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ADVISOR SEMINAR MATERIALS ADVISOR SEMINAR MATERIALS MARCH 31, 2017 Simplicity Is the Ultimate Sophistication Hartford Balanced Income Fund “Simplicity Is the Ultimate Sophistication.” — Leonardo da Vinci T he Golden Ratio is a special number that speaks to beauty, symmetry, and proportionality in art, architecture, and nature. Originally discovered by mathematicians, the Golden Ratio can be observed in objects as simple as a flower and as enduring as the Great Pyramids in Egypt. Its dimensions provide a sense of balance, beauty, and order, and it’s a timeless example of the power of using simple solutions to tackle complex challenges. Investing today can feel like a complex challenge. But it doesn’t have to be. Let’s explore some concepts that can help make you a better investor, and a simple strategy that has historically provided a positive experience for investors: Hartford Balanced Income Fund. The Golden Ratio in art Leonardo da Vinci wrote about the Golden Ratio extensively and featured it in his paintings to achieve simple beauty. Michelangelo applied it in “The Creation of Adam” on the ceiling of the Sistine Chapel. When you view a work of art in its frame, the Golden Ratio is often apparent. 1 3 Things to Know as You Invest 1 Stocks have historically offered the best long-term growth Stocks have provided significantly more growth than bonds, but are riskier than bonds and more susceptible to short-term market fluctuations. Stocks Have Outperformed Bonds by a Wide Margin Over the Past 30 Years Growth of $10,000 investment: 12/31/86–12/31/16 $200,000 n Stocks1 n Bonds2 $182,260 $150,000 $100,000 $63,175 $50,000 $0 12/86 12/90 12/04 12/08 12/12 12/16 Source: Thomson Reuters, 1/17. -2.92% -3.10% -0.82% -2.02% -9.10% -3.10 -9.10 -11.89% -11.89 -22.10 -22.10% -37.00% 1 Stocks are represented by the S&P 500 Index which is a market capitalization-weighted price index composed of 500 widely held common stocks. 2 Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index which 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. -37.00 Past performance is not a guarantee of future results. The performance shown above is index performance and is not representative of any Hartford Fund’s performance. Indices are unmanaged and not available for direct investment. For illustrative purposes only. 10% 8% 2 2 Bonds can help balance risk Bonds have historically been a good complement to stocks and can help reduce the risk of an $200,000 $182,260 all-equity portfolio. $150,000 Negative Calendar Years for Stocks Since 1977 n Stocks1 $100,000 n Bonds2 Total Return 30% $63,175 20% $50,000 10% 0% -10% $0 12/86 12/90 12/04 12/08 12/12 12/16 -20% -30% -40% -3.10% -2.92% 1977 1981 1990 -0.82%Source: Thomson Reuters, 1/15. -9.10% 2000 2001 2002 2008 -3.10 -2.02% -9.10 -11.89% -11.89 -22.10 -22.10% 3 30% Income is becoming harder to find -37.00% -37.00 20% rates are lower than they have been at any point in the last 30 years so you may need to Interest think beyond the income your bonds generate (i.e., bond yields) for the income you need. 10% Bond 0%Yields Are at Historic Lows 10% -20% 8% -30% 6% Yield -10% -40% 4% 1977 1981 1990 1994 1999 2000 2001 2002 2% 0% 12/86 12/91 12/96 12/01 12/06 12/01 12/16 Source: Morningstar, 1/17. Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index. Past performance is not a guarantee of future results. The performance shown above is index performance and is not representative of any Hartford Fund’s performance. Indices are unmanaged and not available for direct investment. For illustrative purposes only. 3 2008 A Strategy With Synergy and Simplicity The Hartford Balanced Income Fund is a simple strategy that offers the growth potential you need without taking excessive risk. The Fund offers investors: A mix of stocks and bonds In simple proportions reminiscent of the Golden Ratio, the Fund has a balanced target allocation of 55% bonds and 45% stocks, with fluctuations of no more than +/-5%. The bonds can provide income and help reduce volatility, while the stocks can provide growth potential. Companies you know and trust Invests primarily in dividend-paying stocks and investment-grade corporate bonds that you can feel confident investing in for the long term. Strong performance with lower volatility The Fund’s performance has been