Hartford Funds has launched its first two multifactor mutual funds, the Hartford Multifactor International Fund and the Hartford Multifactor Large Cap Value Fund. The products are designed to meet the demand for multifactor strategies in retirement plans by offering investors access to investment approaches that Hartford Funds offers only through exchange-traded funds (ETFs).
“Retirement plans have historically not had access to the multifactor strategies that are common in ETFs, and have, therefore, been unable to access their risk-managed results and lower fees,” says Vernon Meyer, chief investment officer of Hartford Funds. “We adapted our existing multifactor ETFs to ensure that retail investors and retirement plans alike can leverage them in their continued pursuit of capital returns with the potential for reduced volatility.”
The Hartford Multifactor International Fund tracks the Hartford Risk-Optimized Multifactor Developed Markets Index, the same index as the Hartford Multifactor Developed Markets ETF. The fund is designed to provide equity exposure to major developed markets in Europe, Canada and the Pacific Region with potentially less volatility over a complete market cycle than traditional capitalization-weighted indices.
The Hartford Multifactor Large Cap Value Fund tracks the Hartford Multifactor Large Cap Value Index, which seeks to outperform traditional cap-weighted, value-oriented U.S. equity market indices and active U.S. equity market strategies, while reducing volatility, over a complete market cycle.