A Different Approach to Core Bond Investing
Combining investment grade tax-exempt bonds with taxable fixed income may help investors seeking total returns on an after-tax basis.
After-Tax Returns of Fixed Income Indices
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
US Municipals -0.97% |
US Municipals 6.05% |
US Municipals 3.31% |
US Corporates 3.85% |
US Municipals 4.48% |
US Municipals 1.66% |
US Corporates 11.07% |
US Corporates 8.03% |
US Municipals 1.91% |
US Municipals -5.97% |
US Corporates -1.65% |
US Corporates 3.39% |
US Treasuries 0.93% |
US Treasuries 0.42% |
US Corporates 3.36% |
US Treasuries 0.49% |
US Municipals 7.70% |
US Treasuries 7.76% |
US Corporates -2.46% |
US Treasuries -9.95% |
US Treasuries -3.45% |
US Treasuries 2.96% |
US Corporates -0.50% |
US Municipals 0.26% |
US Treasuries 0.66% |
US Corporates -2.22% |
US Treasuries 5.89% |
US Municipals 5.63% |
US Treasuries -3.38% |
US Corporates -12.50% |
Source: Bloomberg and Schroders, through 2022.
Past performance does not guarantee future results.Indices are unmanaged and not available for direct investment.
US Corporates are represented by the Bloomberg US Credit Corporate 5-7 Year Index; US Treasuries are represented by the Bloomberg US Treasury 5-7 Index for 2018-2021, the Bloomberg US Treasury 4-7 Year Index from 2012-2017 and the Bloomberg US Treasury 3-7 Year Index for 2022. US Municipals are represented by the Bloomberg Municipal Index 15-year Index for 2021, the Bloomberg Municipal Index 10-year Index for 2019-2020, the Bloomberg Municipal Index 7-year Index for 2017-2018, 2012-2014, 2022 and the Bloomberg Municipal Index for 2015-2016. All indices have a duration of +/- 0.70 years of one another. Tax rate used: 35% for 2012, 43.4% for 2013 – 2017 and 40.4% for 2018-2022. The tax rates include the net investment income tax. Returns do not reflect state and/or local taxes, nor do they reflect the AMT. Other effective tax rates would have achieved different results. Actual results will vary. Duration between indices is within 0.5 years of one another. Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.
The portfolio managers are supported by the full resources of Schroders.
Performance
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: 10/03/2011
Share Class Inception: 10/24/16.
Performance prior to 10/24/16 for Class C-shares reflects the performance, fees, and expenses of the Investor Class of the predecessor fund Schroder Broad Tax-Aware Value Bond Fund. If Class C fees and expenses were reflected, performance would have differed. SI performance is calculated from 10/03/11.
Characteristics
Dividend Frequency | Monthly |
---|---|
# of Issuers | 152 |
# of Holdings | 202 |
Yield to Worst (%) | 4.57% |
---|---|
Effective Duration | 9.49 yrs |
Tax Exempt Municipal | 79 |
Cash & Cash Equivalents | 7 |
Corporate | 6 |
US Treasuries | 6 |
Cash | 2 |
Taxable Municipal | 1 |
Government Related Agencies | 0 |
Asset Backed Securities | 0 |
Mortgage Backed Securities | 0 |
Other | 0 |
Agency Mortgage Backed Securities | 0 |
Aaa/AAA | 36 |
Aa/AA | 49 |
A | 11 |
Baa/BBB | 4 |
Ba/BB | 0 |
B | 0 |
Caa/CCC or lower | 0 |
Not Rated | 0 |
Cash & Cash Offsets | 0 |
30-Day SEC Yield | 2.83 |
Unsubsidized 30-Day SEC Yield
|
2.83 |
General Obligation | 38 |
Fed Agency | 8 |
Other Revenue | 7 |
Corp Supported | 6 |
Utilities | 6 |
Floating Rate Bonds | 4 |
Transportation | 3 |
Sales Tax Revenue | 2 |
Education | 2 |
Healthcare | 2 |
Leasing | 1 |
Higher Education | 1 |
Housing | 0 |
Pre-Refunded | 0 |
Other | 0 |
Not for Profit | 0 |
Tax Increment Financing | 0 |
Insured | 0 |
Tax Exempt Municipal | 0 |
Moral Obligation | 0 |
Special Assessment | 0 |
Distribution Date | Distribution NAV | ordinary income | short term capital gains | long term capital gains | total distribution |
---|---|---|---|---|---|
8/29/2023 | 9.90 | $0.0197 | $0.0000 | $0.0000 | $0.0197 |
7/28/2023 | 10.16 | $0.0173 | $0.0000 | $0.0000 | $0.0173 |
6/28/2023 | 10.23 | $0.0176 | $0.0000 | $0.0000 | $0.0176 |
5/30/2023 | 10.08 | $0.0165 | $0.0000 | $0.0000 | $0.0165 |
4/27/2023 | 10.22 | $0.0175 | $0.0000 | $0.0000 | $0.0175 |
3/29/2023 | 10.23 | $0.0144 | $0.0000 | $0.0000 | $0.0144 |
2/27/2023 | 10.04 | $0.0172 | $0.0000 | $0.0000 | $0.0172 |
1/30/2023 | 10.31 | $0.0118 | $0.0000 | $0.0000 | $0.0118 |
12/28/2022 | 9.98 | $0.0141 | $0.0000 | $0.0000 | $0.0141 |
12/16/2022 | 10.15 | $0.0000 | $0.0000 | $0.0000 | $0.0000 |
11/29/2022 | 10.01 | $0.0125 | $0.0000 | $0.0000 | $0.0125 |
10/28/2022 | 9.49 | $0.0115 | $0.0000 | $0.0000 | $0.0115 |
9/28/2022 | 9.63 | $0.0120 | $0.0000 | $0.0000 | $0.0120 |
Insights
Fund Literature
BLOOMBERG® and any Bloomberg Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the indices (collectively, "Bloomberg") and have been licensed for use for certain purposes by Hartford Funds. Bloomberg is not affiliated with Hartford Funds, and Bloomberg does not approve, endorse, review, or recommend any Hartford Funds product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Hartford Fund products.