2 weeks Ago
DNY59 Market Overview Global equities rose in the second quarter. The global landscape was marked by disparities in inflation and economic growth across countries, while robust earnings from a select group of mega-cap technology companies helped propel the MSCI ACWI Index to all-time highs in the period. The European Central Bank began easing interest rates in June, while the US Federal Reserve held policy rate steady.
Despite several recent policy support measures, China's economic rebound was restrained by the ailing property sector. France's far-right National Rally party and its allies swept to victory in the first round of legislative elections and may end up as the largest force in the lower house of parliament, although it remains uncertain if it will secure an absolute majority. Performance Summary The Hartford Multi-Asset Income Fund ( MUTF: ITTIX , I Share) generated positive returns over the period but underperformed its benchmark.
Within equities, sub-strategy selection, a decision to underweight equities asset allocation, and security selections were detractive over the quarter. Global dividend growth, global defensive equities, and north Asia equities were the main detractors. Global income, low volatility equity, US housing equities, and global cyclicals also detracted from relative performance, while real estate investment trusts were flat.
The negative relative results were partially offset by positive impacts from green equities. Exposure to equity-linked notes generated a positive return but was neutral to relative performance. Equity risk management was flat during the quarter.
Within fixed income, income opportunities aided in outperformance. Core fixed income also contributed marginally over the quarter, while convertible bonds slightly detracted. Duration management detracted during the quarter, as long duration positions were hurt by rising interest rates.
Currency hedging was additive, as the US dollar outperformed broadly during the quarter. Positioning & Outlook In the Fund manager's view, the global macroeconomic environment is navigating through a period of significant transition. Small reductions in interest rates are anticipated to bolster risky assets, as recent inflation data shows continued progress toward achieving lower inflation rates across most economies.
However, there's an underlying risk of a more pronounced deceleration in economic growth than previously forecasted. This potential slowdown is attributed to the financial strain on lower-income consumers and heavily leveraged corporations, which have been contending with the dual challenges of elevated interest rates and diminishing pricing power. The fiscal response to these conditions has been substantial, yet the discretionary support may not fully counteract the impact of these stressors.
Moreover, the global economy is facing a broad-based and sharper-than-expected slowdown, with inflation remaining persistently high, which could exacerbate the cost-of-living crisis and tighten financial conditions further. Morningstar® Category Moderately Conservative Allocation Lipper Peer Group Mixed-Asset Target Allocation Moderate 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, Y - 7/22/96; F - 2/28/17; I - 3/31/15; R3, R4, R5 - 12/22/06; 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 7/22/96.
Performance and expenses for othershare classes will vary. Additional information is in the prospectus. Only Class A assesses a sales charge.
The Blended Index consists of 55% Bloomberg U.S. Aggregate Bond Index and 45% S&P 500 Index.
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.
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's strategy for allocating assets to specialist portfolio managers, and among different asset classes, 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.
• Investments in Equity Linked Notes (ELNs) are subject to interest, credit, management, counterparty, liquidity, and market risks, and as applicable, foreign security and currency risks. • Loans can be difficult to value and less liquid than other types of debt instruments; they are also subject to nonpayment, collateral, bankruptcy, default, extension, prepayment and insolvency risks. • Investments in high-yield ("junk") bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt 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. • Foreign investments, including foreign government debt, 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 for investments in emerging markets.
• 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. • Mortgage-related and asset-backed securities' risks include credit, interest-rate, prepayment, and extension risk. • Restricted securities may be more difficult to sell and price than other securities.
• For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. • Different investment styles may go in and out of favor, which may cause the Fund to underperform the broader stock market. • The Fund's investments may fluctuate in value over a short period of time.
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 HartfordFunds 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.
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