Hartford Schroders US Small Cap Opportunities Fund
May 2018 Monthly Update
The Fund seeks capital appreciation by combining three diversified, uncorrelated sources of potential alpha1:
Companies that can offer an unrecognized or underappreciated growth dynamic over the ensuing 2-3 years
Companies with stable growth characteristics, slower but more predictable revenues and earnings patterns
Companies whose growth engine appears to have broken, but there appears to be evidence that growth is returning
1 Alpha is a measure of the performance of a portfolio after adjusting for risk. Alpha is calculated by comparing the volatility of the portfolio and comparing it to some benchmark. The alpha is the excess return of the portfolio over the benchmark.
2 S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. Indices are unmanaged and not available for direct investment.
3 Russell 2500 Index measures the performance of the small to mid-cap segment of the US equity universe, commonly referred to as "smid" cap. The Russell 2500 is a subset of the Russell 3000 Index.
4 Russell Microcap Index is a capitalization-weighted index of 2,000 small cap and micro cap stocks that captures the smallest 1,000 companies in the Russell 2000, plus 1,000 smaller US-based listed stocks.
5 Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.
6 There can be no assurance that any estimates or projections will be achieved due to evolving market and economic conditions.
Indices are unmanaged and not available for direct investment.
Important Risks: Investing involves risk, including the possible loss of principal. There is no guarantee a fund will achieve its stated objective. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ● Small-cap securities can have greater risks and volatility than large-cap securities ● The main risk of real estate related securities is that the value of the underlying real estate may decrease in value.
The views expressed herein are those of Schroder Investment Management North America Inc. (Schroders) are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. They may not reflect the views of Hartford Funds or any other sub-adviser to our funds and should not be construed as research or investment advice or as an offer or solicitation to buy or sell any security.