Hartford Schroders US Small/Mid Cap Opportunities Fund
February 2019 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 Purchasing Managers Index (PMI) is an indicator of the economic health of the manufacturing sector. A reading above 50 signals economic expansion; below 50 signals contraction.
3 Earnings Per Share is the projected growth rate in earnings per share for the next five years.
4 A measure of a company's earning power from ongoing operations, equal to earnings before deduction of interest payments, income taxes, depreciation, and amortization. EBITDA excludes income and expenditure from unusual, non-recurring or discontinued activities.
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. ● Small- and mid-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.