After an extremely trying 2020, many defined contribution (DC) plan sponsors and consultants are hopeful that 2021 will bring more opportunities than challenges. From an investment standpoint, here are three key areas that may be worth focusing on in the new year.

Important Risks: Investing involves risk, including the possible loss of principal.  •  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. These risks may be greater for investments in emerging markets.  •  Small-cap securities  can have greater risks and volatility than large-cap securities.  •  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.  •  Commodity investments are subject to additional risks.  •  Diversification does not ensure a profit or protect against a loss in a declining market.

The views expressed here are those of the author. They should not be construed as investment advice or as the views of Hartford Funds or the employees of Hartford Funds. They are based on available information and are subject to change without notice. The information above is intended as general information and is not intended to provide, nor may it be construed as providing, tax, accounting, or legal advice. As with all matters of a tax or legal nature, please consult with your tax or legal counsel for advice. This material and/or its contents are current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Wellington Management.

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