Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index

Overview

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-optimized approach that seeks to achieve its diversification, 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, 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.

download metholodogy document Hartford Multifactor Index Methodologies

Performance

PERFORMANCE %

	CUMULATIVE % (as of 8/31/2022)			AVERAGE ANNUAL TOTAL RETURNS % (as of 8/31/2022)
	YTD	1YR	3YR	5YR	10YR	SI ¹
Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index	-16.57	-18.05	0.45	0.71	---	3.23

	CUMULATIVE % (as of 6/30/2022)			AVERAGE ANNUAL TOTAL RETURNS % (as of 6/30/2022)
	YTD	1YR	3YR	5YR	10YR	SI¹
Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index	-15.56	-14.91	-0.42	1.66	---	3.45

SI = Since Inception. Index Inception: 12/31/2013

Past performance does not guarantee 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.

Characteristics

KEY FACTS (as of 9/28/2022)

Ticker	LRODMX Index
Inception Date	12/31/2013
Current Index Value	1177.09
Last Closing Level	1179.04
Change	-1.95
Change %	-0.17%
52-Week-High	1603.37
52-Week-Low	1177.09
Number Of Holdings	488

Holdings Characteristics

Price/Book	1.3x
Price/Earnings	8.1x
Return on Equity	19.5%
Nominal Companies	488
Effective Companies	292
Nominal Countries	22
Effective Countries	11
Debt to Equity	99.9%
Index Dividend Yield (%)	4.36

Sector Exposure (%)

Financials	18
Industrials	16
Health Care	12
Consumer Staples	11
Consumer Discretionary	10
Information Technology	7
Communication Services	6
Materials	6
Utilities	6
Real Estate	5
Energy	4

Financials	18
Industrials	16
Health Care	13
Consumer Staples	11
Consumer Discretionary	9
Communication Services	7
Information Technology	7
Utilities	6
Materials	5
Real Estate	5
Energy	3

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.

Top Ten Holdings (%)

Loblaw Cos Ltd	0.94
Novo Nordisk A/S	0.91
BAE Systems PLC	0.80
Koninklijke Ahold Delhaize NV	0.78
Mineral Resources Ltd	0.77
Swisscom AG, Ittigen	0.75
Sonic Healthcare Ltd	0.74
MERCK Kommanditgesellschaft auf Aktien	0.74
Roche Holding AG	0.73
HSBC Holdings PLC	0.70
Total Portfolio %	7.86

Loblaw Cos Ltd	0.94
Novo Nordisk A/S	0.92
BAE Systems PLC	0.88
GSK plc	0.86
Swisscom AG, Ittigen	0.79
Roche Holding AG	0.74
Koninklijke Ahold Delhaize NV	0.73
HSBC Holdings PLC	0.72
Sanofi	0.72
NN Group N.V.	0.72
Total Portfolio %	8.02

Market Cap Distribution (%)

Market Cap Header3
Less than $2B	1
$2B - $10B	41
$10B - $100B	53
Greater than $100B	6

TOP 10 COUNTRIES (%)

Represents 82% of total country allocation

Sources for all data: Bloomberg and Hartford Funds.

Investing involves risk, including the possible loss of principal.

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