similar to stocks but with less risk. A Balance of Strong Returns with Lower Relative Risk Risk/Return Comparison (7/31/06-3/31/17) 9.1% Return Hartford Balanced Income Fund Stocks 5.6% Morningstar Allocation 30-50% Equity Category Average 2.1% 0% 15% 30% Risk (Standard Deviation) Source: Morningstar, 4/17. Start date of 7/31/06 is the Hartford Balanced Income Fund’s inception date. Risk is measured by standard deviation. Standard deviation is a measure of how returns over time have varied from the mean; a lower number signifies lower volatility. Stocks are represented by the S&P 5009.0% Index which is a market capitalization-weighted price index composed of 500 widely held common stocks. Performance data quoted represents past performance and does not guarantee future results. Indices are unmanaged and not available for direct investment. Please see page 11 for important performance information including standardized performance. 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 see hartfordfunds.com. 4 THE STRATEGY Dividend-Paying Stocks for Growth Potential Hartford Balanced Income Fund emphasizes stocks of companies that pay above-average dividends and/or companies that are expected to increase their dividends. The portfolio managers believe companies that initiate or consistently grow their dividends display confidence in the future health of their companies and demonstrate commitment to their shareholders. Dividend Growers & Initiators Have Outperformed... ...While Experiencing Less Volatility Return of stocks by dividend policy* (1/1/72–12/31/16) Volatility of stocks by dividend policy* (1/1/72-12/31/16, as measured by beta**) 9.89% 1.5% 9.09% 7.52% 1.2% 7.37% 0.9% 0.87 0.94 1.00 Dividend Growers & Initiators Dividend Payers EqualWeighted S&P 500 1.00 No Change in Dividend Policy 1.23 1.29 Dividend Cutters & Eliminators Dividend NonPayers 0.6% 2.39% 0.3% 0.0% -0.44% Dividend Growers & Initiators Dividend Payers EqualWeighted S&P 500 No Change in Dividend Policy Dividend Non-Payers Dividend Cutters & Eliminators **Beta is a measure of volatility relative to a benchmark. The benchmark has a beta of 1.0, so if the beta of an investment is 1.1, this means it has historically been 10% more volatile than the benchmark, and a beta of 0.9 would mean the investment has historically been 10% less volatile than the benchmark. The graphs and tables shown are for illustrative purposes only. Returns are based on the monthly, equal-weighted geometric average of total returns of S&P 500 component stocks, with components reconstituted monthly. Dividend-paying stocks are not guaranteed to outperform non-dividend paying stocks in a declining, flat, or rising market. The data does not represent the performance of Hartford Funds and does not take into account fees and charges associated with actual investments. Past performance is not indicative of future results. Source: Ned Davis Research, 1/17. Hartford Balanced Income Fund Top 10 Equity Holdings (as of 3/31/17) JP Morgan Chase & Co Wells Fargo & Company Philip Morris International, Inc. Cisco Systems, Inc. Johnson & Johnson Microsoft Corp. Pfizer, Inc. Chevron Corp. Merck & Co., Inc. General Electric Co. Percentage of the Portfolio Percentage Allocation Dividend Growth 30 Year Dividend Increase History 2.04 1.95 1.66 1.55 1.50 1.37 1.35 1.10 1.09 1.06 14.67 9% 3% 2% 18% 7% 16% 7% 0% 2% 1% 19 out of 30 27 out of 30 8 out of 11 5 out of 6 30 out of 30 12 out of 14 27 out of 30 29 out of 30 25 out of 30 28 out of 30 (1 year) (increases out of dividends paid) Total number of equity holdings in Fund: 65 Holdings are subject to change. Percentages may be rounded. *The “dividend payers” have been divided into three groups based on their dividend payout behavior during the previous 12 months. Companies that kept their dividends per share at the same level were classified as “no change.” Companies that raised their dividends were classified as “dividend growers and initiators.” Companies that lowered or eliminated their dividends were classified as “dividend cutters or eliminators.” Companies that were classified as either “dividend growers and initiators” or“dividend cutters and eliminators” remained in these same categories for the next 12 months, or until there was another dividend change. 