Hartford Multifactor Emerging Markets Equity Index

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.

Hartford Multifactor Index Methodologies

CharacteristicsAllocations, exposures and holdings are subject to change. Percentages may be rounded.

Characteristics

Allocations, exposures and holdings are subject to change. Percentages may be rounded.

Country Allocation(%)
(as of 9/30/2019)

	CHINA	23
	SOUTH KOREA	13
	TAIWAN	13
	BRAZIL	8
	THAILAND	6
	INDONESIA	5
	MALAYSIA	4
	SOUTH AFRICA	4
	INDIA	4
	MEXICO	4
Total of Top 10 Countries(%)		83
	Other (6 countries)	17	6

Holdings Characteristics
(as of 9/30/2019)
	Fund
Price/Earnings	10.4x
Price/Book	1.3x
Return on Equity	17.3%
Nominal Companies	332
Effective Companies	197
Nominal Countries	16
Effective Countries	9
Debt to Equity	88.7%
Index Dividend Yield (%)	4.20

Market Cap Distribution(%)
(as of 9/30/2019)
	Index
Less than $2B	14
$2B - $10B	37
$10B - $100B	43
Greater than $100B	6

Top Ten Holdings (%)

(as of 9/30/2019)
Samsung Electronics Co Ltd	1.12
Great Wall Motor Co	1.05
Anhui Conch Cement Co Ltd	0.99
Telefonica Brasil SA	0.98
China Telecom Corp Ltd	0.98
Infosys Ltd	0.97
Ping An Insurance Group	0.96
PT Telekomunikasi Indonesia (Persero) TBK	0.96
SK Hynix Inc	0.94
Petrobras Distribuidora SA	0.94
Total of Top Ten Holdings	9.89

Sector Exposure (%)
Sectors		9/30/2019
Financials	0	25
Information Technology	0	14
Communication Services	0	13
Consumer Discretionary	0	12
Materials	0	8
Consumer Staples	0	7
Industrials	0	7
Energy	0	5
Utilities	0	5
Health Care	0	4
Real Estate	0	1

Performance (%)
	YTD	1YR	3YR	5YR	SI¹
	% (as of 10/31/2019)	Average Annual Total Returns % (as of 10/31/2019)
Hartford Multifactor Emerging Markets Equity Index	---	---	---	---	-3.00

Performance (%)
	YTD	1YR	3YR	5YR	SI¹
	% (as of 9/30/2019)	Average Annual Total Returns % (as of 9/30/2019)
Hartford Multifactor Emerging Markets Equity Index	---	---	---	---	-5.72

SI = Since Inception.

Index Inception:06/28/2019

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.

Key Facts

Key Facts (as of 11/15/2019)
Ticker	LROEMX Index
Inception	June 28, 2019
Current Index Value	974.90
Last Closing Level	966.80
Change	8.10
Change %	0.83%
52-Week-High	995.72
52-Week-Low	910.80
Number Of Holdings	332

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

Investing involves risk, including the possible loss of principal.

Sources for all data: Bloomberg and Hartford Funds.

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