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Taxable Bond fund

Hartford Floating Rate High Income Fund   

Taxable Bond fund

Hartford Floating Rate High Income Fund   
Share Class - R5 (HFHTX)

Objective

Seeks to provide high current income and long-term total return.

Overview

A fund that typically invests in U.S. bank loans, global bank loans, and high-yield debt.


High Income Potential in a Low-Yield World

The Fund invests primarily in bank loans, which may provide higher yields than traditional bonds; their yields may also increase when interest rates rise.

To enhance the potential for yield, the Fund also has a strategic allocation to international bank loans and high-yield bonds.

Less Sensitivity to Rising Rates

By combining domestic bank loans, international bank loans, and high-yield bonds, the Fund provides exposure to investments that are historically less affected by rising rates. This lower sensitivity to rising rates can help diversify nearly any fixed-income portfolio.

Experienced Management

Bank loans are a smaller asset class than many other types of bonds, which makes them difficult for individual investors to access. The Fund’s management team averages over 25 years of investment experience and is backed by the full resources of sub-adviser Wellington Management.

Portfolio Management
Managing Director
Fixed-Income Portfolio Manager
5
YRS
MANAGING THIS FUND
19
YRS
AT WELLINGTON MANAGEMENT
28
YRS
EXPERIENCE IN THIS INDUSTRY
Managing Director
Fixed-Income Portfolio Manager
5
YRS
MANAGING THIS FUND
22
YRS
AT WELLINGTON MANAGEMENT
34
YRS
EXPERIENCE IN THIS INDUSTRY

The portfolio managers are supported by the full resources of Wellington.

Performance

PERFORMANCE %
 
CUMULATIVE %
(as of 8/31/2023)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 8/31/2023)
YTD 1YR 3YR 5YR 10YR SI
Hartford Floating Rate High Income R5 7.89 7.41 3.89 2.94 3.60 4.56
Benchmark 9.14 9.42 5.97 4.40 4.22 ---
Morningstar Bank Loan Category 8.21 8.21 4.52 3.03 3.15 ---
 
CUMULATIVE %
(as of 6/30/2023)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 6/30/2023)
YTD 1YR 3YR 5YR 10YR SI
Hartford Floating Rate High Income R5 5.79 9.35 4.39 2.82 3.53 4.45
Benchmark 6.50 10.70 6.31 4.13 4.07 ---
Morningstar Bank Loan Category 5.65 9.30 4.79 2.78 3.02 ---

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

SI = Since Inception. Fund Inception: 09/30/2011

Characteristics

FUND ESSENTIALS
Inception Date 09/30/2011
Net Assets $292 million
Gross Operating Expenses 0.91%
Net Operating Expenses 0.78%
Morningstar Category Bank Loan
Lipper Classification Loan Participation Funds
CUSIP 41664M128
Fund Number 1042
FUND STATS
# of Holdings
250
Dividend Frequency
Monthly
Holdings Characteristics
Average Bank Loan Price
$96.22
Yield to Worst (%)
7.86%
% in Bank Loans
89
Effective Duration
0.15 yrs
Yields (%) (as of 8/31/23)
Distribution Yield at NAV
6.75
30-Day SEC Yield
6.40
Unsubsidized 30-Day SEC Yield
6.25
Top Ten Issuers (%)
Asurion LLC 3.19
SPDR Blackstone Senior Loan ETF 2.49
McAfee Corp. 1.79
MH Sub I LLC 1.70
UFC Holdings LLC 1.69
First Brands Group LLC 1.68
HUB International Ltd. 1.63
Sedgwick Claims Management Services, Inc. 1.54
1011778 BC Unlimited Liability Co. 1.52
Acrisure LLC 1.37
Total Portfolio % 18.60
Asurion LLC 2.94
SPDR Blackstone Senior Loan ETF 2.39
Crown Finance U.S., Inc. 2.30
MH Sub I LLC 1.94
McAfee LLC 1.78
UFC Holdings LLC 1.63
Open Text Corp. 1.60
First Brands Group LLC 1.59
HUB International Ltd. 1.57
1011778 BC Unlimited Liability Co. 1.47
Total Portfolio % 19.21
Credit Exposure (%)
Aaa/AAA 1
Aa/AA 2
A 0
Baa/BBB 5
Ba/BB 22
B 62
Caa/CCC or lower 3
Not Rated 6
Cash & Cash Offsets -2
Credit exposure is the credit ratings for the underlying securities of the Fund as provided by Standard and Poor's (S&P), Moody's Investors Service, or Fitch and typically range from AAA/Aaa (highest) to C/D (lowest). If S&P, Moody's, and Fitch assign different ratings, the median rating is used. If only two agencies assign ratings, the lower rating is used. Securities that are not rated by any of the three agencies are listed as "Not Rated." Ratings do not apply to the Fund itself or to Fund shares. Ratings may change.
Sector Distribution (%)

