WAYNE, Pa.--(BUSINESS WIRE)--Hartford Funds today announced the launch of Hartford Short Duration ETF (Cboe: HSRT), which seeks to provide current income and long-term total return by investing in fixed income securities. HSRT, along with another recently launched fixed income ETF in April 2018, the Hartford Schroders Tax-Aware Bond ETF (NYSE: HTAB), adds to Hartford Funds’ ETF suite of six fixed income and seven multifactor ETFs.
“Lower duration1 and more frequent reinvestment are strong tools to help address rising rates within a fixed income allocation, and our actively-managed Short Duration ETF is designed to deliver both,” said Vernon Meyer, Chief Investment Officer of Hartford Funds. “We see fixed income ETFs as being well-positioned for the current market, with the goals of providing income and stability to help round out a portfolio.”
Sub-advised by Wellington Management Company LLP, HSRT will typically invest in investment grade securities, but can also invest in bank loans and non-investment grade fixed income securities. The Fund will use derivatives – such as Treasury futures and interest rate swaps – to manage its interest rate risk and duration, maintaining a dollar-weighted average duration of less than three years. HSRT’s expense ratio is 0.29%.
The Short Duration investment team manages roughly $31.9 Billion in assets (as of 3/31/18). Timothy Smith, Senior Managing Director and Fixed-Income Portfolio Manager at Wellington Management, is the portfolio manager on the Fund.
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 March 31, 2018, Hartford Funds Management Company, LLC and its wholly owned subsidiary, Lattice Strategies LLC, had approximately $115.4 billion in discretionary and non-discretionary assets under management. For more information about our investment family, visit http://www.hartfordfunds.com.
About Wellington Management
Wellington Management Company, LLP, is one of the world’s largest independent investment management firms, overseeing US$1,078 billion as of March 31, 2018. As a private firm whose sole business is investment management, it seeks a long-term view and alignment of its interests with those of its clients. The firm’s investment solutions are built on the strength of proprietary, independent research and span nearly all segments of the global capital markets, including equity, fixed income, multi-asset, and alternative strategies. Wellington Management serves clients in more than 60 countries. Firm assets include assets under management and non-discretionary assets.
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.
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1 “Duration” is a measure of the sensitivity of an investment's price to nominal interest-rate movement.
Important Risks: The fund is new and has a limited operating history. Investing involves risk, including the possible loss of principal. There is no guarantee a fund will achieve its stated objective. As part of its investment strategy, the fund may allocate a portion of its assets among specialist portfolio managers. The net asset value (NAV) of the fund’s shares may fluctuate due to changes in the market value of the fund’s holdings. The fund’s share price may fluctuate due to changes in the relative supply of and demand for the shares on an exchange. The fund is actively managed and does not seek to replicate the performance of a specified index. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Loans can be difficult to value and highly illiquid; they are also subject to nonpayment, collateral, bankruptcy, default, extension, prepayment and insolvency risks. • 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. • Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • The risks associated with mortgage related- and asset-backed securities as well as collateralized loan obligations (CLOs) include credit, interest-rate, prepayment, liquidity, default and extension risk. • Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, and counterparty risk. • 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. • Privately placed, restricted (Rule 144A) securities may be more difficult to sell and price than other securities. • In certain instances, unlike other ETFs, the fund may effect creations and redemptions partly or wholly for cash, rather than in-kind, which may make the fund less tax-efficient and incur more fees than a more conventional ETF.
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 may be provided by Hartford Funds Management Company, LLC (HFMC) or 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.