assistant Vice President and Fixed Income Portfolio Manager, will manage the Hartford Quality Bond ETF. Wellington Management’s Craig Gainey, CFA, Senior Managing Director, Partner and Fixed Income Portfolio Manager and Credit Analyst, will manage the Hartford Corporate Bond ETF.
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, and 7 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 5 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. Hartford Funds has mutual fund assets under management of $81.5 billion as of December 31, 2016 (excluding assets used in certain annuity products). For more information about our investment family, visit www.hartfordfunds.com.
All investments are subject to risk, including the possible loss of principal. There is no guarantee the funds will achieve their stated objectives. The net asset value (NAV) of the funds’ shares may fluctuate due to changes in the market value of the funds’ holdings, as well as the relative supply of and demand for the shares on an exchange. The funds are actively managed and do not seek to replicate the performance of a specified index. Fixed Income risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall; these risks are currently heightened because interest rates are at, or near, historical lows. Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. Mortgage- and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. In certain instances, unlike other ETFs, the funds may effect creations and redemptions partly or wholly for cash, rather than in-kind, which may make the funds less tax-efficient and incur more fees than a more conventional ETF. Ordinary brokerage commissions apply.
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 (if available), which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.
Hartford Funds refers to Hartford Funds Management Group, Inc., and its subsidiaries, including the mutual funds’ and active ETFs’ investment manager, Hartford Funds Management Company, LLC (“HFMC”) and the mutual funds’ distributor, Hartford Funds Distributors, LLC, as well as Lattice Strategies LLC (“Lattice”), a wholly owned subsidiary of HFMC effective July 29, 2016. Lattice is the investment adviser to the strategic beta ETFs. All ETFs are distributed by ALPS Distributors, Inc., which is not affiliated with Lattice or Hartford Funds. “The Hartford” is The Hartford Financial Services Group Inc. and its subsidiaries. Hartford Funds Distributors, LLC is a subsidiary of The Hartford Financial Services Group Inc.
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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 2015 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.
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