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Take a visual tour of the month-to-month shifts of the Hartford World Bond Fund to experience the factors that influence the Fund’s performance over time.

Hartford World Bond Fund Monthly Positioning & Outlook

Tickers: A: HWDAX C: HWDCX F: HWDFX I: HWDIX R3: HWDRX R4: HWDSX R5: HWDTX R6: HWDVX Y: HWDYX

July 2021

Market Commentary

  • Rising COVID-19 delta variant cases fueled anxiety and kept markets on edge. Most fixed-income sectors underperformed Treasuries as interest rates rallied and credit spreads widened. Global divergence in vaccination rates and lockdowns persisted.
  • Most global sovereign yields declined amid growing concerns about the delta variant and continued reassurance of accommodative policies from central-bank officials. Markets pushed back timing of future Fed rate hikes even after higher-than-expected June US inflation print. Fed Chair Powell maintained the transitory inflation thesis. In Europe, UK gilt and European yields also declined. Yields fell across Asia following China’s regulatory crackdown and renewed mobility restrictions in various countries amid rising case counts.
  • The US dollar (USD) ended mixed versus most major currencies. Perceived safe-haven currencies including the Swiss franc (CHF) and the Japanese Yen (JPY) were the top gainers while commodity and trade-linked economies across developed markets (DM) and emerging markets (EM) were the primary decliners. The Pound sterling (GBP) gained, buoyed by optimism of the United Kingdom economic reopening and a decrease in case counts. The JPY rallied, particularly after Powell’s comments on recent US inflation surge as transitory. The global flight to safety rally supported the JPY, even as COVID-19 continued to weigh on the Japanese economy.

     


 

Portfolio Performance and Attribution

  • On a total return basis, Hartford World Bond Fund performance was positive on the month, rates contributed while currency and credit detracted. On a relative basis to the benchmark1 the portfolio underperformed as the Fund’s lower duration2 detracted from performance as global yields continued their decline amid growing concerns over the delta variant.
  • In duration performance was positive, as our core exposure to high-quality government securities contributed strongly as yields ended lower on the month as a risk-off movement in markets took precedence over asset tapering announcement from several central banks. Currency detracted from total returns. Although we maintain a relatively high USD hedge ratio3, the foreign currency exposure detracted as commodity and trade-linked economies mostly declined versus the greenback.
  • Macro-driven duration strategies were neutral
  • Macro-driven currency strategies marginally detracted from performance, driven by our strategies favoring an overweight to DM commodity currencies. Perceived safe-haven currencies, including the CHF and the JPY, rallied versus commodity and trade-linked economies across DM and EM.
  • Credit strategies were negative. Opportunistic EM exposures detracted as spreads widened in the asset class following fresh lockdown restrictions in several parts of the EM world. OPEC+ announced a phased oil production increase agreement and Brent prices fell soon thereafter, pressuring the oil-exporting countries.
PERFORMANCE %
 
CUMULATIVE %
(as of 10/31/2021)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 10/31/2021)
YTD 1YR 3YR 5YR 10YR SI
Hartford World Bond I -0.79 -0.34 2.22 2.05 2.51 2.78
Benchmark -6.32 -3.55 3.97 1.98 0.96 ---
Morningstar World Bond Category -3.79 0.11 3.69 2.12 1.11 ---
 
CUMULATIVE %
(as of 9/30/2021)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 9/30/2021)
YTD 1YR 3YR 5YR 10YR SI
Hartford World Bond I -0.13 0.42 2.58 2.17 2.64 2.87
Benchmark -5.93 -3.33 3.73 1.35 1.06 ---
Morningstar World Bond Category -3.36 0.71 3.37 1.76 1.40 ---

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

SI = Since Inception. Fund Inception: 05/31/2011

Operating Expenses: Net 0.74 | Gross 0.74

 

Portfolio Positioning & Market Outlook

  • Over the month we increased the Fund’s duration to 2.84 years. We are overweight duration in Australia, South Korea, and China as China’s regulatory crackdown to reduce inequality and ensure affordability in essential consumer services increases stagflation risks rather than a reflationary spiral. We are tactically trading duration as central banks risk stepping away too quickly from accommodation as coronavirus variants stall progression out of the pandemic.
  • In currency, the Fund increased its non-USD exposure as the softness in US real yields remains a key drag on the US dollar. In tactical currency strategies, we maintain a long bias in currencies in which policymakers have indicated a desire to hike policy rates such as the New Zealand dollar. We are also long USD versus the Turkish lira and South African Rand as US economic outperformance could pressure select high-beta4 currencies.
  • The Fund’s exposure to credit sectors remains opportunistic in nature. We remain long investment grade, high yield and securitized.