5 Quality Bonds Help Reduce Volatility If you want to build a diversified portfolio that you can feel confident in for the long term, you should consider an investment that incorporates quality bonds (like investmentgrade corporate bonds) because they have historically been a complement to “risk assets,” such as stocks and high-yield bonds. Quality Bonds Have Historically Behaved Differently Correlation of quality bonds to risk assets (4/1/02-3/31/17) 1.00 0.57 0.24 Correlation is a statistical measure of how two investments move in relation to each other. A correlation of 1.0 indicates the investments have historically moved in the same direction; a correlation of -1.0 means the investments have historically moved in opposite directions; and a correlation of 0 indicates no historical relationship in the movement of the investments. DIVERSIFICATION DOES NOT ENSURE A PROFIT OR PROTECT AGAINST A LOSS. Stocks1 High Yield Bonds3 Investment-Grade Corporate Bonds4 1.00 Source: Morningstar, 4/17.0.69 0.21 Stocks are represented by the S&P 500 Index which is a market capitalization-weighted price index composed of 500 widely held common stocks. High Yield Bonds are represented by the Bloomberg Barclays Corporate High Yield Index, which covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. 4 Investment Grade Corporates are represented by the Bloomberg Barclays U.S. Corporate Investment Grade Index, which measures the performance of investment grade corporate bonds. 1 3 Hartford Balanced Income Fund uses quality bonds (i.e., investment-grade corporate bonds) as its foundation, then adds additional types of bonds for additional income and diversification. -3.32 Top 10 Fixed-Income Issuers (as of 3/31/17) (%) Fixed-Income Allocation (as of 3/31/17) Emerging Markets High Yield 9% Goldman Sachs Group, Inc. -15.81 Bank of America Corp. Citigroup, Inc. High 10% Morgan Stanley Yield Wells Fargo & Co. 10% Verizon Communications, Inc. Anheuser-Busch InBev Finance, Inc. JP Morgan Chase & Co. 80% Inc. AT&T, Investment HSBC GradeHoldings plc Percentage of the Portfolio Emerging Markets Other 4% 10% 77% InvestmentGrade Corporates -33.53 1.50 1.22 1.21 1.17 1.09 0.94 0.91 0.82 0.64 0.64 10.14 Total number of issuers in Fund: 527 Holdings are subject to change. Percentages may be rounded. Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets. Investments in high-yield bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. The Golden Ratio in architecture Many celebrated buildings reflect the Golden Ratio in their proportions. Architects believed simple rectangular facades and dimensions were most pleasing to the eye. 6 GROWTH/VOLATILITY Strong, Steady Long-Term Growth What would make you feel comfortable owning an investment for the long term? Strong long-term performance with less volatility? Hartford Balanced Income Fund provided nearly as much growth as stocks with less volatility. Long-Term Growth... Hartford Balanced Income Fund’s growth of $10,000 (7/31/06–3/31/17) and outperformed during volatile market events Financial Crisis 10/10/07-3/9/09 /11/16 U.S. Debt Ceiling Crisis 7/22/11-10/3/11 Eurozone September Debt Crisis 2014 Slump 4/2/12-6/1/12 9/19/14-10/15/14 Crude Oil Selloff 7/21/15-2/11/16 $25,000 $21,931 $20,476 $23,261 $20,978 Outperformed +6.07% $20,000 $15,000 ms Outperformed +8.36% $10,000 $5,000 $0 2/31/16 Outperformed +11.45% Outperformed +19.80% 7/31/06 Outperformed +4.65% 3/31/17 ■ Hartford Balanced Income Fund A ■ Stocks1 Source: Morningstar, 4/17. Performance data quoted represents past performance and does not guarantee future results. Indices are unmanaged and not available for direct investment. Please see page 11 for important performance information including standardized performance. The investment $22000 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 see hartfordfunds.com. $16500 ...With$11000 Only Half the Volatility of Stocks Hartford Balanced Income 1.00 Fund and the S&P 500 Index provided investors with similar long-term returns, 0.50 but with very different investor experiences: the Fund had only half the volatility of the S&P 500. 1.00 0.50 n Hartford Balanced Income Fund A n Stocks1 Source: Morningstar, 4/17. Beta (7/31/06-3/31/17) 1 Stocks are represented by the S&P 500 Index which is a market capitalization-weighted price index composed of 500 widely held common stocks. 