Hartford Schroders Emerging Markets Multi-Sector Bond Fund

8.99NAV (as of 8/20/2019)
+0.01 (+0.11%) NAV Change
Emerging Markets BondMorningstar Category
Emerging Mrkts Hard Currency Debt FundsLipper Classification

On 10/24/16, the Schroder Emerging Markets Multi-Sector Bond Fund (the “Predecessor Fund”) was reorganized into the Hartford Schroders Emerging Markets Multi-Sector Bond Fund, a new Hartford Fund that has substantially the same objective and strategies as the Predecessor Fund. As a result, all data prior to 10/24/16 is that of the Predecessor Fund.

Objective

Seeks to provide a return of long-term capital growth and income.

Overview

An emerging markets bond fund that integrates sovereign hard currency debt, local currency debt, emerging market corporate debt, and emerging market currency rates within an actively managed, strategic asset-allocation framework.

Hartford Schroders Emerging Markets Multi-Sector Bond Fund Update

Monthly portfolio review and outlook

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More About Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Jim Barrineau
Portfolio Manager

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Fernando Grisales, CFA
Portfolio Manager

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

Video Commentaries

schroders-emerging-markets-multisector-bond-process-thumbnail

Investment Process (4:00)
Portfolio Manager Jim Barrineau

Performance (%)
	YTD	1YR	3YR	5YR	10YR	SI
	% (as of 7/31/2019)	Average Annual Total Returns % (as of 7/31/2019)
Hartford Schroders Emerging Markets Multi-Sector Bond I	12.03	9.33	5.36	3.24	---	4.27
Blended Benchmark	10.76	9.58	5.04	3.53	---	---
Morningstar Emerging Markets Bond Category	10.38	8.19	4.71	2.47	---	---

Performance (%)
	YTD	1YR	3YR	5YR	10YR	SI
	% (as of 6/30/2019)	Average Annual Total Returns % (as of 6/30/2019)
Hartford Schroders Emerging Markets Multi-Sector Bond I	10.60	10.61	5.51	2.97	---	4.11
Blended Benchmark	9.65	10.62	5.12	3.28	---	---
Morningstar Emerging Markets Bond Category	9.32	9.55	4.95	2.18	---	---

SI = Since Inception. Fund Inception: 06/25/2013

Operating Expenses: Net 0.91% | Gross 1.03%

Performance prior to 10/24/16 for Class I-shares reflects the performance, fees, and expenses of the Investor Class of the Predecessor Fund. If Class I fees and expenses were reflected, performance would have differed. SI performance is calculated from 6/25/13.

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.

Growth of $10,000 (I-Share)

(as of 7/31/2019)

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Calendar Year Returns (%)
	Fund	Benchmark	Peergroup
2018	-7.05	-3.96	---
2017	13.72	11.13	---
2016	13.09	10.04	---
2015	-4.26	-4.39	---
2014	-1.33	2.13	---

Excludes sales charges. If sales charges and taxes had been included, the value would have been lower.

CharacteristicsAllocations, exposures and holdings are subject to change. Percentages may be rounded.

Characteristics

Allocations, exposures and holdings are subject to change. Percentages may be rounded.

Statistics
As of Date	7/31/2019
Net Assets	$101 million
# of Holdings	111
# of Issuers	81
Turnover (6/30/2019)	271%
Dividend Frequency	Quarterly

Holdings Characteristics
(as of 7/31/2019)
	Fund
Effective Duration	6.52 yrs

Regional Exposure (%)

(as of 7/31/2019)
label	value
Latin America	45
Asia-Pacific	25
Eastern Europe	12
Africa	9
Middle East	7
Developed Markets	2

Top 10 Countries (%)

(as of 7/31/2019)
label	percentage
Mexico	14
Argentina	13
Indonesia	11
Turkey	8
China	8
Brazil	6
Colombia	4
Ecuador	4
Malaysia	3
South Africa	3

Top Ten Countries represent the Fund's top ten country exposures based on market value.

Top Ten Currencies (%)

(as of 7/31/2019)
label	percentage
US DOLLAR	80
INDONESIAN RUP.	5
MALAYSIAN RING	3
THAILAND BAHT	3
RUSSIAN ROUBLE	3
BRAZIL REAL	2
COLOMBIAN PESO	2
Turkish Lira	2
MEXICAN PESO	2
EURO	-3

Top Ten Currencies represent the Fund's top ten currency exposures based on underlying currency exposure.

Top Ten Issuers (%)

7/31/2019
6/30/2019

(as of 7/31/2019)
label	percentageholding
Argentine Republic Government International Bond	5.73
Indonesia Treasury Bond	4.81
Turkey Government International Bond	4.09
Ecuador Government International Bond	3.89
Perusahaan Listrik Negara PT	3.26
Petroleos Mexicanos	3.21
Malaysia Government Bond	2.91
Provincia de Cordoba	2.64
Russian Federal Bond - OFZ	2.63
Lebanon Government International Bond	2.58
Total Portfolio %	35.75

(as of 6/30/2019)
label	percentageholding
Petroleos Mexicanos	6.57
Argentine Republic Government International Bond	5.13
Brazil Notas do Tesouro Nacional	4.17
Ecuador Government International Bond	3.93
Turkey Government International Bond	3.58
Export Credit Bank of Turkey	3.53
Indonesia Treasury Bond	3.32
Mexican Bonos	3.28
Perusahaan Listrik Negara PT	3.21
Lebanon Government International Bond	2.96
Total Portfolio %	39.68

PDF Full Portfolio Holdings

Credit Exposure (%)

(as of 7/31/2019)
label	value
Aaa/AAA	2
Aa/AA	1
A	13
Baa/BBB	23
Ba/BB	12
B	46
Caa/CCC or lower	1
Not Rated	2
Cash & Cash Offsets	0

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 average rating is used. If only two ratings agencies assign ratings, the average rating is used. Securities that are not rated by any of the three agencies are listed as "Not Rated". The ratings breakdown includes cash and cash equivalents. Ratings do not apply to the Fund itself or to Fund shares. Ratings may change.

Fund Essentials
Inception Date	06/25/2013
Symbol	SMSNX
CUSIP	41665H755
Fund Number	1814

Yields
As of Date	7/31/2019
30 Day SEC Yield	6.46%
Unsubsidized 30-Day SEC Yield	6.19%

Insights

Why investors are wrong to overlook emerging market debt

08/12/2019

Some investors see emerging market debt as obscure and risky, but the view doesn’t stack up with our research. It can form a valuable part of investors’ core fixed-income exposure.

The 5-Minute Forecast 3Q19

07/16/2019

A concise summary of the Hartford Funds Investment Consulting Group's views on the main challenges facing investors: Growth, Income, Volatility, Inflation, and Taxes.

2Q19 Multi-Asset Outlook: What's Really Changed?

04/15/2019

The big question now is how much higher markets can climb on the back of easier policy given that economic fundamentals continue to deteriorate.

Literature

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. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Investments in high-yield ("junk") bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • Restricted securities may be more difficult to sell and price than other securities. • 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, 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 and economic developments. These risks may be greater for investments in emerging markets or if the Fund focuses in a particular geographic region or country. • The Fund may have high portfolio turnover, which could increase its transaction costs and an investor's tax liability. • The Fund invests in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund.

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