Sector Exposure (%)

As of 7/31/21

Contribution to Duration (%)

As of 7/31/21 Fund Benchmark1
United States 32.01 29.90
Australia 21.08 1.44
Canada 19.64 1.33
South Korea 19.31 ---
China 12.93 ---
Norway 9.96 0.11
Euro Currency 6.43 ---
Supranational 4.10 ---
Germany
-8.99 6.01
United Kingdom -16.75 8.40

Currency Exposure (%)

As of 7/31/21 Fund Benchmark1
US Dollar 94.59 37.81
Chinese Renminbi 5.06 ---
Norwegian Krone 3.57 0.20
New Zealand Dollar 2.24 ---
Canadian Dollar 1.92 1.63
South Korean Won 1.33 ---
Swiss Franc -0.82 ---
Turkish Lira -1.61 ---
South African Rand -1.84 ---
Offshore Chinese Renminbi -4.67 ---

 

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. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. ● 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, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets or if the Fund focuses in a particular geographic region or country. ● Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. ● Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. ● 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, regulatory and counterparty risk. ● The Fund may invest in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund. ● Restricted securities may be more difficult to sell and price than other securities. ● Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. ● The purchase of securities in the To-Be-Announced (TBA) market can result in higher portfolio turnover and related expenses as well as price and counterparty risk. ● The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability.

1The benchmark is the FTSE World Government Bond Index.

2Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.

3The hedge ratio compares the value of a position protected through the use of a hedge with the size of the entire position itself. A hedge ratio may also be a comparison of the value of futures contracts purchased or sold to the value of the cash commodity being hedged.

4Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.

 

Index Definitions

FTSE World Government Bond Index is a market-capitalization weighted index consisting of government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

The Hartford World Bond Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). All rights in the FTSE World Government Bond Index (the “Index”) vest in the LSE Group. FTSE is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. All rights in the Index vest in the relevant LSE Group company which owns the index. The LSE Group does not accept any liability whatsoever to any person arising out of the use of, reliance on or any error in the Index. The LSE Group makes no claim, prediction, warranty or representation as to the results or the suitability of the Index for the purpose to which it is being used by Hartford Funds.

Indices are unmanaged and not available for direct investment.

The views expressed herein are those of Wellington Management, are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. They should not be construed as research or investment advice nor should they be considered an offer or solicitation to buy or sell any security. This information is 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 or Hartford Funds..

225105 MF6150_0821

 


 

June 2021

Market Commentary

Global fixed income sectors generated positive returns over the second quarter of 2021. Sovereign yield curves generally flattened as central banks signaled a shift toward tighter policy stances following recent high inflation data, leading market participants to perceive a reduced risk of policymakers falling behind the inflation curve. Most fixed income spread sectors outperformed as vaccination rates increased, economic data further recovered, and credit fundamentals continued to improve. The US dollar (USD) ended mixed versus most currencies.


 

Portfolio Performance

  • In 2Q21 the Fund underperformed its benchmark.1
  • The Fund generated positive total returns primarily due to our credit allocations. The fund’s lower duration2 relative to the benchmark drove fund underperformance in Q2.
  • Strategic exposure generated positive total returns but relative underperformance due to the Fund’s lower duration and higher USD exposure. The Fund’s exposure to foreign currencies marginally contributed to total returns over the period. Most European currencies ended higher versus the dollar, supported by the growth recovery and a ramp up in vaccination rollouts. Duration positioning contributed as global sovereign yields moved lower in most major economies.
  • Opportunistic strategies contributed positively in terms of total return.
  • Macro-driven currency strategies were neutral.
  • In opportunistic macro duration, our underweight duration bias in the United Kingdom and the US were negative as global yields moved lower during the quarter. The US Treasury curve flattened aggressively after the June Federal Open Market Committee (FOMC) meeting as markets perceived a reduced risk of the Fed ‘falling behind the inflation curve’.
  • In opportunistic credit strategies, our allocations to investment grade, high yield and securitized each contributed as spreads continued to tighten over the quarter amid strong economic data and ongoing global growth.
PERFORMANCE %
 
CUMULATIVE %
(as of 10/31/2021)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 10/31/2021)
YTD 1YR 3YR 5YR 10YR SI
Hartford World Bond I -0.79 -0.34 2.22 2.05 2.51 2.78
Benchmark -6.32 -3.55 3.97 1.98 0.96 ---
Morningstar World Bond Category -3.79 0.11 3.69 2.12 1.11 ---
 
CUMULATIVE %
(as of 9/30/2021)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 9/30/2021)
YTD 1YR 3YR 5YR 10YR SI
Hartford World Bond I -0.13 0.42 2.58 2.17 2.64 2.87
Benchmark -5.93 -3.33 3.73 1.35 1.06 ---
Morningstar World Bond Category -3.36 0.71 3.37 1.76 1.40 ---

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

SI = Since Inception. Fund Inception: 05/31/2011

Operating Expenses: Net 0.74 | Gross 0.74

 

Portfolio Positioning & Market Outlook

  • Over the quarter, we marginally increased the Fund’s duration to 2.70 years driven by a shift to a long bias in opportunistic duration as a stall in the global economic recovery and the spread of the COVID-19 delta variant could lead to renewed lockdowns. We increased our exposure in countries where we believe there is too much optimism priced in about policy normalization (US and Sweden) while reducing exposure in countries where policymakers have signaled imminent hikes (New Zealand).
  • In currency, we retain a high USD exposure given the Fed’s recent hawkish pivot. Our non-USD exposure is mainly split across currencies where policymakers have indicated a desire to hike policy rates such as the New Zealand Kiwi, Norwegian Krone, and South Korean Won. In opportunistic currency, we are short select Emerging Market currencies as the Fed’s recent hawkish pivot in concert with US economic outperformance could pressure select high-beta3 currencies.
  • The Fund’s exposure to credit sectors remains opportunistic in nature. We remain long in investment grade, high-yield, and securitized sectors.

