Hartford Funds launched a new global exchange traded managed fund, the firm’s first NextShares product, to its investment suite as a way to capitalize on the innovative way to bring actively managed strategies to investors in a cost and tax efficient manner.
On Thursday, Hartford Funds rolled out the Hartford Global Impact NextShares Fund (HFGIC), which seeks long-term capital appreciation by investing in companies throughout the world that it believes are likely to address major social and environmental challenges, according to a note.
Specifically, the Global Impact NextShares Fund will include companies that focus their operations in areas like 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.
“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,” Vernon Meyer, Chief Investment Officer of Hartford Funds, said in a note. “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.”
ETMFs are not exchange traded funds. Eaton Vance has a launched a number of products under its NextShares brand, covering a relatively new structured product called exchange traded managed funds, or ETMFs, a hybrid of what some consider the best parts of actively managed mutual funds with an exchange traded fund-esque structure.
ETMFs are a new concept that marry the liquidity and tax efficiencies that have attracted investors to ETFs with active investment strategies, while maintaining the confidentiality of current portfolio trading information to protect a manager’s “secret sauce.” Unlike traditional ETFs, ETMFs will not disclose holdings on a daily basis. The patented methodology allows the funds to trade just once per day at the close of business, but investors can still buy and sell ETMFs in real time during normal hours. Consequently, investors who enter a trade during the day will pay a slight premium to net asset value to acquire shares or receive slightly less than NAV to sell.
“We are proud to partner with Hartford Funds to bring Hartford Global Impact NextShares Fund to market,” Stephen Clarke, President of NextShares Solutions LLC, said in a note. “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.”
For more information on exchange traded managed funds, visit our ETMFs category.