- Seeks to diversify across property types and invests deeper into the US REIT universe, where there may be more opportunity for growth
- Focuses on reducing single-company risk and freeing capital for allocation toward companies with potentially more favorable investment attributes
- Seeks improved returns and similar risk (relative to traditional capitalization-weighted REIT strategies) over a complete market cycle
Description of Methodology
The rules-based, proprietary methodology employs a multi-layered risk-controlled approach that seeks to de-concentrate individual security risks while selecting companies exhibiting favorable risk premia factors including quality, momentum, and value. The Strategy Index seeks to harvest risk premia factors through systematic risk- and factor-weighting twice annually, with a reconstitution occurring in March and September.
|Return on Invested Capital||4.7%|
|Less than $2B||25|
|$2B - $10B||50|
|$10B - $100B||25|
|Greater than $100B||0|
Top Ten Holdings (%)
|CBL & Associates Properties Inc.||3.00|
|Washington Prime Group Inc||2.50|
|Brixmor Property Group Inc||2.10|
|Weingarten Realty Investors||2.09|
|Tanger Factory Outlet Centers Inc.||2.08|
|Host Hotels & Resorts Inc||2.08|
|Piedmont Office Realty Trust Inc||2.04|
|Xenia Hotels & Resorts Inc||2.04|
|Summit Hotel Properties Inc||2.03|
|Total of Top Ten Holdings||22.10|
% (as of 10/31/2019)
Average Annual Total Returns % (as of 10/31/2019)
|Hartford Risk-Optimized Multifactor REIT Index||27.55||21.57||10.47||9.09||11.81|
% (as of 9/30/2019)
Average Annual Total Returns % (as of 9/30/2019)
|Hartford Risk-Optimized Multifactor REIT Index||23.73||12.26||7.73||10.54||11.19|
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.
|Inception||December 31, 2015|
|Current Index Value||1510.54|
|Last Closing Level||1502.30|
|Number Of Holdings||55|
Hartford Risk-Optimized Multifactor REIT 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 of all data: Bloomberg and Hartford Funds.