Sector Exposure (%)

As of 6/30/21

Contribution to Duration (%)

As of 6/30/21 Fund Benchmark1
United States 22.32 29.48
Australia 21.65 1.52
Canada 18.15 1.36
Norway 13.67 0.12
China 13.37 ---
Supranational 10.85 ---
South Korea 8.82 ---
Sweden 6.15 0.20
Germany
-6.12 6.00
United Kingdom -11.00 8.30

Currency Exposure (%)

As of 6/30/21 Fund Benchmark1
US Dollar 98.68 37.22
Chinese Renminbi 5.00 ---
New Zealand Dollar 2.86 ---
Norwegian Krone 2.11 0.21
South Korean Won 1.33 ---
Canadian Dollar -0.46 1.77
Euro Currency -0.66 33.66
Turkish Lira -1.34 ---
South African Rand -1.85 ---
Offshore Chinese Renminbi -4.83 ---

 

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. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. ● 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, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets or if the Fund focuses in a particular geographic region or country. ● Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. ● Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. ● 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, regulatory and counterparty risk. ● The Fund may invest in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund. ● Restricted securities may be more difficult to sell and price than other securities. ● Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. ● The purchase of securities in the To-Be-Announced (TBA) market can result in higher portfolio turnover and related expenses as well as price and counterparty risk. ● The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability.

1The benchmark is the FTSE World Government Bond Index.

2Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.

3Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.

 

Index Definitions

FTSE World Government Bond Index is a market-capitalization weighted index consisting of government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

Bloomberg Barclays U.S. Aggregate Bond Index is composed of securities from the Bloomberg Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.

The Hartford World Bond Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). All rights in the FTSE World Government Bond Index (the “Index”) vest in the LSE Group. FTSE is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. All rights in the Index vest in the relevant LSE Group company which owns the index. The LSE Group does not accept any liability whatsoever to any person arising out of the use of, reliance on or any error in the Index. The LSE Group makes no claim, prediction, warranty or representation as to the results or the suitability of the Index for the purpose to which it is being used by Hartford Funds.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

Indices are unmanaged and not available for direct investment.

The views expressed herein are those of Wellington Management, are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. They should not be construed as research or investment advice nor should they be considered an offer or solicitation to buy or sell any security. This information is 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 or Hartford Funds..

224669 MF6150_0621

 


 

May 2021

Market Commentary

  • Most fixed-income sectors gained on an excess-return basis as credit spreads largely tightened, supported by continued economic recovery. The pandemic’s grip eased as new global infection cases declined and select countries lifted lockdown rules.
  • Global sovereign yields ended mixed. US yields ended lower despite growth and inflation surprises. In Europe, the European Central Bank’s taper speculation drove peripheral yields higher although sovereign bonds pared their losses into month-end after European Central Bank President Lagarde reiterated it was too early to discuss slowing Pandemic Emergency Purchase Program (PEPP) purchases. Political events in Germany sparked fiscal spending expectations, with the Green party gaining in polls. Kiwi (NZD) yields moved higher on the Reserve Bank of New Zealand’s higher cash rate projections.
  • The US dollar experienced a broad-based decline versus most major currencies. The Federal Reserve acknowledged potential inflation, but decided there wasn’t a required policy action at this point in time. Within the G10, the British pound sterling (GBP) was the top performer, driven by strong economic data. The euro (EUR) rallied despite persistent dovish European Central Bank messaging and mixed economic data. The Canadian dollar (CAD) was supported by rising commodity prices. The Chinese Yuan (CNY) gained against the US dollar (USD) alongside robust exports data and a strong Caixin services PMI.

 

Portfolio Performance

  • On a total return basis, Hartford World Bond Fund performance was flat on the month as currency strategies contributed while rates and credit detracted. On a relative basis against the benchmark1, the portfolio underperformed as the Fund’s higher USD exposure detracted from performance when the USD declined versus most major currencies during the month.
  • In duration2, performance was marginally negative, driven by our exposure to New Zealand duration. Kiwi yields moved higher on the Reserve Bank of New Zealand’s higher cash rate projections.
  • Currency contributed to total returns due to our non-USD exposure. The key contributors were our exposure to EUR and NZD. The EUR rallied despite persistent dovish ECB messaging and mixed economic data, and the NZD was supported by hawkish Reserve Bank of New Zealand (RBNZ) rhetoric.
  • Macro-driven duration strategies detracted. Our underweight bias in the US, UK, and Australia detracted. Sovereign yields in most major markets were down over the month, apart from Europe and New Zealand.
  • Macro-driven currency strategies were neutral.
  • Credit strategies were negative. Our underweight positioning in emerging market local debt detracted from performance as emerging-market currency appreciation drove positive performance in local markets. Partially offsetting negative performance was our positioning in high yield and securitized, which contributed.
PERFORMANCE %
 
