2 weeks Ago
2d illustrations and photos Market Overview Emerging-market equities ended the quarter higher, as Asia and Europe, the Middle East, and Africa (EMEA) increased, while Latin America declined. In Asia, China rebounded despite a slow and uneven economic recovery. In India, Prime Minister Narendra Modi won a third straight term in office, but his Bharatiya Janata Party unexpectedly lost its outright majority in parliament.
In EMEA, prospects for a ceasefire between Israel and Hamas remained out of sight. In Latin America, Brazil's central bank cut interest rates in May by a smaller increment of 25 basis points ('bps') after six consecutive 50 bps cuts. In Mexico, stocks fell, and the peso tumbled after president-elect Claudia Sheinbaum won the election and the ruling Morena party won a supermajority in Congress.
The MSCI Emerging Markets Index Net returned 5.0% for the quarter. Within the Index, eight out of 11 sectors rose over the period.
Information technology and communication services were the top performing sectors, while healthcare and consumer staples were the bottom performing sectors over the quarter. Performance Summary The Hartford Emerging Markets Equity Fund (I Share) outperformed the MSCI Emerging Markets Index Net during the quarter. Security selection was the primary driver of relative outperformance.
Strong selection in industrials, materials, and information technology was partially offset by selection in communication services and consumer discretionary. On a market basis, strong stock selection in India and South Korea was partially offset by selection in China. Sector allocation, a result of our bottom-up stock selection process, detracted from relative performance.
Allocation effect was driven by our underweight to information technology and communication services which was partially offset by an underweight to materials and overweight to consumer discretionary. At the issuer level, our top two relative contributors were overweights to Bharat Electronics (industrials) and China Citic Bank (financials), while our top two detractors were an overweight to Bank Mandiri (financials) and an underweight to Hon Hai Precision (information technology). Positioning & Outlook Top Ten Holdings (%) Taiwan Semiconductor Manufacturing Co.
Ltd. 10.47 Tencent Holdings Ltd.
3.59 Samsung Electronics Co. Ltd.
2.74 Alibaba Group Holding Ltd. 1.
97 MediaTek, Inc. 1.94 CTBC Financial Holding Co.
Ltd. 1.74 Quanta Computer, Inc.
1.64 SK Hynix, Inc. 1.
61 China CITIC Bank Corp. Ltd. 1.
43 Kia Corp. 1.29 Percentage Of Portfolio 28.
42 Holdings and characteristics are subject to change. Percentages may be rounded. Click to enlarge The Fund seeks to add value by using proprietary quantitative research and investment tools in a highly disciplined framework.
Fund positions and transactions are driven by two objectives: to maximize the return-to-risk ratio, as well as to minimize unintended and uncompensated risks. Stock selection is intended to be the key driver of returns. On a market basis at quarter-end, we were most overweight China and Thailand, and most underweight India and Indonesia, relative to the benchmark.
On a sector basis, we were most overweight real estate and consumer discretionary, and most underweight energy and utilities, relative to the benchmark. NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE 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 Diversified Emerging Markets Lipper Peer Group Emerging Markets 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, I, Y, R3, R4, R5 - 5/31/11; F - 2/28/17; R6 - 2/28/18. 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 5/31/11. Performance and expenses for other share classes will vary.
Additional information is in the prospectus. Only Class A assesses a sales charge. MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index that is designed to measure equity market performance in the global emerging markets.
MSCI index performance is shown net of dividend withholding tax. Indices are unmanaged and not available for direct investment. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data.
Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent. 1 Expenses as shown in the Fund's most recent prospectus.
Gross expenses do not reflect contractual expense reimbursement arrangements. Net expenses reflect such arrangements in instances when they reduce gross expenses. These arrangements remain in effect until 2/28/25 unless the Fund's Board of Directors approves an earlier termination.
Without these arrangements, performance would have been lower. 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.
• 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, such as China. • Risks associated with investments in China include currency fluctuation, political, economic, social, environmental, regulatory and other risks, including risks associated with differing legal standards. • Small- and mid-cap securities can have greater risks and volatility than large-cap securities.
• To the extent the Fund focuses on one or more sectors, the Fund may be subject to increased volatility and risk of loss if adverse developments occur. 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).
Certain funds are sub-advised by Wellington Management Company LLP. HFMC and Wellington Management are SEC registered investment advisers. HFD and HFMC are not affiliated with any sub-adviser.
Click to enlarge Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors..
