- Seeks to provide the opportunity to improve returns through a complete market cycle with up to 25% less volatility versus the developed (excluding US) and emerging market capitalization-weighted universe
- Focuses on selecting stocks with low volatility characteristics while seeking to maintain positive exposure to value, momentum, and quality factors at the index level
- Risk-balanced sector weighting seeks to improve diversification
Description of Methodology
Hartford Multifactor Low Volatility International Equity Index (LLVINX or the “Index”) seeks to address risks and opportunities within developed (excluding the US) and emerging market stocks by selecting equity securities exhibiting low volatility and constructing the portfolio in a way that is designed to improve overall exposure to value, momentum, quality and size factors. The Index seeks to provide a means of improving returns through a complete market cycle with up to 25% less volatility versus the developed (excluding the US) and emerging market capitalization-weighted universe. The rules-based, proprietary methodology employs a multi-layered risk-controlled approach that seeks to improve diversification, balance risk across sectors by utilizing expected tail loss (ETL) estimations, and reduce volatility through security selection and portfolio composition. Expected tail loss is an estimation process that seeks to measure potential loss during turbulent markets and is based on the relative historical performance of each sector. The methodology utilizes an optimization process to help achieve the desired composition and targeted characteristics.
(as of 10/31/2018)
|Total of Top 10 Countries(%)||69|
|Other (26 countries)|
|Return on Equity||14.3%|
|Debt to Equity||88.0%|
|Index Dividend Yield (%)||3.24|
Top Ten Holdings (%)
|Parkland Fuel Corp||0.59|
|Soda Sanayii AS||0.55|
|Total of Top Ten Holdings||5.97|
|Index||MSCI ACWI ex USA Index|
|Less than $2B||11||12|
|$2B - $10B||35||36|
|$10B - $100B||47||46|
|Greater than $100B||7||7|
% (as of 11/30/2018)
Average Annual Total Returns % (as of 11/30/2018)
|Hartford Multifactor Low Volatility International Equity Index||-5.87||-3.76||---||---||9.93|
% (as of 9/30/2018)
Average Annual Total Returns % (as of 9/30/2018)
|Hartford Multifactor Low Volatility International Equity Index||-0.40||5.24||---||---||14.58|
Past performance is not indicative of future results.
Indices are unmanaged and not available for direct investment.
|Inception||December 31, 2016|
|Current Index Value||1162.52|
|Last Closing Level||1161.10|
|Number Of Holdings||365|
Hartford Multifactor Low Volatility International Equity Index is the exclusive property of Lattice Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Lattice Strategies, Solactive AG has no obligation to point out errors in the Index to third parties.
Index returns do not represent actual fund or portfolio returns. A fund or portfolio may differ significantly from the index. The index does not reflect any management fees, transaction fees, brokerage expenses, or other expenses that may reduce returns. Index returns assume that dividends have been reinvested. Investors cannot invest directly in the Index.
A WORD ABOUT RISK
There are risks associated with investing, including the possible loss of principal. There is no assurance that any strategy will achieve its investment objectives.
Sources for all data: Bloomberg and Hartford Funds.