Hartford Financial Services Group Inc. wants to be a bigger player in mutual funds, and aims to grow both by acquisitions and through the launch of new funds.
“Over the next several years the vast majority (of growth) is going to come from organic growth,” John Walters, executive vice president and director of the Hartford Life investment products division, told Reuters. Asked if a major acquisition could vault Harford, currently managing $25 billion in mutual fund assets, into the top ranks, Walters said it was not a priority. “That’s not really our style and I think it would be unlikely.”
One way to grow is to roll out more funds managed by Wellington Management Co. LLP, a longtime partner, he said. Of Hartford’s $25 billion in mutual fund assets, about 90 percent are stock funds and all of those are managed by external advisers, with Wellington accounting for most of it. The company’s bond mutual funds are managed by Hartford units. A group of asset allocation funds launched last year accounted for 17 percent of the fund group’s $1.2 billion in gross sales in the fourth quarter of 2004, Walters said.