WAYNE, Pa.--(BUSINESS WIRE)--Hartford Funds today announced the launch of Hartford Global Impact NextShares Fund (HFGIC), the firm’s first NextShares product. NextShares are an innovative way to invest in actively managed strategies, which, because they trade on an exchange, may offer cost and tax efficiencies that may enhance shareholder returns. Hartford Global Impact NextShares Fund seeks long-term capital appreciation by investing in companies throughout the world that it believes are likely to address major social and environmental challenges.
“The Hartford Global Impact NextShares Fund is yet another step we are taking in listening to financial advisor demand for lower-cost, tax-efficient, and innovative products that can help investors reach their goals,” said Vernon Meyer, Chief Investment Officer of Hartford Funds. “The Hartford Global Impact NextShares Fund allows us to offer actively managed strategies while also providing investors the opportunity to align their portfolios with their values.”
“We are proud to partner with Hartford Funds to bring Hartford Global Impact NextShares Fund to market,” said Stephen Clarke, President of NextShares Solutions LLC. “It is the first equity NextShares product to invest in companies whose core business seeks to address the world’s major social and environmental challenges.”
NextShares, which, as an exchange-traded managed fund (“ETMF”), offer investors a new way to tap into and capitalize on actively managed strategies with potential cost and tax advantages, seek to outperform their benchmark index and peer funds based on their manager’s investment insights and research judgments. NextShares offers the potential benefits of protecting the confidentiality of fund trading information and providing trading cost transparency to fund investors.
Hartford Global Impact NextShares Fund will invest in companies that focus their operations in areas that address themes including, but not limited to, sustainable agriculture and nutrition, health, clean water and sanitation, affordable housing, education and training, financial inclusion, narrowing the digital divide, alternative energy, resource stewardship and efficiency, as determined by the sub-adviser, Wellington Management Company LLP (“Wellington Management”). The Fund will operate as a “feeder fund” under a master-feeder structure along with the Hartford Global Impact mutual fund, with both funds investing all of their assets in shares of the Global Impact Master Portfolio.
The Hartford Global Impact NextShares Fund complements Hartford Funds’ two existing socially responsible investment products, the Hartford Global Impact Fund (HGXAX) and the Hartford Environmental Opportunities Fund (HEOMX).
Wellington Management’s Eric Rice, Managing Director and Portfolio Manager, and R. Patrick Kent, Managing Director and Portfolio Manager, will serve as the portfolio managers of the Hartford Global Impact Master Portfolio.
About Hartford Funds
Founded in 1996, Hartford Funds is a leading asset manager, which provides mutual funds, ETFs, and 529 college savings plans. Using its human-centric investing approach, Hartford Funds creates strategies and tools designed to address the needs and wants of investors. Leveraging partnerships with leading experts, Hartford Funds delivers insight into the latest demographic trends and investor behavior.
The firm’s line-up includes more than 55 mutual funds in a variety of styles and asset classes, as well as a variety of multifactor and active ETFs. Its mutual funds (with the exception of certain fund of funds) are sub-advised by Wellington Management or Schroder Investment Management North America Inc. The strategic beta ETFs offered by Hartford Funds are designed to help address investors’ evolving needs by leveraging a unique risk-optimized approach, which identifies risks within each asset class and then deliberately and systematically re-allocates capital toward risks more likely to enhance return potential. As of September 30, 2017, Hartford Funds had approximately $95.6 billion (excluding assets used in certain annuity products) in discretionary and non-discretionary assets under management. For more information about our investment family, visit http://www.hartfordfunds.com.
Shares of NextShares funds are normally bought and sold in the secondary market through a broker, and may not be individually purchased or redeemed from the fund. In the secondary market, buyers and sellers transact with each other, rather than with the fund. NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through Authorized Participants. In such transactions, a fund issues and redeems shares in exchange for the basket of securities, other instruments and/or cash that the fund specifies each business day. By transacting in kind, a NextShares fund can lower its trading costs and enhance fund tax efficiency by avoiding forced sales of securities to meet redemptions. Redemptions may be effected partially or entirely in cash when in-kind delivery is not practicable or deemed not in the best interests of shareholders. A fund’s basket is not intended to be representative of the fund’s current portfolio positions and may vary significantly from current positions. As exchange-traded securities, NextShares can operate with low transfer agency expenses by utilizing the same highly efficient share processing system as used for exchange-listed stocks and ETFs.