N-CSR 1 d56424dncsr.htm HARTFORD MUTUAL FUNDS II, INC. HARTFORD MUTUAL FUNDS II, INC.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-00558

 

 

THE HARTFORD MUTUAL FUNDS II, INC.

(Exact name of registrant as specified in charter)

 

 

690 Lee Road, Wayne, Pennsylvania 19087

(Address of Principal Executive Offices) (Zip Code)

 

 

Thomas R. Phillips, Esquire

Hartford Funds Management Company, LLC

690 Lee Road

Wayne, Pennsylvania 19087

(Name and Address of Agent for Service)

 

 

Registrant’s telephone number, including area code: (610) 386-4068

Date of fiscal year end: October 31

Date of reporting period: October 31, 2020

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 


Item 1. Reports to Stockholders.

 


LOGO

Hartford FUNDS OUR BENCHMARK IS THE INVESTOR®. Hartford Domestic Equity Funds Annual Report October 31, 2020 The Hartford Capital Appreciation Fund Hartford Core Equity Fund The Hartford Dividend and Growth Fund The Hartford Equity Income Fund The Hartford Growth Opportunities Fund The Hartford Healthcare Fund The Hartford MidCap Fund The Hartford MidCap Value Fund Hartford Quality Value Fund The Hartford Small Cap Growth Fund Hartford Small Cap Value Fund The Hartford Small Company Fund Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Funds’ website (hartfordfunds.com). You will be notified by mail each time a report is posted and provided with a website link to access the report. You may at any time elect to receive paper copies of all shareholder reports free of charge by contacting your financial intermediary or, if you invest directly with a Fund, by calling 1-888-843-7824. Your election to receive reports in paper will apply to all Hartford Funds held in your account if you invest through your financial intermediary or directly with a Fund. If you previously elected to receive shareholder reports and other communications electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications electronically anytime by contacting your financial intermediary.


LOGO

A MESSAGE FROM THE PRESIDENT

Dear Shareholders:

Thank you for investing in Hartford Mutual Funds. The following is the Funds’ Annual Report covering the period from November 1, 2019 through October 31, 2020.

Market Review

During the 12 months ended October 31, 2020, U.S. stocks, as measured by the S&P 500 Index,1 gained 9.71% – an impressive number, to be sure, but one that doesn’t

 

begin to capture the drama of a pandemic-driven roller-coaster ride that has plunged the world into economic depths not seen since the Great Recession.

The period began with record-low unemployment, positive stock performances, and an optimistic global growth outlook. In late 2019, for example, months of trade tensions between the U.S. and China appeared to be eased by an initial agreement on tariff and trade reforms. The so-called “Phase One” deal, coupled with progress on resolving issues surrounding the U.K.’s withdrawal from the EU and a new United States-Mexico-Canada Agreement signed in January, 2020, brought calm to markets and seemed to set the stage for a strong 2020.

Instead, the novel coronavirus (COVID-19) pandemic erupted in late January and helped trigger a global recession. As world leaders grappled with the “new normal” of social distancing measures, business closures, and other mitigation efforts, many investors headed for the exits in March, 2020, bringing the longest bull market in U.S. economic history to an abrupt end. By mid-April, the U.S. unemployment rate had surged to 14.7%.

Late April 2020 brought a surprising recovery in U.S. markets, largely in response to an unprecedented economic rescue effort from central banks, including the U.S. Federal Reserve (Fed), which reduced interest rates to near zero and pledged trillions in U.S. securities purchases.

On the fiscal side, the U.S. government unveiled a series of aggressive policy initiatives, including passage of the $2 trillion CARES Act in late March, 2020. The combined fiscal and monetary support provided a lifeline to many businesses large and small, helping to reduce the nation’s unemployment rate in September, 2020, to 7.9% – still alarmingly high compared with the record-low 3.5% in February.

By the period’s end, the U.S. had reached another grim milestone of more than 230,000 coronavirus deaths. As fall cases surged, a new round of lockdowns and restrictions on economic activity, particularly in Europe, were widely adopted; however, Congress deadlocked over providing further economic stimulus. A late-period market selloff triggered by worsening virus numbers reminded investors of the potential for further economic uncertainty ahead. In addition, a contentious U.S. presidential campaign divided the nation.

As we continue to endure spikes in COVID-19 cases while awaiting the regulatory approvals and distribution of a safe and effective vaccine, uncertainty remains. In these unprecedented times, it’s more important than ever to maintain a strong relationship with your financial professional.

Thank you again for investing in Hartford Mutual Funds. For the most up-to-date information on our funds, please take advantage of all the resources available at hartfordfunds.com.

 

LOGO

James Davey

President

Hartford Funds

 

1 

S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.

 

The index is unmanaged and not available for direct investment. Past performance does not guarantee future results.


Hartford Domestic Equity Funds

Table of Contents

 

Fund Overview (Unaudited)

     2  

Benchmark Glossary (Unaudited)

     39  

Expense Examples (Unaudited)

     40  

Financial Statements:

  

Schedules of Investments:

  

The Hartford Capital Appreciation Fund

     43  

Hartford Core Equity Fund

     48  

The Hartford Dividend and Growth Fund

     51  

The Hartford Equity Income Fund

     53  

The Hartford Growth Opportunities Fund

     55  

The Hartford Healthcare Fund

     58  

The Hartford MidCap Fund

     60  

The Hartford MidCap Value Fund

     63  

Hartford Quality Value Fund

     65  

The Hartford Small Cap Growth Fund

     67  

Hartford Small Cap Value Fund

     70  

The Hartford Small Company Fund

     72  

Glossary

     75  

Statements of Assets and Liabilities

     76  

Statements of Operations

     82  

Statements of Changes in Net Assets

     85  

Financial Highlights

     91  

Notes to Financial Statements

     104  

Report of Independent Registered Public Accounting Firm

     131  

Operation of the Liquidity Risk Management Program (Unaudited)

    
132
 

Directors and Officers (Unaudited)

     133  

How to Obtain a Copy of each Fund’s Proxy Voting Policies and Voting Records (Unaudited)

     136  

Quarterly Portfolio Holdings Information (Unaudited)

     136  

Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited)

     137  

Supplemental Proxy Information (Unaudited)

     144  

The views expressed in each Fund’s Manager Discussion contained in the Fund Overview section are views of that Fund’s portfolio manager(s) through the end of the period and are subject to change based on market and other conditions, and we disclaim any responsibility to update the views contained herein. These views may contain statements that are “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable. Holdings and characteristics are subject to change. Fund performance reflected in each Fund’s Manager Discussion reflects the returns of such Fund’s Class A shares, before sales charges. Returns for such Fund’s other classes differ only to the extent that the classes do not have the same expenses.


The Hartford Capital Appreciation Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 07/22/1996

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks growth of capital.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     8.62%        9.63%        10.43%  

Class A2

     2.65%        8.40%        9.81%  

Class C1

     7.78%        8.83%        9.63%  

Class C3

     6.78%        8.83%        9.63%  

Class I1

     8.94%        9.95%        10.76%  

Class R31

     8.25%        9.27%        10.09%  

Class R41

     8.59%        9.61%        10.43%  

Class R51

     8.93%        9.94%        10.76%  

Class R61

     9.03%        10.05%        10.86%  

Class Y1

     8.97%        10.02%        10.86%  

Class F1

     9.00%        10.02%        10.79%  

Russell 3000 Index

     10.15%        11.48%        12.80%  

S&P 500 Index

     9.71%        11.71%        13.01%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/2014. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.08%        1.08%  

Class C

     1.84%        1.84%  

Class I

     0.80%        0.80%  

Class R3

     1.43%        1.43%  

Class R4

     1.12%        1.12%  

Class R5

     0.81%        0.81%  

Class R6

     0.71%        0.71%  

Class Y

     0.82%        0.77%  

Class F

     0.71%        0.71%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  2  

 


The Hartford Capital Appreciation Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Gregg R. Thomas, CFA

Senior Managing Director and Director, Investment Strategy

Wellington Management Company LLP

Thomas S. Simon, CFA, FRM

Senior Managing Director and Portfolio Manager

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford Capital Appreciation Fund returned 8.62%, before sales charges, for the twelve-month period ended October 31, 2020, underperforming the Fund’s benchmarks, the Russell 3000 Index, which returned 10.15% for the same period, and the S&P 500 Index, which returned 9.71% for the same period. For the same period, the Class A shares of the Fund, before sales charges, outperformed the 5.35% average return of the Lipper Multi-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many parts of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both mid- and small-cap equities, as measured by the S&P MidCap 400 Index and Russell 2000 Index, respectively.

Six of the eleven sectors in the Russell 3000 Index posted positive returns during the period. Strong performers included the Information Technology (+34.8%), Consumer Discretionary (+30.8%), and Communication Services (+16.2%) sectors. The Energy (-46.1%), Real Estate (-15.8%), and Financials (-15.2%) sectors fell the most during the period.

During the period, the Fund underperformed the Russell 3000 Index primarily due to weak stock selection within the Consumer Discretionary, Consumer Staples, and Financials sectors. Conversely, stronger selection within the Communication Services, Healthcare, and Information Technology sectors contributed positively to relative returns during the period. Sector allocation, a result of bottom-up stock selection, was positive during the period primarily due to the Fund’s underweight exposure to the Energy and Financials sectors in addition to an overweight to the Consumer Discretionary sector. An underweight to the Information Technology sector, as well as an overweight to the Industrials sector, relative to the Russell 3000 Index, detracted from performance.

Underweight exposures relative to the Russell 3000 Index to Apple (Information Technology), Microsoft (Information Technology), and Tesla (Consumer Discretionary) were the top detractors from Fund performance during the period. Apple designs, manufactures, and sells personal computers, tablets, wearables, and a variety of related services. Shares of Apple moved higher during the period. The company also announced that it would be participating in a 4-for-1 stock split during the period. As of the end of the period, we continued to hold the stock within the Fund but remained underweight relative to the Russell 3000 Index. Microsoft engages in the development and support of software, services, devices, and solutions. The company emerged from the coronavirus pandemic as a strong performer with stay-at-home and remote-work related businesses (Teams, Gaming, virtual desktop) gaining traction and performing well. The company’s stock continued to move higher during the period before giving back some gains after it was announced that the company’s bid for video-sharing site TikTok was not accepted. As of the end of the period, we remained underweight the stock within the Fund relative to the Russell 3000 Index. Tesla engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. Shares of the company moved higher during the period as the company reported its fourth consecutive quarter of profitability, which many viewed as the last hurdle towards Tesla’s inclusion into the S&P 500 Index given its market cap. The stock did not make it into the S&P 500 Index, and shares dipped on the news. Towards the end of the period, the company held its Battery Day where it provided guidance in line with expectations, highlighted by expectations for a drop in battery costs, as well as plans for a $25,000 car within the next three years. We initiated a small position in the stock during the period, which we subsequently sold later in the period as we sought to capitalize on strength while pursuing other opportunities that we believe provide better risk and return profiles.

Aramark (Consumer Discretionary), Expedia (Consumer Discretionary), and Diamondback Energy (Energy) were among the largest detractors from performance on an absolute basis over the period.

 

 

 

  3  

 


The Hartford Capital Appreciation Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Top contributors to performance relative to the Russell 3000 Index included not holding benchmark constituent ExxonMobil (Energy) as well as the Fund’s positions in DraftKings (Consumer Discretionary) and Peloton Interactive (Consumer Discretionary). ExxonMobil engages in the exploration, development, and distribution of oil, gas, and petroleum products. Energy-related companies were adversely affected by failed negotiations between Saudi Arabia and Russia regarding production cuts amid a strong decrease in demand as coronavirus-related shelter-in-place orders limited travel globally. The Energy sector broadly was the worst-performing sector within the Russell 3000 Index during the period. Not owning the stock contributed positively to relative performance and as of the end of the period, we continued to not hold it. DraftKings is a digital sports entertainment and gaming company. The company took an unconventional route to the public markets by combining with a special purpose acquisition company (SPAC), typically referred to as a blank-check company, thus enabling the company to trade publicly without going through the initial public offering (IPO) process in April. Following its listing, the stock price has risen as sports betting revenue continued to rise following the resumption of live games across major sports leagues. Shares of the company gave up some gains late in the period after the company announced a secondary offering of shares. As of the end of the period, we continued to hold shares of DraftKings within the Fund. Peloton Interactive is an at-home fitness platform for live and on-demand indoor cycling. The company reported strong quarterly results at the beginning of 2020 with subscribers and revenues reported above expectations, but earnings guidance was revised slightly lower. As the coronavirus pandemic forced lockdown measures that included gyms and fitness studios, the company saw a large uptick in demand for its at-home offerings with subscriber growth and member engagement both trending upward. This led to consecutive quarters of outperformance relative to analyst expectations, driving the stock price higher during the period. As of the end of the period, the Fund remained overweight in the stock.

Amazon.com (Consumer Discretionary), Apple (Information Technology), and NVIDIA (Information Technology) contributed positively to performance on an absolute basis over the period.

The Fund’s investment process includes the use of factor-based strategies, which involve targeting certain company characteristics, or factors, that we believe impact returns across asset classes. Factor impact on the Fund was positive. The Fund’s slight underweight exposure to dividend paying equities and overweight exposure to names with higher liquidity contributed positively to performance, while the Fund’s slight underweight exposure to high momentum equities detracted from performance.

During the period, the Fund, at times, used equity index futures to equitize cash or efficiently manage risks. During the period, the use of equity index futures contributed slightly to performance.

What is the outlook as of the end of the period?

Macroeconomic uncertainty remains at the forefront as U.S. equity markets continue their rebound amid optimism from accommodative policy and strong earnings from index leaders, while a second wave of coronavirus infections unfolds in some states. Persistent market uncertainties – such as the outcome of the U.S. presidential election and the unknown efficacy and timeline for a coronavirus vaccine – cause us to believe that the range of potential economic outcomes is wide and

that current investor exuberance may not be long-lasting. Against this backdrop, we remain vigilant in balancing factor exposures in the Fund to seek to reduce the impact of factor volatility and help ensure that security selection drives results.

Looking across the factor landscape, we continue to monitor the risks facing equity factors amid ongoing market volatility. In 2020, trend-following factors (e.g., growth and momentum) have extended their outperformance over most other areas of the market. However, we believe valuations are stretched, and the primary risk we are monitoring is a momentum reversal, which we believe would be damaging to equities that are levered to the ongoing market rebound. For example, we have seen the outperformance of megacap technology companies dominate markets. While this streak seems set to continue, a momentum reversal could be a technical risk for these names, while any shift in the regulatory landscape could present a more fundamental risk. As of the end of the period, we maintained the Fund’s exposure to companies characterized by mean-reversion factors (e.g., value and contrarian), as we expect them to provide capital appreciation during economic recovery and in the event of a cyclical rally. That said, we are monitoring the risks these factors are exposed to, in particular the risk of insolvency in the event of a drawn-out economic slowdown. In our view, stocks that screen well for risk-aversion factors (e.g., low volatility and quality) tend to have protective characteristics such as stable profit margins and sustainable cash flows. Therefore, we see these exposures as a potential source of safety in the event of a traditional move to assets perceived to be less risky, but we are aware that they may lag the market during a strong rally. Finally, we believe that the market has not fully priced in the heightened risk that some companies become insolvent due to a prolonged economic slowdown while other companies that are able to pivot and adapt are likely to come out on top. We expect this to lead to a dispersion in equity results.

At the end of the period, the Fund’s largest overweights were to the Consumer Discretionary and Consumer Staples sectors, while the Fund’s largest underweights were to the Information Technology and Communication Services sectors, relative to the Russell 3000 Index.

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 among portfolio management teams may not work as intended. Mid-cap securities can have greater risks and volatility than large-cap securities. 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 and economic developments. These risks are generally greater for investments in emerging markets. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

 

 

 

  4  

 


The Hartford Capital Appreciation Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     6.8

Consumer Discretionary

     17.9  

Consumer Staples

     10.9  

Energy

     0.2  

Financials

     7.9  

Health Care

     16.2  

Industrials

     12.2  

Information Technology

     19.0  

Materials

     3.1  

Real Estate

     3.8  

Utilities

     0.4  
  

 

 

 

Total

     98.4
  

 

 

 

Short-Term Investments

     1.4  

Other Assets & Liabilities

     0.2  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

    

 

 

 

  5  

 


Hartford Core Equity Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 04/30/1998

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks growth of capital.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     10.58%        11.57%        13.67%  

Class A2

     4.50%        10.31%        13.03%  

Class C1

     9.74%        10.74%        12.84%  

Class C3

     8.74%        10.74%        12.84%  

Class I1

     10.87%        11.86%        13.84%  

Class R31

     10.17%        11.19%        13.36%  

Class R41

     10.58%        11.56%        13.73%  

Class R51

     10.85%        11.87%        14.05%  

Class R61

     10.96%        11.96%        14.12%  

Class Y1

     10.89%        11.92%        14.10%  

Class F1

     10.97%        11.94%        13.88%  

S&P 500 Index

     9.71%        11.71%        13.01%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class I shares commenced operations on 03/31/2015. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges). Class R6 shares commenced operations on 03/31/2015 and performance prior to that date is that of the Fund’s Class Y

shares. Class F shares commenced operations on 02/28/2017. Performance for Class F shares prior to 02/28/2017 reflects the performance of Class I shares from 03/31/2015 through 02/27/2017 and Class A shares (excluding sales charges) prior to 03/31/2015.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     0.74%        0.74%  

Class C

     1.48%        1.48%  

Class I

     0.47%        0.47%  

Class R3

     1.11%        1.11%  

Class R4

     0.78%        0.78%  

Class R5

     0.49%        0.49%  

Class R6

     0.39%        0.39%  

Class Y

     0.49%        0.46%  

Class F

     0.39%        0.39%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  6  

 


Hartford Core Equity Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Mammen Chally, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Douglas W. McLane, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

David A. Siegle, CFA

Managing Director and Equity Research Analyst

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Core Equity Fund returned 10.58%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the S&P 500 Index, which returned 9.71% for the same period. For the same period, the Class A shares of the Fund, before sales charges, also outperformed the 8.39% average return of the Lipper Large-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. The U.S. had approximately 188,000 confirmed cases of the coronavirus at the end of March 2020, surpassing all other countries. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed small-cap and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively.

Seven out of eleven sectors in the S&P 500 Index rose during the period, with the Information Technology (+34%) and Consumer Discretionary

(+25%) sectors performing the best. The Energy (-46%) and Financials (-15%) sectors were the worst performers during the period.

Overall, the Fund’s outperformance versus the S&P 500 Index during the period was driven by strong security selection, primarily within the Consumer Staples, Healthcare, and Industrials sectors. This was partially offset by weaker stock selection within the Information Technology, Consumer Discretionary, and Financials sectors, which detracted from performance. Sector allocation, a result of the bottom-up stock selection process, also contributed positively to relative performance, primarily driven by the Fund’s underweight to the Energy sector and overweight allocation to the Healthcare sector. This was partially offset by the Fund’s underweight to Information Technology, which detracted from performance.

The top contributors to relative performance over the period were not owning benchmark constituents ExxonMobil (Energy) and Wells Fargo (Financials), as well as an overweight position in FedEx (Industrials). Shares of ExxonMobil fell over the period following weak results and low oil prices as a result of the coronavirus. Exxon missed second-quarter 2020 earnings expectations after reporting a loss north of $1 billion, revenue of $32.6 billion that was $6 billion less than consensus, and a 10% quarter-over-quarter cut in production as the coronavirus pandemic pressured demand for the company’s products. Not owning the stock was a contributor to relative performance over the period due to its poor performance. Shares of Wells Fargo declined over the period after reporting consecutive disappointing quarterly results. In July 2020, the company announced it set aside a record $9.5 billion for credit losses. Executives warned they would earmark more for soured loans as the coronavirus pandemic continued to rage throughout the U.S. and weigh on companies and workers. Falling yields have also negatively affected the bank. Not owning the stock was also a contributor to relative performance over the period due to poor performance. Shares of delivery services company, FedEx, rose over the period after the company announced two consecutive fiscal quarters of strong earnings as online shopping soared among customers avoiding stores. The company also announced that shipping rates would increase for FedEx Express, FedEx Ground, and FedEx Freights in January 2021. During the period, we initiated a position in the company for the Fund. Top absolute contributors included Apple (Information Technology) and Amazon.com (Consumer Discretionary).

The top detractors from the Fund’s relative performance over the period included not owning benchmark constituent, Nvidia (Information

 

 

 

  7  

 


Hartford Core Equity Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Technology), an overweight position in Boston Properties (Real Estate), and an underweight position in Apple (Information Technology). U.S. chip maker Nvidia reported consecutive better-than-expected quarterly fiscal earnings. Overall revenue rose 50% on an annualized basis in the second quarter of 2020. Nvidia also announced its plan to purchase Arm from Softbank for $40 billion. Not owning the stock during the period was a detractor from the Fund’s performance due to the stock’s strong performance. Shares of Apple rose during the period after it reported consecutive strong quarterly results. Demand across all the company’s products has exceeded expectations during the period. The company benefited from a strong launch of the iPhone SE and economic stimulus measures. Apple executed a 4-for-1 stock split at the end of August. As of the end of the period, the Fund remains underweight given Apple’s size in the benchmark. Shares of Boston Properties declined over the period. Due to the stay-at-home policies during the period, physical occupancy within the company’s properties has been low. The Fund’s absolute detractors for the period included Boston Properties (Real Estate) and Raytheon (Industrials).

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

In the next few months, we will know a lot more about whether we will have a vaccine and treatment options to reduce the hospitalization and mortality rate for COVID-19. While we can see additional flare-ups, our base case assumption is that we can return to a new normal towards the end of 2021.

Outside of the U.S., there are still parts of the world where the incidence of cases has not stabilized, and in some areas, it does appear that the peak for the pandemic may still be many weeks or even months away. Unfortunately, a lot of uncertainty remains. We are spending more time understanding the possible permanent or semi-permanent changes to behavior, both from a consumer and corporate perspective, and what that might mean for some of the Fund’s holdings. However, it seems too early to come to firm conclusions.

We continue to stay focused on the long term as eventually we will put this health crisis behind us. While we did make some changes within the Fund, we continue to be incremental and mindful of the impact of volatility.

At the end of the period, the Fund’s largest overweight sectors relative to the S&P 500 Index were to the Consumer Staples and Industrials sectors, while the Fund’s largest underweights were to the Consumer Discretionary and Energy sectors, relative to the S&P 500 Index.

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.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     10.3

Consumer Discretionary

     10.1  

Consumer Staples

     9.8  

Energy

     0.7  

Financials

     9.6  

Health Care

     14.3  

Industrials

     8.8  

Information Technology

     26.4  

Materials

     2.0  

Real Estate

     1.8  

Utilities

     3.2  
  

 

 

 

Total

     97.0
  

 

 

 

Short-Term Investments

     1.8  

Other Assets & Liabilities

     1.2  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  8  

 


The Hartford Dividend and Growth Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 07/22/1996

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks a high level of current income consistent with growth of capital.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     -2.20%        8.15%        10.20%  

Class A2

     -7.58%        6.94%        9.58%  

Class C1

     -3.01%        7.33%        9.38%  

Class C3

     -3.95%        7.33%        9.38%  

Class I1

     -1.97%        8.42%        10.47%  

Class R31

     -2.54%        7.78%        9.85%  

Class R41

     -2.26%        8.11%        10.19%  

Class R51

     -1.97%        8.44%        10.52%  

Class R61

     -1.87%        8.53%        10.62%  

Class Y1

     -1.91%        8.51%        10.61%  

Class F1

     -1.89%        8.49%        10.51%  

S&P 500 Index

     9.71%        11.71%        13.01%  

Russell 1000 Value Index

     -7.57%        5.82%        9.48%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/2014. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.01%        1.01%  

Class C

     1.78%        1.78%  

Class I

     0.75%        0.75%  

Class R3

     1.37%        1.37%  

Class R4

     1.05%        1.05%  

Class R5

     0.75%        0.75%  

Class R6

     0.66%        0.66%  

Class Y

     0.75%        0.69%  

Class F

     0.65%        0.65%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  9  

 


The Hartford Dividend and Growth Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Matthew G. Baker

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Nataliya Kofman

Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford Dividend and Growth Fund returned -2.20%, before sales charges, for the twelve-month period ended October 31, 2020, underperforming one of the Fund’s benchmarks, the S&P 500 Index, which returned 9.71% for the same period, and outperforming the Fund’s other benchmark, the Russell 1000 Value Index, which returned -7.57% for the same period. For the same period, the Class A shares of the Fund, before sales charges, outperformed the -5.44% average return of the Lipper Equity Income Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. The U.S. had approximately 188,000 confirmed cases of the coronavirus at the end of March 2020, surpassing all other countries. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap during the period, as large-cap equities, measured by the S&P 500 Index, outperformed mid- and small-cap equities, as measured by the S&P MidCap 400 Index and Russell 2000 Index, respectively.

Seven out of eleven sectors in the S&P 500 Index rose during the period, with the Information Technology (+34%), Consumer Discretionary (+25%), and Communication Services (+16%) sectors performing the best. The Energy (-46%), Financials (-15%), and Real Estate (-10%) sectors were the worst performers during the period.

Security selection detracted from the Fund’s returns relative to the S&P 500 Index over the period. Stock selection effects were weakest within the Information Technology, Consumer Discretionary, and Communication Services sectors. This was partially offset by stronger selection within the Energy sector, which contributed positively to performance relative to the S&P 500 Index. Sector allocation, a result of the bottom-up stock selection process, detracted from the Fund’s performance relative to the S&P 500 Index over the period. An overweight to the Energy and Financials sectors, as well as an underweight to the Information Technology sector, detracted the most from returns relative to the S&P 500 Index.

The Fund’s top detractors from the Fund’s performance relative to the S&P 500 Index as well as absolute performance included not owning Amazon (Consumer Discretionary), an underweight to Apple (Information Technology), and an overweight to Bank of America (Financials). Not holding S&P 500 Index constituent Amazon (Consumer Discretionary), was a top relative detractor from performance during the period as shares of the company rose during the period. An underweight to Apple (Information Technology) was the other significant relative detractor from performance during the period as shares of Apple rose during the period. During the period, we maintained the Fund’s underweight in the company. Shares of Bank of America fell as coronavirus worries sent Treasury yields lower. Thirty-year U.S. Treasury notes fell to record low yields, and 10-year U.S. Treasury notes fell to levels not seen since 2016, narrowing the spread on the bank’s longer-term assets funded with shorter-term liabilities.

The Fund’s top contributors to performance relative to the S&P 500 Index during the period were ExxonMobil (Energy) and Eli Lilly (Healthcare), both of which were eliminated during the period, and not owning Wells Fargo (Financials). ExxonMobil (Energy) was a top contributor to relative performance during the period, as we exited the position prior to the energy market collapse in March 2020. Eli Lilly (Healthcare) was the other top contributor to relative performance over the period. Shares of Eli Lilly rose after the company reported strong results and news that it was entering into an agreement to develop an experimental therapy to combat coronavirus. We reduced the Fund’s position on the stock’s strong performance late spring and eliminated the position in early June. We benefited from not owning the shares in the Fund later in the period as the company has lagged the strong market rally. Shares of Wells Fargo fell over the period after the chief financial officer predicted higher loan-loss provisions in addition to a sharp drop in interest income for the year.

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

 

 

 

  10  

 


The Hartford Dividend and Growth Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

What is the outlook as of the end of the period?

Although the market continued to climb higher in the third quarter of 2020, we are wrestling with many unknowns in the short term. While large amounts of liquidity have been pumped into the market to try and safeguard consumer spending, we are still facing high rates of unemployment and each day are reminded of the increasing number of coronavirus cases. During these turbulent times, we believe it is best to try to avoid balance sheet risk while seeking to identify mispriced opportunities that can potentially create enormous value on the other side of the pandemic.

In the face of great uncertainty, we remain focused on seeking to invest in companies at reasonable valuations, with attractive long-term free cash flow generation, solid balance sheets, and resilient fundamentals.

At the end of the period, the Fund had its largest overweights in the Financials and Healthcare sectors, and the largest underweights in the Information Technology and Consumer Discretionary sectors, relative to the S&P 500 Index.

We continue to apply our valuation discipline within the Fund to seek to maintain a portfolio of resilient businesses that are reasonably valued and have favorable industry and competitive dynamics.

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. For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. 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 and economic developments.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     9.2

Consumer Discretionary

     6.7  

Consumer Staples

     6.0  

Energy

     3.7  

Financials

     17.2  

Health Care

     15.5  

Industrials

     9.4  

Information Technology

     18.7  

Materials

     4.0  

Real Estate

     2.5  

Utilities

     4.0  
  

 

 

 

Total

     96.9
  

 

 

 

Short-Term Investments

     1.9  

Other Assets & Liabilities

     1.2  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  11  

 


The Hartford Equity Income Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 08/28/2003

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks a high level of current income consistent with growth of capital.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     -4.68%        6.89%        9.94%  

Class A2

     -9.92%        5.69%        9.32%  

Class C1

     -5.38%        6.11%        9.14%  

Class C3

     -6.26%        6.11%        9.14%  

Class I1

     -4.44%        7.16%        10.24%  

Class R31

     -4.97%        6.52%        9.57%  

Class R41

     -4.72%        6.84%        9.90%  

Class R51

     -4.46%        7.15%        10.23%  

Class R61

     -4.34%        7.27%        10.35%  

Class Y1

     -4.40%        7.23%        10.33%  

Class F1

     -4.31%        7.24%        10.28%  

Russell 1000 Value Index

     -7.57%        5.82%        9.48%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/2014. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.00%        1.00%  

Class C

     1.76%        1.76%  

Class I

     0.76%        0.76%  

Class R3

     1.36%        1.36%  

Class R4

     1.07%        1.07%  

Class R5

     0.76%        0.76%  

Class R6

     0.66%        0.66%  

Class Y

     0.77%        0.72%  

Class F

     0.66%        0.66%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  12  

 


The Hartford Equity Income Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

W. Michael Reckmeyer, III, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Adam H. Illfelder, CFA

Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Matthew C. Hand, CFA

Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford Equity Income Fund returned -4.68%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the Russell 1000 Value Index, which returned -7.57% for the same period. For the same period, the Class A shares of the Fund, before sales charges, also outperformed the -5.44% average return of the Lipper Equity Income Funds peer group, a group of funds with investment strategies similar to that of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. The U.S. had approximately 188,000 confirmed cases of the coronavirus at the end of March 2020, surpassing all other countries. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

During the period, four out of eleven sectors within the Russell 1000 Value Index posted positive absolute returns, with the Healthcare (+11%), Materials (+9%), and Consumer Staples (+4%) sectors performing the best. Conversely, the Energy (-46%), Real Estate (-22%), and Financials (-18%) sectors lagged over the period.

The Fund’s outperformance relative to the Russell 1000 Value Index was driven by security selection, primarily within the Financials, Real Estate,

and Industrials sectors. This more than offset less favorable selection within the Healthcare, Utilities, and Consumer Staples sectors. Sector allocation, a result of our bottom-up stock selection process, also contributed positively to relative performance due to the Fund’s overweight to the Healthcare sector and underweights to the Real Estate and Financials sectors. This was partially offset by the Fund’s underweight position in the Materials sector.

Top contributors to relative returns included not owning benchmark constituent Wells Fargo (Financials) as well as the Fund’s positions in UnitedHealth Group (Healthcare) and Deere (Industrials). Shares of Well Fargo dropped after the company reported a loss in the second quarter of 2020 driven by large loan loss provisions which more than doubled first-quarter 2020 levels. After falling in the first quarter of 2020 amid the broader market selloff, shares of UnitedHealth Group rebounded on strong second-quarter earnings, with earnings per share (EPS) up 100% year-over-year, beating the consensus expectations by a significant amount. Performance was driven by lower utilization and a significant decline in the medical loss ratio. Shares of Deere rose over the period after the company announced strong third-quarter 2020 results, which exceeded expectations. The agricultural machinery giant increased its sales outlook for the year as demand remained resilient despite the uncertainty related to coronavirus. The company also announced the completion of the acquisition of Unimil, a leading Brazilian company in the aftermarket service parts business.

Top detractors from relative results included Suncor Energy (Energy) and Phillips 66 (Energy), along with not owning benchmark constituent Danaher (Healthcare). Suncor Energy is a Canadian company primarily focused on developing petroleum resource basins. The company’s stock price slid as the company cut its dividend and lowered guidance for full-year production as a result of mandatory curtailments. At the start of September 2020, Suncor lowered guidance again after a fire broke out at their Fort McMurray facility, resulting in the acceleration of proposed maintenance. Shares of Phillips 66 traded lower as earnings fell in the second quarter of 2020, primarily due to a decline in results in the refining segment as margins and volume shrank. The stock continued to trend downward through the rest of the period. Shares of Danaher, a provider of medical equipment, climbed early in 2020 on the announcement of a deal to acquire General Electric’s biopharma unit, putting Danaher at the forefront of biotech equipment makers. Strong earnings and the announced split-off of dental business Envista further benefited the stock.

 

 

 

  13  

 


The Hartford Equity Income Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

It is our belief that high-quality businesses with sustainable dividend policies are in an advantageous position to strengthen as they emerge from a downturn – taking market share, or, in some cases, making opportunistic acquisitions at attractive valuations. This is embodied in a quote we often reference: “The strong get stronger in crisis situations.”

To this end, amid the heightened market volatility, we have been exercising patience and, where possible, seeking to swap into higher quality companies at similar valuations. While we believe that the near-term threat of dividend cuts and suspensions has abated relative to earlier in the year, we remain vigilant, seeking to avoid potential dividend cutters and the companies that would be most directly impacted in a prolonged shutdown. In some instances, we have closely monitored the possibility of companies suspending a dividend temporarily as a measure to improve solvency. While this seems prudent in many cases, we prefer to avoid this contingency where possible, and favor companies with strong balance sheets that we believe can endure through the cycle.

At the end of the period, the Healthcare, Consumer Staples, and Industrials sectors represented the Fund’s largest overweights relative to the Russell 1000 Value Index, while the Communication Services, Consumer Discretionary, and Materials sectors were the Fund’s largest underweights.

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. For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. 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 and economic developments. Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     5.4

Consumer Discretionary

     5.0  

Consumer Staples

     10.7  

Energy

     3.3  

Financials

     18.2  

Health Care

     17.0  

Industrials

     15.0  

Information Technology

     10.7  

Materials

     2.8  

Real Estate

     2.7  

Utilities

     7.6  
  

 

 

 

Total

     98.4
  

 

 

 

Short-Term Investments

     0.7  

Other Assets & Liabilities

     0.9  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  14  

 


The Hartford Growth Opportunities Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 03/31/1963

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks capital appreciation.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     47.77%        18.53%        17.09%  

Class A2

     39.64%        17.20%        16.43%  

Class C1

     46.72%        17.65%        16.24%  

Class C3

     45.72%        17.65%        16.24%  

Class I1

     48.19%        18.83%        17.38%  

Class R31

     47.28%        18.13%        16.73%  

Class R41

     47.74%        18.49%        17.08%  

Class R51

     48.15%        18.84%        17.43%  

Class R61

     48.26%        18.97%        17.54%  

Class Y1

     48.18%        18.93%        17.53%  

Class F1

     48.32%        18.92%        17.43%  

Russell 3000 Growth Index

     28.20%        16.84%        16.00%  

Russell 1000 Growth Index

     29.22%        17.32%        16.31%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/2014. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.13%        1.13%  

Class C

     1.88%        1.88%  

Class I

     0.86%        0.86%  

Class R3

     1.48%        1.48%  

Class R4

     1.17%        1.17%  

Class R5

     0.87%        0.87%  

Class R6

     0.76%        0.76%  

Class Y

     0.86%        0.80%  

Class F

     0.76%        0.76%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  15  

 


The Hartford Growth Opportunities Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Stephen Mortimer

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Mario E. Abularach, CFA, CMT

Senior Managing Director and Equity Research Analyst

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford Growth Opportunities Fund returned 47.77%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmarks, the Russell 3000 Growth Index, which returned 28.20% for the same period and the Russell 1000 Growth Index, which returned 29.22% for the same period. For the same period, the Class A shares of the Fund, before sales charges, outperformed the 27.08% average return of the Lipper Multi-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Mid-cap growth equities outperformed the broader market during this period. In the first quarter of 2020, U.S. equities fell sharply as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic drove the market’s rebound in the second quarter of 2020. Momentum carried into the third quarter of 2020, bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery and promising trials for coronavirus vaccines. However, the path to sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections around the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Eight out of eleven sectors in the Russell 3000 Growth Index rose during the period, with the Consumer Discretionary (+43%), Information Technology (+42%), and Communication Services (+32%) sectors performing the best. Conversely, the Energy (-32%) and Utilities (-10%) sectors lagged on a relative basis during the period.

Security selection contributed positively to the Fund’s performance relative to the Russell 3000 Growth Index during the period, with strong selection in the Information Technology, Healthcare and Industrials sectors, which was partially offset by weaker selection within the Financials and Consumer Discretionary sectors. Sector allocation, a

result of our bottom-up stock selection process, also contributed positively to performance relative to the Russell 3000 Growth Index during the period, due to an overweight to the Consumer Discretionary sector and lack of exposure to the Real Estate sector. This was partially offset by the negative impact of an underweight to the Information Technology sector, which detracted from performance.

Top contributors to performance relative to the Russell 3000 Growth Index during the period included Peloton (Consumer Discretionary), Square (Information Technology), and Advanced Micro Devices (Information Technology). Shares of Peloton, an exercise equipment and media company, rose over the period as the company has continued to see strong earnings reports throughout the coronavirus pandemic. Gym closures and continued fears of coronavirus have led to increased confidence in the theme of people being more open to working out at home as consumers look for alternatives to gyms. We increased the Fund’s position during the period. Shares of Square, a mobile payments provider, rose during the period. The company has seen strong earnings through the coronavirus pandemic. Its peer-to-peer Cash App helped drive Square’s performance, benefiting from its users depositing government stimulus checks. Unemployment checks and tax refunds have provided an additional boost for the app as well. Shares of Advanced Micro Devices, a semiconductor company, rose over the period after the Trump administration announced a phase one trade deal with China, removing a big obstacle for the company. The company also cited better-than-expected personal computer (PC) sales in the second half of the year, along with continued data-center growth and an increase in gaming console sales. The company has further benefited from Intel’s delay of its 7nm processors. Amazon (Consumer Discretionary) and Apple (information technology) were among the top absolute contributors during the period.

Top relative detractors from performance relative to the Russell 3000 Growth Index during the period included Pinterest (Communication Services), Microsoft (Information Technology), and Galapagos (Healthcare). Pinterest saw strong user growth in late 2019; however, the majority of new users came from international countries where users generate less revenue than those in the U.S. We eliminated the position within the Fund during the period. The Fund’s lack of exposure to Microsoft detracted from performance. Shares of Microsoft rose over the period on continued strong earnings reports and strengthened core offerings, such as the Azure cloud-computing business and Teams collaboration software which benefited from the work-from-home orders. Shares of Galapagos declined after the U.S. Food and Drug Administration (FDA) issued a complete response letter for filgotinib, a treatment for moderate to severe rheumatoid arthritis being developed in partnership with Gilead Sciences. A complete response letter is issued when the FDA has completed its review of a drug and has decided that it

 

 

 

  16  

 


The Hartford Growth Opportunities Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

will not approve it for marketing in its current form. American Express (Financials) and Marriott Vacations (Consumer Discretionary) were among the top absolute detractors during the period.

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

Following a nearly 30% rebound in the Russell 3000 Growth Index in the second quarter of 2020 driven by cyclical sectors, U.S. equities continued on a positive trajectory in the third quarter of 2020. Investors largely remained risk tolerant despite coronavirus continuing to affect large portions of the U.S., slowing the economic recovery and perpetuating market uncertainty. Cyclical sectors such as Consumer Discretionary and Information Technology led in the third quarter of 2020.

In terms of positioning, we continue to strive for more balance in the Fund by investing in different types of “growth” companies – an effort that we began in the second quarter of 2020 as we trimmed the Fund’s positions in companies that have performed well during the coronavirus pandemic and subsequent lockdown restrictions, and deployed some of that capital into more cyclical growth names. Given the uncertainty of the current environment, we believe a barbell approach between cyclical growth versus emerging and compounding growth names may help us control risk in a down market if we see another severe wave of the virus that will slow the recovery, which may also allow us to participate on the upside if the market continues to anticipate a full reopening. Part of our barbell strategy is to find some companies who have been hurt by the pandemic that we believe should emerge stronger coming out of this crisis, such as off-price retailers. Among those companies that have performed well during the pandemic, we see them falling into two camps: those growth equities which can build on their accelerated growth going forward, and those which will likely revert to the mean. Importantly, we are evaluating how possible permanent or semi-permanent changes in consumer behavior will impact companies. The paradigm shifts going on now, whether sustainable or not, are extraordinary and non-linear, in our view, and we believe we need to be more flexible than ever before when analyzing this new world.

At the end of the period, the Fund’s largest overweights relative to the Russell 3000 Growth Index were the Consumer Discretionary and Healthcare sectors. The Fund had the largest underweights to the Information Technology and Communication Services sectors.

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. Mid-cap securities can have greater risks and volatility than large-cap securities. Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur. 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 and economic developments.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     8.4

Consumer Discretionary

     27.8  

Consumer Staples

     2.9  

Financials

     1.2  

Health Care

     17.5  

Industrials

     5.6  

Information Technology

     33.8  

Real Estate

     0.1  
  

 

 

 

Total

     97.3
  

 

 

 

Short-Term Investments

     2.1  

Other Assets & Liabilities

     0.6  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  17  

 


The Hartford Healthcare Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 05/01/2000

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks long-term capital appreciation.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     22.17%        10.17%        16.03%  

Class A2

     15.45%        8.94%        15.37%  

Class C1

     21.21%        9.35%        15.18%  

Class C3

     20.21%        9.35%        15.18%  

Class I1

     22.49%        10.47%        16.36%  

Class R31

     21.74%        9.82%        15.70%  

Class R41

     22.12%        10.15%        16.05%  

Class R51

     22.48%        10.48%        16.40%  

Class R61

     22.61%        10.58%        16.50%  

Class Y1

     22.55%        10.57%        16.49%  

Class F1

     22.59%        10.55%        16.41%  

S&P Composite 1500 Health Care Index

     10.83%        9.84%        15.07%  

S&P 500 Index

     9.71%        11.71%        13.01%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares. Class R6 shares commenced operations on 02/28/2019. Performance prior to that date is that of the Fund’s Class Y shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.31%        1.31%  

Class C

     2.06%        2.06%  

Class I

     1.02%        1.02%  

Class R3

     1.63%        1.63%  

Class R4

     1.33%        1.33%  

Class R5

     1.03%        1.03%  

Class R6

     0.92%        0.92%  

Class Y

     1.03%        0.97%  

Class F

     0.92%        0.92%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  18  

 


The Hartford Healthcare Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Jean M. Hynes, CFA*

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

Ann C. Gallo

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

Robert L. Deresiewicz

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

Rebecca D. Sykes

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

* Effective June 30, 2021, Ms. Hynes will no longer serve as a portfolio manager to the Fund. Through June 30, 2021, Ms. Hynes will transition her portfolio management responsibilities to Ms. Sykes.

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford Healthcare Fund returned 22.17%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmarks, the S&P Composite 1500 Health Care Index, which returned 10.83% for the same period, and the S&P 500 Index, which returned 9.71% for the same period. For the same period, the Class A shares of the Fund, before sales charges, also outperformed the 21.51% average return of the Lipper Global Health and Biotechnology peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

Healthcare equities (+10.1%) outperformed both the broader United States (U.S.) equity market (+9.7%) and the global equity market (+5.4%) during the period, as measured by the S&P 500 Healthcare Index, S&P 500 Index, and MSCI ACWI Index, respectively.

Within the S&P Composite 1500 Health Care Index, four of the five sub-sectors posted positive absolute returns during the period. Mid-cap biopharma (+24.3%), medical technology (+17.6%), healthcare services (+12.0%) and large-cap biopharma (+4.0%) rose during the period. Small-cap biopharma (-17.1%) posted a negative absolute return during the period.

Security selection was the primary contributor to the Fund’s performance relative to the S&P Composite 1500 Health Care Index during the period, while sector allocation detracted from relative returns. Security selection was strongest in small-cap and mid-cap biopharma sub-sectors during the period. Within sector allocation, which is a byproduct of our bottom-up stock selection process, an overweight allocation to small-cap biopharma detracted most from relative performance during the period.

Forty Seven (small-cap biopharma), Momenta Pharmaceuticals (mid-cap biopharma), and MyoKardia (mid-cap biopharma) contributed positively to results relative to the S&P Composite 1500 Health Care Index over the period due to positive acquisition announcements. In March, Forty

Seven, a U.S.-based development-stage targeted oncology company, announced an agreement in which Gilead Sciences would acquire Forty Seven for $4.9 billion, a 60% premium to the stock’s closing price as of the end of February 2020. Shares of Momenta Pharmaceuticals, a U.S.-based biopharmaceutical company focused on developing drugs and biosimilars for cancer and autoimmune diseases, rose sharply in August 2020 after the company announced it had been acquired by Johnson & Johnson for approximately $6.5 billion in cash, which is approximately a 70% premium over the stock’s prior closing price. Shares of MyoKardia, a U.S.-based precision cardiovascular medicine company, soared in October 2020 on the announcement that Bristol Myers Squibb will acquire the pharmaceutical firm for $13.1 billion. We eliminated the above positions within the Fund during the period to take profits. Top absolute contributors to performance included Forty Seven, Thermo Fisher Scientific, and Momenta Pharmaceuticals.

Tricida (small-cap biopharma), Boston Scientific (medical technology), and Portola Pharmaceuticals (small-cap biopharma) were the top detractors from performance relative to the S&P Composite 1500 Health Care Index over the period. Shares of Tricida, a clinical-stage biopharma company that is focused on treatment of metabolic acidosis, declined during the period. Notable declines occurred most recently after the U.S. Food and Drug Administration (FDA) issued a Complete Response Letter (CRL) to the company regarding its new drug application for veverimer, a treatment for metabolic acidosis in patients with chronic kidney disease. Boston Scientific, a U.S.-based medical device company, was one of the first large healthcare companies to forecast a negative sales impact to Chinese operations from coronavirus. While coronavirus spread throughout Europe and the U.S., shares slid further as investors anticipated additional business disruption. Portola Pharmaceuticals is a U.S.-based biopharmaceutical company focused on the treatment of blood-related disorders and cancers. The stock was down after the company reported disappointing results for the fourth quarter of 2019 involving a recently launched drug, Andexxa, the only FDA and European Medicines Agency approved reversal agent for serious bleeds associated with the use of novel oral anti-coagulants. The company later announced an agreement to be acquired by Alexion for

 

 

 

  19  

 


The Hartford Healthcare Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

$18 per share in an all cash transaction, which closed during the third quarter of 2020. As a result, we sold the stock to redeploy capital into opportunities with greater upside potential in our view. Boston Scientific, Tricida, and Portola Pharmaceuticals were also the top absolute detractors from performance.

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

We expect the human and economic impact of coronavirus to remain challenging, but remain optimistic there will be a number of therapies to treat symptomatic patients and to offer prophylaxis against the virus, perhaps for certain high-risk parts of the population, as early as year end. We are encouraged by the initial clinical data for the Regeneron antibody cocktail, which reduced the viral load and shortened the time to symptomatic relief in the outpatient setting. As for vaccines, we are cautiously optimistic that one or more will be proven effective at reducing infection rates and will be approved, as well as deployed starting in late 2020 and into 2021.

The biopharmaceutical industry has come together to respond to this pandemic by spending research and development (R&D) dollars to develop treatments and vaccines for coronavirus, while seeking minimal profits. We expect the financial benefit of successful treatments to be modest and short-term for the companies developing them, yet we anticipate the goodwill will create a halo effect for the industry. The pandemic has resulted in budgetary shortfalls for governments and health systems around the world, and we expect the industry will be asked to contribute to these budget gaps. We are not expecting major shifts in how healthcare is delivered or reimbursed as a result of the pandemic but will be watching closely for unanticipated consequences in the future.

In selecting stocks for the Fund, we favor companies that develop innovative products designed to address important unmet medical needs. Over the long term, we believe the benefits of innovation, an aging population, and the globalization of demand for cutting-edge Western-style medicines are likely to continue to drive growth of the sector.

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. • Risks of focusing investments on the healthcare related sector include regulatory and legal developments, patent considerations, intense competitive pressures, rapid technological changes, potential product obsolescence, and liquidity risk.  Small- and mid-cap securities can have greater risks and volatility than large-cap securities.  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 and economic developments. These risks may be greater for investments in emerging markets.

Composition by Subsector(1)

as of 10/31/2020

 

Subsector    Percentage of
Net Assets
 

Equity Securities

 

Biotechnology

     22.0

Diversified Telecommunication Services

     0.1  

Health Care Equipment & Supplies

     24.5  

Health Care Providers & Services

     17.1  

Health Care Technology

  

Life Sciences Tools & Services

     12.2  

Pharmaceuticals

     23.5  
  

 

 

 

Total

     99.4
  

 

 

 

Short-Term Investments

     2.1  

Other Assets & Liabilities

     (1.5
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

For Fund compliance purposes, the Fund may not use the same classification system. These subsector classifications are used for financial reporting purposes.

 

 

 

  20  

 


The Hartford MidCap Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 12/31/1997

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks long-term growth of capital.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     6.48%        10.17%        12.13%  

Class A2

     0.62%        8.93%        11.50%  

Class C1

     5.63%        9.35%        11.31%  

Class C3

     4.66%        9.35%        11.31%  

Class I1

     6.74%        10.44%        12.41%  

Class R31

     6.09%        9.80%        11.78%  

Class R41

     6.42%        10.14%        12.12%  

Class R51

     6.77%        10.47%        12.46%  

Class R61

     6.85%        10.58%        12.57%  

Class Y1

     6.81%        10.55%        12.56%  

Class F1

     6.85%        10.52%        12.45%  

S&P MidCap 400 Index

     -1.15%        7.39%        10.36%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/2014. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance for Class F shares prior to 02/28/2017 reflects the performance of Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.11%        1.11%  

Class C

     1.87%        1.87%  

Class I

     0.85%        0.85%  

Class R3

     1.45%        1.45%  

Class R4

     1.16%        1.16%  

Class R5

     0.85%        0.85%  

Class R6

     0.75%        0.75%  

Class Y

     0.85%        0.79%  

Class F

     0.75%        0.75%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Classes I and Y and in instances when they reduce gross expenses. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  21  

 


The Hartford MidCap Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Philip W. Ruedi, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Mark A. Whitaker, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford MidCap Fund returned 6.48%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the S&P MidCap 400 Index, which returned -1.15% for the same period. For the same period, the Class A shares of the Fund, before sales charges, underperformed the 23.61% average return of the Lipper MidCap Growth Funds peer group, a group of funds with investment strategies similar to that of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Mid-cap growth equities outperformed the broader market during this period. In the first quarter of 2020, U.S. equities ended sharply lower as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest ever decline into a bear market. The unprecedented scale of fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic drove the market’s rebound in the second quarter of 2020. Momentum carried into the third quarter of 2020 bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery and promising trials for coronavirus vaccines. However, the path to sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections around the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively.

Within the S&P MidCap 400 Index, five of the eleven sectors posted positive returns during the period. The Healthcare (+26%), Consumer Staples (+14%), and Information Technology (+13%) sectors performed the best, while the Energy (-45%), Real Estate (-28%) and Utilities (-22%) sectors lagged.

The Fund outperformed the S&P MidCap 400 Index during the period primarily because of positive sector allocation, a result of our bottom up

stock selection process. This was primarily due to an overweight allocation to the Healthcare sector and an underweight to the Real Estate sector. This was partially offset by an overweight to the Communication Services sector and an underweight to the Consumer Discretionary sector, which detracted from performance. Security selection also contributed positively to the Fund’s outperformance relative to the S&P MidCap 400 Index during the period. Selection effects were particularly strong within the Industrials, Real Estate, and Consumer Discretionary sectors. This was partially offset by weak selection in the Healthcare, Information Technology, and Consumer Staples sectors, which detracted from performance during the period.

Top contributors to relative performance during the period included Wayfair (Consumer Discretionary), Redfin (Real Estate), and Etsy (Consumer Discretionary). Shares of Wayfair rose over the period. The company has reported strong demand across the home and goods categories as stay-at-home mandates have led to an increase in online shopping. We eliminated the Fund’s position during the period. Shares of Redfin, a real estate brokerage, rose over the period as the company has seen increased homebuying demand throughout the coronavirus pandemic as people pursue the suburbs and more affordable cities with the increase in remote work. Shares of Etsy rose over the period after the company positioned the platform as a leading supplier of homemade cloth masks. The handmade crafts e-commerce platform’s sharp spike in customer acquisitions has increased brand awareness and opportunities for customer retention during the coronavirus pandemic.

Top relative detractors from the Fund’s relative performance included WEX (Information Technology), Reata Pharmaceutical (Healthcare), and Teradata (Information Technology). Shares of WEX, a provider of fuel payment processing for fleet vehicles, fell during the period as coronavirus-related lockdowns drove declines in fuel transactions, payment processing, as well as travel and corporate solutions purchases. The company did not provide fiscal 2020 guidance due to uncertainties caused by the ongoing pandemic. Shares of Reata Pharmaceutical declined over the period after the company announced that its filing of a U.S. marketing application for omaveloxolone, a treatment for Friedreich’s ataxia, would be delayed indefinitely if the U.S. Food and Drug Administration requires a second pivotal study. Shares of Teradata, a database and analytics-related software provider, fell during the period after the company cut its full-year adjusted earnings outlook in late 2019. Furthermore, the company’s chief executive officer and chief revenue officer both left the company during the period.

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

 

 

 

  22  

 


The Hartford MidCap Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

What is the outlook as of the end of the period?

The high-growth and large-cap leadership that has dominated the market showed signs of weakness towards the end of the period. We continue to seek to build a diversified portfolio of blue-chip, market-leading mid-cap companies.

Given the performance dispersion across sectors in 2020, we anticipate continuing to explore opportunities in areas of the market that have largely underperformed, such as banks, as well as utilities and real estate companies. We also view the space of home health companies as attractive given the challenges nursing facilities face during the coronavirus crisis and a likely trend towards home health services. Moving forward, we continue to examine what the world may look like during a post-coronavirus economic recovery and the trends that may result.

At the end of the period, the Fund’s largest overweights were in the Information Technology and Healthcare sectors. The Fund had the largest underweights to the Consumer Discretionary, Real Estate and Financials sectors.

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. Mid-cap securities can have greater risks and volatility than large-cap securities. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     4.4

Consumer Discretionary

     10.1  

Consumer Staples

     1.9  

Energy

     0.5  

Financials

     10.5  

Health Care

     18.2  

Industrials

     16.5  

Information Technology

     28.1  

Materials

     2.6  

Real Estate

     4.8  

Utilities

     2.5  
  

 

 

 

Total

     100.1
  

 

 

 

Short-Term Investments

     0.7  

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  23  

 


The Hartford MidCap Value Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 04/30/2001

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks long-term capital appreciation.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     -12.86%        2.37%        7.26%  

Class A2

     -17.65%        1.22%        6.65%  

Class C1

     -13.55%        1.62%        6.48%  

Class C3

     -14.39%        1.62%        6.48%  

Class I1

     -12.58%        2.66%        7.59%  

Class R31

     -13.12%        2.07%        6.97%  

Class R41

     -12.88%        2.39%        7.31%  

Class R51

     -12.60%        2.69%        7.63%  

Class Y1

     -12.55%        2.77%        7.72%  

Class F1

     -12.51%        2.76%        7.65%  

Russell Midcap Value Index

     -6.94%        5.32%        9.40%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class F shares commenced operations on 02/28/2017. Performance for Class F shares prior to 02/28/2017 reflects the performance of Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.23%        1.23%  

Class C

     2.00%        2.00%  

Class I

     0.90%        0.90%  

Class R3

     1.52%        1.52%  

Class R4

     1.21%        1.21%  

Class R5

     0.92%        0.92%  

Class Y

     0.91%        0.87%  

Class F

     0.80%        0.80%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  24  

 


The Hartford MidCap Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Manager

Gregory J. Garabedian

Senior Managing Director and Equity Research Analyst

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford MidCap Value Fund returned -12.86%, before sales charges, for the twelve-month period ended October 31, 2020, underperforming the Fund’s benchmark, the Russell Midcap Value Index, which returned -6.94% for the same period. For the same period, the Class A shares of the Fund, before sales charges, also underperformed the -2.51% average return of the Lipper MidCap Core Fund peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. The U.S. had approximately 188,000 confirmed cases of the coronavirus at the end of March 2020, surpassing all other countries. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap, as large-cap equities, as measured by the S&P 500 Index, outperformed mid- and small-cap equities, as measured by the S&P MidCap 400 Index and Russell 2000 Index, respectively. Returns within the mid-cap space varied by style, as the Russell Midcap Growth Index outperformed the Russell Midcap Value Index.

Six of the eleven sectors in the Russell Midcap Value Index gained during the period, with the Healthcare (+19%), Materials (+15%), and Information Technology (+7%) sectors performing the best, while the Energy (-45%), Real Estate (-26%), and Financials (-15%) sectors lagged during the period.

The Fund’s underperformance versus the Russell Midcap Value Index over the twelve-month period was driven primarily by security selection. Security selection within the Energy, Materials, and Industrials sectors was a top detractor from performance, but was partially offset by

favorable selection in the Real Estate, Healthcare, and Financials sectors. Sector allocation, a result of the bottom-up stock selection process, added to relative performance during the period, in part due to overweights to the Healthcare and Information Technology sectors. Underweights to the Consumer Staples and Utilities sectors weighed on performance during the period.

Top detractors from the Fund’s performance relative to the Russell Midcap Value Index during the period included Diamondback Energy (Energy), Delek, (Energy), and Noble Energy (Energy). Shares of these oil and gas producing companies came under pressure during the past year due to a decrease in crude oil and natural gas prices amid decreasing demand stemming from the coronavirus pandemic. Top absolute detractors from Fund performance were Boston Properties (Real Estate), Diamondback Energy (Energy), and STORE Capital (Real Estate).

Top contributors to the Fund’s relative performance over the period included overweights to Molina Healthcare (Healthcare), Lumentum (Information Technology), and Fortune Brands (Industrials). Shares of Molina Healthcare rose during the period after reporting solid earnings as the Medicaid and Medicare business segments continued to show strong growth. Healthcare equities also rose as investors increasingly viewed a strict “Medicare-for-All” healthcare policy as less likely going forward. Shares of Lumentum rose during the period after the company reported consecutive quarterly earnings that topped estimates. Shares of Fortune Brands rose over the period after the company reported second quarter 2020 earnings that exceeded expectations. These results were led by increased home improvement demand. Top absolute contributors to the Fund’s performance were Molina Healthcare (Healthcare), Hologic (Healthcare), and Lumentum (Information Technology).

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

While we expect continued volatility in the near term, we continue to focus on seeking to find companies that are undervalued in the marketplace by evaluating three primary criteria: an issuer’s earnings power, growth potential and price-to-earnings ratio.

At the end of the period, the Fund’s largest overweights relative to the Russell Midcap Value Index were to the Financials, Healthcare and Information Technology sectors. The Fund’s largest underweights were in the Energy, Communication Services, and Utilities sectors.

 

 

 

  25  

 


The Hartford MidCap Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

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. Mid-cap securities can have greater risks and volatility than large-cap securities. Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. 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 and economic developments. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     1.8

Consumer Discretionary

     10.5  

Consumer Staples

     3.5  

Energy

     1.8  

Financials

     21.0  

Health Care

     11.6  

Industrials

     16.5  

Information Technology

     11.2  

Materials

     8.0  

Real Estate

     8.6  

Utilities

     4.9  
  

 

 

 

Total

     99.4
  

 

 

 

Short-Term Investments

     0.2  

Other Assets & Liabilities

     0.4  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

    

 

 

 

  26  

 


Hartford Quality Value Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 01/02/1996

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks long-term capital appreciation.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     -7.34%        5.39%        8.33%  

Class A2

     -12.43%        4.21%        7.72%  

Class C1

     -8.09%        4.60%        7.53%  

Class C3

     -8.97%        4.60%        7.53%  

Class I1

     -7.02%        5.73%        8.68%  

Class R31

     -7.56%        5.10%        8.05%  

Class R41

     -7.34%        5.41%        8.39%  

Class R51

     -7.05%        5.73%        8.70%  

Class R61

     -6.92%        5.84%        8.78%  

Class Y1

     -7.05%        5.78%        8.75%  

Class F1

     -6.94%        5.79%        8.72%  

Russell 1000 Value Index

     -7.57%        5.82%        9.48%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

The returns include the Fund’s performance when the Fund pursued a different investment objective and principal investment strategy prior to 11/01/2017.

Class R6 shares commenced operations on 02/28/2018. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.00%        0.96%  

Class C

     1.76%        1.71%  

Class I

     0.65%        0.65%  

Class R3

     1.27%        1.18%  

Class R4

     0.95%        0.88%  

Class R5

     0.67%        0.63%  

Class R6

     0.56%        0.46%  

Class Y

     0.66%        0.57%  

Class F

     0.55%        0.46%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  27  

 


Hartford Quality Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Matthew G. Baker

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Nataliya Kofman

Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Quality Value Fund returned -7.34%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the Russell 1000 Value Index, which returned -7.57% for the same period. For the same period, the Class A shares of the Fund, before sales charges, underperformed the -6.15% average return of the Lipper Large Cap Value Fund peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply after achieving record highs in February, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. The U.S. had approximately 188,000 confirmed cases of the coronavirus at the end of March 2020, surpassing all other countries. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

During the period, four out of eleven sectors within the Russell 1000 Value Index posted positive absolute returns, with the Healthcare (+11%), Materials (+9%), and Consumer Staples (+4%) sectors performing the best. Conversely, the Energy (-46%), Real Estate (-22%), and Financials (-18%) sectors lagged over the period.

Security selection and sector allocation both contributed positively to the Fund’s performance relative to the Russell 1000 Value Index over the period. Strong stock selection within the Information Technology, Real Estate, and Consumer Discretionary sectors were the top contributors to relative performance. This was partially offset by weaker security

selection within the Healthcare, Financials, and Utilities sectors, which detracted from performance. Sector allocation, a result of our bottom-up stock selection process, also contributed positively to relative performance during the period, due to an overweight to the Information Technology sector and underweight positions in the Consumer Staples and Consumer Discretionary sectors. This was partially offset by an overweight to the Energy sector and an underweight to the Materials sector, which detracted from performance.

Top contributors to relative performance over the period were Lowe’s Companies (Consumer Discretionary), not holding Wells Fargo (Financials), and Qualcomm (Information Technology). The share price of Lowe’s rose over the period, following upbeat earnings results. The company reported a 20% increase in same-store sales in April 2020 and has seen the trend continue, supported by its online business. Shares of Wells Fargo fell over the period after the Chief Financial Officer (CFO) predicted higher loan-loss provisions in addition to a sharp drop in interest income for the year. Qualcomm’s stock price rose after the company reported strong quarterly results driven by improving sales forecasts as well as a recently announced licensing deal with Huawei Technologies. During the period, we trimmed the Fund’s position slightly on valuation.

The largest detractors from the Fund’s performance relative to the Russell 1000 Value Index over the period were Citigroup (Financials), not holding Danaher (Healthcare), and Total (Energy). Shares of Citigroup fell after the CFO warned revenue could drop as the bank set aside more in reserves to cover potential losses caused by the coronavirus pandemic. Danaher’s stock price rose over the period after its Cepheid unit received Emergency Use Authorization from the Food and Drug Administration (FDA) for its coronavirus test. Shares of Total also fell over the period as the pandemic has drastically reduced demand for crude oil. As of the end of the period, the Fund maintained a position in the company.

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

Although the market continued its climb in the third quarter of 2020, we are wrestling with many unknowns in the short term. While enormous amounts of liquidity have been pumped into the market to try and safeguard consumer spending, we are still facing high rates of unemployment and each day are reminded of the increasing number of coronavirus cases. As temperatures dip, there is concern that an even higher resurgence of the virus may emerge. Our framework during these turbulent times is to try to avoid balance sheet risk while seeking to

 

 

 

  28  

 


Hartford Quality Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

identify mispriced opportunities that can potentially create enormous value on the other side of the pandemic.

We continue to seek to invest in companies that have reasonable valuations with attractive long-term free cash flow generation, solid balance sheets, and resilient fundamentals.

At the end of the period, the Fund’s largest overweights were to the Information Technology and Financials sectors, while the Fund’s largest underweights were to the Communication Services sector, relative to the Russell 1000 Value Index.

