Given the historic underperformance of fixed-income markets last year and the fact that cash yields more than some longer-term bonds, many investors have invested in cash or cash equivalents this year. With the consensus outlook of an economic downturn in late 2023 or early 2024, we believe that locking in higher yields by adding longer-dated bonds could prove valuable going forward. We think investors may not fully appreciate the risks of continuing to overweight short-term investments or cash and the yield cushion bonds potentially offer against further price declines. Although an allocation to cash for flexibility is prudent, we believe it’s time to start thinking longer term.

Important Risks: Investing involves risk, including the possible loss of principal. • Fixed-income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Municipal securities may be adversely impacted by state/local, political, economic, or market conditions. Although municipal securities that are exempt from federal income taxes, investors may be subject to the federal Alternative Minimum Tax as well as state and local income taxes. Capital gains, if any, are taxable.

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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.