CUMULATIVE %
(as of 10/31/2021)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 10/31/2021)
YTD 1YR 3YR 5YR 10YR SI
Hartford World Bond I -0.79 -0.34 2.22 2.05 2.51 2.78
Benchmark -6.32 -3.55 3.97 1.98 0.96 ---
Morningstar World Bond Category -3.79 0.11 3.69 2.12 1.11 ---
 
CUMULATIVE %
(as of 9/30/2021)
AVERAGE ANNUAL TOTAL RETURNS %
(as of 9/30/2021)
YTD 1YR 3YR 5YR 10YR SI
Hartford World Bond I -0.13 0.42 2.58 2.17 2.64 2.87
Benchmark -5.93 -3.33 3.73 1.35 1.06 ---
Morningstar World Bond Category -3.36 0.71 3.37 1.76 1.40 ---

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

SI = Since Inception. Fund Inception: 05/31/2011

Operating Expenses: Net 0.74 | Gross 0.74

 

Portfolio Positioning & Market Outlook

  • Over the month, we increased the Fund’s duration to 1.60 years, driven by a marginal reduction in the underweight duration stance within our opportunistic macro strategies. We are underweight duration across major developed markets, as we expect a strong economic rebound with moderately higher inflation. We are tactically trading duration in the US and dollar-bloc economies given uncertainty surrounding the longevity of the cycle and whether the current rebound will only claw back from the impact of the pandemic and return to the pre-crisis world of secular stagnation.
  • In currency, the Fund maintained its non-USD exposure. We are tactically managing our US dollar exposure given that medium to longer-term conditions for the USD become broadly less supportive due to sizable twin deficits and the US Fed’s commitment to maintaining easy monetary policy despite improving fundamentals. In tactical currency strategies, we moderately favor developed market commodity-linked currencies and are underweight select safe-haven and emerging market currencies given supply bottlenecks and pent-up consumer demand will support commodity inflation, while rising US yields and idiosyncratic political concerns could pressure select high-beta3 currencies.
  • The Fund’s exposure to credit sectors remains opportunistic in nature. We remain long investment grade, high-yield and securitized.

Sector Exposure (%)

As of 5/31/21

Contribution to Duration (%)

As of 5/31/21 Fund Benchmark1
Canada 29.45 1.33
China 22.99 ---
United States 19.20 28.47
Australia 17.73 1.58
Norway 17.47 0.12
New Zealand 12.53 ---
Supranational 12.48 ---
South Korea 12.19 ---
Germany
-9.08 5.94
United Kingdom
-33.62 8.38

Currency Exposure (%)

As of 5/31/21 Fund Benchmark1
US Dollar 80.05 36.46
Chinese Renminbi 5.02 ---
New Zealand Dollar 4.78 ---
Swedish Krona
4.43 0.30
Euro Currency 3.55 34.25
Norwegian Krone 3.23 0.21
Australian Dollar 2.28 1.84
South Korean Won -1.51 ---
South African Rand -1.91 ---
Offshore Chinese Renminbi -4.13 ---

 

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. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. ● 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, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets or if the Fund focuses in a particular geographic region or country. ● Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. ● Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. ● 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, regulatory and counterparty risk. ● The Fund may invest in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund. ● Restricted securities may be more difficult to sell and price than other securities. ● Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. ● The purchase of securities in the To-Be-Announced (TBA) market can result in higher portfolio turnover and related expenses as well as price and counterparty risk. ● The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability.

1Benchmark is the FTSE World Government Bond Index.

2Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.

3Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.

 

Index Definitions

FTSE World Government Bond Index is a market-capitalization weighted index consisting of government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

Bloomberg Barclays U.S. Aggregate Bond Index is composed of securities from the Bloomberg Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.

The Hartford World Bond Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). All rights in the FTSE World Government Bond Index (the “Index”) vest in the LSE Group. FTSE is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. All rights in the Index vest in the relevant LSE Group company which owns the index. The LSE Group does not accept any liability whatsoever to any person arising out of the use of, reliance on or any error in the Index. The LSE Group makes no claim, prediction, warranty or representation as to the results or the suitability of the Index for the purpose to which it is being used by Hartford Funds.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

Indices are unmanaged and not available for direct investment.

The views expressed herein are those of Wellington Management, are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. They should not be construed as research or investment advice nor should they be considered an offer or solicitation to buy or sell any security. This information is 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 or Hartford Funds..

