Wellington to acquire Hartford Funds to build $1.9B retail wealth powerhouse

Wellington Management has signed a definitive agreement to acquire Hartford Funds from insurer The Hartford Financial Services Group (NYSE:HIG), a transaction that structurally consolidates a 40-year sub-advisory alliance into a unified asset management platform.

Upon closing, the Hartford Funds business will be integrated directly into Wellington’s U.S. Wealth division and will transition completely to the Wellington brand.

The deal marks a major strategic expansion for Wellington, historically an institutional powerhouse, as it moves to assert direct, scale-driven control over retail intermediary networks and financial advisor distribution channels.

The transaction carries an estimated net present value of $1.9 billion.

Under the agreed financial framework, The Hartford will receive an upfront payment of $300 million in cash when the deal closes.

The remaining balance will be paid out over a seven-year period through structured earn-out payments.

These installments will be tied to the available after-tax cash generated by the combined Hartford Funds business and Wellington's broader retail wealth infrastructure supporting those products, alongside any additional sales of specific Wellington-sponsored vehicles in the U.S. wealth market.

The transaction is expected to close in the first quarter of 2027, subject to standard regulatory reviews, customary closing conditions, and individual fund board approvals.