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. Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     6.0

Consumer Discretionary

     7.8  

Consumer Staples

     7.2  

Energy

     4.6  

Financials

     19.8  

Health Care

     14.2  

Industrials

     12.6  

Information Technology

     11.5  

Materials

     4.3  

Real Estate

     4.3  

Utilities

     6.7  
  

 

 

 

Total

     99.0
  

 

 

 

Short-Term Investments

     0.9  

Other Assets & Liabilities

     0.1  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  29  

 


The Hartford Small Cap Growth Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 01/04/1988

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks long-term capital appreciation.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     14.06%        10.22%        12.40%  

Class A2

     7.79%        8.98%        11.76%  

Class C1

     13.31%        9.48%        11.62%  

Class C3

     12.31%        9.48%        11.62%  

Class I1

     14.50%        10.58%        12.76%  

Class R31

     13.80%        9.93%        12.13%  

Class R41

     14.13%        10.27%        12.47%  

Class R51

     14.47%        10.61%        12.81%  

Class R61

     14.62%        10.72%        12.91%  

Class Y1

     14.58%        10.69%        12.91%  

Class F1

     14.62%        10.67%        12.80%  

Russell 2000 Growth Index

     13.37%        10.36%        11.95%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/2014. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.26%        1.26%  

Class C

     1.90%        1.90%  

Class I

     0.84%        0.84%  

Class R3

     1.49%        1.49%  

Class R4

     1.18%        1.18%  

Class R5

     0.86%        0.86%  

Class R6

     0.77%        0.77%  

Class Y

     0.87%        0.81%  

Class F

     0.77%        0.77%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  30  

 


The Hartford Small Cap Growth Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Mammen Chally, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

David A. Siegle, CFA

Managing Director and Equity Research Analyst

Wellington Management Company LLP

Douglas W. McLane, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford Small Cap Growth Fund returned 14.06%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the Russell 2000 Growth Index, which returned 13.37% for the same period. For the same period, the Class A shares of the Fund, before sales charges, underperformed the 17.69% average return of the Lipper Small-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. The U.S. had approximately 188,000 confirmed cases of the coronavirus at the end of March 2020, surpassing all other countries. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed small-cap and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively.

Six out of eleven sectors in the Russell 2000 Growth Index had positive returns during the period. The Healthcare (+38%), Information

Technology (+12%), and Consumer Discretionary (+12%) sectors increased the most, while the Energy (-52%), Real Estate (-12%), and Utilities (-10%) sectors lagged the broader index.

Security selection was the primary driver of the Fund’s outperformance relative to the Russell 2000 Growth Index during the period. Strong selection within the Information Technology, Consumer Staples, and Communication Services sectors contributed positively to relative performance. This was partially offset by weaker selection in the Industrials, Financials, and Real Estate sectors, which detracted from performance. Sector allocation, a result of the bottom-up stock selection process, also contributed positively to relative performance, primarily driven by the Fund’s underweight allocation to the Utilities sector and an overweight in the Industrials sector. An overweight allocation to the Consumer Discretionary sector detracted from performance during the period.

The top contributors to relative performance during the period were overweight positions in Five9 (Information Technology), MyoKardia (Healthcare), and Smith & Wesson (Consumer Discretionary). Shares of Five9, a provider of cloud-based software for contact centers, ended the period higher after reporting consecutive earnings results that beat the previous year’s corresponding quarterly results. As of the end of the period, the Fund continued to own this security. Shares of MyoKardia rose over the period. The stock soared in October 2020 on the announcement that Bristol Myers Squibb will acquire the pharmaceutical firm for $13.1 billion. Shares of Smith & Wesson increased significantly over the period after surpassing earnings expectations for the past two quarters. Nationwide coronavirus lockdowns, paired with the environments of civil unrest, have led to an increase in the demand for guns as a form of personal protection. Top absolute contributors for the period included Five9 (Information Technology), MyoKardia (Healthcare), and Teladoc Health (Healthcare).

The top detractors from relative performance included not holding Quidel (Healthcare), and overweight positions in Steve Madden (Consumer Discretionary), and Caleres (Consumer Discretionary). Shares of Quidel rose during the period after the company received emergency use authorization from the U.S. Food and Drug Administration (FDA) for the company’s rapid-result coronavirus test amid a push to ramp up detection of the deadly virus. The company’s Sofia 2 test can provide results in 15 minutes. Not owning the stock, which is a constituent of the Russell 2000 Growth Index, was a detractor from the Fund’s relative performance over the period due to the stock’s strong performance.

 

 

 

  31  

 


The Hartford Small Cap Growth Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Shares of Steve Madden, a women’s fashion footwear company, fell during the period. During the period, we exited this holding in the Fund after coronavirus negatively impacted non-essential retailers. Caleres, an American footwear company, was a top detractor from relative performance during the period. Shares of Caleres fell as the company reported an earnings miss and lower year-over-year sales for the fourth quarter of 2019. Further, the dramatic slowdown in retail demand throughout the U.S. in response to coronavirus has also weighed on the stock price. During the period, we eliminated this position within the Fund on the same basis as Steve Madden. Top absolute detractors for the period included Steve Madden (Consumer Discretionary), Caleres (Consumer Discretionary), and MGIC Investment (Financials).

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

In the next few months, we believe we will know a lot more about whether we will have a vaccine and treatment options to reduce the hospitalization and mortality rate for coronavirus. While we can see additional flare-ups, our base case assumption is that we can return to a new normal towards the end of 2021.

Beyond the U.S. border, there are still parts of the world where the incidence of cases has not stabilized, and in some areas, it does appear that the peak may still be many weeks or even months away. So, unfortunately, a lot of uncertainty remains. We are spending more time understanding the possible permanent or semi-permanent changes to behavior, both from a consumer and corporate perspective, and what that might mean for some of the Fund’s holdings. However, it seems too early to come to conclusions.

We continue to stay focused on the long term as we will eventually put this health crisis behind us. While we did make some changes to the holdings within the Fund, we continue to be incremental and mindful of the impact of volatility.

At the end of the period, the Fund’s largest overweights were to the Financials, Information Technology and Consumer Discretionary sectors, while the Fund’s largest underweights were to the Utilities, Healthcare, and Real Estate sectors, relative to the Russell 2000 Growth Index.

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. Small-cap securities can have greater risks and volatility than large-cap securities. Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     1.6

Consumer Discretionary

     15.1  

Consumer Staples

     3.3  

Energy

  
 

    

 

Financials

     5.9  

Health Care

     33.2  

Industrials

     12.8  

Information Technology

     21.8  

Materials

     3.0  

Real Estate

     2.8  
  

 

 

 

Total

     99.5
  

 

 

 

Short-Term Investments

     1.6  

Other Assets & Liabilities

     (1.1
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  32  

 


Hartford Small Cap Value Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 01/01/2005

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks long-term capital appreciation.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     -14.57%        1.87%        6.59%  

Class A2

     -19.27%        0.73%        5.99%  

Class C1

     -15.15%        1.11%        5.79%  

Class C3

     -15.95%        1.11%        5.79%  

Class I1

     -14.22%        2.20%        6.79%  

Class R31

     -14.62%        1.66%        6.44%  

Class R41

     -14.46%        1.94%        6.72%  

Class R51

     -14.21%        2.26%        7.01%  

Class R61

     -14.17%        2.33%        7.06%  

Class Y1

     -14.18%        2.32%        7.05%  

Class F1

     -14.22%        2.27%        6.82%  

Russell 2000 Value Index

     -13.92%        3.71%        7.06%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class I shares commenced operations on 03/31/2015. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges). Class R3, R4 and R5 shares commenced operations on 09/30/2011. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance for Class F shares prior to 02/28/2017 reflects the performance of Class I shares from

03/31/2015 through 02/27/2017 and Class A shares (excluding sales charges) prior to 03/31/2015. Class R6 shares commenced operations on 02/28/2018. Performance prior to that date is that of the Fund’s Class Y shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

Performance prior to 11/01/2018 reflects when the Fund pursued different strategies.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of 06/04/2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.37%        1.30%  

Class C

     2.14%        2.05%  

Class I

     1.00%        1.00%  

Class R3

     1.62%        1.50%  

Class R4

     1.31%        1.20%  

Class R5

     1.01%        0.90%  

Class R6

     0.89%        0.80%  

Class Y

     1.00%        0.85%  

Class F

     0.89%        0.80%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  33  

 


Hartford Small Cap Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Manager

Sean M. Kammann

Managing Director, Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Small Cap Value Fund returned -14.57%, before sales charges, for the twelve-month period ended October 31, 2020, underperforming the Fund’s benchmark, the Russell 2000 Value Index, which returned -13.92% for the same period. For the same period, the Class A shares of the Fund, before sales charges, underperformed the -12.85% average return of the Lipper Small-Cap Value Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending October 31, 2020. Waning recession fears, improved trade sentiment, and accommodative U.S. Federal Reserve (Fed) policy benefited U.S. markets toward the end of 2019. In the first quarter of 2020, U.S. equities fell sharply as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. The U.S. had approximately 188,000 confirmed cases of the coronavirus at the end of March 2020, surpassing all other countries. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the Fed in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Momentum continued into the third quarter of 2020 with substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. However, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap, as large-cap equities, as measured by the S&P 500 Index, outperformed mid- and small-cap equities, as measured by the S&P MidCap 400 Index and Russell 2000 Value Index, respectively.

Four of the eleven sectors in the Russell 2000 Value Index rose during the period, with the Healthcare (+20%), Consumer Staples (+19%), and Consumer Discretionary (+7%) sectors performing best. Conversely, the Energy (-51%), Communication Services (-33%), and Real Estate (-30%) sectors lagged over the period.

Security selection detracted from the Fund’s performance relative to the Russell 2000 Value Index during the period due to weak stock selection in the Industrials, Consumer Discretionary, and Information Technology sectors, which was partially offset by strong stock selection in the Financials, Communication Services, and Utilities sectors. Sector allocation, a result of our bottom-up stock selection process, benefited

relative performance. The Fund’s lack of exposure to the Energy sector and an overweight to the Consumer Discretionary sector contributed positively, while the Fund’s underweight to the Healthcare and Materials sectors partially offset these results.

The largest contributors to relative performance over the period were Medifast (Consumer Staples), Sturm Ruger & Co (Consumer Discretionary), and Avid Technology (Information Technology). Shares of Medifast, an American nutrition and weight loss company, rose over the period on strong new client acquisition and coach additions in the second quarter of 2020, which led to an 18% growth rate in revenue year-over-year, coming in significantly higher than consensus estimates. American firearm manufacturing company Sturm Ruger & Co. benefited from rising sales at the beginning of the year, driven by consumer demand, new products, and reduced promotional activity. Outperformance continued in the most recent quarter, with firearm sales climbing 178% year-over-year. Avid Technology is a technology and media company that develops a variety of software and systems. Shares climbed higher on 68% year-over-year growth in subscription revenue for the second quarter of 2020. While product sales and professional services were negatively impacted by the pandemic, high-margin subscriptions have continued to see growth. The company continued to perform well through the end of the period, maintaining momentum in subscription growth.

The largest detractors from relative performance during the period were Great Western (Financials), Knoll (Industrials), and Deluxe (Industrials). Shares of Great Western, a bank holding company based in South Dakota, fell during the period as the company faced challenges from elevated credit costs and outsized provisions in response to a significantly weaker economic outlook resulting from coronavirus. Knoll designs and manufactures branded office furniture products and textiles. The company’s net sales declined more than 25% in the second quarter of 2020 following steep declines in incoming orders during April and May. The third quarter of 2020 saw revenues decline, and gross margin shrink despite multiple rounds of layoffs conducted to reduce costs. After withdrawing guidance in March 2020 given uncertainties around coronavirus, shares of Deluxe, a company offering check printing and related business services, fell considerably. First-quarter profitability was pressured by deteriorating sales and asset impairment charges as the U.S. moved into a lockdown.

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

As we begin to think longer-term about the implications of the enormous federal budget deficits built during this crisis, we observe that the most consistent way countries have dealt with this throughout history is through higher inflation. We do not expect this to occur imminently, but it seems probable over the medium term. We believe that inflationary

 

 

 

  34  

 


Hartford Small Cap Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

periods tend to be a favorable backdrop for valuation focused investing. We continue to focus our efforts on seeking to find the most attractive long-term excess return opportunities, while seeking to balance this against the associated risks.

At the end of the period, the Fund was most overweight to the Information Technology, Financials, and Consumer Staples sectors, and most underweight to the Real Estate, Energy, and Utilities sectors relative to the Russell 2000 Value Index.

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. Small-cap securities can have greater risks and volatility than large-cap securities. Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur. 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 and economic developments.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     1.7

Consumer Discretionary

     12.8  

Consumer Staples

     6.4  

Financials

     34.5  

Health Care

     5.6  

Industrials

     17.6  

Information Technology

     12.5  

Materials

     3.5  

Real Estate

     3.0  

Utilities

     2.2  
  

 

 

 

Total

     99.8
  

 

 

 

Short-Term Investments

     2.7  

Other Assets & Liabilities

     (2.5
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  35  

 


The Hartford Small Company Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 07/22/1996

Sub-advised by Wellington Management Company LLP

  Investment objective – The Fund seeks growth of capital.

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

     

1 Year

    

5 Years

    

10 Years

 

Class A1

     33.28%        15.11%        13.16%  

Class A2

     25.95%        13.81%        12.52%  

Class C1

     32.18%        14.22%        12.32%  

Class C3

     31.18%        14.22%        12.32%  

Class I1

     33.65%        15.41%        13.46%  

Class R31

     32.97%        14.88%        12.94%  

Class R41

     33.34%        15.21%        13.28%  

Class R51

     33.74%        15.56%        13.62%  

Class R61

     33.85%        15.64%        13.71%  

Class Y1

     33.71%        15.61%        13.69%  

Class F1

     33.81%        15.54%        13.52%  

Russell 2000 Growth Index

     13.37%        10.36%        11.95%  

 

1 

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/2014. Performance prior to that date is that of the Fund’s Class Y shares. Class F shares commenced operations on 02/28/2017. Performance prior to that date is that of the Fund’s Class I shares.

To the extent a share class has adopted the prior performance of another share class that had different operating expenses, such performance has not been adjusted to reflect the different operating expenses. If the performance were adjusted, it may have been higher or lower.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.35%        1.35%  

Class C

     2.15%        2.15%  

Class I

     1.05%        1.05%  

Class R3

     1.63%        1.56%  

Class R4

     1.33%        1.26%  

Class R5

     1.03%        0.96%  

Class R6

     0.92%        0.91%  

Class Y

     0.98%        0.96%  

Class F

     0.91%        0.91%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  36  

 


The Hartford Small Company Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Steven C. Angeli, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

John V. Schneider, CFA

Managing Director and Equity Research Analyst

Wellington Management Company LLP

Ranjit Ramachandran, CFA

Managing Director and Equity Research Analyst

Wellington Management Company LLP

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of The Hartford Small Company Fund returned 33.28%, before sales charges, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the Russell 2000 Growth Index, which returned 13.37% for the same period. For the same period, the Class A shares of the Fund, before sales charges, outperformed the 17.69% average return of the Lipper Small-Cap Growth Funds peer group , a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) equities, as measured by the S&P 500 Index, rose 9.4% over the trailing twelve-month period ending October 31, 2020. Small-, mid- and large-cap growth equities outperformed the broader market during this period. The first quarter of 2020 ended sharply lower as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest ever decline into a bear market. The unprecedented scale of fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic drove the market’s rebound in the second quarter of 2020. Momentum carried into the third quarter of 2020 bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery and promising trials for coronavirus vaccines. However, the path to sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections around the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.

Returns varied by market cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed mid-cap and small-cap equities, as measured by the S&P MidCap 400 Index and Russell 2000 Index, respectively. Growth significantly outperformed value in all market cap ranges during the period.

Six out of eleven sectors in the Russell 2000 Growth Index had positive returns during the period. The Healthcare (+38%), Information

Technology (+12%), and Consumer Discretionary (+12%) sectors increased the most, while the Energy (-52%), Real Estate (-12%), and Utilities (-10%) sectors lagged the broader index.

During the period, security selection was the primary driver of the Fund’s outperformance relative to the Russell 2000 Growth Index. Strong selection in the Healthcare, Information Technology, and Industrials sectors contributed positively to relative performance, slightly offset by weak selection in the Materials and Financials sectors. Sector allocation, a result of our bottom-up stock selection process, also contributed positively to relative performance, primarily driven by the Fund’s underweight allocation to the Industrials sector.

The top contributors to relative performance during the period were Livongo Health (Healthcare), Chegg (Consumer Discretionary), and Boston Beer Co. (Consumer Discretionary). Shares of Livongo Health, a virtual healthcare provider, rose after the company announced second quarter 2020 revenue that was above expectations. Livongo also announced a merger agreement with Teledoc Health which is anticipated to position the firm as one of the leaders in comprehensive virtual care during a time of unprecedented demand and is anticipated to further expand access to underserved populations. Shares of Chegg rose over the period after reporting first-quarter earnings that surpassed expectations. The online textbook rental and learning services company saw subscriptions increase by 35% from last year as institutions moved to online learning in response to coronavirus. Shares of Boston Beer Co., a beverage company with key brands Samuel Adams and Twisted Tea, rose after the company reported strong results driven by the company’s Truly seltzer brand despite increasing competition in the spiked seltzer market. Top absolute contributors for the period included Livongo Health (Healthcare) and Chegg (Consumer Discretionary).

The top detractors from relative performance during the period included Curtiss-Wright (Industrials), Ingevity (Materials), and not holding benchmark constituent Quidel (Healthcare). Shares of Curtiss-Wright, an engineered components manufacturer servicing aerospace, defense, power generation and general industrial end markets, fell during the period as coronavirus created uncertainty for future economic growth. Shares declined on commercial aerospace and defense budget concerns. Shares of Quidel rose during the period on the heels of the U.S. Food and Drug Administration (FDA) Emergency Use Authorization for the company’s rapid-result coronavirus test amid a push to ramp up detection of the virus. The company’s Sofia 2 test can provide results in 15 minutes. Shares of Ingevity, a specialty chemicals manufacturer, traded down after

 

 

 

  37  

 


The Hartford Small Company Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

management cited coronavirus-related challenges in their automobile and oil and gas end-markets. Top absolute detractors for the period included NexPoint Residential (Real Estate), Performance Foods Group (Consumer Staples), and Marriott Vacations (Consumer Discretionary).

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

Overall, we continue to have significant uncertainty around the timing of the economic recovery, full deployment of an effective vaccine for coronavirus and policy changes that may occur as a result of the U.S. election. We remain consistent in adhering to our disciplined portfolio construction process that we believe allows us to assess risk, weight individual positions accordingly, and in the process build a portfolio that focuses largely on stock selection in seeking to generate outperformance relative to the Russell 2000 Growth Index.

In recent months, we have been trimming or eliminating stocks in the Fund that performed strongly. We have been investing in companies that we believe may perform well in a recovering economy as well as investing in companies that we believe may perform well in a more challenged macro environment.

At the end of the period, the Fund’s largest overweights were to the Consumer Discretionary, Industrials, and Information Technology sectors, while the Fund’s largest underweights were to the Healthcare, Consumer Staples, and Real Estate sectors, relative to the Russell 2000 Growth Index.

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.  Small-cap securities can have greater risks and volatility than large-cap securities.  Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.  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 and economic developments.  The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     2.1

Consumer Discretionary

     18.6  

Consumer Staples

     0.9  

Financials

     9.0  

Health Care

     26.1  

Industrials

     16.6  

Information Technology

     21.9  

Materials

     0.8  

Real Estate

     1.3  
  

 

 

 

Total

     97.3
  

 

 

 

Short-Term Investments

     4.8  

Other Assets & Liabilities

     (2.1
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  38  

 


Hartford Domestic Equity Funds

Benchmark Glossary (Unaudited)

 

 

 

Russell 1000 Growth Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index is designed to measure the performance of the 1,000 largest companies in the Russell 3000 Index based on their market capitalization and current index membership.

Russell 1000 Value Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is designed to measure the performance of the 1,000 largest companies in the Russell 3000 Index based on their market capitalization and current index membership.

Russell 2000 Growth Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 2000 Index growth companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is an index comprised of 2,000 of the smallest U.S.-domiciled company common stocks based on a combination of their market capitalization and current index membership.

Russell 2000 Value Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index is an index comprised of 2,000 of the smallest U.S.-domiciled company common stocks based on a combination of their market capitalization and current index membership.

Russell 3000 Growth Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Index is designed to measures the performance of the 3,000 largest U.S. companies based on total market capitalization.

Russell 3000 Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of the 3,000 largest U.S. companies based on total market capitalization.

Russell Midcap Value Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values.

S&P 500 Index (reflects no deduction for fees, expenses or taxes) is a float-adjusted market capitalization-weighted price index composed of 500 widely held common stocks.

S&P Composite 1500 Health Care Index (reflects no deduction for fees, expenses or taxes) is a float-adjusted market capitalization-weighted index comprised of those companies included in the S&P Composite 1500 that are classified as members of the Global Industry Classification Standard (GICS®) health care sector.

S&P MidCap 400 Index (reflects no deduction for fees, expenses or taxes) is a float-adjusted market capitalization-weighted index designed to measure the performance of the mid-cap segment of the market. The index is composed of 400 constituent companies.

 

 

 

  39  

 


Hartford Domestic Equity Funds

Expense Examples (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period of May 1, 2020 through October 31, 2020. To the extent a Fund was subject to acquired fund fees and expenses during the period, acquired fund fees and expenses are not included in the annualized expense ratios below.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the line under the heading entitled “Expenses Paid During The Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (front-end sales loads and CDSC). Therefore, the second set of columns of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher. Expenses for a class of a Fund are equal to the class’ annualized expense ratio multiplied by average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

 

     Actual Return      Hypothetical (5% return before expenses)  
      Beginning
Account Value
May 1, 2020
    

Ending
Account Value

October 31, 2020

    

Expenses paid
during the period

May 1, 2020

through
October 31, 2020

     Beginning
Account Value
May 1, 2020
     Ending
Account Value
October 31, 2020
    

Expenses paid
during the period

May 1, 2020

through
October 31, 2020

     Annualized
expense
ratio
 

The Hartford Capital Appreciation Fund

 

Class A

   $     1,000.00      $     1,161.90      $     5.76      $     1,000.00      $     1,019.81      $     5.38        1.06

Class C

   $ 1,000.00      $ 1,157.70      $ 9.93      $ 1,000.00      $ 1,015.94      $ 9.27        1.83

Class I

   $ 1,000.00      $ 1,163.80      $ 4.24      $ 1,000.00      $ 1,021.22      $ 3.96        0.78

Class R3

   $ 1,000.00      $ 1,160.00      $ 7.71      $ 1,000.00      $ 1,018.00      $ 7.20        1.42

Class R4

   $ 1,000.00      $ 1,162.00      $ 5.92      $ 1,000.00      $ 1,019.66      $ 5.53        1.09

Class R5

   $ 1,000.00      $ 1,163.60      $ 4.35      $ 1,000.00      $ 1,021.12      $ 4.06        0.80

Class R6

   $ 1,000.00      $ 1,164.30      $ 3.86      $ 1,000.00      $ 1,021.57      $ 3.61        0.71

Class Y

   $ 1,000.00      $ 1,163.90      $ 4.13      $ 1,000.00      $ 1,021.32      $ 3.86        0.76

Class F

   $ 1,000.00      $ 1,164.10      $ 3.81      $ 1,000.00      $ 1,021.62      $ 3.56        0.70

Hartford Core Equity Fund

 

                 

Class A

   $ 1,000.00      $ 1,147.00      $ 3.94      $ 1,000.00      $ 1,021.47      $ 3.71        0.73

Class C

   $ 1,000.00      $ 1,142.60      $ 7.97      $ 1,000.00      $ 1,017.70      $ 7.51        1.48

Class I

   $ 1,000.00      $ 1,148.70      $ 2.54      $ 1,000.00      $ 1,022.77      $ 2.39        0.47

Class R3

   $ 1,000.00      $ 1,145.10      $ 5.72      $ 1,000.00      $ 1,019.81      $ 5.38        1.06

Class R4

   $ 1,000.00      $ 1,147.10      $ 4.05      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

Class R5

   $ 1,000.00      $ 1,148.40      $ 2.59      $ 1,000.00      $ 1,022.72      $ 2.44        0.48

Class R6

   $ 1,000.00      $ 1,149.00      $ 2.05      $ 1,000.00      $ 1,023.23      $ 1.93        0.38

Class Y

   $ 1,000.00      $ 1,148.80      $ 2.48      $ 1,000.00      $ 1,022.82      $ 2.34        0.46

Class F

   $ 1,000.00      $ 1,149.30      $ 2.05      $ 1,000.00      $ 1,023.23      $ 1.93        0.38

 

 

  40  

 


Hartford Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

     Actual Return      Hypothetical (5% return before expenses)  
      Beginning
Account Value
May 1, 2020
    

Ending
Account Value

October 31, 2020

    

Expenses paid
during the period

May 1, 2020

through
October 31, 2020

     Beginning
Account Value
May 1, 2020
     Ending
Account Value
October 31, 2020
    

Expenses paid
during the period

May 1, 2020

through
October 31, 2020

     Annualized
expense
ratio
 

The Hartford Dividend and Growth Fund

 

                 

Class A

   $     1,000.00      $ 1,078.70      $ 5.23      $     1,000.00      $ 1,020.11      $ 5.08        1.00

Class C

   $ 1,000.00      $ 1,074.20      $ 9.28      $ 1,000.00      $ 1,016.19      $ 9.02        1.78

Class I

   $ 1,000.00      $ 1,080.20      $ 3.82      $ 1,000.00      $ 1,021.47      $ 3.71        0.73

Class R3

   $ 1,000.00      $ 1,077.30      $ 7.05      $ 1,000.00      $ 1,018.35      $ 6.85        1.35

Class R4

   $ 1,000.00      $ 1,078.60      $ 5.49      $ 1,000.00      $ 1,019.86      $ 5.33        1.05

Class R5

   $ 1,000.00      $ 1,080.00      $ 3.92      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

Class R6

   $ 1,000.00      $ 1,080.50      $ 3.40      $ 1,000.00      $ 1,021.87      $ 3.30        0.65

Class Y

   $ 1,000.00      $ 1,080.30      $ 3.61      $ 1,000.00      $ 1,021.67      $ 3.51        0.69

Class F

   $ 1,000.00      $ 1,080.70      $ 3.40      $ 1,000.00      $ 1,021.87      $ 3.30        0.65

The Hartford Equity Income Fund

 

                 

Class A

   $ 1,000.00      $ 1,061.70      $ 5.23      $ 1,000.00      $ 1,020.06      $ 5.13        1.01

Class C

   $ 1,000.00      $ 1,057.80      $ 9.10      $ 1,000.00      $ 1,016.29      $ 8.92        1.76

Class I

   $ 1,000.00      $ 1,063.60      $ 3.89      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

Class R3

   $ 1,000.00      $ 1,060.30      $ 6.99      $ 1,000.00      $ 1,018.35      $ 6.85        1.35

Class R4

   $ 1,000.00      $ 1,061.80      $ 5.44      $ 1,000.00      $ 1,019.86      $ 5.33        1.05

Class R5

   $ 1,000.00      $ 1,063.00      $ 3.99      $ 1,000.00      $ 1,021.27      $ 3.91        0.77

Class R6

   $ 1,000.00      $ 1,063.40      $ 3.48      $ 1,000.00      $ 1,021.77      $ 3.40        0.67

Class Y

   $ 1,000.00      $ 1,063.10      $ 3.73      $ 1,000.00      $ 1,021.52      $ 3.66        0.72

Class F

   $ 1,000.00      $ 1,064.00      $ 3.42      $ 1,000.00      $ 1,021.82      $ 3.35        0.66

The Hartford Growth Opportunities Fund

 

                 

Class A

   $ 1,000.00      $ 1,364.50      $ 6.42      $ 1,000.00      $ 1,019.71      $ 5.48        1.08

Class C

   $ 1,000.00      $ 1,359.50      $ 10.91      $ 1,000.00      $ 1,015.89      $ 9.32        1.84

Class I

   $ 1,000.00      $ 1,366.70      $ 4.82      $ 1,000.00      $ 1,021.06      $ 4.12        0.81

Class R3

   $ 1,000.00      $ 1,362.30      $ 8.37      $ 1,000.00      $ 1,018.05      $ 7.15        1.41

Class R4

   $ 1,000.00      $ 1,364.40      $ 6.60      $ 1,000.00      $ 1,019.56      $ 5.63        1.11

Class R5

   $ 1,000.00      $ 1,366.40      $ 5.00      $ 1,000.00      $ 1,020.91      $ 4.27        0.84

Class R6

   $ 1,000.00      $ 1,367.20      $ 4.40      $ 1,000.00      $ 1,021.42      $ 3.76        0.74

Class Y

   $ 1,000.00      $ 1,367.00      $ 4.64      $ 1,000.00      $ 1,021.22      $ 3.96        0.78

Class F

   $ 1,000.00      $ 1,367.10      $ 4.40      $ 1,000.00      $ 1,021.42      $ 3.76        0.74

The Hartford Healthcare Fund

 

                 

Class A

   $ 1,000.00      $ 1,098.80      $ 6.70      $ 1,000.00      $ 1,018.75      $ 6.44        1.27

Class C

   $ 1,000.00      $ 1,094.50      $ 10.69      $ 1,000.00      $ 1,014.93      $ 10.28        2.03

Class I

   $ 1,000.00      $ 1,100.10      $ 5.23      $ 1,000.00      $ 1,020.16      $ 5.03        0.99

Class R3

   $ 1,000.00      $ 1,096.90      $ 8.43      $ 1,000.00      $ 1,017.09      $ 8.11        1.60

Class R4

   $ 1,000.00      $ 1,098.70      $ 6.81      $ 1,000.00      $ 1,018.65      $ 6.55        1.29

Class R5

   $ 1,000.00      $ 1,100.10      $ 5.33      $ 1,000.00      $ 1,020.06      $ 5.13        1.01

Class R6

   $ 1,000.00      $ 1,100.70      $ 4.81      $ 1,000.00      $ 1,020.56      $ 4.62        0.91

Class Y

   $ 1,000.00      $ 1,100.50      $ 5.02      $ 1,000.00      $ 1,020.36      $ 4.82        0.95

Class F

   $ 1,000.00      $ 1,100.80      $ 4.81      $ 1,000.00      $ 1,020.56      $ 4.62        0.91

The Hartford MidCap Fund

 

                 

Class A

   $ 1,000.00      $ 1,140.40      $ 5.97      $ 1,000.00      $ 1,019.56      $ 5.63        1.11

Class C

   $ 1,000.00      $ 1,135.70      $ 10.04      $ 1,000.00      $ 1,015.74      $ 9.48        1.87

Class I

   $ 1,000.00      $ 1,141.90      $ 4.68      $ 1,000.00      $ 1,020.76      $ 4.42        0.87

Class R3

   $ 1,000.00      $ 1,138.00      $ 7.95      $ 1,000.00      $ 1,017.70      $ 7.51        1.48

Class R4

   $ 1,000.00      $ 1,139.90      $ 6.19      $ 1,000.00      $ 1,019.36      $ 5.84        1.15

Class R5

   $ 1,000.00      $ 1,141.90      $ 4.52      $ 1,000.00      $ 1,020.91      $ 4.27        0.84

Class R6

   $ 1,000.00      $ 1,142.10      $ 4.09      $ 1,000.00      $ 1,021.32      $ 3.86        0.76

Class Y

   $ 1,000.00      $ 1,141.70      $ 4.25      $ 1,000.00      $ 1,021.17      $ 4.01        0.79

Class F

   $ 1,000.00      $ 1,142.00      $ 4.04      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

 

 

  41  

 


Hartford Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

     Actual Return      Hypothetical (5% return before expenses)  
      Beginning
Account Value
May 1, 2020
    

Ending
Account Value

October 31, 2020

    

Expenses paid
during the period

May 1, 2020

through
October 31, 2020

     Beginning
Account Value
May 1, 2020
     Ending
Account Value
October 31, 2020
    

Expenses paid
during the period

May 1, 2020

through
October 31, 2020

     Annualized
expense
ratio
 

The Hartford MidCap Value Fund

 

                 

Class A

   $     1,000.00      $     1,069.20      $     6.66      $     1,000.00      $     1,018.70      $     6.50        1.28

Class C

   $ 1,000.00      $ 1,065.00      $ 10.64      $ 1,000.00      $ 1,014.83      $ 10.38        2.05

Class I

   $ 1,000.00      $ 1,071.10      $ 4.84      $ 1,000.00      $ 1,020.46      $ 4.72        0.93

Class R3

   $ 1,000.00      $ 1,066.90      $ 8.10      $ 1,000.00      $ 1,017.29      $ 7.91        1.56

Class R4

   $ 1,000.00      $ 1,068.80      $ 6.55      $ 1,000.00      $ 1,018.80      $ 6.39        1.26

Class R5

   $ 1,000.00      $ 1,070.90      $ 4.84      $ 1,000.00      $ 1,020.46      $ 4.72        0.93

Class Y

   $ 1,000.00      $ 1,071.60      $ 4.74      $ 1,000.00      $ 1,020.56      $ 4.62        0.91

Class F

   $ 1,000.00      $ 1,072.00      $ 4.37      $ 1,000.00      $ 1,020.91      $ 4.27        0.84

Hartford Quality Value Fund

 

                 

Class A

   $ 1,000.00      $ 1,060.40      $ 4.66      $ 1,000.00      $ 1,020.61      $ 4.57        0.90

Class C

   $ 1,000.00      $ 1,056.20      $ 8.84      $ 1,000.00      $ 1,016.54      $ 8.67        1.71

Class I

   $ 1,000.00      $ 1,062.50      $ 2.90      $ 1,000.00      $ 1,022.32      $ 2.85        0.56

Class R3

   $ 1,000.00      $ 1,059.40      $ 6.00      $ 1,000.00      $ 1,019.31      $ 5.89        1.16

Class R4

   $ 1,000.00      $ 1,060.40      $ 4.51      $ 1,000.00      $ 1,020.76      $ 4.42        0.87

Class R5

   $ 1,000.00      $ 1,062.10      $ 3.01      $ 1,000.00      $ 1,022.22      $ 2.95        0.58

Class R6

   $ 1,000.00      $ 1,063.10      $ 2.39      $ 1,000.00      $ 1,022.82      $ 2.34        0.46

Class Y

   $ 1,000.00      $ 1,062.60      $ 3.01      $ 1,000.00      $ 1,022.22      $ 2.95        0.58

Class F

   $ 1,000.00      $ 1,062.70      $ 2.39      $ 1,000.00      $ 1,022.82      $ 2.34        0.46

The Hartford Small Cap Growth Fund

 

                 

Class A

   $ 1,000.00      $ 1,221.50      $ 7.04      $ 1,000.00      $ 1,018.80      $ 6.39        1.26

Class C

   $ 1,000.00      $ 1,217.80      $ 10.59      $ 1,000.00      $ 1,015.59      $ 9.63        1.90

Class I

   $ 1,000.00      $ 1,223.90      $ 4.81      $ 1,000.00      $ 1,020.81      $ 4.37        0.86

Class R3

   $ 1,000.00      $ 1,220.30      $ 8.43      $ 1,000.00      $ 1,017.55      $ 7.66        1.51

Class R4

   $ 1,000.00      $ 1,221.90      $ 6.76      $ 1,000.00      $ 1,019.05      $ 6.14        1.21

Class R5

   $ 1,000.00      $ 1,223.80      $ 5.03      $ 1,000.00      $ 1,020.61      $ 4.57        0.90

Class R6

   $ 1,000.00      $ 1,224.60      $ 4.42      $ 1,000.00      $ 1,021.17      $ 4.01        0.79

Class Y

   $ 1,000.00      $ 1,224.30      $ 4.64      $ 1,000.00      $ 1,020.96      $ 4.22        0.83

Class F

   $ 1,000.00      $ 1,224.50      $ 4.42      $ 1,000.00      $ 1,021.17      $ 4.01        0.79

Hartford Small Cap Value Fund

 

                 

Class A

   $ 1,000.00      $ 1,146.60      $ 6.96      $ 1,000.00      $ 1,018.65      $ 6.55        1.29

Class C

   $ 1,000.00      $ 1,141.00      $ 10.92      $ 1,000.00      $ 1,014.93      $ 10.28        2.03

Class I

   $ 1,000.00      $ 1,147.80      $ 5.07      $ 1,000.00      $ 1,020.41      $ 4.77        0.94

Class R3

   $ 1,000.00      $ 1,144.90      $ 7.66      $ 1,000.00      $ 1,018.00      $ 7.20        1.42

Class R4

   $ 1,000.00      $ 1,146.60      $ 6.42      $ 1,000.00      $ 1,019.15      $ 6.04        1.19

Class R5

   $ 1,000.00      $ 1,148.50      $ 4.70      $ 1,000.00      $ 1,020.76      $ 4.42        0.87

Class R6

   $ 1,000.00      $ 1,148.50      $ 4.32      $ 1,000.00      $ 1,021.12      $ 4.06        0.80

Class Y

   $ 1,000.00      $ 1,148.70      $ 4.59      $ 1,000.00      $ 1,020.86      $ 4.32        0.85

Class F

   $ 1,000.00      $ 1,147.80      $ 4.32      $ 1,000.00      $ 1,021.12      $ 4.06        0.80

The Hartford Small Company Fund

 

                 

Class A

   $ 1,000.00      $ 1,386.60      $ 7.86      $ 1,000.00      $ 1,018.55      $ 6.65        1.31

Class C

   $ 1,000.00      $ 1,380.30      $ 12.86      $ 1,000.00      $ 1,014.33      $ 10.89        2.15

Class I

   $ 1,000.00      $ 1,388.40      $ 6.00      $ 1,000.00      $ 1,020.11      $ 5.08        1.00

Class R3

   $ 1,000.00      $ 1,385.10      $ 9.29      $ 1,000.00      $ 1,017.34      $ 7.86        1.55

Class R4

   $ 1,000.00      $ 1,386.90      $ 7.50      $ 1,000.00      $ 1,018.85      $ 6.34        1.25

Class R5

   $ 1,000.00      $ 1,388.70      $ 5.70      $ 1,000.00      $ 1,020.36      $ 4.82        0.95

Class R6

   $ 1,000.00      $ 1,389.80      $ 5.41      $ 1,000.00      $ 1,020.61      $ 4.57        0.90

Class Y

   $ 1,000.00      $ 1,388.90      $ 5.70      $ 1,000.00      $ 1,020.36      $ 4.82        0.95

Class F

   $ 1,000.00      $ 1,389.80      $ 5.41      $ 1,000.00      $ 1,020.61      $ 4.57        0.90

 

 

  42  

 


The Hartford Capital Appreciation Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
Common Stocks - 97.7%  
      Automobiles & Components - 0.2%  
  185,948    

Thor Industries, Inc.

  $ 15,727,482  
   

 

 

 
      Banks - 2.0%  
  1,965,717    

Bank of America Corp.

    46,587,493  
  183,540    

M&T Bank Corp.

    19,011,073  
  158,950    

PNC Financial Services Group, Inc.

    17,783,326  
  552,763    

Western Alliance Bancorp

    22,773,836  
  609,629    

Zions Bancorp N.A

    19,672,728  
   

 

 

 
      125,828,456  
   

 

 

 
      Capital Goods - 7.0%  
  156,184    

3M Co.

    24,983,193  
  217,731    

Caterpillar, Inc.

    34,194,654  
  656,094    

Colfax Corp.*

    17,839,196  
  370,214    

Emerson Electric Co.

    23,986,165  
  187,506    

Fortive Corp.

    11,550,370  
  196,424    

General Dynamics Corp.

    25,796,364  
  451,394    

HD Supply Holdings, Inc.*

    17,992,565  
  806,800    

HF Global, Inc.(1)(2)(3)

    12,505,400  
  1,260,965    

Ingersoll Rand, Inc.*

    44,058,117  
  813,015    

JELD-WEN Holding, Inc.*

    17,097,705  
  415,293    

Johnson Controls International plc

    17,529,517  
  568,274    

Kennametal, Inc.

    17,616,494  
  35,588    

L3Harris Technologies, Inc.

    5,733,583  
  186,453    

Lockheed Martin Corp.

    65,282,789  
  116,002    

Middleby Corp.*

    11,546,839  
  174,806    

Northrop Grumman Corp.

    50,662,275  
  311,016    

Raytheon Technologies Corp.

    16,894,389  
  507,848    

SPX FLOW, Inc.*

    21,507,363  
  149,305    

Westinghouse Air Brake Technologies Corp.

    8,853,786  
   

 

 

 
      445,630,764  
   

 

 

 
      Commercial & Professional Services - 1.5%  
  396,652    

Clean Harbors, Inc.*

    21,010,656  
  413,986    

Copart, Inc.*

    45,687,495  
  36,626    

CoStar Group, Inc.*

    30,165,540  
   

 

 

 
      96,863,691  
   

 

 

 
      Consumer Durables & Apparel - 3.6%  
  213,900    

Carter’s, Inc.

    17,422,155  
  193,562    

Lennar Corp. Class A

    13,593,859  
  566,570    

NIKE, Inc. Class B

    68,033,726  
  303,944    

Peloton Interactive, Inc. Class A*

    33,497,668  
  277,468    

Polaris, Inc.

    25,210,743  
  830,540    

Steven Madden Ltd.

    19,941,265  
  844,293    

Under Armour, Inc. Class A*

    11,685,015  
  1,344,942    

Under Armour, Inc. Class C*

    16,448,641  
  368,847    

VF Corp.

    24,786,518  
   

 

 

 
      230,619,590  
   

 

 

 
      Consumer Services - 5.0%  
  310,230    

Aramark

    8,605,780  
  231,098    

Chegg, Inc.*

    16,971,837  
  1,352,892    

DraftKings, Inc. Class A*

    47,892,377  
  573,339    

Las Vegas Sands Corp.

    27,554,672  
  769,873    

McDonald’s Corp.

    163,982,949  
  244,177    

Penn National Gaming, Inc.*

    13,180,674  
  437,866    

Wyndham Hotels & Resorts, Inc.

    20,365,148  
  208,256    

Yum! Brands, Inc.

    19,436,533  
   

 

 

 
      317,989,970  
   

 

 

 
      Diversified Financials - 2.2%  
  931,551    

American Express Co.

    84,994,713  
  617,333    

Bank of New York Mellon Corp.

    21,211,562  
  251,480    

Blackstone Group, Inc. Class A

    12,679,622  
  427,943    

Voya Financial, Inc.

    20,511,308  
   

 

 

 
      139,397,205  
   

 

 

 
Shares or Principal Amount   Market Value  
Common Stocks - 97.7% - (continued)  
      Energy - 0.2%  
  482,698    

Diamondback Energy, Inc.

  $ 12,530,840  
   

 

 

 
      Food & Staples Retailing - 0.7%  
  904,967    

U.S. Foods Holding Corp.*

    18,913,811  
  184,855    

Walmart, Inc.

    25,648,631  
   

 

 

 
      44,562,442  
   

 

 

 
      Food, Beverage & Tobacco - 7.6%  
  703,498    

Altria Group, Inc.

    25,382,208  
  222,464    

Brown-Forman Corp. Class B

    15,507,965  
  1,468,786    

Coca-Cola Co.

    70,589,855  
  261,105    

Constellation Brands, Inc. Class A

    43,142,379  
  1,790,435    

Diageo plc

    57,863,002  
  450,538    

General Mills, Inc.

    26,635,807  
  192,269    

JM Smucker Co.

    21,572,582  
  245,577    

Kellogg Co.

    15,444,337  
  252,689    

Lamb Weston Holdings, Inc.

    16,033,117  
  758,045    

Mondelez International, Inc. Class A

    40,267,350  
  653,922    

Monster Beverage Corp.*

    50,070,808  
  482,637    

PepsiCo., Inc.

    64,330,686  
  533,507    

Philip Morris International, Inc.

    37,889,667  
   

 

 

 
      484,729,763  
   

 

 

 
      Health Care Equipment & Services - 9.5%  
  79,694    

ABIOMED, Inc.*

    20,073,325  
  444,511    

Acadia Healthcare Co., Inc.*

    15,846,817  
  90,838    

Align Technology, Inc.*

    38,704,255  
  464,082    

Baxter International, Inc.

    35,998,841  
  39,335    

Becton Dickinson and Co.

    9,091,499  
  262,671    

Centene Corp.*

    15,523,856  
  334,148    

Cerner Corp.

    23,420,433  
  250,781    

Danaher Corp.

    57,564,271  
  71,758    

DexCom, Inc.*

    22,932,422  
  330,439    

Encompass Health Corp.

    20,259,215  
  264,931    

Henry Schein, Inc.*

    16,844,313  
  137,936    

Hill-Rom Holdings, Inc.

    12,561,831  
  340,654    

Hologic, Inc.*

    23,443,808  
  235,271    

Insulet Corp.*

    52,288,980  
  66,362    

Intuitive Surgical, Inc.*

    44,268,763  
  648,689    

Medtronic plc

    65,238,653  
  66,977    

Molina Healthcare, Inc.*

    12,489,201  
  66,176    

Teleflex, Inc.

    21,059,188  
  228,032    

UnitedHealth Group, Inc.

    69,581,684  
  89,534    

Veeva Systems, Inc. Class A*

    24,178,657  
   

 

 

 
      601,370,012  
   

 

 

 
      Household & Personal Products - 2.6%  
  94,437    

Clorox Co.

    19,572,068  
  939,929    

Colgate-Palmolive Co.

    74,150,999  
  302,655    

Kimberly-Clark Corp.

    40,129,027  
  208,631    

Procter & Gamble Co.

    28,603,310  
   

 

 

 
      162,455,404  
   

 

 

 
      Insurance - 3.6%  
  1,027,258    

Aflac, Inc.

    34,875,409  
  157,135    

Assurant, Inc.

    19,542,880  
  456,889    

Chubb Ltd.

    59,354,450  
  1,284,271    

CNO Financial Group, Inc.

    22,795,810  
  223,490    

Globe Life, Inc.

    18,122,804  
  179,106    

Hanover Insurance Group, Inc.

    17,133,280  
  230,529    

Kemper Corp.

    14,214,418  
  386,239    

Marsh & McLennan Cos., Inc.

    39,960,287  
   

 

 

 
      225,999,338  
   

 

 

 
      Materials - 3.1%  
  449,355    

Barrick Gold Corp.

    12,011,259  
  228,861    

Celanese Corp.

    25,978,012  
  182,197    

Ecolab, Inc.

    33,449,547  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  43  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
Common Stocks - 97.7% - (continued)  
      Materials - 3.1% - (continued)  
  451,283    

FMC Corp.

  $ 46,364,816  
  365,403    

Linde plc

    80,512,897  
   

 

 

 
      198,316,531  
   

 

 

 
      Media & Entertainment - 6.0%  
  431,870    

Activision Blizzard, Inc.

    32,705,515  
  32,393    

Alphabet, Inc. Class A*

    52,350,651  
  323,317    

Facebook, Inc. Class A*

    85,067,936  
  250,485    

Match Group, Inc.*

    29,251,638  
  417,595    

Omnicom Group, Inc.

    19,710,484  
  443,531    

Pinterest, Inc. Class A*

    26,146,152  
  134,073    

Roku, Inc.*

    27,136,375  
  946,486    

Snap, Inc. Class A*

    37,282,084  
  91,598    

Spotify Technology S.A.*

    21,973,444  
  409,541    

Twitter, Inc.*

    16,938,616  
  256,235    

Walt Disney Co.

    31,068,494  
   

 

 

 
      379,631,389  
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 6.7%  
  141,485    

Alnylam Pharmaceuticals, Inc.*

    17,398,410  
  256,869    

AstraZeneca plc ADR

    12,884,549  
  17,410    

Biogen, Inc.*

    4,388,539  
  61,045    

Bluebird Bio, Inc.*

    3,156,637  
  527,851    

ChemoCentryx, Inc.*

    25,336,848  
  516,739    

Elanco Animal Health, Inc.*

    16,024,076  
  319,949    

Exact Sciences Corp.*

    39,619,285  
  129,743    

Galapagos N.V.*

    15,165,291  
  2,100    

Galapagos N.V. ADR*(4)

    244,608  
  236,834    

Heron Therapeutics, Inc.*

    3,862,763  
  520,726    

Johnson & Johnson

    71,396,742  
  82,374    

Kodiak Sciences, Inc.*

    7,480,383  
  23,275    

Mettler-Toledo International, Inc.*

    23,226,355  
  1,842,700    

Pfizer, Inc.

    65,378,996  
  559,437    

PTC Therapeutics, Inc.*

    29,197,017  
  41,235    

Reata Pharmaceuticals, Inc. Class A*

    4,812,537  
  31,921    

Regeneron Pharmaceuticals, Inc.*

    17,350,979  
  93,799    

Seagen, Inc.*

    15,645,673  
  69,313    

Thermo Fisher Scientific, Inc.

    32,793,367  
  115,232    

Vertex Pharmaceuticals, Inc.*

    24,009,739  
   

 

 

 
      429,372,794  
   

 

 

 
      Real Estate - 3.6%  
  139,172    

Alexandria Real Estate Equities, Inc. REIT

    21,087,341  
  75,326    

American Tower Corp. REIT

    17,298,616  
  426,581    

Americold Realty Trust REIT

    15,455,030  
  127,761    

Crown Castle International Corp. REIT

    19,956,268  
  27,488    

Equinix, Inc. REIT

    20,100,325  
  682,822    

Gaming and Leisure Properties, Inc. REIT

    24,820,580  
  456,843    

Highwoods Properties, Inc. REIT

    13,600,216  
  166,033    

Life Storage, Inc. REIT

    18,952,667  
  127,984    

Public Storage REIT

    29,317,295  
  828,139    

STORE Capital Corp. REIT

    21,283,172  
  1,274,634    

VICI Properties, Inc. REIT

    29,252,850  
  8,145    

We Co. Class A(1)(2)(3)

    41,377  
   

 

 

 
      231,165,737  
   

 

 

 
      Retailing - 8.9%  
  95,472    

Alibaba Group Holding Ltd. ADR*

    29,089,364  
  59,856    

Amazon.com, Inc.*

    181,731,794  
  19,384    

AutoZone, Inc.*

    21,884,148  
  32,126    

Booking Holdings, Inc.*

    52,124,435  
  410,633    

Chewy, Inc. Class A*(4)

    25,294,993  
  133,306    

Dollar General Corp.

    27,822,295  
  10,615    

JAND, Inc. Class A*(1)(2)(3)

    234,804  
  411,696    

Lowe’s Cos., Inc.

    65,089,138  
  2,919,644    

TJX Cos., Inc.

    148,317,915  
Shares or Principal Amount   Market Value  
Common Stocks - 97.7% - (continued)  
      Retailing - 8.9% - (continued)  
  316,327    

Tory Burch LLC*(1)(2)(3)

  $ 13,051,639  
   

 

 

 
      564,640,525  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 4.1%  
  532,372    

Advanced Micro Devices, Inc.*

    40,082,288  
  214,828    

First Solar, Inc.*

    18,699,703  
  901,947    

Marvell Technology Group Ltd.

    33,832,032  
  611,779    

Micron Technology, Inc.*

    30,796,955  
  190,623    

MKS Instruments, Inc.

    20,661,627  
  148,550    

NVIDIA Corp.

    74,477,028  
  289,355    

Texas Instruments, Inc.

    41,837,839  
   

 

 

 
      260,387,472  
   

 

 

 
      Software & Services - 10.6%  
  163,722    

Accenture plc Class A

    35,512,939  
  254,738    

Amdocs Ltd.

    14,362,128  
  86,071    

Citrix Systems, Inc.

    9,749,262  
  39,741    

Fair Isaac Corp.*

    15,556,615  
  180,360    

FleetCor Technologies, Inc.*

    39,843,328  
  753,395    

Genpact Ltd.

    25,894,186  
  202,256    

Global Payments, Inc.

    31,903,861  
  562,006    

GoDaddy, Inc. Class A*

    39,756,305  
  179,549    

Guidewire Software, Inc.*

    17,256,454  
  363,524    

International Business Machines Corp.

    40,591,090  
  218,217    

Leidos Holdings, Inc.

    18,112,011  
  244,945    

Microsoft Corp.

    49,594,014  
  2,016,017    

Multiplan Corp.*(4)

    14,716,924  
  826,571    

Oracle Corp.

    46,378,899  
  61,641    

Paycom Software, Inc.*

    22,442,872  
  70,115    

RingCentral, Inc. Class A*

    18,113,509  
  197,224    

Splunk, Inc.*

    39,058,241  
  289,147    

Square, Inc. Class A*

    44,783,087  
  144,981    

Visa, Inc. Class A

    26,344,498  
  178,113    

WEX, Inc.*

    22,540,200  
  469,325    

Workday, Inc. Class A*

    98,614,569  
   

 

 

 
      671,124,992  
   

 

 

 
      Technology Hardware & Equipment - 4.1%  
  1,260,615    

Apple, Inc.

    137,230,549  
  207,503    

CDW Corp.

    25,439,868  
  1,209,882    

Cisco Systems, Inc.

    43,434,764  
  1,943,744    

Flex Ltd.*

    27,503,978  
  289,628    

Lumentum Holdings, Inc.*

    23,949,339  
  75,002    

Vontier Corp.*

    2,155,557  
   

 

 

 
      259,714,055  
   

 

 

 
      Telecommunication Services - 0.8%  
  451,140    

T-Mobile U.S., Inc.*

    49,431,410  
   

 

 

 
      Transportation - 3.7%      
  337,312    

Canadian National Railway Co.

    33,508,401  
  195,251    

FedEx Corp.

    50,661,777  
  206,352    

J.B. Hunt Transport Services, Inc.

    25,121,293  
  63,277    

Southwest Airlines Co.

    2,501,340  
  1,094,942    

Uber Technologies, Inc.*

    36,582,012  
  254,583    

Union Pacific Corp.

    45,109,562  
  254,585    

United Parcel Service, Inc. Class B

    39,997,849  
   

 

 

 
      233,482,234  
   

 

 

 
      Utilities - 0.4%  
  211,718    

Sempra Energy

    26,540,968  
   

 

 

 
 

Total Common Stocks
(cost $5,189,569,720)

  $ 6,207,513,064  
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  44  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
Convertible Preferred Stocks - 0.7%  
      Commercial & Professional Services - 0.0%  
  33,739    

Rubicon Global Holdings LLC Series C*(1)(2)(3)

  $ 540,836  
   

 

 

 
      Consumer Services - 0.0%  
  20,148    

Airbnb, Inc. Series E*(1)(2)(3)

    840,675  
   

 

 

 
      Diversified Financials - 0.1%  
  348,919    

Social Finance, Inc. Series F*(1)(2)(3)

    5,432,669  
   

 

 

 
      Real Estate - 0.2%  
  674,436    

We Co. Series D1*(1)(2)(3)

    5,280,834  
  599,094    

We Co. Series D2*(1)(2)(3)

    4,690,906  
   

 

 

 
      9,971,740  
   

 

 

 
      Retailing - 0.2%  
  269,407    

Coupang LLC *(1)(2)(3)

    2,311,512  
  28,025    

Honest Co., Inc. Series C*(1)(2)(3)

    988,161  
  278,194    

Honest Co., Inc. Series D *(1)(2)(3)

    11,461,593  
  23,702    

JAND, Inc. Series D*(1)(2)(3)

    531,399  
   

 

 

 
      15,292,665  
   

 

 

 
      Software & Services - 0.2%  
  566,622    

Essence Group Holdings Corp. Series 3*(1)(2)(3)

    1,314,563  
  77,707    

Lookout, Inc. Series F*(1)(2)(3)

    674,497  
  47,064    

Sharecare, Inc. Series B2*(1)(2)(3)

    10,858,135  
   

 

 

 
      12,847,195  
   

 

 

 
 

Total Convertible Preferred Stocks
(cost $56,463,187)

  $ 44,925,780  
   

 

 

 
Escrows - 0.0%(5)  
      Consumer Durables & Apparel - 0.0%  
  83,332    

One Kings Lane, Inc.*(1)(2)(3)

  $ 13,333  
   

 

 

 
      Software & Services - 0.0%  
  58,205    

Veracode, Inc.*(1)(2)(3)

    39,056  
   

 

 

 
 

Total Escrows
(cost $—)

  $ 52,389  
   

 

 

 
 

Total Long-Term Investments
(cost $5,246,032,907)

  $ 6,252,491,233  
   

 

 

 
Short-Term Investments - 1.4%  
      Repurchase Agreements - 1.2%  
  77,872,403    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $77,872,792; collateralized by U.S. Treasury Note at 2.250%, maturing 11/15/2027, with a market value of $79,429,944

  $ 77,872,403  
   

 

 

 
      Securities Lending Collateral - 0.2%  
  13,291,701    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(6)

    13,291,701  
  13,415    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(6)

    13,415  
   

 

 

 
      13,305,116  
   

 

 

 
 

Total Short-Term Investments
(cost $91,177,519)

  $ 91,177,519  
   

 

 

 
 

Total Investments
(cost $5,337,210,426)

    99.8   $ 6,343,668,752  
 

Other Assets and Liabilities

    0.2     13,288,365  
   

 

 

 

 

   

 

 

 
 

Total Net Assets

    100.0   $ 6,356,957,117  
   

 

 

 

 

   

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Investment valued using significant unobservable inputs.

 

(2)

These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At October 31, 2020, the aggregate fair value of these securities was $70,811,389, which represented 1.1% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(3) 

Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $70,811,389 or 1.1% of net assets.

 

Period
Acquired

  

Security Name

  Shares/
Par Value
    Total Cost     Market Value  
06/2015    Airbnb, Inc. Series E Convertible Preferred     20,148     $ 937,833     $ 840,675  
11/2014    Coupang LLC Convertible Preferred     269,407       838,697       2,311,512  
05/2014    Essence Group Holdings Corp. Series 3 Convertible Preferred     566,622       895,999       1,314,563  
06/2015    HF Global, Inc.     806,800       10,846,942       12,505,400  
08/2014    Honest Co., Inc. Series C Convertible Preferred     28,025       758,281       988,161  
08/2015    Honest Co., Inc. Series D Convertible Preferred     278,194       12,728,766       11,461,593  
04/2015    JAND, Inc. Class A     10,615       121,916       234,804  
04/2015    JAND, Inc. Series D Convertible Preferred     23,702       272,225       531,399  
07/2014    Lookout, Inc. Series F Convertible Preferred     77,707       887,655       674,497  
01/2014    One Kings Lane, Inc.     83,332             13,333  
09/2015    Rubicon Global Holdings LLC Series C Convertible Preferred     33,739       673,447       540,836  
03/2015    Sharecare, Inc. Series B2 Convertible Preferred     47,064       11,759,882       10,858,135  
09/2015    Social Finance, Inc. Series F Convertible Preferred     348,919       5,504,651       5,432,669  
11/2013    Tory Burch LLC     316,327       24,792,580       13,051,639  
04/2017    Veracode, Inc.     58,205             39,056  
12/2014    We Co. Class A     8,145       135,624       41,377  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  45  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Period
Acquired

  

Security Name

  Shares/
Par Value
    Total Cost     Market Value  
12/2014    We Co. Series D1 Convertible Preferred     674,436     $ 11,230,142     $ 5,280,834  
12/2014    We Co. Series D2 Convertible Preferred     599,094       9,975,610     $ 4,690,906  
      

 

 

   

 

 

 
               $92,360,250     $70,811,389  
      

 

 

   

 

 

 
(4) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(5) 

Share amount represents shares of the issuer previously held that resulted in receipt of the escrow.

 

(6) 

Current yield as of period end.

 

 

Futures Contracts Outstanding at October 31, 2020  

Description

   Number of
Contracts
     Expiration
Date
     Current
Notional
Amount
     Value and
Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

           

S&P 500 (E-Mini) Future

     390        12/18/2020      $ 63,661,650      $ (2,106,396
           

 

 

 

Total futures contracts

            $ (2,106,396
           

 

 

 

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total     Level 1     Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Automobiles & Components

   $ 15,727,482     $ 15,727,482     $      $  

Banks

     125,828,456       125,828,456               

Capital Goods

     445,630,764       433,125,364              12,505,400  

Commercial & Professional Services

     96,863,691       96,863,691               

Consumer Durables & Apparel

     230,619,590       230,619,590               

Consumer Services

     317,989,970       317,989,970               

Diversified Financials

     139,397,205       139,397,205               

Energy

     12,530,840       12,530,840               

Food & Staples Retailing

     44,562,442       44,562,442               

Food, Beverage & Tobacco

     484,729,763       426,866,761       57,863,002         

Health Care Equipment & Services

     601,370,012       601,370,012               

Household & Personal Products

     162,455,404       162,455,404               

Insurance

     225,999,338       225,999,338               

Materials

     198,316,531       198,316,531               

Media & Entertainment

     379,631,389       379,631,389               

Pharmaceuticals, Biotechnology & Life Sciences

     429,372,794       414,207,503       15,165,291         

Real Estate

     231,165,737       231,124,360              41,377  

Retailing

     564,640,525       551,354,082              13,286,443  

Semiconductors & Semiconductor Equipment

     260,387,472       260,387,472               

Software & Services

     671,124,992       671,124,992               

Technology Hardware & Equipment

     259,714,055       259,714,055               

Telecommunication Services

     49,431,410       49,431,410               

Transportation

     233,482,234       233,482,234               

Utilities

     26,540,968       26,540,968               

Convertible Preferred Stocks

     44,925,780                    44,925,780  

Escrows

     52,389                    52,389  

Short-Term Investments

     91,177,519       13,305,116       77,872,403         
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $     6,343,668,752     $     6,121,956,667     $     150,900,696      $     70,811,389  
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

 

Futures Contracts(2)

   $ (2,106,396   $ (2,106,396   $      $  
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ (2,106,396   $ (2,106,396   $      $  
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, investments valued at $17,924,974 were transferred out of Level 3 due to the initiation of a vendor providing prices that are based on market activity which has been determined to be significant observable input and there were no transfers in to Level 3.

 

(2) 

Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

  46  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the year ended October 31, 2020:

 

     Common
Stocks
    Convertible
Preferred
Stocks
    Escrows     Total  

Beginning balance

   $ 66,160,890     $ 53,985,898     $ 56,188     $ 120,202,976  

Sales

         (16,418,315     (1,805,662         (18,051         (18,242,028

Total realized gain/(loss)

     (35,113     143,885       18,051       126,823  

Net change in unrealized appreciation/(depreciation)

     (5,949,268     (7,398,341     (3,799     (13,351,408

Transfers out of Level 3

     (17,924,974                 (17,924,974
  

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 25,833,220     $     44,925,780     $ 52,389     $ 70,811,389  
  

 

 

   

 

 

   

 

 

   

 

 

 

The change in net unrealized appreciation/(depreciation) relating to the Level 3 investments held at October 31, 2020 was $(13,240,836).

 

The accompanying notes are an integral part of these financial statements.

 

 

  47  

 


Hartford Core Equity Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
Common Stocks - 97.0%  
      Banks - 4.9%  
  6,116,367    

Bank of America Corp.

  $ 144,957,898  
  1,764,993    

JP Morgan Chase & Co.

    173,039,913  
  903,569    

PNC Financial Services Group, Inc.

    101,091,300  
   

 

 

 
      419,089,111  
   

 

 

 
      Capital Goods - 5.4%  
  951,722    

AMETEK, Inc.

    93,459,100  
  1,360,549    

Fortune Brands Home & Security, Inc.

    110,027,598  
  421,353    

IDEX Corp.

    71,794,338  
  594,759    

Illinois Tool Works, Inc.

    116,501,393  
  1,355,794    

Raytheon Technologies Corp.

    73,646,730  
   

 

 

 
      465,429,159  
   

 

 

 
      Commercial & Professional Services - 1.8%  
  480,348    

Equifax, Inc.

    65,615,537  
  1,009,666    

Republic Services, Inc.

    89,022,251  
   

 

 

 
      154,637,788  
   

 

 

 
      Consumer Durables & Apparel - 2.4%  
  897,307    

NIKE, Inc. Class B

    107,748,625  
  1,506,992    

VF Corp.

    101,269,862  
   

 

 

 
      209,018,487  
   

 

 

 
      Consumer Services - 1.6%  
  638,422    

McDonald’s Corp.

    135,983,886  
   

 

 

 
      Diversified Financials - 3.2%  
  893,815    

American Express Co.

    81,551,680  
  151,518    

BlackRock, Inc.

    90,791,101  
  2,174,873    

Morgan Stanley

    104,720,135  
   

 

 

 
      277,062,916  
   

 

 

 
      Energy - 0.7%  
  1,736,617    

EOG Resources, Inc.

    59,461,766  
   

 

 

 
      Food & Staples Retailing - 3.0%  
  305,474    

Costco Wholesale Corp.

    109,243,612  
  1,043,778    

Walmart, Inc.

    144,824,197  
   

 

 

 
      254,067,809  
   

 

 

 
      Food, Beverage & Tobacco - 2.9%  
  694,296    

Constellation Brands, Inc. Class A

    114,718,528  
  679,884    

Kellogg Co.

