Client Conversations: Managing Risk in Your Fixed-Income Portfolio
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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. ● Fixed income security risks include credit, liquidity, call, duration, 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. ● Municipal securities may be adversely impacted by state/local, political, economic, or market conditions. Investors may be subject to the federal Alternative Minimum Tax as well as state and local income taxes. Capital gains, if any, are taxable. ● Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.
Hartford Floating Rate Fund and Hartford Floating Rate High Income Fund should not be considered as alternatives to CDs or money market funds. These Funds are for investors who are looking to complement their traditional fixed-income investments.
Investors should carefully consider a fund’s investment objectives, risks, charges and expenses. This and other important information is contained in the fund’s prospectus and summary prospectus (if available), which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.
The Hartford World Bond Fund (the “Fund”) has been developed solely by Hartford Funds. The Fund is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the London Stock Exchange Group plc companies. All rights in the FTSE World Government Bond Index (“WGBI” or the “Index”) vest in the relevant LSE Group company which owns the Index. FTSE Russell is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. The Index is calculated by or on behalf of the FTSE Fixed Income, LLC or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by Hartford Funds.
High Yield Bonds are represented by the Bloomberg Barclays Corporate High Yield Index, which covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Short-Duration Bonds are represented by the Bloomberg Barclays 1-3 Gov’t./Credit Index which is composed of the Bloomberg Barclays Government and Corporate Bond Indexes, including U.S. government Treasury and agency securities as well as corporate and Yankee bonds, with maturities between 1 and 3 years. Municipal Bonds are represented by the Bloomberg Barclays Municipal Index, which covers the USD-denominated long term tax exempt bond market. Long-Duration Bonds are represented by the Bloomberg Barclays U.S. Long Gov’t./Credit Index, which includes all bonds covered by the Bloomberg Barclays Gov’t./Corp. Bond Index with maturities of ten years or longer. Investment Grade Corporate Bonds are represented by the Bloomberg Barclays U.S. Corporate Investment Grade Index which measures the performance of investment grade corporate bonds. U.S. Government Bonds are represented by the Bloomberg Barclays Government Bond Index, which is made up of of the Treasury Bond Index and the agency Bond Index, as well as the 1-3 Year Government Index and the 20+ Year Treasury Index. TIPS (Treasury Inflation Protected Securities) are represented by the Bloomberg Barclays U.S. TIPS Index, which represents securities that protect against adverse inflation and provide a minimum level of real returns. Global Government Bonds are represented by the Citigroup World Government Bond Index, which is composed of 14 world government bond markets with maturities of at least 1 year. Bank Loans are represented by the CSFB Leverage Loan Index, which is a representative index of tradable senior-secured U.S. dollar-denominated non-investment grade loans. Cash Investments are represented by the BofAML US Treasury Bill 3 Months, which measures the performance of a single issue of outstanding treasury bill which matures closest to, but not beyond, three months from the rebalancing date. EM Debt is represented by the JP Morgan GBI Emerging Markets Global Diversified Index, which is a comprehensive global, local emerging-markets index, and consists of liquid, fixed-rate, domestic-currency government bonds. Diversified Portfolio is represented by an equal portion (12.5% each for 1992, 11.1% each for 1993-1997, 10% each from 1998-2001, 9.1% each from 2002-2018) of the previously listed indices. Data Source: Morningstar, Inc., 1/19
For current performance information of Hartford Funds, please see hartfordfunds.com.
This information should not be considered investment advice or a recommendation to buy/sell any security. In addition, it does not take into account the specific investment objectives, tax and financial condition of any specific person. This information has been prepared from sources believed reliable but the accuracy and completeness of the information cannot be guaranteed. This material and/or its contents are current at the time of writing and are subject to change without notice. This material may not be copied, photocopied or duplicated in any form or distributed in whole or in part, for any purpose, without the express written consent of Hartford Funds.