1 MSCI World Value Index captures large and mid-cap securities exhibiting overall value-style characteristics across 23 developed-market countries. The Index is designed to represent the performance of companies with relatively low valuations and high-quality characteristics. The value-investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price, and dividend yield.
2 MSCI World Growth Index captures large and mid-cap securities exhibiting overall growth-style characteristics across 23 developed-market countries. The growth-investment style characteristics for index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term historical sales per share growth trend.
3 Relative valuation is a business valuation method that compares a company's value to that of its competitors or industry peers. It's an alternative to absolute valuation models, which try to determine a company's intrinsic worth based on estimated future free cash flows discounted to present value, without any reference to another company or industry average.
4 Mean reversion, or reversion to the mean, is a theory used in finance that suggests that asset-price volatility and historical returns eventually will revert to the long-run mean or average level of the entire dataset.
5 MSCI World Index captures large and mid-cap representation across 23 developed-market countries. With 1,508 constituents, the Index covers approximately 85% of the free float-adjusted market capitalization in each country.
6 Discount to growth/premium to growth: These terms compare the valuations of value stocks relative to growth stocks. When value stocks are undervalued relative to growth stocks, they're trading at a discount. Conversely, when value stocks are overvalued relative to growth stocks, they're trading at a premium.
7 Nifty Fifty was a group of 50 large-cap stocks on the New York Stock Exchange that were most favored by institutional investors in the 1960s and 1970s. Companies in this group were usually characterized by consistent earnings growth and high price/earnings ratios.
Important Risks: Investing involves risk, including the possible loss of principal. • Different investment styles may go in and out of favor, which may cause the fund to underperform the broader stock market. • Foreign investments may be more volatile and less liquid than US investments and are subject to the risk of currency fluctuations and adverse political, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets. • Small- and mid-cap securities can have greater risks and volatility than large-cap securities. • Diversification does not ensure a profit or protect against a loss in a declining market.
Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.
The views expressed herein are those of Schroders Investment Management (Schroders), are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. The opinions stated in this document include some forecasted views. Schroders believes that they are basing their expectations and beliefs on reasonable assumptions within the bounds of what they currently know. The views and information discussed should not be construed as research, a recommendation, or investment advice, nor should they be considered an offer or solicitation to buy or sell any security. This information is current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Schroders or Hartford Funds.