Objective
- De-concentrate country, currency, and individual company risks in emerging markets
- Select companies with favorable valuation, momentum, and quality characteristics
- Seek reduced volatility and drawdown risk and improved risk-adjusted returns (relative to capitalization weighted U.S. equity indexes) over a complete market cycle
Description of Methodology
Hartford Multifactor Emerging Markets Equity Index seeks to enhance risk-adjusted return potential available from investment in emerging market companies. The rules-based, proprietary methodology utilizes an optimization process to help achieve the desired composition and targeted characteristics, including reduced volatility, relative sector, country and size constraints and positive value, momentum and quality relative factor score at the portfolio level. The Index seeks to harvest risk premia factors through systematic risk-and factor-weighting twice annually, with a reconstitution occurring in March and September.
CharacteristicsAllocations, exposures and holdings are subject to change. Percentages may be rounded.
Country Allocation(%)
(as of 12/31/2019)
| CHINA | 23 | |
| SOUTH KOREA | 13 | |
| TAIWAN | 13 | |
| BRAZIL | 8 | |
| THAILAND | 6 | |
| INDONESIA | 5 | |
| MALAYSIA | 4 | |
| INDIA | 4 | |
| MEXICO | 3 | |
| PHILIPPINES | 3 | |
| Total of Top 10 Countries(%) | 84 | |
| Other (7 countries) | ||
| Fund | |
|---|---|
| Price/Book | 1.3x |
| Return on Equity | 17.4% |
| Nominal Companies | 333 |
| Effective Companies | 197 |
| Nominal Countries | 17 |
| Effective Countries | 9 |
| Debt to Equity | 88.4% |
| Index Dividend Yield (%) | 3.98 |
| Index | |
|---|---|
| Less than $2B | 14 |
| $2B - $10B | 34 |
| $10B - $100B | 45 |
| Greater than $100B | 7 |
Top Ten Holdings (%)
| Samsung Electronics Co Ltd | 1.23 |
| Anhui Conch Cement Co Ltd | 1.14 |
| Great Wall Motor Co | 1.08 |
| SK Hynix Inc | 1.04 |
| Enel Americas SA | 1.01 |
| Telefonica Brasil SA | 1.00 |
| Petrobras Distribuidora SA | 0.99 |
| Oil Co LUKOIL PJSC | 0.97 |
| Sinopharm Group Co | 0.97 |
| Hon Hai Precision Industry Co Ltd | 0.95 |
| Total of Top Ten Holdings | 10.38 |
| Sectors | 9/30/2019 | 12/31/2019 |
|---|---|---|
| Financials | 25 | 25 |
| Information Technology | 14 | 15 |
| Communication Services | 13 | 12 |
| Consumer Discretionary | 12 | 12 |
| Materials | 8 | 8 |
| Industrials | 7 | 7 |
| Consumer Staples | 7 | 6 |
| Energy | 5 | 6 |
| Utilities | 5 | 5 |
| Health Care | 4 | 4 |
| Real Estate | 1 | 1 |
|
Average Annual Total Returns % (as of
11/30/2019)
|
|||||
| 1YR | 3YR | 5YR | SI1 | ||
|---|---|---|---|---|---|
| Hartford Multifactor Emerging Markets Equity Index | --- | --- | --- | -4.43 | |
|
Average Annual Total Returns % (as of
9/30/2019)
|
|||||
| 1YR | 3YR | 5YR | SI1 | ||
|---|---|---|---|---|---|
| Hartford Multifactor Emerging Markets Equity Index | --- | --- | --- | -5.72 | |
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.
| Ticker | LROEMX Index |
| Inception | June 28, 2019 |
| Current Index Value | 1025.49 |
| Last Closing Level | 1018.64 |
| Change | 6.85 |
| Change % | 0.67% |
| 52-Week-High | 1025.49 |
| 52-Week-Low | 910.80 |
| Number Of Holdings | 333 |
Important Notes
Hartford Multifactor Emerging Markets 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
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