    42,757,905  
  1,191,831    

Monster Beverage Corp.*

    91,258,500  
   

 

 

 
      248,734,933  
   

 

 

 
      Health Care Equipment & Services - 8.9%  
  771,933    

Abbott Laboratories

    81,137,878  
  1,351,514    

Baxter International, Inc.

    104,836,941  
  376,211    

Becton Dickinson and Co.

    86,953,648  
  558,498    

Danaher Corp.

    128,197,631  
  1,586,112    

Hologic, Inc.*

    109,156,228  
  371,067    

Laboratory Corp. of America Holdings*

    74,128,054  
  585,212    

UnitedHealth Group, Inc.

    178,571,590  
   

 

 

 
      762,981,970  
   

 

 

 
      Household & Personal Products - 3.9%  
  1,475,430    

Colgate-Palmolive Co.

    116,396,673  
  1,593,319    

Procter & Gamble Co.

    218,444,035  
   

 

 

 
      334,840,708  
   

 

 

 
      Insurance - 1.5%  
  1,718,858    

Athene Holding Ltd. Class A*

    55,140,965  
  596,075    

Chubb Ltd.

    77,436,103  
   

 

 

 
      132,577,068  
   

 

 

 
      Materials - 2.0%  
  745,156    

PPG Industries, Inc.

    96,661,636  
  494,671    

Vulcan Materials Co.

    71,648,148  
   

 

 

 
      168,309,784  
   

 

 

 
Shares or Principal Amount   Market Value  
Common Stocks - 97.0% - (continued)  
      Media & Entertainment - 8.8%  
  235,809    

Alphabet, Inc. Class A*

  $ 381,093,283  
  882,057    

Facebook, Inc. Class A*

    232,078,017  
  1,213,867    

Walt Disney Co.

    147,181,374  
   

 

 

 
      760,352,674  
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 5.4%  
  1,068,092    

Eli Lilly & Co.

    139,343,282  
  1,390,283    

Merck & Co., Inc.

    104,563,184  
  96,921    

Regeneron Pharmaceuticals, Inc.*

    52,682,379  
  353,357    

Thermo Fisher Scientific, Inc.

    167,180,264  
   

 

 

 
      463,769,109  
   

 

 

 
      Real Estate - 1.8%  
  431,634    

American Tower Corp. REIT

    99,124,748  
  719,512    

Boston Properties, Inc. REIT

    52,099,864  
   

 

 

 
      151,224,612  
   

 

 

 
      Retailing - 6.1%  
  130,900    

Amazon.com, Inc.*

    397,432,035  
  2,468,866    

TJX Cos., Inc.

    125,418,393  
   

 

 

 
      522,850,428  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 5.4%  
  858,551    

Advanced Micro Devices, Inc.*

    64,640,305  
  284,871    

KLA Corp.

    56,170,864  
  1,010,388    

Micron Technology, Inc.*

    50,862,932  
  747,865    

QUALCOMM, Inc.

    92,256,626  
  750,327    

Teradyne, Inc.

    65,916,227  
  943,735    

Texas Instruments, Inc.

    136,454,644  
   

 

 

 
      466,301,598  
   

 

 

 
      Software & Services - 12.7%  
  725,613    

Fidelity National Information Services, Inc.

    90,404,124  
  538,069    

Global Payments, Inc.

    84,875,004  
  898,230    

GoDaddy, Inc. Class A*

    63,540,790  
  1,063,337    

Leidos Holdings, Inc.

    88,256,971  
  486,210    

Mastercard, Inc. Class A

    140,339,655  
  1,660,443    

Microsoft Corp.

    336,189,894  
  666,466    

salesforce.com, Inc.*

    154,800,058  
  914,379    

SS&C Technologies Holdings, Inc.

    54,149,524  
  373,465    

Workday, Inc. Class A*

    78,472,466  
   

 

 

 
      1,091,028,486  
   

 

 

 
      Technology Hardware & Equipment - 8.3%  
  4,060,120    

Apple, Inc.

    441,984,663  
  540,209    

CDW Corp.

    66,229,623  
  3,225,178    

Corning, Inc.

    103,108,941  
  668,184    

Motorola Solutions, Inc.

    105,613,163  
   

 

 

 
      716,936,390  
   

 

 

 
      Telecommunication Services - 1.5%  
  2,227,704    

Verizon Communications, Inc.

    126,956,851  
   

 

 

 
      Transportation - 1.6%  
  526,915    

FedEx Corp.

    136,718,635  
   

 

 

 
      Utilities - 3.2%  
  1,435,921    

American Electric Power Co., Inc.

    129,132,375  
  1,990,432    

NextEra Energy, Inc.

    145,719,527  
   

 

 

 
      274,851,902  
   

 

 

 
 

Total Common Stocks
(cost $6,382,611,636)

  $ 8,333,186,070  
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  48  

 


Hartford Core Equity Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
Short-Term Investments - 1.8%  
      Repurchase Agreements - 1.8%  
  153,723,081    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $153,723,850; collateralized by U.S. Treasury Note at 2.875%, maturing 05/15/2028, with a market value of $156,797,580

  $ 153,723,081  
   

 

 

 
 

Total Short-Term Investments
(cost $153,723,081)

  $ 153,723,081  
   

 

 

 
 

Total Investments
(cost $6,536,334,717)

    98.8    $ 8,486,909,151  
 

Other Assets and Liabilities

    1.2      105,843,280  
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 8,592,752,431  
   

 

 

    

 

 

 
Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

 

Futures Contracts Outstanding at October 31, 2020  

Description

   Number of
Contracts
     Expiration Date      Current
Notional
Amount
     Value and
Unrealized
Appreciation/
(Depreciation)
 
Long position contracts:  

S&P 500 (E-Mini) Future

     810        12/18/2020      $     132,220,350      $     (2,034,977
              

 

 

 

Total futures contracts

 

   $     (2,034,977
              

 

 

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Banks

   $ 419,089,111      $ 419,089,111      $      $  

Capital Goods

     465,429,159        465,429,159                

Commercial & Professional Services

     154,637,788        154,637,788                

Consumer Durables & Apparel

     209,018,487        209,018,487                

Consumer Services

     135,983,886        135,983,886                

Diversified Financials

     277,062,916        277,062,916                

Energy

     59,461,766        59,461,766                

Food & Staples Retailing

     254,067,809        254,067,809                

Food, Beverage & Tobacco

     248,734,933        248,734,933                

Health Care Equipment & Services

     762,981,970        762,981,970                

Household & Personal Products

     334,840,708        334,840,708                

Insurance

     132,577,068        132,577,068                

Materials

     168,309,784        168,309,784                

Media & Entertainment

     760,352,674        760,352,674                

Pharmaceuticals, Biotechnology & Life Sciences

     463,769,109        463,769,109                

Real Estate

     151,224,612        151,224,612                

Retailing

     522,850,428        522,850,428                

Semiconductors & Semiconductor Equipment

     466,301,598        466,301,598                

Software & Services

     1,091,028,486        1,091,028,486                

Technology Hardware & Equipment

     716,936,390        716,936,390                

Telecommunication Services

     126,956,851        126,956,851                

Transportation

     136,718,635        136,718,635                

Utilities

     274,851,902        274,851,902                

Short-Term Investments

     153,723,081               153,723,081         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     8,486,909,151      $     8,333,186,070      $     153,723,081      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  49  

 


Hartford Core Equity Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Description

   Total     Level 1     Level 2      Level 3(1)  

Liabilities

 

Futures Contracts(2)

   $ (2,034,977   $ (2,034,977   $      $  
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ (2,034,977   $ (2,034,977   $      $  
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

(2) 

Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

  50  

 


The Hartford Dividend and Growth Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount     Market Value  
Common Stocks - 96.9%  
      Banks - 8.7%  
  11,752,805    

Bank of America Corp.

    $ 278,541,478  
  1,186,995    

Bank of Nova Scotia

      49,331,512  
  595,137    

Citigroup, Inc.

      24,650,575  
  3,204,040    

JP Morgan Chase & Co.

      314,124,082  
  1,199,199    

PNC Financial Services Group, Inc.

      134,166,384  
     

 

 

 
        800,814,031  
     

 

 

 
      Capital Goods - 8.3%  
  590,635    

Deere & Co.

      133,430,353  
  660,476    

Eaton Corp. plc

      68,550,804  
  534,847    

General Dynamics Corp.

      70,241,456  
  2,148,991    

Ingersoll Rand, Inc.*

      75,085,745  
  3,800,438    

Johnson Controls International plc

      160,416,488  
  250,697    

Lockheed Martin Corp.

      87,776,541  
  902,067    

Otis Worldwide Corp.

      55,278,666  
  2,085,633    

Raytheon Technologies Corp.

      113,291,585  
     

 

 

 
        764,071,638  
     

 

 

 
      Consumer Services - 2.1%  
  1,045,090    

Hilton Worldwide Holdings, Inc.

      91,769,353  
  473,545    

McDonald’s Corp.

      100,865,085  
     

 

 

 
        192,634,438  
     

 

 

 
      Diversified Financials - 4.5%  
  1,449,725    

American Express Co.

      132,272,909  
  207,109    

BlackRock, Inc.

      124,101,784  
  1,915,594    

Charles Schwab Corp.

      78,750,069  
  1,014,580    

Northern Trust Corp.

      79,411,177  
     

 

 

 
        414,535,939  
     

 

 

 
      Energy - 3.7%  
  1,827,063    

Chevron Corp.

      126,980,879  
  2,874,349    

ConocoPhillips

      82,263,868  
  1,033,932    

Hess Corp.

      38,482,949  
  1,766,120    

Marathon Petroleum Corp.

      52,100,540  
  1,424,746    

Total SE ADR

      43,212,546  
     

 

 

 
        343,040,782  
     

 

 

 
      Food & Staples Retailing - 2.7%  
  1,675,196    

Sysco Corp.

      92,655,091  
  1,089,445    

Walmart, Inc.

      151,160,493  
     

 

 

 
        243,815,584  
     

 

 

 
      Food, Beverage & Tobacco - 3.3%  
  3,008,645    

Coca-Cola Co.

      144,595,479  
  1,254,631    

Kellogg Co.

      78,903,743  
  580,140    

PepsiCo., Inc.

      77,326,861  
     

 

 

 
        300,826,083  
     

 

 

 
      Health Care Equipment & Services - 7.6%  
  373,662    

Abbott Laboratories

      39,275,613  
  166,007    

Anthem, Inc.

      45,286,710  
  438,196    

Becton Dickinson and Co.

      101,280,241  
  997,824    

CVS Health Corp.

      55,967,948  
  873,581    

HCA Healthcare, Inc.

      108,271,629  
  1,334,865    

Medtronic plc

      134,247,373  
  688,399    

UnitedHealth Group, Inc.

      210,058,071  
     

 

 

 
        694,387,585  
     

 

 

 
      Insurance - 4.0%  
  2,529,190    

American International Group, Inc.

      79,644,193  
  673,923    

Chubb Ltd.

      87,549,337  
  1,998,288    

Principal Financial Group, Inc.

      78,372,856  
  1,851,508    

Prudential Financial, Inc.

      118,533,542  
     

 

 

 
        364,099,928  
     

 

 

 
Shares or Principal Amount     Market Value  
Common Stocks - 96.9% - (continued)  
      Materials - 4.0%  
  1,563,417    

Celanese Corp.

    $ 177,463,464  
  775,700    

FMC Corp.

      79,695,418  
  874,575    

PPG Industries, Inc.

      113,449,869  
     

 

 

 
        370,608,751  
     

 

 

 
      Media & Entertainment - 5.8%  
  195,273    

Alphabet, Inc. Class A*

      315,582,648  
  5,182,990    

Comcast Corp. Class A

      218,929,498  
     

 

 

 
        534,512,146  
     

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 7.9%  
  851,127    

Agilent Technologies, Inc.

      86,891,555  
  2,455,131    

AstraZeneca plc ADR

      123,149,371  
  1,003,693    

Bristol-Myers Squibb Co.

      58,665,856  
  1,685,858    

Merck & Co., Inc.

      126,793,380  
  1,209,020    

Novartis AG ADR

      94,400,282  
  6,687,469    

Pfizer, Inc.

      237,271,400  
     

 

 

 
        727,171,844  
     

 

 

 
      Real Estate - 2.5%  
  365,955    

American Tower Corp. REIT

      84,041,566  
  4,982,189    

Host Hotels & Resorts, Inc. REIT

      52,213,341  
  396,265    

Public Storage REIT

      90,772,423  
     

 

 

 
        227,027,330  
     

 

 

 
      Retailing - 4.6%  
  524,188    

Home Depot, Inc.

      139,806,182  
  1,086,801    

Lowe’s Cos., Inc.

      171,823,238  
  2,265,704    

TJX Cos., Inc.

      115,097,763  
     

 

 

 
        426,727,183  
     

 

 

 
      Semiconductors & Semiconductor Equipment - 5.0%  
  483,680    

Broadcom, Inc.

      169,109,039  
  1,686,975    

Intel Corp.

      74,699,253  
  185,617    

KLA Corp.

      36,599,960  
  1,463,253    

Micron Technology, Inc.*

      73,660,156  
  728,775    

Texas Instruments, Inc.

      105,373,577  
     

 

 

 
        459,441,985  
     

 

 

 
      Software & Services - 6.4%  
  423,539    

Accenture plc Class A

      91,869,844  
  347,325    

International Business Machines Corp.

      38,782,310  
  2,268,435    

Microsoft Corp.

      459,290,034  
     

 

 

 
        589,942,188  
     

 

 

 
      Technology Hardware & Equipment - 7.3%  
  2,406,432    

Apple, Inc.

      261,964,187  
  3,787,520    

Cisco Systems, Inc.

      135,971,968  
  3,671,579    

Corning, Inc.

      117,380,381  
  5,411,109    

HP, Inc.

      97,183,518  
  338,176    

Motorola Solutions, Inc.

      53,452,098  
     

 

 

 
        665,952,152  
     

 

 

 
      Telecommunication Services - 3.4%  
  5,478,598    

Verizon Communications, Inc.

      312,225,300  
     

 

 

 
      Transportation - 1.1%  
  570,427    

Union Pacific Corp.

      101,073,960  
     

 

 

 
      Utilities - 4.0%  
  1,709,798    

Dominion Energy, Inc.

      137,365,171  
  2,700,956    

Exelon Corp.

      107,741,135  
  982,980    

Sempra Energy

      123,226,373  
     

 

 

 
        368,332,679  
     

 

 

 
 

Total Common Stocks
(cost $6,787,600,925)

    $ 8,901,241,526  
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  51  

 


The Hartford Dividend and Growth Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount     Market Value  
Short-Term Investments - 1.9%  
      Repurchase Agreements - 1.9%  
  180,291,484    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $180,292,385; collateralized by U.S. Treasury Note at 2.250%, maturing 11/15/2027, with a market value of $183,897,340

 

  $ 180,291,484  
     

 

 

 
 

Total Short-Term Investments
(cost $180,291,484)

 

  $ 180,291,484  
     

 

 

 
 

Total Investments
(cost $6,967,892,409)

    98.8   $ 9,081,533,010  
 

Other Assets and Liabilities

    1.2     107,357,246  
   

 

 

   

 

 

 
 

Total Net Assets

    100.0   $     9,188,890,256  
   

 

 

   

 

 

 
Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Banks

   $ 800,814,031      $ 800,814,031      $      $  

Capital Goods

     764,071,638        764,071,638                

Consumer Services

     192,634,438        192,634,438                

Diversified Financials

     414,535,939        414,535,939                

Energy

     343,040,782        343,040,782                

Food & Staples Retailing

     243,815,584        243,815,584                

Food, Beverage & Tobacco

     300,826,083        300,826,083                

Health Care Equipment & Services

     694,387,585        694,387,585                

Insurance

     364,099,928        364,099,928                

Materials

     370,608,751        370,608,751                

Media & Entertainment

     534,512,146        534,512,146                

Pharmaceuticals, Biotechnology & Life Sciences

     727,171,844        727,171,844                

Real Estate

     227,027,330        227,027,330                

Retailing

     426,727,183        426,727,183                

Semiconductors & Semiconductor Equipment

     459,441,985        459,441,985                

Software & Services

     589,942,188        589,942,188                

Technology Hardware & Equipment

     665,952,152        665,952,152                

Telecommunication Services

     312,225,300        312,225,300                

Transportation

     101,073,960        101,073,960                

Utilities

     368,332,679        368,332,679                

Short-Term Investments

     180,291,484               180,291,484         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     9,081,533,010      $     8,901,241,526      $     180,291,484      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  52  

 


The Hartford Equity Income Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount         Market Value  
Common Stocks - 98.4%  
      Banks - 7.4%  
  4,459,222    

Bank of America Corp.

    $ 105,683,561  
  838,969    

JP Morgan Chase & Co.

      82,252,521  
  342,202    

PNC Financial Services Group, Inc.

      38,285,560  
  1,129,431    

Truist Financial Corp.

      47,571,634  
     

 

 

 
        273,793,276  
     

 

 

 
      Capital Goods - 13.1%  
  341,505    

Caterpillar, Inc.

      53,633,360  
  373,777    

Deere & Co.

      84,439,962  
  760,652    

Eaton Corp. plc

      78,948,071  
  353,250    

General Dynamics Corp.

      46,392,323  
  366,196    

Honeywell International, Inc.

      60,404,030  
  165,491    

Lockheed Martin Corp.

      57,943,364  
  917,545    

Raytheon Technologies Corp.

      49,841,044  
  380,744    

Trane Technologies plc

      50,543,766  
     

 

 

 
        482,145,920  
     

 

 

 
      Consumer Durables & Apparel - 1.1%  
  603,748    

VF Corp.

      40,571,866  
     

 

 

 
      Consumer Services - 1.2%  
  216,343    

McDonald’s Corp.

      46,081,059  
     

 

 

 
      Diversified Financials - 4.4%  
  126,934    

BlackRock, Inc.

      76,060,122  
  738,199    

Blackstone Group, Inc. Class A

      37,219,994  
  993,000    

Morgan Stanley

      47,812,950  
     

 

 

 
        161,093,066  
     

 

 

 
      Energy - 3.3%  
  728,361    

ConocoPhillips

      20,845,692  
  967,131    

Kinder Morgan, Inc.

      11,508,859  
  634,066    

Phillips 66

      29,585,520  
  213,272    

Pioneer Natural Resources Co.

      16,967,920  
  1,047,727    

TC Energy Corp.

      41,239,063  
     

 

 

 
        120,147,054  
     

 

 

 
      Food, Beverage & Tobacco - 8.3%  
  1,235,343    

Archer-Daniels-Midland Co.

      57,122,260  
  578,702    

Coca-Cola Co.

      27,812,418  
  617,000    

Kellogg Co.

      38,803,130  
  1,285,896    

Mondelez International, Inc. Class A

      68,306,796  
  301,535    

PepsiCo., Inc.

      40,191,600  
  1,027,862    

Philip Morris International, Inc.

      72,998,759  
     

 

 

 
        305,234,963  
     

 

 

 
      Health Care Equipment & Services - 5.8%  
  1,008,433    

Medtronic plc

      101,418,107  
  369,798    

UnitedHealth Group, Inc.

      112,840,161  
     

 

 

 
        214,258,268  
     

 

 

 
      Household & Personal Products - 2.4%  
  352,518    

Procter & Gamble Co.

      48,330,218  
  697,368    

Unilever N.V.

      39,443,134  
     

 

 

 
        87,773,352  
     

 

 

 
      Insurance - 6.4%  
  556,853    

Chubb Ltd.

      72,340,773  
  1,746,885    

MetLife, Inc.

      66,119,597  
  866,293    

Progressive Corp.

      79,612,327  
  165,591    

Travelers Cos., Inc.

      19,988,490  
        238,061,187  
     

 

 

 
      Materials - 2.8%  
     

 

 

 
  463,054    

Celanese Corp.

      52,561,260  
  403,638    

PPG Industries, Inc.

      52,359,921  
     

 

 

 
        104,921,181  
     

 

 

 
      Media & Entertainment - 3.0%  
  2,664,661    

Comcast Corp. Class A

      112,555,281  
     

 

 

 
Shares or Principal Amount         Market Value  
Common Stocks - 98.4% - (continued)  
      Pharmaceuticals, Biotechnology & Life Sciences - 11.2%  
  848,778    

AstraZeneca plc ADR

    $ 42,574,704  
  247,319    

Eli Lilly & Co.

      32,265,237  
  857,792    

Johnson & Johnson

      117,611,861  
  422,175    

Merck & Co., Inc.

      31,751,782  
  519,062    

Novartis AG

      40,446,650  
  2,973,945    

Pfizer, Inc.

      105,515,568  
  131,990    

Roche Holding AG

      42,412,524  
     

 

 

 
        412,578,326  
     

 

 

 
      Real Estate - 2.7%  
  640,023    

Crown Castle International Corp. REIT

      99,971,593  
     

 

 

 
      Retailing - 2.7%  
  189,401    

Home Depot, Inc.

      50,515,141  
  301,219    

Lowe’s Cos., Inc.

      47,622,724  
     

 

 

 
        98,137,865  
     

 

 

 
      Semiconductors & Semiconductor Equipment - 3.4%  
  387,990    

Analog Devices, Inc.

      45,988,455  
  981,569    

Intel Corp.

      43,463,875  
  186,663    

KLA Corp.

      36,806,210  
     

 

 

 
        126,258,540  
     

 

 

 
      Software & Services - 1.2%  
  289,987    

Automatic Data Processing, Inc.

      45,806,346  
     

 

 

 
      Technology Hardware & Equipment - 6.1%  
  2,509,470    

Cisco Systems, Inc.

      90,089,973  
  2,123,830    

Corning, Inc.

      67,898,845  
  676,741    

TE Connectivity Ltd.

      65,562,668  
     

 

 

 
        223,551,486  
     

 

 

 
      Telecommunication Services - 2.4%  
  1,551,010    

Verizon Communications, Inc.

      88,392,060  
     

 

 

 
      Transportation - 1.9%  
  405,064    

Union Pacific Corp.

      71,773,290  
     

 

 

 
      Utilities - 7.6%  
  511,895    

American Electric Power Co., Inc.

      46,034,717  
  765,300    

Dominion Energy, Inc.

      61,484,202  
  419,431    

Duke Energy Corp.

      38,633,789  
  175,514    

Eversource Energy

      15,317,107  
  1,251,621    

Exelon Corp.

      49,927,162  
  108,799    

FirstEnergy Corp.

      3,233,506  
  398,646    

Sempra Energy

      49,974,263  
  490,529    

UGI Corp.

      15,863,708  
     

 

 

 
        280,468,454  
     

 

 

 
 

Total Common Stocks
(cost $3,039,966,216)

    $ 3,633,574,433  
     

 

 

 
Short-Term Investments - 0.7%  
      Repurchase Agreements - 0.7%  
  24,913,579    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $24,913,704; collateralized by U.S. Treasury Note at 0.125%, maturing 07/15/2030, with a market value of $25,411,892.

    $ 24,913,579  
     

 

 

 
 

Total Short-Term Investments
(cost $24,913,579)

 

  $ 24,913,579  
     

 

 

 
 

Total Investments
(cost $3,064,879,795)

    99.1   $ 3,658,488,012  
 

Other Assets and Liabilities

    0.9     33,557,175  
   

 

 

   

 

 

 
 

Total Net Assets

    100.0   $     3,692,045,187  
   

 

 

   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  53  

 


The Hartford Equity Income Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Banks

   $ 273,793,276      $ 273,793,276      $      $  

Capital Goods

     482,145,920        482,145,920                

Consumer Durables & Apparel

     40,571,866        40,571,866                

Consumer Services

     46,081,059        46,081,059                

Diversified Financials

     161,093,066        161,093,066                

Energy

     120,147,054        120,147,054                

Food, Beverage & Tobacco

     305,234,963        305,234,963                

Health Care Equipment & Services

     214,258,268        214,258,268                

Household & Personal Products

     87,773,352        87,773,352                

Insurance

     238,061,187        238,061,187                

Materials

     104,921,181        104,921,181                

Media & Entertainment

     112,555,281        112,555,281                

Pharmaceuticals, Biotechnology & Life Sciences

     412,578,326        329,719,152        82,859,174         

Real Estate

     99,971,593        99,971,593                

Retailing

     98,137,865        98,137,865                

Semiconductors & Semiconductor Equipment

     126,258,540        126,258,540                

Software & Services

     45,806,346        45,806,346                

Technology Hardware & Equipment

     223,551,486        223,551,486                

Telecommunication Services

     88,392,060        88,392,060                

Transportation

     71,773,290        71,773,290                

Utilities

     280,468,454        280,468,454                

Short-Term Investments

     24,913,579               24,913,579         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     3,658,488,012      $     3,550,715,259      $     107,772,753      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  54  

 


The Hartford Growth Opportunities Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount           Market Value  
Common Stocks - 95.5%  
       Automobiles & Components - 1.0%  
  732,036     

Thor Industries, Inc.

      $ 61,915,605  
        

 

 

 
       Capital Goods - 0.7%  
  732,267     

Fortive Corp.

        45,107,647  
        

 

 

 
       Commercial & Professional Services - 3.0%  
  603,830     

Copart, Inc.*

        66,638,679  
  150,524     

CoStar Group, Inc.*

        123,973,072  
        

 

 

 
           190,611,751  
        

 

 

 
       Consumer Durables & Apparel - 2.9%  
  1,242,438     

Peloton Interactive, Inc. Class A*

        136,929,092  
  566,561     

Polaris, Inc.

        51,477,733  
        

 

 

 
           188,406,825  
        

 

 

 
       Consumer Services - 6.5%  
  836,098     

Chegg, Inc.*

        61,403,037  
  3,091,182     

DraftKings, Inc. Class A*(1)

        109,427,843  
  894,529     

McDonald’s Corp.

        190,534,677  
  974,526     

Penn National Gaming, Inc.*

        52,604,913  
        

 

 

 
           413,970,470  
        

 

 

 
       Diversified Financials - 0.8%  
  1,001,559     

Blackstone Group, Inc. Class A

        50,498,605  
        

 

 

 
       Food, Beverage & Tobacco - 2.9%  
  596,241     

Constellation Brands, Inc. Class A

        98,516,900  
  1,116,796     

Monster Beverage Corp.*

        85,513,070  
        

 

 

 
           184,029,970  
        

 

 

 
       Health Care Equipment & Services - 9.4%  
  272,887     

ABIOMED, Inc.*

        68,734,778  
  346,853     

Align Technology, Inc.*

        147,787,126  
  470,909     

Danaher Corp.

        108,092,452  
  278,498     

DexCom, Inc.*

        89,002,391  
  463,746     

Insulet Corp.*

        103,067,548  
  126,769     

Intuitive Surgical, Inc.*

        84,565,065  
        

 

 

 
           601,249,360  
        

 

 

 
       Media & Entertainment - 8.4%  
  568,305     

Facebook, Inc. Class A*

        149,526,729  
  903,843     

Match Group, Inc.*

        105,550,785  
  3,536,424     

Snap, Inc. Class A*

        139,299,741  
  336,883     

Spotify Technology S.A.*

        80,814,863  
  1,483,989     

Twitter, Inc.*

        61,377,785  
        

 

 

 
           536,569,903  
        

 

 

 
       Pharmaceuticals, Biotechnology & Life Sciences - 8.1%  
  209,083     

Ascendis Pharma A/S ADR*

        34,153,708  
  1,024,331     

AstraZeneca plc ADR

        51,380,443  
  105,562     

Biogen, Inc.*

        26,609,013  
  2,093,739     

Elanco Animal Health, Inc.*

        64,926,846  
  1,050,168     

Exact Sciences Corp.*

        130,042,303  
  557,100     

Galapagos N.V.*

        65,117,839  
  16,322     

Galapagos N.V. ADR*(1)

        1,901,187  
  121,360     

Reata Pharmaceuticals, Inc. Class A*

        14,163,926  
  282,431     

Thermo Fisher Scientific, Inc.

        133,623,755  
        

 

 

 
           521,919,020  
        

 

 

 
       Real Estate - 0.0%  
  29,564     

We Co. Class A(2)(3)(4)

        150,185  
        

 

 

 
       Retailing - 16.5%  
  221,173     

Amazon.com, Inc.*

        671,514,404  
  65,617     

Booking Holdings, Inc.*

        106,463,582  
  123,196     

JAND, Inc. Class A*(2)(3)(4)

        2,725,095  
  883,826     

Lowe’s Cos., Inc.

        139,732,891  
  2,591,786     

TJX Cos., Inc.

        131,662,729  
  171,581     

Tory Burch LLC*(2)(3)(4)

        7,079,431  
        

 

 

 
           1,059,178,132  
        

 

 

 
Shares or Principal Amount           Market Value  
Common Stocks - 95.5% - (continued)  
       Semiconductors & Semiconductor Equipment - 8.3%  
  2,084,117     

Advanced Micro Devices, Inc.*

        156,913,169  
  2,397,680     

Marvell Technology Group Ltd.

        89,936,977  
  565,075     

NVIDIA Corp.

        283,306,002  
        

 

 

 
           530,156,148  
        

 

 

 
       Software & Services - 16.4%  
  899,936     

2U, Inc.*

        33,162,642  
  157,623     

Fair Isaac Corp.*

        61,701,523  
  1,043,152     

GoDaddy, Inc. Class A*

        73,792,573  
  729,119     

Guidewire Software, Inc.*

        70,075,627  
  731,597     

Leidos Holdings, Inc.

        60,722,551  
  7,292,874     

Multiplan Corp.*(1)

        53,237,980  
  224,380     

Paycom Software, Inc.*

        81,694,514  
  273,856     

RingCentral, Inc. Class A*

        70,747,959  
  801,445     

Splunk, Inc.*

        158,718,168  
  1,181,847     

Square, Inc. Class A*

        183,044,463  
  958,717     

Workday, Inc. Class A*

        201,445,616  
        

 

 

 
                   1,048,343,616  
        

 

 

 
       Technology Hardware & Equipment - 8.7%  
  5,043,296     

Apple, Inc.

        549,013,203  
  292,906     

Vontier Corp.*

        8,418,118  
        

 

 

 
           557,431,321  
        

 

 

 
       Transportation - 1.9%  
  266,369     

FedEx Corp.

        69,114,764  
  1,549,907     

Uber Technologies, Inc.*

        51,782,393  
        

 

 

 
           120,897,157  
        

 

 

 
  

Total Common Stocks
(cost $4,550,642,269)

      $ 6,110,435,715  
        

 

 

 
Exchange-Traded Funds - 0.4%  
       Other Investment Pools & Funds - 0.4%  
  129,900     

iShares Russell 1000 Growth ETF

        27,224,442  
        

 

 

 
  

Total Exchange-Traded Funds
(cost $27,713,295)

      $ 27,224,442  
        

 

 

 
Convertible Preferred Stocks - 1.4%  
       Commercial & Professional Services - 0.1%  
  470,535     

Rubicon Global Holdings LLC Series C*(2)(3)(4)

      $ 7,542,676  
        

 

 

 
  

Real Estate - 0.1%

 

  404,267     

We Co. Series D1*(2)(3)(4)

        3,165,411  
  317,638     

We Co. Series D2*(2)(3)(4)

        2,487,105  
        

 

 

 
           5,652,516  
        

 

 

 
       Retailing - 0.9%  
  4,434,460     

Coupang LLC *(2)(3)(4)

        38,047,667  
  272,032     

Honest Co., Inc. Series C*(2)(3)(4)

 

     9,591,849  
  275,096     

JAND, Inc. Series D*(2)(3)(4)

        6,167,652  
        

 

 

 
           53,807,168  
        

 

 

 
       Software & Services - 0.3%  
  5,668,755     

Essence Group Holdings Corp. Series 3*(2)(3)(4)

        13,151,511  
  743,470     

Lookout, Inc. Series F*(2)(3)(4)

        6,453,320  
        

 

 

 
           19,604,831  
        

 

 

 
  

Total Convertible Preferred Stocks
(cost $63,194,426)

      $ 86,607,191  
        

 

 

 
Escrows - 0.0%(5)  
       Consumer Durables & Apparel - 0.0%  
  923,832     

One Kings Lane, Inc.*(2)(3)(4)

      $ 147,813  
        

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  55  

 


The Hartford Growth Opportunities Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount           Market Value  
Escrows - 0.0%(5) - (continued)  
       Software & Services - 0.0%  
  566,228     

Veracode, Inc.*(2)(3)(4)

      $ 379,939  
        

 

 

 
  

Total Escrows
(cost $ - )

 

   $ 527,752  
        

 

 

 
  

Total Long-Term Investments
(cost $4,641,549,990)

      $ 6,224,795,100  
        

 

 

 
Short-Term Investments - 2.1%  
       Repurchase Agreements - 1.7%  
  106,171,930     

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $106,172,461; collateralized by U.S. Treasury Note at 2.875%, maturing 05/15/2028, with a market value of $17,394,176

      $ 106,171,930  
        

 

 

 
       Securities Lending Collateral - 0.4%  
  26,797,937     

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(6)

 

     26,797,937  
  27,046     

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(6)

 

     27,046  
        

 

 

 
     26,824,983  
        

 

 

 
  

Total Short-Term Investments
(cost $132,996,913)

 

   $ 132,996,913  
        

 

 

 
  

Total Investments
(cost $4,774,546,903)

     99.4    $ 6,357,792,013  
  

Other Assets and Liabilities

     0.6      37,315,215  
     

 

 

    

 

 

 
  

Total Net Assets

     100.0    $     6,395,107,228  
     

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Investment valued using significant unobservable inputs.

 

(3) 

These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At October 31, 2020, the aggregate fair value of these securities was $97,089,654, which represented 1.5% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(4) 

Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $97,089,654 or 1.5% of net assets.

 

Period
Acquired
   

Security Name

  Shares/
Par Value
    Total Cost     Market Value  
  11/2014     Coupang LLC Convertible Preferred     4,434,460     $ 13,805,010     $ 38,047,667  
  05/2014     Essence Group Holdings Corp. Series 3 Convertible Preferred     5,668,755       8,964,002       13,151,511  
  08/2014     Honest Co., Inc. Series C Convertible Preferred     272,032       7,360,452       9,591,849  
  04/2015     JAND, Inc. Class A     123,196       1,414,943       2,725,095  
  04/2015     JAND, Inc. Series D Convertible Preferred     275,096       3,159,560       6,167,652  
  07/2014     Lookout, Inc. Series F Convertible Preferred     743,470       8,492,732       6,453,320  
  08/2014     One Kings Lane, Inc.     923,832             147,813  
  09/2015     Rubicon Global Holdings LLC Series C Convertible Preferred     470,535       9,392,114       7,542,676  
  11/2013     Tory Burch LLC     171,581       13,447,917       7,079,431  
  08/2014     Veracode, Inc.     566,228             379,939  
  12/2014     We Co. Class A     29,564       492,275       150,185  
  12/2014     We Co. Series D1 Convertible Preferred     404,267       6,731,515       3,165,411  
  12/2014     We Co. Series D2 Convertible Preferred     317,638       5,289,041       2,487,105  
     

 

 

   

 

 

 
    $     78,549,561     $     97,089,654  
     

 

 

   

 

 

 

 

(5) 

Share amount represents shares of the issuer previously held that resulted in receipt of the escrow.

 

(6) 

Current yield as of period end.

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  56  

 


The Hartford Growth Opportunities Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Automobiles & Components

   $ 61,915,605      $ 61,915,605      $      $  

Capital Goods

     45,107,647        45,107,647                

Commercial & Professional Services

     190,611,751        190,611,751                

Consumer Durables & Apparel

     188,406,825        188,406,825                

Consumer Services

     413,970,470        413,970,470                

Diversified Financials

     50,498,605        50,498,605                

Food, Beverage & Tobacco

     184,029,970        184,029,970                

Health Care Equipment & Services

     601,249,360        601,249,360                

Media & Entertainment

     536,569,903        536,569,903                

Pharmaceuticals, Biotechnology & Life Sciences

     521,919,020        456,801,181        65,117,839         

Real Estate

     150,185                      150,185  

Retailing

     1,059,178,132        1,049,373,606               9,804,526  

Semiconductors & Semiconductor Equipment

     530,156,148        530,156,148                

Software & Services

     1,048,343,616        1,048,343,616                

Technology Hardware & Equipment

     557,431,321        557,431,321                

Transportation

     120,897,157        120,897,157                

Exchange-Traded Funds

     27,224,442        27,224,442                

Convertible Preferred Stocks

     86,607,191                      86,607,191  

Escrows

     527,752                      527,752  

Short-Term Investments

     132,996,913        26,824,983        106,171,930         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     6,357,792,013      $     6,089,412,590      $     171,289,769      $     97,089,654  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, investments valued at $15,400,659 were transferred out of Level 3 due to the initiation of a vendor providing prices that are based on market activity which has been determined to be significant observable input and there were no transfers in to Level 3.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the year ended October 31, 2020:

 

     Common
Stocks
    Convertible
Preferred
Stocks
    Escrows     Total  

Beginning balance

   $ 81,651,451     $ 86,994,121     $ 576,266     $     169,221,838  

Sales

         (56,866,249         (10,320,039         (193,442     (67,379,730

Total realized gain/(loss)

     9,496,646       (2,204,412     193,442       7,485,676  

Net change in unrealized appreciation/(depreciation)

     (8,926,478     12,137,521       (48,514     3,162,529  

Transfer out of Level 3

     (15,400,659                 (15,400,659
  

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 9,954,711     $ 86,607,191     $ 527,752     $ 97,089,654  
  

 

 

   

 

 

   

 

 

   

 

 

 

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at October 31, 2020 was $8,405,862.

 

The accompanying notes are an integral part of these financial statements.

 

 

  57  

 


The Hartford Healthcare Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount         Market Value  
Common Stocks - 99.4%  
      Biotechnology - 22.0%  
  216,775    

89bio, Inc.*

    $ 5,020,509  
  155,045    

Akero Therapeutics, Inc.*

      4,116,445  
  29,600    

Akouos, Inc.*

      574,536  
  692,439    

Alkermes plc*

      11,252,134  
  114,584    

Alnylam Pharmaceuticals, Inc.*

      14,090,395  
  25,600    

ALX Oncology Holdings, Inc.*

      1,011,456  
  297,250    

Apellis Pharmaceuticals, Inc.*

      9,482,275  
  165,065    

Arena Pharmaceuticals, Inc.*

      14,149,372  
  18,934    

Argenx SE ADR*

      4,698,093  
  29,365    

Ascendis Pharma A/S ADR*

      4,796,773  
  168,481    

Assembly Biosciences, Inc.*

      2,483,410  
  83,621    

Avidity Biosciences, Inc.*

      2,067,947  
  25,611    

Biogen, Inc.*

      6,455,765  
  136,952    

Biohaven Pharmaceutical Holding Co., Ltd.*

      10,608,302  
  42,586    

Black Diamond Therapeutics, Inc.*

      1,341,885  
  253,262    

Coherus Biosciences, Inc.*

      4,221,878  
  189,436    

Constellation Pharmaceuticals, Inc.*

      3,716,734  
  220,162    

Cytokinetics, Inc.*

      3,383,890  
  72,670    

Exact Sciences Corp.*

      8,998,726  
  57,546    

Forma Therapeutics Holdings, Inc.*

      2,481,384  
  276,434    

Freeline Therapeutics Holdings plc ADR*(1)

      4,785,073  
  342,856    

G1 Therapeutics, Inc.*

      3,767,987  
  35,309    

Galapagos N.V.*

      4,127,169  
  54,185    

Generation Bio Co.*

      1,400,140  
  20,330    

Genmab A/S*

      6,790,725  
  151,767    

Genus plc

      8,065,610  
  196,488    

Global Blood Therapeutics, Inc.*

      10,390,285  
  404,265    

GlycoMimetics, Inc.*

      1,131,942  
  945,880    

ImmunoGen, Inc.*

      5,334,763  
  869,863    

Ironwood Pharmaceuticals, Inc.*

      8,594,246  
  96,948    

Kodiak Sciences, Inc.*

      8,803,848  
  102,565    

Kymera Therapeutics, Inc.*

      3,691,314  
  33,407    

Legend Biotech Corp. ADR*

      864,239  
  85,491    

Madrigal Pharmaceuticals, Inc.*(1)

      10,878,730  
  50,956    

Mirati Therapeutics, Inc.*

      11,064,586  
  219,419    

Myovant Sciences Ltd.*

      3,027,982  
  509,405    

Nurix Therapeutics, Inc.*

      12,882,852  
  183,040    

Oyster Point Pharma, Inc.*(1)

      3,629,683  
  549,547    

PhaseBio Pharmaceuticals, Inc.*(1)

      1,500,263  
  135,792    

Radius Health, Inc.*

      1,820,971  
  16,376    

Regeneron Pharmaceuticals, Inc.*

      8,901,339  
  27,000    

Relay Therapeutics, Inc.*

      997,380  
  1,408,948    

Rigel Pharmaceuticals, Inc.*

      3,494,191  
  123,869    

Seagen, Inc.*

      20,661,349  
  679,486    

Syndax Pharmaceuticals, Inc.*

      11,829,851  
  70,630    

Turning Point Therapeutics, Inc.*

      6,511,380  
  23,748    

Twist Bioscience Corp.*

      1,820,047  
  221,439    

UroGen Pharma Ltd.*(1)

      4,986,806  
  81,254    

Vertex Pharmaceuticals, Inc.*

      16,930,083  
  205,652    

Zai Lab Ltd. ADR*

      16,873,747  
  62,032    

Zealand Pharma A/S ADR*(1)

      2,097,302  
     

 

 

 
        322,607,792  
     

 

 

 
      Health Care Distributors - 0.5%  
  301,300    

Owens & Minor, Inc.

      7,568,656  
     

 

 

 
      Health Care Equipment - 23.3%  
  498,241    

Abbott Laboratories

      52,370,112  
  302,339    

Baxter International, Inc.

      23,452,436  
  166,707    

Becton Dickinson and Co.

      38,530,989  
  1,233,406    

Boston Scientific Corp.*

      42,268,824  
  257,011    

Danaher Corp.

      58,994,305  
  490,812    

Edwards Lifesciences Corp.*

      35,186,312  
  35,100    

Everest Medicines Ltd.*(2)

      262,373  
  224,303    

Hologic, Inc.*

      15,436,532  
  167,460    

Integra LifeSciences Holdings Corp.*

      7,384,986  
  37,600    

Intuitive Surgical, Inc.*

      25,082,208  
Shares or Principal Amount         Market Value  
Common Stocks - 99.4% - (continued)  
      Health Care Equipment - 23.3% - (continued)  
  19,465    

Masimo Corp.*

    $ 4,356,656  
  126,923    

NuVasive, Inc.*

      5,639,189  
  752,419    

Smith & Nephew plc

      13,065,101  
  60,800    

Teleflex, Inc.

      19,348,384  
     

 

 

 
        341,378,407  
     

 

 

 
      Health Care Facilities - 2.9%  
  258,267    

Acadia Healthcare Co., Inc.*

      9,207,219  
  178,056    

Encompass Health Corp.

      10,916,613  
  185,853    

HCA Healthcare, Inc.

      23,034,621  
     

 

 

 
        43,158,453  
     

 

 

 
      Health Care Services - 2.3%  
  39,839    

Amedisys, Inc.*

      10,318,301  
  152,431    

Fresenius SE & Co. KGaA

      5,654,189  
  45,143    

LHC Group, Inc.*

      9,775,717  
  401,885    

R1 RCM, Inc.*

      7,201,779  
     

 

 

 
        32,949,986  
     

 

 

 
      Health Care Supplies - 1.2%  
  3,019,350    

ConvaTec Group plc(2)

      7,068,091  
  40,356    

Quidel Corp.*

      10,827,111  
     

 

 

 
        17,895,202  
     

 

 

 
      Integrated Telecommunication Services - 0.1%  
  76,796    

Therapeutics Acquisition Corp. Class A*

      1,013,707  
     

 

 

 
      Life Sciences Tools & Services - 12.2%  
  3,400    

Berkeley Lights, Inc.*

      246,738  
  35,540    

Bio-Techne Corp.

      8,970,651  
  78,442    

ICON plc*

      14,143,093  
  222,154    

NanoString Technologies, Inc.*

      8,141,944  
  207,466    

NeoGenomics, Inc.*

      8,138,891  
  546,005    

PPD, Inc.*

      17,952,644  
  131,336    

PRA Health Sciences, Inc.*

      12,797,380  
  39,815    

Repligen Corp.*

      6,631,985  
  26,444    

Tecan Group AG

      12,548,427  
  150,081    

Thermo Fisher Scientific, Inc.

      71,006,323  
  609,663    

WuXi AppTec Co., Ltd. Class H(2)

      9,747,475  
  284,500    

Wuxi Biologics Cayman, Inc.*(2)

      7,989,815  
     

 

 

 
        178,315,366  
     

 

 

 
      Managed Health Care - 11.4%  
  242,922    

Centene Corp.*

      14,356,690  
  61,335    

Humana, Inc.

      24,489,839  
  41,806    

Molina Healthcare, Inc.*

      7,795,565  
  480,000    

Notre Dame Intermedica Participacoes S.A.

      5,500,222  
  377,984    

UnitedHealth Group, Inc.

      115,338,038  
     

 

 

 
        167,480,354  
     

 

 

 
      Pharmaceuticals - 23.5%  
  527,707    

Amneal Pharmaceuticals, Inc.*

      2,195,261  
  244,300    

Astellas Pharma, Inc.

      3,350,070  
  744,642    

AstraZeneca plc ADR

      37,351,243  
  917,491    

Bristol-Myers Squibb Co.

      53,627,349  
  703,725    

Daiichi Sankyo Co., Ltd.

      18,573,861  
  220,895    

Eisai Co., Ltd.

      17,175,365  
  200,469    

Elanco Animal Health, Inc.*

      6,216,544  
  364,133    

Eli Lilly & Co.

      47,504,791  
  11,900    

Harmony Biosciences Holdings, Inc.*(1)

      462,910  
  49,405    

Hikma Pharmaceuticals plc

      1,606,328  
  101,778    

Hutchison China MediTech Ltd. ADR*

      2,996,344  
  121,237    

Laboratorios Farmaceuticos Rovi S.A.*

      4,320,680  
  586,193    

Mylan N.V.*(1)

      8,523,246  
  41,000    

Nippon Shinyaku Co., Ltd.

      2,929,701  
  89,169    

Novartis AG

      6,948,278  
  267,306    

Odonate Therapeutics, Inc.*

 

    3,851,879  
  285,245    

Ono Pharmaceutical Co., Ltd.

 

    8,136,674  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  58  

 


The Hartford Healthcare Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount         Market Value  
Common Stocks - 99.4% - (continued)  
      Pharmaceuticals - 23.5% - (continued)  
  2,422,706    

Pfizer, Inc.

 

  $ 85,957,609  
  271,302    

Revance Therapeutics, Inc.*

 

    7,021,296  
  173,777    

Royalty Pharma plc Class A

 

    6,377,616  
  77,170    

Takeda Pharmaceutical Co., Ltd.

 

    2,384,753  
  186,443    

Theravance Biopharma, Inc.*

 

    3,525,637  
  243,310    

Tricida, Inc.*

 

    1,369,835  
  111,296    

UCB S.A.

 

    10,992,877  
  207,352    

WaVe Life Sciences Ltd.*

 

    1,465,979  
     

 

 

 
    344,866,126  
     

 

 

 
 

Total Common Stocks
(cost $1,172,630,895)

 

  $ 1,457,234,049  
     

 

 

 
Short-Term Investments - 2.1%  
      Repurchase Agreements - 1.2%  
  17,074,447    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.06%, due on 11/02/2020 with a maturity value of $17,074.532; collateralized by U.S. Treasury Note 0.75%, maturing 07/15/2028, with a market value of $17,415,982

 

  $ 17,074,447  
     

 

 

 
      Securities Lending Collateral - 0.9%  
  13,478,185    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(3)

 

    13,478,185  
  13,603    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(3)

 

    13,603  
     

 

 

 
    13,491,788  
     

 

 

 
 

Total Short-Term Investments
(cost $30,566,235)

 

  $ 30,566,235  
     

 

 

 
 

Total Investments
(cost $1,203,197,130)

    101.5   $ 1,487,800,284  
 

Other Assets and Liabilities

    (1.5 )%      (22,131,696
   

 

 

   

 

 

 
 

Total Net Assets

    100.0   $     1,465,668,588  
   

 

 

   

 

 

 
Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At October 31, 2020, the aggregate value of these securities was $25,067,754, representing 1.7% of net assets.

 

(3) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description    Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Biotechnology

   $ 322,607,792      $ 303,624,288      $ 18,983,504      $  

Health Care Distributors

     7,568,656        7,568,656                

Health Care Equipment

     341,378,407        328,313,306        13,065,101         

Health Care Facilities

     43,158,453        43,158,453                

Health Care Services

     32,949,986        27,295,797        5,654,189         

Health Care Supplies

     17,895,202        10,827,111        7,068,091         

Integrated Telecommunication Services

     1,013,707        1,013,707                

Life Sciences Tools & Services

     178,315,366        148,029,649        30,285,717         

Managed Health Care

     167,480,354        167,480,354                

Pharmaceuticals

     344,866,126        272,768,219        72,097,907         

Short-Term Investments

     30,566,235        13,491,788        17,074,447         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,487,800,284      $     1,323,571,328      $     164,228,956      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  59  

 


The Hartford MidCap Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount          Market Value  
Common Stocks - 100.1%  
      Banks - 5.0%  
  1,315,404    

Cullen/Frost Bankers, Inc.

     $ 92,433,439  
  230,121    

First Citizens BancShares, Inc. Class A

       106,476,987  
  1,364,249    

First Republic Bank

       172,086,369  
  980,361    

M&T Bank Corp.

       101,545,792  
  1,856,626    

Prosperity Bancshares, Inc.

       102,318,659  
  1,228,460    

South State Corp.

       75,427,444  
      

 

 

 
         650,288,690  
      

 

 

 
      Capital Goods - 10.4%  
  1,103,519    

Axon Enterprise, Inc.*

       109,138,029  
  2,247,237    

Fastenal Co.

       97,148,056  
  1,113,091    

Graco, Inc.

       68,900,333  
  796,382    

HEICO Corp. Class A

       74,461,717  
  1,271,296    

IDEX Corp.

       216,616,126  
  7,780,734    

Ingersoll Rand, Inc.*

       271,858,846  
  780,929    

Lennox International, Inc.

       212,147,172  
  1,485,445    

Lincoln Electric Holdings, Inc.

       151,248,010  
  287,697    

Middleby Corp.*

       28,637,359  
  525,873    

Watsco, Inc.

       117,869,174  
      

 

 

 
         1,348,024,822  
      

 

 

 
      Commercial & Professional Services - 4.2%  
  6,803,619    

GFL Environmental, Inc.(1)

       130,221,268  
  1,637,761    

Healthcare Services Group, Inc.

       37,471,972  
  3,744,255    

IAA, Inc.*

       211,887,390  
  11,427,385    

KAR Auction Services, Inc.(2)

       166,382,725  
      

 

 

 
         545,963,355  
      

 

 

 
      Consumer Durables & Apparel - 5.6%  
  1,453,283    

Carter’s, Inc.

       118,369,900  
  58,191    

NVR, Inc.*

       230,034,260  
  2,145,817    

PVH Corp.

       125,079,673  
  6,687,439    

Under Armour, Inc. Class C*

       81,787,379  
  3,445,549    

YETI Holdings, Inc.*

       170,485,765  
      

 

 

 
         725,756,977  
      

 

 

 
      Consumer Services - 1.8%  
  2,019,947    

Choice Hotels International, Inc.

       176,442,370  
  1,002,827    

Hyatt Hotels Corp. Class A

       55,295,881  
      

 

 

 
         231,738,251  
      

 

 

 
      Diversified Financials - 1.3%  
  381,535    

Credit Acceptance Corp.*(1)

       113,743,214  
  845,828    

Hamilton Lane, Inc. Class A

       58,954,212  
      

 

 

 
         172,697,426  
      

 

 

 
      Energy - 0.5%  
  3,311,928    

Cabot Oil & Gas Corp.

       58,919,199  
      

 

 

 
      Food & Staples Retailing - 0.8%  
  3,088,077    

Performance Food Group Co.*

       103,790,268  
      

 

 

 
      Food, Beverage & Tobacco - 1.1%  
  2,284,599    

Lamb Weston Holdings, Inc.

       144,957,807  
      

 

 

 
      Health Care Equipment & Services - 10.8%  
  778,660    

Amedisys, Inc.*

       201,672,940  
  3,197,849    

Encompass Health Corp.

       196,060,122  
  2,542,201    

Hill-Rom Holdings, Inc.

       231,518,245  
  3,192,399    

Integra LifeSciences Holdings Corp.*

       140,784,796  
  845,044    

LHC Group, Inc.*

       182,994,278  
  740,320    

Molina Healthcare, Inc.*

       138,047,471  
  2,757,811    

NuVasive, Inc.*(2)

       122,529,543  
  558,302    

Tandem Diabetes Care, Inc.*

       60,854,918  
  390,458    

Teleflex, Inc.

       124,255,449  
      

 

 

 
         1,398,717,762  
      

 

 

 
      Insurance - 4.2%  
  126,796    

Alleghany Corp.

       69,348,536  
  320,489    

Erie Indemnity Co. Class A

       74,632,273  
Shares or Principal Amount          Market Value  
Common Stocks - 100.1% - (continued)  
      Insurance - 4.2% - (continued)  
  2,143,274    

Fidelity National Financial, Inc.

     $ 67,063,044  
  181,795    

Markel Corp.*

       169,578,376  
  99,951    

White Mountains Insurance Group Ltd.

       90,788,492  
  1,249,278    

WR Berkley Corp.

       75,106,593  
      

 

 

 
         546,517,314  
      

 

 

 
      Materials - 2.6%  
  1,007,558    

Ball Corp.

       89,672,662  
  7,857,103    

Element Solutions, Inc.*

       92,085,247  
  575,489    

Packaging Corp. of America

       65,887,736  
  2,521,502    

Silgan Holdings, Inc.

       86,865,744  
      

 

 

 
         334,511,389  
      

 

 

 
      Media & Entertainment - 4.4%  
  100,177    

Cable One, Inc.

       173,492,539  
  3,577,072    

Cargurus, Inc.*

       71,291,045  
  888,714    

Roku, Inc.*

       179,875,714  
  15,878,351    

Zynga, Inc. Class A*

       142,746,375  
      

 

 

 
         567,405,673  
      

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 7.4%  
  2,475,313    

Apellis Pharmaceuticals, Inc.*

       78,962,485  
  2,749,199    

ChemoCentryx, Inc.*

       131,961,552  
  2,204,314    

Iovance Biotherapeutics, Inc.*

       78,649,923  
  408,339    

Kodiak Sciences, Inc.*

       37,081,265  
  64,619    

Mettler-Toledo International, Inc.*

       64,483,946  
  1,627,920    

PRA Health Sciences, Inc.*

       158,624,525  
  3,557,068    

PTC Therapeutics, Inc.*(2)

       185,643,379  
  1,308,366    

Reata Pharmaceuticals, Inc. Class A*

       152,699,396  
  1,070,535    

Sage Therapeutics, Inc.*

       78,555,858  
      

 

 

 
         966,662,329  
      

 

 

 
      Real Estate - 4.8%  
  2,403,737    

Douglas Emmett, Inc. REIT

       56,728,193  
  2,726,259    

Equity Commonwealth REIT

       72,027,763  
  610,327    

Life Storage, Inc. REIT

       69,668,827  
  373,986    

PS Business Parks, Inc. REIT

       42,645,623  
  2,817,745    

Redfin Corp.*

       117,697,209  
  2,695,333    

Rexford Industrial Realty, Inc. REIT

       125,225,171  
  5,272,470    

STORE Capital Corp. REIT

       135,502,479  
      

 

 

 
         619,495,265  
      

 

 

 
      Retailing - 2.7%  
  1,495,741    

CarMax, Inc.*

       129,291,852  
  1,801,161    

Etsy, Inc.*

       219,003,166  
      

 

 

 
         348,295,018  
      

 

 

 
      Semiconductors & Semiconductor Equipment - 6.1%  
  2,735,257    

First Solar, Inc.*

       238,090,445  
  1,857,115    

MKS Instruments, Inc.

       201,292,695  
  619,618    

Monolithic Power Systems, Inc.

       198,029,913  
  1,487,857    

Silicon Laboratories, Inc.*

       152,445,828  
      

 

 

 
         789,858,881  
      

 

 

 
      Software & Services - 10.3%  
  931,039    

Aspen Technology, Inc.*

       102,237,393  
  1,148,166    

Black Knight, Inc.*

       100,981,200  
  1,809,127    

Blackbaud, Inc.

       89,262,326  
  7,798,088    

Genpact Ltd.

       268,020,284  
  1,499,544    

Guidewire Software, Inc.*

       144,121,174  
  273,859    

LiveRamp Holdings, Inc.*

       18,099,341  
  1,505,449    

Q2 Holdings, Inc.*

       137,357,167  
  1,339,244    

Science Applications International Corp.

       102,278,064  
  8,622,241    

Teradata Corp.*(2)

       158,390,567  
  1,729,394    

WEX, Inc.*

 

     218,854,811  
      

 

 

 
     1,339,602,327  
      

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  60  

 


The Hartford MidCap Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount          Market Value  
Common Stocks - 100.1% - (continued)  
      Technology Hardware & Equipment - 11.7%  
  1,258,937    

CDW Corp.

 

   $ 154,345,676  
  1,498,879    

Coherent, Inc.*(2)

 

     187,569,718  
  15,469,655    

CommScope Holding Co., Inc.*(2)

 

     137,679,930  
  1,504,059    

F5 Networks, Inc.*

 

     199,949,603  
  14,663,343    

Flex Ltd.*

 

     207,486,303  
  6,200,098    

II-VI, Inc.*(1)(2)

 

     281,918,456  
  2,762,739    

Lumentum Holdings, Inc.*

 

     228,450,888  
  3,682,285    

National Instruments Corp.

 

     115,181,875  
      

 

 

 
     1,512,582,449  
      

 

 

 
      Transportation - 1.9%  
  324,564    

AMERCO

 

     112,675,638  
  3,661,970    

Knight-Swift Transportation Holdings, Inc.

 

     139,118,241  
      

 

 

 
     251,793,879  
      

 

 

 
      Utilities - 2.5%  
  1,510,440    

Black Hills Corp.

 

     85,581,530  
  1,907,713    

NiSource, Inc.

 

     43,820,168  
  5,980,582    

UGI Corp.

 

     193,412,022  
      

 

 

 
     322,813,720  
      

 

 

 
 

Total Common Stocks
(cost $11,163,325,282)

 

   $ 12,980,392,801  
      

 

 

 
Short-Term Investments - 0.7%  
      Repurchase Agreements - 0.0%  
  824,405    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $824,409; collateralized by U.S. Treasury Note at 0.125%, maturing 07/15/2030, with a market value of $840,988.

 

   $ 824,405  
      

 

 

 
      Securities Lending Collateral - 0.7%  
  84,693,322    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(3)

 

     84,693,322  
  85,476    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(3)

 

     85,476  
      

 

 

 
     84,778,798  
      

 

 

 
 

Total Short-Term Investments
(cost $85,603,203)

 

   $ 85,603,203  
      

 

 

 
 

Total Investments
(cost $11,248,928,485)

    100.8    $ 13,065,996,004  
 

Other Assets and Liabilities

    (0.8 )%       (97,835,692
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     12,968,160,312  
   

 

 

    

 

 

 
Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Affiliated company—The Fund owns greater than 5% of the outstanding voting securities of this issuer.

 

(3) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  61  

 


 

 

The Hartford MidCap Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description    Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Banks

   $ 650,288,690      $ 650,288,690      $      $  

Capital Goods

     1,348,024,822        1,348,024,822                

Commercial & Professional Services

     545,963,355        545,963,355                

Consumer Durables & Apparel

     725,756,977        725,756,977                

Consumer Services

     231,738,251        231,738,251                

Diversified Financials

     172,697,426        172,697,426                

Energy

     58,919,199        58,919,199                

Food & Staples Retailing

     103,790,268        103,790,268                

Food, Beverage & Tobacco

     144,957,807        144,957,807                

Health Care Equipment & Services

     1,398,717,762        1,398,717,762                

Insurance

     546,517,314        546,517,314                

Materials

     334,511,389        334,511,389                

Media & Entertainment

     567,405,673        567,405,673                

Pharmaceuticals, Biotechnology & Life Sciences

     966,662,329        966,662,329                

Real Estate

     619,495,265        619,495,265                

Retailing

     348,295,018        348,295,018                

Semiconductors & Semiconductor Equipment

     789,858,881        789,858,881                

Software & Services

     1,339,602,327        1,339,602,327                

Technology Hardware & Equipment

     1,512,582,449        1,512,582,449                

Transportation

     251,793,879        251,793,879                

Utilities

     322,813,720        322,813,720                

Short-Term Investments

     85,603,203        84,778,798        824,405         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     13,065,996,004      $     13,065,171,599      $     824,405      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  62  

 


The Hartford MidCap Value Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.4%  
      Automobiles & Components - 1.0%  
  221,327    

Gentex Corp.

  $ 6,124,118  
   

 

 

 
      Banks - 8.1%  
  90,745    

M&T Bank Corp.

    9,399,367  
  133,092    

South State Corp.

    8,171,849  
  441,224    

Sterling Bancorp

    5,903,577  
  307,326    

Synovus Financial Corp.

    7,990,476  
  225,095    

Western Alliance Bancorp

    9,273,914  
  237,016    

Zions Bancorp N.A

    7,648,506  
   

 

 

 
      48,387,689  
   

 

 

 
      Capital Goods - 14.9%  
  315,390    

Colfax Corp.*

    8,575,454  
  76,965    

EnerSys

    5,510,694  
  103,068    

Fortune Brands Home & Security, Inc.

    8,335,109  
  367,720    

Ingersoll Rand, Inc.*

    12,848,137  
  243,945    

JELD-WEN Holding, Inc.*

    5,130,163  
  62,450    

John Bean Technologies Corp.

    5,243,926  
  48,051    

L3Harris Technologies, Inc.

    7,741,497  
  60,521    

Middleby Corp.*

    6,024,260  
  62,631    

Moog, Inc. Class A

    3,907,548  
  249,637    

Rexnord Corp.

    8,008,355  
  172,088    

SPX FLOW, Inc.*

    7,287,927  
  181,799    

Westinghouse Air Brake Technologies Corp.

    10,780,681  
   

 

 

 
      89,393,751  
   

 

 

 
      Commercial & Professional Services - 1.6%  
  187,321    

Clean Harbors, Inc.*

    9,922,393  
   

 

 

 
      Consumer Durables & Apparel - 6.5%  
  122,124    

Carter’s, Inc.

    9,947,000  
  101,483    

Columbia Sportswear Co.

    7,569,617  
  81,650    

Leggett & Platt, Inc.

    3,407,254  
  115,927    

Lennar Corp. Class A

    8,141,553  
  418,978    

Steven Madden Ltd.

    10,059,662  
   

 

 

 
      39,125,086  
   

 

 

 
      Consumer Services - 1.6%  
  202,076    

Wyndham Hotels & Resorts, Inc.

    9,398,555  
   

 

 

 
      Diversified Financials - 2.8%  
  607,842    

SLM Corp.

    5,586,068  
  232,820    

Voya Financial, Inc.

    11,159,063  
   

 

 

 
      16,745,131  
   

 

 

 
      Energy - 1.8%  
  292,711    

Delek U.S. Holdings, Inc.

    2,944,673  
  243,104    

Diamondback Energy, Inc.

    6,310,980  
  183,906    

Viper Energy Partners L.P.

    1,289,181  
   

 

 

 
      10,544,834  
   

 

 

 
      Food & Staples Retailing - 1.4%  
  407,131    

U.S. Foods Holding Corp.*

    8,509,038  
   

 

 

 
      Food, Beverage & Tobacco - 2.1%  
  259,737    

Keurig Dr Pepper, Inc.

    6,986,925  
  66,533    

Post Holdings, Inc.*

    5,715,185  
   

 

 

 
      12,702,110  
   

 

 

 
      Health Care Equipment & Services - 11.6%  
  162,114    

Acadia Healthcare Co., Inc.*

    5,779,364  
  237,834    

Centene Corp.*

    14,055,989  
  226,034    

Dentsply Sirona, Inc.

    10,666,545  
  155,508    

Encompass Health Corp.

    9,534,196  
  72,118    

Hill-Rom Holdings, Inc.

    6,567,786  
  88,107    

Hologic, Inc.*

    6,063,524  
  31,552    

Molina Healthcare, Inc.*

    5,883,501  
  83,983    

Zimmer Biomet Holdings, Inc.

