Wellington to buy Hartford Funds for $1.9B

Wellington Management will acquire Hartford Funds for a net present value of about $1.9 billion and integrate the business into its US wealth unit. The Hartford will receive $300 million in cash at closing and additional contingent payments over seven years. The transaction is expected to close in the first quarter of 2027, subject to regulatory and fund approvals. After the deal, the business will operate under the Wellington brand.

Under the definitive agreement, Hartford Funds will be folded into Wellington’s US wealth business to expand distribution, investment capabilities and adviser support. Wellington currently sub-advises roughly 83% of Hartford Funds’ approximately $160 billion in assets and supports the business with a client-facing team of more than 160 professionals.

Wellington Management said the integration will create a single wealth platform offering advisers and investors access to mutual funds, ETFs, separately managed accounts, model portfolios and alternative investments, with expanded distribution and servicing resources. The combined organisation is expected to include about 200 client-facing professionals to provide coordinated service to advisers and clients.

Financial terms call for $300 million in cash at closing and additional payments tied to the available after-tax cash generated by the combined Hartford Funds business and Wellington’s supporting activities, including proceeds from the sale of certain Wellington-sponsored products in the US wealth market, over the seven years following closing. The parties estimate the net present value of those payments at $1.9 billion.

Jean Hynes, CEO and managing partner at Wellington Management, described the deal as building on a relationship that began in 1978 and was formalised in 1984, combining Wellington’s institutional investment capabilities with Hartford Funds’ adviser relationships. Christopher Swift, chairman and CEO of The Hartford, said the agreement will deliver immediate and ongoing value for The Hartford’s shareholders and provide a long-term home for Hartford Funds’ employees.

Christina Kopec Rooney, head of US Wealth at Wellington Management, noted the combination will sharpen Wellington’s competitive position by uniting global investment expertise with Hartford Funds’ US distribution scale. Greg Frost, president of Hartford Funds, called the transaction continuity for clients and teams and a platform for growth under Wellington’s ownership.

Closing remains contingent on regulatory approvals and approvals from fund boards and shareholders where required. If those conditions are met, the parties expect the transaction to close in Q1 2027.