224115 MF6150_0621

 

 

  • July 2021 Update

    July 2021

    Market Commentary

    • Rising COVID-19 delta variant cases fueled anxiety and kept markets on edge. Most fixed-income sectors underperformed Treasuries as interest rates rallied and credit spreads widened. Global divergence in vaccination rates and lockdowns persisted.
    • Most global sovereign yields declined amid growing concerns about the delta variant and continued reassurance of accommodative policies from central-bank officials. Markets pushed back timing of future Fed rate hikes even after higher-than-expected June US inflation print. Fed Chair Powell maintained the transitory inflation thesis. In Europe, UK gilt and European yields also declined. Yields fell across Asia following China’s regulatory crackdown and renewed mobility restrictions in various countries amid rising case counts.
    • The US dollar (USD) ended mixed versus most major currencies. Perceived safe-haven currencies including the Swiss franc (CHF) and the Japanese Yen (JPY) were the top gainers while commodity and trade-linked economies across developed markets (DM) and emerging markets (EM) were the primary decliners. The Pound sterling (GBP) gained, buoyed by optimism of the United Kingdom economic reopening and a decrease in case counts. The JPY rallied, particularly after Powell’s comments on recent US inflation surge as transitory. The global flight to safety rally supported the JPY, even as COVID-19 continued to weigh on the Japanese economy.

       


     

    Portfolio Performance and Attribution

    • On a total return basis, Hartford World Bond Fund performance was positive on the month, rates contributed while currency and credit detracted. On a relative basis to the benchmark1 the portfolio underperformed as the Fund’s lower duration2 detracted from performance as global yields continued their decline amid growing concerns over the delta variant.
    • In duration performance was positive, as our core exposure to high-quality government securities contributed strongly as yields ended lower on the month as a risk-off movement in markets took precedence over asset tapering announcement from several central banks. Currency detracted from total returns. Although we maintain a relatively high USD hedge ratio3, the foreign currency exposure detracted as commodity and trade-linked economies mostly declined versus the greenback.
    • Macro-driven duration strategies were neutral
    • Macro-driven currency strategies marginally detracted from performance, driven by our strategies favoring an overweight to DM commodity currencies. Perceived safe-haven currencies, including the CHF and the JPY, rallied versus commodity and trade-linked economies across DM and EM.
    • Credit strategies were negative. Opportunistic EM exposures detracted as spreads widened in the asset class following fresh lockdown restrictions in several parts of the EM world. OPEC+ announced a phased oil production increase agreement and Brent prices fell soon thereafter, pressuring the oil-exporting countries.
    PERFORMANCE %
     
    CUMULATIVE %
    (as of 10/31/2021)
    AVERAGE ANNUAL TOTAL RETURNS %
    (as of 10/31/2021)
    YTD 1YR 3YR 5YR 10YR SI
    Hartford World Bond I -0.79 -0.34 2.22 2.05 2.51 2.78
    Benchmark -6.32 -3.55 3.97 1.98 0.96 ---
    Morningstar World Bond Category -3.79 0.11 3.69 2.12 1.11 ---
     
    CUMULATIVE %
    (as of 9/30/2021)
    AVERAGE ANNUAL TOTAL RETURNS %
    (as of 9/30/2021)
    YTD 1YR 3YR 5YR 10YR SI
    Hartford World Bond I -0.13 0.42 2.58 2.17 2.64 2.87
    Benchmark -5.93 -3.33 3.73 1.35 1.06 ---
    Morningstar World Bond Category -3.36 0.71 3.37 1.76 1.40 ---

    Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

    SI = Since Inception. Fund Inception: 05/31/2011

    Operating Expenses: Net 0.74 | Gross 0.74

     

    Portfolio Positioning & Market Outlook

    • Over the month we increased the Fund’s duration to 2.84 years. We are overweight duration in Australia, South Korea, and China as China’s regulatory crackdown to reduce inequality and ensure affordability in essential consumer services increases stagflation risks rather than a reflationary spiral. We are tactically trading duration as central banks risk stepping away too quickly from accommodation as coronavirus variants stall progression out of the pandemic.
    • In currency, the Fund increased its non-USD exposure as the softness in US real yields remains a key drag on the US dollar. In tactical currency strategies, we maintain a long bias in currencies in which policymakers have indicated a desire to hike policy rates such as the New Zealand dollar. We are also long USD versus the Turkish lira and South African Rand as US economic outperformance could pressure select high-beta4 currencies.
    • The Fund’s exposure to credit sectors remains opportunistic in nature. We remain long investment grade, high yield and securitized.

    Sector Exposure (%)

    As of 7/31/21

    Contribution to Duration (%)

    As of 7/31/21 Fund Benchmark1
    United States 32.01 29.90
    Australia 21.08 1.44
    Canada 19.64 1.33
    South Korea 19.31 ---
    China 12.93 ---
    Norway 9.96 0.11
    Euro Currency 6.43 ---
    Supranational 4.10 ---
    Germany
    -8.99 6.01
    United Kingdom -16.75 8.40

    Currency Exposure (%)

    As of 7/31/21 Fund Benchmark1
    US Dollar 94.59 37.81
    Chinese Renminbi 5.06 ---
    Norwegian Krone 3.57 0.20
    New Zealand Dollar 2.24 ---
    Canadian Dollar 1.92 1.63
    South Korean Won 1.33 ---
    Swiss Franc -0.82 ---
    Turkish Lira -1.61 ---
    South African Rand -1.84 ---
    Offshore Chinese Renminbi -4.67 ---

     

    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. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. ● 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, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets or if the Fund focuses in a particular geographic region or country. ● Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. ● Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. ● 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, regulatory and counterparty risk. ● The Fund may invest in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund. ● Restricted securities may be more difficult to sell and price than other securities. ● Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. ● The purchase of securities in the To-Be-Announced (TBA) market can result in higher portfolio turnover and related expenses as well as price and counterparty risk. ● The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability.