    11,094,154  
   

 

 

 
      69,645,059  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.4% - (continued)  
      Insurance - 10.1%  
  10,399    

Alleghany Corp.

  $ 5,687,525  
  107,801    

Arthur J Gallagher & Co.

    11,180,042  
  77,975    

Assurant, Inc.

    9,697,751  
  493,382    

CNO Financial Group, Inc.

    8,757,531  
  93,947    

Hanover Insurance Group, Inc.

    8,986,970  
  111,790    

Kemper Corp.

    6,892,971  
  471,566    

Lancashire Holdings Ltd.

    3,891,599  
  33,534    

RenaissanceRe Holdings Ltd.

    5,423,118  
   

 

 

 
      60,517,507  
   

 

 

 
      Materials - 8.0%  
  163,400    

Buzzi Unicem S.p.A.

    3,535,615  
  120,334    

Celanese Corp.

    13,659,112  
  147,034    

Crown Holdings, Inc.*

    12,615,517  
  74,492    

FMC Corp.

    7,653,308  
  98,075    

Reliance Steel & Aluminum Co.

    10,689,194  
   

 

 

 
      48,152,746  
   

 

 

 
      Media & Entertainment - 1.8%  
  41,500    

Electronic Arts, Inc.*

    4,972,945  
  461,419    

TEGNA, Inc.

    5,550,871  
   

 

 

 
      10,523,816  
   

 

 

 
      Real Estate - 8.6%  
  178,264    

American Campus Communities, Inc. REIT

    6,677,769  
  175,836    

Americold Realty Trust REIT

    6,370,538  
  69,799    

Boston Properties, Inc. REIT

    5,054,146  
  143,636    

First Industrial Realty Trust, Inc. REIT

    5,718,149  
  326,408    

Gaming and Leisure Properties, Inc. REIT

    11,864,931  
  177,860    

Highwoods Properties, Inc. REIT

    5,294,892  
  330,998    

Host Hotels & Resorts, Inc. REIT

    3,468,859  
  63,631    

Life Storage, Inc. REIT

    7,263,479  
   

 

 

 
      51,712,763  
   

 

 

 
      Retailing - 1.4%  
  95,365    

Dollar Tree, Inc.*

    8,613,367  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 1.5%  
  81,299    

MKS Instruments, Inc.

    8,811,999  
   

 

 

 
      Software & Services - 3.1%  
  121,911    

Amdocs Ltd.

    6,873,342  
  78,111    

Leidos Holdings, Inc.

    6,483,213  
  83,897    

SS&C Technologies Holdings, Inc.

    4,968,380  
   

 

 

 
      18,324,935  
   

 

 

 
      Technology Hardware & Equipment - 6.6%  
  139,773    

Ciena Corp.*

    5,505,659  
  42,322    

Coherent, Inc.*

    5,296,175  
  53,528    

F5 Networks, Inc.*

    7,116,012  
  161,865    

Lumentum Holdings, Inc.*

    13,384,617  
  26,296    

Rogers Corp.*

    3,187,601  
  129,148    

Western Digital Corp.

    4,872,754  
   

 

 

 
      39,362,818  
   

 

 

 
      Utilities - 4.9%  
  144,147    

Alliant Energy Corp.

    7,968,446  
  140,293    

Evergy, Inc.

    7,744,173  
  103,919    

Portland General Electric Co.

    4,084,017  
  77,699    

Sempra Energy

    9,740,347  
   

 

 

 
      29,536,983  
   

 

 

 
 

Total Common Stocks
(cost $580,294,290)

  $ 596,054,698  
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  63  

 


The Hartford MidCap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
SHORT-TERM INVESTMENTS - 0.2%  
      Repurchase Agreements - 0.2%  
  1,161,266    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $1,161,272; collateralized by U.S. Treasury Notes at 2.875%, maturing 05/15/2028, with a market value of $1,184,525.

  $ 1,161,266  
   

 

 

 
 

Total Short-Term Investments
(cost $1,161,266)

  $ 1,161,266  
   

 

 

 
 

Total Investments
(cost $581,455,556)

    99.6    $ 597,215,964  
 

Other Assets and Liabilities

    0.4      2,561,818  
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 599,777,782  
   

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

 

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Automobiles & Components

   $ 6,124,118      $ 6,124,118      $      $  

Banks

     48,387,689        48,387,689                

Capital Goods

     89,393,751        89,393,751                

Commercial & Professional Services

     9,922,393        9,922,393                

Consumer Durables & Apparel

     39,125,086        39,125,086                

Consumer Services

     9,398,555        9,398,555                

Diversified Financials

     16,745,131        16,745,131                

Energy

     10,544,834        10,544,834                

Food & Staples Retailing

     8,509,038        8,509,038                

Food, Beverage & Tobacco

     12,702,110        12,702,110                

Health Care Equipment & Services

     69,645,059        69,645,059                

Insurance

     60,517,507        56,625,908        3,891,599         

Materials

     48,152,746        44,617,131        3,535,615         

Media & Entertainment

     10,523,816        10,523,816                

Real Estate

     51,712,763        51,712,763                

Retailing

     8,613,367        8,613,367                

Semiconductors & Semiconductor Equipment

     8,811,999        8,811,999                

Software & Services

     18,324,935        18,324,935                

Technology Hardware & Equipment

     39,362,818        39,362,818                

Utilities

     29,536,983        29,536,983                

Short-Term Investments

     1,161,266               1,161,266         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     597,215,964      $     588,627,484      $     8,588,480      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  64  

 


Hartford Quality Value Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.0%  
      Banks - 12.0%  
  270,210    

Bank of America Corp.

  $ 6,403,977  
  32,255    

Bank of Nova Scotia

    1,340,518  
  45,924    

Citigroup, Inc.

    1,902,172  
  73,791    

JP Morgan Chase & Co.

    7,234,470  
  30,438    

PNC Financial Services Group, Inc.

    3,405,403  
   

 

 

 
      20,286,540  
   

 

 

 
      Capital Goods - 11.4%  
  13,460    

Deere & Co.

    3,040,749  
  26,064    

Eaton Corp. plc

    2,705,182  
  18,311    

Honeywell International, Inc.

    3,020,399  
  80,479    

Johnson Controls International plc

    3,397,019  
  5,247    

Lockheed Martin Corp.

    1,837,132  
  59,600    

Raytheon Technologies Corp.

    3,237,472  
  36,039    

Westinghouse Air Brake Technologies Corp.

    2,137,113  
   

 

 

 
      19,375,066  
   

 

 

 
      Consumer Services - 2.7%  
  12,878    

Hilton Worldwide Holdings, Inc.

    1,130,817  
  15,931    

McDonald’s Corp.

    3,393,303  
   

 

 

 
      4,524,120  
   

 

 

 
      Diversified Financials - 2.0%  
  30,149    

American Express Co.

    2,750,795  
  1,080    

BlackRock, Inc.

    647,147  
   

 

 

 
      3,397,942  
   

 

 

 
      Energy - 4.6%  
  49,499    

Chevron Corp.

    3,440,180  
  31,823    

EOG Resources, Inc.

    1,089,620  
  45,860    

Exxon Mobil Corp.

    1,495,953  
  58,314    

Total SE ADR

    1,768,664  
   

 

 

 
      7,794,417  
   

 

 

 
      Food & Staples Retailing - 1.9%  
  35,083    

Kroger Co.

    1,130,024  
  38,939    

Sysco Corp.

    2,153,716  
   

 

 

 
      3,283,740  
   

 

 

 
      Food, Beverage & Tobacco - 5.3%  
  25,984    

General Mills, Inc.

    1,536,174  
  34,133    

Kellogg Co.

    2,146,624  
  43,670    

Mondelez International, Inc. Class A

    2,319,751  
  42,436    

Philip Morris International, Inc.

    3,013,805  
   

 

 

 
      9,016,354  
   

 

 

 
      Health Care Equipment & Services - 7.5%  
  10,575    

Becton Dickinson and Co.

    2,444,200  
  18,037    

Hill-Rom Holdings, Inc.

    1,642,630  
  40,391    

Koninklijke Philips N.V. ADR*

    1,878,181  
  40,366    

Medtronic plc

    4,059,609  
  8,550    

UnitedHealth Group, Inc.

    2,608,947  
   

 

 

 
      12,633,567  
   

 

 

 
      Insurance - 5.8%  
  50,268    

American International Group, Inc.

    1,582,939  
  21,556    

Chubb Ltd.

    2,800,340  
  21,228    

Marsh & McLennan Cos., Inc.

    2,196,249  
  39,605    

Principal Financial Group, Inc.

    1,553,308  
  27,551    

Prudential Financial, Inc.

    1,763,815  
   

 

 

 
      9,896,651  
   

 

 

 
      Materials - 4.3%  
  27,233    

Celanese Corp.

    3,091,218  
  17,931    

FMC Corp.

    1,842,231  
  18,502    

PPG Industries, Inc.

    2,400,079  
   

 

 

 
      7,333,528  
   

 

 

 
      Media & Entertainment - 2.3%  
  92,267    

Comcast Corp. Class A

    3,897,358  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.0% - (continued)  
      Pharmaceuticals, Biotechnology & Life Sciences - 6.7%  
  45,116    

AstraZeneca plc ADR

  $ 2,263,018  
  31,361    

Merck & Co., Inc.

    2,358,661  
  22,187    

Novartis AG ADR

    1,732,361  
  139,271    

Pfizer, Inc.

    4,941,335  
   

 

 

 
      11,295,375  
   

 

 

 
      Real Estate - 4.3%  
  7,078    

American Tower Corp. REIT

    1,625,463  
  141,437    

Host Hotels & Resorts, Inc. REIT

    1,482,260  
  8,543    

Public Storage REIT

    1,956,945  
  99,111    

VICI Properties, Inc. REIT

    2,274,597  
   

 

 

 
      7,339,265  
   

 

 

 
      Retailing - 5.1%  
  571,800    

Allstar Co.(1)(2)

    480,312  
  19,074    

Lowe’s Cos., Inc.

    3,015,599  
  19,920    

Target Corp.

    3,032,223  
  40,713    

TJX Cos., Inc.

    2,068,220  
   

 

 

 
      8,596,354  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 7.5%  
  9,335    

Broadcom, Inc.

    3,263,796  
  68,656    

Intel Corp.

    3,040,088  
  11,951    

KLA Corp.

    2,356,498  
  14,905    

QUALCOMM, Inc.

    1,838,681  
  15,458    

Texas Instruments, Inc.

    2,235,072  
   

 

 

 
      12,734,135  
   

 

 

 
      Software & Services - 2.5%  
  11,359    

Accenture plc Class A

    2,463,881  
  15,628    

International Business Machines Corp.

    1,745,022  
   

 

 

 
      4,208,903  
   

 

 

 
      Technology Hardware & Equipment - 1.5%  
  70,526    

Cisco Systems, Inc.

    2,531,883  
   

 

 

 
      Telecommunication Services - 3.7%  
  111,193    

Verizon Communications, Inc.

    6,336,889  
   

 

 

 
      Transportation - 1.2%  
  16,353    

J.B. Hunt Transport Services, Inc.

    1,990,814  
   

 

 

 
      Utilities - 6.7%  
  44,834    

Alliant Energy Corp.

    2,478,423  
  41,487    

Avangrid, Inc.

    2,046,969  
  28,867    

Dominion Energy, Inc.

    2,319,175  
  27,294    

Eversource Energy

    2,381,947  
  16,997    

Sempra Energy

    2,130,744  
   

 

 

 
      11,357,258  
   

 

 

 
 

Total Common Stocks
(cost $163,254,463)

  $ 167,830,159  
   

 

 

 
SHORT-TERM INVESTMENTS - 0.9%  
      Repurchase Agreements - 0.9%  
  1,505,191    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $1,505,199; collateralized by U.S. Treasury Note at 2.250%, maturing 11/15/2027, with a market value of $1,535,366.

  $ 1,505,191  
   

 

 

 
 

Total Short-Term Investments
(cost $1,505,191)

  $ 1,505,191  
   

 

 

 
 

Total Investments
(cost $164,759,654)

    99.9    $ 169,335,350  
 

Other Assets and Liabilities

    0.1      221,886  
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 169,557,236  
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  65  

 


Hartford Quality Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At

  October 31, 2020, the aggregate fair value of this security was $480,312, which represented 0.3% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and those prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(2) 

Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $480,312 or 0.3% of net assets.

 

Period
Acquired
    

Security Name

   Shares/
Par Value
     Total Cost      Market Value  
  08/2011      Allstar Co.      571,800      $     248,744      $     480,312  

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Banks

   $ 20,286,540      $ 20,286,540      $      $  

Capital Goods

     19,375,066        19,375,066                

Consumer Services

     4,524,120        4,524,120                

Diversified Financials

     3,397,942        3,397,942                

Energy

     7,794,417        7,794,417                

Food & Staples Retailing

     3,283,740        3,283,740                

Food, Beverage & Tobacco

     9,016,354        9,016,354                

Health Care Equipment & Services

     12,633,567        12,633,567                

Insurance

     9,896,651        9,896,651                

Materials

     7,333,528        7,333,528                

Media & Entertainment

     3,897,358        3,897,358                

Pharmaceuticals, Biotechnology & Life Sciences

     11,295,375        11,295,375                

Real Estate

     7,339,265        7,339,265                

Retailing

     8,596,354        8,116,042        480,312         

Semiconductors & Semiconductor Equipment

     12,734,135        12,734,135                

Software & Services

     4,208,903        4,208,903                

Technology Hardware & Equipment

     2,531,883        2,531,883                

Telecommunication Services

     6,336,889        6,336,889                

Transportation

     1,990,814        1,990,814                

Utilities

     11,357,258        11,357,258                

Short-Term Investments

     1,505,191               1,505,191         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     169,335,350      $     167,349,847      $     1,985,503      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

For the year ended October 31, 2020, investments valued at $131,514 were transferred out of Level 3 due to the initiation of a vendor providing prices that are based on market activity which has been determined to be significant observable input and there were no transfers in to Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  66  

 


The Hartford Small Cap Growth Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.5%  
      Automobiles & Components - 2.2%  
  72,212    

Fox Factory Holding Corp.*

  $ 6,071,585  
  115,624    

Patrick Industries, Inc.

    6,446,038  
  60,653    

Thor Industries, Inc.

    5,130,031  
   

 

 

 
      17,647,654  
   

 

 

 
      Banks - 2.7%  
  495,591    

MGIC Investment Corp.

    4,985,645  
  272,924    

Sterling Bancorp

    3,651,723  
  140,580    

Synovus Financial Corp.

    3,655,080  
  150,660    

Triumph Bancorp, Inc.*

    6,347,306  
  79,446    

Western Alliance Bancorp

    3,273,175  
   

 

 

 
      21,912,929  
   

 

 

 
      Capital Goods - 8.7%  
  132,692    

Aerojet Rocketdyne Holdings, Inc.*

    4,301,875  
  87,991    

Altra Industrial Motion Corp.

    3,762,495  
  89,565    

Applied Industrial Technologies, Inc.

    5,467,943  
  41,965    

Armstrong World Industries, Inc.

    2,513,703  
  36,458    

Axon Enterprise, Inc.*

    3,605,696  
  112,659    

BWX Technologies, Inc.

    6,197,372  
  40,075    

Curtiss-Wright Corp.

    3,380,727  
  62,647    

EnerSys

    4,485,525  
  88,839    

ITT, Inc.

    5,375,648  
  74,710    

John Bean Technologies Corp.

    6,273,399  
  55,071    

Mercury Systems, Inc.*

    3,793,290  
  179,219    

Rexnord Corp.

    5,749,346  
  140,101    

SPX Corp.*

    5,938,881  
  113,669    

SPX FLOW, Inc.*

    4,813,882  
  57,864    

Trex Co., Inc.*

    4,023,863  
   

 

 

 
      69,683,645  
   

 

 

 
      Commercial & Professional Services - 3.7%  
  92,162    

ASGN, Inc.*

    6,145,362  
  73,328    

Clean Harbors, Inc.*

    3,884,184  
  84,032    

Exponent, Inc.

    5,847,787  
  69,491    

Insperity, Inc.

    5,321,621  
  79,325    

Tetra Tech, Inc.

    8,004,686  
   

 

 

 
      29,203,640  
   

 

 

 
      Consumer Durables & Apparel - 6.7%  
  56,030    

American Outdoor Brands, Inc.*

    847,734  
  45,350    

Carter’s, Inc.

    3,693,757  
  37,848    

Deckers Outdoor Corp.*

    9,589,548  
  104,581    

PVH Corp.

    6,096,026  
  257,589    

Smith & Wesson Brands, Inc.

    4,273,402  
  68,774    

TopBuild Corp.*

    10,536,865  
  464,344    

Under Armour, Inc. Class C*

    5,678,927  
  203,026    

Wolverine World Wide, Inc.

    5,414,703  
  143,779    

YETI Holdings, Inc.*

    7,114,185  
   

 

 

 
      53,245,147  
   

 

 

 
      Consumer Services - 3.4%  
  50,142    

Churchill Downs, Inc.

    7,478,680  
  60,773    

Dunkin’ Brands Group, Inc.

    6,059,676  
  150,790    

Penn National Gaming, Inc.*

    8,139,644  
  46,313    

Wingstop, Inc.

    5,387,591  
   

 

 

 
      27,065,591  
   

 

 

 
      Diversified Financials - 2.0%  
  130,775    

OneMain Holdings, Inc.

    4,562,740  
  532,482    

SLM Corp.

    4,893,509  
  81,800    

StepStone Group, Inc. Class A*

    2,103,078  
  78,930    

Stifel Financial Corp.

    4,614,248  
   

 

 

 
      16,173,575  
   

 

 

 
      Food & Staples Retailing - 0.7%  
  177,665    

Performance Food Group Co.*

    5,971,321  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.5% - (continued)  
      Food, Beverage & Tobacco - 2.1%  
  71,712    

Freshpet, Inc.*

  $ 8,211,024  
  393,003    

Hostess Brands, Inc.*

    4,967,558  
  203,382    

Simply Good Foods Co.*

    3,823,581  
   

 

 

 
      17,002,163  
   

 

 

 
      Health Care Equipment & Services - 12.6%  
  44,592    

Addus HomeCare Corp.*

    4,350,841  
  20,388    

Amedisys, Inc.*

    5,280,492  
  96,713    

AtriCure, Inc.*

    3,342,401  
  94,855    

Cardiovascular Systems, Inc.*

    3,381,581  
  62,855    

Glaukos Corp.*

    3,514,852  
  124,071    

Globus Medical, Inc. Class A*

    6,466,581  
  132,794    

Health Catalyst, Inc.*(1)

    4,578,737  
  184,012    

HMS Holdings Corp.*

    4,898,400  
  11,710    

ICU Medical, Inc.*

    2,081,921  
  84,418    

Integer Holdings Corp.*

    4,934,232  
  103,208    

Integra LifeSciences Holdings Corp.*

    4,551,473  
  28,245    

iRhythm Technologies, Inc.*

    5,972,405  
  40,731    

LHC Group, Inc.*

    8,820,298  
  128,975    

Omnicell, Inc.*

    11,162,786  
  205,944    

OraSure Technologies, Inc.*

    3,076,803  
  71,165    

Providence Service Corp.*

    8,365,446  
  476,746    

R1 RCM, Inc.*

    8,543,288  
  68,580    

Tandem Diabetes Care, Inc.*

    7,475,220  
   

 

 

 
      100,797,757  
   

 

 

 
      Household & Personal Products - 0.5%  
  218,352    

BellRing Brands, Inc. Class A*

    3,993,658  
   

 

 

 
      Insurance - 1.2%  
  126,176    

James River Group Holdings Ltd.

    5,896,204  
  66,239    

Kemper Corp.

    4,084,297  
   

 

 

 
      9,980,501  
   

 

 

 
      Materials - 3.0%  
  203,201    

Axalta Coating Systems Ltd.*

    5,102,377  
  123,663    

Boise Cascade Co.

    4,746,186  
  313,772    

Graphic Packaging Holding Co.

    4,170,030  
  71,563    

Ingevity Corp.*

    3,927,377  
  201,357    

Louisiana-Pacific Corp.

    5,754,783  
   

 

 

 
      23,700,753  
   

 

 

 
      Media & Entertainment - 1.2%  
  101,853    

Cardlytics, Inc.*(1)

    7,518,789  
  99,311    

Cargurus, Inc.*

    1,979,268  
   

 

 

 
      9,498,057  
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 20.6%  
  298,613    

Adverum Biotechnologies, Inc.*

    3,257,868  
  559,343    

Akebia Therapeutics, Inc.*

    1,241,741  
  15,100    

Akero Therapeutics, Inc.*

    400,905  
  40,400    

Aligos Therapeutics, Inc.*

    603,576  
  60,528    

Allakos, Inc.*(1)

    5,758,029  
  39,400    

ALX Oncology Holdings, Inc.*(1)

    1,556,694  
  415,958    

Amicus Therapeutics, Inc.*

    7,416,531  
  160,312    

Apellis Pharmaceuticals, Inc.*

    5,113,953  
  32,455    

Arena Pharmaceuticals, Inc.*

    2,782,043  
  82,909    

Arrowhead Pharmaceuticals, Inc.*

    4,750,686  
  75,384    

Biohaven Pharmaceutical Holding Co., Ltd.*

    5,839,245  
  98,532    

ChemoCentryx, Inc.*

    4,729,536  
  147,271    

Constellation Pharmaceuticals, Inc.*

    2,889,457  
  232,243    

Dicerna Pharmaceuticals, Inc.*

    4,874,780  
  63,200    

Dyne Therapeutics, Inc.*

    1,306,976  
  38,780    

Emergent BioSolutions, Inc.*

    3,489,037  
  278,864    

Heron Therapeutics, Inc.*

    4,548,272  
  156,960    

Homology Medicines, Inc.*

    1,659,067  
  524,020    

ImmunoGen, Inc.*

    2,955,473  
  218,036    

Karyopharm Therapeutics, Inc.*

    3,231,293  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  67  

 


The Hartford Small Cap Growth Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.5% - (continued)  
      Pharmaceuticals, Biotechnology & Life Sciences - 20.6% - (continued)  
  68,042    

Kodiak Sciences, Inc.*

  $ 6,178,894  
  118,925    

Kura Oncology, Inc.*

    3,716,406  
  59,693    

Kymera Therapeutics, Inc.*

    2,148,351  
  41,447    

Madrigal Pharmaceuticals, Inc.*

    5,274,131  
  225,837    

Mersana Therapeutics, Inc.*

    4,069,583  
  45,865    

Mirati Therapeutics, Inc.*

    9,959,126  
  114,241    

NanoString Technologies, Inc.*

    4,186,933  
  30,635    

Novavax, Inc.*(1)

    2,472,551  
  70,527    

Pacira BioSciences, Inc.*

    3,688,562  
  107,067    

PTC Therapeutics, Inc.*

    5,587,827  
  282,753    

Radius Health, Inc.*

    3,791,718  
  108,407    

RAPT Therapeutics, Inc.*

    3,115,617  
  20,748    

Reata Pharmaceuticals, Inc. Class A*

    2,421,499  
  24,489    

Repligen Corp.*

    4,079,133  
  172,862    

Revance Therapeutics, Inc.*

    4,473,668  
  143,288    

Rhythm Pharmaceuticals, Inc.*

    3,033,407  
  192,634    

TG Therapeutics, Inc.*

    4,867,861  
  232,617    

Theravance Biopharma, Inc.*

    4,398,787  
  49,868    

Turning Point Therapeutics, Inc.*

    4,597,331  
  50,599    

Ultragenyx Pharmaceutical, Inc.*

    5,085,199  
  144,682    

Veracyte, Inc.*

    5,014,678  
  101,400    

Y-mAbs Therapeutics, Inc.*

    4,333,836  
   

 

 

 
      164,900,260  
   

 

 

 
      Real Estate - 2.8%  
  230,155    

Columbia Property Trust, Inc. REIT

    2,435,040  
  35,665    

Coresite Realty Corp. REIT

    4,256,974  
  142,368    

Corporate Office Properties Trust REIT

    3,193,314  
  232,381    

Essential Properties Realty Trust, Inc. REIT

    3,838,934  
  385,139    

Independence Realty Trust, Inc. REIT

    4,679,439  
  35,293    

PS Business Parks, Inc. REIT

    4,024,461  
   

 

 

 
      22,428,162  
   

 

 

 
      Retailing - 2.8%  
  91,656    

Floor & Decor Holdings, Inc. Class A*

    6,690,888  
  163,192    

Foot Locker, Inc.

    6,018,521  
  4,700    

Leslie’s, Inc.*

    103,259  
  18,661    

Lithia Motors, Inc. Class A

    4,284,006  
  61,624    

Shutterstock, Inc.

    4,033,291  
  6,822    

Stamps.com, Inc.*

    1,522,943  
   

 

 

 
      22,652,908  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 4.6%  
  191,121    

Axcelis Technologies, Inc.*

    4,218,041  
  72,094    

Cirrus Logic, Inc.*

    4,965,114  
  199,829    

Cohu, Inc.

    4,342,284  
  66,137    

First Solar, Inc.*

    5,756,895  
  196,359    

FormFactor, Inc.*

    5,566,778  
  104,581    

Power Integrations, Inc.

    6,296,822  
  72,132    

Synaptics, Inc.*

    5,530,360  
   

 

 

 
      36,676,294  
   

 

 

 
      Software & Services - 15.2%  
  94,719    

Alarm.com Holdings, Inc.*

    5,524,959  
  88,802    

Blackbaud, Inc.

    4,381,491  
  29,403    

CACI International, Inc. Class A*

    6,131,408  
  109,774    

Digital Turbine, Inc.*

    3,146,123  
  42,802    

Everbridge, Inc.*

    4,480,941  
  86,145    

ExlService Holdings, Inc.*

    6,524,622  
  51,968    

Five9, Inc.*

    7,884,585  
  105,757    

LiveRamp Holdings, Inc.*

    6,989,480  
  55,127    

Manhattan Associates, Inc.*

    4,713,359  
  176,361    

Medallia, Inc.*

    5,017,470  
  135,995    

Mimecast Ltd.*

    5,196,369  
  23,601    

Paylocity Holding Corp.*

    4,378,458  
  37,933    

Pegasystems, Inc.

    4,395,676  
  158,631    

Perficient, Inc.*

    6,211,990  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 99.5% - (continued)  
      Software & Services - 15.2% - (continued)  
  78,826    

Q2 Holdings, Inc.*

  $ 7,192,084  
  123,244    

Rapid7, Inc.*

    7,632,501  
  168,719    

Repay Holdings Corp.*

    3,801,239  
  70,682    

Science Applications International Corp.

    5,397,984  
  111,702    

Sprout Social, Inc. Class A*

    4,881,377  
  294,161    

SVMK, Inc.*

    6,156,790  
  48,188    

Varonis Systems, Inc.*

    5,569,087  
  584,650    

Verra Mobility Corp.*(1)

    5,618,487  
   

 

 

 
      121,226,480  
   

 

 

 
      Technology Hardware & Equipment - 2.0%  
  164,992    

CTS Corp.

    4,560,379  
  96,466    

Insight Enterprises, Inc.*

    5,146,461  
  76,442    

Lumentum Holdings, Inc.*

    6,320,989  
   

 

 

 
      16,027,829  
   

 

 

 
      Telecommunication Services - 0.4%  
  18,298    

Bandwidth, Inc. Class A*

    2,934,176  
   

 

 

 
      Transportation - 0.4%      
  215,476    

Marten Transport Ltd.

    3,306,479  
   

 

 

 
 

Total Common Stocks
(cost $623,014,762)

  $ 796,028,979  
   

 

 

 
SHORT-TERM INVESTMENTS - 1.6%  
      Repurchase Agreements - 0.3%  
  2,555,212    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $2,555,225; collateralized by U.S. Treasury Notes at 0.750%, maturing 07/15/2028, with a market value of $2,606,384

  $ 2,555,212  
   

 

 

 
      Securities Lending Collateral - 1.3%  
  10,149,792    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(2)

    10,149,792  
  10,244    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(2)

    10,244  
   

 

 

 
      10,160,036  
   

 

 

 
 

Total Short-Term Investments
(cost $12,715,248)

  $ 12,715,248  
   

 

 

 
 

Total Investments
(cost $635,730,010)

    101.1    $ 808,744,227  
 

Other Assets and Liabilities

    (1.1 )%       (8,723,276
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 800,020,951  
   

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  68  

 


The Hartford Small Cap Growth Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Automobiles & Components

   $ 17,647,654      $ 17,647,654      $      $  

Banks

     21,912,929        21,912,929                

Capital Goods

     69,683,645        69,683,645                

Commercial & Professional Services

     29,203,640        29,203,640                

Consumer Durables & Apparel

     53,245,147        53,245,147                

Consumer Services

     27,065,591        27,065,591                

Diversified Financials

     16,173,575        16,173,575                

Food & Staples Retailing

     5,971,321        5,971,321                

Food, Beverage & Tobacco

     17,002,163        17,002,163                

Health Care Equipment & Services

     100,797,757        100,797,757                

Household & Personal Products

     3,993,658        3,993,658                

Insurance

     9,980,501        9,980,501                

Materials

     23,700,753        23,700,753                

Media & Entertainment

     9,498,057        9,498,057                

Pharmaceuticals, Biotechnology & Life Sciences

     164,900,260        164,900,260                

Real Estate

     22,428,162        22,428,162                

Retailing

     22,652,908        22,652,908                

Semiconductors & Semiconductor Equipment

     36,676,294        36,676,294                

Software & Services

     121,226,480        121,226,480                

Technology Hardware & Equipment

     16,027,829        16,027,829                

Telecommunication Services

     2,934,176        2,934,176                

Transportation

     3,306,479        3,306,479                

Short-Term Investments

     12,715,248        10,160,036        2,555,212         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     808,744,227      $     806,189,015      $     2,555,212      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  69  

 


Hartford Small Cap Value Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 97.3%  
      Banks - 23.8%  
  55,761    

Bank OZK

  $ 1,381,757  
  153,302    

Cadence Bancorp

    1,720,048  
  18,661    

Federal Agricultural Mortgage Corp. Class C

    1,205,314  
  64,307    

First Hawaiian, Inc.

    1,109,939  
  37,999    

First Interstate BancSystem, Inc. Class A

    1,341,365  
  154,411    

FNB Corp.

    1,167,347  
  82,851    

Great Western Bancorp, Inc.

    1,076,235  
  65,095    

Hilltop Holdings, Inc.

    1,484,817  
  91,699    

Home BancShares, Inc.

    1,522,203  
  54,658    

Pacific Premier Bancorp, Inc.

    1,393,779  
  86,343    

Radian Group, Inc.

    1,549,857  
  107,919    

Sterling Bancorp

    1,443,956  
  94,082    

Umpqua Holdings Corp.

    1,181,670  
  32,131    

Western Alliance Bancorp

    1,323,797  
   

 

 

 
    18,902,084  
   

 

 

 
      Capital Goods - 10.1%  
  30,253    

Argan, Inc.

    1,246,121  
  21,766    

EnerSys

    1,558,446  
  52,768    

Kennametal, Inc.

    1,635,808  
  18,044    

Moog, Inc. Class A

    1,125,765  
  57,527    

nVent Electric plc

    1,038,362  
  179,722    

REV Group, Inc.

    1,410,818  
   

 

 

 
    8,015,320  
   

 

 

 
      Commercial & Professional Services - 7.5%  
  111,916    

BrightView Holdings, Inc.*

    1,368,733  
  50,595    

Deluxe Corp.

    1,084,757  
  37,723    

Kforce, Inc.

    1,308,988  
  108,050    

Knoll, Inc.

    1,238,253  
  43,690    

Loomis AB*

    975,591  
   

 

 

 
    5,976,322  
   

 

 

 
      Consumer Durables & Apparel - 7.0%  
  48,475    

Kontoor Brands, Inc.*

    1,594,828  
  123,784    

Movado Group, Inc.

    1,350,483  
  59,903    

Steven Madden Ltd.

    1,438,271  
  17,086    

Sturm Ruger & Co., Inc.

    1,142,370  
   

 

 

 
    5,525,952  
   

 

 

 
      Consumer Services - 3.2%  
  38,931    

Adtalem Global Education, Inc.*

    912,543  
  52,978    

Carriage Services, Inc.

    1,367,362  
  53,031    

Regis Corp.*(1)

    293,792  
   

 

 

 
    2,573,697  
   

 

 

 
      Diversified Financials - 5.1%  
  102,425    

Greenhill & Co., Inc.

    1,324,355  
  180,352    

Navient Corp.

    1,444,620  
  37,664    

PRA Group, Inc.*

    1,285,472  
   

 

 

 
    4,054,447  
   

 

 

 
      Food, Beverage & Tobacco - 1.8%  
  114,115    

Hostess Brands, Inc.*

    1,442,414  
   

 

 

 
      Health Care Equipment & Services - 5.6%  
  45,728    

Envista Holdings Corp.*

    1,208,134  
  44,025    

Natus Medical, Inc.*

    801,695  
  88,680    

NextGen Healthcare, Inc.*

    1,206,048  
  37,362    

Premier, Inc. Class A

    1,222,858  
   

 

 

 
    4,438,735  
   

 

 

 
      Household & Personal Products - 4.6%  
  43,237    

Edgewell Personal Care Co.*

    1,133,674  
  32,334    

Energizer Holdings, Inc.

    1,272,343  
  8,802    

Medifast, Inc.

    1,236,593  
   

 

 

 
    3,642,610  
   

 

 

 
      Insurance - 3.1%  
  133,033    

Lancashire Holdings Ltd.

    1,097,855  
  172,377    

Third Point Reinsurance Ltd.*

    1,341,093  
   

 

 

 
    2,438,948  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 97.3% - (continued)  
      Materials - 3.5%  
  22,803    

Compass Minerals International, Inc.

  $ 1,376,845  
  40,966    

Schweitzer-Mauduit International, Inc.

    1,360,071  
   

 

 

 
    2,736,916  
   

 

 

 
      Media & Entertainment - 1.7%  
  114,660    

TEGNA, Inc.

    1,379,360  
   

 

 

 
      Real Estate - 3.0%  
  138,126    

CoreCivic, Inc. REIT

    885,388  
  126,042    

Pebblebrook Hotel Trust REIT

    1,509,983  
   

 

 

 
    2,395,371  
   

 

 

 
      Retailing - 2.6%  
  41,386    

Children’s Place, Inc.(1)

    1,045,824  
  122,189    

Michaels Cos., Inc.*

    990,953  
   

 

 

 
    2,036,777  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 4.5%  
  47,550    

Ichor Holdings Ltd.*

    1,106,013  
  35,839    

Silicon Motion Technology Corp. ADR

    1,352,564  
  52,085    

Tower Semiconductor Ltd.*

    1,098,993  
   

 

 

 
    3,557,570  
   

 

 

 
      Software & Services - 3.1%  
  27,746    

CSG Systems International, Inc.

    1,051,019  
  114,916    

Xperi Holding Corp.

    1,424,958  
   

 

 

 
    2,475,977  
   

 

 

 
      Technology Hardware & Equipment - 4.9%  
  131,795    

Avid Technology, Inc.*

    1,228,329  
  23,519    

InterDigital, Inc.

    1,316,594  
  69,926    

Plantronics, Inc.

    1,364,955  
   

 

 

 
    3,909,878  
   

 

 

 
      Utilities - 2.2%  
  44,366    

Portland General Electric Co.

    1,743,584  
   

 

 

 
 

Total Common Stocks
(cost $80,169,656)

  $ 77,245,962  
   

 

 

 
EXCHANGE-TRADED FUNDS - 2.5%  
      Other Investment Pools & Funds - 2.5%  
  19,125    

iShares Russell 2000 Value ETF(1)

  $ 1,969,684  
   

 

 

 
 

Total Exchange-Traded Funds
(cost $1,902,621)

  $ 1,969,684  
   

 

 

 
 

Total Long-Term Investments
(cost $82,072,277)

  $ 79,215,646  
   

 

 

 
SHORT-TERM INVESTMENTS - 2.7%  
      Repurchase Agreements - 0.5%  
  354,275    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $354,277; collateralized by U.S. Treasury Note at 2.25%, maturing 11/15/2027, with a market value of $361,448.

  $ 354,275  
   

 

 

 
      Securities Lending Collateral - 2.2%  
  1,748,341    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(2)

    1,748,341  
  1,764    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class,
0.03%(2)

    1,764  
   

 

 

 
    1,750,105  
   

 

 

 
 

Total Short-Term Investments
(cost $2,104,380)

  $ 2,104,380  
   

 

 

 
 

Total Investments
(cost $84,176,657)

    102.5    $ 81,320,026  
 

Other Assets and Liabilities

    (2.5 )%       (1,955,752
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 79,364,274  
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  70  

 


Hartford Small Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

           

Banks

   $ 18,902,084      $ 18,902,084      $      $  

Capital Goods

     8,015,320        8,015,320                

Commercial & Professional Services

     5,976,322        5,976,322                

Consumer Durables & Apparel

     5,525,952        5,525,952                

Consumer Services

     2,573,697        2,573,697                

Diversified Financials

     4,054,447        4,054,447                

Food, Beverage & Tobacco

     1,442,414        1,442,414                

Health Care Equipment & Services

     4,438,735        4,438,735                

Household & Personal Products

     3,642,610        3,642,610                

Insurance

     2,438,948        1,341,093        1,097,855         

Materials

     2,736,916        2,736,916                

Media & Entertainment

     1,379,360        1,379,360                

Real Estate

     2,395,371        2,395,371                

Retailing

     2,036,777        2,036,777                

Semiconductors & Semiconductor Equipment

     3,557,570        3,557,570                

Software & Services

     2,475,977        2,475,977                

Technology Hardware & Equipment

     3,909,878        3,909,878                

Utilities

     1,743,584        1,743,584                

Exchange-Traded Funds

     1,969,684        1,969,684                

Short-Term Investments

     2,104,380        1,750,105        354,275         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     81,320,026      $     79,867,896      $     1,452,130      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  71  

 


The Hartford Small Company Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 94.0%  
      Automobiles & Components - 2.1%  
  89,821    

Fox Factory Holding Corp.*

  $ 7,552,150  
  90,812    

Thor Industries, Inc.

    7,680,879  
   

 

 

 
    15,233,029  
   

 

 

 
      Banks - 2.3%  
  574,644    

Sterling Bancorp

    7,688,737  
  228,899    

Western Alliance Bancorp

    9,430,639  
   

 

 

 
    17,119,376  
   

 

 

 
      Capital Goods - 12.6%  
  161,895    

Advanced Drainage Systems, Inc.

    10,269,000  
  150,987    

Argan, Inc.

    6,219,155  
  52,030    

Axon Enterprise, Inc.*

    5,145,767  
  196,430    

BMC Stock Holdings, Inc.*

    7,776,664  
  38,651    

Chart Industries, Inc.*

    3,264,077  
  181,219    

Comfort Systems USA, Inc.

    8,299,830  
  96,728    

Curtiss-Wright Corp.

    8,159,974  
  179,077    

ITT, Inc.

    10,835,949  
  239,965    

Kennametal, Inc.

    7,438,915  
  109,406    

Kornit Digital Ltd.*

    7,365,212  
  359,760    

Rexnord Corp.

    11,541,101  
  167,904    

Rush Enterprises, Inc. Class A

    6,017,679  
   

 

 

 
    92,333,323  
   

 

 

 
      Commercial & Professional Services - 2.7%  
  100,897    

Tetra Tech, Inc.

    10,181,516  
  142,575    

TriNet Group, Inc.*

    9,826,269  
   

 

 

 
    20,007,785  
   

 

 

 
      Consumer Durables & Apparel - 7.9%  
  134,631    

BRP, Inc.

    7,271,670  
  39,855    

Cavco Industries, Inc.*

    6,860,640  
  128,647    

Century Communities, Inc.*

    4,996,649  
  72,788    

iRobot Corp.*(1)

    5,792,469  
  72,114    

Polaris, Inc.

    6,552,278  
  299,554    

Skyline Champion Corp.*

    7,683,560  
  378,204    

Wolverine World Wide, Inc.

    10,086,701  
  165,391    

YETI Holdings, Inc.*

    8,183,547  
   

 

 

 
    57,427,514  
   

 

 

 
      Consumer Services - 3.5%  
  185,140    

Chegg, Inc.*

    13,596,681  
  86,022    

DraftKings, Inc. Class A*

    3,045,179  
  94,613    

Penn National Gaming, Inc.*

    5,107,210  
  63,811    

Planet Fitness, Inc. Class A*

    3,782,078  
   

 

 

 
    25,531,148  
   

 

 

 
      Diversified Financials - 2.8%  
  148,314    

Ares Management Corp. Class A

    6,273,682  
  42,632    

Hamilton Lane, Inc. Class A

    2,971,451  
  155,866    

Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT

    6,522,992  
  144,017    

PRA Group, Inc.*

    4,915,300  
   

 

 

 
      20,683,425  
   

 

 

 
      Food, Beverage & Tobacco - 0.9%  
  6,002    

Boston Beer Co., Inc. Class A*

    6,237,158  
   

 

 

 
      Health Care Equipment & Services - 8.4%  
  101,791    

1Life Healthcare, Inc.*

    2,871,524  
  125,516    

Globus Medical, Inc. Class A*

    6,541,894  
  193,039    

Health Catalyst, Inc.*

    6,655,985  
  61,744    

Hill-Rom Holdings, Inc.

    5,623,026  
  52,872    

Insulet Corp.*

    11,750,802  
  44,262    

LHC Group, Inc.*

    9,584,936  
  65,059    

Omnicell, Inc.*

    5,630,856  
  115,475    

Tandem Diabetes Care, Inc.*

    12,586,775  
   

 

 

 
      61,245,798  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 94.0% - (continued)  
      Insurance - 0.9%  
  139,680    

James River Group Holdings Ltd.

  $ 6,527,246  
   

 

 

 
      Materials - 0.8%  
  103,793    

Ingevity Corp.*

    5,696,160  
   

 

 

 
      Media & Entertainment - 0.8%  
  77,264    

Cardlytics, Inc.*(1)

    5,703,629  
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 17.7%  
  41,072    

Acceleron Pharma, Inc.*

    4,295,310  
  56,692    

Allakos, Inc.*(1)

    5,393,110  
  176,049    

ALX Oncology Holdings, Inc.*

    6,955,696  
  427,441    

Amicus Therapeutics, Inc.*

    7,621,273  
  87,495    

Apellis Pharmaceuticals, Inc.*

    2,791,090  
  46,319    

Arena Pharmaceuticals, Inc.*

    3,970,465  
  40,490    

Ascendis Pharma A/S ADR*

    6,614,041  
  51,343    

Blueprint Medicines Corp.*

    5,251,362  
  70,720    

ChemoCentryx, Inc.*

    3,394,560  
  125,362    

Constellation Pharmaceuticals, Inc.*

    2,459,602  
  170,000    

Freeline Therapeutics Holdings plc ADR*

    2,942,700  
  75,378    

Global Blood Therapeutics, Inc.*

    3,985,989  
  281,276    

Heron Therapeutics, Inc.*(1)

    4,587,612  
  664,886    

ImmunoGen, Inc.*

    3,749,957  
  119,109    

Iovance Biotherapeutics, Inc.*

    4,249,809  
  100,196    

Kodiak Sciences, Inc.*

    9,098,799  
  157,946    

Mersana Therapeutics, Inc.*

    2,846,187  
  46,271    

Mirati Therapeutics, Inc.*

    10,047,285  
  102,890    

NanoString Technologies, Inc.*

    3,770,918  
  110,914    

PTC Therapeutics, Inc.*

    5,788,602  
  69,816    

RAPT Therapeutics, Inc.*

    2,006,512  
  20,156    

Reata Pharmaceuticals, Inc. Class A*

    2,352,407  
  179,436    

Revance Therapeutics, Inc.*

    4,643,804  
  147,869    

TG Therapeutics, Inc.*

    3,736,650  
  68,916    

Turning Point Therapeutics, Inc.*

    6,353,366  
  156,235    

UroGen Pharma Ltd.*(1)

    3,518,412  
  163,472    

Y-mAbs Therapeutics, Inc.*

    6,986,793  
   

 

 

 
      129,412,311  
   

 

 

 
      Real Estate - 1.3%  
  305,785    

Essential Properties Realty Trust, Inc. REIT

    5,051,568  
  109,225    

Redfin Corp.*

    4,562,328  
   

 

 

 
      9,613,896  
   

 

 

 
      Retailing - 4.8%  
  3,136,600    

Allstar Co.(3)(4)(7)

    2,634,744  
  97,593    

Five Below, Inc.*

    13,013,051  
  127,621    

Floor & Decor Holdings, Inc. Class A*

    9,316,333  
  103,797    

Ollie’s Bargain Outlet Holdings, Inc.*

    9,039,681  
  26,907    

Tory Burch LLC*(2)(3)(4)

    1,110,201  
   

 

 

 
      35,114,010  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 5.3%  
  67,408    

ACM Research, Inc. Class A*

    4,743,501  
  76,107    

Entegris, Inc.

    5,690,520  
  116,552    

First Solar, Inc.*

    10,145,269  
  69,233    

MKS Instruments, Inc.

    7,504,165  
  489,915    

Tower Semiconductor Ltd.*

    10,337,207  
   

 

 

 
    38,420,662  
   

 

 

 
      Software & Services - 13.8%  
  194,094    

2U, Inc.*

    7,152,364  
  208,043    

Digital Turbine, Inc.*

    5,962,512  
  86,821    

Endava plc ADR*

    5,547,862  
  53,593    

Five9, Inc.*

    8,131,130  
  26,389    

HubSpot, Inc.*

    7,654,657  
  86,443    

j2 Global, Inc.*

    5,867,751  
  150,332    

LiveRamp Holdings, Inc.*

    9,935,442  
  81,288    

Manhattan Associates, Inc.*

    6,950,124  
  150,721    

Mimecast Ltd.*

    5,759,049  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  72  

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 94.0% - (continued)  
      Software & Services - 13.8% - (continued)  
  183,427    

PagerDuty, Inc.*(1)

  $ 4,970,872  
  47,853    

Paylocity Holding Corp.*

    8,877,688  
  168,956    

Perficient, Inc.*

    6,616,317  
  75,262    

Q2 Holdings, Inc.*

    6,866,905  
  173,706    

Rapid7, Inc.*

    10,757,613  
   

 

 

 
    101,050,286  
   

 

 

 
      Technology Hardware & Equipment - 2.8%  
  165,343    

II-VI, Inc.*

    7,518,146  
  60,446    

Lumentum Holdings, Inc.*

    4,998,280  
  70,059    

Novanta, Inc.*

    7,616,814  
   

 

 

 
    20,133,240  
   

 

 

 
      Telecommunication Services - 1.3%  
  60,840    

Bandwidth, Inc. Class A*

    9,755,998  
   

 

 

 
      Transportation - 1.3%  
  63,004    

Saia, Inc.*

    9,303,171  
   

 

 

 
 

Total Common Stocks
(cost $519,803,203)

  $ 686,549,165  
   

 

 

 
EXCHANGE-TRADED FUNDS - 3.0%  
      Other Investment Pools & Funds - 3.0%  
  97,571    

iShares Russell Growth ETF(1)

  $ 21,774,920  
   

 

 

 
 

Total Exchange-Traded Funds
(cost $20,556,552)

  $ 21,774,920  
   

 

 

 
CONVERTIBLE PREFERRED STOCKS - 0.3%  
      Retailing - 0.3%  
  47,489    

Honest Co., Inc. Series D*(2)(3)(4)

  $ 1,956,547  
   

 

 

 
 

Total Convertible Preferred Stocks
(cost $2,172,859)

  $ 1,956,547  
   

 

 

 
ESCROWS - 0.0%(5)  
      Software & Services - 0.0%  
  98,033    

Veracode, Inc.*(2)(3)(4)

  $ 65,780  
   

 

 

 
 

Total Escrows
(cost $—)

  $ 65,780  
   

 

 

 
 

Total Long-Term Investments
(cost $542,532,614)

  $ 710,346,412  
   

 

 

 
SHORT-TERM INVESTMENTS - 4.8%  
      Repurchase Agreements - 1.7%  
  12,803,053    

Fixed Income Clearing Corp. Repurchase Agreement dated 10/30/2020 at 0.060%, due on 11/02/2020 with a maturity value of $12,803,117; collateralized by U.S. Treasury Note at 2.250%, maturing 11/15/2027, with a market value of $13,059,211

  $ 12,803,053  
   

 

 

 
      Securities Lending Collateral - 3.1%      
  22,579,929    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(6)

    22,579,929  
  22,789    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(6)

    22,789  
   

 

 

 
      22,602,718  
   

 

 

 
 

Total Short-Term Investments
(cost $35,405,771)

  $ 35,405,771  
   

 

 

 
 

Total Investments
(cost $577,938,385)

    102.1    $ 745,752,183  
   

 

 

    

 

 

 
 

Other Assets and Liabilities

    (2.1 )%       (15,535,770
 

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 730,216,413  
   

 

 

    

 

 

 
Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Investment valued using significant unobservable inputs.

 

(3) 

These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At October 31, 2020, the aggregate fair value of these securities was $5,767,272, which represented 0.8% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(4) 

Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $5,767,272 or 0.8% of net assets.

 

Period
Acquired
    

Security Name

  Shares/
Par Value
    Total Cost     Market Value  
  08/2011      Allstar Co.     3,136,600     $ 1,364,479     $ 2,634,744  
  08/2015      Honest Co., Inc. Series D Convertible
Preferred
    47,489       2,172,859       1,956,547  
  11/2013      Tory Burch LLC     26,907       2,108,912       1,110,201  
  04/2017      Veracode, Inc.     98,033             65,780  
      

 

 

   

 

 

 
       $ 5,646,250     $ 5,767,272  
      

 

 

   

 

 

 

 

(5) 

Share amount represents shares of the issuer previously held that resulted in receipt of the escrow.

 

(6) 

Current yield as of period end.

 

(7) 

Affiliated company – The Fund owns greater than 5% of the outstanding voting securities of this issuer.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  73  

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

           

Automobiles & Components

   $ 15,233,029      $ 15,233,029      $      $  

Banks

     17,119,376        17,119,376                

Capital Goods

     92,333,323        92,333,323                

Commercial & Professional Services

     20,007,785        20,007,785                

Consumer Durables & Apparel

     57,427,514        57,427,514                

Consumer Services

     25,531,148        25,531,148                

Diversified Financials

     20,683,425        20,683,425                

Food, Beverage & Tobacco

     6,237,158        6,237,158                

Health Care Equipment & Services

     61,245,798        61,245,798                

Insurance

     6,527,246        6,527,246                

Materials

     5,696,160        5,696,160                

Media & Entertainment

     5,703,629        5,703,629                

Pharmaceuticals, Biotechnology & Life Sciences

     129,412,311        129,412,311                

Real Estate

     9,613,896        9,613,896                

Retailing

     35,114,010        31,369,065        2,634,744        1,110,201  

Semiconductors & Semiconductor Equipment

     38,420,662        38,420,662                

Software & Services

     101,050,286        101,050,286                

Technology Hardware & Equipment

     20,133,240        20,133,240                

Telecommunication Services

     9,755,998        9,755,998                

Transportation

     9,303,171        9,303,171                

Exchange-Traded Funds

     21,774,920        21,774,920                

Convertible Preferred Stocks

     1,956,547                      1,956,547  

Escrows

     65,780                      65,780  

Short-Term Investments

     35,405,771        22,602,718        12,803,053         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     745,752,183      $     727,181,858      $     15,437,797      $     3,132,528  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, investments valued at $721,418 were transferred out of Level 3 due to the initiation of a vendor providing prices that are based on market activity which has been determined to be significant observable input and there were no transfers in to Level 3.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for year ended October 31, 2020 is not presented.

 

The accompanying notes are an integral part of these financial statements.

 

 

  74  

 


Hartford Domestic Equity Funds

Glossary (abbreviations used in the preceding Schedules of Investments)

 

 

 

Currency Abbreviations:

USD

   United States Dollar
Index Abbreviations:

S&P

   Standard & Poor’s
Other Abbreviations:

ADR

   American Depositary Receipt

ETF

   Exchange-Traded Fund

REIT

   Real Estate Investment Trust

 

 

  75  

 


Hartford Domestic Equity Funds

Statements of Assets and Liabilities

October 31, 2020

 

 

 

     The Hartford
Capital
Appreciation
Fund
     Hartford
Core
Equity Fund
     The Hartford
Dividend and
Growth Fund
     The Hartford
Equity
Income Fund
 

Assets:

 

  

Investments in securities, at market value(1)

   $     6,265,796,349      $     8,333,186,070      $     8,901,241,526      $     3,633,574,433  

Repurchase agreements

     77,872,403        153,723,081        180,291,484        24,913,579  

Cash

     34,137,745        67,035,341        79,308,189        10,864,611  

Cash collateral held for securities on loan

     700,269                       

Foreign currency

     1,253                      541,492  

Receivables:

           

Investment securities sold

     38,329,006        4,298,893        6,014,870        18,555,001  

Fund shares sold

     1,138,333        44,184,112        23,475,013        8,829,226  

Dividends and interest

     3,199,874        8,735,279        14,709,657        5,146,241  

Securities lending income

     37,927               119        118  

Variation margin on futures contracts

     3,946,827        4,831,998                

Tax reclaims

     610,182               1,646,508        1,596,093  

Other assets

     116,605        269,002        272,185        128,265  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

     6,425,886,773        8,616,263,776        9,206,959,551        3,704,149,059  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Obligation to return securities lending collateral

     14,005,385                       

Payables:

           

Investment securities purchased

     43,952,370        10,342,676               4,385,143  

Fund shares redeemed

     5,280,409        9,149,730        11,153,129        4,771,517  

Investment management fees

     3,794,606        2,510,885        4,901,068        2,034,710  

Transfer agent fees

     1,079,305        788,755        1,020,504        456,636  

Accounting services fees

     79,871        105,356        113,371        45,954  

Board of Directors’ fees

     25,704        27,431        35,020        14,982  

Distribution fees

     227,278        132,763        171,578        93,196  

Accrued expenses

     484,728        453,749        674,625        301,734  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     68,929,656        23,511,345        18,069,295        12,103,872  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net assets

   $ 6,356,957,117      $ 8,592,752,431      $ 9,188,890,256      $ 3,692,045,187  
  

 

 

    

 

 

    

 

 

    

 

 

 

Summary of Net Assets:

           

Capital stock and paid-in-capital

   $ 5,056,809,285      $ 6,644,607,298      $ 6,853,374,097      $ 3,037,413,153  

Distributable earnings (loss)

     1,300,147,832        1,948,145,133        2,335,516,159        654,632,034  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net assets

   $ 6,356,957,117      $ 8,592,752,431      $ 9,188,890,256      $ 3,692,045,187  
  

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

     1,540,000,000        825,000,000        1,175,000,000        675,000,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Par value

   $ 0.0010      $ 0.0010      $ 0.0010      $ 0.0010  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class A:  Net asset value per share

   $ 38.39      $ 36.04      $ 24.26      $ 17.55  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Maximum offering price per share

   $ 40.62      $ 38.14      $ 25.67      $ 18.57  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     120,997,155        31,659,287        139,583,976        77,809,160  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 4,645,676,559      $ 1,140,993,988      $ 3,385,906,740      $ 1,365,895,157  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class C:  Net asset value per share

   $ 27.45      $ 32.62      $ 23.31      $ 17.46  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     6,459,517        13,612,181        5,937,491        10,991,890  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 177,309,072      $ 443,989,298      $ 138,431,128      $ 191,916,728  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class I:  Net asset value per share

   $ 38.66      $ 36.16      $ 24.12      $ 17.44  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     15,107,544        81,219,126        69,718,154        56,080,307  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 584,047,831      $ 2,936,717,868      $ 1,681,760,617      $ 977,949,937  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R3:  Net asset value per share

   $ 43.14      $ 36.54      $ 24.65      $ 17.59  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     983,973        1,277,190        2,217,136        1,807,052  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 42,448,890      $ 46,674,283      $ 54,641,774      $ 31,778,493  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R4:  Net asset value per share

   $ 44.91      $ 37.20      $ 24.84      $ 17.62  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     728,868        4,550,279        3,313,133        2,349,379  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 32,731,887      $ 169,266,695      $ 82,299,383      $ 41,385,986  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R5:  Net asset value per share

   $ 45.94      $ 36.44      $ 24.95      $ 17.71  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     744,262        5,179,440        7,128,739        3,180,335  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 34,188,283      $ 188,737,580      $ 177,851,256      $ 56,329,069  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  76  

 


Hartford Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     The Hartford
Capital
Appreciation
Fund
     Hartford
Core
Equity Fund
     The Hartford
Dividend and
Growth Fund
     The Hartford
Equity
Income Fund
 

Class R6:  Net asset value per share

   $ 46.27      $ 36.62      $ 24.95      $ 17.76  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     270,851        20,371,396        7,858,407        3,122,213  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 12,531,266      $ 746,017,707      $ 196,064,929      $ 55,447,628  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class Y:  Net asset value per share

   $ 46.24      $ 36.60      $ 24.95      $ 17.76  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     2,230,782        18,269,217        29,478,704        4,594,475  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 103,151,672      $ 668,654,738      $ 735,617,825      $ 81,614,736  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class F:  Net asset value per share

   $ 38.66      $ 36.19      $ 24.10      $ 17.44  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     18,747,899        62,217,935        113,522,590        51,024,560  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 724,871,657      $ 2,251,700,274      $ 2,736,316,604      $ 889,727,453  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost of investments

   $ 5,337,210,426      $ 6,536,334,717      $ 6,967,892,409      $ 3,064,879,795  

Cost of foreign currency

   $ 1,241      $      $      $ 541,798  

(1) Includes Investment in securities on loan, at market value

   $ 12,892,695      $      $      $  

 

The accompanying notes are an integral part of these financial statements.

 

 

  77  

 


Hartford Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     The Hartford
Growth
Opportunities
Fund
     The Hartford
Healthcare Fund
     The Hartford
MidCap Fund
     The Hartford
MidCap
Value Fund
 

Assets:

 

  

Investments in securities, at market value(1)

   $ 6,251,620,083      $     1,470,725,837      $     11,825,057,281      $     596,054,698  

Repurchase agreements

     106,171,930        17,074,447        824,405        1,161,266  

Investments in affiliated investments, at market value

                   1,240,114,318         

Cash

     47,596,946        7,455,078        356,505        506,974  

Cash collateral held for securities on loan

     1,411,841        710,094        4,462,042         

Foreign currency

     20        18                

Receivables:

           

Investment securities sold

     102,990,055               38,661,494        3,626,736  

Fund shares sold

     11,051,911        681,438        13,705,982        879,075  

Dividends and interest

     830,784        984,853        1,429,302        160,695  

Securities lending income

     51,655        10,350        34,365        358  

Tax reclaims

     407,216        194,093                

Other assets

     148,614        74,625        239,614        52,540  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

     6,522,281,055        1,497,910,833        13,124,885,308        602,442,342  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Obligation to return securities lending collateral

     28,236,824        14,201,882        89,240,840         

Payables:

           

Investment securities purchased

     85,564,619        13,698,746        26,924,057        826,039  

Fund shares redeemed

     7,916,736        2,748,595        28,862,057        1,165,241  

Investment management fees

     4,039,982        1,107,492        8,133,169        384,555  

Transfer agent fees

     798,824        270,955        1,733,456        95,936  

Accounting services fees

     80,337        18,243        161,257        7,360  

Board of Directors’ fees

     20,923        5,468        52,372        2,488  

Distribution fees

     187,573        58,202        193,799        12,489  

Accrued expenses

     328,009        132,662        1,423,989        170,452  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     127,173,827        32,242,245        156,724,996        2,664,560  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net assets

   $ 6,395,107,228      $ 1,465,668,588      $ 12,968,160,312      $ 599,777,782  
  

 

 

    

 

 

    

 

 

    

 

 

 

Summary of Net Assets:

           

Capital stock and paid-in-capital

   $ 3,878,706,203      $ 1,001,227,147      $ 9,729,103,957      $ 623,873,126  

Distributable earnings (loss)

     2,516,401,025        464,441,441        3,239,056,355        (24,095,344
  

 

 

    

 

 

    

 

 

    

 

 

 

Net assets

   $ 6,395,107,228      $ 1,465,668,588      $ 12,968,160,312      $ 599,777,782  
  

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

         19,850,000,000        485,000,000        1,105,000,000        475,000,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Par value

   $ 0.0001      $ 0.0010      $ 0.0010      $ 0.0010  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class A:  Net asset value per share

   $ 54.65      $ 40.91      $ 30.63      $ 12.21  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Maximum offering price per share

   $ 57.83      $ 43.29      $ 32.41      $ 12.92  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     53,780,676        18,243,158        88,950,902        20,078,527  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 2,939,376,054      $ 746,241,687      $ 2,724,316,316      $ 245,111,692  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class C:  Net asset value per share

   $ 26.47      $ 31.63      $ 20.34      $ 9.66  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     12,171,673        4,420,668        18,681,407        987,228  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 322,226,227      $ 139,847,201      $ 380,033,415      $ 9,533,262  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class I:  Net asset value per share

   $ 58.51      $ 43.53      $ 31.87      $ 12.36  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     29,434,477        8,648,856        121,379,951        1,596,169  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 1,722,099,656      $ 376,518,115      $ 3,867,925,274      $ 19,721,564  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R3:  Net asset value per share

   $ 54.41      $ 41.90      $ 34.38      $ 12.91  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     879,959        742,003        2,676,465        411,766  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 47,880,108      $ 31,090,173      $ 92,022,685      $ 5,317,453  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R4:  Net asset value per share

   $ 58.79      $ 44.63      $ 36.18      $ 13.21  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     1,206,237        561,944        5,669,196        670,294  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 70,918,280      $ 25,077,788      $ 205,114,118      $ 8,856,532  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R5:  Net asset value per share

   $ 62.69      $ 47.24      $ 37.58      $ 13.44  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     369,571        231,523        9,894,283        105,882  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 23,170,080      $ 10,936,937      $ 371,791,275      $ 1,423,022  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  78  

 


Hartford Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     The Hartford
Growth
Opportunities
Fund
     The Hartford
Healthcare Fund
     The Hartford
MidCap Fund
     The Hartford
MidCap
Value Fund
 

Class R6:  Net asset value per share

   $ 64.01      $ 47.99      $ 38.09      $  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     633,639        80,962        46,192,753         
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 40,558,620      $ 3,885,480      $ 1,759,581,052      $  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class Y:  Net asset value per share

   $ 63.96      $ 47.95      $ 38.02      $ 13.47  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     6,780,694        2,028,384        30,102,599        743,105  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 433,672,074      $ 97,263,371      $ 1,144,623,929      $ 10,009,406  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class F:  Net asset value per share

   $ 58.77      $ 43.70      $ 32.00      $ 12.36  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     13,531,763        796,490        75,705,926        24,255,252  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 795,206,129      $ 34,807,836      $ 2,422,752,248      $ 299,804,851  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost of investments

   $ 4,774,546,903      $ 1,203,197,130      $ 9,787,647,437      $ 581,455,556  

Cost of affiliated investments

   $      $      $ 1,461,281,048      $  

Cost of foreign currency

   $ 20      $ 18      $      $  

(1) Includes Investment in securities on loan, at market value

   $ 36,965,203      $ 13,609,564      $ 109,657,728      $  

 

The accompanying notes are an integral part of these financial statements.