1.00 7 0.50 -37.00% A Simple Solution for Challenging Markets Steady past peformance in a variety of markets Not only did the Fund lose half as much as the S&P 500 Index in the down market of 2008, it also captured upside in the rising market of 2009 and in the flat market of 2011. Down Market: 2008 Up Market: 2009 22.42% Flat Market: 2011 26.46% 8.70% 2.11% -18.53% -37.00% n Hartford Balanced Income Fund A n Stocks1 Source: Morningstar, 1/15. Past performance is not indicative of future results. See page 11 for important performance information including standardized performance. Indices are unmanaged and not available for direct investment. Please see back page for index definitions. Our investors stay the course Investor returns more accurately reflect an investor’s experience in a fund than total returns because they factor in dollar outflows and inflows. Investors in Hartford Balanced Income Fund bought and held instead of selling during volatile periods, and this is reflected in investor returns that are significantly higher than its peer group average. The Fund returns below represent the average investor experience as calculated by Morningstar; please see page 11 for the Fund’s actual performance. Investor Returns as of 3/31/17 Hartford Balanced Income Average Investor Morningstar Allocation 30-50% Equity Category Avg. Investor 1 Year 3 Year 5 Year 9.525.50 6.96 7.362.66 4.28 Source: Morningstar, 4/17. Investor return is a dollar-weighted return calculated by Morningstar and measures the experience of the average investor in a fund. It is not one specific investor’s experience, but rather a measure of the return earned collectively by all the investors in the fund. Investor return incorporates the impact of cash inflows and outflows from purchases and sales and the growth in fund assets. Past performance is not indicative of future results. See page 11 for important performance information including standardized performance. The Golden Ratio in nature The shapes of flowers often follow the Golden Ratio. Simple spiral patterns allow older petals to get sunlight, even as new ones appear. Their offsetting surfaces allow for the maximum flow of water to the roots. 8 $6,000 $6,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,709 $4,000 $3,247 $1,764 $3,774 $1,835 $4,000 $5,000 $5,098 $4,634 $5,295 $5,210 A Simple Strategy for Income in a Low-Yield World $4,000 $8,000 $4,000 $8,000 $4,000 INCOME $21 $10 $29 $26 $762 $42 $501 $904 Market volatility could cause you to favor bonds over stocks for income. Unfortunately, bonds don’t offer much income in today’s $2,000 $2,000 low-yield world, and stocks may be too volatile for your risk tolerance. If you were fortunate enough to create an income stream using$0 CDs and bonds prior to the start of the financial crisis (10/31/07) when $0 they paid attractive income, Hartford Balanced 2008 2009 2010 2011 2012 2013 2014 2015 2016 0 0 0 0 0 4 Income Fund still would have provided more income than both these options while significantly outperforming the S&P 500 Index. $8,000 Unpredictable Income From CDs $8,000 $0 Bonds 10-Year U.S. Treasury Bond $502 $359 $565 $2,000 Source: Morningstar, 4/17. CDs are insured by the FDIC. $267 8 00 02 0 04 0 06 0 08 0 $100,000 0 Value of Investment on 03/31/17: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000 $450 $0 $334 Total Income Received: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,546 $6,000 $418 $240 $401 $2,000 Initial Investment on 10/31/07: . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $2,418 $1,977 $3,825 $5,315 $4,844 $2,959 $1,318 $2,130 $1,348 $5,252 $5,138 $5,672 $5,637 CDs create income that fluctuates with interest rates. The income on a $100,000 investment fell from a high $4,000 of $4,233/year in 2008 to a low of $267 in 2013. $4,233 $6,331 CDs 6-Month CD $6,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Flat Income, No Growth From Bonds $8,000 $21 $10 $26 $29 $42 Value of Investment on 3/31/17: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $0 0 0 0 0 0 4 $0 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $2,000 $4,000 Total Income Received: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,000 $4,000 $4,000 $762 $3,247 $501 $2,000 $904 Initial Investment on 10/31/07: . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $6,000 $4,000 $4,709 $3,774 $1,764 $1,835 $5,000 $5,098 $4,634 $5,295 $5,210 8 82 6 6 86 02 82 4 0 8 6 4 8 8 8 442 422 4 8 While this income stream is predictable, it doesn’t offer much protection against inflation. Government bonds and Treasury $8,000 bills are guaranteed by the U.S. government. Treasury bonds provide $6,000 a stable source of income over a fixed number of years. If you bought a 10-year treasury bond in 2007, the rate would have been about 4%. $4,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Based on a 4% coupon and assumes the bond is held until maturity. U.S. Treasury Bond interest rates and principal fluctuate and results may differ from the example above. Annual Withdrawal after 12 months: . . . . . . . . . . . . . . . . . . . . . . $5,000 $2,000 (4% increase in withdrawal amount each year thereafter) $0 2009 2010 2011 2012 2013 2014 2015 2016 $52,914 Total2008 Withdrawals Received: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $502 $6,843 $359 $6,580 $565 $6,327 $267 $6,083 $2,000 $4,000 $450 $5,849 $4,000 $6,000 $8,000 $334 $5,624 $240 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Initial Investment on 10/31/07: . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $6,000 $8,000 $418 $5,408 $401 $2,959 than bonds. When income was taken during a challenging environment, it left the client with an ending value that was $6,000 $0 00 investment. 0 02 0 04 0 06 0 08 0 0 less than the 8original $2,418 $5,200 $3,825 $1,318 $1,348 Investing in stocks has historically provided rising income that typically outpaces inflation, but with greater volatility $8,000 $2,000 Rising Income with Volatility From Stocks $4,233 $5,000 $1,977 $8,000 $5,315 $4,844 $5,252 $5,138 $5,637 Stocks S&P 500 Index $4,000 $2,130 $5,672 $6,000 $6,331 $8,000 $0 $2,0002008 2009 2010 2011 2012 2013 2014 2015 2016 $0 $6,000 $4,000 $2,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 8 Source: Thomson Reuters, 4/17. 82 6 6 86 02 82 4 0 8 6 4 8 8 8 442 422 4 8 Value of Investment on 3/31/17 after taking income withdrawals: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $91,670 3 Hypothetical example and the results for other time periods could differ substantially from that shown above. The CD and Bond illustrations assume no additional contributions are made after the initial investment. The equity illustration uses periods of rising equity prices and assumes the continued reinvestment of dividends and capital gains. Mutual funds are subject to risk and $8,000 you could lose money. Taxes and transaction costs were not taken into account. If they were, the performance shown would have been lower. There are other material differences between the products which must be considered prior to investing. $6,000 Past performance is not a guarantee of future results. The performance shown above is index performance and is not representative of any 9 Hartford fund’s performance. Indices are unmanaged and not available for direct investment. For illustrative purposes only. $4,000 $0 20 Rising Income Stream and More Growth Hartford Balanced Income Fund $2,000 Chart assumes reinvestment of dividends and capital gains, and is for illustrative purposes only. Taxes and transaction $0 costs were not taken into account. Note that performance would 2008taken 2009 2010 2011 2013 the 2014 2016 have been lower if taxes were into account. There is2012 no guarantee Fund2015 will be able to generate an income stream. Data Source: Thomson Reuters, 4/17. $0 $6,843 $6,580 $6,327 $6,083 $5,849 $5,624 $5,408 $4,000 $5,200 $6,000 $5,000 $5,624 $5,000 $5,200 $5,408 Total Withdrawals Received: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,914 $4,000 Value of Investment on 3/31/17 $106,238 after taking income withdrawals: . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000 $8,000 $6,843 $6,580 $6,327 $5,849 $6,083 Initial Investment on 10/31/07: . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $8,000 Annual Withdrawal after 12 months: . . . . . . . . . . . . . . . . . . . . . $5,000 (4% increase in withdrawal amount each year thereafter) $6,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Value of a $100,000 Investment After Total Withdrawals Hartford Balanced Income Fund vs. the S&P 500 Index (10/31/07–3/31/17) $120,000 $106,238 $91,670 $8,658 $8,325 $7,697 $7,401 $7,117 $6,843 $6,327 $5,849 $5,624 $4,000 $60,000 $5,408 $6,000 $6,083 $80,000 $6,580 $8,000 $8,005 $100,000 $5,200 16 What type of income stream are you looking for? Would you like an income stream that factors in future inflation? You may be able to engineer an income stream to help meet your specific needs. The example below is hypothetical; actual results may vary and are not guaranteed. $5,000 16 Hartford Balanced Income Fund has historically provided similar rising income as stocks (as measured by the S&P 500 Index), but with less volatility due to its bond allocation. $2,000 $40,000 $0 8 00 0 02 0 04 0 06 0 08 0 n Hartford Balanced Income Fund A n Stocks1 0 $20,000 $0 10/07 2008 2009 2010 2011 2012 2013 2014 2015 2016 3/17 Performance data quoted represents past performance and does not guarantee future results. The S&P 500 Index is unmanaged and not available for direct investment. Please see page 11 for important performance information including standardized performance. 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 see hartfordfunds.com. 10 Hartford Balanced Income Fund Has Served Investors Well Morningstar Overall Ratings (A-Share)* HHHHH Out of 408 products in the Allocation 30-50% Equity Category Based on Risk-Adjusted Returns as of 3/31/17 *Hartford Balanced Income Fund’s A-Share 3-year rating was 5 stars out of 408 products, the 5-year rating was 5 stars out of 350 products, and the 10-year rating was 5 stars out of 243 products for the period herein. Other share classes may have different ratings. Past performance is no guarantee of future results. (Please see back page for additional information on Morningstar ratings). Average Annual Total Returns Performance (%) as of 3/31/17 YTD 1 Year 3 Year 5 Year 10 Year Since Inception (7/31/06) Hartford Balanced Income Fund A 2.4510.065.93 7.91 6.74 With Max Sales Charge (5.5%) 4.003.95 6.70 6.14 Blended Index5 2.3711.286.21 8.38 6.15 Morningstar Allocation 30-50% Equity Category 2.958.033.05 4.40 3.92 Morningstar Percentile Ranking 16%3% 2% 4% Fund Rank within Category 82/53011/450 9/408 12/332 7.19 6.63 ----3% 8/320 Expenses** (Class A) Net 0.96% Gross 0.96% 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 see hartfordfunds.com. The people behind the strategy Scott I. St. John, CFA Senior Managing Director Fixed-Income Portfolio Manager Professional Experience Since 1994 BS, Cornell University MBA, University of Rochester W. Michael Reckmeyer, III, CFA Senior Managing Director Equity Portfolio Manager Professional Experience Since 1984 BS, University of Wisconsin MBA, University of Wisconsin Karen H. Grimes, CFA Senior Managing Director Equity Portfolio Manager Professional Experience Since 1983 BBA, Georgia State University Ian R. Link, CFA Senior Managing Director Equity Portfolio Manager Professional Experience Since 1989 BA, University of California, Davis MBA, University of California, Berkeley Experienced money management from Wellington Management 1928 Wellington Management creates the first balanced fund $1,019 Billion in Assets Under Management as of 3/31/17 $420B in Equities $411B in Fixed Income $188B in Multi-Strategy Wellington Management is a trusted global manager 12 Offices worldwide 2,100+ Clients based in 50+ countries 200+ Investment approaches 210,000+ Securities in global securities universe Morningstar ratings reflect historical risk-adjusted performance as of March 31, 2017 and are subject to change every month. The Morningstar RatingTM for funds, or “star rating”, is calculated for funds and separate accounts with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. (Please see back page for additional information on Morningstar ratings). **Expenses stated as of the fund’s most recent prospectus. Net expenses reflect contractual expense reimbursements in instances when these reductions reduce the fund’s gross expenses. Contractual reimbursements remain in effect until 2/28/18 and automatically renew for one-year terms unless terminated. 11 Hartford Balanced Income Fund May Be Suitable for Investors Seeking: An emphasis on quality investments Primarily invests in dividend-paying stocks from companies that have the potential to increase their dividends and investment-grade bonds from strong companies. Less volatility than an all-equity fund A generous allocation to bonds may help manage downside risk better than an all-equity fund. Rising income stream potential The Fund’s emphasis on income-producing stocks and bonds allows investors to take dividend distributions in cash or engineer an income stream. 