Hartford Funds, an asset manager that provides mutual funds, exchange traded funds, and 529 college savings plans, has launched its first closed-end interval fund, Hartford Schroders Opportunistic Income Fund, which seeks to raise up to $250 million.
Sub-advised by Schroder Investment Management North America Inc., the fund plans to invest in U.S. and foreign fixed and floating rate securitized credit instruments and various types of loan investments.
Potential investments include a variety of securitized instruments and other fixed income investments, mortgage-related investments, private commercial real estate loans, cash and short-term equivalents, treasuries, and derivatives. The fund will continuously offer shares for sale and will offer to repurchase shares on a quarterly basis.
The fund offers three share classes, Class A, Class I and Class SDR, with shares originally priced at $25.00 plus any applicable sales charge.
Class A shares are available through registered broker-dealers, banks, advisers and other financial institutions and have a 3 percent maximum sales load and a minimum investment of $5,000. There is no initial sales charge on purchases of Class A shares of $1 million or more, however, a contingent deferred sales charge of up to 1 percent may be imposed if the shares are repurchased within 18 months of their purchase.
Class I shares are available for fee-based advisory accounts and have no sales load and a minimum investment of $5,000.
Class SDR shares are available to fee-based investors and have no sales load and a minimum investment of $5 million.
All share classes have a 1.15 percent annual management fee, and total annual fund expenses range between 1.98 percent to 2.48 percent, depending on the share class.
Michelle Russell-Dowe, head of securitized credit at Schroders, and Anthony Breaks, senior portfolio manager at Schroders, will serve as the fund’s portfolio managers.
“The fund represents an opportunity to benefit from a broad investment universe by allowing us to deploy capital into the best opportunity, be it in the public markets, or in the private markets,” said Russell-Dowe.
Founded in 1996, Hartford Funds’ product line-up includes more than 50 mutual funds, 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. Excluding affiliated funds of funds, Hartford Funds Management Company and its wholly owned subsidiary, Lattice Strategies LLC, had approximately $121.3 billion in discretionary and non-discretionary assets under management, as of June 30, 2019.