 

 

  79  

 


Hartford Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     Hartford Quality
Value Fund
     The Hartford
Small Cap
Growth Fund
     Hartford
Small Cap
Value Fund
    The Hartford
Small
Company Fund
 

Assets:

 

 

Investments in securities, at market value(1)

   $ 167,830,159      $ 806,189,015      $ 80,965,751     $ 730,314,386  

Repurchase agreements

     1,505,191        2,555,212        354,275       12,803,053  

Investments in affiliated investments, at market value

                         2,634,744  

Cash

     676,258        1,117,382        155,259       5,598,264  

Cash collateral held for securities on loan

            534,739        92,111       1,189,617  

Foreign currency

     7                      

Receivables:

          

From affiliates

     22,108               10,497       4,649  

Investment securities sold

            4,528,829        846,960       5,760,281  

Fund shares sold

     24,565        334,938        20,234       834,875  

Dividends and interest

     314,513        262,726        38,855       121,410  

Securities lending income

            2,155        419       15,328  

Tax reclaims

     51,979                      

Other assets

     50,789        63,030        50,663       71,080  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

     170,475,569        815,588,026        82,535,024       759,347,687  
  

 

 

    

 

 

    

 

 

   

 

 

 

Liabilities:

          

Obligation to return securities lending collateral

            10,694,775        1,842,216       23,792,335  

Payables:

          

Investment securities purchased

            3,263,289        1,164,181       3,533,716  

Fund shares redeemed

     744,520        808,984        73,713       998,084  

Investment management fees

     68,138        510,305        47,198       510,270  

Transfer agent fees

     53,072        135,015        14,584       115,705  

Accounting services fees

     2,117        9,882        943       8,919  

Board of Directors’ fees

     738        3,610        332       2,482  

Distribution fees

     6,564        12,121        1,500       19,293  

Accrued expenses

     43,184        129,094        26,083       150,470  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

     918,333        15,567,075        3,170,750       29,131,274  
  

 

 

    

 

 

    

 

 

   

 

 

 

Net assets

   $ 169,557,236      $ 800,020,951      $ 79,364,274     $ 730,216,413  
  

 

 

    

 

 

    

 

 

   

 

 

 

Summary of Net Assets:

          

Capital stock and paid-in-capital

   $ 163,891,027      $ 570,095,016      $ 90,685,089     $ 488,309,764  

Distributable earnings (loss)

     5,666,209        229,925,935        (11,320,815     241,906,649  
  

 

 

    

 

 

    

 

 

   

 

 

 

Net assets

   $ 169,557,236      $ 800,020,951      $ 79,364,274     $ 730,216,413  
  

 

 

    

 

 

    

 

 

   

 

 

 

Shares authorized

         22,100,000,000            22,100,000,000            860,000,000           525,000,000  
  

 

 

    

 

 

    

 

 

   

 

 

 

Par value

   $ 0.0001      $ 0.0001      $ 0.0010     $ 0.0010  
  

 

 

    

 

 

    

 

 

   

 

 

 

Class A:  Net asset value per share

   $ 18.61      $ 51.35      $ 8.29     $ 25.50  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Maximum offering price per share

   $ 19.69      $ 54.34      $ 8.77     $ 26.98  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Shares outstanding

     7,530,559        3,864,502        3,980,478       15,276,258  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Net Assets

   $ 140,154,057      $ 198,429,981      $ 32,995,545     $ 389,496,289  
  

 

 

    

 

 

    

 

 

   

 

 

 

Class C:  Net asset value per share

   $ 15.78      $ 34.22      $ 7.12     $ 15.97  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Shares outstanding

     232,762        360,094        283,714       567,304  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Net Assets

   $ 3,672,675      $ 12,323,417      $ 2,019,841     $ 9,058,125  
  

 

 

    

 

 

    

 

 

   

 

 

 

Class I:  Net asset value per share

   $ 18.37      $ 54.23      $ 8.31     $ 27.31  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Shares outstanding

     594,799        1,819,603        350,777       1,311,135  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Net Assets

   $ 10,926,656      $ 98,673,398      $ 2,915,230     $ 35,806,111  
  

 

 

    

 

 

    

 

 

   

 

 

 

Class R3:  Net asset value per share

   $ 18.92      $ 50.47      $ 8.62     $ 28.02  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Shares outstanding

     45,192        148,296        52,991       500,143  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Net Assets

   $ 854,913      $ 7,484,736      $ 456,530     $ 14,012,918  
  

 

 

    

 

 

    

 

 

   

 

 

 

Class R4:  Net asset value per share

   $ 19.13      $ 53.64      $ 8.76     $ 30.22  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Shares outstanding

     203,132        581,079        3,474       442,170  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Net Assets

   $ 3,886,636      $ 31,168,711      $ 30,436     $ 13,362,959  
  

 

 

    

 

 

    

 

 

   

 

 

 

Class R5:  Net asset value per share

   $ 19.32      $ 57.10      $ 8.74     $ 32.33  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Shares outstanding

     11,397        1,256,715        1,099       121,740  
  

 

 

    

 

 

    

 

 

   

 

 

 

         Net Assets

   $ 220,232      $ 71,753,500      $ 9,603     $ 3,936,384  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  80  

 


Hartford Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     Hartford Quality
Value Fund
     The Hartford
Small Cap
Growth Fund
     Hartford
Small Cap
Value Fund
     The Hartford
Small
Company Fund
 

Class R6:  Net asset value per share

   $ 19.38      $ 58.07      $ 8.74      $ 33.12  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     25,024        1,383,201        27,462        46,200  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 485,028      $ 80,327,403      $ 240,117      $ 1,530,093  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class Y:  Net asset value per share

   $ 19.35      $ 58.07      $ 8.73      $ 33.07  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     19,744        4,399,395        28,626        603,430  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 382,042      $ 255,483,948      $ 249,872      $ 19,956,447  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class F:  Net asset value per share

   $ 18.31      $ 54.48      $ 8.31      $ 27.49  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     490,060        814,489        4,864,485        8,842,874  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 8,974,997      $ 44,375,857      $ 40,447,100      $ 243,057,087  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost of investments

   $ 164,759,654      $ 635,730,010      $ 84,176,657      $ 576,573,906  

Cost of investments in affiliated investment companies

   $      $      $      $ 1,364,479  

Cost of foreign currency

   $ 7      $      $      $  

(1) Includes Investment in securities on loan, at market value

   $      $ 10,469,863      $ 1,790,215      $ 22,999,926  

 

The accompanying notes are an integral part of these financial statements.

 

 

  81  

 


Hartford Domestic Equity Funds

Statements of Operations

For the Year Ended October 31, 2020

 

 

 

     The Hartford
Capital
Appreciation
Fund
    Hartford Core
Equity Fund
    The Hartford
Dividend and
Growth Fund
    The Hartford
Equity Income
Fund
 

Investment Income:

 

     

Dividends

   $ 99,864,888     $ 104,932,039     $ 234,277,298     $ 111,909,187  

Interest

     853,973       1,496,383       2,001,738       416,817  

Securities lending

     1,030,093       177,870       4,666       27,940  

Less: Foreign tax withheld

     (149,098           (2,005,806     (1,577,676
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income, net

     101,599,856       106,606,292       234,277,896       110,776,268  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Investment management fees

     43,502,742       23,982,045       54,488,076       23,723,530  

Transfer agent fees

        

Class A

     5,597,869       1,022,164       3,797,189       1,388,736  

Class C

     325,041       378,574       233,945       253,318  

Class I

     526,129       2,003,719       1,220,306       802,637  

Class R3

     99,860       77,650       123,816       73,126  

Class R4

     53,171       244,022       150,244       68,815  

Class R5

     39,464       205,277       183,350       71,131  

Class R6

     2,293       16,412       6,224       2,195  

Class Y

     143,993       539,469       664,220       93,232  

Class F

     4,326       10,243       19,054       12,957  

Distribution fees

        

Class A

     11,618,719       2,513,805       8,784,299       3,615,052  

Class C

     2,223,791       4,114,748       1,693,321       2,442,621  

Class R3

     228,154       198,224       294,835       182,774  

Class R4

     87,540       392,660       240,246       117,922  

Custodian fees

     36,744       22,212       35,168       18,220  

Registration and filing fees

     163,628       507,252       350,383       191,761  

Accounting services fees

     1,038,904       1,082,855       1,341,516       590,365  

Board of Directors’ fees

     198,025       232,331       277,603       116,170  

Audit and tax fees

     44,622       20,960       22,090       20,422  

Other expenses

     860,588       912,071       1,245,198       563,704  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses (before waivers, reimbursements and fees paid indirectly)

     66,795,603       38,476,693       75,171,083       34,348,688  
  

 

 

   

 

 

   

 

 

   

 

 

 

Transfer agent fee waivers

     (72,277     (121,421     (359,427     (41,632

Distribution fee reimbursements

     (181,165     (88,477     (82,490     (10,502

Commission recapture

     (63,860     (37,833     (28,093     (19,688
  

 

 

   

 

 

   

 

 

   

 

 

 

Total waivers, reimbursements and fees paid indirectly

     (317,302     (247,731     (470,010     (71,822
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net

     66,478,301       38,228,962       74,701,073       34,276,866  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     35,121,555       68,377,330       159,576,823       76,499,402  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions on:

        

Investments

     314,392,099       (76,820,380     194,601,688       41,216,861  

Futures contracts

     7,584,431       22,139,276              

Other foreign currency transactions

     21,835             (51,583     (26,185
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     321,998,365       (54,681,104     194,550,105       41,190,676  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions of:

        

Investments

     178,137,084       766,626,069       (496,987,234     (294,587,064

Futures contracts

     (3,525,277     (3,628,070            

Translation of other assets and liabilities in foreign currencies

     28,429                   113,878  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     174,640,236       762,997,999       (496,987,234     (294,473,186
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     496,638,601       708,316,895       (302,437,129     (253,282,510
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     531,760,156     $     776,694,225     $     (142,860,306   $     (176,783,108
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  82  

 


Hartford Domestic Equity Funds

Statements of Operations – (continued)

For the Year Ended October 31, 2020

 

 

 

     The Hartford
Growth
Opportunities
Fund
    The Hartford
Healthcare
Fund
    The Hartford
MidCap Fund
    The Hartford
MidCap
Value Fund
 

Investment Income:

 

     

Dividends

   $ 19,235,984     $ 13,132,507     $ 109,196,679     $      11,491,867  

Dividends from affiliated investments

                 2,418,446        

Interest

     473,424       146,319       174,315       101,060  

Securities lending

     2,928,202       162,695       758,643       7,147  

Less: Foreign tax withheld

           (181,386     (51,612     (38,037
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income, net

     22,637,610       13,260,135       112,496,471       11,562,037  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Investment management fees

     36,895,406       11,951,374       95,036,863       4,670,532  

Transfer agent fees

        

Class A

     2,647,253       927,159       3,101,950       519,406  

Class C

     321,588       196,457       532,417       26,696  

Class I

     1,306,452       322,540       5,484,354       23,236  

Class R3

     86,555       68,852       208,042       14,212  

Class R4

     93,470       40,162       384,981       16,935  

Class R5

     23,756       9,377       436,524       1,504  

Class R6

     1,211       124       70,095        

Class Y

     177,253       87,338       1,458,213       11,771  

Class F

     5,940       1,202       26,440       5,877  

Distribution fees

        

Class A

     6,083,567       1,811,349       6,801,824       681,820  

Class C

     2,927,640       1,420,669       4,332,036       124,800  

Class R3

     221,041       167,265       472,493       32,281  

Class R4

     164,264       65,876       578,027       24,889  

Custodian fees

     24,756       28,067       64,186       6,067  

Registration and filing fees

     250,212       135,689       414,836       129,892  

Accounting services fees

     830,856       216,704       1,971,540       99,815  

Board of Directors’ fees

     163,158       42,952       416,221       19,302  

Audit and tax fees

     41,234       22,380       23,593       19,182  

Other expenses

     599,933       210,032       2,596,566       281,505  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses (before waivers, reimbursements and fees paid indirectly)

     52,865,545       17,725,568       124,411,201       6,709,722  
  

 

 

   

 

 

   

 

 

   

 

 

 

Transfer agent fee waivers

     (90,444     (41,587     (1,454,925     (4,817

Distribution fee reimbursements

     (152,051     (23,878     (101,258     (5,818

Commission recapture

     (68,961     (4,800     (143,176     (12,852
  

 

 

   

 

 

   

 

 

   

 

 

 

Total waivers, reimbursements and fees paid indirectly

     (311,456     (70,265     (1,699,359     (23,487
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net

     52,554,089       17,655,303       122,711,842       6,686,235  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     (29,916,479     (4,395,168     (10,215,371     4,875,802  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions on:

        

Investments

     1,058,589,110       203,393,837       1,856,024,240       (39,231,763

Investments in affiliated investments

                 (153,261,094      

Other foreign currency transactions

     37,550       5,099       (6     2,784  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

         1,058,626,660           203,398,936           1,702,763,140       (39,228,979
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions of:

        

Investments

     1,003,047,055       73,928,189       (733,778,772     (52,937,572

Investments in affiliated investments

                 (32,340,493      

Translation of other assets and liabilities in foreign currencies

     24,812       12,566             619  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     1,003,071,867       73,940,755       (766,119,265     (52,936,953
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     2,061,698,527       277,339,691       936,643,875       (92,165,932
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ 2,031,782,048     $ 272,944,523     $ 926,428,504     $ (87,290,130
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  83  

 


Hartford Domestic Equity Funds

Statements of Operations – (continued)

For the Year Ended October 31, 2020

 

 

 

     Hartford
Quality Value
Fund
    The Hartford
Small Cap
Growth Fund
    Hartford
Small Cap
Value Fund
    The Hartford
Small
Company Fund
 

Investment Income:

 

     

Dividends

   $        5,800,711     $ 5,914,537     $        1,953,471     $ 3,061,686  

Dividends from affiliated investments

                       691,539  

Interest

     24,046       62,111       4,556       104,634  

Securities lending

           92,773       21,996       270,470  

Less: Foreign tax withheld

     (65,004                 (2,438
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income, net

     5,759,753       6,069,421       1,980,023       4,125,891  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Investment management fees

     837,229       6,615,245       595,198       5,135,354  

Transfer agent fees

        

Class A

     311,177       452,590       92,471       577,734  

Class C

     13,076       18,208       6,148       22,928  

Class I

     11,799       136,630       5,148       32,272  

Class R3

     2,132       18,806       1,119       28,356  

Class R4

     7,673       57,943       80       21,174  

Class R5

     261       85,882       14       4,028  

Class R6

     8       2,692       6       8  

Class Y

     540       324,277       372       15,115  

Class F

     318       508       332       4,373  

Distribution fees

        

Class A

     381,147       477,451       92,361       828,382  

Class C

     52,281       138,473       25,547       91,640  

Class R3

     4,840       42,738       2,541       66,352  

Class R4

     11,838       87,375       117       33,834  

Custodian fees

     4,710       9,037       3,696       15,752  

Registration and filing fees

     115,257       128,782       117,587       138,040  

Accounting services fees

     28,944       144,178       13,265       102,488  

Board of Directors’ fees

     5,250       27,411       2,466       19,884  

Audit and tax fees

     27,344       19,157       19,359       34,709  

Other expenses

     45,702       222,079       24,958       223,242  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses (before waivers, reimbursements and fees paid indirectly)

     1,861,526       9,009,462       1,002,785       7,395,665  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expense waivers

     (208,565           (96,925     (17,848

Transfer agent fee waivers

           (206,467            

Distribution fee reimbursements

     (7,904     (14,314     (3,319     (14,647

Commission recapture

     (760     (10,524     (1,915     (12,823
  

 

 

   

 

 

   

 

 

   

 

 

 

Total waivers, reimbursements and fees paid indirectly

     (217,229     (231,305     (102,159     (45,318
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net

     1,644,297       8,778,157       900,626       7,350,347  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     4,115,456       (2,708,736     1,079,397       (3,224,456
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Foreign Currency Transactions on:

        

Investments

     (2,404,683     76,991,681       (8,845,778     80,689,684  

Other foreign currency transactions

     (3,577           152       (2,081
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Foreign Currency Transactions

     (2,408,260     76,991,681       (8,845,626     80,687,603  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments and Foreign Currency Transactions of:

        

Investments

     (16,680,808     50,280,658       (8,048,202     107,374,719  

Investments in affiliated investment companies

                       1,913,326  

Translation of other assets and liabilities in foreign currencies

     2,011                    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments and Foreign Currency Transactions

     (16,678,797     50,280,658       (8,048,202     109,288,045  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments and Foreign Currency Transactions

     (19,087,057     127,272,339       (16,893,828     189,975,648  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (14,971,601   $     124,563,603     $ (15,814,431   $     186,751,192  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  84  

 


Hartford Domestic Equity Funds

Statements of Changes in Net Assets

 

 

 

     The Hartford
Capital Appreciation Fund
    Hartford
Core Equity Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

 

Net investment income (loss)

   $ 35,121,555     $ 32,178,066     $ 68,377,330     $ 46,421,862  

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     321,998,365       313,758,005       (54,681,104     100,491,586  

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     174,640,236       696,148,729       762,997,999       578,564,751  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     531,760,156       1,042,084,800       776,694,225       725,478,199  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (233,332,626     (706,880,408     (22,933,276     (32,665,488

Class C

     (16,172,531     (77,462,288     (8,130,633     (13,165,205

Class I

     (33,414,797     (107,802,788     (50,034,683     (58,009,690

Class R3

     (1,922,241     (8,221,995     (766,121     (1,469,253

Class R4

     (1,528,792     (6,723,975     (3,662,366     (6,169,265

Class R5

     (1,654,005     (4,489,300     (6,433,518     (10,058,287

Class R6

     (3,567,961     (9,472,410     (7,619,916     (7,010,180

Class Y

     (8,300,069     (22,763,013     (10,460,626     (11,032,634

Class F

     (40,192,877     (127,729,846     (48,473,881     (33,816,031
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (340,085,899     (1,071,546,023     (158,515,020     (173,396,033
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

 

Sold

     393,860,254       488,499,323       4,431,360,869       2,583,350,592  

Issued on reinvestment of distributions

     327,641,306       1,028,835,269       151,792,918       165,763,267  

Redeemed

     (1,497,856,000     (1,724,498,541     (2,300,491,319     (1,079,118,925
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (776,354,440     (207,163,949     2,282,662,468       1,669,994,934  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (584,680,183     (236,625,172     2,900,841,673       2,222,077,100  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

 

Beginning of period

     6,941,637,300       7,178,262,472       5,691,910,758       3,469,833,658  
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     6,356,957,117     $     6,941,637,300     $     8,592,752,431     $     5,691,910,758  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  85  

 


Hartford Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford
Dividend and Growth Fund
    The Hartford
Equity Income Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

 

Net investment income (loss)

   $ 159,576,823     $ 152,429,025     $ 76,499,402     $ 83,954,241  

Net realized gain (loss) on investments and foreign currency transactions

     194,550,105       261,913,493       41,190,676       251,977,418  

Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions

     (496,987,234     705,555,576       (294,473,186     185,592,620  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     (142,860,306     1,119,898,094       (176,783,108     521,524,279  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (160,312,321     (376,562,728     (123,227,802     (139,419,928

Class C

     (7,036,533     (22,753,711     (20,643,364     (27,745,387

Class I

     (56,365,416     (95,343,423     (79,079,559     (106,057,518

Class R3

     (2,526,370     (7,276,281     (3,167,178     (4,085,476

Class R4

     (4,441,817     (13,533,303     (4,104,853     (6,151,808

Class R5

     (8,627,986     (16,252,768     (6,408,419     (7,636,620

Class R6

     (6,208,413     (9,073,108     (4,420,613     (3,471,599

Class Y

     (32,073,450     (68,670,776     (8,372,101     (12,485,702

Class F

     (133,641,614     (288,913,297     (77,653,805     (76,875,225
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (411,233,920     (898,379,395     (327,077,694     (383,929,263
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

 

Sold

     2,466,834,298       1,316,713,660       870,782,771       684,129,579  

Issued on reinvestment of distributions

     395,743,447       867,611,541       313,924,345       367,118,559  

Redeemed

     (2,162,912,714     (1,593,432,163     (1,064,410,832     (1,256,628,479
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     699,665,031       590,893,038       120,296,284       (205,380,341
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     145,570,805       812,411,737       (383,564,518     (67,785,325
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

 

Beginning of period

     9,043,319,451       8,230,907,714       4,075,609,705       4,143,395,030  
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     9,188,890,256     $     9,043,319,451     $     3,692,045,187     $     4,075,609,705  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  86  

 


Hartford Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford
Growth Opportunities Fund
    The Hartford
Healthcare Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

 

Net investment income (loss)

   $ (29,916,479   $ (26,899,996   $ (4,395,168   $ (3,913,470

Net realized gain (loss) on investments and foreign currency transactions

     1,058,626,660       328,106,237       203,398,936       98,097,029  

Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions

     1,003,071,867       290,104,434       73,940,755       49,131,042  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     2,031,782,048       591,310,675       272,944,523       143,314,601  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (132,324,071     (456,838,651     (43,738,879     (48,565,116

Class C

     (33,402,683     (111,605,001     (11,289,417     (13,953,587

Class I

     (86,336,894     (353,498,531     (18,502,650     (25,648,483

Class R3

     (2,788,128     (10,699,557     (2,132,500     (2,630,413

Class R4

     (3,725,988     (17,113,553     (1,601,341     (2,166,993

Class R5

     (1,419,176     (4,132,294     (362,224     (547,097

Class R6

     (1,357,539     (2,565,390     (138,636      

Class Y

     (8,936,697     (24,851,439     (4,160,454     (3,369,356

Class F

     (31,543,831     (88,424,295     (1,805,276     (5,165,741
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (301,835,007     (1,069,728,711     (83,731,377     (102,046,786
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

 

Sold

     1,236,652,514       1,040,653,406       225,456,081       162,135,540  

Issued on reinvestment of distributions

     276,247,055       974,523,793       79,518,799       97,225,749  

Redeemed

     (1,570,077,091     (1,511,405,502     (300,020,713     (458,221,064
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (57,177,522     503,771,697       4,954,167       (198,859,775
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     1,672,769,519       25,353,661       194,167,313       (157,591,960
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

 

Beginning of period

     4,722,337,709       4,696,984,048       1,271,501,275       1,429,093,235  
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     6,395,107,228     $     4,722,337,709     $     1,465,668,588     $     1,271,501,275  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  87  

 


Hartford Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford
MidCap Fund
    The Hartford
MidCap Value Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

 

Net investment income (loss)

   $ (10,215,371   $ (17,375,474   $ 4,875,802     $ 5,214,816  

Net realized gain (loss) on investments and foreign currency transactions

     1,702,763,140       692,389,101       (39,228,979     15,796,293  

Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions

     (766,119,265     1,148,200,359       (52,936,953     60,487,724  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     926,428,504       1,823,213,986       (87,290,130     81,498,833  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (150,147,304     (289,440,848     (9,305,290     (31,904,637

Class C

     (38,059,233     (88,988,927     (469,443     (2,364,041

Class I

     (215,894,776     (397,398,146     (986,601     (3,672,119

Class R3

     (4,574,098     (10,655,554     (194,286     (947,049

Class R4

     (11,938,522     (27,102,479     (330,164     (1,216,557

Class R5

     (21,826,289     (45,165,553     (46,111     (805,091

Class R6

     (75,768,819     (108,955,955            

Class Y

     (67,701,427     (162,390,598     (388,031     (1,198,031

Class F

     (117,154,616     (183,904,712     (10,736,193     (29,727,333
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (703,065,084     (1,314,002,772     (22,456,119     (71,834,858
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

 

Sold

     3,049,644,964       3,932,057,467       143,137,588       140,081,421  

Issued on reinvestment of distributions

     674,235,988       1,257,169,368       22,332,350       70,997,863  

Redeemed

     (4,890,549,843     (4,084,043,517     (161,706,044     (145,764,489
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (1,166,668,891     1,105,183,318       3,763,894       65,314,795  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (943,305,471     1,614,394,532       (105,982,355     74,978,770  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

 

Beginning of period

     13,911,465,783       12,297,071,251       705,760,137       630,781,367  
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     12,968,160,312     $     13,911,465,783     $     599,777,782     $     705,760,137  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  88  

 


Hartford Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     Hartford
Quality Value Fund
    The Hartford
Small Cap Growth Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

 

Net investment income (loss)

   $ 4,115,456     $ 4,991,920     $ (2,708,736   $ (1,619,044

Net realized gain (loss) on investments and foreign currency transactions

     (2,408,260     6,013,760       76,991,681       14,715,285  

Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions

     (16,678,797     18,436,373       50,280,658       68,831,465  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     (14,971,601     29,442,053       124,563,603       81,927,706  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (8,585,823     (10,328,219     (3,152,385     (43,413,241

Class C

     (334,835     (488,659     (371,513     (6,352,380

Class I

     (704,282     (854,566     (2,950,208     (47,429,264

Class R3

     (57,990     (61,925     (162,662     (2,796,540

Class R4

     (303,759     (364,460     (630,158     (14,166,813

Class R5

     (12,405     (32,495     (1,205,841     (18,766,338

Class R6

     (1,828     (650     (971,533     (8,767,431

Class Y

     (33,830     (39,465     (5,261,028     (69,794,940

Class F

     (650,547     (6,128,466     (693,277     (9,900,355
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (10,685,299     (18,298,905     (15,398,605     (221,387,302
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

 

Sold

     14,502,495       16,762,137       261,523,570       366,698,768  

Issued on reinvestment of distributions

     10,505,584       18,080,940       14,907,961       209,847,653  

Redeemed

     (38,374,320     (120,327,472     (601,709,062     (518,321,132
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (13,366,241     (85,484,395     (325,277,531     58,225,289  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (39,023,141     (74,341,247)       (216,112,533     (81,234,307
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

 

Beginning of period

     208,580,377       282,921,624       1,016,133,484       1,097,367,791  
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     169,557,236     $     208,580,377     $     800,020,951     $     1,016,133,484  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  89  

 


Hartford Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     Hartford
Small Cap Value Fund
    The Hartford
Small Company Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

 

Net investment income (loss)

   $ 1,079,397     $ 1,171,073     $ (3,224,456   $ (2,934,571

Net realized gain (loss) on investments and foreign currency transactions

     (8,845,626     5,301,969       80,687,603       38,272,188  

Net changes in unrealized appreciation (depreciation) of investments

     (8,048,202     (2,603,683     109,288,045       34,222,341  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     (15,814,431     3,869,359       186,751,192       69,559,958  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (2,971,162     (12,609,836     (19,581,596     (50,850,996

Class C

     (232,432     (1,665,307     (922,638     (2,799,065

Class I

     (419,421     (1,179,686     (1,641,458     (4,870,629

Class R3

     (37,274     (126,981     (795,519     (2,677,758

Class R4

     (4,174     (11,402     (754,352     (2,412,769

Class R5

     (730     (8,637     (157,911     (403,513

Class R6

     (7,037     (2,456     (5,772     (21,469

Class Y

     (28,438     (115,661     (1,571,493     (5,332,405

Class F

     (3,318,166     (9,621,393     (11,316,929     (20,116,041
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (7,018,834     (25,341,359     (36,747,668     (89,484,645
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

 

Sold

     14,194,625       24,105,167       102,088,209       140,460,721  

Issued on reinvestment of distributions

     6,977,511       24,897,952       36,543,865       88,871,747  

Redeemed

     (23,873,812     (24,593,063     (164,590,834     (112,635,884
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (2,701,676     24,410,056       (25,958,760     116,696,584  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (25,534,941     2,938,056       124,044,764       96,771,897  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

 

Beginning of period

         104,899,215           101,961,159           606,171,649           509,399,752  
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $ 79,364,274     $ 104,899,215     $ 730,216,413     $ 606,171,649  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  90  

 


Hartford Domestic Equity Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Capital Appreciation Fund  

For the Year Ended October 31, 2020

 

A

  $   37.12     $   0.18     $   2.90     $   3.08     $   (0.17   $   (1.64   $   (1.81   $   38.39       8.57   $   4,645,677       1.07     1.07     0.48     84

C

    27.08       (0.07     2.08       2.01             (1.64     (1.64     27.45       7.78       177,309       1.85       1.85       (0.27     84  

I

    37.36       0.28       2.93       3.21       (0.27     (1.64     (1.91     38.66       8.88       584,048       0.79       0.79       0.77       84  

R3

    41.47       0.06       3.25       3.31             (1.64     (1.64     43.14       8.25       42,449       1.42       1.42       0.14       84  

R4

    43.06       0.20       3.39       3.59       (0.10     (1.64     (1.74     44.91       8.59       32,732       1.10       1.10       0.46       84  

R5

    44.04       0.33       3.47       3.80       (0.26     (1.64     (1.90     45.94       8.88       34,188       0.81       0.81       0.75       84  

R6

    44.34       0.43       3.44       3.87       (0.30     (1.64     (1.94     46.27       9.03       12,531       0.70       0.70       1.00       84  

Y

    44.32       0.36       3.49       3.85       (0.29     (1.64     (1.93     46.24       8.97       103,152       0.80       0.75       0.83       84  

F

    37.36       0.31       2.93       3.24       (0.30     (1.64     (1.94     38.66       9.00       724,872       0.70       0.70       0.85       84  

For the Year Ended October 31, 2019

 

A

  $ 37.88     $ 0.15     $ 4.81     $ 4.96     $ (0.11   $ (5.61   $ (5.72   $ 37.12       16.32   $ 4,831,749       1.07     1.07     0.42     68

C

    29.30       (0.09     3.48       3.39             (5.61     (5.61     27.08       15.45       278,394       1.83       1.83       (0.33     68  

I

    38.08       0.25       4.84       5.09       (0.20     (5.61     (5.81     37.36       16.66       658,302       0.79       0.79       0.70       68  

R3

    41.62       0.03       5.43       5.46             (5.61     (5.61     41.47       15.91       50,957       1.42       1.42       0.07       68  

R4

    42.94       0.16       5.63       5.79       (0.06     (5.61     (5.67     43.06       16.27       38,634       1.11       1.11       0.39       68  

R5

    43.80       0.28       5.75       6.03       (0.18     (5.61     (5.79     44.04       16.64       38,808       0.80       0.80       0.68       68  

R6

    44.07       0.33       5.78       6.11       (0.23     (5.61     (5.84     44.34       16.74       80,535       0.70       0.70       0.78       68  

Y

    44.06       0.32       5.77       6.09       (0.22     (5.61     (5.83     44.32       16.71       187,754       0.78       0.74       0.75       68  

F

    38.09       0.28       4.83       5.11       (0.23     (5.61     (5.84     37.36       16.75       776,505       0.70       0.70       0.79       68  

For the Year Ended October 31, 2018

 

A

  $ 41.86     $ 0.15     $ 1.45     $ 1.60     $ (0.26   $ (5.32   $ (5.58   $ 37.88       3.92   $ 4,742,846       1.07     1.06     0.38     108

C

    33.62       (0.11     1.16       1.05       (0.05     (5.32     (5.37     29.30       3.15       426,256       1.81       1.81       (0.34     108  

I

    42.04       0.26       1.44       1.70       (0.34     (5.32     (5.66     38.08       4.19       734,580       0.78       0.78       0.66       108  

R3

    45.39       0.02       1.56       1.58       (0.03     (5.32     (5.35     41.62       3.57       61,882       1.42       1.41       0.04       108  

R4

    46.69       0.15       1.62       1.77       (0.20     (5.32     (5.52     42.94       3.87       51,635       1.10       1.10       0.34       108  

R5

    47.54       0.30       1.63       1.93       (0.35     (5.32     (5.67     43.80       4.18       34,288       0.80       0.80       0.65       108  

R6

    47.80       0.35       1.64       1.99       (0.40     (5.32     (5.72     44.07       4.29       70,935       0.70       0.70       0.75       108  

Y

    47.78       0.34       1.64       1.98       (0.38     (5.32     (5.70     44.06       4.28       175,731       0.71       0.71       0.74       108  

F

    42.06       0.30       1.45       1.75       (0.40     (5.32     (5.72     38.09       4.28       880,110       0.70       0.70       0.75       108  

For the Year Ended October 31, 2017

 

A

  $ 34.49     $ 0.13     $ 7.39     $ 7.52     $ (0.15   $     $ (0.15   $ 41.86       21.86   $ 4,613,982       1.09 %(4)      1.08 %(4)      0.34     123

C

    27.80       (0.12     5.94       5.82                         33.62       20.97       1,241,267       1.82 (4)      1.82 (4)      (0.39     123  

I

    34.65       0.25       7.40       7.65       (0.26           (0.26     42.04       22.20       846,019       0.81 (4)      0.81 (4)      0.63       123  

R3

    37.38       0.01       8.01       8.02       (0.01           (0.01     45.39       21.47       75,201       1.42 (4)      1.40 (4)      0.03       123  

R4

    38.39       0.14       8.23       8.37       (0.07           (0.07     46.69       21.82       74,374       1.11 (4)      1.11 (4)      0.33       123  

R5

    39.15       0.28       8.37       8.65       (0.26           (0.26     47.54       22.20       40,582       0.81 (4)      0.80 (4)      0.63       123  

R6

    39.36       0.31       8.42       8.73       (0.29           (0.29     47.80       22.33       70,142       0.71 (4)      0.71 (4)      0.71       123  

Y

    39.36       0.30       8.41       8.71       (0.29           (0.29     47.78       22.27       184,502       0.72 (4)      0.72 (4)      0.70       123  

F(5)

    38.15       0.18       3.73       3.91                         42.06       10.28 (6)      1,103,972       0.71 (4)(7)      0.71 (4)(7)      0.65 (7)      123  

For the Year Ended October 31, 2016

 

A

  $ 38.15     $ 0.13     $ (0.57   $ (0.44   $ (0.12   $ (3.10   $ (3.22   $ 34.49       (0.97 )%    $ 4,609,594       1.11     1.11 %(8)      0.39     88

B

    31.00       (0.13     (0.49     (0.62           (3.10     (3.10     27.28       (1.82     58,647       2.00       2.00 (8)      (0.49     88  

C

    31.48       (0.09     (0.49     (0.58           (3.10     (3.10     27.80       (1.65     1,420,171       1.83       1.83 (8)      (0.33     88  

I

    38.31       0.24       (0.57     (0.33     (0.23     (3.10     (3.33     34.65       (0.65     1,225,026       0.81       0.81 (8)      0.70       88  

R3

    41.06       0.03       (0.61     (0.58           (3.10     (3.10     37.38       (1.26     103,526       1.43       1.42 (8)      0.09       88  

R4

    42.07       0.15       (0.63     (0.48     (0.10     (3.10     (3.20     38.39       (0.95     100,426       1.12       1.12 (8)      0.39       88  

R5

    42.84       0.27       (0.64     (0.37     (0.22     (3.10     (3.32     39.15       (0.65     45,643       0.82       0.82 (8)      0.69       88  

R6

    43.03       0.33       (0.66     (0.33     (0.24     (3.10     (3.34     39.36       (0.56     57,432       0.72       0.72 (8)      0.85       88  

Y

    43.05       0.30       (0.63     (0.33     (0.26     (3.10     (3.36     39.36       (0.55     939,300       0.72       0.72 (8)      0.78       88  

 

The accompanying notes are an integral part of these financial statements.

 

 

  91  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Core Equity Fund  

For the Year Ended October 31, 2020

 

A

  $   33.40     $   0.26     $   3.23     $   3.49     $   (0.23   $   (0.62   $   (0.85   $   36.04       10.58   $   1,140,994       0.73     0.72     0.77     22

C

    30.35       0.01       2.92       2.93       (0.04     (0.62     (0.66     32.62       9.74       443,989       1.47       1.47       0.03       22  

I

    33.50       0.35       3.24       3.59       (0.31     (0.62     (0.93     36.16       10.87       2,936,718       0.46       0.46       1.03       22  

R3

    33.86       0.15       3.26       3.41       (0.11     (0.62     (0.73     36.54       10.17       46,674       1.07       1.07       0.43       22  

R4

    34.44       0.27       3.33       3.60       (0.22     (0.62     (0.84     37.20       10.58       169,267       0.78       0.73       0.77       22  

R5

    33.75       0.36       3.25       3.61       (0.30     (0.62     (0.92     36.44       10.85       188,738       0.47       0.47       1.04       22  

R6

    33.91       0.38       3.29       3.67       (0.34     (0.62     (0.96     36.62       10.96       746,018       0.38       0.38       1.10       22  

Y

    33.90       0.36       3.28       3.64       (0.32     (0.62     (0.94     36.60       10.89       668,655       0.47       0.45       1.05       22  

F

    33.52       0.38       3.25       3.63       (0.34     (0.62     (0.96     36.19       10.97       2,251,700       0.38       0.38       1.12       22  

For the Year Ended October 31, 2019

 

                 

A

  $ 30.17     $ 0.27     $ 4.40     $ 4.67     $ (0.21   $ (1.23   $ (1.44   $ 33.40       16.60   $ 881,587       0.74     0.73     0.88     15

C

    27.53       0.04       4.01       4.05             (1.23     (1.23     30.35       15.71       366,553       1.47       1.47       0.14       15  

I

    30.26       0.35       4.40       4.75       (0.28     (1.23     (1.51     33.50       16.91       1,740,669       0.47       0.47       1.14       15  

R3

    30.52       0.16       4.48       4.64       (0.07     (1.23     (1.30     33.86       16.18       34,158       1.10       1.10       0.52       15  

R4

    31.03       0.28       4.54       4.82       (0.18     (1.23     (1.41     34.44       16.59       150,159       0.77       0.74       0.88       15  

R5

    30.47       0.35       4.44       4.79       (0.28     (1.23     (1.51     33.75       16.90       231,879       0.49       0.49       1.13       15  

R6

    30.61       0.38       4.46       4.84       (0.31     (1.23     (1.54     33.91       17.01       259,706       0.38       0.38       1.22       15  

Y

    30.61       0.37       4.45       4.82       (0.30     (1.23     (1.53     33.90       16.94       371,580       0.46       0.43       1.18       15  

F

    30.28       0.38       4.40       4.78       (0.31     (1.23     (1.54     33.52       17.00       1,655,619       0.38       0.38       1.21       15  

For the Year Ended October 31, 2018

 

                 

A

  $ 28.53     $ 0.22     $ 2.42     $ 2.64     $ (0.25   $ (0.75   $ (1.00   $ 30.17       9.41   $ 666,354       0.74     0.74     0.73     22

C

    26.13             2.22       2.22       (0.07     (0.75     (0.82     27.53       8.61       293,064       1.48       1.48             22  

I

    28.60       0.30       2.43       2.73       (0.32     (0.75     (1.07     30.26       9.72       1,130,600       0.47       0.47       1.00       22  

R3

    28.85       0.12       2.44       2.56       (0.14     (0.75     (0.89     30.52       9.02       34,765       1.10       1.10       0.38       22  

R4

    29.32       0.22       2.48       2.70       (0.24     (0.75     (0.99     31.03       9.37       144,866       0.79       0.76       0.72       22  

R5

    28.81       0.30       2.44       2.74       (0.33     (0.75     (1.08     30.47       9.69       201,510       0.49       0.49       0.99       22  

R6

    28.93       0.33       2.45       2.78       (0.35     (0.75     (1.10     30.61       9.80       146,643       0.39       0.39       1.08       22  

Y

    28.93       0.32       2.45       2.77       (0.34     (0.75     (1.09     30.61       9.77       216,788       0.42       0.42       1.06       22  

F

    28.63       0.33       2.42       2.75       (0.35     (0.75     (1.10     30.28       9.80       635,245       0.39       0.39       1.09       22  

For the Year Ended October 31, 2017

 

                 

A

  $ 23.87     $ 0.27     $ 4.70     $ 4.97     $ (0.12   $ (0.19   $ (0.31   $ 28.53       21.06   $ 631,817       0.75     0.75     1.05     39

C

    21.94       0.07       4.33       4.40       (0.02     (0.19     (0.21     26.13       20.20       316,886       1.50       1.50       0.30       39  

I

    23.93       0.34       4.71       5.05       (0.19     (0.19     (0.38     28.60       21.37       982,686       0.52       0.52       1.30       39  

R3

    24.18       0.19       4.77       4.96       (0.10     (0.19     (0.29     28.85       20.71       43,004       1.11       1.09       0.72       39  

R4

    24.54       0.27       4.84       5.11       (0.14     (0.19     (0.33     29.32       21.05       172,584       0.81       0.79       1.01       39  

R5

    24.10       0.35       4.75       5.10       (0.20     (0.19     (0.39     28.81       21.41       192,359       0.51       0.49       1.31       39  

R6

    24.19       0.37       4.77       5.14       (0.21     (0.19     (0.40     28.93       21.52       118,527       0.41       0.41       1.38       39  

Y

    24.20       0.35       4.78       5.13       (0.21     (0.19     (0.40     28.93       21.47       148,542       0.42       0.42       1.33       39  

F(5)

    26.05       0.26       2.32       2.58                         28.63       9.90 (6)      585,057       0.41 (7)      0.41 (7)      1.39 (7)      39  

For the Year Ended October 31, 2016

 

                 

A

  $ 24.05     $ 0.15     $ 0.13     $ 0.28     $ (0.03   $ (0.43   $ (0.46   $ 23.87       1.21   $ 703,896       0.80     0.80 %(9)      0.64     29

B

    22.33       (0.02     0.11       0.09             (0.43     (0.43     21.99       0.43       766       1.96       1.55 (9)      (0.10     29  

C

    22.27       (0.03     0.13       0.10             (0.43     (0.43     21.94       0.47       281,383       1.55       1.55 (9)      (0.12     29  

I

    24.09       0.21       0.13       0.34       (0.07     (0.43     (0.50     23.93       1.47       749,824       0.55       0.55 (9)      0.88       29  

R3

    24.44       0.08       0.13       0.21       (0.04     (0.43     (0.47     24.18       0.89       36,012       1.14       1.10 (9)      0.33       29  

R4

    24.73       0.15       0.14       0.29       (0.05     (0.43     (0.48     24.54       1.21       144,490       0.83       0.80 (9)      0.63       29  

R5

    24.25       0.22       0.14       0.36       (0.08     (0.43     (0.51     24.10       1.52       121,871       0.53       0.50 (9)      0.93       29  

R6

    24.33       0.24       0.13       0.37       (0.08     (0.43     (0.51     24.19       1.55       32,059       0.43       0.43 (9)      1.00       29  

Y

    24.33       0.24       0.13       0.37       (0.07     (0.43     (0.50     24.20       1.58       281,692       0.43       0.43 (9)      0.99       29  

 

The accompanying notes are an integral part of these financial statements.

 

 

  92  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Dividend and Growth Fund  

For the Year Ended October 31, 2020

 

A

  $   25.93     $   0.39     $   (0.94   $   (0.55   $   (0.37   $   (0.75   $   (1.12   $   24.26       (2.20 )%    $   3,385,907       1.00     1.00     1.61     28

C

    24.96       0.20       (0.92     (0.72     (0.18     (0.75     (0.93     23.31       (3.01     138,431       1.78       1.78       0.84       28  

I

    25.80       0.45       (0.94     (0.49     (0.44     (0.75     (1.19     24.12       (1.97     1,681,761       0.73       0.73       1.86       28  

R3

    26.32       0.31       (0.95     (0.64     (0.28     (0.75     (1.03     24.65       (2.54     54,642       1.35       1.35       1.26       28  

R4

    26.52       0.39       (0.97     (0.58     (0.35     (0.75     (1.10     24.84       (2.26     82,299       1.05       1.05       1.56       28  

R5

    26.64       0.47       (0.98     (0.51     (0.43     (0.75     (1.18     24.95       (1.97     177,851       0.74       0.74       1.86       28  

R6

    26.64       0.49       (0.97     (0.48     (0.46     (0.75     (1.21     24.95       (1.87     196,065       0.65       0.65       1.94       28  

Y

    26.64       0.48       (0.97     (0.49     (0.45     (0.75     (1.20     24.95       (1.91     735,618       0.73       0.68       1.92       28  

F

    25.78       0.48       (0.95     (0.47     (0.46     (0.75     (1.21     24.10       (1.89     2,736,317       0.64       0.64       1.96       28  

For the Year Ended October 31, 2019

 

A

  $ 25.63     $ 0.40     $ 2.63     $ 3.03     $ (0.38   $ (2.35   $ (2.73   $ 25.93       13.75   $ 3,739,696       1.00     0.99     1.65     22

C

    24.75       0.21       2.53       2.74       (0.18     (2.35     (2.53     24.96       12.92       192,715       1.77       1.77       0.89       22  

I

    25.51       0.46       2.63       3.09       (0.45     (2.35     (2.80     25.80       14.08       1,079,962       0.73       0.73       1.89       22  

R3

    25.97       0.32       2.67       2.99       (0.29     (2.35     (2.64     26.32       13.33       66,115       1.36       1.35       1.30       22  

R4

    26.14       0.40       2.69       3.09       (0.36     (2.35     (2.71     26.52       13.71       111,451       1.04       1.04       1.61       22  

R5

    26.25       0.47       2.71       3.18       (0.44     (2.35     (2.79     26.64       14.05       193,707       0.74       0.74       1.89       22  

R6

    26.25       0.50       2.71       3.21       (0.47     (2.35     (2.82     26.64       14.16       119,159       0.64       0.64       1.98       22  

Y

    26.25       0.49       2.70       3.19       (0.45     (2.35     (2.80     26.64       14.10       696,309       0.71       0.68       1.96       22  

F

    25.50       0.49       2.61       3.10       (0.47     (2.35     (2.82     25.78       14.15       2,844,206       0.64       0.64       2.00       22  

For the Year Ended October 31, 2018

 

A

  $ 27.46     $ 0.39     $ 0.80     $ 1.19     $ (0.38   $ (2.64   $ (3.02   $ 25.63       4.38   $ 3,521,062       0.99     0.99     1.49     31

C

    26.62       0.19       0.77       0.96       (0.19     (2.64     (2.83     24.75       3.58       228,076       1.76       1.75       0.76       31  

I

    27.35       0.46       0.79       1.25       (0.45     (2.64     (3.09     25.51       4.68       847,646       0.73       0.73       1.75       31  

R3

    27.78       0.30       0.81       1.11       (0.28     (2.64     (2.92     25.97       4.03       72,723       1.35       1.35       1.13       31  

R4

    27.95       0.39       0.80       1.19       (0.36     (2.64     (3.00     26.14       4.32       131,649       1.04       1.04       1.44       31  

R5

    28.05       0.47       0.82       1.29       (0.45     (2.64     (3.09     26.25       4.65       146,918       0.74       0.74       1.74       31  

R6

    28.05       0.49       0.82       1.31       (0.47     (2.64     (3.11     26.25       4.76       74,795       0.64       0.64       1.84       31  

Y

    28.05       0.49       0.81       1.30       (0.46     (2.64     (3.10     26.25       4.72       616,454       0.68       0.68       1.80       31  

F

    27.33       0.48       0.80       1.28       (0.47     (2.64     (3.11     25.50       4.77       2,591,584       0.64       0.64       1.84       31  

For the Year Ended October 31, 2017

 

A

  $ 23.49     $ 0.39     $ 4.75     $ 5.14     $ (0.38   $ (0.79   $ (1.17   $ 27.46       22.40   $ 3,619,123       1.00     1.00     1.52     26

C

    22.80       0.19       4.62       4.81       (0.20     (0.79     (0.99     26.62       21.54       449,961       1.74       1.74       0.78       26  

I

    23.38       0.44       4.74       5.18       (0.42     (0.79     (1.21     27.35       22.67       775,427       0.80       0.80       1.75       26  

R3

    23.75       0.30       4.81       5.11       (0.29     (0.79     (1.08     27.78       21.97       77,175       1.35       1.35       1.17       26  

R4

    23.89       0.38       4.84       5.22       (0.37     (0.79     (1.16     27.95       22.34       142,563       1.05       1.05       1.47       26  

R5

    23.97       0.46       4.86       5.32       (0.45     (0.79     (1.24     28.05       22.72       132,739       0.74       0.74       1.76       26  

R6

    23.97       0.46       4.88       5.34       (0.47     (0.79     (1.26     28.05       22.83       10,957       0.65       0.64       1.75       26  

Y

    23.97       0.50       4.84       5.34       (0.47     (0.79     (1.26     28.05       22.81       605,049       0.66       0.66       1.94       26  

F(5)

    25.51       0.29       1.86       2.15       (0.33           (0.33     27.33       8.49 (6)      2,570,906       0.64 (7)      0.64 (7)      1.66 (7)      26  

For the Year Ended October 31, 2016

 

A

  $ 24.99     $ 0.37     $ 0.50     $ 0.87     $ (0.34   $ (2.03   $ (2.37   $ 23.49       4.12   $ 3,501,684       1.03     1.03 %(10)      1.59     22

B

    24.55       0.16       0.47       0.63       (0.11     (2.03     (2.14     23.04       3.12       19,716       2.01       1.96 (10)      0.71       22  

C

    24.34       0.19       0.47       0.66       (0.17     (2.03     (2.20     22.80       3.31       437,961       1.77       1.77 (10)      0.85       22  

I

    24.89       0.41       0.50       0.91       (0.39     (2.03     (2.42     23.38       4.31       1,779,168       0.83       0.83 (10)      1.78       22  

R3

    25.24       0.29       0.51       0.80       (0.26     (2.03     (2.29     23.75       3.78       79,400       1.36       1.36 (10)      1.26       22  

R4

    25.37       0.37       0.51       0.88       (0.33     (2.03     (2.36     23.89       4.10       136,673       1.06       1.06 (10)      1.56       22  

R5

    25.44       0.44       0.51       0.95       (0.39     (2.03     (2.42     23.97       4.41       104,487       0.76       0.76 (10)      1.89       22  

R6

    25.44       0.42       0.55       0.97       (0.41     (2.03     (2.44     23.97       4.48       2,964       0.66       0.66 (10)      1.76       22  

Y

    25.45       0.46       0.51       0.97       (0.42     (2.03     (2.45     23.97       4.50       1,460,506       0.66       0.66 (10)      1.95       22  

 

The accompanying notes are an integral part of these financial statements.

 

 

  93  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Equity Income Fund  

For the Year Ended October 31, 2020

 

A

  $   19.99     $   0.34     $   (1.21   $   (0.87   $   (0.31   $   (1.26   $   (1.57   $   17.55       (4.68 )%    $   1,365,895       1.00     1.00     1.89     31

C

    19.88       0.21       (1.20     (0.99     (0.17     (1.26     (1.43     17.46       (5.38     191,917       1.76       1.76       1.15       31  

I

    19.88       0.38       (1.20     (0.82     (0.36     (1.26     (1.62     17.44       (4.44     977,950       0.74       0.74       2.13       31  

R3

    20.02       0.28       (1.20     (0.92     (0.25     (1.26     (1.51     17.59       (4.97     31,778       1.36       1.36       1.55       31  

R4

    20.06       0.33       (1.21     (0.88     (0.30     (1.26     (1.56     17.62       (4.72     41,386       1.05       1.05       1.85       31  

R5

    20.16       0.39       (1.22     (0.83     (0.36     (1.26     (1.62     17.71       (4.46     56,329       0.77       0.77       2.14       31  

R6

    20.21       0.40       (1.21     (0.81     (0.38     (1.26     (1.64     17.76       (4.34     55,448       0.66       0.66       2.22       31  

Y

    20.22       0.40       (1.23     (0.83     (0.37     (1.26     (1.63     17.76       (4.40     81,615       0.76       0.71       2.20       31  

F

    19.87       0.40       (1.19     (0.79     (0.38     (1.26     (1.64     17.44       (4.31     889,727       0.66       0.66       2.23       31  

For the Year Ended October 31, 2019

 

A

  $ 19.39     $ 0.38     $ 2.02     $ 2.40     $ (0.36   $ (1.44   $ (1.80   $ 19.99       13.88   $ 1,565,663       1.00     1.00     2.01     21

C

    19.29       0.24       2.00       2.24       (0.21     (1.44     (1.65     19.88       13.00       292,388       1.76       1.76       1.27       21  

I

    19.29       0.43       2.01       2.44       (0.41     (1.44     (1.85     19.88       14.17       959,142       0.75       0.75       2.26       21  

R3

    19.41       0.32       2.02       2.34       (0.29     (1.44     (1.73     20.02       13.48       43,474       1.36       1.36       1.66       21  

R4

    19.44       0.37       2.04       2.41       (0.35     (1.44     (1.79     20.06       13.85       53,957       1.07       1.07       1.96       21  

R5

    19.54       0.43       2.04       2.47       (0.41     (1.44     (1.85     20.16       14.14       81,758       0.76       0.76       2.25       21  

R6

    19.58       0.45       2.05       2.50       (0.43     (1.44     (1.87     20.21       14.29       52,201       0.66       0.66       2.33       21  

Y

    19.58       0.45       2.05       2.50       (0.42     (1.44     (1.86     20.22       14.21       105,015       0.73       0.71       2.34       21  

F

    19.29       0.44       2.01       2.45       (0.43     (1.44     (1.87     19.87       14.24       922,012       0.66       0.66       2.34       21  

For the Year Ended October 31, 2018

 

A

  $ 20.64     $ 0.38     $ (0.24   $ 0.14     $ (0.35   $ (1.04   $ (1.39   $ 19.39       0.49   $ 1,508,580       1.00     1.00     1.90     22

C

    20.53       0.23       (0.23           (0.20     (1.04     (1.24     19.29       (0.22     330,741       1.75       1.75       1.16       22  

I

    20.54       0.43       (0.24     0.19       (0.40     (1.04     (1.44     19.29       0.77       1,157,708       0.74       0.74       2.14       22  

R3

    20.66       0.31       (0.25     0.06       (0.27     (1.04     (1.31     19.41       0.12       46,820       1.36       1.36       1.53       22  

R4

    20.69       0.37       (0.24     0.13       (0.34     (1.04     (1.38     19.44       0.43       70,446       1.06       1.06       1.83       22  

R5

    20.78       0.43       (0.23     0.20       (0.40     (1.04     (1.44     19.54       0.78       79,557       0.76       0.76       2.13       22  

R6

    20.83       0.45       (0.24     0.21       (0.42     (1.04     (1.46     19.58       0.83       34,957       0.66       0.66       2.22       22  

Y

    20.83       0.45       (0.25     0.20       (0.41     (1.04     (1.45     19.58       0.79       140,057       0.70       0.70       2.19       22  

F

    20.54       0.45       (0.24     0.21       (0.42     (1.04     (1.46     19.29       0.85       774,529       0.65       0.65       2.23       22  

For the Year Ended October 31, 2017

 

A

  $ 17.97     $ 0.35     $ 3.24     $ 3.59     $ (0.32   $ (0.60   $ (0.92   $ 20.64       20.51   $ 1,685,398       1.00     1.00     1.83     16

C

    17.89       0.21       3.21       3.42       (0.18     (0.60     (0.78     20.53       19.56       449,104       1.74       1.74       1.09       16  

I

    17.89       0.39       3.23       3.62       (0.37     (0.60     (0.97     20.54       20.76       1,111,235       0.78       0.78       2.03       16  

R3

    17.99       0.28       3.24       3.52       (0.25     (0.60     (0.85     20.66       20.06       57,341       1.37       1.37       1.46       16  

R4

    18.02       0.34       3.24       3.58       (0.31     (0.60     (0.91     20.69       20.39       79,632       1.06       1.06       1.77       16  

R5

    18.09       0.40       3.26       3.66       (0.37     (0.60     (0.97     20.78       20.77       83,048       0.76       0.76       2.06       16  

R6

    18.13       0.41       3.28       3.69       (0.39     (0.60     (0.99     20.83       20.91       29,284       0.66       0.66       2.10       16  

Y

    18.13       0.45       3.23       3.68       (0.38     (0.60     (0.98     20.83       20.88       141,479       0.67       0.67       2.35       16  

F(5)

    19.22       0.24       1.37       1.61       (0.29           (0.29     20.54       8.45 (6)      674,626       0.66 (7)      0.66 (7)      1.84 (7)      16  

For the Year Ended October 31, 2016

 

A

  $ 18.70     $ 0.36     $ 0.64     $ 1.00     $ (0.33   $ (1.40   $ (1.73   $ 17.97       6.13   $ 1,676,572       1.04     1.04     2.03     14

B

    18.72       0.34       0.64       0.98       (0.30     (1.40     (1.70     18.00       6.01       6,930       1.18       1.18       1.95       14  

C

    18.61       0.23       0.65       0.88       (0.20     (1.40     (1.60     17.89       5.45       452,909       1.76       1.76       1.30       14  

I

    18.62       0.39       0.66       1.05       (0.38     (1.40     (1.78     17.89       6.45       966,338       0.78       0.78       2.25       14  

R3

    18.72       0.30       0.64       0.94       (0.27     (1.40     (1.67     17.99       5.77       54,732       1.38       1.38       1.68       14  

R4

    18.74       0.35       0.65       1.00       (0.32     (1.40     (1.72     18.02       6.14       76,745       1.07       1.07       1.98       14  

R5

    18.81       0.41       0.64       1.05       (0.37     (1.40     (1.77     18.09       6.42       65,276       0.77       0.77       2.31       14  

R6

    18.84       0.42       0.66       1.08       (0.39     (1.40     (1.79     18.13       6.57       14,551       0.67       0.67       2.38       14  

Y

    18.84       0.41       0.67       1.08       (0.39     (1.40     (1.79     18.13       6.57       386,011       0.67       0.67       2.35       14  

 

The accompanying notes are an integral part of these financial statements.

 

 

  94  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Growth Opportunities Fund  

For the Year Ended October 31, 2020

 

A

  $   39.45     $   (0.30   $   18.03     $   17.73     $     $ (2.53   $ (2.53   $ 54.65       47.69   $ 2,939,376       1.10     1.09     (0.66 )%      118

C

    20.50       (0.31     8.81       8.50             (2.53     (2.53     26.47       46.64       322,226       1.85       1.85       (1.41     118  

I

    41.95       (0.19     19.28       19.09             (2.53     (2.53     58.51       48.12       1,722,100       0.83       0.83       (0.39     118  

R3

    39.41       (0.44     17.97       17.53             (2.53     (2.53     54.41       47.21       47,880       1.44       1.43       (0.99     118  

R4

    42.26       (0.33     19.39       19.06             (2.53     (2.53     58.79       47.67       70,918       1.13       1.13       (0.69     118  

R5

    44.78       (0.20     20.64       20.44             (2.53     (2.53     62.69       48.09       23,170       0.85       0.85       (0.40     118  

R6

    45.63       (0.17     21.08       20.91             (2.53     (2.53     64.01       48.23       40,559       0.74       0.74       (0.31     118  

Y

    45.62       (0.20     21.07       20.87             (2.53     (2.53     63.96       48.15       433,672       0.83       0.78       (0.38     118  

F

    42.09       (0.15     19.36       19.21             (2.53     (2.53     58.77       48.25       795,206       0.74       0.74       (0.31     118  

For the Year Ended October 31, 2019

 

A

  $ 45.89     $ (0.25   $ 4.35     $ 4.10     $     $   (10.54   $   (10.54   $   39.45       13.64   $   2,089,246       1.12     1.11     (0.64 )%      66

C

    29.36       (0.29     1.97       1.68             (10.54     (10.54     20.50       12.79       281,545       1.86       1.86       (1.39     66  

I

    47.99       (0.16     4.66       4.50             (10.54     (10.54     41.95       13.94       1,500,756       0.85       0.85       (0.38     66  

R3

    45.98       (0.39     4.36       3.97             (10.54     (10.54     39.41       13.25       44,757       1.47       1.46       (1.00     66  

R4

    48.38       (0.29     4.71       4.42             (10.54     (10.54     42.26       13.57       67,104       1.15       1.15       (0.69     66  

R5

    50.48       (0.17     5.01       4.84             (10.54     (10.54     44.78       13.92       25,396       0.85       0.85       (0.39     66  

R6

    51.18       (0.13     5.12       4.99             (10.54     (10.54     45.63       14.03       22,765       0.75       0.75       (0.29     66  

Y

    51.18       (0.15     5.13       4.98             (10.54     (10.54     45.62       14.00       164,390       0.83       0.79       (0.33     66  

F

    48.07       (0.12     4.68       4.56             (10.54     (10.54     42.09       14.07       526,379       0.74       0.74       (0.28     66  

For the Year Ended October 31, 2018

 

A

  $ 46.20     $ (0.29   $ 3.86     $ 3.57     $     $ (3.88   $ (3.88   $ 45.89       8.31   $ 2,013,200       1.11     1.11     (0.61 )%      122

C

    31.15       (0.41     2.50       2.09             (3.88     (3.88     29.36       7.49       321,653       1.85       1.85       (1.35     122  

I

    48.01       (0.17     4.03       3.86             (3.88     (3.88     47.99       8.62       1,674,141       0.84       0.84       (0.34     122  

R3

    46.43       (0.45     3.88       3.43             (3.88     (3.88     45.98       7.94       47,707       1.46       1.45       (0.95     122  

R4

    48.52       (0.32     4.06       3.74             (3.88     (3.88     48.38       8.28       79,229       1.15       1.15       (0.65     122  

R5

    50.31       (0.18     4.23       4.05             (3.88     (3.88     50.48       8.60       19,708       0.86       0.86       (0.35     122  

R6

    50.91       (0.14     4.29       4.15             (3.88     (3.88     51.18       8.71       12,061       0.75       0.75       (0.26     122  

Y

    50.92       (0.15     4.29       4.14             (3.88     (3.88     51.18       8.68       127,721       0.78       0.78       (0.28     122  

F

    48.05       (0.12     4.02       3.90             (3.88     (3.88     48.07       8.71       401,565       0.75       0.75       (0.25     122  

For the Year Ended October 31, 2017

 

A

  $ 37.66     $ (0.23   $ 10.17     $ 9.94     $     $ (1.40   $ (1.40   $ 46.20       27.40   $ 1,914,743       1.11     1.10     (0.57 )%      119

C

    26.03       (0.36     6.88       6.52             (1.40     (1.40     31.15       26.46       412,184       1.86       1.86       (1.32     119  

I

    39.00       (0.15     10.56       10.41             (1.40     (1.40     48.01       27.67       1,546,058       0.89       0.89       (0.35     119  

R3

    37.96       (0.37     10.24       9.87             (1.40     (1.40     46.43       26.95       48,315       1.46       1.45       (0.92     119  

R4

    39.50       (0.26     10.68       10.42             (1.40     (1.40     48.52       27.33       81,413       1.15       1.15       (0.62     119  

R5

    40.78       (0.14     11.07       10.93             (1.40     (1.40     50.31       27.74       16,530       0.86       0.85       (0.32     119  

R6

    41.21       (0.12     11.22       11.10             (1.40     (1.40     50.91       27.86       4,554       0.76       0.75       (0.26     119  

Y

    41.23       (0.09     11.18       11.09             (1.40     (1.40     50.92       27.83       104,645       0.77       0.77       (0.22     119  

F(5)

    40.07       (0.10     8.08       7.98                         48.05       19.92 (6)      617,087       0.75 (7)      0.75 (7)      (0.34 )(7)      119  

For the Year Ended October 31, 2016

 

A

  $ 40.68     $ (0.20   $ 0.55     $ 0.35     $     $ (3.37   $ (3.37   $ 37.66       1.04   $ 1,747,532       1.14     1.14 %(11)      (0.55 )%      117

B

    29.08       (0.37     0.35       (0.02           (3.37     (3.37     25.69       0.09       4,249       2.09       2.06 (11)      (1.45     117  

C

    29.37       (0.33     0.36       0.03             (3.37     (3.37     26.03       0.28       420,107       1.89       1.89 (11)      (1.29     117  

I

    41.98       (0.12     0.57       0.45       (0.06     (3.37     (3.43     39.00       1.25       1,726,408       0.93       0.93 (11)      (0.32     117  

R3

    41.11       (0.33     0.55       0.22             (3.37     (3.37     37.96       0.71       47,559       1.47       1.47 (11)      (0.87     117  

R4

    42.51       (0.22     0.58       0.36             (3.37     (3.37     39.50       1.02       72,213       1.17       1.17 (11)      (0.57     117  

R5

    43.73       (0.08     0.57       0.49       (0.07     (3.37     (3.44     40.78       1.30       14,791       0.87       0.86 (11)      (0.20     117  

R6

    44.15       (0.07     0.61       0.54       (0.11     (3.37     (3.48     41.21       1.40       942       0.77       0.77 (11)      (0.17     117  

Y

    44.17       (0.08     0.62       0.54         (0.11     (3.37     (3.48     41.23       1.40       231,037       0.77       0.77 (11)      (0.19     117  

 

The accompanying notes are an integral part of these financial statements.