    1The benchmark is the FTSE World Government Bond Index.

    2Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.

    3The hedge ratio compares the value of a position protected through the use of a hedge with the size of the entire position itself. A hedge ratio may also be a comparison of the value of futures contracts purchased or sold to the value of the cash commodity being hedged.

    4Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.

     

    Index Definitions

    FTSE World Government Bond Index is a market-capitalization weighted index consisting of government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

    The Hartford World Bond Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). All rights in the FTSE World Government Bond Index (the “Index”) vest in the LSE Group. FTSE is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. All rights in the Index vest in the relevant LSE Group company which owns the index. The LSE Group does not accept any liability whatsoever to any person arising out of the use of, reliance on or any error in the Index. The LSE Group makes no claim, prediction, warranty or representation as to the results or the suitability of the Index for the purpose to which it is being used by Hartford Funds.

    Indices are unmanaged and not available for direct investment.

    The views expressed herein are those of Wellington Management, are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. They should not be construed as research or investment advice nor should they be considered an offer or solicitation to buy or sell any security. This information is 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 or Hartford Funds..

    225105 MF6150_0821

  • June 2021 Update

     


     

    June 2021

    Market Commentary

    Global fixed income sectors generated positive returns over the second quarter of 2021. Sovereign yield curves generally flattened as central banks signaled a shift toward tighter policy stances following recent high inflation data, leading market participants to perceive a reduced risk of policymakers falling behind the inflation curve. Most fixed income spread sectors outperformed as vaccination rates increased, economic data further recovered, and credit fundamentals continued to improve. The US dollar (USD) ended mixed versus most currencies.


     

    Portfolio Performance

    • In 2Q21 the Fund underperformed its benchmark.1
    • The Fund generated positive total returns primarily due to our credit allocations. The fund’s lower duration2 relative to the benchmark drove fund underperformance in Q2.
    • Strategic exposure generated positive total returns but relative underperformance due to the Fund’s lower duration and higher USD exposure. The Fund’s exposure to foreign currencies marginally contributed to total returns over the period. Most European currencies ended higher versus the dollar, supported by the growth recovery and a ramp up in vaccination rollouts. Duration positioning contributed as global sovereign yields moved lower in most major economies.
    • Opportunistic strategies contributed positively in terms of total return.
    • Macro-driven currency strategies were neutral.
    • In opportunistic macro duration, our underweight duration bias in the United Kingdom and the US were negative as global yields moved lower during the quarter. The US Treasury curve flattened aggressively after the June Federal Open Market Committee (FOMC) meeting as markets perceived a reduced risk of the Fed ‘falling behind the inflation curve’.
    • In opportunistic credit strategies, our allocations to investment grade, high yield and securitized each contributed as spreads continued to tighten over the quarter amid strong economic data and ongoing global growth.
    PERFORMANCE %
     
    CUMULATIVE %
    (as of 10/31/2021)
    AVERAGE ANNUAL TOTAL RETURNS %
    (as of 10/31/2021)
    YTD 1YR 3YR 5YR 10YR SI
    Hartford World Bond I -0.79 -0.34 2.22 2.05 2.51 2.78
    Benchmark -6.32 -3.55 3.97 1.98 0.96 ---
    Morningstar World Bond Category -3.79 0.11 3.69 2.12 1.11 ---
     
    CUMULATIVE %
    (as of 9/30/2021)
    AVERAGE ANNUAL TOTAL RETURNS %
    (as of 9/30/2021)
    YTD 1YR 3YR 5YR 10YR SI
    Hartford World Bond I -0.13 0.42 2.58 2.17 2.64 2.87
    Benchmark -5.93 -3.33 3.73 1.35 1.06 ---
    Morningstar World Bond Category -3.36 0.71 3.37 1.76 1.40 ---

    Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

    SI = Since Inception. Fund Inception: 05/31/2011

    Operating Expenses: Net 0.74 | Gross 0.74

     

    Portfolio Positioning & Market Outlook

    • Over the quarter, we marginally increased the Fund’s duration to 2.70 years driven by a shift to a long bias in opportunistic duration as a stall in the global economic recovery and the spread of the COVID-19 delta variant could lead to renewed lockdowns. We increased our exposure in countries where we believe there is too much optimism priced in about policy normalization (US and Sweden) while reducing exposure in countries where policymakers have signaled imminent hikes (New Zealand).
    • In currency, we retain a high USD exposure given the Fed’s recent hawkish pivot. Our non-USD exposure is mainly split across currencies where policymakers have indicated a desire to hike policy rates such as the New Zealand Kiwi, Norwegian Krone, and South Korean Won. In opportunistic currency, we are short select Emerging Market currencies as the Fed’s recent hawkish pivot in concert with US economic outperformance could pressure select high-beta3 currencies.
    • The Fund’s exposure to credit sectors remains opportunistic in nature. We remain long in investment grade, high-yield, and securitized sectors.