12 A Simple Solution for Complex Challenges T he Hartford Balanced Income Fund invests in quality companies—names you know and trust. It’s a simple strategy that offers the growth potential you need without taking excessive risk. Just as the Golden Ratio provides the perfect balance in art, architecture, and nature, the Fund takes a balanced approach to solve for your greatest challenges: growth, income, and volatility. 13 Hartford Funds Hartford Mutual Funds Equity Hartford Capital Appreciation Hartford Core Equity Hartford Dividend and Growth Hartford Emerging Markets Equity Hartford Schroders Emerging Markets Equity Hartford Environmental Opportunities Hartford Equity Income Hartford Global Capital Appreciation Hartford Global Equity Income Hartford Global Impact Hartford Growth Opportunities Hartford Healthcare Hartford International Equity Hartford International Growth Hartford Schroders International Multi-Cap Value Hartford International Opportunities Hartford Schroders International Stock Hartford MidCap Hartford MidCap Value Hartford Small Cap Core Hartford Small Company Hartford Schroders US Small Cap Opportunities Hartford Schroders US Small/Mid Cap Opportunities Hartford Value Opportunities A C F I R3 R4 R5 R6 SDR ITHAX HCACX HCAFX ITHIX ITHRX ITHSX ITHTX ITHVX HAIAX HGICX HGIFX HGIIX HGIRX HGISX HGITX HAITX IHGIX HDGCX HDGFX HDGIX HDGRX HDGSX HDGTX HDGVX HERAX HERCX HERFX HERIX HERRX HERSX HERTX SEMVX HHHCX HHHFX SEMNX HHHRX HHHSX HHHTX SEMTX HEOMX HEONX HEOFX HEOIX HEORX HEOSX HEOTX HEOVX HQIAX HQICX HQIFX HQIIX HQIRX HQISX HQITX HQIVX HCTAX HFCCX HCTFX HCTIX HCTRX HCTSX HCTTX HLEAX HLECX HLEFX HLEJX HLERX HLESX HLETX HGXAX HGXCX HGXFX HGXIX HGXRX HGXSX HGXTX HGXVX HGOAX HGOCX HGOFX HGOIX HGORX HGOSX HGOTX HGOVX HGHAX HGHCX HGHFX HGHIX HGHRX HGHSX HGHTX HDVAX HDVCX HDVFX HDVIX HDVRX HDVSX HDVTX HNCAX HNCCX HNCFX HNCJX HNCRX HNCSX HNCTX SIDVX HFYCX HFYFX SIDNX HFYRX HFYSX HFYTX SIDRX IHOAX HIOCX IHOFX IHOIX IHORX IHOSX IHOTX IHOVX SCVEX HSWCX HSWFX SCIEX HSWRX HSWSX HSWTX SCIJX HFMCXHMDCXHMDFXHFMIXHFMRX HFMSX HFMTXHFMVX HMVAX HMVCX HMVFX HMVJX HMVRX HMVSX HMVTX HSMAX HTSCX HSMFX HSEIX HSMRX HSMSX HSMTX IHSAX HSMCX IHSFX IHSIX IHSRX IHSSX IHSUX IHSVX SCUVX HOOCX HOOFX SCUIX HOORX HOOSX HOOTX SCURX SMDVX HFDCX HFDFX SMDIX HFDRX HFDSX HFDTX SMDRX HVOAX HVOCX HVOFX HVOIX HVORX HVOSX HVOTX HCAYX HGIYX HDGYX HERYX HHHYX HEOYX HQIYX HCTYX HLEYX HGXYX HGOYX HGHYX HDVYX HNCYX HFYYX HAOYX HSWYX HMDYX HMVYX HSMYX HSCYX HOOYX HFDYX HVOYX Fixed Income Hartford Schroders Emerging Markets Debt and Currency Hartford Emerging Markets Local Debt Hartford Schroders Emerging Markets Multi-Sector Bond Hartford Floating Rate Hartford Floating Rate High Income Hartford Schroders Global Strategic Bond Hartford High Yield Hartford Inflation Plus Hartford Municipal Income Hartford Municipal Opportunities Hartford Municipal Real Return Hartford Municipal Short Duration Hartford Quality Bond Hartford Short Duration Hartford Strategic Income Hartford Schroders Tax-Aware Bond Hartford Total Return Bond Hartford Unconstrained Bond Hartford World Bond SARVX HLDAX SMSVX HFLAX HFHAX SGBVX HAHAX HIPAX HMKAX HHMAX HTNAX HMJAX HQBAX HSDAX HSNAX STWVX ITBAX HTIAX HWDAX HFWCX HLDCX HFZCX HFLCX HFHCX HSBCX HAHCX HIPCX HMKCX HHMCX HTNCX HMJCX HQBCX HSDCX HSNCX HFKCX HABCX HTICX HWDCX HFWFX HLDFX HFZFX HFLFX HFHFX HSBFX HAHFX HIPFX HMKFX HHMFX HTNFX HMJFX HQBFX HSDFX HSNFX HFKFX ITBFX HTIFX HWDFX HFWYX HLDYX HFZYX HFLYX HFHYX HSBYX HAHYX HIPYX Multi-Strategy Hartford Balanced Hartford Balanced Income Hartford Checks and Balances Hartford Conservative Allocation Hartford Global All-Asset Hartford Growth Allocation Hartford Schroders Income Builder Hartford Moderate Allocation Hartford Multi-Asset Income ITTAX HBLAX HCKAX HCVAX HLAAX HRAAX SGMVX HBAAX HAFAX HAFCX HBLCX HCKCX HCVCX HLACX HRACX HBBCX HBACX HAICX ITTFX ITTIX ITTRX HBLFX HBLIX HBLRX HCKFX HCKIX HCKRX HCVFX HCVIX HCVRX HLAFX HLAIX HLARX HRAFX HRAIX HRARX HBBFX SGMNX HBBRX HBADX HBAIX HBARX HAFDX HAFIX HAFRX Alternatives Hartford Global Real Asset Hartford Long/Short Global Equity Hartford Real Total Return HRLAX HRLCX HLOAX HLOCX HABMX HABNX SARNX SARRX HLDIX HLDRX HLDSX HLDTX SMSNX HFZRX HFZSX HFZTX SMSRX HFLIX HFLRX HFLSX HFLTX HFHIX HFHRX HFHSX HFHTX SGBNX HSBRX HSBSX HSBTX SGBJX HAHIX HAHRX HAHSX HAHTX HIPIX HIPRX HIPSX HIPTX HMKIX HHMIX HTNIX