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The Hartford Mutual Funds: The Hartford High Yield Fund

Sub-advised by Hartford Investment Management

Categories:

Morningstar Category: High Yield Bond

Investment Goal/Strategy

The Fund seeks high current income with growth of capital as a secondary objective by investing primarily in below-investment-grade debt securities.

Portfolio Managers

Image: James Serhant, CFAJames Serhant, CFA
Senior Vice President
Hartford Investment Management
15 Years of Professional Experience: 
BA, Hamilton College
Image: Carlos Feged, CFACarlos Feged, CFA
Senior Vice President
Hartford Investment Management
14 Years of Professional Experience
BS, Univeridad de Los Andes
MBA, Dartmouth College

Quarterly Portfolio Manager Commentary

Investment Approach

Our portfolio management approach consists of:

Structured Monthly Process

  • Multi-faceted Macro-economic Analysis
  • Determine Interest Rate and Economic Outlook
  • Identify Sectors Poised to Outperform

Set Sensitivity to Anticipated Changes in Interest Rates

  • Duration
  • Position for Yield Curve Structure

Leverage Sector & Industry Expertise

  • Overweight Sector / Industries Expected to Lead
  • Underweight Sector / Industries Expected to Lag

In-depth Individual Security Analysis

  • Analyze Company Fundamentals
  • Follow Technical Trends

Trading Best Execution

  • Extensive Securities Sourcing
  • Deep, Experienced Trading Desk

Risk Controls

  • Diversification
  • Monitor Relative SectorWeights
  • Control Portfolio Volatility


Disclosure

Subject to change. Percentages may be rounded.

1 For consistency, coupon strips have been excluded.

2 The average coupon and yield to maturity do not represent the performance of the Fund. These statistics do not take into account any fees and expenses associated with investments or the Fund.

3 The average credit rating of Hartford Investment Management portfolios is calculated by a third party system that assigns a higher investment grade credit rating to U.S. Government securities.

Δ In the United States, 30-day yield is a standardized yield calculation for bond funds. The formula for calculating 30-day yield is specified by the U.S. Securities and Exchange Commission (SEC). The formula translates the bond fund's current portfolio income into a standardized yield for reporting and comparison purposes. A bond fund's 30-day yield may appear in the fund's "Statement of Additional Information (SAI)" in its prospectus.

†† “Distribution yield” for Funds that declare dividends daily is calculated by multiplying the sum of actual dividends for a class declared during a month by 12 (to annualize the yield) and dividing the sum by the net asset value per share (NAV) on the last business day of the dividend period. This calculation does not take into account any sales charges paid, which would reduce the results. The Distribution Yield for the Fund will fluctuate from month to month, and is not equivalent to the 30-day SEC yield of the Fund. You should consult the Fund’s prospectus under “Fund Distributions and Tax Matters” for additional information about the Fund’s dividends and distributions policy.

1 Net operating expenses are the expenses you are currently paying to own the Fund. If the net operating expenses shown are lower than the gross operating expenses, then the net operating expenses reflect contractual fee waivers and expense reimbursements that may not be renewed. Contractual waivers or reimbursements remain in effect until February 28, 2011, and automatically renew for one-year terms unless terminated by the Fund’s Adviser (HIFSCO) or Transfer Agent (HASCO). For more information about the fee arrangement and expiration dates, please see the expense table in the prospectus.

2 Gross operating expenses shown are before management fee waivers or expense caps. Performance information may reflect historical or current expense waivers or reimbursements, without which, performance would have been lower. For more information on fee waivers and/or expense reimbursements, please see the expense table in the prospectus.

Effective September 30, 2009, Class B shares of The Hartford Mutual Funds closed to new investors, and no new or additional investments, including investments through a systematic investment plan, will be allowed in Class B shares, except for permitted exchanges. For additional information about your privileges with respect to Class B shares, please refer to your prospectus and its supplements.

A significant percentage of the Fund’s assets may be below-investment-grade securities ("high-yield securities" or "junk bonds"), which are rated lower because there is a greater possibility that the issuer may be unable to make its interest and principal payments.

This Fund invests in bank loans, which carry credit risks of nonpayment of principal or interest and risks of bankruptcy, insolvency, illiquidity, and valuation.

The Fund may invest in foreign securities, which can be riskier than investments in U.S. securities (risks may include currency risk, illiquidity risks, and risks from substantially lower trading volume on foreign markets).

The Fund is subject to credit risk (the risk that the issuing company may not be able to pay interest and principal when due), interest rate risk (the risk that your investment may go down in value when interest rates rise), and risk of loss (the risk that you could lose money on your investment).

This material is authorized only when preceded or accompanied by a currently effective prospectus. The prospectus contains detailed information about the Fund, including investment objectives, risks, charges, and fees which should be considered carefully. Please read it carefully before you invest or send money.

The Hartford Mutual Funds are underwritten and distributed by Hartford Investment Financial Services, LLC.

"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries.

MUT8394 1009

Not insured by FDIC or Any Federal Agency; May lose value; Not a deposit of or guaranteed by any bank or any bank affiliate