Exposure Chart Header

FUND
BENCHMARK UNDERWEIGHT / OVERWEIGHT

Exposure Chart Header2

6/30/23 8/31/23 8/31/23 -8 0 8
Consumer Cyclical 25 26 18
Other 10 10 3
Financial Institutions 16 16 10
Energy 3 3 2
Communications 11 11 11
Transportation 2 2 4
Utilities 0 0 2
Cash, Cash Equivalents and Cash Offsets 0 -2 0
Consumer Non-Cyclical 12 11 15
Basic Industry 1 1 5
Technology 15 15 20
Capital Goods 6 6 12
distributions and capital gains
Distribution Date Distribution NAV ordinary income short term capital gains long term capital gains total distribution
8/31/2023 8.88 $0.0499 $0.0000 $0.0000 $0.0499
7/31/2023 8.86 $0.0642 $0.0000 $0.0000 $0.0642
6/30/2023 8.82 $0.0623 $0.0000 $0.0000 $0.0623
5/31/2023 8.69 $0.0619 $0.0000 $0.0000 $0.0619
4/28/2023 8.74 $0.0614 $0.0000 $0.0000 $0.0614
3/31/2023 8.73 $0.0610 $0.0000 $0.0000 $0.0610
2/28/2023 8.86 $0.0543 $0.0000 $0.0000 $0.0543
1/31/2023 8.87 $0.0541 $0.0000 $0.0000 $0.0541
12/30/2022 8.68 $0.0583 $0.0000 $0.0000 $0.0583
12/28/2022 8.68 $0.0086 $0.0000 $0.0000 $0.0086
12/16/2022 8.70 $0.0000 $0.0000 $0.0000 $0.0000
11/30/2022 8.68 $0.0505 $0.0000 $0.0000 $0.0505
10/31/2022 8.60 $0.0480 $0.0000 $0.0000 $0.0480
9/30/2022 8.60 $0.0421 $0.0000 $0.0000 $0.0421
Past distributions are not indicative of future distributions.

Fund Literature


06/30/2023 - PDF (233 KB)
This Fund Fact Sheet summarizes the Fund's investment approach, portfolio statistics, top holdings, and current performance.
06/30/2023 - PDF (154 KB)
Current quarterly commentary from our sub-adviser, Wellington Management, which includes a performance review, attribution, statistics, and positioning and outlook for the Fund.
PDF (149 KB)
A summary of a fund's full-length prospectus that provides key information potential investors should consider before making an investment decision.
06/30/2023 - PDF (412 KB)
This module provides an overview of Wellington Management Company's Fixed Income resources and capabilities
06/30/2023 - PDF (532 KB)
This Pitchbook reviews the Fund's investment approach, investment team, investment process, and general portfolio parameters.
PDF (2 KB)
An unaudited financial report, which includes a fund's financial statements. These reports are intended for shareholders and others who have reviewed the fund's prospectus.
PDF (13 KB)
A legal document that discloses essential information about a fund, including investment objectives, risks, fees, expenses, fund manager background and other information.
PDF (2 KB)
An audited financial report, which includes a fund's financial statements. These reports are intended for shareholders and others who have reviewed the fund's prospectus.
PDF (13 KB)
A document that supplements the fund's prospectus with additional information about the fund including its operations and risks.
Important Risks: Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. • Loans can be difficult to value and less liquid than other types of debt instruments; they are also subject to nonpayment, collateral, bankruptcy, default, extension, prepayment and insolvency risks. • Investments in high-yield ("junk") bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • Fixed income security risks include credit, liquidity, call, duration, event and interest-rate risk. As interest rates rise, bond prices generally fall. • Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, regulatory and counterparty risk. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political, economic and regulatory developments. • Restricted securities may be more difficult to sell and price than other securities. • The Fund's investments may fluctuate in value over a short period of time. • Changes related to LIBOR could have an adverse impact on financial instruments that reference this rate. • The Fund may have high portfolio turnover, which could increase its transaction costs and an investor's tax liability. • Integration of environmental, social, and/or governance (ESG) characteristics into the investment process may not work as intended.
The Fund should not be considered an alternative to CDs or money market funds. This Fund is intended for investors who are looking to complement their traditional fixed-income investments.
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The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, or ETF summary prospectus and/or prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA|SIPC. ETFs are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc (SIMNA). Schroder Investment Management North America Ltd. (SIMNA Ltd) serves as a secondary sub-adviser to certain funds. HFMC, Lattice, Wellington Management, SIMNA, and SIMNA Ltd. are all SEC registered investment advisers. Hartford Funds refers to HFD, Lattice, and HFMC, which are not affiliated with any sub-adviser or ALPS. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

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