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Managing Risk in Your Fixed-Income Portfolio

Changes in the economy and interest rates can have a big impact on your fixed-income portfolio.



This chart illustrates that not all fixed-income asset classes react the same way to economic and interest-rate changes. By using a diversified investment approach across bond sectors you could reduce the amount of risk in your portfolio, and possibly add more stable returns in changing markets. Diversification does not assure a profit, protect against a loss, or eliminate market risk.

 

Annual Returns of Fixed-Income Asset Classes Represented by Indices (as of 12/31/20)

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Past performance does not guarantee future results. Data Sources: Morningstar and FactSet, 1/21. Indices are unmanaged and not available for direct investment, and do not represent the performance of any Hartford Fund. See below for representative index definitions.

 

Fixed-Income Strategies

Taxable Fixed Income Funds A F I R6/SDR Y ETF
Hartford Core Bond           HCRB
Hartford Emerging Markets Local Debt HLDAX HLDFX HLDIX   HLDYX  
Hartford Schroders Emerging Markets Multi-Sector Bond SMSVX HFZFX SMSNX SMSRX HFZYX  
Hartford Floating Rate HFLAX HFLFX HFLIX   HFLYX  
Hartford Floating Rate High Income HFHAX HFHFX HFHIX   HFHYX  
Hartford High Yield HAHAX HAHFX HAHIX   HAHYX  
Hartford Inflation Plus HIPAX HIPFX HIPIX   HIPYX  
Hartford Schroders Securitized Income
HITAX HITFX HITIX HITSX HITYX  
Hartford Short Duration HSDAX HSDFX HSDIX HSDVX HSDYX HSRT
Hartford Strategic Income HSNAX HSNFX HSNIX HSNVX HSNYX  
Hartford Total Return Bond ITBAX ITBFX ITBIX ITBVX HABYX HTRB
Hartford World Bond HWDAX HWDFX HWDIX HWDVX HWDYX  
Tax-Advantaged Fixed Income Funds
Hartford Municipal Income HMKAX HMKFX HMKIX      
Hartford Municipal Opportunities HHMAX HHMFX HHMIX   HHMYX HMOP
Hartford Municipal Short Duration HMJAX HMJFX HMJIX      
Hartford Schroders Tax-Aware Bond STWVX HFKFX STWTX HFKVX HFKYX HTAB

Talk to your financial professional today about managing risk in your fixed-income portfolio.



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. • 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. 

ETFs are not mutual funds. Unlike traditional open-ended mutual funds, ETF shares are bought and sold in the secondary market through a stockbroker. ETFs trade on major stock exchanges and their prices will fluctuate throughout the day. Both ETFs and mutual funds are subject to risk and volatility.

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 Year Gov’t/Credit Index, which is comprised of the US Gov’t/Credit component of the US Aggregate Bond Index. Municipal Bonds are represented by the Bloomberg Barclays Municipal Index, which is considered representative of the broad market for investment grade, tax-exempt bonds with a maturity of at least one year. Long-Duration Bonds are represented by the Bloomberg Barclays US Long Gov’t/Credit Bond Index, which measures the non-securitized component of the US Aggregate Bond Index with 10 or more years to maturity. The index includes investment grade, US dollar-denominated, fixed-rate treasuries, government-related, and corporate securities. Investment Grade Corporate Bonds are represented by the Bloomberg Barclays US Corporate Bond Index, which measures the investment-grade, fixed-rate, taxable corporate bond market. The index includes US dollar-denominated securities that are publicly issued by industrial, utility, and financial issuers. US Government Bonds are represented by the Bloomberg Barclays US Government Bond Index, which is comprised of the US Treasury and US Agency Indices. The Index includes US dollar-denominated, fixed-rate, nominal US Treasuries, and US agency debentures TIPS (Treasury Inflation Protected Securities) are represented by the Bloomberg Barclays US TIPS Index, which consists of Treasury inflation-protected securities issued by the US Treasury with a remaining maturity of one year or more. Global Government Bonds are represented by the FTSE World Government Bond Index, a market-capitalization-weighted index consisting of government bond markets that have a remaining maturity of at least one year. Country eligibility is determined based on market capitalization and investability criteria. Bank Loans are represented the Credit Suisse Leveraged Loan Index, which is designed to mirror the investible universe of the US dollar-denominated leveraged loan market. Cash Investments are represented by the Bloomberg Barclays 1-3 Month US Treasury Bill Index tracks the market for treasury bills with 1 to 2.9999 months to maturity issued by the US government. 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 (11.1% each for 1996-1997, 10% each from 1998-2001, 9.1% each from 2002-2020) of the previously listed indices. Index provider notices may be viewed here hartfordfunds.com/index-notices.

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