 

 

  95  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Healthcare Fund  

For the Year Ended October 31, 2020

 

A

  $   35.63     $   (0.13   $   7.77     $   7.64     $     $   (2.36   $   (2.36   $   40.91       22.17   $   746,242       1.28     1.28     (0.33 )%      49

C

    28.24       (0.33     6.08       5.75             (2.36     (2.36     31.63       21.21       139,847       2.04       2.04       (1.09     49  

I

    37.68       (0.02     8.23       8.21             (2.36     (2.36     43.53       22.49       376,518       0.99       0.99       (0.05     49  

R3

    36.56       (0.26     7.96       7.70             (2.36     (2.36     41.90       21.74       31,090       1.61       1.61       (0.65     49  

R4

    38.69       (0.15     8.45       8.30             (2.36     (2.36     44.63       22.12       25,078       1.30       1.30       (0.35     49  

R5

    40.71       (0.03     8.92       8.89             (2.36     (2.36     47.24       22.48       10,937       1.01       1.01       (0.07     49  

R6

    41.28       0.02       9.05       9.07             (2.36     (2.36     47.99       22.61       3,885       0.90       0.90       0.04       49  

Y

    41.27       (0.01     9.05       9.04             (2.36     (2.36     47.95       22.55       97,263       1.00       0.95       (0.01     49  

F

    37.79       0.02       8.25       8.27             (2.36     (2.36     43.70       22.59       34,808       0.90       0.90       0.04       49  

For the Year Ended October 31, 2019

 

A

  $ 34.38     $ (0.10   $ 3.83     $ 3.73     $     $ (2.48   $ (2.48   $ 35.63       12.02   $ 666,181       1.30     1.30     (0.30 )%      35

C

    27.98       (0.28     3.02       2.74             (2.48     (2.48     28.24       11.17       138,539       2.05       2.05       (1.06     35  

I

    36.11       0.00 (12)      4.05       4.05             (2.48     (2.48     37.68       12.36       297,000       1.01       1.01       (0.01     35  

R3

    35.32       (0.21     3.93       3.72             (2.48     (2.48     36.56       11.66       33,948       1.62       1.62       (0.62     35  

R4

    37.12       (0.12     4.17       4.05             (2.48     (2.48     38.69       12.00       26,699       1.32       1.32       (0.32     35  

R5

    38.82       (0.01     4.38       4.37             (2.48     (2.48     40.71       12.32       6,170       1.02       1.02       (0.04     35  

R6(13)

    39.22       0.02       2.04       2.06                         41.28       5.25 (6)      1,341       0.91 (7)      0.91 (7)      0.06 (7)      35  

Y

    39.29       0.01       4.45       4.46             (2.48     (2.48     41.27       12.40       72,515       0.97       0.96       0.03       35  

F

    36.17       0.02       4.08       4.10             (2.48     (2.48     37.79       12.48       29,108       0.91       0.91       0.06       35  

For the Year Ended October 31, 2018

 

A

  $ 34.86     $ (0.14   $ 1.45     $ 1.31     $     $ (1.79   $ (1.79   $ 34.38       3.86   $ 682,175       1.28     1.28     (0.40 )%      27

C

    28.90       (0.33     1.20       0.87             (1.79     (1.79     27.98       3.10       160,084       2.03       2.02       (1.13     27  

I

    36.43       (0.04     1.51       1.47             (1.79     (1.79     36.11       4.15       379,392       1.00       1.00       (0.11     27  

R3

    35.87       (0.26     1.50       1.24             (1.79     (1.79     35.32       3.55       38,412       1.61       1.61       (0.72     27  

R4

    37.50       (0.16     1.57       1.41             (1.79     (1.79     37.12       3.86       32,373       1.30       1.30       (0.42     27  

R5

    39.03       (0.05     1.63       1.58             (1.79     (1.79     38.82       4.15       7,757       1.02       1.02       (0.13     27  

Y

    39.45       (0.01     1.64       1.63             (1.79     (1.79     39.29       4.24       52,896       0.92       0.92       (0.03     27  

F

    36.45             1.51       1.51             (1.79     (1.79     36.17       4.26       76,003       0.90       0.90       (0.01     27  

For the Year Ended October 31, 2017

 

A

  $ 30.96     $ (0.12   $ 7.04     $ 6.92     $     $ (3.02   $ (3.02   $ 34.86       24.28   $ 714,694       1.29     1.29     (0.36 )%      23

C

    26.34       (0.30     5.88       5.58             (3.02     (3.02     28.90       23.37       242,421       2.04       2.03       (1.10     23  

I

    32.15       (0.04     7.34       7.30             (3.02     (3.02     36.43       24.59       351,686       1.03       1.03       (0.11     23  

R3

    31.87       (0.23     7.25       7.02             (3.02     (3.02     35.87       23.87       45,673       1.61       1.61       (0.68     23  

R4

    33.10       (0.13     7.55       7.42             (3.02     (3.02     37.50       24.22       35,927       1.31       1.31       (0.38     23  

R5

    34.23       (0.03     7.85       7.82             (3.02     (3.02     39.03       24.62       6,888       1.01       1.01       (0.08     23  

Y

    34.54       (0.01     7.94       7.93             (3.02     (3.02     39.45       24.72       45,193       0.93       0.93       (0.02     23  

F(5)

    33.96       0.01       2.48       2.49                         36.45       7.33 (6)      61,710       0.90 (7)      0.90 (7)      0.04 (7)      23  

For the Year Ended October 31, 2016

 

A

  $ 38.70     $ (0.12   $   (2.52   $ (2.64   $   (0.55   $ (4.55   $ (5.10   $ 30.96       (8.11 )%    $ 757,038       1.33     1.33     (0.36 )%      35

B

    33.41       (0.36     (2.15     (2.51     (0.13     (4.55     (4.68     26.22       (8.94     2,056       2.24       2.22       (1.26     35  

C

    33.73       (0.31     (2.15     (2.46     (0.38     (4.55     (4.93     26.34       (8.78     254,009       2.06       2.06       (1.10     35  

I

    39.98       (0.03     (2.61     (2.64     (0.64     (4.55     (5.19     32.15       (7.86     228,463       1.07       1.07       (0.09     35  

R3

    39.69       (0.22     (2.61     (2.83     (0.44     (4.55     (4.99     31.87       (8.38     43,993       1.62       1.62       (0.66     35  

R4

    41.01       (0.13     (2.69     (2.82     (0.54     (4.55     (5.09     33.10       (8.09     38,273       1.32       1.32       (0.36     35  

R5

    42.22       (0.02     (2.79     (2.81     (0.63     (4.55     (5.18     34.23       (7.82     5,342       1.03       1.03       (0.06     35  

Y

    42.54       0.02       (2.80     (2.78     (0.67     (4.55     (5.22     34.54       (7.72     51,125       0.92       0.92       0.05       35  

 

The accompanying notes are an integral part of these financial statements.

 

 

  96  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford MidCap Fund  

For the Year Ended October 31, 2020

 

A

  $   30.34     $   (0.08   $   2.00     $   1.92     $   —     $   (1.63   $   (1.63   $   30.63       6.48   $   2,724,316       1.11     1.11     (0.27 )%      45

C

    20.83       (0.20     1.34       1.14             (1.63     (1.63     20.34       5.63       380,033       1.87       1.87       (1.02     45  

I

    31.43       (0.01     2.08       2.07             (1.63     (1.63     31.87       6.74       3,867,925       0.88       0.87       (0.04     45  

R3

    33.98       (0.21     2.24       2.03             (1.63     (1.63     34.38       6.09       92,023       1.47       1.47       (0.63     45  

R4

    35.57       (0.10     2.34       2.24             (1.63     (1.63     36.18       6.42       205,114       1.16       1.14       (0.30     45  

R5

    36.77       0.00 (12)      2.44       2.44             (1.63     (1.63     37.58       6.77       371,791       0.85       0.85       0.00 (20)      45  

R6

    37.22       0.03       2.47       2.50             (1.63     (1.63     38.09       6.85       1,759,581       0.75       0.75       0.08       45  

Y

    37.17       0.02       2.46       2.48             (1.63     (1.63     38.02       6.81       1,144,624       0.85       0.79       0.06       45  

F

    31.52       0.03       2.08       2.11             (1.63     (1.63     32.00       6.85       2,422,752       0.75       0.75       0.09       45  

For the Year Ended October 31, 2019

 

A

  $ 30.03     $ (0.09   $ 3.80     $ 3.71     $     $ (3.40   $ (3.40   $ 30.34       14.93   $ 2,820,971       1.11     1.10     (0.32 )%      31

C

    21.90       (0.22     2.55       2.33             (3.40     (3.40     20.83       14.10       498,057       1.86       1.86       (1.08     31  

I

    30.91       (0.02     3.94       3.92             (3.40     (3.40     31.43       15.25       4,168,592       0.85       0.85       (0.06     31  

R3

    33.31       (0.22     4.29       4.07             (3.40     (3.40     33.98       14.54       96,409       1.45       1.45       (0.67     31  

R4

    34.59       (0.12     4.50       4.38             (3.40     (3.40     35.57       14.89       266,390       1.16       1.14       (0.36     31  

R5

    35.55       (0.02     4.64       4.62             (3.40     (3.40     36.77       15.23       497,712       0.84       0.84       (0.07     31  

R6

    35.90       0.02       4.70       4.72             (3.40     (3.40     37.22       15.37       1,731,890       0.74       0.74       0.04       31  

Y

    35.87       0.00 (12)      4.70       4.70             (3.40     (3.40     37.17       15.32       1,571,851       0.82       0.78       0.01       31  

F

    30.96       0.01       3.95       3.96             (3.40     (3.40     31.52       15.36       2,259,594       0.74       0.74       0.04       31  

For the Year Ended October 31, 2018

 

A

  $ 30.36     $ (0.12   $ 1.20     $ 1.08     $     $ (1.41   $ (1.41   $ 30.03       3.63   $ 2,592,610       1.11     1.10     (0.39 )%      37

C

    22.67       (0.27     0.91       0.64             (1.41     (1.41     21.90       2.84       580,708       1.85       1.85       (1.14     37  

I

    31.12       (0.03     1.23       1.20             (1.41     (1.41     30.91       3.91       3,666,464       0.82       0.82       (0.11     37  

R3

    33.64       (0.26     1.34       1.08             (1.41     (1.41     33.31       3.23       102,632       1.46       1.46       (0.75     37  

R4

    34.78       (0.16     1.38       1.22             (1.41     (1.41     34.59       3.57       289,049       1.16       1.15       (0.43     37  

R5

    35.59       (0.05     1.42       1.37             (1.41     (1.41     35.55       3.89       468,146       0.85       0.85       (0.13     37  

R6

    35.90       (0.01     1.42       1.41             (1.41     (1.41     35.90       3.97       1,014,518       0.75       0.75       (0.04     37  

Y

    35.88       (0.02     1.42       1.40             (1.41     (1.41     35.87       3.95       1,934,520       0.78       0.78       (0.06     37  

F

    31.15       (0.01     1.23       1.22             (1.41     (1.41     30.96       3.97       1,648,425       0.75       0.75       (0.03     37  

For the Year Ended October 31, 2017

 

A

  $ 24.25     $ (0.11   $ 7.00     $ 6.89     $     $ (0.78   $ (0.78   $ 30.36       29.02   $ 2,482,275       1.13     1.12     (0.38 )%      30

C

    18.42       (0.23     5.26       5.03             (0.78     (0.78     22.67       28.07       717,521       1.87       1.87       (1.12     30  

I

    24.79       (0.05     7.16       7.11             (0.78     (0.78     31.12       29.28       2,996,705       1.02       0.89       (0.17     30  

R3

    26.88       (0.22     7.76       7.54             (0.78     (0.78     33.64       28.59       90,582       1.47       1.47       (0.73     30  

R4

    27.69       (0.14     8.01       7.87             (0.78     (0.78     34.78       28.95       263,236       1.16       1.16       (0.43     30  

R5

    28.24       (0.04     8.17       8.13             (0.78     (0.78     35.59       29.32       356,166       0.86       0.86       (0.14     30  

R6

    28.45       (0.05     8.28       8.23             (0.78     (0.78     35.90       29.45       431,183       0.76       0.76       (0.14     30  

Y

    28.44       (0.01     8.23       8.22             (0.78     (0.78     35.88       29.43       1,847,676       0.78       0.78       (0.04     30  

F(5)

    27.52       (0.03     3.66       3.63                         31.15       13.19 (6)      1,244,732       0.76 (7)      0.76 (7)      (0.15 )(7)      30  

For the Year Ended October 31, 2016

 

A

  $ 26.47     $ (0.07   $ (0.22   $ (0.29   $     $ (1.93   $ (1.93   $ 24.25       (0.79 )%    $ 2,041,826       1.17     1.17     (0.29 )%      31

B

    20.13       (0.21     (0.19     (0.40           (1.93     (1.93     17.80       (1.66     16,842       2.06       2.06       (1.16     31  

C

    20.73       (0.18     (0.20     (0.38           (1.93     (1.93     18.42       (1.50     611,311       1.89       1.89       (1.01     31  

I

    26.96       (0.04     (0.20     (0.24           (1.93     (1.93     24.79       (0.57     1,725,700       1.02       1.02       (0.18     31  

R3

    29.20       (0.16     (0.23     (0.39           (1.93     (1.93     26.88       (1.07     71,711       1.48       1.48       (0.59     31  

R4

    29.93       (0.08     (0.23     (0.31           (1.93     (1.93     27.69       (0.76     165,137       1.18       1.18       (0.30     31  

R5

    30.39             (0.22     (0.22           (1.93     (1.93     28.24       (0.47     193,533       0.87       0.87             31  

R6

    30.58             (0.20     (0.20           (1.93     (1.93     28.45       (0.36     26,352       0.77       0.77       0.01       31  

Y

    30.57       0.03       (0.23     (0.20           (1.93     (1.93     28.44       (0.36     1,490,965       0.77       0.77       0.10       31  

 

The accompanying notes are an integral part of these financial statements.

 

 

  97  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford MidCap Value Fund  

For the Year Ended October 31, 2020

 

A

  $   14.43     $   0.07     $   (1.86   $   (1.79   $   (0.09   $   (0.34   $   (0.43   $   12.21       (12.86 )%    $   245,112       1.25     1.25     0.56     61

C

    11.51       (0.02     (1.49     (1.51     (0.00 )(12)      (0.34     (0.34     9.66       (13.55     9,533       2.03       2.03       (0.20     61  

I

    14.60       0.12       (1.88     (1.76     (0.14     (0.34     (0.48     12.36       (12.58     19,722       0.91       0.91       0.91       61  

R3

    15.22       0.04       (1.98     (1.94     (0.03     (0.34     (0.37     12.91       (13.12     5,317       1.53       1.53       0.30       61  

R4

    15.58       0.08       (2.02     (1.94     (0.09     (0.34     (0.43     13.21       (12.88     8,857       1.23       1.23       0.58       61  

R5

    15.82       0.12       (2.04     (1.92     (0.12     (0.34     (0.46     13.44       (12.60     1,423       0.92       0.92       0.88       61  

Y

    15.87       0.13       (2.05     (1.92     (0.14     (0.34     (0.48     13.47       (12.55     10,009       0.92       0.88       0.93       61  

F

    14.60       0.13       (1.88     (1.75     (0.15     (0.34     (0.49     12.36       (12.51     299,805       0.82       0.82       0.98       61  

For the Year Ended October 31, 2019

 

A

  $ 14.54     $ 0.08     $ 1.44     $ 1.52     $ (0.04   $ (1.59   $ (1.63   $ 14.43       12.74   $ 309,996       1.23     1.23     0.61     55

C

    11.97       (0.02     1.15       1.13             (1.59     (1.59     11.51       11.99       15,910       1.99       1.99       (0.14     55  

I

    14.68       0.13       1.46       1.59       (0.08     (1.59     (1.67     14.60       13.20       31,173       0.89       0.89       0.95       55  

R3

    15.23       0.05       1.53       1.58             (1.59     (1.59     15.22       12.42       8,034       1.52       1.52       0.33       55  

R4

    15.55       0.09       1.57       1.66       (0.04     (1.59     (1.63     15.58       12.77       11,865       1.21       1.21       0.64       55  

R5

    15.76       0.16       1.57       1.73       (0.08     (1.59     (1.67     15.82       13.14       1,592       0.92       0.92       1.06       55  

Y

    15.80       0.15       1.60       1.75       (0.09     (1.59     (1.68     15.87       13.23       12,624       0.89       0.85       0.98       55  

F

    14.69       0.14       1.46       1.60       (0.10     (1.59     (1.69     14.60       13.27       314,566       0.80       0.80       1.03       55  

For the Year Ended October 31, 2018

 

A

  $ 15.62     $ 0.03     $ (0.72   $ (0.69   $     $ (0.39   $ (0.39   $ 14.54       (4.56 )%    $ 284,646       1.22     1.22     0.18     49

C

    13.03       (0.07     (0.60     (0.67           (0.39     (0.39     11.97       (5.26     17,909       1.98       1.97       (0.57     49  

I

    15.72       0.08       (0.73     (0.65           (0.39     (0.39     14.68       (4.27     34,656       0.90       0.90       0.50       49  

R3

    16.39       (0.02     (0.75     (0.77           (0.39     (0.39     15.23       (4.84     9,555       1.52       1.52       (0.13     49  

R4

    16.68       0.03       (0.77     (0.74           (0.39     (0.39     15.55       (4.52     11,639       1.22       1.22       0.18       49  

R5

    16.88       0.08       (0.78     (0.70     (0.03     (0.39     (0.42     15.76       (4.32     8,087       0.91       0.91       0.48       49  

Y

    16.93       0.09       (0.79     (0.70     (0.04     (0.39     (0.43     15.80       (4.23     11,371       0.86       0.86       0.52       49  

F

    15.76       0.10       (0.73     (0.63     (0.05     (0.39     (0.44     14.69       (4.18     252,917       0.80       0.80       0.61       49  

For the Year Ended October 31, 2017

 

A

  $ 13.98     $ 0.01     $ 2.65     $ 2.66     $     $ (1.02   $ (1.02   $ 15.62       19.67   $ 291,082       1.23     1.23     0.06     40

C

    11.90       (0.08     2.23       2.15             (1.02     (1.02     13.03       18.66       35,520       1.96       1.96       (0.67     40  

I

    14.09       0.03       2.67       2.70       (0.05     (1.02     (1.07     15.72       19.81       43,342       1.20       1.10       0.20       40  

R3

    14.67       (0.04     2.78       2.74             (1.02     (1.02     16.39       19.26       11,923       1.52       1.52       (0.23     40  

R4

    14.87       0.01       2.82       2.83             (1.02     (1.02     16.68       19.58       12,637       1.21       1.21       0.08       40  

R5

    15.03       0.06       2.86       2.92       (0.05     (1.02     (1.07     16.88       20.06       11,445       0.91       0.91       0.38       40  

Y

    15.07       0.08       2.86       2.94       (0.06     (1.02     (1.08     16.93       20.10       28,403       0.82       0.82       0.48       40  

F(5)

    14.97       0.05       0.74       0.79                         15.76       5.28 (6)      238,682       0.81 (7)      0.81 (7)      0.46 (7)      40  

For the Year Ended October 31, 2016

 

A

  $ 15.11     $ 0.03     $ (0.03  )$          $ (0.02   $ (1.11   $ (1.13   $ 13.98       0.18   $ 246,023       1.30     1.30 %(14)      0.18     56

B

    13.15       (0.07     (0.03     (0.10           (1.11     (1.11     11.94       (0.57     637       2.42       2.12 (14)      (0.63     56  

C

    13.09       (0.06     (0.02     (0.08           (1.11     (1.11     11.90       (0.42     35,965       2.02       2.02 (14)      (0.54     56  

I

    15.22       0.05       (0.01     0.04       (0.06     (1.11     (1.17     14.09       0.48       83,155       1.06       1.06 (14)      0.39       56  

R3

    15.82       (0.01     (0.03     (0.04           (1.11     (1.11     14.67       (0.07     11,396       1.56       1.56 (14)      (0.07     56  

R4

    15.99       0.03       (0.02     0.01       (0.02     (1.11     (1.13     14.87       0.30       13,448       1.25       1.25 (14)      0.23       56  

R5

    16.15       0.08       (0.03     0.05       (0.06     (1.11     (1.17     15.03       0.54       9,831       0.95       0.95 (14)      0.52       56  

Y

    16.19       0.09       (0.03     0.06       (0.07     (1.11     (1.18     15.07       0.63       79,990       0.85       0.85 (14)      0.63       56  

 

The accompanying notes are an integral part of these financial statements.

 

 

  98  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Quality Value Fund  

For the Year Ended October 31, 2020

 

A

  $   21.11     $   0.42     $   (1.85   $   (1.43   $   (0.48   $   (0.59   $   (1.07   $   18.61       (7.34 )%    $   140,154       1.03     0.91     2.19     26

C

    18.05       0.23       (1.59     (1.36     (0.32     (0.59     (0.91     15.78       (8.09     3,673       1.82       1.71       1.38       26  

I

    20.85       0.48       (1.82     (1.34     (0.55     (0.59     (1.14     18.37       (7.02     10,927       0.67       0.56       2.53       26  

R3

    21.45       0.38       (1.89     (1.51     (0.43     (0.59     (1.02     18.92       (7.56     855       1.29       1.16       1.91       26  

R4

    21.68       0.44       (1.91     (1.47     (0.49     (0.59     (1.08     19.13       (7.34     3,887       0.98       0.87       2.21       26  

R5

    21.87       0.50       (1.92     (1.42     (0.54     (0.59     (1.13     19.32       (7.05     220       0.69       0.58       2.53       26  

R6

    21.93       0.50       (1.89     (1.39     (0.57     (0.59     (1.16     19.38       (6.92     485       0.58       0.46       2.53       26  

Y

    21.91       0.51       (1.93     (1.42     (0.55     (0.59     (1.14     19.35       (7.05     382       0.68       0.57       2.53       26  

F

    20.83       0.50       (1.82     (1.32     (0.61     (0.59     (1.20     18.31       (6.94     8,975       0.58       0.46       2.64       26  

For the Year Ended October 31, 2019

 

A

  $ 20.00     $ 0.38     $ 1.99     $ 2.37     $ (0.28   $ (0.98   $ (1.26   $ 21.11       13.10   $ 169,771       1.00     0.90     1.95     23

C

    17.12       0.20       1.71       1.91             (0.98     (0.98     18.05       12.23       6,834       1.76       1.67       1.21       23  

I

    19.78       0.45       1.94       2.39       (0.34     (0.98     (1.32     20.85       13.49       12,796       0.65       0.56       2.30       23  

R3

    20.29       0.34       2.01       2.35       (0.21     (0.98     (1.19     21.45       12.78       1,240       1.27       1.16       1.69       23  

R4

    20.49       0.40       2.04       2.44       (0.27     (0.98     (1.25     21.68       13.17       6,014       0.95       0.86       1.99       23  

R5

    20.67       0.47       2.04       2.51       (0.33     (0.98     (1.31     21.87       13.46       230       0.67       0.58       2.33       23  

R6

    20.74       0.47       2.06       2.53       (0.36     (0.98     (1.34     21.93       13.57       34       0.56       0.46       2.26       23  

Y

    20.72       0.47       2.05       2.52       (0.35     (0.98     (1.33     21.91       13.50       622       0.64       0.55       2.29       23  

F

    19.77       0.48       1.92       2.40       (0.36     (0.98     (1.34     20.83       13.58       11,040       0.55       0.46       2.52       23  

For the Year Ended October 31, 2018

 

A

  $ 20.49     $ 0.31     $ 0.16     $ 0.47     $ (0.20   $ (0.76   $ (0.96   $ 20.00       2.25   $ 164,325       1.06     1.04     1.52     85

C

    17.67       0.14       0.15       0.29       (0.08     (0.76     (0.84     17.12       1.53       9,082       1.81       1.79       0.80       85  

I

    20.25       0.38       0.16       0.54       (0.25     (0.76     (1.01     19.78       2.60       12,974       0.71       0.69       1.87       85  

R3

    20.70       0.26       0.17       0.43       (0.08     (0.76     (0.84     20.29       2.03       1,075       1.34       1.30       1.26       85  

R4

    20.95       0.33       0.16       0.49       (0.19     (0.76     (0.95     20.49       2.29       6,014       1.04       1.01       1.55       85  

R5

    21.13       0.38       0.17       0.55       (0.25     (0.76     (1.01     20.67       2.57       504       0.74       0.72       1.76       85  

R6(15)

    20.99       0.28       (0.53 )(16)      (0.25                       20.74       (1.19 )(6)      10       0.61 (7)      0.59 (7)      1.95 (7)      85  

Y

    21.19       0.40       0.17       0.57       (0.28     (0.76     (1.04     20.72       2.65       601       0.68       0.66       1.90       85  

F

    20.26       0.39       0.17       0.56       (0.29     (0.76     (1.05     19.77       2.71       88,336       0.62       0.60       1.94       85  

For the Year Ended October 31, 2017

 

A

  $ 17.94     $ 0.19     $ 2.64     $ 2.83     $ (0.14   $ (0.14   $ (0.28   $ 20.49       15.89   $ 180,059       1.20     1.20     0.95     39

C

    15.52       0.04       2.28       2.32       (0.03     (0.14     (0.17     17.67       15.05       20,312       1.93       1.93       0.22       39  

I

    17.75       0.24       2.60       2.84       (0.20     (0.14     (0.34     20.25       16.19       15,561       0.94       0.94       1.22       39  

R3

    18.13       0.13       2.66       2.79       (0.08     (0.14     (0.22     20.70       15.48       1,448       1.54       1.53       0.63       39  

R4

    18.34       0.19       2.70       2.89       (0.14     (0.14     (0.28     20.95       15.87       7,550       1.20       1.20       0.96       39  

R5

    18.49       0.23       2.75       2.98       (0.20     (0.14     (0.34     21.13       16.25       480       0.91       0.91       1.17       39  

Y

    18.55       0.27       2.73       3.00       (0.22     (0.14     (0.36     21.19       16.32       1,052       0.83       0.83       1.31       39  

F(5)

    19.58       0.16       0.52       0.68                         20.26       3.47 (6)      12,030       0.80 (7)      0.80 (7)      1.17 (7)      39  

For the Year Ended October 31, 2016

 

A

  $ 18.66     $ 0.16     $ 0.57     $ 0.73     $ (0.21   $ (1.24   $ (1.45   $ 17.94       4.71   $ 187,475       1.25     1.25 %(17)      0.93     41

B

    16.45       0.02       0.48       0.50       (0.01     (1.24     (1.25     15.70       3.75       695       2.41       2.11 (17)      0.11       41  

C

    16.34       0.03       0.49       0.52       (0.10     (1.24     (1.34     15.52       3.93       22,223       1.97       1.97 (17)      0.21       41  

I

    18.47       0.21       0.57       0.78       (0.26     (1.24     (1.50     17.75       5.03       19,139       0.92       0.92 (17)      1.23       41  

R3

    18.83       0.11       0.58       0.69       (0.15     (1.24     (1.39     18.13       4.39       2,783       1.54       1.54 (17)      0.64       41  

R4

    19.03       0.17       0.59       0.76       (0.21     (1.24     (1.45     18.34       4.73       8,720       1.22       1.22 (17)      0.96       41  

R5

    19.19       0.22       0.59       0.81       (0.27     (1.24     (1.51     18.49       5.04       2,025       0.92       0.92 (17)      1.27       41  

Y

    19.24       0.26       0.58       0.84       (0.29     (1.24     (1.53     18.55       5.14       845       0.81       0.81 (17)      1.46       41  

 

The accompanying notes are an integral part of these financial statements.

 

 

  99  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Small Cap Growth Fund  

For the Year Ended October 31, 2020

 

A

  $   45.71     $   (0.28   $   6.67     $   6.39     $   —     $ (0.75   $ (0.75   $ 51.35       14.06   $ 198,430       1.26     1.25     (0.60 )%      58

C

    30.90       (0.39     4.46       4.07             (0.75     (0.75     34.22       13.31       12,323       1.91       1.91       (1.25     58  

I

    48.05       (0.09     7.02       6.93             (0.75     (0.75     54.23       14.50       98,673       0.85       0.85       (0.19     58  

R3

    45.05       (0.38     6.55       6.17             (0.75     (0.75     50.47       13.80       7,485       1.49       1.49       (0.83     58  

R4

    47.69       (0.26     6.96       6.70             (0.75     (0.75     53.64       14.13       31,169       1.19       1.19       (0.52     58  

R5

    50.57       (0.12     7.40       7.28             (0.75     (0.75     57.10       14.47       71,754       0.89       0.89       (0.23     58  

R6

    51.36       (0.06     7.52       7.46             (0.75     (0.75     58.07       14.62       80,327       0.78       0.78       (0.12     58  

Y

    51.39       (0.08     7.51       7.43             (0.75     (0.75     58.07       14.58       255,484       0.88       0.81       (0.16     58  

F

    48.23       (0.06     7.06       7.00             (0.75     (0.75     54.48       14.62       44,376       0.78       0.78       (0.13     58  

For the Year Ended October 31, 2019

 

A

  $ 55.20     $ (0.21   $ 2.62     $ 2.41     $     $   (11.90   $   (11.90   $   45.71       8.99   $   195,314       1.24     1.24     (0.46 )%      48

C

    41.81       (0.34     1.33       0.99             (11.90     (11.90     30.90       8.27       15,722       1.89       1.89       (1.11     48  

I

    57.17       (0.02     2.80       2.78             (11.90     (11.90     48.05       9.41       191,482       0.83       0.83       (0.05     48  

R3

    54.70       (0.31     2.56       2.25             (11.90     (11.90     45.05       8.72       10,036       1.47       1.47       (0.69     48  

R4

    56.99       (0.18     2.78       2.60             (11.90     (11.90     47.69       9.05       42,296       1.17       1.17       (0.39     48  

R5

    59.48       (0.03     3.02       2.99             (11.90     (11.90     50.57       9.40       82,624       0.85       0.85       (0.07     48  

R6

    60.16       0.00 (12)      3.10       3.10             (11.90     (11.90     51.36       9.49       66,260       0.76       0.76       0.01       48  

Y

    60.20       (0.01     3.10       3.09             (11.90     (11.90     51.39       9.44       365,867       0.82       0.80       (0.01     48  

F

    57.30       0.01       2.82       2.83             (11.90     (11.90     48.23       9.49       46,533       0.76       0.76       0.02       48  

For the Year Ended October 31, 2018

 

A

  $ 57.24     $ (0.33   $ 1.03     $ 0.70     $     $ (2.74   $ (2.74   $ 55.20       1.20   $ 203,297       1.21     1.20     (0.56 )%      66

C

    44.29       (0.55     0.81       0.26             (2.74     (2.74     41.81       0.53       23,212       1.88       1.88       (1.22     66  

I

    58.97       (0.10     1.04       0.94             (2.74     (2.74     57.17       1.59       243,340       0.82       0.82       (0.16     66  

R3

    56.89       (0.48     1.03       0.55             (2.74     (2.74     54.70       0.94       13,210       1.47       1.47       (0.82     66  

R4

    58.98       (0.31     1.06       0.75             (2.74     (2.74     56.99       1.26       69,097       1.15       1.15       (0.50     66  

R5

    61.26       (0.12     1.08       0.96             (2.74     (2.74     59.48       1.56       94,887       0.85       0.85       (0.20     66  

R6

    61.87       (0.09     1.12       1.03             (2.74     (2.74     60.16       1.66       44,278       0.75       0.75       (0.14     66  

Y

    61.93       (0.09     1.10       1.01             (2.74     (2.74     60.20       1.63       358,049       0.79       0.79       (0.14     66  

F

    59.06       (0.06     1.04       0.98             (2.74     (2.74     57.30       1.66       47,999       0.75       0.75       (0.10     66  

For the Year Ended October 31, 2017

 

A

  $ 44.55     $ (0.25   $   13.25     $   13.00     $     $ (0.31   $ (0.31   $ 57.24       29.28   $ 215,743       1.17     1.16     (0.48 )%      56

C

    34.78       (0.48     10.30       9.82             (0.31     (0.31     44.29       28.36       36,531       1.89       1.88       (1.19     56  

I

    45.79       (0.18     13.67       13.49             (0.31     (0.31     58.97       29.56       429,401       1.03       0.95       (0.33     56  

R3

    44.42       (0.41     13.19       12.78             (0.31     (0.31     56.89       28.87       14,427       1.48       1.48       (0.79     56  

R4

    45.90       (0.26     13.65       13.39             (0.31     (0.31     58.98       29.27       76,315       1.16       1.16       (0.48     56  

R5

    47.52       (0.10     14.15       14.05             (0.31     (0.31     61.26       29.67       118,794       0.86       0.86       (0.17     56  

R6

    47.94       (0.06     14.30       14.24             (0.31     (0.31     61.87       29.80       10,596       0.76       0.76       (0.11     56  

Y

    48.00       (0.05     14.29       14.24             (0.31     (0.31     61.93       29.76       370,006       0.78       0.78       (0.09     56  

F(5)

    52.62       (0.09     6.53       6.44                         59.06       12.24 (6)      47,409       0.75 (7)      0.75 (7)      (0.24 )(7)      56  

For the Year Ended October 31, 2016

 

A

  $ 48.56     $ (0.19   $ 0.11 (16)    $ (0.08   $     $ (3.93   $ (3.93   $ 44.55       0.02   $ 197,738       1.25     1.25     (0.44 )%      45

B

    39.35       (0.43     0.05 (16)      (0.38           (3.93     (3.93     35.04       (0.84     606       2.35       2.09       (1.23     45  

C

    39.03       (0.39     0.07 (16)      (0.32           (3.93     (3.93     34.78       (0.65     37,807       1.94       1.94       (1.13     45  

I

    49.68       (0.07     0.11 (16)      0.04             (3.93     (3.93     45.79       0.28       137,606       0.99       0.99       (0.16     45  

R3

    48.54       (0.30     0.11 (16)      (0.19           (3.93     (3.93     44.42       (0.24     12,708       1.51       1.51       (0.70     45  

R4

    49.87       (0.18     0.14 (16)      (0.04           (3.93     (3.93     45.90       0.09       66,273       1.19       1.19       (0.39     45  

R5

    51.35       (0.04     0.14 (16)      0.10             (3.93     (3.93     47.52       0.40       102,166       0.89       0.89       (0.09     45  

R6

    51.73       (0.04     0.18 (16)      0.14             (3.93     (3.93     47.94       0.46       4,072       0.79       0.79       (0.09     45  

Y

    51.78       0.01       0.14 (16)      0.15             (3.93     (3.93     48.00       0.50       290,401       0.79       0.79       0.01       45  

 

The accompanying notes are an integral part of these financial statements.

 

 

  100  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Small Cap Value Fund  

For the Year Ended October 31, 2020

 

A

  $ 10.35     $   0.09     $   (1.49   $   (1.40   $   (0.08   $   (0.58   $   (0.66   $ 8.29       (14.57 )%    $ 32,996       1.41     1.29     1.04     62

C

    8.96       0.02       (1.28     (1.26     (0.00 )(12)      (0.58     (0.58     7.12       (15.15     2,020       2.15       2.04       0.29       62  

I

    10.37       0.12       (1.48     (1.36     (0.12     (0.58     (0.70     8.31       (14.22     2,915       1.04       0.93       1.43       62  

R3

    10.73       0.08       (1.54     (1.46     (0.07     (0.58     (0.65     8.62       (14.62     457       1.63       1.42       0.92       62  

R4

    10.89       0.10       (1.56     (1.46     (0.09     (0.58     (0.67     8.76       (14.46     30       1.33       1.20       1.10       62  

R5

    10.87       0.13       (1.56     (1.43     (0.12     (0.58     (0.70     8.74       (14.21     10       1.03       0.90       1.51       62  

R6

    10.87       0.12       (1.54     (1.42     (0.13     (0.58     (0.71     8.74       (14.17     240       0.92       0.80       1.42       62  

Y

    10.86       0.13       (1.55     (1.42     (0.13     (0.58     (0.71     8.73       (14.18     250       1.02       0.85       1.50       62  

F

    10.38       0.13       (1.49     (1.36     (0.13     (0.58     (0.71     8.31       (14.22     40,447       0.91       0.80       1.53       62  

For the Year Ended October 31, 2019

 

A

  $   13.65     $ 0.10     $ (0.04   $ 0.06     $ (0.03   $ (3.33   $ (3.36   $   10.35       3.46   $ 47,037       1.37     1.27     0.98     140

C

    12.35       0.02       (0.08     (0.06           (3.33     (3.33     8.96       2.60       3,719       2.14       2.04       0.26       140  

I

    13.68       0.14       (0.05     0.09       (0.07     (3.33     (3.40     10.37       3.77       4,354       1.00       0.90       1.34       140  

R3

    14.02       0.09       (0.03     0.06       (0.02     (3.33     (3.35     10.73       3.31       609       1.62       1.42       0.82       140  

R4

    14.16       0.11       (0.03     0.08       (0.02     (3.33     (3.35     10.89       3.52       69       1.31       1.20       1.01       140  

R5

    14.16       0.16       (0.05     0.11       (0.07     (3.33     (3.40     10.87       3.82       11       1.01       0.90       1.44       140  

R6

    14.15       0.15       (0.02     0.13       (0.08     (3.33     (3.41     10.87       3.99       103       0.89       0.80       1.39       140  

Y

    14.15       0.16       (0.04     0.12       (0.08     (3.33     (3.41     10.86       3.94       572       0.97       0.85       1.43       140  

F

    13.68       0.15       (0.04     0.11       (0.08     (3.33     (3.41     10.38       3.99       48,425       0.89       0.80       1.43       140  

For the Year Ended October 31, 2018

 

A

  $ 14.13     $ 0.04     $ 0.10     $ 0.14     $ (0.02   $ (0.60   $ (0.62   $ 13.65       1.00   $ 52,406       1.35     1.29     0.28     68

C

    12.91       (0.06     0.10       0.04             (0.60     (0.60     12.35       0.27       6,444       2.13       2.04       (0.44     68  

I

    14.15       0.09       0.10       0.19       (0.06     (0.60     (0.66     13.68       1.33       3,756       1.02       0.95       0.62       68  

R3

    14.50       0.03       0.09       0.12             (0.60     (0.60     14.02       0.82       529       1.62       1.43       0.18       68  

R4

    14.61       0.06       0.10       0.16       (0.01     (0.60     (0.61     14.16       1.07       48       1.32       1.20       0.41       68  

R5

    14.63       0.10       0.10       0.20       (0.07     (0.60     (0.67     14.16       1.39       36       1.02       0.90       0.71       68  

R6(15)

    13.99       0.05       0.11       0.16                         14.15       1.14 (6)      10       0.91 (7)      0.84 (7)      0.47 (7)      68  

Y

    14.66       0.11       0.10       0.21       (0.12     (0.60     (0.72     14.15       1.42       646       0.96       0.85       0.74       68  

F

    14.16       0.11       0.09       0.20       (0.08     (0.60     (0.68     13.68       1.42       38,087       0.90       0.84       0.80       68  

For the Year Ended October 31, 2017

 

A

  $ 11.56     $ 0.04     $ 2.63     $ 2.67     $ (0.10   $     $ (0.10   $ 14.13       23.19   $ 53,057       1.28     1.27     0.32     83

C

    10.58       (0.05     2.40       2.35       (0.02           (0.02     12.91       22.24       11,081       2.03       2.01       (0.41     83  

I

    11.58       0.08       2.63       2.71       (0.14           (0.14     14.15       23.53       3,225       1.01       1.00       0.60       83  

R3

    11.87       0.01       2.69       2.70       (0.07           (0.07     14.50       22.79       723       1.63       1.50       0.09       83  

R4

    11.94       0.05       2.70       2.75       (0.08           (0.08     14.61       23.11       113       1.36       1.20       0.36       83  

R5

    11.96       0.10       2.71       2.81       (0.14           (0.14     14.63       23.63       44       1.01       0.90       0.74       83  

Y

    12.00       0.11       2.71       2.82       (0.16           (0.16     14.66       23.58       1,242       0.86       0.85       0.78       83  

F(5)

    13.22       0.05       0.89       0.94                         14.16       7.11 (6)      86,675       0.88 (7)      0.85 (7)      0.52 (7)      83  

For the Year Ended October 31, 2016

 

A

  $ 12.35     $ 0.10     $ (0.15 )(16)    $ (0.05   $ (0.02   $ (0.72   $ (0.74   $ 11.56       (0.22 )%    $ 46,270       1.35     1.31 %(18)      0.85     94

B

    11.58       0.01       (0.14 )(16)      (0.13           (0.72     (0.72     10.73       (0.93     798       2.25       2.06 (18)      0.10       94  

C

    11.43       0.01       (0.14 )(16)      (0.13           (0.72     (0.72     10.58       (0.94     10,410       2.08       2.06 (18)      0.11       94  

I

    12.38       0.13       (0.15 )(16)      (0.02     (0.06     (0.72     (0.78     11.58       0.05       2,582       1.01       1.00 (18)      1.17       94  

R3

    12.67       0.08       (0.16 )(16)      (0.08           (0.72     (0.72     11.87       (0.43     734       1.61       1.51 (18)      0.65       94  

R4

    12.72       0.11       (0.15 )(16)      (0.04     (0.02     (0.72     (0.74     11.94       (0.09     267       1.30       1.21 (18)      0.96       94  

R5

    12.78       0.13       (0.14 )(16)      (0.01     (0.09     (0.72     (0.81     11.96       0.16       44       1.00       0.91 (18)      1.08       94  

Y

    12.77       0.16       (0.15 )(16)      0.01       (0.06     (0.72     (0.78     12.00       0.31         110,028       0.88       0.86 (18)      1.36       94  

 

The accompanying notes are an integral part of these financial statements.

 

 

  101  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Small Company Fund  

For the Year Ended October 31, 2020

 

A

  $   20.35     $   (0.14   $   6.57     $   6.43     $   —     $   (1.28   $   (1.28   $   25.50       33.21   $   389,496       1.32     1.31     (0.66 )%      104

C

    13.30       (0.20     4.15       3.95             (1.28     (1.28     15.97       32.08       9,058       2.14       2.14       (1.50     104  

I

    21.65       (0.08     7.02       6.94             (1.28     (1.28     27.31       33.59       35,806       1.00       1.00       (0.35     104  

R3

    22.29       (0.21     7.22       7.01             (1.28     (1.28     28.02       32.91       14,013       1.61       1.55       (0.90     104  

R4

    23.88       (0.15     7.77       7.62             (1.28     (1.28     30.22       33.29       13,363       1.30       1.25       (0.60     104  

R5

    25.40       (0.08     8.29       8.21             (1.28     (1.28     32.33       33.64       3,936       1.01       0.95       (0.30     104  

R6

    25.97       (0.13     8.56       8.43             (1.28     (1.28     33.12       33.75       1,530       0.90       0.90       (0.42     104  

Y

    25.95       (0.08     8.48       8.40             (1.28     (1.28     33.07       33.65       19,956       0.96       0.95       (0.29     104  

F

    21.76       (0.06     7.07       7.01             (1.28     (1.28     27.49       33.75       243,057       0.90       0.90       (0.24     104  

For the Year Ended October 31, 2019

 

A

  $ 22.20     $ (0.13   $ 2.28     $ 2.15     $     $ (4.00   $ (4.00   $ 20.35       14.08   $ 311,742       1.33     1.32     (0.66 )%      91

C

    16.11       (0.19     1.38       1.19             (4.00     (4.00     13.30       13.24       9,929       2.14       2.13       (1.46     91  

I

    23.28       (0.08     2.45       2.37             (4.00     (4.00     21.65       14.48       26,939       1.04       1.03       (0.37     91  

R3

    23.95       (0.19     2.53       2.34             (4.00     (4.00     22.29       13.84       14,142       1.62       1.55       (0.89     91  

R4

    25.28       (0.14     2.74       2.60             (4.00     (4.00     23.88       14.20       14,261       1.32       1.25       (0.59     91  

R5

    26.53       (0.07     2.94       2.87             (4.00     (4.00     25.40       14.56       3,239       1.02       0.95       (0.29     91  

R6

    27.02       (0.06     3.01       2.95             (4.00     (4.00     25.97       14.60       206       0.90       0.90       (0.23     91  

Y

    27.01       (0.06     3.00       2.94             (4.00     (4.00     25.95       14.56       32,472       0.94       0.93       (0.26     91  

F

    23.35       (0.05     2.46       2.41             (4.00     (4.00     21.76       14.63       193,242       0.90       0.90       (0.23     91  

For the Year Ended October 31, 2018

 

A

  $ 20.34     $ (0.20   $ 2.06     $ 1.86     $     $     $     $ 22.20       9.20   $ 283,912       1.34     1.33     (0.87 )%      104

C

    14.87       (0.27     1.51       1.24                         16.11       8.34       11,729       2.12       2.10       (1.64     104  

I

    21.27       (0.14     2.15       2.01                         23.28       9.45       28,540       1.07       1.05       (0.60     104  

R3

    21.98       (0.27     2.24       1.97                         23.95       8.92       16,386       1.63       1.55       (1.09     104  

R4

    23.14       (0.20     2.34       2.14                         25.28       9.25       15,295       1.32       1.25       (0.79     104  

R5

    24.21       (0.14     2.46       2.32                         26.53       9.58       2,678       1.03       0.95       (0.51     104  

R6

    24.64       (0.12     2.50       2.38                         27.02       9.66       144       0.91       0.90       (0.42     104  

Y

    24.64       (0.12     2.49       2.37                         27.01       9.66       35,351       0.92       0.90       (0.44     104  

F

    21.30       (0.11     2.16       2.05                         23.35       9.63       115,365       0.91       0.90       (0.45     104  

For the Year Ended October 31, 2017

 

A

  $ 15.74     $ (0.12   $ 4.72     $ 4.60     $     $     $     $ 20.34       29.16   $ 252,187       1.39     1.37     (0.64 )%      109

C

    11.60       (0.19     3.46       3.27                         14.87       28.19       26,529       2.12       2.10       (1.40     109  

I

    16.43       (0.10     4.94       4.84                         21.27       29.40       28,052       1.49       1.15       (0.51     109  

R3

    17.05       (0.17     5.10       4.93                         21.98       28.91       23,932       1.63       1.55       (0.84     109  

R4

    17.89       (0.11     5.36       5.25                         23.14       29.29       23,080       1.32       1.25       (0.53     109  

R5

    18.67       (0.04     5.58       5.54                         24.21       29.67       3,263       1.06       0.95       (0.20     109  

R6

    18.99       (0.09     5.74       5.65                         24.64       29.75       78       1.07       0.90       (0.38     109  

Y

    18.99       (0.02     5.67       5.65                         24.64       29.70       33,040       0.94       0.90       (0.08     109  

F(5)

    18.76       (0.05     2.59       2.54                         21.30       13.49 (6)      81,831       0.92 (7)      0.90 (7)      (0.38 )(7)      109  

For the Year Ended October 31, 2016

 

A

  $ 19.36     $ (0.14   $ (0.90   $ (1.04   $   —     $ (2.58   $ (2.58   $ 15.74       (5.73 )%    $ 262,618       1.45     1.43 %(19)      (0.87 )%      81

B

    15.08       (0.19     (0.69     (0.88           (2.58     (2.58     11.62       (6.40     862       2.46       2.17 (19)      (1.59     81  

C

    15.06       (0.19     (0.69     (0.88           (2.58     (2.58     11.60       (6.41     25,586       2.14       2.14 (19)      (1.58     81  

I

    20.04       (0.10     (0.93     (1.03           (2.58     (2.58     16.43       (5.45     41,881       1.24       1.18 (19)      (0.61     81  

R3

    20.77       (0.18     (0.96     (1.14           (2.58     (2.58     17.05       (5.83     29,662       1.62       1.58 (19)      (1.02     81  

R4

    21.61       (0.13     (1.01     (1.14           (2.58     (2.58     17.89       (5.58     27,834       1.31       1.28 (19)      (0.71     81  

R5

    22.37       (0.07     (1.05     (1.12           (2.58     (2.58     18.67       (5.27     5,283       1.00       0.97 (19)      (0.37     81  

R6

    22.69       (0.06     (1.06     (1.12           (2.58     (2.58     18.99       (5.18     9       0.90       0.90 (19)      (0.34     81  

Y

    22.69       (0.06     (1.06     (1.12           (2.58     (2.58     18.99       (5.18     98,620       0.90       0.90 (19)      (0.33     81  

 

(1) 

Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.

 

The accompanying notes are an integral part of these financial statements.

 

 

  102  

 


Hartford Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

(2) 

Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account.

(3) 

Adjustments include waivers and reimbursements, if applicable. Ratios do not include fees paid indirectly (see Expenses in the accompanying Notes to Financial Statements).

(4) 

Includes interest expense representing less than 0.005%.

(5) 

Commenced operations on February 28, 2017.

(6) 

Not annualized.

(7) 

Annualized.

(8) 

Excluding the expenses not subject to cap, the ratios would have been 1.09%, 1.98%, 1.81%, 0.79%, 1.40%, 1.10%, 0.80%, 0.70% and 0.70% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5, Class R6 and Class Y, respectively.

(9)

Excluding the expenses not subject to cap, the ratios would have been 0.79%, 1.54%, 1.54%, 0.54%, 1.09%, 0.79%, 0.49%, 0.42% and 0.42% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5, Class R6 and Class Y, respectively.

(10) 

Excluding the expenses not subject to cap, the ratios would have been 1.02%, 1.95%, 1.76%, 0.82%, 1.35%, 1.05%, 0.75%, 0.65% and 0.65% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5, Class R6 and Class Y, respectively.

(11) 

Excluding the expenses not subject to cap, the ratios would have been 1.12%, 2.04%, 1.87%, 0.91%, 1.45%, 1.15%, 0.85%, 0.75% and 0.76% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5, Class R6 and Class Y, respectively.

(12) 

Amount is less than $0.01 per share.

(13) 

Commenced operations on February 28, 2019.

(14) 

Excluding the expenses not subject to cap, the ratios would have been 1.28%, 2.10%, 2.00%, 1.04%, 1.54%, 1.23%, 0.93% and 0.83% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5 and Class Y, respectively.

(15) 

Commenced operations on February 28, 2018.

(16) 

Per share amount was not in accord with the net realized and unrealized gain (loss) for the period because of the timing of transactions in shares of the Fund and the amount and timing of per-share net realized and unrealized gain (loss) on such shares.

(17) 

Excluding the expenses not subject to cap, the ratios would have been 1.23%, 2.09%, 1.95%, 0.90%, 1.52%, 1.20%, 0.90% and 0.79% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5 and Class Y, respectively.

(18)

Excluding the expenses not subject to cap, the ratios would have been 1.30%, 2.05%, 2.05%, 0.99%, 1.50%, 1.20%, 0.90% and 0.85% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5 and Class Y, respectively.

(19) 

Excluding the expenses not subject to cap, the ratios would have been 1.40%, 2.15%, 2.11%, 1.15%, 1.55%, 1.25%, 0.95%, 0.88% and 0.88% for Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5, Class R6 and Class Y, respectively.

(20) 

Amount is less than 0.01%.

 

The accompanying notes are an integral part of these financial statements.

 

 

  103  

 


Hartford Domestic Equity Funds

Notes to Financial Statements

October 31, 2020

 

 

 

1.

Organization:

The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (each, a “Company” and collectively, the “Companies”) are each an open-end registered management investment company comprised of thirty-six and fourteen series, respectively, as of October 31, 2020. Financial statements for the series of each Company listed below (each, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

The Hartford Capital Appreciation Fund (the “Capital Appreciation Fund”)

Hartford Core Equity Fund (the “Core Equity Fund”)

The Hartford Dividend and Growth Fund (the “Dividend and Growth Fund”)

The Hartford Equity Income Fund (the “Equity Income Fund”)

The Hartford Healthcare Fund (the “Healthcare Fund”)

The Hartford MidCap Fund (the “MidCap Fund”)

The Hartford MidCap Value Fund (the “MidCap Value Fund”)

Hartford Small Cap Value Fund (the “Small Cap Value Fund”)

The Hartford Small Company Fund (the “Small Company Fund”)

The Hartford Mutual Funds II, Inc.:

The Hartford Growth Opportunities Fund (the “Growth Opportunities Fund”)

Hartford Quality Value Fund (the “Quality Value Fund”)

The Hartford Small Cap Growth Fund (the “Small Cap Growth Fund”)

The assets of each Fund are separate, and a shareholder’s interest is limited to the Fund in which shares are held. Each Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting standards under Accounting Standards Codification Topic 946, “Financial Services – Investment Companies”.

Each Fund has registered for sale Class A, Class C, Class I, Class R3, Class R4, Class R5, Class Y and Class F shares. Core Equity Fund has registered for sale Class T shares. As of October 31, 2020, Class T shares have not commenced operations. Each Fund, except the MidCap Value Fund, has registered for sale Class R6 shares. Class A shares are sold with a front-end sales charge of up to 5.50%. Class T shares have a front-end sales charge of up to 2.50%. Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Effective October 1, 2018, Class C shares automatically convert to Class A shares of the same Fund after ten years provided that the Fund or the financial intermediary has records verifying that the Class C shares have been held for at least ten years. Classes I, R3, R4, R5, R6, Y and F shares do not have a sales charge.

 

2.

Significant Accounting Policies:

The following is a summary of significant accounting policies of each Fund used in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

  a)

Determination of Net Asset Value – The net asset value (“NAV”) of each class of each Fund’s shares is determined as of the close of regular trading on the New York Stock Exchange (the “Exchange”) (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the Exchange is open (“Valuation Date”). If the Exchange is closed due to weather or other extraordinary circumstances on a day it would typically be open for business, each Fund may treat such day as a typical business day and accept purchase and redemption orders and calculate each Fund’s NAV in accordance with applicable law. The NAV for each class of shares of each Fund is determined by dividing the value of the Fund’s net assets attributable to a class of shares by the number of shares outstanding. Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b)

Investment Valuation and Fair Value Measurements For purposes of calculating the NAV of each class of each Fund, portfolio securities and other assets held in the Fund’s portfolio for which market prices are readily available are valued at market value. Market value is generally determined on the basis of official close price or last reported trade price. If no trades were reported, market value is based on prices obtained from a quotation reporting system, established market makers (including evaluated prices), or independent pricing services. Pricing vendors may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, general market conditions, news, and other factors and assumptions.

 

 

  104  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

If market prices are not readily available or are deemed unreliable, a Fund will use the fair value of the security or other instrument as determined in good faith under policies and procedures established by and under the supervision of the Board of Directors of the respective Company (the “Board of Directors”) (“Valuation Procedures”). Market prices are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of a Fund’s portfolio holdings or assets. In addition, market prices are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities or other instruments trade do not open for trading for the entire day and no other market prices are available. Fair value pricing is subjective in nature and the use of fair value pricing by a Fund may cause the NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio holding is primarily traded. There can be no assurance that a Fund could obtain the fair value assigned to an investment if the Fund were to sell the investment at approximately the time at which the Fund determines its NAV.

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Securities and other instruments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign securities or other instruments in which a Fund invests may change on days when a shareholder will not be able to purchase, redeem or exchange of the Fund.

Fixed income investments (other than short-term obligations) held by a Fund are normally valued at prices supplied by independent pricing services in accordance with the Valuation Procedures. Short-term investments maturing in 60 days or less are generally valued at amortized cost.

Exchange-traded derivatives, such as options, futures and options on futures, are valued at the last sale price determined by the exchange where such instruments principally trade as of the close of such exchange (“Exchange Close”). If a last sale price is not available, the value will be the mean of the most recently quoted bid and ask prices as of the Exchange Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the most recently quoted bid price as of the Exchange Close. Over-the-counter derivatives are normally valued based on prices supplied by independent pricing services in accordance with the Valuation Procedures.

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using the prevailing spot currency exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities or other instruments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Exchange is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of a Fund.

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

Investments in open-end mutual funds, if any, are valued at the respective NAV of each open-end mutual fund on the Valuation Date. Shares of investment companies listed and traded on an exchange are valued in the same manner as any exchange-listed equity security. Such open-end mutual funds and listed investment companies may use fair value pricing as disclosed in their prospectuses.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with the Valuation Procedures.

U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

   

Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.

   

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.

 

 

  105  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

   

Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

The Board of Directors has delegated the day-to-day responsibility for implementing the Valuation Procedures to the Valuation Committee. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of such Fund’s sub-adviser(s), as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Board of Directors.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follows each Fund’s Schedule of Investments.

 

  c)

Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

Dividend income from domestic securities is accrued on the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, a Fund will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available.

Interest income, including amortization of premium, accretion of discounts and additional principal received in-kind in lieu of cash, is accrued on a daily basis.

Please refer to Note 8 for Securities Lending information.

 

  d)

Taxes – A Fund may be subject to taxes imposed on realized gains on securities of certain foreign countries in which such Fund invests. A Fund may also be subject to taxes withheld on foreign dividends from securities in which the Fund invests. The amount of any foreign taxes withheld and foreign tax expense is included on the accompanying Statements of Operations as a reduction to net investment income or net realized or unrealized gain on investments in these securities, if applicable.

 

  e)

Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the Valuation Date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

A Fund does not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements.

Net realized foreign exchange gains or losses arise from sales of foreign currencies and the difference between asset and liability amounts initially stated in foreign currencies and the U.S. dollar value of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of other assets and liabilities at the end of the reporting period, resulting from changes in the exchange rates.

 

  f)

Joint Trading Account – A Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements.

 

  g)

Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each class of each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each class of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class of the Fund. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

 

 

  106  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV determined as of the close of the Exchange. Orders received after the close of the Exchange, or on a day on which the Exchange and/or the Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by the respective Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of each Fund, except Dividend and Growth Fund and Equity Income Fund, is to pay dividends from net investment income and realized gains, if any, at least once a year. The policy of Dividend and Growth Fund and Equity Income Fund is to pay dividends from net investment income, if any, quarterly and realized gains, if any, at least once a year.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts notes).

 

3.

Securities and Other Investments:

 

  a)

Restricted Securities – Each Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if applicable, is included at the end of each Fund’s Schedule of Investments.

 

  b)

Repurchase Agreements – A repurchase agreement is an agreement between two parties whereby one party sells the other a security at a specified price with a commitment to repurchase the security later at an agreed-upon price, date and interest payment. Each Fund is permitted to enter into fully collateralized repurchase agreements. Each Company’s Board of Directors has delegated to the sub-adviser the responsibility of evaluating the creditworthiness of the banks and securities dealers with which the Funds will engage in repurchase agreements. The sub-adviser will monitor such transactions to ensure that the value of underlying collateral will be at least equal to the total amount of the repurchase obligation as required by the valuation provision of the repurchase agreement, including the accrued interest. Repurchase agreements carry the risk that the market value of the securities declines below the repurchase price. A Fund could also lose money if it is unable to recover the securities and the value of any collateral held or assets segregated by the Fund to cover the transaction is less than the value of the securities. In the event the borrower commences bankruptcy proceedings, a court may characterize the transaction as a loan. If a Fund has not perfected a security interest in the underlying collateral, the Fund may be required to return the underlying collateral to the borrower’s estate and be treated as an unsecured creditor. As an unsecured creditor, the Fund could lose some or all of the principal and interest involved in the transaction. See each Fund’s Schedule of Investments, if applicable, for repurchase agreements as of October 31, 2020.

 

4.

Financial Derivative Instruments:

The following disclosures contain information on how and why a Fund may use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to the Schedules of Investments, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a)

Futures Contracts – A Fund may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund may use futures contracts to manage risk or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and an appropriate amount equal to the change in value (“variation margin”) is paid or received by a Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities.

During the year ended October 31, 2020, each of Capital Appreciation Fund and Core Equity Fund had used futures contracts.

 

 

  107  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  b)

Additional Derivative Instrument Information:

Capital Appreciation Fund

The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

 

Liabilities:

 

Unrealized depreciation on futures contracts(1)

   $     —      $     —      $     —      $     2,106,396      $     —      $     —      $     2,106,396  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $      $      $ 2,106,396      $      $      $ 2,106,396  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1) 

Amount represents the cumulative appreciation and depreciation on futures contracts as disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
    Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain (Loss) on Derivatives Recognized as a
Result of Operations:

                   

Net realized gain (loss) on futures contracts

   $     —      $     —      $     —      $     7,584,431     $     —      $     —      $     7,584,431  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $      $      $      $ 7,584,431     $      $      $ 7,584,431  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                   

Net change in unrealized appreciation (depreciation) of
futures contracts

   $      $      $      $ (3,525,277   $      $      $ (3,525,277
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $      $      $      $ (3,525,277   $      $      $ (3,525,277
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

For the year ended October 31, 2020, the average monthly amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

   Average Notional
Par, Contracts
or Face Amount
 

Futures Contracts Long at Number of Contracts

     464  

Core Equity Fund

The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

 

Liabilities:

 

Unrealized depreciation on futures contracts(1)

   $     —      $     —      $     —      $     2,034,977      $     —      $     —      $     2,034,977  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $      $      $ 2,034,977      $      $      $ 2,034,977  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1) 

Amount represents the cumulative appreciation and depreciation on futures contracts as disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, is reported within the Statement of Assets and Liabilities.

 

 

  108  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Core Equity Fund – (continued)

 

The Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
    Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain (Loss) on Derivatives Recognized as a Result of Operations:

                   

Net realized gain (loss) on futures contracts

   $     —      $     —      $     —      $     22,139,276     $     —      $     —      $     22,139,276  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $      $      $      $ 22,139,276     $      $      $ 22,139,276  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                   

Net change in unrealized appreciation (depreciation) of futures contracts

   $      $      $      $ (3,628,070   $      $      $ (3,628,070
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $      $      $      $ (3,628,070   $      $      $ (3,628,070
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

For the year ended October 31, 2020, the average monthly amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

   Average Notional
Par, Contracts
or Face Amount

Futures Contracts Long at Number of Contracts

   508

 

  c)

Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and a Fund’s custodian. The master netting arrangements allow the clearing brokers to net any collateral held in or on behalf of a Fund, or liabilities or payment obligations of the clearing brokers to a Fund, against any liabilities or payment obligations of a Fund to the clearing brokers. A Fund is required to deposit financial collateral (including cash collateral) at the Fund’s custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present a Fund’s derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statements of Assets and Liabilities, by counterparty net of amounts available for offset under a master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by a Fund as of October 31, 2020:

Capital Appreciation Fund

 

Derivative Financial Instruments:

   Assets      Liabilities  

Futures contracts

   $      $ (2,106,396
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

            (2,106,396
  

 

 

    

 

 

 

Derivatives not subject to a MNA

                 2,106,396  
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

   $     —      $  
  

 

 

    

 

 

 

Core Equity Fund

 

Derivative Financial Instruments:

   Assets      Liabilities  

Futures contracts

   $     —      $ (2,034,977
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

            (2,034,977
  

 

 

    

 

 

 

Derivatives not subject to a MNA

                 2,034,977  
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

   $      $  
  

 

 

    

 

 

 

 

5.

Principal Risks:

A Fund’s investments expose it to various types of risks associated with financial instruments and the markets. A Fund may be exposed to the risks described below. Each Fund’s prospectus provides details of its principal risks.

The market values of equity securities, such as common stocks and preferred stocks, or equity related derivative investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived

 

 

  109  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s Schedule of Investments.

A widespread health crisis, such as a global pandemic, could cause substantial market volatility, exchange trading suspensions or restrictions and closures of securities exchanges and businesses, impact the ability to complete redemptions, and adversely impact Fund performance. The current ongoing outbreak of COVID-19, a respiratory disease caused by a novel coronavirus, has negatively affected the worldwide economy, the financial health of individual companies and the market in significant and unforeseen ways. The future impact of the ongoing COVID-19 pandemic remains unclear. The effects to public health, business and market conditions resulting from COVID-19 pandemic may have a significant negative impact on the performance of a Fund’s investments, including exacerbating other pre-existing political, social and economic risks.

Investing in the securities of non-U.S. issuers, whether directly or indirectly, involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations; imposition of restrictions on the expatriation of funds or other protectionist measures; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; and greater social, economic and political uncertainties. Non-U.S. issuers may also be affected by political, social, economic or diplomatic developments in a foreign country or region or the U.S. (including the imposition of sanctions, tariffs, or other governmental restrictions). These risks are heightened for investments in issuers from countries with less developed markets.

Securities lending involves the risk that a Fund may lose money because the borrower of the loaned securities fails to return the securities in a timely manner or at all. A Fund could also lose money in the event of a decline in the value of the collateral provided for the loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for a Fund that lends its holdings.

 

6.

Federal Income Taxes:

 

  a)

Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders each year. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2020. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b)

Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), RICs, certain derivatives and partnerships. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by each Fund.

 

  c)

Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2020 and October 31, 2019 are as follows:

 

     For the Year Ended
October 31, 2020
     For the Year
Ended October 31, 2019
 

Fund

   Ordinary
Income
     Long-Term
Capital Gains(1)
     Ordinary
Income
     Long-Term
Capital Gains(1)
 

Capital Appreciation Fund

   $  36,050,954      $  304,034,945      $     448,614,710      $ 622,931,313  

Core Equity Fund

     60,527,093        97,987,927        45,617,203        127,778,830  

Dividend and Growth Fund

         150,668,454        260,565,466        146,320,234        752,059,161  

Equity Income Fund

     71,168,447            255,909,247        86,893,501        297,035,762  

Growth Opportunities Fund

            301,835,007        345,928,919        723,799,792  

Healthcare Fund

     6,049,810        77,681,567               102,046,786  

MidCap Fund

            703,065,084        94,767,016            1,219,235,756  

MidCap Value Fund

     5,747,295        16,708,824        7,032,454        64,802,404  

Quality Value Fund

     4,852,723        5,832,576        9,562,429        8,736,476  

Small Cap Growth Fund

            15,398,605        57,817,003        163,570,299  

Small Cap Value Fund

     1,006,381        6,012,453        3,160,308        22,181,051  

Small Company Fund

            36,747,668        10,391,373        79,093,272  

 

  (1) 

The Funds designate these distributions as long-term capital gains pursuant to IRC Sec 852(b)(3)(c).

