• Account Access
  • Contact Us

    Pre-Sales Support
    Mutual Funds and ETFs - 800-456-7526
    Monday-Thursday: 8:00 a.m. – 6:00 p.m. ET
    Friday: 8:00 a.m. – 5:00 p.m. ET

    Post-Sales and Website Support
    888-843-7824
    Monday-Friday: 9:00 a.m. - 6:00 p.m. ET

  • Advisor Log In

Floating Rate Notes–Short Duration and Income in the Face of Rising Inflation Risks in 2021

2021 Outlook 

Markets are anticipating a potentially strong rebound in demand in 2021, but there is the potential risk of increasing inflation.

From our sub-adviser, Wellington Management
David Marshak
Managing Director, Portfolio Manager for the Hartford Floating Rate Fund and Hartford Floating Rate High Income Fund

 

Upside risk to inflation in 2021: 2020 was a year in which economies and markets can be best described as “volatile” due to the global pandemic. At the outset of 2021, we have a renewed sense of optimism. In our view, the year is setting up well for a strong rebound in the economy, particularly in the second half.



Important Risks: Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. • Loans can be difficult to value and less liquid than other types of debt instruments; they are also subject to nonpayment, collateral, bankruptcy, default, extension, prepayment, and insolvency risks. • Fixed income security risks include credit, liquidity, call, duration, event and interest-rate risk. As interest rates rise, bond prices generally fall. • Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, and counterparty risk. • Foreign investments may be more volatile and less liquid than US investments and are subject to the risk of currency fluctuations and adverse political and economic developments. • Restricted securities may be more difficult to sell and price than other securities.

WP513   222345