Objective
- Balance risk across emerging market countries, currencies and companies
- Reduce concentrations in larger, export-driven emerging market economies, global multi-nationals, and state-owned enterprises.
- Increase exposure to smaller, more locally driven emerging economies
- Select companies with favorable valuation, momentum, and quality characteristics
- Seek improved returns relative to capitalization-weighted emerging markets indexes with similar risk
Description of Methodology
The rules-based proprietary methodology employs a multi-layered risk allocation approach that first de-concentrates exposures by balancing risk across the equities within each country and then seeks to balance downside risk contribution across all countries in the emerging markets universe. From the risk-balanced baseline, the methodology selects companies with favorable diversified risk premia expression, including value, momentum and quality characteristics. The Index seeks to harvest mean reversion opportunities and risk premia factors through systematic risk- and factor-weighting twice annually, through systematic reconstitution (in March) and rebalancing (in September).
Country Allocation(%)
(as of 6/30/2018)
| Taiwan | 10.84 | |
| China | 10.36 | |
| South Korea | 10.17 | |
| Thailand | 8.30 | |
| Malaysia | 7.34 | |
| India | 6.88 | |
| Indonesia | 6.49 | |
| Poland | 5.74 | |
| Philippines | 5.37 | |
| South Africa | 5.30 | |
| Total of Top 10 Countries(%) | 76.78 | |
| Other (6 countries) | ||
Country allocations are subject to change.
| Fund | |
|---|---|
| Price-to-Book | 1.27 |
| Price-to-Earnings | 11.73 |
| Return on Equity(%) | 11.52 |
| Debt to Equity | 1.09 |
| Dividend Yield(%) | 3.13 |
| Nominal Countries | 16 |
| Effective Countries | 14 |
| Nominal Companies | 326 |
| Effective Companies | 215 |
| Index | |
|---|---|
| Less than $2B | 16.1 |
| $2B - $10B | 55.7 |
| $10B - $100B | 26.5 |
| Greater than $100B | 1.7 |
Top Ten Holdings (%)
| Infosys Ltd | 1.26 |
| Icici Bank Ltd | 0.99 |
| Samsung Electronics Co Ltd | 0.95 |
| Reliance Industries Ltd | 0.93 |
| Malayan Banking Bhd Maybank | 0.91 |
| Banco Davivienda SA | 0.91 |
| Wal-Mart De Mexico SA De Cv, Mexico | 0.87 |
| Dr Reddy'S Laboratories Ltd | 0.87 |
| H D F C Bank Ltd | 0.86 |
| Interconexion Electrica Sa Esp, Bogota | 0.84 |
| Total of Top Ten Holdings | 9.40 |
Holdings are subject to change. Percentages may be rounded.
| Sectors | 5/31/2018 | 6/30/2018 |
|---|---|---|
| Financials | 32.4 | 32.1 |
| Consumer Staples | 9.9 | 10.2 |
| Telecommunication Services | 6.7 | 6.8 |
| Utilities | 4.7 | 4.8 |
| Energy | 9.3 | 9.5 |
| Real-Estate | 3.3 | 3.2 |
| Health Care | 3.3 | 3.3 |
| Industrials | 5.1 | 4.9 |
| Materials | 6.9 | 6.8 |
| Consumer Discretionary | 6.6 | 6.5 |
| Information Technology | 11.9 | 12.0 |
|
Average Annual Total Returns % (as of 6/30/2018)
|
|||||
| 1YR | 3YR | 5YR | SI1 | ||
|---|---|---|---|---|---|
| Risk-Optimized Multifactor Emerging Markets Index | -0.30 | 0.99 | --- | 0.42 | |
|
Average Annual Total Returns % (as of 6/30/2018)
|
|||||
| 1YR | 3YR | 5YR | SI1 | ||
|---|---|---|---|---|---|
| Risk-Optimized Multifactor Emerging Markets Index | -0.30 | 0.99 | --- | 0.42 | |
Past performance is not indicative of future results.
Performance reflects cumulative total returns for periods of less than one year and average annual total returns for periods of one year or greater.
Indices are unmanaged and not available for direct investment.
| 2016 | 9.11 |
| 2015 | -18.97 |
| 2014 | 0.44 |
| Ticker | LROAMX Index |
| Inception | December 31, 2013 |
| Current Index Value | 1037.23 |
| Last Closing Level | 1027.18 |
| Change | 10.05 |
| Change % | 0.98% |
| 52-Week-High | 1240.80 |
| 52-Week-Low | 999.39 |
| Number Of Holdings | 326 |
Important Notes
Hartford Risk-Optimized Multifactor Emerging Markets 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.
Sources for all data: Bloomberg and Hartford Funds.
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