RADNOR, Pa.--(BUSINESS WIRE)--Hartford Funds today announced that it has entered into a preliminary agreement with Navigate Fund Solutions LLC (“Navigate”), a subsidiary of Eaton Vance Corp. (NYSE:EV), to support the launch by Hartford Funds of a family of NextShares™ exchange-traded managed funds.
“We are pleased to be an early adopter of NextShares,” said James E. Davey, President, Hartford Funds. “As an asset management firm with a strong focus on the success of its investors, we believe that NextShares have the potential to help financial advisors enable their clients to reach their life goals.”
NextShares are a new type of exchange-traded product designed to provide investors with potentially better performance and enhanced tax efficiency by leveraging the best features of actively managed mutual funds and exchange-traded funds (“ETFs”). Like active mutual funds, NextShares seek to outperform their benchmark index and peer funds based on their manager’s investment insights and research judgments. Like ETFs, NextShares will utilize an exchange-traded structure with built-in cost and tax advantages. Compared to actively managed ETFs, NextShares offer the potential benefits of protecting the confidentiality of fund trading information and providing trading cost transparency to fund investors. Learn more by visiting nextshares.com.
“We are looking forward to working with the leadership of Hartford Funds to introduce their NextShares to investors and the financial advisors who serve them,” said Stephen W. Clarke, President of Navigate.
About Hartford Funds
Founded in 1996, Hartford Funds Management Company is a leading provider of mutual funds. The Company offers a broad range of actively managed investment strategies designed to provide solutions for a variety of investment needs. Hartford Funds Management Company has mutual fund assets under management of $73.0 billion as of December 31, 2014 (excluding assets used in certain annuity products). For more information about the fund family, visit www.hartfordfunds.com. Hartford Funds Management Group, Inc., Hartford Funds Management Company, LLC and their affiliates are subsidiaries of The Hartford Financial Services Group Inc.
About Navigate and Eaton Vance
Navigate is a wholly owned subsidiary of Eaton Vance Corp. formed to develop and commercialize NextShares. Aspects of the operation of NextShares are protected intellectual property owned by Navigate.
Eaton Vance Corp. is one of the oldest investment management firms in the United States, with a history dating to 1924. Eaton Vance and its affiliates managed $296.0 billion in assets as of December 31, 2014, offering individuals and institutions a broad array of investment strategies and wealth management solutions. For more information, see eatonvance.com.
This press release is for information purposes only and is not intended to constitute, and should not be construed as, an offer to sell securities. The agreement described herein is preliminary in nature and non-binding, so therefore may not be executed. The launch of NextShares funds by Hartford Funds Management Group, Inc. and its affiliates is conditional upon regulatory approval, the likelihood and timing of which cannot be predicted. Commercial success also requires completion of enabling implementation technology and acceptance by market participants, which cannot be assured. Like mutual funds, NextShares will not offer investors the opportunity to buy and sell intraday based on current (versus end-of-day) determinations of fund value. NextShares trade execution prices will fluctuate based on changes in NAV and may vary significantly from anticipated levels during periods of market volatility. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Buying and selling NextShares may require payment of brokerage commissions and expose transacting shareholders to other trading costs. Market trading prices of NextShares may be above, at or below NAV, will fluctuate in relation to NAV based on supply and demand in the market for shares and other factors, and may vary significantly from NAV. The return on a shareholder’s NextShares investment will be reduced if the shareholder sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares. The performance of actively managed NextShares will depend in part on the portfolio managers’ successful application of analytical skill and investment judgment. A NextShares fund is not a complete investment program, and there is no guarantee that it will achieve its investment objective. It is possible to lose money on an investment in NextShares. Investors in NextShares should have a long-term investment perspective and be able to tolerate potentially sharp declines in value. An investment in NextShares is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person.
All investments are subject to risks, including possible loss of principal.