Hartford Multifactor Emerging Markets Equity Index

Overview

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.

download metholodogy document Hartford Multifactor Index Methodologies

Performance

PERFORMANCE %

	CUMULATIVE % (as of 10/31/2023)			AVERAGE ANNUAL TOTAL RETURNS % (as of 10/31/2023)
	YTD	1YR	3YR	5YR	10YR	SI ¹
Hartford Multifactor Emerging Markets Equity Index	6.72	18.56	6.61	---	---	1.21

	CUMULATIVE % (as of 9/30/2023)			AVERAGE ANNUAL TOTAL RETURNS % (as of 9/30/2023)
	YTD	1YR	3YR	5YR	10YR	SI¹
Hartford Multifactor Emerging Markets Equity Index	10.66	23.58	8.00	---	---	2.10

SI = Since Inception. Index Inception: 06/28/2019

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 12/1/2023)

Ticker	LROEMX Index
Inception Date	06/28/2019
Current Index Value	1140.67
Last Closing Level	1139.75
Change	0.92
Change %	0.08%
52-Week-High	1159.90
52-Week-Low	976.65
Number Of Holdings	309

Holdings Characteristics

% in Foreign Equities	100
Price/Earnings	7.9x
Price/Book	1.1x
EPS Growth Rate	8.6%
Asset Weighted Market Cap (billions)	$35.1
Price/Earnings	7.4x
Return on Equity	20.3%
Median Market Cap (billions)	$9.1
Nominal Companies	309
Effective Companies	196
Nominal Countries	15
Effective Countries	8
Debt to Equity	106.7%
Index Dividend Yield (%)	5.62

Sector Exposure (%)

Financials	24
Information Technology	20
Consumer Discretionary	12
Communication Services	8
Materials	6
Energy	6
Industrials	6
Consumer Staples	6
Health Care	5
Utilities	4
Real Estate	2

Financials	24
Information Technology	20
Consumer Discretionary	12
Communication Services	8
Materials	6
Energy	6
Industrials	6
Consumer Staples	6
Health Care	5
Utilities	4
Real Estate	2

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.

Top Ten Holdings (%)

Powszechny Zaklad Ubezpieczen SA	1.13
China Construction Bank Corp	1.09
Lenovo Group Ltd	1.06
Kia Corporation	0.97
Samsung Electronics Co Ltd	0.95
Coal India Ltd	0.93
Petroleo Brasileiro S.A.- Petrobras	0.92
Chicony Electronics Co Ltd	0.91
Agricultural Bank of China Ltd	0.89
Bank of China Ltd	0.89
Total Portfolio %	9.74

China Construction Bank Corp	1.04
Kia Corporation	0.99
Petrochina Co Ltd	0.97
Sinopharm Group Co	0.95
Samsung Electronics Co Ltd	0.93
Powszechny Zaklad Ubezpieczen SA	0.91
Lenovo Group Ltd	0.90
Hon Hai Precision Industry Co Ltd	0.90
Petroleo Brasileiro S.A.- Petrobras	0.89
China Tower Corporation Ltd	0.88
Total Portfolio %	9.36

Market Cap Distribution (%)

Market Cap Header3
Less than $2B	2
$2B - $10B	40
$10B - $100B	49
Greater than $100B	9

TOP 10 COUNTRIES (%)

Represents 91% of total country allocation

Investing involves risk, including the possible loss of principal.

Sources for all data: Bloomberg and Hartford Funds.

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