By Andrew Welsch
Asset manager Wellington Management has agreed to buy Hartford Funds from The Hartford, an insurance and financial services company. The acquisition of the funds unit will boost Wellington's reach with financial advisors who use Hartford investment products.
The transaction comes amid continuing consolidation within the asset-management industry as companies seek to gain greater scale.
Wellington says the net present value of the transaction is estimated to be $1.9 billion, and that Hartford will receive $300 million in cash at closing. It will also receive additional payments over seven years based on the available after-tax cash generated by the combination of Hartford Funds' business and Wellington's business supporting Hartford Funds. The companies expect the deal, subject to regulatory and fund approvals, to close in the first quarter of 2027.
Boston-based Wellington Management is one of the world's largest independent investment management firms; it also serves as a subadvisor on many Vanguard actively managed funds. Wellington managed more than $1.35 trillion as of April 30, according to the company.
Hartford Funds will be integrated into Wellington's U.S. Wealth business and operate under the Wellington brand, according to Wellington. The unit offers mutual funds, exchange-traded funds, and 529 college savings plans. Its investment advisory business had approximately $160.2 billion in discretionary and non-discretionary assets under management as of April 30, excluding affiliated funds of funds.
Write to Andrew Welsch at andrew.welsch@barrons.com
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(END) Dow Jones Newswires
June 03, 2026 09:50 ET (13:50 GMT)
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