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
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
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 6.59% |
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 Municipals 5.78% |
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% |
US Treasuries 3.53% |
Source: Bloomberg and Schroders, through 2023.
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 and 2023, the Bloomberg US Treasury 4-7 Year Index from 2014-2017 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 and 2023, the Bloomberg Municipal Index 7-year Index for 2017-2018, 2014, 2022 and the Bloomberg Municipal Index for 2015-2016. This analysis highlights comparable duration sectors over each period. As the durations of those sectors change, so do the indices used for the analysis. Tax rate used: 43.4% for 2014-2017 and 40.8% for 2018-2023. 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 within each period 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.
Class SDR-shares performance from 12/30/14 through 10/21/16 reflects the performance, fees, and expenses of R6 Class of the predecessor fund Schroder Broad Tax-Aware Value Bond Fund (the "Predecessor Fund") and, prior to 12/30/14, the performance, fees, and expenses of the Predecessor Fund's Investor Class. If Class SDR fees and expenses were reflected, performance would have differed. SI performance is calculated from 10/03/11.
Characteristics
Dividend Frequency | Monthly |
---|---|
# of Issuers | 202 |
# of Holdings | 286 |
Yield to Worst (%) | 3.96% |
---|---|
Effective Duration | 8.74 yrs |
Tax Exempt Municipal | 92 |
US Treasuries | 7 |
Corporate | 2 |
Taxable Municipal | 1 |
Agency Mortgage Backed Securities | 0 |
Other | 0 |
Cash | 0 |
Asset Backed Securities | 0 |
Government Related Agencies | 0 |
Mortgage Backed Securities | 0 |
Cash and Cash Equivalents | -1 |
Aaa/AAA | 49 |
Aa/AA | 35 |
A | 14 |
Baa/BBB | 4 |
Ba/BB | 0 |
B | 0 |
Caa/CCC or lower | 0 |
Not Rated | 0 |
Cash & Cash Offsets | -2 |
U.S. Treasury Bonds | 6.55 |
Texas Department of Housing & Community Affairs, TX, Rev | 2.44 |
Main Street Natural Gas, Inc., GA, Rev | 2.27 |
Kentucky Public Energy Auth, KY, Rev | 2.06 |
Iowa Finance Auth, IA, Rev | 1.93 |
Texas Municipal Gas Acquisition & Supply Corp. IV, TX, Rev | 1.89 |
Patriots Energy Group Financing Agency, SC, Rev | 1.62 |
Dickinson Independent School Dist, TX, GO | 1.59 |
Triborough Bridge & Tunnel Auth Sales Tax, NY, Rev | 1.54 |
New Caney Independent School Dist, TX, GO | 1.48 |
Total Portfolio % | 23.37 |
Distribution Yield at NAV | 3.48 |
30-Day SEC Yield | 3.43 |
Unsubsidized 30-Day SEC Yield
|
3.38 |
General Obligation | 35 |
Fed Agency | 22 |
Corp Supported | 10 |
Utilities | 6 |
Transportation | 4 |
Healthcare | 4 |
Other Revenue | 4 |
Sales Tax Revenue | 2 |
Education | 2 |
Leasing | 1 |
Higher Education | 1 |
Housing | 0 |
Pre-Refunded | 0 |
Insured | 0 |
Special Assessment | 0 |
Moral Obligation | 0 |
Not for Profit | 0 |
Tax Exempt Municipal | 0 |
Tax Increment Financing | 0 |
Floating Rate Bonds | 0 |
Other | 0 |
Distribution Date | Distribution NAV | ordinary income | short term capital gains | long term capital gains | total distribution |
---|---|---|---|---|---|
8/27/2024 | 10.28 | $0.0298 | $0.0000 | $0.0000 | $0.0298 |
7/26/2024 | 10.19 | $0.0299 | $0.0000 | $0.0000 | $0.0299 |
6/26/2024 | 10.13 | $0.0314 | $0.0000 | $0.0000 | $0.0314 |
5/29/2024 | 9.97 | $0.0301 | $0.0000 | $0.0000 | $0.0301 |
4/26/2024 | 9.98 | $0.0314 | $0.0000 | $0.0000 | $0.0314 |
3/26/2024 | 10.15 | $0.0282 | $0.0000 | $0.0000 | $0.0282 |
2/27/2024 | 10.18 | $0.0319 | $0.0000 | $0.0000 | $0.0319 |
1/29/2024 | 10.18 | $0.0237 | $0.0000 | $0.0000 | $0.0237 |
12/27/2023 | 10.33 | $0.0371 | $0.0000 | $0.0000 | $0.0371 |
12/15/2023 | 10.29 | $0.0000 | $0.0000 | $0.0000 | $0.0000 |
11/29/2023 | 10.06 | $0.0313 | $0.0000 | $0.0000 | $0.0313 |
10/30/2023 | 9.28 | $0.0301 | $0.0000 | $0.0000 | $0.0301 |
9/27/2023 | 9.57 | $0.0296 | $0.0000 | $0.0000 | $0.0296 |
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 Funds products.