It’s been over a year since the Department of Labor (DOL) proposed changes to rules related to the consideration and use of environmental, social, and governance (ESG) factors within retirement plans, highlighting that they may have a material effect on financial risks and returns. Issues such as cyber and data security, human rights within a global supply chain, and the physical risks of a changing environment impact companies and sectors widely. 

Important Risks: Investing involves risk, including the loss of principal. Integration of environmental, social, and/or governance (ESG) characteristics into the investment process may not work as intended. Focusing on investments that involve sustainable initiatives may result in foregoing certain investments and may result in different performance compared to funds that do not have a similar focus. • Fixed income security risks include credit, liquidity, call, duration, event, inflation and interest-rate risk. As interest rates rise, bond prices generally fall. • 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.

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.