Hartford Funds’ Earnings Sag

The Hartford Financial Services Group this week reported second quarter mutual funds’ core earnings of $18 million versus $27 million during the same period last year.

The firm attributed the decrease in core earnings to lower assets under management, expenses for its impending move to Pennsylvania, and expanded distribution efforts.

The unit also reported AUM of $86.2 billion, a decreased of 14% from Q2 2011, “reflecting negative net flows from equity funds and change in market value.” Its deposits of $2.5 billion decreased 34% from 2Q11 “driven by continued industry trends toward fixed income funds.”

In an earnings call with analysts, Christopher Swift, chief financial officer of Hartford Financial, said all of the firm’s fixed income funds have now transitioned to Wellington, and expanded marketing initiatives are planned for the second half of the year.