Hartford Funds Expands Fixed Income Offerings with Launch of Municipal Bond ETF
December 14 2017 - 9:00AM
Business Wire
Hartford Funds today announced the listing of its fourth
actively managed fixed income and 11th overall exchange-traded fund
(“ETF”), Hartford Municipal Opportunities ETF (NYSE: HMOP).
Sub-advised by Wellington Management Company LLP (“Wellington
Management”), this actively managed ETF is designed to provide
financial advisors and their clients with an investing strategy
that seeks tax-exempt income by investing in opportunities in
investment grade and high-yield municipal bonds.
“Investors are very tax-aware and, as interest rates go up,
advisors are seeking fixed income strategies with the potential for
greater after-tax returns and income,” said Vernon Meyer, Chief
Investment Officer of Hartford Funds. “HMOP offers a diversified
option for this challenge in a more tax-efficient ETF, while
tapping into Wellington’s deep knowledge of managing municipal
funds backed by credit research expertise.”
HMOP offers an actively managed municipal bond strategy that
invests in investment grade and non-investment grade municipal
securities across states, sectors, and different parts of the yield
curve. The strategy seeks to deliver current income generally
exempt from federal income taxes and long-term total return. HMOP
has an expense ratio of 0.35 percent.
Wellington Management’s Brad W. Libby, Managing Director and
Fixed Income Portfolio Manager/Credit Analyst, and Timothy D.
Haney, CFA, Senior Managing Director and Fixed Income Portfolio
Manager, and, will serve as the portfolio managers of the Hartford
Municipal Opportunities 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, 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. As of September 30, 2017,
Hartford Funds had approximately $95.6 billion (excluding assets
used in certain annuity products) in discretionary and
non-discretionary assets under management. For more information
about our investment family, visit
http://www.hartfordfunds.com.
A "yield curve" represents a set of interest rates for a series
of maturity dates.
"Tax-efficient" refers to minimized tax liability.
Important Risks: The Fund is new and has a limited operating
history. All investments are subject to risk, including the
possible loss of principal. There is no guarantee the Fund will
achieve its stated objective. The net asset value (NAV) of the
Fund's shares may fluctuate due to changes in the market value of
the Fund's holdings, as well as 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 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. Investments in high-yield
("junk") bonds involve greater risk of price volatility,
illiquidity, and default than higher-rated debt securities.
Municipal securities may be adversely impacted by state/local,
political, economic, or market conditions. Investors may be subject
to the federal Alternative Minimum Tax as well as state and local
income taxes. Capital gains, if any, are taxable.
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, 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),
the mutual funds’ distributor, Hartford Funds Distributors, LLC,
Member FINRA, as well as Lattice Strategies LLC, a wholly owned
subsidiary of HFMC, which serves as the investment adviser to
strategic beta exchange-traded funds (ETFs). 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. All ETFs are distributed by ALPS Distributors, Inc.
(ALPS). Hartford Funds is not affiliated with any fund sub-adviser
or ALPS.
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 2016 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.
204342
HFA000224 12/15/18
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version on businesswire.com: http://www.businesswire.com/news/home/20171214005029/en/
For Hartford FundsMeg McDermott, 212-279-3115
x238mmcdermott@prosek.com
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