Wellington Management agreed on 3 June to acquire Hartford Funds from The Hartford, paying US$300m in cash at closing plus seven years of performance-linked payments with an estimated present value of US$1.9bn.
Why Wellington Management is buying Hartford Funds
The deal brings Hartford Funds' mutual funds, ETFs and 529 plans, and a client-facing team of more than 160 people, into Wellington's US wealth business, where they will carry the Wellington brand. The Hartford said the combination creates an ideal long-term home for the funds.
“For more than 40 years, Wellington and Hartford Funds have partnered together in support of advisors and investors.”
Deal terms and financing
After the upfront payment, The Hartford receives a share of after-tax cash generated by Hartford Funds and certain other Wellington-sponsored US wealth products for seven years, a period that can be shortened or lengthened against agreed thresholds.
Regulatory approvals and timing
Closing is expected in the first quarter of 2027, subject to regulatory and fund approvals.
Market context
Wellington, which manages more than US$1.35trn, has worked with Hartford Funds since 1978 and sub-advises 83% of its assets; Schroders is also a sub-adviser.
