Hartford taps insider to run mutual fund business
Jim Davey
The Hartford Financial Services Group Inc. has tapped Jim Davey, head of the company's retirement division, to run its mutual fund business.
The Hartford Financial Services Group Inc. has tapped Jim Davey, head of the company’s retirement division, to run its mutual fund business.
Mr. Davey’s appointment is part of a reorganization announced in an internal memo last week, confirmed spokesman David Potter.
In the memo, David Levenson, head of wealth management, also announced that Sharon Ritchey, director of operations, technology and eBusiness for the firm’s wealth management division, had been appointed to head up the retirement plans group.
Additionally, Rob Arena, director of annuities, mutual funds and 529 plans, will now head up the company’s global annuity business, while Brian Murphy, executive vice president of individual life, will lead the individual-life business.
The reorganization comes less than two months after Mr. Levenson took over as head of wealth management, replacing John C. Walters.
Chief executive Liam McGee, who joined The Hartford last fall, said this year that he would restructure Hartford’s dual silo-life and property-casualty structure into three business lines: commercial markets, consumer markets and wealth management.
The new appointments are the latest step in that transition, Mr. Potter said.
Hit hard by the financial meltdown in 2008-2009, the company realizes it needs to diversify its business beyond insurance, said Drew Woodbury, an analyst at Morningstar Inc.
“This is a switch from spread-based retirement product toward mutual funds, which are more fee-based,” he said. “I think mutual funds will be a big focus going forward.”
Hartford currently uses its own portfolio managers as well as Wellington Management Co. LLP to advise its funds. But the company has an opportunity to diversify its fund lineup to include more managers and increase its offerings particularly in the fixed-income, international and emerging markets areas, said one industry observer, who asked not to be identified.
“Hartford has a good product line, but they probably could use greater internal capabilities to manage more money or possibly introduce additional advisers to the mix,” the observer said. (Mr. Davey declined to comment).
But Wellington has done well for Hartford, said Katie Ruskewicz, also an analyst at Morningstar. Going forward, Hartford is likely to expand its target date fund lineup and its alternative investment fund offerings as it attempts to grow in the retirement market, she said.
In May, Hartford launched its Global Real Asset Fund Ticker(HRLAX) and Global All Asset Fund Ticker(HLAAX). “I expect to see Hartford in the alternative space more,” Ms. Ruskewicz said. .
Hartford’s mutual funds had $87 billion in assets as of July 31, according to Morningstar.
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