    Sector Exposure (%)

    As of 6/30/21

    Contribution to Duration (%)

    As of 6/30/21 Fund Benchmark1
    United States 22.32 29.48
    Australia 21.65 1.52
    Canada 18.15 1.36
    Norway 13.67 0.12
    China 13.37 ---
    Supranational 10.85 ---
    South Korea 8.82 ---
    Sweden 6.15 0.20
    Germany
    -6.12 6.00
    United Kingdom -11.00 8.30

    Currency Exposure (%)

    As of 6/30/21 Fund Benchmark1
    US Dollar 98.68 37.22
    Chinese Renminbi 5.00 ---
    New Zealand Dollar 2.86 ---
    Norwegian Krone 2.11 0.21
    South Korean Won 1.33 ---
    Canadian Dollar -0.46 1.77
    Euro Currency -0.66 33.66
    Turkish Lira -1.34 ---
    South African Rand -1.85 ---
    Offshore Chinese Renminbi -4.83 ---

     

    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. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. ● 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, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets or if the Fund focuses in a particular geographic region or country. ● Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. ● Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. ● 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, regulatory and counterparty risk. ● The Fund may invest in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund. ● Restricted securities may be more difficult to sell and price than other securities. ● Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. ● The purchase of securities in the To-Be-Announced (TBA) market can result in higher portfolio turnover and related expenses as well as price and counterparty risk. ● The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability.

    1The benchmark is the FTSE World Government Bond Index.

    2Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.

    3Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.

     

    Index Definitions

    FTSE World Government Bond Index is a market-capitalization weighted index consisting of government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

    Bloomberg Barclays U.S. Aggregate Bond Index is composed of securities from the Bloomberg Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.

    The Hartford World Bond Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). All rights in the FTSE World Government Bond Index (the “Index”) vest in the LSE Group. FTSE is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. All rights in the Index vest in the relevant LSE Group company which owns the index. The LSE Group does not accept any liability whatsoever to any person arising out of the use of, reliance on or any error in the Index. The LSE Group makes no claim, prediction, warranty or representation as to the results or the suitability of the Index for the purpose to which it is being used by Hartford Funds.

    BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

    Indices are unmanaged and not available for direct investment.

    The views expressed herein are those of Wellington Management, are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. They should not be construed as research or investment advice nor should they be considered an offer or solicitation to buy or sell any security. This information is 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 or Hartford Funds..

    224669 MF6150_0621

  • May 2021 Update

     


     

    May 2021

    Market Commentary

    • Most fixed-income sectors gained on an excess-return basis as credit spreads largely tightened, supported by continued economic recovery. The pandemic’s grip eased as new global infection cases declined and select countries lifted lockdown rules.
    • Global sovereign yields ended mixed. US yields ended lower despite growth and inflation surprises. In Europe, the European Central Bank’s taper speculation drove peripheral yields higher although sovereign bonds pared their losses into month-end after European Central Bank President Lagarde reiterated it was too early to discuss slowing Pandemic Emergency Purchase Program (PEPP) purchases. Political events in Germany sparked fiscal spending expectations, with the Green party gaining in polls. Kiwi (NZD) yields moved higher on the Reserve Bank of New Zealand’s higher cash rate projections.
    • The US dollar experienced a broad-based decline versus most major currencies. The Federal Reserve acknowledged potential inflation, but decided there wasn’t a required policy action at this point in time. Within the G10, the British pound sterling (GBP) was the top performer, driven by strong economic data. The euro (EUR) rallied despite persistent dovish European Central Bank messaging and mixed economic data. The Canadian dollar (CAD) was supported by rising commodity prices. The Chinese Yuan (CNY) gained against the US dollar (USD) alongside robust exports data and a strong Caixin services PMI.

     

    Portfolio Performance

    • On a total return basis, Hartford World Bond Fund performance was flat on the month as currency strategies contributed while rates and credit detracted. On a relative basis against the benchmark1, the portfolio underperformed as the Fund’s higher USD exposure detracted from performance when the USD declined versus most major currencies during the month.
    • In duration2, performance was marginally negative, driven by our exposure to New Zealand duration. Kiwi yields moved higher on the Reserve Bank of New Zealand’s higher cash rate projections.
    • Currency contributed to total returns due to our non-USD exposure. The key contributors were our exposure to EUR and NZD. The EUR rallied despite persistent dovish ECB messaging and mixed economic data, and the NZD was supported by hawkish Reserve Bank of New Zealand (RBNZ) rhetoric.
    • Macro-driven duration strategies detracted. Our underweight bias in the US, UK, and Australia detracted. Sovereign yields in most major markets were down over the month, apart from Europe and New Zealand.
    • Macro-driven currency strategies were neutral.
    • Credit strategies were negative. Our underweight positioning in emerging market local debt detracted from performance as emerging-market currency appreciation drove positive performance in local markets. Partially offsetting negative performance was our positioning in high yield and securitized, which contributed.
    PERFORMANCE %
     
