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Exclusively available on third-party platforms, Hartford Funds model-delivery SMAs are designed to meet evolving investor needs.

  • A separately managed account (SMA) is a portfolio of individual securities managed independently on your behalf by a professional asset-management firm. With an SMA, investors benefit from direct ownership of securities versus investing in a mutual fund or ETF, where your money is pooled with that of other investors.

    With a traditional SMA, you invest directly with the asset manager who tailors a portfolio to meet your individual investment objectives. A models-based SMA allows you to invest in SMA programs available at third-party managed account platforms. With this structure, the asset manager provides a portfolio model to the managed account provider, who takes on full responsibility for trading and reporting.

    Your financial professional can help determine the investment that is right for you.

    Key Differences Between Separately Managed and Pooled Accounts

      SMA Mutual Fund ETF
    What Investors Own Individual securities Shares of the pooled fund Shares of the pooled fund
    Transparency Robust access to holdings and transaction history Governed by prospectus Daily holdings access
    Minimum Investment Typically $50,000 to $250,000 Typically $2,000 The price of the ETF’s shares
    Oversight Asset Manager/ Managed Account Provider Board of Trustees Board of Trustees
  • Hartford Core Equity SMA Strategy seeks growth of capital by investing predominantly in US large-cap stocks. The strategy is available in a model-delivery format at select third-party managed account programs.

    The strategy’s investment philosophy is based on the following core beliefs: 

    • Improvement in the quality of company fundamentals is often a powerful signal
       – Company is becoming more competitive
       – Growth and profitability are experiencing a positive inflection
       – Company is typically earning higher returns;

    • Fundamental improvement tends to persist
       – Business momentum can lead to a cycle of innovation
       – Taking a longer view helps capture this improvement;

    • Individual stock outcomes are typically wider than expected
       – Need to incorporate into position-sizing decisions;

     

    Investment Process

    Central to the investment process is in-depth, fundamental research focused on uncovering companies with improving quality metrics, business momentum, and attractive relative valuations.

    Model Guidelines

    • Maximum position size is generally 5%

    • Projected beta is generally 0.90, limited to +/- 0.10

    • Sector exposures are unconstrained, while avoiding over-concentration in any one sector. Generally seeks to maintain at least a 2% cash position, applied at the time of model trade recommendation

    • Will not utilize primary market equity issuance (IPOs) or any illiquid securities

    • Investment universe is US stocks with market cap in excess of $10 billion

    Investment Management

    Hartford Funds Management Company, LLC offers non-discretionary security recommendations in the form of model portfolios. The strategy is managed by the following team from Wellington Management LLP, which serves as the Model Provider.

    Senior Managing Director
    Equity Portfolio Manager
    Professional Experience
    Since 1989

    Senior Managing Director
    Equity Portfolio Manager
    Professional Experience
    Since 1996

    Managing Director
    Equity Research Analyst
    Professional Experience
    Since 2001

    The portfolio managers are supported by the full resources of Wellington

  • Hartford Dividend and Growth SMA Strategy seeks a high level of current income consistent with growth of capital. The strategy is available in a model-delivery format at select third-party managed account programs.

    The strategy's philosophy is based on the following core principles:

    • Emphasis on stable and growing free cash flow and capital return allows the managers to identify companies with future value creation potential

    • By placing greater focus on the potential of future cash flows, the investment team can attempt to take advantage of price weakness caused by short term disruption

    • Limiting downside volatility may be achieved by avoiding areas of speculation which are categorized by cyclical peaks, abnormally high returns, or stretched valuations

    Investment Process

    The managers seek to identify large-cap, quality companies through fundamental, bottom-up stock and sector analysis. ESG criteria is evaluated as a component of the integrated fundamental research process.

    Model Guidelines

    • Initial position size is typically 1 - 3%; maximum size is generally 6.5%

    • Sector weightings are generally +/-10% or < 2x the weight of the S&P 500 Index

    • Generally seeks to maintain at least a 2% cash position, applied at the time of model trade recommendation

    • Up to 20% allowed in foreign issuers via ADRs

    • Will not utilize primary market equity issuance (IPOs), illiquid securities, or derivatives

    Investment Management

    Hartford Funds Management Company, LLC offers non-discretionary security recommendations in the form of model portfolios. The strategy is managed by the following team from Wellington Management LLP, which serves as the Model Provider.

    Senior Managing Director
    Equity Portfolio Manager
    Professional Experience
    Since 1995

    Managing Director
    Equity Portfolio Manager
    Professional Experience
    Since 1998

    Vice President
    Equity Research Analyst
    Professional Experience
    Since 2012

    The portfolio managers are supported by the full resources of Wellington

Important Risks: All investments are subject to risk, including the possible loss of principal. There is no guarantee the strategy will achieve its stated objective. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ● For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. ● Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political, economic and regulatory developments. ● To the extent the strategy focuses on one or more sectors, the strategy may be subject to increased volatility and risk of loss if adverse developments occur. For Hartford Dividend and Growth SMA Strategy: Integration of environmental, social, and/or governance (ESG) characteristics into the investment process may not work as intended.

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The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds Management Company, LLC (HFMC) does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. The material should not be considered impartial investment or fiduciary advice. Content is current as of the
publication date or date indicated, and may be superseded by subsequent market and economic conditions.

The model-delivered separately managed accounts (SMAs) are non-discretionary investment services provided by HFMC through separatelymanaged account programs that are sponsored by non-affiliated broker-dealers (Program Sponsors). SMAs are not available for purchase directly through HFMC or its affiliates. For these strategies, HFMC relies upon security recommendations from Wellington Management Company LLP. Client accounts are managed based upon instructions provided by the client’s Program Sponsor and may differ from those of the models. The Program Sponsor, rather than HFMC, makes investment decisions and executes trades on behalf of its underlying clients. Investing involves risk.