Wellington Management will acquire Hartford Funds, a provider of investment solutions for the wealth management market, in a deal valued at $1.9bn.
Following completion of the transaction, Hartford Funds will operate under the Wellington brand.
The agreement turns a long-running business arrangement between the two groups into a single company structure. Their ties date back to 1978 and developed further in 1984 with a sub-advisory arrangement covering mutual funds. Over time, that relationship was extended to include ETFs and other investment strategies.
At present, Wellington sub-advises 83% of Hartford Funds’ roughly $160bn of assets. Hartford Funds is supported by a client-facing team of more than 160 people with experience representing Wellington’s investment platform.
The Hartford’s chairman and CEO Christopher Swift said, “We are proud of the strong advisor-centric fund company that we have built, powered by Wellington’s outstanding investment capabilities for many years. This transaction allows us to realize immediate and continued value for The Hartford’s shareholders and positions Hartford Funds’ exceptional people for ongoing success. This combination creates the ideal long-term home for Hartford Funds.”
The transaction brings together Wellington’s institutional investment operations and Hartford Funds’ distribution network and intermediary links in the US adviser market.
Following the integration, the combined business is expected to offer advisers access to investment products and strategies across mutual funds, ETFs, SMAs, models and alternative investments.
The organisation is set to have about 200 client-facing staff.
The companies expect the deal to complete in the first quarter of 2027, subject to regulatory and fund approvals.
Wellington Management CEO and managing partner Jean Hynes said, “Together, we are building on the strengths that have defined our relationship to reinforce our commitment to the U.S. wealth market through expanded access to investment capabilities, broader distribution reach, and enhanced resources for advisors and investors. I look forward to continuing to build on the strengths that have defined our partnership together in the years ahead.”