 

 

  110  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

As of October 31, 2020, the components of total accumulated earnings (deficit) for each Fund on a tax basis are as follows:

 

Fund

   Undistributed
Ordinary
Income
     Undistributed
Long-Term
Capital Gain
     Accumulated
Capital and
Other
Losses
    Other
Temporary
Differences
     Unrealized
Appreciation
(Depreciation)
on Investments
    Total
Accumulated
Earnings
(Deficit)
 

Capital Appreciation Fund

   $ 24,070,701      $ 326,546,603      $     $     9,602,392      $ 939,928,136     $ 1,300,147,832  

Core Equity Fund

     56,999,980                   (47,413,004                1,938,558,157           1,948,145,133  

Dividend and Growth Fund

     25,799,175        213,872,357                     2,095,844,627       2,335,516,159  

Equity Income Fund

     10,274,475        41,905,899                     602,451,660       654,632,034  

Growth Opportunities Fund

         361,402,932        579,604,617                     1,575,393,476       2,516,401,025  

Healthcare Fund

     27,136,722        157,201,461                     280,103,258       464,441,441  

MidCap Fund

                1,544,552,227                     1,694,504,128       3,239,056,355  

MidCap Value Fund

     2,566,309               (32,798,415            6,136,762       (24,095,344

Quality Value Fund

     4,003,209               (2,509,529            4,172,529       5,666,209  

Small Cap Growth Fund

     14,350,307        46,568,274                     169,007,354       229,925,935  

Small Cap Value Fund

     1,034,382               (5,501,229            (6,853,968     (11,320,815

Small Company Fund

     37,854,012        38,852,060                     165,200,577       241,906,649  

 

  d)

Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as non-deductible expenses from partnership investments, earnings and profits distributed to shareholders on the redemption of shares, and adjustments to prior year accumulated balances. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from distributable earnings or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2020, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

Fund

   Paid-in-Capital      Distributable
Earnings (Loss)
 

Capital Appreciation Fund

   $ 9,532,180      $ (9,532,180

Growth Opportunities Fund

     86,614,310        (86,614,310

Healthcare Fund

     12,205,933        (12,205,933

MidCap Fund

         237,049,819            (237,049,819

Small Cap Growth Fund

     14,155,033        (14,155,033

Small Company Fund

     454,449        (454,449

 

  e)

Tax Basis of Investments – The aggregate cost of investments for federal income tax purposes at October 31, 2020 is different from book purposes primarily due to wash sale loss deferrals, passive foreign investment company (PFIC) mark-to-market adjustments, partnership adjustments and non-taxable distributions from underlying investments. The net unrealized appreciation/(depreciation) on investments for tax purposes, which consists of gross unrealized appreciation and depreciation, was also different from book purposes primarily due to wash sale loss deferrals and mark-to-market adjustments on forwards, futures, PFICs, partnership adjustments and non-taxable distributions from underlying investments. Both the cost and unrealized appreciation and depreciation for federal income tax purposes are disclosed below:

 

Fund

   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
(Depreciation)
    Net Unrealized
Appreciation
(Depreciation)
 

Capital Appreciation Fund

   $ 5,403,671,679      $ 1,168,573,541      $ (228,576,468   $ 939,997,073  

Core Equity Fund

     6,548,350,994        2,125,464,384        (186,906,227     1,938,558,157  

Dividend and Growth Fund

     6,985,688,383        2,453,606,892        (357,762,265     2,095,844,627  

Equity Income Fund

     3,056,150,394        741,922,132        (139,585,240     602,336,892  

Growth Opportunities Fund

     4,782,400,793        1,720,826,561        (145,435,341     1,575,391,220  

Healthcare Fund

     1,207,711,422        384,163,147        (104,074,285     280,088,862  

MidCap Fund

         11,371,491,876            2,576,986,139            (882,482,011         1,694,504,128  

MidCap Value Fund

     591,079,202        50,669,382        (44,532,620     6,136,762  

Quality Value Fund

     165,162,821        21,767,401        (17,594,872     4,172,529  

Small Cap Growth Fund

     639,736,873        210,827,432        (41,820,078     169,007,354  

Small Cap Value Fund

     88,173,994        8,093,917        (14,947,885     (6,853,968

Small Company Fund

     580,551,606        182,256,637        (17,056,060     165,200,577  

 

 

  111  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  f)

Capital Loss Carryforward – Under the Regulated Investment Company Modernization Act of 2010, funds are permitted to carry forward capital losses for an unlimited period. At October 31, 2020 (tax year end), each Fund’s capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

Fund

   Short-Term
Capital Loss
Carryforward
with No
Expiration
     Long-Term
Capital Loss
Carryforward
with No
Expiration
 

Core Equity Fund

   $ 47,413,004      $  

MidCap Value Fund

     17,728,662        15,069,753  

Quality Value Fund

     2,509,529         

Small Cap Value Fund

     1,618,830        3,882,399  

The Capital Appreciation Fund, Dividend and Growth Fund, Equity Income Fund, Growth Opportunities Fund, Healthcare Fund, MidCap Fund, Small Cap Growth Fund and Small Company Fund had no capital loss carryforwards for U.S. federal tax purposes as of October 31, 2020.

 

  g)

Accounting for Uncertainty in Income Taxes – Pursuant to provisions set forth by U.S. GAAP, Hartford Funds Management Company, LLC (“HFMC”) reviews each Fund’s tax positions for all open tax years. As of October 31, 2020, HFMC had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax obligations relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended October 31, 2020, the Funds did not incur any interest or penalties. HFMC is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax obligations will significantly change in the next twelve months.

 

7.

Expenses:

 

  a)

Investment Management Agreement – HFMC serves as each Fund’s investment manager. Each Company, on behalf of its respective Funds, has entered into an Investment Management Agreement with HFMC. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). HFMC has overall investment supervisory responsibility for each Fund. In addition, HFMC provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement and Wellington Management performs the daily investment of the assets of each Fund in accordance with the Fund’s investment objective and policies. HFMC pays a sub-advisory fee to Wellington Management out of its management fee.

The schedule below reflects the rates of compensation paid to HFMC for investment management services rendered as of October 31, 2020; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

Fund

  

Management Fee Rates

Capital Appreciation Fund

  

0.8000% on first $500 million and;

  

0.7000% on next $500 million and;

  

0.6500% on next $4 billion and;

  

0.6475% on next $5 billion and;

  

0.6450% over $10 billion

Core Equity Fund

  

0.4500% on first $500 million and;

  

0.3500% on next $500 million and;

  

0.3300% on next $1.5 billion and;

  

0.3250% on next $2.5 billion and;

  

0.3225% over $5 billion

Dividend and Growth Fund

  

0.7500% on first $500 million and;

  

0.6500% on next $500 million and;

  

0.6000% on next $1.5 billion and;

  

0.5950% on next $2.5 billion and;

  

0.5900% on next $5 billion and;

  

0.5850% over $10 billion

Equity Income Fund

  

0.7500% on first $250 million and;

  

0.7000% on next $250 million and;

  

0.6500% on next $500 million and;

  

0.6000% on next $1.5 billion and;

  

0.5900% on next $2.5 billion and;

  

0.5875% over $5 billion

Growth Opportunities Fund

  

0.8000% on first $250 million and;

  

0.7000% on next $4.75 billion and;

  

0.6975% on next $5 billion and;

  

0.6950% over $10 billion

 

 

  112  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Fund

  

Management Fee Rates

Healthcare Fund

  

0.9000% on first $500 million and;

  

0.8500% on next $500 million and;

  

0.8000% on next $4 billion and;

  

0.7975% on next $5 billion and;

  

0.7950% over $10 billion

MidCap Fund

  

0.8500% on first $500 million and;

  

0.7500% on next $500 million and;

  

0.7000% on next $4 billion and;

  

0.6975% on next $5 billion and;

  

0.6950% over $10 billion

MidCap Value Fund

  

0.7500% on first $500 million and;

  

0.6500% on next $500 million and;

  

0.6000% on next $1.5 billion and;

  

0.5950% on next $2.5 billion and;

  

0.5900% on next $5 billion and;

  

0.5850% over $10 billion

Quality Value Fund

  

0.4500% on first $500 million and;

  

0.3500% on next $500 million and;

  

0.3300% on next $4 billion and;

  

0.3250% on next $5 billion and;

  

0.3225% over $10 billion

Small Cap Growth Fund

  

0.9000% on first $100 million and;

  

0.8000% on next $150 million and;

  

0.7000% on next $250 million and;

  

0.6500% on next $4.5 billion and;

  

0.6300% on next $5 billion and;

  

0.6200% over $10 billion

Small Cap Value Fund

  

0.7000% on first $500 million and;

  

0.6500% on next $500 million and;

  

0.6000% on next $2 billion and;

  

0.5900% on next $2 billion and;

  

0.5800% on next $5 billion and;

  

0.5700% over $10 billion

Small Company Fund

  

0.8500% on first $250 million and;

  

0.8000% on next $250 million and;

  

0.7500% on next $500 million and;

  

0.7000% on next $500 million and;

  

0.6500% on next $3.5 billion and;

  

0.6300% on next $5 billion and;

  

0.6200% over $10 billion

 

  b)

Accounting Services Agreement – HFMC provides the Funds with accounting services pursuant to a fund accounting agreement by and between each Company, on behalf of its respective Funds, and HFMC. HFMC has delegated certain accounting and administrative service functions to State Street Bank and Trust Company (“State Street”). In consideration of services rendered and expenses assumed pursuant to the fund accounting agreement, each Fund pays HFMC a fee. Effective January 1, 2020, the fund accounting agreement with respect to each Fund was modified to reflect a new fee structure. Under this revised fee structure, HFMC is entitled to receive the following fee with respect to each Fund: the sub-accounting fee payable by HFMC to State Street plus the amount of expenses that HFMC allocates for providing the fund accounting services.

From November 1, 2019 through December 31, 2019, the accounting services fees for each Fund were accrued daily and paid monthly at the rates below:

 

Capital Appreciation Fund, Growth Opportunities Fund and Small Company Fund  
Average Daily Net Assets    Annual Fees  

first $3.5 billion and;

     0.022%  

next $3.5 billion and

     0.018%  

Amount over $7 billion

     0.015%  
 
Core Equity Fund, Dividend and Growth Fund, Equity Income Fund, Healthcare Fund, MidCap Fund, MidCap Value Fund, Quality Value Fund,
Small Cap Growth Fund and Small Cap Value Fund
 
Average Daily Net Assets    Annual Fees  

first $3.5 billion and;

     0.018%  

next $3.5 billion and

     0.014%  

Amount over $7 billion

     0.010%  

 

 

  113  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  c)

Operating Expenses – Allocable expenses incurred by each Company are allocated to each series within such Company, and allocated to classes within each such series, in proportion to the average daily net assets of such series and classes, except where allocation of certain expenses is more fairly made directly to a Fund or to specific classes within a Fund. As of October 31, 2020, HFMC contractually agreed to limit the total annual fund operating expenses (exclusive of taxes, interest expenses, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses), through February 28, 2021 (unless the applicable Board of Directors approves its earlier termination) as follows for each of the following Funds:

 

     Expense Limit as a Percentage of Average Daily Net Assets  

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class R6     Class Y     Class F  

Quality Value Fund

     0.96     1.71     0.66     1.18     0.88     0.63     0.46     0.57     0.46

Small Cap Value Fund

     1.30     2.05     1.00     1.50     1.20     0.90     0.80     0.85     0.80

Small Company Fund

     1.40     2.15     1.15     1.55     1.25     0.95     0.90     0.95     0.90

 

  d)

Fees Paid Indirectly – Certain Funds have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. to partially recapture non-discounted trade commissions. Such rebates are used to pay a portion of a Fund’s expenses. For the year ended October 31, 2020, these amounts, if any, are included in the Statements of Operations.

The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:

 

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class R6     Class Y     Class F  

Capital Appreciation Fund

     1.07     1.85     0.79     1.42     1.10     0.81     0.70     0.75     0.70

Core Equity Fund

     0.72     1.47     0.46     1.07     0.73     0.47     0.38     0.45     0.37

Dividend and Growth Fund

     1.00     1.78     0.73     1.35     1.05     0.74     0.65     0.68     0.64

Equity Income Fund

     1.00     1.76     0.74     1.36     1.05     0.77     0.66     0.71     0.66

Growth Opportunities Fund

     1.09     1.85     0.83     1.43     1.13     0.84     0.74     0.78     0.74

Healthcare Fund

     1.27     2.04     0.99     1.61     1.30     1.01     0.90     0.95     0.90

MidCap Fund

     1.11     1.87     0.86     1.46     1.14     0.84     0.75     0.78     0.75

MidCap Value Fund

     1.25     2.03     0.91     1.53     1.23     0.91     N/A       0.87     0.81

Quality Value Fund

     0.91     1.71     0.56     1.16     0.87     0.57     0.46     0.57     0.46

Small Cap Growth Fund

     1.25     1.90     0.85     1.49     1.19     0.89     0.78     0.81     0.77

Small Cap Value Fund

     1.29     2.04     0.92     1.42     1.20     0.90     0.80     0.85     0.80

Small Company Fund

     1.31     2.14     1.00     1.55     1.25     0.95     0.90     0.95     0.89

 

  e)

Sales Charges and Distribution and Service Plan for Class A, T, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. For the year ended October 31, 2020, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

   Front-end
Sales Charges
     Contingent Deferred
Sales Charges
 

Capital Appreciation Fund

   $     1,729,715      $ 27,965  

Core Equity Fund

     3,212,696            116,581  

Dividend and Growth Fund

     2,917,342        33,887  

Equity Income Fund

     1,207,281        18,968  

Growth Opportunities Fund

     2,468,903        26,140  

Healthcare Fund

     689,627        4,898  

MidCap Fund

     2,625,224        53,614  

MidCap Value Fund

     418,533        3,872  

Quality Value Fund

     79,640        1,649  

Small Cap Growth Fund

     44,357        1  

Small Cap Value Fund

     31,353        2,138  

Small Company Fund

     443,000        2,436  

The Board of Directors of each Company has approved the adoption of a separate distribution plan (each a “Plan”) pursuant to Rule 12b-1 under the 1940 Act for each of Class A, T, C, R3 and R4 shares. Under a Plan, Class A, Class T, Class C, Class R3 and Class R4 shares of a Fund, as applicable, bear distribution and/or service fees paid to HFD, some or all of which may be paid to select broker-dealers. Pursuant to the Class A Plan, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets attributable to Class A shares for distribution financing activities and shareholder account servicing activities. The entire amount of the fee may be used for shareholder servicing expenses and/or distribution expenses. Pursuant to the Class T Plan, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets attributable to Class T shares for distribution financing activities and shareholder account servicing activities. The entire amount of the fee may be used for shareholder servicing expenses and/or distribution expenses. As of October 31, 2020, Class T shares have not commenced operations. Pursuant to the Class C Plan, a Fund may pay HFD a fee of up to 1.00% of the average daily net assets attributable to Class C shares for distribution financing activities, and up to 0.25% may be used for shareholder account servicing activities. The Class C Plan also provides that HFD will receive all contingent deferred sales charges attributable to Class C shares. Pursuant to the Class R3 Plan, a Fund may pay HFD a fee of up to 0.50% of the average daily net assets attributable to Class R3 shares for distribution financing activities,

 

 

  114  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

and up to 0.25% may be used for shareholder account servicing activities. Pursuant to the Class R4 Plan, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets attributable to Class R4 shares for distribution financing activities. The entire amount of the fee may be used for shareholder account servicing activities. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as the respective Company’s Board of Directors may determine. Any 12b-1 fees attributable to assets held in an account held directly with the Funds’ transfer agent for which there is not a third-party listed as the broker-dealer of record (or HFD does not otherwise have a payment obligation) are generally reimbursed to the applicable Fund. Such amounts are reflected as “Distribution fee reimbursements” on the Statements of Operations.

 

  f)

Other Related Party Transactions – Certain officers of each Company are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the year ended October 31, 2020, a portion of each Company’s Chief Compliance Officer’s (“CCO”) compensation was paid by all of the investment companies in the Hartford fund complex. The portion allocated to each Fund, as represented in other expenses on the Statements of Operations, is outlined in the table below.

 

Fund

   CCO Compensation
Paid by Fund
 

Capital Appreciation Fund

   $     14,700  

Core Equity Fund

     17,080  

Dividend and Growth Fund

     20,537  

Equity Income Fund

     8,655  

Growth Opportunities Fund

     12,251  

Healthcare Fund

     3,260  

MidCap Fund

     31,299  

MidCap Value Fund

     1,448  

Quality Value Fund

     411  

Small Cap Growth Fund

     2,131  

Small Cap Value Fund

     184  

Small Company Fund

     1,481  

Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. Each Fund pays HASCO a transfer agency fee payable monthly based on the lesser of (i) the costs of providing or overseeing transfer agency services provided to each share class of such Fund plus a target profit margin or (ii) a Specified Amount (as defined in the table below). Such fee is intended to compensate HASCO for: (i) fees payable by HASCO to DST Asset Manager Solutions, Inc. (“DST”) (and any other designated sub-agent) according to the agreed-upon fee schedule under the sub-transfer agency agreement between HASCO and DST (or between HASCO and any other designated sub-agent, as applicable); (ii) sub-transfer agency fees payable by HASCO to financial intermediaries, according to the agreed-upon terms between HASCO and the financial intermediaries, provided that such payments are within certain limits approved by the applicable Company’s Board of Directors; (iii) certain expenses that HASCO’s parent company, Hartford Funds Management Group, Inc., allocates to HASCO that relate to HASCO’s transfer agency services provided to the Fund; and (iv) a target profit margin.

 

Share Class

   Specified Amount
(as a percentage
average daily
net assets)
 

Class A

     0.25

Class C

     0.25

Class I

     0.20

Class Y

     0.11

Class R3

     0.22

Class R4

     0.17

Class R5

     0.12

Class R6

     0.004

Class F

     0.004

Effective February 28, 2020, HASCO has contractually agreed to waive and/or reimburse a portion of the transfer agency fees for the share classes of the Funds listed below to the extent necessary to limit the transfer agency fees as follows through February 28, 2021, unless the applicable Board of Directors approve its earlier termination:

 

Fund

   Class I     Class Y  

Capital Appreciation Fund

     N/A       0.06

Core Equity Fund

     N/A       0.08

Dividend and Growth Fund

     N/A       0.04

Equity Income Fund

     N/A       0.06

Growth Opportunities Fund

     N/A       0.04

Healthcare Fund

     N/A       0.05

MidCap Fund

     0.12     0.04

MidCap Value Fund

     N/A       0.07

Small Cap Growth Fund

     N/A       0.04

 

 

  115  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

From November 1, 2019 through February 27, 2020, HASCO contractually agreed to waive and/or reimburse a portion of the transfer agency fees for the share classes of the Funds listed below to the extent necessary to limit the transfer agency fees as follows:

 

Fund

   Class I     Class Y  

Capital Appreciation Fund

     N/A       0.04

Core Equity Fund

     N/A       0.06

Dividend and Growth Fund

     N/A       0.05

Equity Income Fund

     N/A       0.05

Growth Opportunities Fund

     N/A       0.05

Healthcare Fund

     N/A       0.06

MidCap Fund

     0.12     0.04

MidCap Value Fund

     N/A       0.05

Small Cap Growth Fund

     N/A       0.04

Pursuant to a sub-transfer agency agreement between HASCO and DST, HASCO has delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to DST. Each Fund does not pay any fee directly to DST; rather, HASCO makes all such payments to DST. The accrued amount shown in the Statements of Operations reflects the amounts charged by HASCO. These fees are accrued daily and paid monthly.

For the year ended October 31, 2020, the effective rate of compensation paid to HASCO for transfer agency services as a percentage of each Class’ average daily net assets is as follows:

 

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class R6     Class Y     Class F  

Capital Appreciation Fund

     0.12     0.15     0.09     0.22     0.15     0.11     0.00 %*      0.05     0.00 %* 

Core Equity Fund

     0.10     0.09     0.09     0.20     0.16     0.10     0.00 %*      0.08     0.00 %* 

Dividend and Growth Fund

     0.11     0.14     0.09     0.21     0.16     0.10     0.00 %*      0.04     0.00 %* 

Equity Income Fund

     0.10     0.10     0.09     0.20     0.15     0.11     0.00 %*      0.06     0.00 %* 

Growth Opportunities Fund

     0.11     0.11     0.09     0.20     0.14     0.10     0.00 %*      0.04     0.00 %* 

Healthcare Fund

     0.13     0.14     0.09     0.21     0.15     0.11     0.00 %*      0.05     0.00 %* 

MidCap Fund

     0.11     0.12     0.12     0.22     0.17     0.10     0.00 %*      0.04     0.00 %* 

MidCap Value Fund

     0.19     0.21     0.10     0.22     0.17     0.10     N/A       0.06     0.00 %* 

Quality Value Fund

     0.20     0.25     0.10     0.22     0.16     0.12     0.00 %*      0.11     0.00 %* 

Small Cap Growth Fund

     0.24     0.13     0.08     0.22     0.17     0.12     0.00 %*      0.04     0.00 %* 

Small Cap Value Fund

     0.25     0.24     0.12     0.22     0.17     0.12     0.00 %*      0.11     0.00 %* 

Small Company Fund

     0.17     0.25     0.11     0.21     0.16     0.12     0.00 %*      0.07     0.00 %* 

 

  *

Amount rounds to 0.00%

 

8.

Securities Lending:

Each Company has entered into a securities lending agency agreement (“lending agreement”) with Citibank, N.A. (“Citibank”). A Fund may lend portfolio securities to certain borrowers in U.S. and non-U.S. markets in an amount not to exceed one-third (33 13%) of the value of its total assets. If a Fund security is on loan, under the lending agreement, the borrower is required to deposit cash or liquid securities as collateral at least equal to 100% of the market value of the loaned securities; and cash collateral is invested for the benefit of the Fund by the Fund’s lending agent pursuant to collateral investment guidelines. The collateral is marked to market daily, in an amount at least equal to the current market value of the securities loaned.

A Fund is subject to certain risks while its securities are on loan, including the following: (i) the risk that the borrower defaults on the loan and the collateral is inadequate to cover the Fund’s loss; (ii) the risk that the earnings on the collateral invested are not sufficient to pay fees incurred in connection with the loan; (iii) the Fund could lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral; (iv) the risk that the borrower may use the loaned securities to cover a short sale, which may in turn place downward pressure on the market prices of the loaned securities; (v) the risk that return of loaned securities could be delayed and interfere with portfolio management decisions; and (vi) the risk that any efforts to restrict or recall the securities for purposes of voting may not be effective. These events could also trigger adverse tax consequences for the Fund.

The Funds retain loan fees and the interest on cash collateral investments but are required to pay the borrower a rebate for the use of cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers.

The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Investment Income from securities lending. The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Investment Income from dividends or interest, respectively, on the Statements of Operations.

 

 

  116  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

The following table presents the market value of the Funds’ securities on loan, net of amounts available for offset under the master netting arrangements and any related collateral received by the Funds as of October 31, 2020.

 

Fund

   Investment Securities on Loan, at market value,
Presented on the Statements of Assets and Liabilities(1)
     Collateral Posted by Borrower(2)     Net Amount(3)  

Capital Appreciation Fund

   $ 12,892,695      $ (12,892,695   $     —  

Core Equity Fund

                   

Dividend and Growth Fund

                   

Equity Income Fund

                   

Growth Opportunities Fund

     36,965,203        (36,965,203      

Healthcare Fund

     13,609,564        (13,609,564      

MidCap Fund

         109,657,728            (109,657,728      

MidCap Value Fund

                   

Quality Value Fund

                   

Small Cap Growth Fund

     10,469,863        (10,469,863      

Small Cap Value Fund

     1,790,215        (1,790,215      

Small Company Fund

     22,999,926        (22,999,926      

 

  (1) 

It is each Fund’s policy to obtain additional collateral from, or return excess collateral to, the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than that required under the lending contract.

  (2) 

Collateral received in excess of the market value of securities on loan is not presented in this table.

  (3) 

Net amount represents the net amount receivable due from the counterparty in the event of default.

The total cash and non-cash collateral received by each Fund in connection with securities lending transactions is presented below:

 

Fund

   Cash
Collateral
     Non-Cash
Collateral
 

Capital Appreciation Fund

   $     14,005,385      $  

Core Equity Fund

             

Dividend and Growth Fund

             

Equity Income Fund

             

Growth Opportunities Fund

     28,236,824            13,183,144  

Healthcare Fund

     14,201,882         

MidCap Fund

     89,240,840        30,346,596  

MidCap Value Fund

             

Quality Value Fund

             

Small Cap Growth Fund

     10,694,775         

Small Cap Value Fund

     1,842,216         

Small Company Fund

     23,792,335         

 

9.

Secured Borrowings:

The following tables reflect a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of October 31, 2020.

Certain Transfers Accounted For As Secured Borrowings

Remaining Contractual Maturity of the Agreements

 

     Overnight and
Continuous
     <30 days      Between
30 & 90 days
     >90 days      Total  
Capital Appreciation Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $     14,005,385      $     —      $     —      $     —      $     14,005,385  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 14,005,385      $      $      $      $ 14,005,385  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 14,005,385  
              

 

 

 
Growth Opportunities Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 28,236,824      $      $      $      $ 28,236,824  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 28,236,824      $      $      $      $ 28,236,824  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 28,236,824  
              

 

 

 

 

 

  117  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

     Overnight and
Continuous
     <30 days      Between
30 & 90 days
     >90 days      Total  
Healthcare Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 14,201,882      $      $      $      $ 14,201,882  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 14,201,882      $      $      $      $ 14,201,882  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 14,201,882  
              

 

 

 
MidCap Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 89,240,840      $      $      $      $ 89,240,840  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 89,240,840      $      $      $      $ 89,240,840  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 89,240,840  
              

 

 

 
Small Cap Growth Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 10,694,775      $      $      $      $ 10,694,775  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 10,694,775      $      $      $      $ 10,694,775  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 10,694,775  
              

 

 

 
Small Cap Value Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 463,912      $      $      $      $ 463,912  

Exchange-Traded Funds

     1,378,304                             1,378,304  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 1,842,216      $      $      $      $ 1,842,216  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 1,842,216  
              

 

 

 
Small Company Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 15,861,645      $      $      $      $ 15,861,645  

Exchange-Traded Funds

     7,930,690                             7,930,690  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $     23,792,335      $     —      $     —      $     —      $     23,792,335  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

               $ 23,792,335  
              

 

 

 

 

  (1) 

Amount represents the payable for cash collateral received on securities on loan. This will generally be in the “Overnight and Continuous” column as the securities are typically callable on demand.

 

10.

Affiliate Holdings:

As of October 31, 2020, affiliates of The Hartford had ownership of shares in each Fund as follows:

Percentage of a Class:

 

Fund

   Class A      Class C      Class I      Class R3      Class R4      Class R5     Class R6     Class Y      Class F  

Healthcare Fund

                                              0 %*              

Quality Value Fund

                                              2             

Small Cap Value Fund

                                        100     4             

Percentage of Fund by Class:

 

Fund

   Class A      Class C      Class I      Class R3      Class R4      Class R5     Class R6     Class Y      Class F  

Healthcare Fund

                                              0 %*              

Quality Value Fund

                                              0 %*              

Small Cap Value Fund

                                        0 %*      0 %*              

 

  *

Percentage rounds to zero.

 

 

  118  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

As of October 31, 2020, affiliated funds of funds and certain 529 plans for which HFMC serves as the program manager (the “529 plans”) in the aggregate owned a portion of the Funds identified below. Therefore, these Funds may experience relatively large purchases or redemptions of their shares from these affiliated funds of funds and the 529 plans. Affiliated funds of funds and the 529 plans owned shares in the Funds listed below as follows:

 

Funds

   Percentage
of Fund*
 

Capital Appreciation Fund

     8

Core Equity Fund

     4

Dividend and Growth Fund

     9

Equity Income Fund

     7

Growth Opportunities Fund

     2

MidCap Fund

     1

MidCap Value Fund

     2

Small Cap Growth Fund

     5

Small Cap Value Fund

     45

Small Company Fund

     8

 

  *

As of October 31, 2020, affiliated funds of funds and the 529 plans invest in Class F shares.

 

11.

Affiliated Security Transactions:

If a Fund owns 5% or more of the outstanding voting securities, either directly or indirectly, of a particular issuer, the 1940 Act deems such an issuer to be an “affiliate” of the Fund. As of and during the year ended October 31, 2020, the MidCap Fund and Small Company Fund owned 5% or more of the outstanding voting securities of the issuers identified in the tables below.

A summary of affiliate transactions for the MidCap Fund and Small Company Fund for the year ended October 31, 2020 is as follows:

 

Affiliated Investments

  Beginning
Value as of
November 1, 2019
    Purchases at
Cost
    Proceeds from
Sales
    Net
Realized Gain/
(Loss)
on Sales
    Change in
Unrealized
Appreciation/
(Depreciation)
    Ending
Value as of
October 31, 2020
    Shares as of
October 31, 2020
    Dividend
Income
 
MidCap Fund                                                

Aerie Pharmaceuticals, Inc.

  $ 54,922,269     $ 13,807,304     $ 49,251,629     $ (101,388,457   $ 81,910,513     $           $  

Coherent, Inc.

    132,404,921       102,543,047       18,666,624       (5,201,174     (23,510,452     187,569,718       1,498,879        

CommScope Holding Co., Inc.

    74,978,478       103,485,683       14,863,863       (21,269,150     (4,651,218     137,679,930       15,469,655        

II-VI, Inc.

    152,521,128       87,776,135       45,346,985       (4,258,322     91,226,500       281,918,456       6,200,098        

KAR Auction Services, Inc.

    127,517,704       116,733,373       18,759,288       (6,419,735     (52,689,329     166,382,725       11,427,385       2,418,446  

NuVasive, Inc.

    192,073,295       22,124,512       22,039,923       (1,625,516     (68,002,825     122,529,543       2,757,811        

PTC Therapeutics, Inc.

          192,524,548       16,357,790       (2,002,854     11,479,475       185,643,379       3,557,068        

Teradata Corp.

    172,696,758       82,606,839       17,713,987       (11,095,886     (68,103,157     158,390,567       8,622,241        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $     907,114,553     $     721,601,441     $     203,000,089     $     (153,261,094   $     (32,340,493   $     1,240,114,318       49,533,137     $     2,418,446  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Small Company Fund                                                

Allstar Co.

  $ 721,418     $     $     $     $ 1,913,326     $ 2,634,744       3,136,600     $ 691,539  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 721,418     $     $     $     $ 1,913,326     $ 2,634,744       3,136,600     $ 691,539  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

12.

Investment Transactions:

For the year ended October 31, 2020, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

Fund

   Cost of Purchases
Excluding U.S.
Government
Obligations
     Sales Proceeds
Excluding U.S.
Government
Obligations
     Cost of Purchases
For U.S.
Government
Obligations
     Sales Proceeds
For U.S.
Government
Obligations
     Total Cost of
Purchases
     Total Sales
Proceeds
 

Capital Appreciation Fund

   $     5,386,510,911      $     6,408,684,947      $     —      $     —      $     5,386,510,911      $     6,408,684,947  

Core Equity Fund

     3,761,890,878        1,532,175,556                      3,761,890,878        1,532,175,556  

Dividend and Growth Fund

     2,933,457,424        2,423,341,543                      2,933,457,424        2,423,341,543  

Equity Income Fund

     1,153,523,941        1,255,592,425                      1,153,523,941        1,255,592,425  

Growth Opportunities Fund

     6,088,069,616        6,640,053,475                      6,088,069,616        6,640,053,475  

Healthcare Fund

     655,876,413        714,957,278                      655,876,413        714,957,278  

MidCap Fund

     6,082,643,735        7,941,564,033                      6,082,643,735        7,941,564,033  

MidCap Value Fund

     397,362,327        385,146,886                      397,362,327        385,146,886  

Quality Value Fund

     47,078,499        64,038,117                      47,078,499        64,038,117  

Small Cap Growth Fund

     524,357,837        858,968,255                      524,357,837        858,968,255  

Small Cap Value Fund

     52,268,952        58,824,588                      52,268,952        58,824,588  

Small Company Fund

     645,374,079        705,118,203                      645,374,079        705,118,203  

 

 

  119  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

13.

Capital Share Transactions:

The following information is for the year ended October 31, 2020, and the year ended October 31, 2019:

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Capital Appreciation Fund                                    

Class A

                   

Shares Sold

       4,936,646        $      174,349,729          6,684,086        $      232,423,382  

Shares Issued for Reinvested Dividends

       6,205,381          227,070,199          22,329,307          687,462,739  

Shares Redeemed

       (20,320,300        (726,270,861        (24,060,103        (834,177,503
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (9,178,273        (324,850,933        4,953,290          85,708,618  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       646,385        $ 16,546,122          1,093,708        $ 26,748,681  

Shares Issued for Reinvested Dividends

       576,523          15,076,069          3,194,762          71,977,983  

Shares Redeemed

       (5,045,288        (130,502,671        (8,552,882        (220,040,659
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (3,822,380        (98,880,480        (4,264,412        (121,313,995
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       1,956,471        $ 70,731,684          2,525,910        $ 87,546,675  

Shares Issued for Reinvested Dividends

       771,728          28,460,949          2,918,816          90,422,933  

Shares Redeemed

       (5,242,907        (186,790,433        (7,113,244        (243,912,297
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,514,708        (87,597,800        (1,668,518        (65,942,689
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       116,903        $ 4,540,361          112,855        $ 4,432,352  

Shares Issued for Reinvested Dividends

       46,694          1,912,115          236,998          8,150,367  

Shares Redeemed

       (408,486        (16,587,839        (607,653        (23,140,877
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (244,889        (10,135,363        (257,800        (10,558,158
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       102,404        $ 4,357,340          84,709        $ 3,432,233  

Shares Issued for Reinvested Dividends

       34,702          1,480,745          183,710          6,552,532  

Shares Redeemed

       (305,424        (13,165,782        (573,752        (23,412,700
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (168,318        (7,327,697        (305,333        (13,427,935
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       73,396        $ 3,082,937          181,208        $ 7,914,397  

Shares Issued for Reinvested Dividends

       37,234          1,629,967          122,722          4,476,273  

Shares Redeemed

       (247,588        (10,879,629        (205,507        (8,681,890
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (136,958        (6,166,725        98,423          3,708,780  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       154,746        $ 6,189,604          267,939        $ 11,761,170  

Shares Issued for Reinvested Dividends

       80,778          3,562,525          257,757          9,465,639  

Shares Redeemed

       (1,780,995        (77,069,137        (319,035        (13,587,366
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (1,545,471        (67,317,008        206,661          7,639,443  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       406,425        $ 17,905,774          941,007        $ 38,590,999  

Shares Issued for Reinvested Dividends

       187,899          8,281,321          618,487          22,707,855  

Shares Redeemed

       (2,600,260        (116,860,535        (1,311,560        (54,361,429
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,005,936        (90,673,440        247,934          6,937,425  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       2,953,391        $ 96,156,703          2,208,483        $ 75,649,434  

Shares Issued for Reinvested Dividends

       1,088,641          40,167,416          4,119,442          127,618,948  

Shares Redeemed

       (6,078,654        (219,729,113        (8,650,541        (303,183,820
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,036,622        (83,404,994        (2,322,616        (99,915,438
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (21,653,555      $ (776,354,440        (3,312,371      $ (207,163,949
    

 

 

      

 

 

      

 

 

      

 

 

 
Core Equity Fund                                    

Class A

                   

Shares Sold

       12,000,329        $      399,459,192          8,354,312        $ 252,717,104  

Shares Issued for Reinvested Dividends

       652,243          22,377,578          1,170,588          31,856,185  

Shares Redeemed

       (7,386,228        (240,896,634        (5,215,218        (160,692,456
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       5,266,344          180,940,136          4,309,682          123,880,833  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  120  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Core Equity Fund – (continued)                                    

Class C

                   

Shares Sold

       4,551,296        $ 137,663,560          3,448,909        $ 95,348,410  

Shares Issued for Reinvested Dividends

       247,606          7,653,796          502,591          12,459,225  

Shares Redeemed

       (3,263,520        (99,295,785        (2,521,277        (70,389,801
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       1,535,382          46,021,571          1,430,223          37,417,834  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       55,251,441        $ 1,824,328,535          25,472,720        $      784,168,575  

Shares Issued for Reinvested Dividends

       1,340,855          46,209,109          1,993,782          54,347,120  

Shares Redeemed

       (27,336,937        (896,498,720        (12,866,239        (391,201,983
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       29,255,359          974,038,924          14,600,263          447,313,712  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       599,499        $ 20,904,257          211,237        $ 6,632,389  

Shares Issued for Reinvested Dividends

       21,100          731,315          48,300          1,333,045  

Shares Redeemed

       (352,314        (11,904,251        (389,729        (12,245,081
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       268,285          9,731,321          (130,192        (4,279,647
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       1,581,637        $ 56,055,128          1,180,826        $ 37,776,886  

Shares Issued for Reinvested Dividends

       100,713          3,564,282          208,644          5,850,946  

Shares Redeemed

       (1,491,613        (51,795,823        (1,698,103        (53,981,141
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       190,737          7,823,587          (308,633        (10,353,309
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       1,134,925        $ 38,804,050          1,436,917        $ 45,315,419  

Shares Issued for Reinvested Dividends

       159,932          5,552,692          323,315          8,879,357  

Shares Redeemed

       (2,986,041        (101,176,396        (1,502,323        (47,538,353
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (1,691,184        (56,819,654        257,909          6,656,423  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       16,027,389        $ 553,894,759          4,632,883        $ 148,100,189  

Shares Issued for Reinvested Dividends

       209,189          7,302,091          253,490          6,992,185  

Shares Redeemed

       (3,524,239        (123,476,087        (2,017,998        (61,880,496
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       12,712,339          437,720,763          2,868,375          93,211,878  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       11,888,408        $ 397,928,760          5,881,409        $ 182,841,788  

Shares Issued for Reinvested Dividends

       285,662          9,972,693          370,855          10,229,172  

Shares Redeemed

       (4,866,025        (165,866,944        (2,374,093        (71,937,946
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       7,308,045          242,034,509          3,878,171          121,133,014  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       29,798,828        $     1,002,322,628          33,881,513        $     1,030,449,832  

Shares Issued for Reinvested Dividends

       1,403,840          48,429,362          1,240,370          33,816,032  

Shares Redeemed

       (18,375,875        (609,580,679        (6,710,781        (209,251,668
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       12,826,793          441,171,311          28,411,102          855,014,196  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       67,672,100        $ 2,282,662,468          55,316,900        $ 1,669,994,934  
    

 

 

      

 

 

      

 

 

      

 

 

 
Dividend and Growth Fund                                    

Class A

                   

Shares Sold

       12,878,095        $ 307,347,699          10,848,253        $ 260,738,740  

Shares Issued for Reinvested Dividends

       6,355,646          158,639,507          16,688,013          372,818,519  

Shares Redeemed

       (23,863,951        (575,703,006        (20,698,694        (499,914,217
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (4,630,210        (109,715,800        6,837,572          133,643,042  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       1,341,581        $ 31,800,923          1,414,298        $ 32,132,341  

Shares Issued for Reinvested Dividends

       277,274          6,745,974          1,026,732          21,933,732  

Shares Redeemed

       (3,403,410        (78,986,558        (3,932,419        (91,472,582
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (1,784,555        (40,439,661        (1,491,389        (37,406,509
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       44,546,101        $ 1,034,422,781          13,889,977        $ 332,507,196  

Shares Issued for Reinvested Dividends

       2,167,389          53,242,132          3,988,160          88,918,028  

Shares Redeemed

       (18,862,040        (444,869,560        (9,237,704        (220,366,922
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       27,851,450          642,795,353          8,640,433          201,058,302  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  121  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Dividend and Growth Fund – (continued)                                    

Class R3

                   

Shares Sold

       319,957        $ 7,867,244          328,462        $ 8,057,448  

Shares Issued for Reinvested Dividends

       98,410          2,513,108          314,415          7,102,460  

Shares Redeemed

       (713,282        (17,768,056        (931,518        (22,971,895
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (294,915        (7,387,704        (288,641        (7,811,987
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       646,555        $ 15,896,512          1,040,819        $ 25,469,227  

Shares Issued for Reinvested Dividends

       137,823          3,531,150          460,939          10,513,161  

Shares Redeemed

       (1,673,250        (42,325,963        (2,335,283        (58,396,232
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (888,872        (22,898,301        (833,525        (22,413,844
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       2,555,808        $ 63,782,124          3,271,224        $ 81,329,519  

Shares Issued for Reinvested Dividends

       142,472          3,650,977          245,192          5,650,369  

Shares Redeemed

       (2,841,394        (70,963,602        (1,841,585        (46,178,130
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (143,114        (3,530,501        1,674,831          40,801,758  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       4,880,872        $ 113,525,683          2,225,050        $ 55,216,561  

Shares Issued for Reinvested Dividends

       237,877          5,996,137          391,648          9,024,849  

Shares Redeemed

       (1,733,037        (42,798,399        (993,067        (24,710,883
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       3,385,712          76,723,421          1,623,631          39,530,527  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       9,848,904        $ 247,712,473          5,457,856        $ 135,046,773  

Shares Issued for Reinvested Dividends

       1,131,629          28,911,339          2,777,641          63,824,725  

Shares Redeemed

       (7,635,109        (181,522,018        (5,583,324        (138,468,750
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       3,345,424          95,101,794          2,652,173          60,402,748  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       27,526,744        $ 644,478,859          16,093,030        $ 386,215,855  

Shares Issued for Reinvested Dividends

       5,376,050          132,513,123          12,928,718          287,825,698  

Shares Redeemed

       (29,713,611        (707,975,552        (20,334,098        (490,952,552
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       3,189,183          69,016,430          8,687,650          183,089,001  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       30,030,103        $      699,665,031          27,502,735        $      590,893,038  
    

 

 

      

 

 

      

 

 

      

 

 

 
Equity Income Fund                                    

Class A

                   

Shares Sold

       7,828,556        $ 136,913,278          6,480,746        $ 121,285,443  

Shares Issued for Reinvested Dividends

       6,504,295          121,363,438          7,839,935          137,242,745  

Shares Redeemed

       (14,827,638        (260,683,783        (13,808,960        (258,119,451
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (494,787        (2,407,067        511,721          408,737  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       919,038        $ 16,271,303          1,403,741        $ 25,634,319  

Shares Issued for Reinvested Dividends

       1,018,170          19,066,339          1,490,092          25,756,245  

Shares Redeemed

       (5,650,866        (99,286,782        (5,337,720        (99,926,506
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (3,713,658        (63,949,140        (2,443,887        (48,535,942
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       24,304,724        $ 412,538,522          12,788,727        $ 238,778,998  

Shares Issued for Reinvested Dividends

       3,968,707          73,365,491          5,610,079          97,562,348  

Shares Redeemed

       (20,447,146        (354,091,319        (30,170,664        (559,232,499
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       7,826,285          131,812,694          (11,771,858        (222,891,153
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       271,229        $ 4,760,437          201,583        $ 3,801,906  

Shares Issued for Reinvested Dividends

       167,445          3,145,148          229,662          4,011,859  

Shares Redeemed

       (802,663        (14,461,635        (671,796        (12,589,934
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (363,989        (6,556,050        (240,551        (4,776,169
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       608,869        $ 10,607,139          517,003        $ 9,693,018  

Shares Issued for Reinvested Dividends

       165,375          3,099,772          271,292          4,754,392  

Shares Redeemed

       (1,115,129        (20,177,582        (1,721,384        (32,616,945
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (340,885        (6,470,671        (933,089        (18,169,535
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  122  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Equity Income Fund – (continued)                                    

Class R5

                   

Shares Sold

       802,326        $ 14,635,220          1,131,152        $ 21,619,237  

Shares Issued for Reinvested Dividends

       278,873          5,250,372          360,589          6,368,591  

Shares Redeemed

       (1,956,200        (36,004,334        (1,508,603        (28,818,781
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (875,001        (16,118,742        (16,862        (830,953
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       1,617,179        $ 29,511,931          1,148,910        $ 22,234,541  

Shares Issued for Reinvested Dividends

       215,494          4,044,046          193,154          3,429,995  

Shares Redeemed

       (1,293,116        (23,556,776        (544,409        (10,408,102
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       539,557          9,999,201          797,655          15,256,434  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       2,226,330        $ 40,140,301          2,508,088        $ 47,678,296  

Shares Issued for Reinvested Dividends

       392,940          7,398,398          658,477          11,609,476  

Shares Redeemed

       (3,219,621        (56,256,214        (5,123,450        (95,079,692
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (600,351        (8,717,515        (1,956,885        (35,791,920
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       11,762,717        $      205,404,640          10,316,801        $ 193,403,821  

Shares Issued for Reinvested Dividends

       4,181,434          77,191,341          4,372,836          76,382,908  

Shares Redeemed

       (11,310,899        (199,892,407        (8,455,981        (159,836,569
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       4,633,252          82,703,574          6,233,656               109,950,160  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       6,610,423        $ 120,296,284          (9,820,100      $ (205,380,341
    

 

 

      

 

 

      

 

 

      

 

 

 
Growth Opportunities Fund                                    

Class A

                   

Shares Sold

       5,812,021        $       259,824,535          5,563,708        $       213,086,115  

Shares Issued for Reinvested Dividends

       3,358,472          128,192,872          13,501,045          442,159,235  

Shares Redeemed

       (8,349,301        (364,377,295        (9,974,318        (382,016,437
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       821,192          23,640,112          9,090,435          273,228,913  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       2,155,278        $ 46,083,147          3,170,815        $ 62,375,652  

Shares Issued for Reinvested Dividends

       1,561,881          29,066,389          5,635,659          96,538,837  

Shares Redeemed

       (5,277,715        (112,869,127        (6,028,908        (121,531,114
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (1,560,556        (37,719,591        2,777,566          37,383,375  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       8,087,671        $ 380,046,455          11,781,273        $ 478,068,139  

Shares Issued for Reinvested Dividends

       1,712,981          69,821,119          8,365,419          290,614,670  

Shares Redeemed

       (16,144,778        (718,420,627        (19,254,836        (785,597,820
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (6,344,126        (268,553,053        891,856          (16,915,011
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       183,888        $ 8,139,758          218,666        $ 8,369,169  

Shares Issued for Reinvested Dividends

       70,480          2,685,999          309,474          10,153,854  

Shares Redeemed

       (510,198        (22,155,084        (429,915        (16,932,192
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (255,830        (11,329,327        98,225          1,590,831  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       248,241        $ 12,098,571          250,422        $ 10,352,870  

Shares Issued for Reinvested Dividends

       84,663          3,477,115          446,887          15,681,250  

Shares Redeemed

       (714,482        (33,779,284        (746,989        (31,374,403
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (381,578        (18,203,598        (49,680        (5,340,283
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       145,107        $ 7,246,281          186,925        $ 8,171,987  

Shares Issued for Reinvested Dividends

       30,971          1,353,114          109,194          4,050,013  

Shares Redeemed

       (373,606        (18,780,243        (119,452        (5,325,984
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (197,528        (10,180,848        176,667          6,896,016  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       306,651        $ 16,060,946          357,710        $ 15,726,095  

Shares Issued for Reinvested Dividends

       28,918          1,288,564          64,798          2,446,116  

Shares Redeemed

       (200,896        (10,416,531        (159,208        (7,327,990
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       134,673          6,932,979          263,300          10,844,221  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  123  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Growth Opportunities Fund – (continued)                                    

Class Y

                   

Shares Sold

       4,986,167        $ 311,128,698          1,911,323        $ 84,186,840  

Shares Issued for Reinvested Dividends

       199,027          8,864,641          650,084          24,540,654  

Shares Redeemed

       (2,009,071        (111,330,500        (1,452,543        (67,133,531
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       3,176,123          208,662,839          1,108,864          41,593,963  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       3,945,706        $ 196,024,123          3,874,932        $ 160,316,539  

Shares Issued for Reinvested Dividends

       769,915          31,497,242          2,537,024          88,339,164  

Shares Redeemed

       (3,691,002        (177,948,400        (2,258,227        (94,166,031
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       1,024,619          49,572,965          4,153,729          154,489,672  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (3,583,011      $ (57,177,522        18,510,962        $ 503,771,697  
    

 

 

      

 

 

      

 

 

      

 

 

 
Healthcare Fund                                    

Class A

                   

Shares Sold

       1,358,922        $       51,528,734          1,270,592        $       42,474,857  

Shares Issued for Reinvested Dividends

       1,142,449          42,179,219          1,531,546          47,003,147  

Shares Redeemed

       (2,954,883        (111,468,464        (3,947,053        (131,520,198
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (453,512        (17,760,511        (1,144,915        (42,042,194
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       416,479        $ 12,224,079          386,423        $ 10,098,608  

Shares Issued for Reinvested Dividends

       382,047          10,983,839          549,060          13,440,993  

Shares Redeemed

       (1,283,408        (37,962,383        (1,751,911        (46,660,248
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (484,882        (14,754,465        (816,428        (23,120,647
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       2,595,432        $ 104,468,275          1,860,549        $ 65,494,008  

Shares Issued for Reinvested Dividends

       416,322          16,319,822          716,965          23,208,155  

Shares Redeemed

       (2,244,715        (89,839,287        (5,201,462        (180,879,649
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       767,039          30,948,810          (2,623,948        (92,177,486
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       197,480        $ 7,654,724          140,316        $ 4,727,398  

Shares Issued for Reinvested Dividends

       55,830          2,117,618          82,110          2,592,207  

Shares Redeemed

       (439,877        (17,102,681        (381,548        (13,280,244
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (186,567        (7,330,339        (159,122        (5,960,639
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       200,061        $ 8,245,646          153,972        $ 5,595,659  

Shares Issued for Reinvested Dividends

       36,845          1,484,498          61,171          2,038,224  

Shares Redeemed

       (365,083        (15,109,587        (397,220        (14,387,290
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (128,177        (5,379,443        (182,077        (6,753,407
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       209,035        $ 9,163,668          98,097        $ 3,776,425  

Shares Issued for Reinvested Dividends

       8,515          362,223          12,444          435,292  

Shares Redeemed

       (137,584        (5,877,478        (158,841        (6,002,309
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       79,966          3,648,413          (48,300        (1,790,592
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6(1)

                   

Shares Sold

       54,266        $ 2,377,216          33,146        $ 1,302,429  

Shares Issued for Reinvested Dividends

       3,211          138,636                    

Shares Redeemed

       (9,001        (390,531        (660        (26,300
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       48,476          2,125,321          32,486          1,276,129  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       542,348        $ 23,900,470          669,883        $ 26,123,541  

Shares Issued for Reinvested Dividends

       96,305          4,156,525          94,877          3,362,455  

Shares Redeemed

       (367,262        (16,122,522        (354,102        (13,626,705
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       271,391          11,934,473          410,658          15,859,291  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       135,930        $ 5,893,269          72,466        $ 2,542,615  

Shares Issued for Reinvested Dividends

       45,179          1,776,419          158,658          5,145,276  

Shares Redeemed

       (154,961        (6,147,780        (1,561,880        (51,838,121
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       26,148          1,521,908          (1,330,756        (44,150,230
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (60,118      $ 4,954,167          (5,862,402      $ (198,859,775
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  124  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
MidCap Fund                                    

Class A

                   

Shares Sold

       7,479,560        $       213,627,977          10,562,439        $       302,872,439  

Shares Issued for Reinvested Dividends

       4,994,716          148,592,803          11,616,898          286,472,704  

Shares Redeemed

       (16,503,575        (468,979,095        (15,519,945        (445,949,253
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (4,029,299        (106,758,315        6,659,392          143,395,890  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       1,573,527        $ 30,282,962          3,619,415        $ 71,020,807  

Shares Issued for Reinvested Dividends

       1,866,822          37,149,763          5,087,766          86,695,527  

Shares Redeemed

       (8,672,532        (165,685,884        (11,310,026        (222,847,023
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (5,232,183        (98,253,159        (2,602,845        (65,130,689
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       46,979,290        $ 1,323,608,186          42,632,618        $ 1,267,074,961  

Shares Issued for Reinvested Dividends

       6,833,413          211,084,130          15,195,028          387,321,276  

Shares Redeemed

       (65,064,509        (1,964,863,323        (43,805,361        (1,290,404,699
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (11,251,806        (430,171,007        14,022,285          363,991,538  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       732,243        $ 22,709,563          556,017        $ 17,863,858  

Shares Issued for Reinvested Dividends

       135,870          4,553,016          380,030          10,526,822  

Shares Redeemed

       (1,028,675        (33,458,482        (1,180,346        (38,151,880
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (160,562        (6,195,903        (244,299        (9,761,200
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       1,188,661        $ 39,805,895          2,008,473        $ 67,464,654  

Shares Issued for Reinvested Dividends

       324,499          11,409,397          881,164          25,483,275  

Shares Redeemed

       (3,333,796        (113,157,709        (3,755,272        (128,083,303
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (1,820,636        (61,942,417        (865,635        (35,135,374
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       2,214,020        $ 77,371,989          5,884,056        $ 201,889,123  

Shares Issued for Reinvested Dividends

       534,352          19,461,090          1,361,847          40,610,288  

Shares Redeemed

       (6,388,662        (229,431,554        (6,880,878        (238,241,924
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (3,640,290        (132,598,475        365,025          4,257,487  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       13,129,081        $      470,477,844          23,570,871        $ 824,805,540  

Shares Issued for Reinvested Dividends

       1,978,533          72,988,070          3,466,868          104,560,740  

Shares Redeemed

       (15,444,055        (551,163,077        (8,765,259        (311,279,864
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (336,441        (7,697,163        18,272,480          618,086,416  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       8,081,483        $ 279,248,651          13,498,176        $ 461,820,073  

Shares Issued for Reinvested Dividends

       1,713,171          63,096,079          4,622,179          139,266,264  

Shares Redeemed

       (21,978,523        (783,693,402        (29,761,816        (1,038,153,416
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (12,183,869        (441,348,672        (11,641,461        (437,067,079
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       20,067,998        $ 592,511,897          23,838,251        $ 717,246,012  

Shares Issued for Reinvested Dividends

       3,417,284          105,901,640          6,900,254          176,232,472  

Shares Redeemed

       (19,463,971        (580,117,317        (12,295,039        (370,932,155
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       4,021,311          118,296,220          18,443,466          522,546,329  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (34,633,775      $ (1,166,668,891        42,408,408        $     1,105,183,318  
    

 

 

      

 

 

      

 

 

      

 

 

 
MidCap Value Fund                                    

Class A

                   

Shares Sold

       2,480,138        $       30,751,925          3,015,194        $       39,850,799  

Shares Issued for Reinvested Dividends

       633,942          9,248,149          2,634,934          31,694,686  

Shares Redeemed

       (4,519,018        (55,158,666        (3,749,358        (50,258,979
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (1,404,938        (15,158,592        1,900,770          21,286,506  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       121,039        $ 1,113,875          219,028        $ 2,302,437  

Shares Issued for Reinvested Dividends

       40,108          460,945          240,187          2,313,001  

Shares Redeemed

       (556,664        (5,538,552        (572,160        (6,156,895
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (395,517        (3,963,732        (112,945        (1,541,457
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  125  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
MidCap Value Fund – (continued)                                    

Class I

                   

Shares Sold

       520,034        $ 6,756,443          414,930        $ 5,677,380  

Shares Issued for Reinvested Dividends

       66,544          983,484          300,075          3,648,250  

Shares Redeemed

       (1,126,169        (13,885,918        (939,685        (12,651,962
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (539,591        (6,145,991        (224,680        (3,326,332
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       83,482        $ 1,027,547          77,867        $ 1,086,097  

Shares Issued for Reinvested Dividends

       12,474          191,545          72,689          922,418  

Shares Redeemed

       (211,872        (2,849,232        (250,237        (3,619,666
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (115,916        (1,630,140        (99,681        (1,611,151
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       112,090        $ 1,454,297          125,020        $ 1,801,520  

Shares Issued for Reinvested Dividends

       19,234          303,476          82,313          1,068,388  

Shares Redeemed

       (222,635        (3,007,462        (194,448        (2,814,110
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (91,311        (1,249,689        12,885          55,798  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       9,680        $ 139,991          68,987        $ 961,987  

Shares Issued for Reinvested Dividends

       2,874          46,111          36,259          477,765  

Shares Redeemed

       (7,314        (94,084        (517,692        (7,282,905
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       5,240          92,018          (412,446        (5,843,153
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       126,076        $ 1,744,448          291,417        $ 4,364,547  

Shares Issued for Reinvested Dividends

       24,096          388,031          90,660          1,198,031  

Shares Redeemed

       (202,609        (2,806,695        (306,083        (4,432,547
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (52,437        (674,216        75,994          1,130,031  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       8,138,328        $      100,149,062          6,169,822        $ 84,036,654  

Shares Issued for Reinvested Dividends

       724,542          10,710,609          2,440,229          29,675,324  

Shares Redeemed

       (6,157,364        (78,365,435        (4,278,093        (58,547,425
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       2,705,506          32,494,236          4,331,958          55,164,553  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       111,036        $ 3,763,894          5,471,855        $ 65,314,795  
    

 

 

      

 

 

      

 

 

      

 

 

 
Quality Value Fund                                    

Class A

                   

Shares Sold

       439,196        $       8,293,523          515,463        $       10,074,937  

Shares Issued for Reinvested Dividends

       399,950          8,456,495          572,123          10,176,420  

Shares Redeemed

       (1,349,336        (25,330,604        (1,261,687        (24,792,514
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (510,190        (8,580,586        (174,101        (4,541,157
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       27,218        $ 445,180          48,982        $ 803,712  

Shares Issued for Reinvested Dividends

       16,808          302,140          28,768          438,130  

Shares Redeemed

       (189,929        (3,063,775        (229,704        (3,910,337
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (145,903        (2,316,455        (151,954        (2,668,495
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       116,192        $ 2,216,237          118,116        $ 2,316,278  

Shares Issued for Reinvested Dividends

       32,925          686,590          47,997          841,546  

Shares Redeemed

       (167,957        (3,198,931        (208,357        (4,046,731
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (18,840        (296,104        (42,244        (888,907
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       5,088        $ 93,854          17,295        $ 356,081  

Shares Issued for Reinvested Dividends

       2,697          57,990          3,279          59,308  

Shares Redeemed

       (20,388        (402,055        (15,768        (322,706
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (12,603        (250,211        4,806          92,683  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       42,840        $ 822,386          27,215        $ 549,127  

Shares Issued for Reinvested Dividends

       13,979          303,759          19,976          364,460  

Shares Redeemed

       (131,128        (2,658,103        (63,260        (1,291,227
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (74,309        (1,531,958        (16,069        (377,640
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  126  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Quality Value Fund – (continued)                                    

Class R5

                   

Shares Sold

       510        $ 10,672          1,251        $ 24,050  

Shares Issued for Reinvested Dividends

       566          12,405          1,768          32,495  

Shares Redeemed

       (173        (3,456        (16,898        (357,155
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       903          19,621          (13,879        (300,610
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       25,758        $ 484,275          1,060        $ 21,715  

Shares Issued for Reinvested Dividends

       83          1,828          35          650  

Shares Redeemed

       (2,382        (47,033        (6        (133
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       23,459          439,070          1,089          22,232  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       7,651        $ 158,274          27,388        $ 566,227  

Shares Issued for Reinvested Dividends

       1,541          33,830          2,143          39,465  

Shares Redeemed

       (17,842        (304,447        (30,147        (614,974
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (8,650        (112,343        (616        (9,282
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       110,798        $ 1,978,094          106,180        $ 2,050,010  

Shares Issued for Reinvested Dividends

       31,266          650,547          350,111          6,128,466  

Shares Redeemed

       (181,962        (3,365,916        (4,395,222        (84,991,695
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (39,898        (737,275        (3,938,931        (76,813,219
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (786,031      $ (13,366,241        (4,331,899      $ (85,484,395
    

 

 

      

 

 

      

 

 

      

 

 

 
Small Cap Growth Fund                                    

Class A

                   

Shares Sold

       129,404        $         5,969,147          143,713        $ 6,367,732  

Shares Issued for Reinvested Dividends

       64,625          3,116,821          1,137,942                42,820,742  

Shares Redeemed

       (602,309        (27,705,360        (691,468        (30,501,386
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (408,280        (18,619,392        590,187          18,687,088  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       4,911        $ 150,801          33,213        $ 900,484  

Shares Issued for Reinvested Dividends

       10,908          352,646          236,201          6,042,022  

Shares Redeemed

       (164,584        (5,078,582        (315,783        (9,391,318
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (148,765        (4,575,135        (46,369        (2,448,812
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       1,191,528        $ 51,688,394          2,177,043        $ 98,419,282  

Shares Issued for Reinvested Dividends

       57,456          2,916,489          1,099,491          43,341,934  

Shares Redeemed

       (3,414,260        (171,804,734        (3,548,369        (163,047,531
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,165,276        (117,199,851        (271,835        (21,286,315
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       41,973        $ 1,789,694          69,866        $ 2,907,966  

Shares Issued for Reinvested Dividends

       3,087          146,681          60,131          2,234,481  

Shares Redeemed

       (119,534        (5,504,341        (148,734        (6,537,096
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (74,474        (3,567,966        (18,737        (1,394,649
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       138,690        $ 6,582,259          285,710        $ 12,583,104  

Shares Issued for Reinvested Dividends

       12,210          614,885          297,846          11,687,478  

Shares Redeemed

       (456,656        (20,953,685        (909,172        (41,585,558
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (305,756        (13,756,541        (325,616        (17,314,976
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       720,572        $ 37,862,183          484,882        $ 22,426,482  

Shares Issued for Reinvested Dividends

       21,655          1,157,694          397,887          16,508,317  

Shares Redeemed

       (1,119,362        (58,971,093        (844,219        (41,911,678
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (377,135        (19,951,216        38,550          (2,976,879
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       1,797,542        $ 98,016,701          827,350        $ 38,567,669  

Shares Issued for Reinvested Dividends

       17,777          965,664          205,988          8,674,158  

Shares Redeemed

       (1,722,133        (85,535,221        (479,346        (23,694,911
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       93,186          13,447,144          553,992          23,546,916  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  127  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Small Cap Growth Fund – (continued)                                    

Class Y

                   

Shares Sold

       1,010,537        $ 51,567,246          3,471,469        $ 173,976,901  

Shares Issued for Reinvested Dividends

       92,203          5,010,332          1,656,136          69,789,590  

Shares Redeemed

       (3,823,424        (209,045,933        (3,955,235        (186,437,170
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,720,684        (152,468,355        1,172,370          57,329,321  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       192,412        $ 7,897,145          229,925        $ 10,549,148  

Shares Issued for Reinvested Dividends

       12,299          626,749          221,268          8,748,931  

Shares Redeemed

       (354,986        (17,110,113        (324,117        (15,214,484
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (150,275        (8,586,219        127,076          4,083,595  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (6,257,459      $ (325,277,531        1,819,618        $ 58,225,289  
    

 

 

      

 

 

      

 

 

      

 

 

 
Small Cap Value Fund                                    

Class A

                   

Shares Sold

       431,215        $        3,396,385          535,811        $        5,599,188  

Shares Issued for Reinvested Dividends

       292,505          2,936,036          1,345,441          12,452,725  

Shares Redeemed

       (1,289,036        (10,577,661        (1,175,436        (12,205,028
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (565,316        (4,245,240        705,816          5,846,885  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       31,607        $ 222,855          27,521        $ 250,111  

Shares Issued for Reinvested Dividends

       26,761          229,881          201,614          1,622,991  

Shares Redeemed

       (189,586        (1,389,193        (336,158        (3,016,977
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (131,218        (936,457        (107,023        (1,143,875
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       295,467        $ 2,831,571          290,021        $ 3,176,128  

Shares Issued for Reinvested Dividends

       41,551          418,405          101,935          945,995  

Shares Redeemed

       (405,903        (3,187,749        (246,872        (2,384,735
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (68,885        62,227          145,084          1,737,388  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       9,891        $ 82,868          12,137        $ 130,291  

Shares Issued for Reinvested Dividends

       3,512          36,622          12,847          123,296  

Shares Redeemed

       (17,164        (139,499        (5,951        (64,581
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (3,761        (20,009        19,033          189,006  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       1,313        $ 11,330          2,596        $ 26,803  

Shares Issued for Reinvested Dividends

       226          2,398          493          4,797  

Shares Redeemed

       (4,441        (42,520        (92        (993
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,902        (28,792        2,997          30,607  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       1,479        $ 10,000                 $  

Shares Issued for Reinvested Dividends

       69          730          888          8,638  

Shares Redeemed

       (1,479        (11,716        (2,386        (24,304
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       69          (986        (1,498        (15,666
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       18,071        $ 163,710          8,510        $ 91,476  

Shares Issued for Reinvested Dividends

       665          7,036          253          2,456  

Shares Redeemed

       (741        (7,349        (11        (110
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       17,995          163,397          8,752          93,822  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       842        $ 7,711          27,569        $ 298,131  

Shares Issued for Reinvested Dividends

       2,671          28,235          11,902          115,661  

Shares Redeemed

       (27,529        (261,033        (32,472        (375,274
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (24,016        (225,087        6,999          38,518  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       906,600        $ 7,468,195          1,466,457        $ 14,533,039  

Shares Issued for Reinvested Dividends

       329,545          3,318,168          1,036,113          9,621,393  

Shares Redeemed

       (1,038,699        (8,257,092        (619,373        (6,521,061
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       197,446          2,529,271          1,883,197          17,633,371  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (580,588      $ (2,701,676        2,663,357        $ 24,410,056  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  128  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Small Company Fund                                    

Class A

                   

Shares Sold

       1,886,865        $      39,854,997          1,819,229        $      35,427,303  

Shares Issued for Reinvested Dividends

       956,824          19,433,104          3,082,592          50,462,033  

Shares Redeemed

       (2,885,202        (59,241,409        (2,373,495        (46,229,828
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (41,513        46,692          2,528,326          39,659,508  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       116,822        $ 1,577,039          124,624        $ 1,583,364  

Shares Issued for Reinvested Dividends

       70,385          901,628          252,369          2,718,019  

Shares Redeemed

       (366,573        (4,857,687        (358,239        (4,604,087
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (179,366        (2,379,020        18,754          (302,704
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       296,143        $ 6,816,692          217,227        $ 4,551,958  

Shares Issued for Reinvested Dividends

       75,333          1,633,979          279,521          4,855,272  

Shares Redeemed

       (304,758        (6,628,138        (478,368        (9,730,251
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       66,718          1,822,533          18,380          (323,021
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       89,211        $ 1,943,559          134,256        $ 2,730,277  

Shares Issued for Reinvested Dividends

       35,475          793,230          146,146          2,626,237  

Shares Redeemed

       (258,886        (5,812,439        (330,361        (7,087,474
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (134,200        (3,075,650        (49,959        (1,730,960
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       118,455        $ 2,883,625          147,445        $ 3,466,416  

Shares Issued for Reinvested Dividends

       31,292          752,892          125,461          2,408,843  

Shares Redeemed

       (304,693        (7,836,433        (280,883        (6,458,571
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (154,946        (4,199,916        (7,977        (583,312
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       44,314        $ 1,187,403          62,555        $ 1,589,279  

Shares Issued for Reinvested Dividends

       6,152          157,911          19,819          403,513  

Shares Redeemed

       (56,252        (1,506,697        (55,755        (1,415,258
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (5,786        (161,383        26,619          577,534  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R6

                   

Shares Sold

       43,328        $ 1,379,271          2,145        $ 54,273  

Shares Issued for Reinvested Dividends

       220          5,772          1,032          21,469  

Shares Redeemed

       (5,289        (151,909        (553        (14,301
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       38,259          1,233,134          2,624          61,441  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       236,078        $ 6,005,173          165,468        $ 4,153,738  

Shares Issued for Reinvested Dividends

       58,965          1,548,420          252,900          5,260,320  

Shares Redeemed

       (943,050        (22,519,569        (475,656        (10,480,486
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (648,007        (14,965,976        (57,288        (1,066,428
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       1,838,858        $       40,440,450          4,045,700        $ 86,904,113  

Shares Issued for Reinvested Dividends

       518,887          11,316,929          1,153,443          20,116,041  

Shares Redeemed

       (2,396,511        (56,036,553        (1,258,713        (26,615,628
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (38,766        (4,279,174        3,940,430          80,404,526  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (1,097,607      $ (25,958,760        6,419,909        $     116,696,584  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

  (1) 

Inception date was February 28, 2019.

