Hartford Funds, a leading asset management firm, has announced that it will close and liquidate two exchange-traded funds.
Hartford Funds commitment to responding to investors’ needs includes a regular review of its product lineup, which has led to a decision to liquidate the following funds: Hartford Multifactor REIT ETF (RORE) and Hartford Multifactor Low Volatility US Equity ETF (LVUS), each a series of Lattice Strategies Trust (each a “Fund” and, collectively, the “Funds”).
August 7, 2020 is expected to be the last full day of trading on NYSE Arca, Inc. (“NYSE Arca”) for Hartford Multifactor REIT ETF and on Cboe BZX Exchange, Inc. (“Cboe BZX”) for Hartford Multifactor Low Volatility US Equity ETF. Effective as of the close of business on August 7, 2020, the Funds will no longer accept orders for the purchase of Creation Units. Beginning when the Funds commence the liquidation of their portfolios, the Funds may not pursue their respective investment objectives or, with certain exceptions, engage in normal business activities, and each Fund may hold cash and securities that may not be consistent with that Fund’s investment objective and strategy, which may adversely affect Fund performance. As a result, the Fund’s tracking error relative to its custom benchmark index may increase.
The liquidation date for the Funds will be on or about August 14, 2020 (“Liquidation Date”). NYSE Arca and Cboe BZX, as applicable, are expected to halt trading in shares of each Fund after the market close on August 7, 2020. There is not expected to be any market for the purchase or sale of Fund shares during the time between the market close on August 7, 2020 and the Liquidation Date, because Fund shares will not be traded on NYSE Arca or Cboe BZX, as applicable. Shareholders of each Fund may sell their shares of the Fund on NYSE Arca or Cboe BZX, as applicable, until the market close on August 7, 2020, and may incur customary transaction fees from their broker-dealer in connection with such sales. Prior to the Liquidation Date, authorized participants may continue to submit orders to the Funds for the redemption of Creation Units.
In connection with the liquidations, any shares of a Fund outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date without the imposition of customary redemption transaction fees. The proceeds of any such redemption will be equal to the net asset value of such shares after the Fund has paid or provided for all of its charges, taxes, expenses and liabilities, including certain operational costs of liquidating the Fund. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable, and will be made to all Fund shareholders at the time of the liquidation.
Although the liquidations are not expected to be taxable events for the Funds, for taxable shareholders, the automatic redemption of shares of the Funds on the Liquidation Date will generally be treated as a sale that may result in a gain or loss for federal income tax purposes. Please consult your personal tax advisor about the potential tax consequences.
For additional information about the liquidations, shareholders of the Funds may call (800)-456-7526.
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 50 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, 2020, Hartford Funds Management Company, LLC and its wholly owned subsidiary, Lattice Strategies LLC, had approximately $102.2 billion in discretionary and non-discretionary assets under management. For more information about our investment family, visit www.hartfordfunds.com.
Investing involves risk, including the possible loss of principal.
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 2018 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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