    CUMULATIVE %
    (as of 10/31/2021)
    AVERAGE ANNUAL TOTAL RETURNS %
    (as of 10/31/2021)
    YTD 1YR 3YR 5YR 10YR SI
    Hartford World Bond I -0.79 -0.34 2.22 2.05 2.51 2.78
    Benchmark -6.32 -3.55 3.97 1.98 0.96 ---
    Morningstar World Bond Category -3.79 0.11 3.69 2.12 1.11 ---
     
    CUMULATIVE %
    (as of 9/30/2021)
    AVERAGE ANNUAL TOTAL RETURNS %
    (as of 9/30/2021)
    YTD 1YR 3YR 5YR 10YR SI
    Hartford World Bond I -0.13 0.42 2.58 2.17 2.64 2.87
    Benchmark -5.93 -3.33 3.73 1.35 1.06 ---
    Morningstar World Bond Category -3.36 0.71 3.37 1.76 1.40 ---

    Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

    SI = Since Inception. Fund Inception: 05/31/2011

    Operating Expenses: Net 0.74 | Gross 0.74

     

    Portfolio Positioning & Market Outlook

    • Over the month, we increased the Fund’s duration to 1.60 years, driven by a marginal reduction in the underweight duration stance within our opportunistic macro strategies. We are underweight duration across major developed markets, as we expect a strong economic rebound with moderately higher inflation. We are tactically trading duration in the US and dollar-bloc economies given uncertainty surrounding the longevity of the cycle and whether the current rebound will only claw back from the impact of the pandemic and return to the pre-crisis world of secular stagnation.
    • In currency, the Fund maintained its non-USD exposure. We are tactically managing our US dollar exposure given that medium to longer-term conditions for the USD become broadly less supportive due to sizable twin deficits and the US Fed’s commitment to maintaining easy monetary policy despite improving fundamentals. In tactical currency strategies, we moderately favor developed market commodity-linked currencies and are underweight select safe-haven and emerging market currencies given supply bottlenecks and pent-up consumer demand will support commodity inflation, while rising US yields and idiosyncratic political concerns could pressure select high-beta3 currencies.
    • The Fund’s exposure to credit sectors remains opportunistic in nature. We remain long investment grade, high-yield and securitized.

    Sector Exposure (%)

    As of 5/31/21

    Contribution to Duration (%)

    As of 5/31/21 Fund Benchmark1
    Canada 29.45 1.33
    China 22.99 ---
    United States 19.20 28.47
    Australia 17.73 1.58
    Norway 17.47 0.12
    New Zealand 12.53 ---
    Supranational 12.48 ---
    South Korea 12.19 ---
    Germany
    -9.08 5.94
    United Kingdom
    -33.62 8.38

    Currency Exposure (%)

    As of 5/31/21 Fund Benchmark1
    US Dollar 80.05 36.46
    Chinese Renminbi 5.02 ---
    New Zealand Dollar 4.78 ---
    Swedish Krona
    4.43 0.30
    Euro Currency 3.55 34.25
    Norwegian Krone 3.23 0.21
    Australian Dollar 2.28 1.84
    South Korean Won -1.51 ---
    South African Rand -1.91 ---
    Offshore Chinese Renminbi -4.13 ---

     

    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. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. ● 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, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets or if the Fund focuses in a particular geographic region or country. ● Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. ● Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. ● 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, regulatory and counterparty risk. ● The Fund may invest in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund. ● Restricted securities may be more difficult to sell and price than other securities. ● Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. ● The purchase of securities in the To-Be-Announced (TBA) market can result in higher portfolio turnover and related expenses as well as price and counterparty risk. ● The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability.

    1Benchmark is the FTSE World Government Bond Index.

    2Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.

    3Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.

     

    Index Definitions

    FTSE World Government Bond Index is a market-capitalization weighted index consisting of government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

    Bloomberg Barclays U.S. Aggregate Bond Index is composed of securities from the Bloomberg Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.

    The Hartford World Bond Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). All rights in the FTSE World Government Bond Index (the “Index”) vest in the LSE Group. FTSE is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. All rights in the Index vest in the relevant LSE Group company which owns the index. The LSE Group does not accept any liability whatsoever to any person arising out of the use of, reliance on or any error in the Index. The LSE Group makes no claim, prediction, warranty or representation as to the results or the suitability of the Index for the purpose to which it is being used by Hartford Funds.

    BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

    Indices are unmanaged and not available for direct investment.

    The views expressed herein are those of Wellington Management, are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. The views expressed may not reflect the opinions of Hartford Funds or any other sub-adviser to our funds. They should not be construed as research or investment advice nor should they be considered an offer or solicitation to buy or sell any security. This information is 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 or Hartford Funds..

    224115 MF6150_0621

  • Marketing Material

     

     

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The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, or ETF summary prospectus and/or prospectus, which can be obtained from a financial professional and should be read carefully before investing.

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