HMJIX HQBIX HQBRX HQBSX HQBTX HSDIX HSDRX HSDSX HSDTX HSNIX HSNRX HSNSX HSNTX HSNVX STWTX HFKVX ITBIX ITBRX ITBUX ITBTX ITBVX HTIIX HTIRX HTISX HTITX HWDIX HWDRX HWDSX HWDTX HWDVX ITTSX HBLSX HCKSX HCVSX HLASX HRASX HBBSX HBASX HAFSX ITTTX HBLTX HBLVX HCKTX HCVTX HLATX HRATX HBBTX SMGRX HBATX HAFTX HRLFX HRLIX HRLRX HRLSX HRLTX HLOFX HLOIX HABAX HABOX HABFX HABQX HABRX Y HTNYX HQBYX HSDYX HSNYX HFKYX HABYX HTIYX HWDYX IHAYX HBLYX HLAYX HBBYX HAFYX HRLYX HLOYX HABPX 14 Hartford Balanced Income Fund Fund Symbols: A: C: F: I: R3: R4: R5: R6: Y: HBLAX HBLCX HBLFX HBLIX HBLRX HBLSX HBLTX HBLVX HBLYX A mix of stocks and bonds: Takes a balanced approach to help solve for your greatest challenges: growth, income, and volatility. Companies you know and trust: Invests primarily in dividend-paying stocks and investment-grade corporate bonds that you can feel confident investing in for the long term. Strong performance with lower volatility: At Hartford Funds, your investment satisfaction is our measure of success. That’s why we use an approach we call human-centric investing that considers not only how the economy and stock market impact your investments, but also how societal influences, generational differences, and your stage of life shape you as an investor. Instead of cookie-cutter recommendations and generic goals, we think you deserve personalized advice from a financial advisor who understands your financial situation and can build a financial plan tailored to your needs. Delivering strong performance is always our top priority. But the numbers on the page are only half the story. The true test is whether or not an investment is performing to your expectations. The Fund’s performance has been similar to stocks but with less risk. Important Risks: All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the Fund’s strategy for allocating assets among different asset classes and/or portfolio management teams does not work as intended, the Fund may not achieve its objective or may underperform other funds with similar investment strategies. Fixed income risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall; these risks are currently heightened because interest rates are at, or near, historical lows. For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. Foreign investments can be riskier and more volatile than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions (e.g., “Brexit”). Value investing may go out of favor, which may cause the Fund to underperform the broader stock market. 1 Stocks are represented by the S&P 500 Index which is a market capitalization-weighted price index composed of 500 widely held common stocks. 2 Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index which 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. 3 High Yield Bonds are represented by the Bloomberg Barclays Corporate High Yield Index, which covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. 4 Investment Grade Corporates are represented by the Bloomberg Barclays U.S. Corporate Investment Grade Index, which measures the performance of investment grade corporate bonds. 5 The blended index consists of 45% Russell 1000 Value Index, 44% Bloomberg Barclays Corporate Index, 5.5% JP Morgan Emerging Markets Bond Index Plus, and 5.5% Bloomberg Barclays U.S. Corporate U.S. Corporate High-Yield Bond 2% Issuer Cap Index. Morningstar ratings reflect historical risk-adjusted performance as of March 31, 2017 and are subject to change every month. The Morningstar RatingTM for funds, or “star rating”, is calculated for funds and separate accounts with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. For more information about the Morningstar Rating for funds, including its methodology, please go to global.morningstar.com/managerdisclosures. © 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/ or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (retail) or 800-279-1541 (institutional). Investors should read them carefully before they invest. Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA. Hartford Funds Management Company, LLC (HFMC) is the mutual funds’ investment manager. The fund referenced herein is sub-advised by Wellington Management Company LLP. HFD and HFMC are not affiliated with any fund sub-adviser. 201248 MF3101_0417 hartfordfunds.com888-843-7824 @hartfordfunds hartfordfunds.com/linkedin