2 weeks Ago
LeoPatrizi/E+ via Getty Images Market Overview Equity markets continued to climb in 2Q24, with major domestic indices posting record highs. However, markets have been very narrow, with mega-cap tech leading the rest of the marketcap sectors. In fixed income, higher yielding credit sectors tended to outperform government bonds as spreads were stable to modestly wider but benefitted from additional carry in the period.
The broad fixed-income market, represented by the Bloomberg US Aggregate Bond Index, was nearly flat for the quarter, returning 0.07%. Shorter duration positioning was in favor as rates increased in the period.
The FOMC left the target range for the federal funds rate unchanged at 5.25-5.5% at its June meeting.
Performance Summary Hartford Conservative Allocation Fund ( MUTF: HCVIX , I share) outperformed its benchmark during the period. The main driver of the Fund's outperformance vs. the benchmark was performance of the underlying positions relative to their individual benchmarks.
In particular, Hartford Multifactor US Equity ETF, Hartford International Opportunities Fund, and Hartford Core Bond ETF outperformed their respective benchmarks. Exposure to domestic small-cap equities, via Hartford Small Company Fund and Hartford Small Cap Value Fund, detracted from outperformance, partially offsetting these effects. Positioning & Outlook Over the period, we increased our positions in the Hartford Inflation Plus Fund and decreased our position in Hartford Core Bond ETF.
We remain overweight equity as the overall economic environment is favorable for risk assets. Falling global inflation, easing central banks, and improving earnings and global economic conditions should continue to fuel investor risk appetite for equities. US equities, particularly the Magnificent 7 names, have continued to lead in 2024 but we see an opportunity for the rally to broaden as growth improves in Europe.
We expect that fixed income will revert to its traditional role as a hedge against equity-market weakness. However, we continue to be underweight fixed income. Performance (%) Average Annual Total Returns Expenses 1 Class QTD YTD 1 Year 3 Year 5 Year 10 Year SI Gross Net A 5.
08 10.95 18.26 -2.
34 4.15 3.32 2.
23 1.50% 1.45% A with 5.
5% Max Sales Charge - - 11.75 -4.17 2.
98 2.73 1.79 - - F 5.
13 11.19 18.73 -1.
89 4.6 3.76 2.
65 1.04% 0.98% I 5.
08 11.09 18.57 -2.
07 4.46 3.65 2.
57 1.15% 1.15% R3 4.
99 10.87 18.04 -2.
57 3.87 3.05 1.
96 1.76% 1.70% R4 5.
08 10.95 18.24 -2.
36 4.15 3.33 2.
24 1.46% 1.45% R5 5.
14 11.09 18.57 -2.
21 4.4 3.56 2.
49 1.16% 1.15% R6 5.
2 11.22 18.72 -1.
88 4.62 3.78 2.
68 1.04% 0.98% Y 5.
21 11.12 18.76 -1.
97 4.51 3.71 2.
63 1.15% 1.10% MSCI Emerging Markets Index 5 7.
49 12.55 -5.07 3.
1 2.79 - - - Morningstar Category 3.99 6.
87 12.3 -4.3 3.
76 2.74 - - - Lipper Peer Group 3.93 7.
15 11.7 -5.42 3.
43 2.63 - - - Click to enlarge Morningstar ® Category Moderately Conservative Allocation Lipper Peer Group Mixed-Asset Target Allocation Conservative 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. For more current performance information to the most recent month ended, please visit Home . Share Class Inception: A - 5/28/04; F - 2/28/17; I - 8/31/06; R3, R4, R5 - 12/22/06.
Performance shown prior to the inception of a class reflects performance and operating expenses of another class(es) (excluding sales charges, if applicable). Had fees and expenses of a class been reflected for the periods prior to the inception of that class, performance would be different. Since inception (SI) performance is from 5/28/04.
Performance and expenses for other share classes will vary. Additional information is in the prospectus. Only Class A assesses a sales charge.
The Blended Index consists of 65% Bloomberg U.S. Aggregate Bond Index, 25% Russell 3000 Index and 10% MSCI ACWI ex USA Index (net of dividend withholding tax).
Indices are unmanaged and not available for direct investment. BLOOMBERG® and any Bloomberg Index are service marks of Bloomberg Finance L.P.
and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the indices (collectively, "Bloomberg") and have been licensed for use for certain purposes by Hartford Funds. Bloomberg is not affiliated with Hartford Funds, and Bloomberg does not approve, endorse, review, or recommend any Hartford Funds product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Hartford Funds products.
The blended returns are calculated by Hartford Funds and include, among other index provider data, end of day index level values licensed from MSCI ("MSCI Data"). For the avoidance of doubt, MSCI is not the benchmark "administrator" for, or a "contributor", "submitter" or "supervised contributor" to, the blended returns, and the MSCI Data is not considered a "contribution" or "submission" in relation to the blended returns, as those terms may be defined in any rules, laws, regulations, legislation or international standards. MSCI Data is provided "AS IS" without warranty or liability and no copying or distribution is permitted.
MSCI does not make any representation regarding the advisability of any investment or strategy and does not sponsor, promote, issue, sell or otherwise recommend or endorse any investment or strategy, including any financial products or strategies based on, tracking or otherwise utilizing any MSCI Data, models, analytics or other materials or information. 1 Expenses as shown in the Fund's most recent prospectus. 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 invests in other underlying funds in a fund-of-funds structure. The ability of the Fund to meet its investment objective is directly related to the ability of the underlying funds to meet their objectives as well as the investment manager's allocation among those underlying funds.
The Fund is subject to the risks of the underlying funds, in direct proportion to the amount of assets it invests in each underlying fund. The underlying funds are subject to the risks specific to their investment strategies, such as market, small- and mid-cap securities, foreign securities, emerging-market securities, fixed-income securities (which carry credit, liquidity, call, duration, and interest-rate risks), mortgage-related and asset-backed securities, and derivative risks, and to the extent the underlying fund is an ETF, risks associated with ETFs. Investors should carefully consider a fund's investment objectives, risks, charges and expenses.
This and other important information is contained in a fund's full prospectus and summary prospectus, which can be obtained by visiting Home . Please read it carefully before investing. Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA.
Advisory services are provided by Hartford Funds Management Company, LLC (HFMC), an SEC registered investment adviser. Click to enlarge Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. Editor's Note: This article covers one or more microcap stocks.
Please be aware of the risks associated with these stocks..
