Hartford Funds Expands Fixed Income Lineup with Securitized Income Fund
Hartford Funds Expands Fixed Income Lineup with Securitized Income Fund
Wayne, Penn. – March 4, 2019 – Hartford Funds today announced that it has launched the Hartford Schroders Securitized Income Fund (ticker: HITIX). Sub-advised by Schroder Investment Management North America Inc., the Hartford Schroders Securitized Income Fund seeks to provide current income and long-term total return consistent with preservation of capital by investing in securitized credit instruments. The Fund complements Hartford Funds’ collection of fixed income funds that invest across the yield curve in varying regions, sectors, and asset classes.
“Securitized credit has historically provided investors an avenue to higher potential returns while seeking to eliminate some downside risk,” said Vernon Meyer, Chief Investment Officer of Hartford Funds. “Leveraging Schroders’ institutional expertise in this space, we believe this solution is uniquely positioned to help retail investors achieve core portfolio construction needs: Emphasizing fixed income diversification beyond corporate credit, and seeking income and attractive total returns while offering capital preservation.”
Using a research-oriented process featuring a top-down examination of the markets, economy, and risk compensation, the Fund will invest in U.S. and foreign fixed and floating rate securitized credit instruments, including commercial mortgage-backed securities, asset backed securities, agency and non-agency residential mortgage-backed securities, collateralized loan obligations, collateralized mortgage obligations, and uniform mortgage-backed securities.
Michelle Russell-Dowe, Head of Securitized Credit at Schroders, will serve with Anthony Breaks as the Fund’s portfolio managers.
“We believe from a fundamental, technical, and valuation perspective, securitized products offer a unique opportunity today to provide income, and that our use of data and analytics enables us to effectively manage and monitor the downside of the asset class,” said Russell-Dowe. “We are also excited by the opportunities we believe are available to the Fund in the current cycle, where regulation of housing and consumers has resulted in balance sheet deleveraging for the consumer at a time when corporate securities appear to be uniquely leveraged.”
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, 2018, Hartford Funds Management Company, LLC and its wholly owned subsidiary, Lattice Strategies LLC, had approximately $104.8 billion in discretionary and non-discretionary assets under management. For more information about our investment family, visit http://www.hartfordfunds.com.
As a global investment manager, we help institutions, intermediaries and individuals meet their goals, fulfil their ambitions, and prepare for the future. But as the world changes, so do our clients’ needs. That’s why we have a long history of adapting to suit the times and keeping our focus on what matters most to our clients.
Doing this takes experience and expertise. We bring together people and data to spot the trends that will shape the future. This provides a unique perspective which allows us to always invest with conviction. We are responsible for £449.4 billion (€508.2 billion/$593.3 billion)* of assets for our clients who trust us to deliver sustainable returns. We remain determined to build future prosperity for them, and for all of society. Today, we have 4,600 people across six continents who focus on doing just this.
We are a global business that’s managed locally. This allows us to always keep our clients’ needs at the heart of everything we do. For over 210 years and more than seven generations we’ve grown and developed our expertise in tandem with our clients’ needs and interests.
Further information about Schroders can be found at www.schroders.com/us.
Schroder Investment Management North America Inc. (“SIMNA”) is an indirect wholly owned subsidiary of Schroders plc, a UK public company with shares listed on the London Stock Exchange, and is an SEC registered investment adviser providing asset management products and services to clients in the US and Canada. Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and markets certain investment vehicles for which SIMNA Inc. is an investment adviser. The Schroder mutual funds (the “Funds”) are distributed by SEI Investments Distribution Co (“SIDCO”), a member of FINRA. SFA previously served as the distributor of the Funds. Although SFA has been replaced by SIDCO as the distributor of the Funds, SFA continues to be involved in the distribution of shares of the Funds through an agreement with SIDCO, and SFA, SIMNA and their affiliates continue to provide shareholder services to the Funds. SIDCO is not an affiliate of Schroders plc.
*as of June 30, 2018
Important Risks: Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ●Fixed income security risks include credit, liquidity, call, duration, event and interest-rate risk. As interest rates rise, bond prices generally fall. ● Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. ●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. ●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. ●The purchase of securities in the To-Be-Announced (TBA) market can result in additional price and counterparty risk. ●The Fund may use repurchase agreements, or reverse repurchase agreements, which can increase risk and volatility ● Use of leverage can increase market exposure, magnify investment risks, and cause losses to be realized more quickly. ●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. ●Restricted securities may be more difficult to sell and price than other securities. Diversification does not ensure a profit or protect against a loss in a declining market.
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, 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.
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 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.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.