Objective
- De-concentrate country, currency, and individual company risks in developed market economies (ex US)
- Seek reduced volatility and drawdown risk and improve returns (relative to capitalization weighted developed international equity indexes (ex U.S.) over a complete market cycle.
Description of Methodology
The rules-based proprietary methodology employs a multi-layered risk-controlled approach that seeks to achieve its de-concentration, risk-reduction, and return objectives by selecting companies with favorable diversified risk premia expression, including valuation, momentum, quality, and volatility characteristics. The methodology seeks to further address active risks versus the capitalization-weighted universe by managing size, country, and liquidity risks. The Index seeks to harvest risk premia factors through systematic risk- and factor-weighting twice annually, with a reconstitution occurring in March and September.
Country Allocation(%)
(as of 5/31/2018)
| Japan | 20.90 | |
| United Kingdom | 11.38 | |
| Canada | 11.34 | |
| Germany | 7.21 | |
| Switzerland | 7.12 | |
| Australia | 6.83 | |
| France | 6.72 | |
| Hong Kong | 5.27 | |
| Netherlands | 3.75 | |
| Singapore | 3.08 | |
| Total of Top 10 Countries(%) | 83.59 | |
| Other (12 countries) | ||
Country allocations are subject to change.
| Fund | |
|---|---|
| Price-to-Book | 1.65 |
| Price-to-Earnings | 14.36 |
| Return on Equity(%) | 12.17 |
| Debt to Equity | 0.91 |
| Dividend Yield(%) | 3.26 |
| Nominal Countries | 22 |
| Effective Countries | 10 |
| Nominal Companies | 488 |
| Effective Companies | 302 |
Top Ten Holdings (%)
| Icon PLC | 0.81 |
| Uniper SE | 0.77 |
| Gestamp Automocion SA | 0.74 |
| ASR Nederland NV | 0.73 |
| Schweizerische Lebensversicherungs- Und Rentenanstalt, Zuerich | 0.71 |
| Bank of Montreal | 0.68 |
| Prosegur Cash SA | 0.65 |
| Innogy SE | 0.65 |
| Bouygues, Guyancourt | 0.62 |
| Neste OYJ | 0.62 |
| Total of Top Ten Holdings | 6.99 |
Holdings are subject to change. Percentages may be rounded.
| Index | |
|---|---|
| Less than $2B | 11.6 |
| $2B - $10B | 51.2 |
| $10B - $100B | 33.9 |
| Greater than $100B | 3.2 |
| Sectors | 4/30/2018 | 5/31/2018 |
|---|---|---|
| Health Care | 11.4 | 11.9 |
| Real-Estate | 5.6 | 5.6 |
| Utilities | 5.3 | 5.2 |
| Industrials | 15.7 | 15.6 |
| Telecommunication Services | 4.6 | 4.5 |
| Information Technology | 6.2 | 6.5 |
| Consumer Staples | 9.4 | 9.6 |
| Financials | 20.9 | 20.2 |
| Consumer Discretionary | 10.3 | 10.2 |
| Materials | 6.1 | 6.2 |
| Energy | 4.5 | 4.5 |
|
Average Annual Total Returns % (as of 5/31/2018)
|
|||||
| 1YR | 3YR | 5YR | SI1 | ||
|---|---|---|---|---|---|
| Risk-Optimized Developed Markets (ex-US) Strategy Index | 10.43 | 7.60 | --- | 7.00 | |
|
Average Annual Total Returns % (as of 3/31/2018)
|
|||||
| 1YR | 3YR | 5YR | SI1 | ||
|---|---|---|---|---|---|
| Risk-Optimized Developed Markets (ex-US) Strategy Index | 17.07 | 8.63 | --- | 7.20 | |
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 | 3.62 |
| 2015 | 1.19 |
| 2014 | 1.97 |
| Ticker | LRODMX Index |
| Inception | December 31, 2013 |
| Current Index Value | 1342.71 |
| Last Closing Level | 1335.75 |
| Change | 6.96 |
| Change % | 0.52% |
| 52-Week-High | 1419.30 |
| 52-Week-Low | 1222.17 |
| Number Of Holdings | 488 |
Important Notes
Hartford Risk-Optimized Multifactor Developed Markets (ex-US) 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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