 

14.

Line of Credit:

Each Fund participates in a committed line of credit pursuant to a credit agreement dated March 5, 2020. Each Fund may borrow under the line of credit for temporary or emergency purposes. The Funds (together with certain other Hartford Funds) may borrow up to $350 million in the aggregate, subject to asset coverage and other limitations specified in the credit agreement. The interest rate on borrowings varies depending on the nature of the loan. The facility also charges a commitment fee, which is allocated ratably by assets based on a Fund’s actual net assets if the Fund has total assets of less than or equal to $1.05 billion and for all other participating funds, based on the notional asset level of $1.05 billion. During and as of the year ended October 31, 2020, none of the Funds had borrowings under this facility.

 

 

  129  

 


Hartford Domestic Equity Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

15.

Indemnifications:

Under each Company’s organizational documents, the Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation Law and federal securities laws. In addition, each Company, on behalf of its respective Funds, may enter into contracts that contain a variety of indemnifications. Each Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, each Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

16.

Recent Accounting Pronouncement:

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The update introduces new fair value disclosure requirements, eliminates some prior fair value disclosure requirements, and modifies certain existing fair value disclosure requirements.

ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management has adopted this guidance and it did not have a material impact on the Funds’ financial statements.

 

17.

Change in Independent Registered Public Accounting Firm:

On November 6, 2019, the Companies, on behalf of their respective Funds, dismissed Ernst & Young LLP (“EY”) as the Funds’ independent registered public accounting firm effective upon the issuance of EY’s report on the Funds’ financial statements as of and for the fiscal year ended October 31, 2019. EY’s report on the Funds’ financial statements for the fiscal years October 31, 2018 and October 31, 2019 contained no adverse opinion or disclaimer of opinion nor was EY’s report qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal periods ended on October 31, 2018 and October 31, 2019 and through December 30, 2019 (the “Covered Period”), (i) there were no disagreements with EY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of EY, would have caused it to make reference to the subject matter of the disagreements in connection with its reports on the Funds’ financial statements for the Covered Period, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.

On November 6, 2019, the Audit Committee of each Company’s Board of Directors participated in and approved the decision to engage PricewaterhouseCoopers LLP (“PwC”) as the independent registered public accounting firm for the Funds for the fiscal year ended October 31, 2020. The selection of PwC does not reflect any disagreements with or dissatisfaction by each Company or the Board of Directors with the performance of the Funds’ prior independent registered public accounting firm, EY. During the Covered Period, neither the Funds, nor anyone on their behalf, consulted with PwC on items which: (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(v) of Item 304 of Regulation S-K).

 

18.

Subsequent Events:

In connection with the preparation of the financial statements of the Funds as of and for the year ended October 31, 2020, events and transactions subsequent to October 31, 2020, through the date the financial statements were issued have been evaluated by the Funds’ management for possible adjustment and/or disclosure.

 

 

  130  

 


Report of Independent Registered Public Accounting Firm

To the Board of Directors of

The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. and Shareholders of The Hartford Capital Appreciation Fund, Hartford Core Equity Fund, The Hartford Dividend and Growth Fund, The Hartford Equity Income Fund, The Hartford Growth Opportunities Fund, The Hartford Healthcare Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund, Hartford Quality Value Fund, The Hartford Small Cap Growth Fund, Hartford Small Cap Value Fund and The Hartford Small Company Fund

 

 

 

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of The Hartford Capital Appreciation Fund, Hartford Core Equity Fund, The Hartford Dividend and Growth Fund, The Hartford Equity Income Fund, The Hartford Healthcare Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund, Hartford Small Cap Value Fund and The Hartford Small Company Fund (nine of the funds constituting The Hartford Mutual Funds, Inc.) and The Hartford Growth Opportunities Fund, Hartford Quality Value Fund and The Hartford Small Cap Growth Fund (three of the funds constituting The Hartford Mutual Funds II, Inc.) (hereafter collectively referred to as the “Funds”) as of October 31, 2020, the related statements of operations for the year ended October 31, 2020, the statements of changes in net assets for the year ended October 31, 2020, including the related notes, and the financial highlights for the year ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2020, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The financial statements of the Funds as of and for the year ended October 31, 2019 and the financial highlights for each of the periods ended on or prior to October 31, 2019 (not presented herein, other than the statements of changes in net assets and financial highlights) were audited by other auditors whose report dated December 30, 2019 expressed an unqualified opinion on those financial statements and financial highlights.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

December 29, 2020

We have served as the auditor of one or more Hartford Funds investment companies since 2020.

 

 

  131  

 


Hartford Domestic Equity Funds

Operation of the Liquidity Risk Management Program (Unaudited)

 

 

 

This section describes the operation and effectiveness of the Liquidity Risk Management Program (“LRM Program”) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The LRM Program seeks to assess and manage each Fund’s liquidity risk. The Liquidity Rule generally defines liquidity risk as the risk that a Fund could not meet its obligation to redeem shares without significant dilution of the non-redeeming investors’ interests in the Fund. The Boards of Directors (“Board”) of The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. has appointed Hartford Funds Management Company, LLC (“HFMC”) to serve as the administrator of the LRM Program with respect to each of the Funds, subject to the oversight of the Board. In order to efficiently and effectively administer the LRM Program, HFMC established a Liquidity Risk Oversight Committee.

The LRM Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the assessment and periodic review (no less frequently than annually) of certain factors that influence each Fund’s liquidity risk; (2) the classification and periodic review (no less frequently than monthly) of each Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) the determination of a minimum percentage of each Fund’s assets that generally will be invested in highly liquid investments (“HLIM”); (5) the periodic review (no less frequently than annually) of the HLIM and the adoption and implementation of policies and procedures for responding to a shortfall of a Fund’s highly liquid investments below its HLIM; and (6) periodic reporting to the Board.

At a meeting of the Board held May 5-6, 2020, HFMC provided an annual written report to the Board covering the period from the inception date of the current LRM Program through April 30, 2020. The annual report addressed important aspects of the LRM Program, including, but not limited to:

 

   

the operation of the LRM Program (and related policies and procedures utilized in connection with management of the Funds’ liquidity risk);

   

an assessment of the adequacy and effectiveness of the LRM Program’s (and related policies and procedures’) implementation;

   

the operation, and assessment of the adequacy and effectiveness, of each Fund’s HLIM;

   

whether the third-party liquidity vendor’s (“LRM Program Vendor”) processes for determining preliminary liquidity classifications, including the particular methodologies or factors used and metrics analyzed by the LRM Program Vendor, are sufficient under the Liquidity Rule and appropriate in light of each Fund’s specific circumstances; and

   

any material changes to the LRM Program.

In addition, HFMC provides a quarterly report on the LRM Program at each quarterly meeting of the Board’s Compliance and Risk Oversight Committee. The quarterly report included information regarding the Funds’ liquidity as measured by established parameters, a summary of developments within the capital markets that may impact liquidity, and other factors that may impact liquidity. Among other things, HFMC reports any changes to a Fund’s HLIM.

Since the inception of the LRM Program, HFMC has not increased nor reduced the HLIM for any Fund.

Based on its review and assessment, HFMC has concluded that the LRM Program is operating effectively to assess and manage the liquidity risk of each Fund and that the LRM Program has been and continues to be adequately and effectively implemented with respect to each Fund. Because liquidity in the capital markets in which the Funds invest is beyond the control of the Funds, there can be no assurance that the LRM Program will ensure liquidity under all circumstances and does not protect against the risk of loss.

 

 

  132  

 


Hartford Domestic Equity Funds

Directors and Officers of each Company (Unaudited)

 

 

 

Each of The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (each, a “Company”) is governed by a Board of Directors (the “Directors”). The following tables present certain information regarding the Directors and officers of each Company as of October 31, 2020. For more information regarding the Directors and officers, please refer to the Statement of Additional Information, which is available, without charge, upon request by calling 1-888-843-7824.

 

NAME, YEAR OF BIRTH
AND ADDRESS(1)

  

POSITION

HELD WITH

EACH

COMPANY

 

TERM OF

OFFICE(2) AND

LENGTH OF

TIME SERVED

 

PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS

  NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR
  

OTHER DIRECTORSHIPS

FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR

NON-INTERESTED DIRECTORS*

HILARY E. ACKERMANN

(1956)

   Director   Since 2014   Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011.   73    Ms. Ackermann served as a Director of Dynegy, Inc. from October 2012 until its acquisition in by Vistra Energy Corporation in 2018, and since that time she has served as a Director of Vistra. Ms. Ackermann serves as a Director of Credit Suisse Holdings (USA), Inc. from January 2017 to present.

ROBIN C. BEERY

(1967)

   Director   Since 2017   Ms. Beery has served as a consultant to ArrowMark Partners (an alternative asset manager) since March of 2015 and since November 2018 has been employed by ArrowMark Partners as a Senior Advisor. Previously, she was Executive Vice President, Head of Distribution, for Janus Capital Group, and Chief Executive Officer and President of the Janus Mutual Funds (a global asset manager) from September 2009 to August 2014.   73    Ms. Beery serves as an Independent Director of UMB Financial Corporation (January 2015 to present), has chaired the Compensation Committee since April 2017, and serves on the Audit Committee and the Risk Committee.

LYNN S. BIRDSONG

(1946)

   Director and Chair of the Board   Director since 2003; Chair of the Board since 2019   From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm. From 1979 to 2002, Mr. Birdsong was a Managing Director of Zurich Scudder Investments, an investment management firm.   73    None

CHRISTINE R. DETRICK

(1958)

   Director   Since 2016   Ms. Detrick served as a Senior Partner/Advisor at Bain & Company (a management consulting firm) from September 2002 to December 2012.   73    Ms. Detrick serves as a Director and Chair of the Nominating and Governance Committee of Reinsurance Group of America (from January 2014 to present). She also serves as a Director of Charles River Associates (May 2020 to present).

DUANE E. HILL(4)

(1945)

   Director  

Since 2001(5)

Since 2002(6)

  Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.   73    None

LEMMA W. SENBET

(1946)

   Director   Since 2005   Dr. Senbet currently serves as the William E. Mayer Chair Professor of Finance, in the Robert H. Smith School of Business at the University of Maryland, where he was chair of the Finance Department from 1998 to 2006. In June 2013, he began a sabbatical from the University to serve as Executive Director of the African Economic Research Consortium which focuses on economic policy research and training, which he completed in 2018.   73    None

 

 

  133  

 


Hartford Domestic Equity Funds

Directors and Officers of each Company (Unaudited) – (continued)

 

 

 

NAME, YEAR OF BIRTH
AND ADDRESS(1)

  

POSITION

HELD WITH

EACH

COMPANY

 

TERM OF

OFFICE(2) AND

LENGTH OF

TIME SERVED

 

PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS

  NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR
  

OTHER DIRECTORSHIPS

FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR

DAVID SUNG

(1953)

   Director   Since 2017   Mr. Sung was a Partner at Ernst & Young LLP from October 1995 to July 2014.   73    Mr. Sung serves as a Trustee of Ironwood Institutional Multi-Strategy Fund, LLC and Ironwood Multi-Strategy Fund, LLC (October 2015 to present).
OFFICERS AND INTERESTED DIRECTORS

JAMES E. DAVEY(7)

(1964)

   Director, President and Chief Executive Officer   President and Chief Executive Officer since 2010; Director since 2012   Mr. Davey serves as Executive Vice President of The Hartford Financial Services Group, Inc. Mr. Davey has served in various positions within The Hartford and its subsidiaries and joined The Hartford in 2002. Additionally, Mr. Davey serves as Director, Chairman, President, and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey also serves as President, Manager, Chairman of the Board, and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”); Manager, Chairman of the Board, and President of Lattice Strategies LLC (“Lattice”); Chairman of the Board, Manager, and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”); and Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”), each of which is an affiliate of HFMG.   73    None

ANDREW S. DECKER

(1963)

   AML Compliance Officer   Since 2015   Mr. Decker serves as Chief Compliance Officer and AML Compliance Officer of HASCO (since April 2015) and Vice President of HASCO (since April 2018). Mr. Decker serves as AML Officer of HFD (since May 2015). Mr. Decker also serves as Vice President of HFMG (since April 2018). Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015.   N/A    N/A

AMY N. FURLONG

(1979)

   Vice President and Treasurer   Since 2018   Ms. Furlong serves as Vice President and Assistant Treasurer of HFMC (since September 2019). Ms. Furlong has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Furlong joined The Hartford in 2004.   N/A    N/A

WALTER F. GARGER

(1965)

  

Vice President and Chief

Legal Officer

  Since 2016   Mr. Garger serves as Secretary, Managing Director and General Counsel of HFMG, HFMC, HFD, and HASCO (since 2013). Mr. Garger also serves as Secretary and General Counsel of Lattice (since July 2016). Mr. Garger has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Garger joined The Hartford in 1995.   N/A    N/A

THEODORE J. LUCAS

(1966)

   Vice President   Since 2017   Mr. Lucas serves as Executive Vice President of HFMG (since July 2016) and as Executive Vice President of Lattice (since June 2017). Previously, Mr. Lucas served as Managing Partner of Lattice (2003 to 2016).   N/A    N/A

 

 

  134  

 


Hartford Domestic Equity Funds

Directors and Officers of each Company (Unaudited) – (continued)

 

 

 

NAME, YEAR OF BIRTH
AND ADDRESS(1)

  

POSITION

HELD WITH

EACH

COMPANY

 

TERM OF

OFFICE(2) AND

LENGTH OF

TIME SERVED

 

PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS

  NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR
  

OTHER DIRECTORSHIPS

FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR

JOSEPH G. MELCHER

(1973)

   Vice President and Chief Compliance Officer   Since 2013   Mr. Melcher serves as Executive Vice President of HFMG and HASCO (since December 2013). Mr. Melcher also serves as Executive Vice President (since December 2013) and Chief Compliance Officer (since December 2012) of HFMC, serves as Executive Vice President and Chief Compliance Officer of Lattice (since July 2016), serves as Executive Vice President of HFD (since December 2013), and has served as President and Chief Executive Officer of HFD (from April 2018 to June 2019).   N/A    N/A

VERNON J. MEYER

(1964)

  

Vice

President

  Since 2006   Mr. Meyer serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG (since 2013). Mr. Meyer also serves as Senior Vice President-Investments of Lattice (since March 2019). Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.   N/A    N/A

ALICE A. PELLEGRINO

(1960)

   Vice President and Assistant Secretary   Since 2016   Ms. Pellegrino serves as Vice President of HFMG (since December 2013). Ms. Pellegrino also serves as Vice President and Assistant Secretary of Lattice (since June 2017). Ms. Pellegrino is a Senior Counsel and has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Pellegrino joined The Hartford in 2007.   N/A    N/A

THOMAS R. PHILLIPS

(1960)

   Vice President and Secretary   Since 2017   Mr. Phillips is Deputy General Counsel for HFMG and currently serves as Vice President (since February 2017) and Assistant Secretary (since June 2017) for HFMG. Prior to joining HFMG in 2017, Mr. Phillips was a Director and Chief Legal Officer of Saturna Capital Corporation from 2014–2016. Prior to that, Mr. Phillips was a Partner and Deputy General Counsel of Lord, Abbett & Co. LLC.   N/A    N/A

 

*

Following their election by shareholders, the following persons become Directors effective November 2, 2020:

Derrick D. Cephas – Until his retirement in October 2020, Mr. Cephas was a Partner of Weil, Gotshal & Manges LLP, an international law firm headquartered in New York, where he served as the Head of the Financial Institutions Practice (April 2011 to October 2020). Mr. Cephas serves as a Director of Signature Bank, a New York-based commercial bank, and is a member of the Credit Committee, Examining Committee and Risk Committee (March 2016 to present).

Andrew A. Johnson – Mr. Johnson currently serves as a Diversity and Inclusion Advisor at Neuberger Berman, a private, global investment management firm. Prior to his current role, Mr. Johnson served as Chief Investment Officer and Head of Global Investment Grade Fixed Income at Neuberger Berman (January 2009 to December 2018).

Paul L. Rosenberg – Mr. Rosenberg is a Partner of The Bridgespan Group, a global nonprofit consulting firm that is a social impact advisor to nonprofits, non-governmental organizations, philanthropists and institutional investors (October 2007 to present).

(1) 

The address for each officer and Director is c/o Hartford Funds 690 Lee Road, Wayne, Pennsylvania 19087.

(2) 

Each Director holds an indefinite term until his or her retirement, resignation, removal, or death. Directors generally must retire no later than December 31 of the year in which the Director turns 75 years of age. Each Fund officer generally serves until his or her resignation, removal, or death.

(3) 

The portfolios of the “Fund Complex” are operational series of The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., Hartford HLS Series Fund II, Inc., Lattice Strategies Trust, Hartford Funds Exchange-Traded Trust, and Hartford Schroders Opportunistic Income Fund.

(4) 

Effective December 31, 2020, Mr. Hill will retire from the Board of Directors.

(5) 

For The Hartford Mutual Funds, Inc.

(6) 

For The Hartford Mutual Funds II, Inc.

(7) 

“Interested person,” as defined in the 1940 Act, of each Company because of the person’s affiliation with, or equity ownership of, HFMC, HFD or affiliated companies.

 

 

  135  

 


Hartford Domestic Equity Funds

 

 

 

 

HOW TO OBTAIN A COPY OF EACH FUND’S PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2)  on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Each Fund’s Form N-PORT reports are available (1) without charge, upon request, by calling 888-843-7824, (2) on the Funds’ website, hartfordfunds.com, and (3) on the SEC’s website at http://www.sec.gov.

 

 

  136  

 


Hartford Domestic Equity Funds

Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited)

 

 

 

The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.

The Hartford Capital Appreciation Fund

Hartford Core Equity Fund

The Hartford Dividend and Growth Fund

The Hartford Equity Income Fund

The Hartford Growth Opportunities Fund

The Hartford Healthcare Fund

The Hartford MidCap Fund

The Hartford MidCap Value Fund

Hartford Quality Value Fund

The Hartford Small Cap Growth Fund

Hartford Small Cap Value Fund

The Hartford Small Company Fund

(each, a “Fund” and collectively, the “Funds”)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that each mutual fund’s board of directors, including a majority of those directors who are not “interested persons” of the mutual fund, as defined in the 1940 Act (the “Independent Directors”), annually review and consider the continuation of the mutual fund’s investment advisory and sub-advisory agreements. At their meeting held on August 4-5, 2020, the Boards of Directors (collectively, the “Board”) of The Hartford Mutual Funds, Inc. (“HMF”) and The Hartford Mutual Funds II, Inc. (“HMF II”), including each of the Independent Directors, unanimously voted to approve (i) the continuation of an investment management agreement by and between Hartford Funds Management Company, LLC (“HFMC”) and each of HMF, on behalf of each of The Hartford Capital Appreciation Fund, Hartford Core Equity Fund, The Hartford Dividend and Growth Fund, The Hartford Equity Income Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund and Hartford Small Cap Value Fund, and HMF II, on behalf of each of The Hartford Growth Opportunities Fund, Hartford Quality Value Fund and The Hartford Small Cap Growth Fund (the “Management Agreement”); (ii) the continuation of a separate investment management agreement by and between HFMC and HMF, on behalf of each of The Hartford Healthcare Fund and The Hartford Small Company Fund (the “2013 Investment Management Agreement” and together with the Management Agreement, the “Management Agreements”); and (iii) the continuation of investment sub-advisory agreements (each, a “Sub-Advisory Agreement” and collectively with the Management Agreements, the “Agreements”) between HFMC and each Fund’s sub-adviser, Wellington Management Company LLP (the “Sub-adviser,” and together with HFMC, the “Advisers”) with respect to each Fund.

In the months preceding the August 4-5, 2020 meeting, the Board requested and reviewed written responses from the Advisers to questions posed to the Advisers on behalf of the Independent Directors and supporting materials relating to those questions and responses. In addition, the Board considered such additional information as it deemed reasonably necessary to evaluate the Agreements, as applicable, with respect to each Fund, which included information furnished to the Board and its committees at their meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose, as well as information specifically prepared in connection with the approval of the continuation of the Agreements that was presented at the Board’s meetings held on June 16-17, 2020 and August 4-5, 2020. Information provided to the Board and its committees at their meetings throughout the year included, among other things, reports on Fund performance, legal, compliance and risk management matters, sales and marketing activity, shareholder services, and the other services provided to each Fund by the Advisers and their affiliates. The members of the Board also considered the materials and presentations by Fund officers and representatives of HFMC received at the Board’s meetings on June 16-17, 2020 and August 4-5, 2020 concerning the Agreements and at the special meeting of the Board’s Investment Committee on May 12, 2020 concerning Fund performance and other investment-related matters.

The Independent Directors, advised by independent legal counsel throughout the evaluation process, engaged service providers to assist them with evaluating the Agreements with respect to each Fund, as applicable. Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, was retained to provide the Board with reports on how each Fund’s contractual management fees, actual management fees, overall expense ratios and investment performance compared to those of comparable mutual funds with similar investment objectives. The Independent Directors also engaged an independent financial services consultant (the “Consultant”) to assist them in evaluating each Fund’s contractual management fees, actual management fees, overall expense ratios and investment performance. In addition, the Consultant reviewed the profitability methodologies utilized by HFMC in connection with the continuation of the Management Agreements.

In determining whether to approve the continuation of the Agreements for a Fund, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the continuation of the Agreements was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Agreements. The Board was also furnished with an analysis of its fiduciary obligations in connection with its evaluation of the Agreements. Throughout the evaluation process, the Board was assisted by counsel for the Funds. The Independent Directors were also separately assisted by independent legal counsel throughout the evaluation process. In connection with their deliberations, the Independent Directors met separately with independent

 

 

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legal counsel and the Consultant on June 12, 2020 and in executive session on several occasions to consider their responsibilities under relevant laws and regulations and to discuss the materials presented and other matters deemed relevant to their consideration of the approval of the continuation of the Agreements. As a result of the discussions that occurred during the June 12, 2020 and June 16-17, 2020 meetings, the Independent Directors presented HFMC with requests for additional information on certain topics. HFMC responded to these requests with written additional information in advance of the August 4-5, 2020 meeting. A more detailed summary of the important, but not necessarily all, factors the Board considered with respect to its approval of the continuation of the Agreements is provided below.

Nature, Extent and Quality of Services Provided by the Advisers

The Board requested and considered information concerning the nature, extent and quality of the services provided to each Fund by the Advisers. The Board considered, among other things, the terms of the Agreements and the range of services provided by the Advisers. The Board considered the Advisers’ professional personnel who provide services to the Funds, including each Adviser’s ability and experience in attracting and retaining qualified personnel to service the Funds. The Board considered each Adviser’s reputation and overall financial strength, as well as each Adviser’s willingness to consider and implement organizational and operational changes designed to enhance services to the funds managed by HFMC and its affiliates (the “Hartford funds”). In addition, the Board considered the quality of each Adviser’s communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Funds and other Hartford funds. In this regard, the Board took into account the Advisers’ communications with the Board in light of the market volatility amidst the coronavirus (“COVID-19”) pandemic.

The Board also requested and evaluated information concerning each Adviser’s regulatory and compliance environment. In this regard, the Board requested and reviewed information about each Adviser’s compliance policies and procedures, compliance history, and a report from the Funds’ Chief Compliance Officer about each Adviser’s compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulators. The Board also noted the Advisers’ support of the Funds’ compliance control structure, as applicable, and, in particular, the resources devoted by the Advisers in support of the Funds’ obligations pursuant to Rule 38a-1 under the 1940 Act and the Funds’ liquidity risk management program, as well as the efforts of the Advisers to combat cybersecurity risks. The Board also considered HFMC’s investments in business continuity planning designed to benefit the Funds, and the implementation of HFMC’s business continuity plans due to the COVID-19 pandemic. The Board also noted HFMC’s commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes to the market, regulatory and control environments in which the Funds and their service providers operate, including changes associated with the COVID-19 pandemic.

With respect to HFMC, the Board noted that, under the Management Agreements, HFMC is responsible for the management of the Funds, including oversight of fund operations and service providers, and the provision of administrative and investment advisory services in connection with selecting, monitoring and supervising the Sub-adviser. In this regard, the Board evaluated information about the nature and extent of responsibilities retained and risks assumed by HFMC that were not delegated to or assumed by the Sub-adviser. The Board considered HFMC’s ongoing monitoring of people, process and performance, including its quarterly reviews of each of the Hartford funds, semi-annual meetings with the leaders of each Fund’s portfolio management team, and oversight of the Hartford funds’ portfolio managers. The Board noted that HFMC has demonstrated a record of initiating changes to the portfolio management and/or investment strategies of the Hartford funds when warranted. The Board considered HFMC’s periodic due diligence reviews of the Sub-adviser and ongoing oversight of the Sub-adviser’s investment approach and results, process for monitoring best execution of portfolio trades and other trading operations by the Sub-adviser, and approach to risk management with respect to the Funds and the service providers to the Funds. The Board considered HFMC’s oversight of the Funds’ securities lending program and noted the income earned by the Funds that participate in such program. The Board also considered HFMC’s day-to-day oversight of each Fund’s compliance with its investment objective and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led to an increase in the scope of HFMC’s oversight in this regard. Moreover, the Board considered HFMC’s oversight of potential conflicts of interest between the Funds’ investments and those of other funds or accounts managed by the Funds’ portfolio management personnel.

In addition, the Board considered HFMC’s ongoing commitment to review and rationalize the Hartford funds product line-up. The Board also considered the expenses that HFMC had incurred, as well as the risks HFMC had assumed, in connection with the launch of new funds and changes to existing Hartford funds in recent years. The Board considered that HFMC is responsible for providing the Funds’ officers.

With respect to the Sub-adviser, which provides certain day-to-day portfolio management services for the Funds, subject to oversight by HFMC, the Board considered, among other things, the Sub-adviser’s investment personnel, investment philosophy and process, investment research capabilities and resources, performance record, trade execution capabilities and experience. The Board considered the experience of each Fund’s portfolio manager(s), the number of accounts managed by the portfolio manager(s), and the Sub-adviser’s method for compensating the portfolio manager(s). The Board also considered the Sub-adviser’s succession planning practices to ensure continuity of portfolio management services provided to the Funds.

The Board considered the benefits to shareholders of being part of the family of Hartford funds, including, with respect to certain share classes, the right to exchange investments between the same class of shares without a sales charge, the ability to reinvest Fund dividends into other Hartford funds (excluding the Hartford funds that are exchange-traded funds or an interval fund), and the ability to combine holdings in a Fund with holdings in other Hartford funds (excluding the Hartford funds that are exchange-traded funds or an interval fund) and 529 plans for which HFMC serves as the program manager to obtain a reduced sales charge. The Board considered HFMC’s efforts to provide investors in the Hartford funds with a broad range of

 

 

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investment styles and asset classes and the assumption of entrepreneurial and other risks by HFMC in sponsoring and providing ongoing services to new funds to expand these opportunities for shareholders. In addition, the Board observed that in the marketplace there are a range of investment options available to each Fund’s shareholders and such shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund.

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to each Fund by HFMC and the Sub-adviser.

Performance of each Fund and the Advisers

The Board considered the investment performance of each Fund. In this regard, the Board reviewed the performance of each Fund over different time periods presented in the materials and evaluated HFMC’s analysis of the Fund’s performance for these time periods. The Board considered information and materials provided to the Board by the Advisers concerning Fund performance, as well as information from Broadridge comparing the investment performance of each Fund to an appropriate universe of peer funds. The Board noted that while it found the comparative data provided by Broadridge generally useful in evaluating a Hartford fund’s investment performance, the Board recognized the limitations of such data, including, in particular, that notable differences may exist between a Hartford fund and its peers. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below.

The Board considered the detailed investment analytics reports provided by HFMC’s Investment Advisory Group throughout the year, including in connection with the approval of the continuation of the Agreements. These reports included, among other things, information on each Fund’s gross returns and net returns, the Fund’s investment performance compared to one or more appropriate benchmarks and relevant groups or categories of peer funds, various statistics concerning the Fund’s portfolio, a narrative summary of various factors affecting Fund performance, and commentary on the effect of current and recent market conditions. The Board also noted that, for The Hartford Capital Appreciation Fund, the Fund uses a multiple sleeve structure whereby each sleeve uses a different investment style and considered the performance attributions of the underlying managers. The Board considered the Advisers’ work with the Investment Committee, which assists the Board in evaluating the performance of each Fund at periodic meetings throughout the year and specifically with respect to the approval of the continuation of the Agreements. The Board considered that the Investment Committee, in its evaluation of investment performance at meetings throughout the year, focused particular attention on information indicating less favorable performance of certain Hartford funds for specific time periods and discussed with the Advisers the reasons for such performance. The Board also considered the analysis provided by the Consultant relating to each Fund’s performance track record.

In light of all the considerations noted above, the Board concluded that it had continued confidence in HFMC’s and the Sub-adviser’s overall capabilities to manage the Funds.

Costs of the Services and Profitability of the Advisers

The Board reviewed information regarding HFMC’s cost to provide investment management and related services to each Fund and HFMC’s profitability, both overall and for each Fund, on a pre-tax basis without regard to distribution expenses. The Board also requested and reviewed information about the profitability to HFMC and its affiliates from all services provided to each Fund and all aspects of their relationship with the Fund, including information regarding profitability trends over time and information provided by Broadridge analyzing the profitability of managers to other fund complexes. The Board also requested and received information relating to the operations and profitability of the Sub-adviser. The Board considered representations from HFMC and the Sub-adviser that the Sub-adviser’s fees were negotiated at arm’s length on a Fund-by-Fund basis and that the sub-advisory fees are paid by HFMC and not the Funds. Accordingly, the Board concluded that the profitability of the Sub-adviser is a less relevant factor with respect to the Board’s consideration of the Sub-Advisory Agreements.

The Board considered the Consultant’s review of the methodologies and estimates used by HFMC in calculating profitability in connection with the continuation of the Management Agreements, including a description of the methodology used to allocate certain expenses. The Board noted that the Consultant, at the Independent Directors’ request, performed a full review of HFMC’s process for calculating and reporting Fund profitability consistent with similar periodic reviews previously performed by the Consultant. The Board noted the Consultant’s view that such process is reasonable, sound and consistent with common industry practice.

Based on these considerations, the Board concluded that the profits realized by the Advisers and their affiliates from their relationships with each Fund were not excessive.

Comparison of Fees and Services Provided by the Advisers

The Board considered the comparative information that had been provided at meetings on June 16-17, 2020 and August 4-5, 2020 with respect to the services rendered to and the management fees to be paid by each Fund to HFMC and the total expense ratios of the Fund. The Board also considered comparative information with respect to the sub-advisory fees to be paid by HFMC to the Sub-adviser with respect to each Fund. In this regard, the Board requested and reviewed information from HFMC and the Sub-adviser relating to the management and sub-advisory fees, including the sub-advisory fee schedule for each Fund and the amount of the management fee retained by HFMC, and total operating expenses for each Fund. The Board also reviewed information from Broadridge comparing each Fund’s contractual management fees, actual management fees and total expense

 

 

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Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

ratios relative to an appropriate group of funds selected by Broadridge. The Board considered such information from Broadridge in consultation with the Consultant. For details regarding each Fund’s expenses, see the Fund-by-Fund synopsis below.

The Board considered the methodology used by Broadridge to select the funds included in the expense groups. While the Board recognized that comparisons between a Fund and its peer funds may be imprecise given, among other differences, the different service levels and characteristics of mutual funds and the different business models and cost structures of the Advisers, the comparative information provided by Broadridge assisted the Board in evaluating the reasonableness of each Fund’s fees and total operating expenses. In addition, the Board considered the analysis and views of the Consultant relating to each Fund’s fees and total operating expenses.

The Board also considered that HFMC provides nondiscretionary investment advisory services to a model portfolio that pursues an investment objective and an investment strategy similar to those of the Hartford Core Equity Fund. The Board also received information regarding fees charged by the Sub-adviser to any other clients with investment strategies similar to those of the Funds, including institutional separate account clients and registered fund clients for which the Sub-adviser serves as either primary investment adviser or sub-adviser. The Board considered the explanations provided by the Sub-adviser about any differences between the Sub-adviser’s services to the Funds and the services the Sub-adviser provides to other types of clients. In this regard, the Board reviewed information about the generally broader scope of services and compliance, reporting and other legal burdens and risks of managing registered funds compared with those associated with managing assets of non-registered fund clients such as institutional separate accounts.

Based on these considerations, the Board concluded that each Fund’s fees and total operating expenses, in conjunction with the information about quality of services, profitability, economies of scale, and other matters considered, were reasonable in light of the services provided.

Economies of Scale

The Board considered information regarding the extent to which economies of scale may be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of shareholders of the Fund. The Board reviewed the breakpoints in the management fee schedule for each Fund, if any, which reduce fee rates as the Fund’s assets grow over time. The Board recognized that a Fund with assets beyond the highest breakpoint level will continue to benefit from economies of scale because additional assets are charged the lowest breakpoint fee resulting in lower overall effective management fee rates. The Board also recognized that a fee schedule that reaches a breakpoint at a lower asset level provides shareholders with the benefit of anticipated or potential economies of scale. The Board considered that expense limitations and fee waivers that reduce a Fund’s expenses at all asset levels can have the same effect as breakpoints in sharing economies of scale with shareholders and provide protection from an increase in expenses if the Fund’s assets decline. In addition, the Board considered that initially setting competitive fee rates, pricing a Fund to scale at inception and making additional investments intended to enhance services available to shareholders are other means of sharing anticipated or potential economies of scale with shareholders. The Board also considered that HFMC has been active in managing expenses, which has resulted in benefits being realized by shareholders. The Board also noted that, for each of the Hartford Quality Value Fund and the Hartford Small Cap Value Fund, the Fund’s current low asset levels have kept the Fund from fully realizing the benefits of anticipated or potential economies of scale.

The Board reviewed and evaluated materials from Broadridge and the Consultant showing how management fee schedules of peer funds reflect economies of scale for the benefit of shareholders as a peer fund’s assets hypothetically increase over time. Based on information provided by HFMC, Broadridge, and the Consultant, the Board recognized that there is no uniform methodology for establishing breakpoints or uniform pattern in asset levels that trigger breakpoints or the amounts of breakpoints triggered.

After considering all of the information available to it, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of each Fund’s shareholders based on currently available information and the effective management fees and total expense ratios for the Fund at its current and reasonably anticipated asset levels. The Board noted, however, that it would continue to monitor any future growth in each Fund’s assets and the appropriateness of additional management fee breakpoints or other methods to share benefits from economies of scale as part of its future review of the Agreements.

Other Benefits

The Board considered other benefits to the Advisers and their affiliates from their relationships with the Funds.

The Board noted that HFMC receives fees for fund accounting and related services from the Funds, and the Board considered information on the profitability to HFMC from providing such services to the Funds. The Board also considered that each Fund pays a transfer agency fee to Hartford Administrative Services Company (“HASCO”), an affiliate of HFMC, equal to the lesser of: (i) the actual costs incurred by HASCO in connection with the provisions of transfer agency services, including payments made to sub-transfer agents, plus a reasonable target profit margin; or (ii) a specified amount as set forth in the Transfer Agency and Service Agreement by and between HMF and HMF II, on behalf of their respective Funds, and HASCO. The Board reviewed information about the profitability to HASCO of the Funds’ transfer agency function. The Board considered information provided by HFMC indicating that the transfer agency fees charged by HASCO to the Funds were fair and reasonable based on publicly available information. The Board also noted that HFMC and HASCO had delegated certain fund accounting services and transfer agency services, respectively, to external service providers.

 

 

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Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

The Board also considered that Hartford Funds Distributors, LLC (“HFD”), an affiliate of HFMC, serves as principal underwriter of the Funds. The Board noted that, as principal underwriter, HFD receives distribution and service fees from the Funds and receives all or a portion of the sales charges on sales or redemptions of certain classes of shares.

The Board considered the benefits, if any, to the Sub-adviser from any use of a Fund’s brokerage commissions to obtain soft dollar research.

Fund-by-Fund Factors

For purposes of the Fund-by-Fund discussion below, Fund performance is referred to as “in line with” a Fund’s benchmark where it was 0.5% above or below the benchmark return, and each Fund’s performance relative to its primary benchmark reflects the net performance of the Fund’s Class I shares as of March 31, 2020.

The Hartford Capital Appreciation Fund

 

 

The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1- and 5-year periods and the 2nd quintile for the 3-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3-, and 5-year periods.

 

 

The Board noted that the Fund’s contractual management fee and actual management fee were in the 4th quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.06% through February 28, 2021.

Hartford Core Equity Fund

 

 

The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1-, 3-, and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period.

 

 

The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.08% through February 28, 2021.

The Hartford Dividend and Growth Fund

 

 

The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-, 3-, and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3-, and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team.

 

 

The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile of its expense group. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.04% through February 28, 2021.

The Hartford Equity Income Fund

 

 

The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-, 3-, and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3-, and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team.

 

 

The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the third quintile of its expense group. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.06% through February 28, 2021.

The Hartford Growth Opportunities Fund

 

 

The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the 1-year period and the 2nd quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1- and 5-year periods and in line with its benchmark for the 3-year period. The Board noted recent changes to the Fund’s portfolio management team.

 

 

The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile of its expense group. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.04% through February 28, 2021.

The Hartford Healthcare Fund

 

 

The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period, the 3rd quintile for the 3-year period, and the 1st quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-year period and below its benchmark for the 3- and 5-year periods.

 

 

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Hartford Domestic Equity Funds

Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

 

The Board noted that the Fund’s contractual management fee was in the 4th quintile of its expense group, while its actual management fee was in the 5th quintile and its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.05% through February 28, 2021.

The Hartford MidCap Fund

 

 

The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the 1- and 3-year periods and the 4th quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3-, and 5-year periods.

 

 

The Board noted that the Fund’s contractual management fee was in the 3rd quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile. The Board noted that Class I and Y shares of the Fund have contractual transfer agency expense caps of 0.12% and 0.04%, respectively, through February 28, 2021.

The Hartford MidCap Value Fund

 

 

The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1-year period, the 2nd quintile for the 3-year period, and the 3rd quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 3-year periods and below its benchmark for the 5-year period.

 

 

The Board noted that the Fund’s contractual management fee was in the 2nd quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.07% through February 28, 2021.

Hartford Quality Value Fund

 

 

The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period and the 3rd quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 3-year periods and in line its benchmark for the 5-year period. The Board noted recent changes to the Fund’s portfolio management team.

 

 

The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. The Board noted that Class A shares of the Fund have a contractual expense cap of 0.96% through February 28, 2021, which resulted in HFMC reimbursing the Fund for certain expenses.

The Hartford Small Cap Growth Fund

 

 

The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the 1- and 3-year periods and the 5th quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-year period and in line with its benchmark for the 3- and 5-year periods.

 

 

The Board noted that the Fund’s contractual management fee was in the 1st quintile of its expense group, while its actual management fee was in the 2nd quintile and its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.04% through February 28, 2021.

Hartford Small Cap Value Fund

 

 

The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-year period, the 2nd quintile for the 3-year period, and the 4th quintile for the 5-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1- and 5-year periods and in line with its benchmark for the 3-year period.

 

 

The Board noted that the Fund’s contractual management fee and actual management fee were in the 2nd quintile, while its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. The Board noted that Class A shares of the Fund have a contractual expense cap of 1.30% through February 28, 2021, which resulted in HFMC reimbursing the Fund for certain expenses.

The Hartford Small Company Fund

 

 

The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1- and 3-year periods and the 4th quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period. The Board noted recent changes to the Fund’s portfolio management team.

 

 

The Board noted that the Fund’s contractual management fee and actual management fee were in the 3rd quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile. The Board noted that Class A shares of the Fund have a contractual expense cap of 1.40% through February 28, 2021, and that HFMC had reimbursed the Fund for certain expenses.

* * * *

 

 

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Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of each Fund and its shareholders for the Board to approve the continuation of the Agreements for an additional year. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves.

 

 

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Hartford Domestic Equity Funds

Supplemental Proxy Information (Unaudited)

 

 

 

A joint special meeting of shareholders of the Funds was held on October 21, 2020 (the “Shareholder Meeting”). The Shareholder Meeting was held for the purpose of electing members of the Funds’ Board of Directors. Shareholders elected the following ten (10) Directors at the Shareholder Meeting:

 

   

Hilary E. Ackermann

   

Robin C. Beery

   

Lynn S. Birdsong

   

Derrick D. Cephas

   

James E. Davey

   

Christine R. Detrick

   

Andrew A. Johnson

   

Paul L. Rosenberg

   

Lemma W. Senbet

   

David Sung

The results of the shareholders’ election of Directors were as follows:

 

The Hartford Mutual Funds, Inc.

 

Shares Outstanding (as of Record Date): 4,786,852,771.602

Total Shares Voted: 3,984,902,623.370

Percentage of Shares Voted: 83.246%

 

 

 

 

 

Director

  

Vote

  

Total Shares Voted

   Percentage of
Shares Voted
     Percentage
of Shares
Outstanding
 

Hilary E. Ackermann

   For:    3,902,805,882.770      97.940      81.531
   Withheld:    82,096,740.600      2.060      1.715

Robin C. Beery

   For:    3,915,421,841.765      98.257      81.795
   Withheld:    69,480,781.605      1.743      1.451

Lynn S. Birdsong

   For:    3,905,268,785.333      98.002      81.583
   Withheld:    79,633,838.037      1.998      1.663

Derrick D. Cephas

   For:    3,906,387,023.712      98.030      81.606
   Withheld:    78,515,599.658      1.970      1.640

James E. Davey

   For:    3,911,005,174.673      98.146      81.703
   Withheld:    73,897,448.697      1.854      1.543

Christine R. Detrick

   For:    3,915,250,969.140      98.253      81.791
   Withheld:    69,651,654.230      1.747      1.455

Andrew A. Johnson

   For:    3,908,222,118.290      98.076      81.645
   Withheld:    76,680,505.080      1.924      1.601

Paul L. Rosenberg

   For:    3,904,491,528.107      97.983      81.567
   Withheld:    80,411,095.263      2.017      1.679

Lemma W. Senbet

   For:    3,908,008,747.183      98.071      81.640
   Withheld:    76,893,876.187      1.929      1.606

David Sung

   For:    3,899,522,144.326      97.858      81.463
   Withheld:    85,380,479.044      2.142      1.783

 

 

  144  

 


Hartford Domestic Equity Funds

Supplemental Proxy Information (Unaudited) – (continued)

 

 

 

The Harford Mutual Funds II, Inc.

 

Shares Outstanding (as of Record Date): 768,594,114.957

Total Shares Voted: 566,699,328.863

Percentage of Shares Voted: 73.731%

 

 

 

 

 

Director

  

Vote

  

Total Shares Voted

   Percentage of
Shares Voted
     Percentage
of Shares
Outstanding
 

Hilary E. Ackermann

   For:    556,660,539.359      98.229      72.425
   Withheld:    10,038,789.504      1.771      1.306

Robin C. Beery

   For:    556,944,922.870      98.279      72.462
   Withheld:    9,754,405.993      1.721      1.269

Lynn S. Birdsong

   For:    556,292,460.990      98.164      72.377
   Withheld:    10,406,867.873      1.836      1.354

Derrick D. Cephas

   For:    556,856,991.347      98.264      72.451
   Withheld:    9,842,337.516      1.736      1.280

James E. Davey

   For:    557,044,179.884      98.297      72.475
   Withheld:    9,655,148.979      1.703      1.256

Christine R. Detrick

   For:    557,270,841.428      98.337      72.505
   Withheld:    9,428,487.435      1.663      1.226

Andrew A. Johnson

   For:    556,714,377.226      98.239      72.432
   Withheld:    9,984,951.637      1.761      1.299

Paul L. Rosenberg

   For:    556,427,961.551      98.188      72.395
   Withheld:    10,271,367.312      1,812      1.336

Lemma W. Senbet

   For:    556,309,838.539      98.167      72.380
   Withheld:    10,389,490.324      1.833      1.351

David Sung

   For:    556,545,785.718      98.209      72.410
   Withheld:    10,153,543.145      1.791      1.321

As of the date of the Shareholder Meeting, Mr. Duane E. Hill served as a Director and did not seek re-election. Mr. Hill will continue to serve as a Director until his scheduled retirement on December 31, 2020.

 

 

  145  

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

CUSTOMER PRIVACY NOTICE

The Hartford Financial Services Group, Inc. and Affiliates*

(herein called “we, our, and us”)

This Privacy Policy applies to our United States Operations

 

We value your trust. We are committed to the responsible:

a) management;

b) use; and

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of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

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We may obtain Personal Information from:

a) You;

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Based on the type of product or service You apply for or get from us, Personal Information such as:

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When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

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Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

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b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

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We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

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Personal Financial Information may include Social Security Numbers, Driver’s license numbers, or other government-issued identification numbers, or credit, debit card, or bank account numbers.

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Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

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You means an individual who has given us Personal Information in conjunction with:

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If you have any questions or comments about this privacy notice, please feel free to contact us at The Hartford – Consumer Rights and Privacy Compliance Unit, One Hartford Plaza, Hartford, CT 06155, or at ConsumerPrivacyInquiriesMailbox@thehartford.com.

This Customer Privacy Notice is being provided on behalf of The Hartford Financial Services Group, Inc. and its affiliates (including the following as of March 2020), to the extent required by the Gramm-Leach-Bliley Act and implementing regulations:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; Assurances Continentales Continentale Verzekeringen N.V; Bracht, Deckers & Mackelbert N.V.; Business Management Group, Inc.; Canal Re S.A.; Cervus Claim Solutions, LLC; First State Insurance Company; FTC Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Insurance, Ltd.; Hartford Integrated Technologies, Inc.; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford Management, Ltd.; Hartford Productivity Services LLC; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Specialty Insurance Services of Texas, LLC; Hartford STAG Ventures LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Heritage Holdings, Inc.; Heritage Reinsurance Company, Ltd.; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lattice Strategies LLC; Maxum Casualty Insurance Company; Maxum Indemnity Company; Maxum Specialty Services Corporation; Millennium Underwriting Limited; MPC Resolution Company LLC; Navigators (Asia) Limited; Navigators Corporate Underwriters Limited; Navigators Holdings (Europe) N.V.; Navigators Holdings (UK) Limited; Navigators Insurance Company; Navigators International Insurance Company Ltd.; Navigators Management Company, Inc.; Navigators Management (UK) Limited; Navigators N.V.; Navigators Specialty Insurance Company; Navigators Underwriting Agency Limited; Navigators Underwriting Limited; New England Insurance Company; New England Reinsurance Corporation; New Ocean Insurance Co., Ltd.; NIC Investments (Chile) SpA; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Property and Casualty Insurance Company of Hartford; Sentinel Insurance Company, Ltd; The Navigators Group, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company; Y-Risk, LLC.

Revised March 2020


This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges and expenses of a Fund. This and other important information is contained in a Fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.

The Funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA. Hartford Funds Management Company, LLC (HFMC) is the Funds’ investment manager. The Funds referenced herein are sub-advised by Wellington Management Company LLP. HFD and HFMC are not affiliated with the Funds’ sub-adviser.

MFAR-DE20    12/20    219823    Printed in U.S.A.

 

LOGO


LOGO

Hartford Funds Our Benchmark is The Investor®. Hartford Schroders Funds Annual Report October 31, 2020 Hartford Schroders China A Fund Hartford Schroders Emerging Markets Equity Fund Hartford Schroders Emerging Markets Multi-Sector Bond Fund Hartford Schroders International Multi-Cap Value Fund Hartford Schroders International Stock Fund Hartford Schroders Securitized Income Fund Hartford Schroders Tax-Aware Bond Fund Hartford Schroders US MidCap Opportunities Fund Hartford Schroders US Small Cap Opportunities Fund Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Funds’ website (hartfordfunds.com). You will be notified by mail each time a report is posted and provided with a website link to access the report. You may at any time elect to receive paper copies of all shareholder reports free of charge by contacting your financial intermediary or, if you invest directly with a Fund, by calling 1-888-843-7824. Your election to receive reports in paper will apply to all Hartford Funds held in your account if you invest through your financial intermediary or directly with a Fund. If you previously elected to receive shareholder reports and other communications electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications electronically anytime by contacting your financial intermediary.


LOGO

A MESSAGE FROM THE PRESIDENT

Dear Shareholders:

Thank you for investing in Hartford Mutual Funds. The following is the Funds’ Annual Report covering the period from November 1, 2019 through October 31, 2020.

Market Review

During the 12 months ended October 31, 2020, U.S. stocks, as measured by the S&P 500 Index,1 gained 9.71% – an impressive number, to be sure, but one that doesn’t

 

begin to capture the drama of a pandemic-driven roller-coaster ride that has plunged the world into economic depths not seen since the Great Recession.

The period began with record-low unemployment, positive stock performances, and an optimistic global growth outlook. In late 2019, for example, months of trade tensions between the U.S. and China appeared to be eased by an initial agreement on tariff and trade reforms. The so-called “Phase One” deal, coupled with progress on resolving issues surrounding the U.K.’s withdrawal from the EU and a new United States-Mexico-Canada Agreement signed in January, 2020, brought calm to markets and seemed to set the stage for a strong 2020.

Instead, the novel coronavirus (COVID-19) pandemic erupted in late January and helped trigger a global recession. As world leaders grappled with the “new normal” of social distancing measures, business closures, and other mitigation efforts, many investors headed for the exits in March, 2020, bringing the longest bull market in U.S. economic history to an abrupt end. By mid-April, the U.S. unemployment rate had surged to 14.7%.

Late April 2020 brought a surprising recovery in U.S. markets, largely in response to an unprecedented economic rescue effort from central banks, including the U.S. Federal Reserve (Fed), which reduced interest rates to near zero and pledged trillions in U.S. securities purchases.

On the fiscal side, the U.S. government unveiled a series of aggressive policy initiatives, including passage of the $2 trillion CARES Act in late March, 2020. The combined fiscal and monetary support provided a lifeline to many businesses large and small, helping to reduce the nation’s unemployment rate in September, 2020, to 7.9% – still alarmingly high compared with the record-low 3.5% in February.

By the period’s end, the U.S. had reached another grim milestone of more than 230,000 coronavirus deaths. As fall cases surged, a new round of lockdowns and restrictions on economic activity, particularly in Europe, were widely adopted; however, Congress deadlocked over providing further economic stimulus. A late-period market selloff triggered by worsening virus numbers reminded investors of the potential for further economic uncertainty ahead. In addition, a contentious U.S. presidential campaign divided the nation.

As we continue to endure spikes in COVID-19 cases while awaiting the regulatory approvals and distribution of a safe and effective vaccine, uncertainty remains. In these unprecedented times, it’s more important than ever to maintain a strong relationship with your financial professional.

Thank you again for investing in Hartford Mutual Funds. For the most up-to-date information on our funds, please take advantage of all the resources available at hartfordfunds.com.

LOGO

James Davey

President

Hartford Funds

 

1 

S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.

 

The index is unmanaged and not available for direct investment. Past performance does not guarantee future results.


Hartford Schroders Funds

Table of Contents

 

Fund Overview (Unaudited)

     2  

Benchmark Glossary (Unaudited)

     29  

Expense Examples (Unaudited)

     30  

Financial Statements:

  

Schedules of Investments:

  

Hartford Schroders China A Fund

     32  

Hartford Schroders Emerging Markets Equity Fund

     34  

Hartford Schroders Emerging Markets Multi-Sector Bond Fund

     37  

Hartford Schroders International Multi-Cap Value Fund

     42  

Hartford Schroders International Stock Fund

     52  

Hartford Schroders Securitized Income Fund

     54  

Hartford Schroders Tax-Aware Bond Fund

     58  

Hartford Schroders US MidCap Opportunities Fund

     63  

Hartford Schroders US Small Cap Opportunities Fund

     65  

Glossary

     68  

Statements of Assets and Liabilities

     69  

Statements of Operations

     73  

Statements of Changes in Net Assets

     75  

Statement of Cash Flows

     80  

Financial Highlights

     81  

Notes to Financial Statements

     89  

Report of Independent Registered Public Accounting Firm

     118  

Operation of the Liquidity Risk Management Program (Unaudited)

     119  

Directors and Officers (Unaudited)

     120  

How to Obtain a Copy of each Fund’s Proxy Voting Policies and Voting Records (Unaudited)

     123  

Quarterly Portfolio Holdings Information (Unaudited)

     123  

Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited)

     124  

Supplemental Proxy Information (Unaudited)

     130  

The views expressed in each Fund’s Manager Discussion contained in the Fund Overview section are views of that Fund’s portfolio manager(s) through the end of the period and are subject to change based on market and other conditions, and we disclaim any responsibility to update the views contained herein. These views may contain statements that are “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable. Holdings and characteristics are subject to change. Fund performance reflected in each Fund’s Manager Discussion reflects the returns of such Fund’s Class A shares, before sales charges. Returns for such Fund’s other classes differ only to the extent that the classes do not have the same expenses.


Hartford Schroders China A Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 03/31/2020

Sub-advised by Schroder Investment Management North America Inc. and its sub-sub-adviser, Schroder Investment Management North America Limited

  Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Cumulative Total Returns

for the Period Ending 10/31/2020

 

      Since
Inception1
 

Class A2

     50.60%  

Class A3

     42.32%  

Class C2

     49.80%  

Class C4

     48.80%  

Class I2

     50.80%  

Class Y2

     50.80%  

Class F2

     50.90%  

Class SDR2

     50.90%  

MSCI China A Onshore Index (Net)

     36.63%  

 

1 

Inception: 03/31/2020, Not Annualized

2 

Without sales charge

3 

Reflects maximum sales charge of 5.50%

4 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The table does not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.47%        1.45%  

Class C

     2.24%        2.24%  

Class I

     1.20%        1.15%  

Class Y

     1.22%        1.11%  

Class F

     1.12%        0.99%  

Class SDR

     1.12%        0.99%  

 

*

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 03/31/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  2  

 


Hartford Schroders China A Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Manager

Hartford Schroders China A Fund’s sub-adviser is Schroder Investment Management North America Inc. and its sub-sub-adviser is Schroder Investment Management North America Limited.

Jack Lee, CFA

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders China A Fund returned 50.60%, before sales charge, from the inception date of March 31, 2020 to October 31, 2020, outperforming the Fund’s benchmark, the MSCI China A Onshore Index (Net), which returned 36.60% for the same period. For the same period, the Class A shares of the Fund, before sales charge, also outperformed the 36.49% average return of the China Region peer group, a group of funds with investment strategies similar to those of the Fund, during the period.

Why did the Fund perform this way?

The Chinese equity market performed strongly over the period. We believe one of the key drivers of the strong performance was corporate earnings results. Solid incoming economic data also continued to validate the expectation of further economic recovery in the country. Regarding the coronavirus pandemic, China was “first in, first out” of this global health crisis. As a result, we believe China is also leading other countries in terms of economic recovery. During the period, industrial capacity and daily life were almost back to pre-pandemic levels. Exports and investment have been resilient and led the rebound. While the recovery in consumer consumption has lagged behind, the normalization of consumption patterns has accelerated towards the end of the period, with positive retail sales growth since August 2020. Overall, economic momentum has been supported by the unprecedented levels of fiscal and monetary stimulus by the Chinese government. This has, in turn, dramatically reduced bankruptcy risks and allowed investors to look through the current slump in earnings towards a more normal operating environment into 2021.

In addition to the strong policy support, Chinese equity markets have been led in recent months by companies that performed well during the coronavirus pandemic. These companies were often found in sectors and industries such as e-commerce and online gaming, healthcare, cloud computing, and technology more broadly – where earnings benefitted from an accelerating shift in consumption patterns during the global health crisis. The Chinese market’s heavy exposure to online companies helps explain its strong performance in recent months, as many of these stocks have benefited from a similar upward re-rating in valuations.

Stock selection supported the Fund’s strong performance relative to the MSCI China A Onshore Index (Net) for the period, with the largest contributions being made by the Industrials and Materials sectors. Conversely, selection was weaker in the Consumer Staples sector. Sector allocation was also supportive to the Fund’s relative returns. In particular, the Fund’s materially underweight exposure to the Financials sector contributed positively to relative returns for the period. However, the Fund’s underweight position in Consumer Staples offset part of the positive effect.

At the individual stock level, Zhejiang Sanhua Intelligent Controls was a key contributor to the Fund’s performance relative to the MSCI China A Onshore Index (Net) during the period. The electric-vehicle component maker traded higher on the back of resilient quarterly results released during the second quarter. Shares in industrial automatic control products manufacturer Shenzhen Inovance Technology rose on the back of a strong first quarter 2020 performance, which was driven by improvements in operational efficiency, and strong overall first half results in which margins continued to improve, owing to supply chain optimization, product mix, and leverage from increased volume. Shandong Sinocera Functional Material performed strongly as the market expected the implementation of China’s stage six emission standards for the automobile industry to boost the sales of the company’s ceramic honeycomb carrier, which is used as a tailpipe filter.

The Fund did not hold liquor company Kweichow Moutai, a constituent of the MSCI China A Onshore Index (Net), during the period, which detracted from relative performance. The shares rose in the second quarter of 2020 alongside those of its peers as it reported strong quarterly results despite the coronavirus pandemic. The Fund’s lack of exposure to another benchmark constituent liquor company, Wuliangye Yibin, impacted relative returns negatively for similar reasons to Kweichow Moutai. The zero weighting in Luxshare Precision Industry also detracted from performance, as the share price of the electronic connector manufacturer rose strongly alongside the broader Technology sector during the period.

Derivatives were not used in the Fund during the period.

What is the outlook as of the end of the period?

As of the end of the period, aggregate valuations for the market have risen to above-average levels following the strong market performance. We believe this is already pricing in a large part of the earnings recovery expected into 2021 and the upside for the companies that performed well during the pandemic. However, such optimism is not unreasonable given the potential for a snapback in activity in the next few quarters, and the ultra-low level of interest rates and bond yields around the world. Underneath the surface, we believe there is a very wide spread of earnings multiples among companies. This means that valuations in some of the sectors and industries with strong momentum this year – notably selected Healthcare, 5G equipment, electric vehicle-related equities, and other popular China A-listed shares – are much more stretched in our view. On the other hand, some cyclical and value equities have been out of favor with investors and are currently trading on a reasonable, if not distressed, valuations in our view. Given our expectations for continued economic recovery, there may be more rotation into cheap cyclical sectors, if they can show significant improvement in earnings.

 

 

 

  3  

 


Hartford Schroders China A Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Looking ahead, we expect that the pace of normalization after the coronavirus pandemic, the government’s policy stance, and ongoing U.S.-China tensions will remain the key drivers of China’s economic dynamics and market movements.

In terms of strategy, our key focus remains on those stocks exposed to the more secular growth themes in the country. In particular, we like stocks in the Industrials and upstream Materials sectors, as we believe these may benefit from multiple drivers including China’s industrial upgrade; the localization trend amid international trade friction; the abundance of engineering talent supporting research and development; increasing automation on the back of escalating labor costs; and a more environmentally conscious China. As of the end of the period, the Fund’s largest overweights relative to the MSCI China A Onshore Index (Net) were to the Industrials, Consumer Discretionary, Materials sectors, and the Fund’s largest underweights were to the Healthcare, Financials and Consumer Staples sectors.

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 China A shares through Stock Connect, which is subject to a number of restrictions that may affect the Fund’s investments and returns. Risks associated with investments in China include currency fluctuation, political, economic, social, environmental, regulatory and other risks, including risks associated with differing legal standards. Concentrating investments in China subjects the Fund to more volatility and greater risk of loss than a more diversified fund. 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 and economic developments. These risks may be greater for investments in emerging markets. Small-cap and mid-cap securities can have greater risks and volatility than large-cap securities.  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, and counterparty risk.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     1.7

Consumer Discretionary

     15.6  

Consumer Staples

     7.8  

Financials

     14.5  

Health Care

     6.9  

Industrials

     17.1  

Information Technology

     16.8  

Materials

     16.3  

Real Estate

     2.9  

Utilities

     0.8  
  

 

 

 

Total

     100.4
  

 

 

 

Short-Term Investments

     0.5  

Other Assets & Liabilities

     (0.9
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

    

 

 

 

  4  

 


Hartford Schroders Emerging Markets Equity Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 03/31/2006

Sub-advised by Schroder Investment Management North America Inc. and its sub-sub-adviser, Schroder Investment Management North America Limited

  Investment objective – The Fund seeks capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     11.28%        9.36%        3.44%  

Class A2

     5.15%        8.13%        2.86%  

Class C1

     10.51%        8.81%        3.29%  

Class C3

     9.51%        8.81%        3.29%  

Class I1

     11.56%        9.62%        3.68%  

Class R31

     11.08%        9.27%        3.51%  

Class R41

     11.43%        9.52%        3.63%  

Class R51

     11.55%        9.66%        3.69%  

Class Y1

     11.69%        9.74%        3.73%  

Class F1

     11.79%        9.75%        3.74%  

Class SDR1

     11.77%        9.80%        3.77%  

MSCI Emerging Markets Index (Net)

     8.25%        7.92%        2.42%  

 

1

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective immediately before the opening of business on 10/24/2016, the Schroder Emerging Market Equity Fund (the “Predecessor Fund”) was reorganized into the Fund. The performance information shown for periods prior to 10/24/2016 is that of the Predecessor Fund. Prior to 10/24/2016, Class A, Class I and Class SDR were called Advisor Shares, Investor Shares and R6 Shares, respectively. Class C, Class R3, Class R4, Class R5, and Class Y shares commenced operations on 10/24/2016 and performance prior to this date reflects the performance of the Predecessor Fund’s Investor Shares. Performance for Class SDR shares prior to 12/30/2014 (the inception date of the Predecessor Fund’s Class R6 Shares) reflects the performance of the Predecessor Fund’s Investor Shares. Class F shares commenced operations on 02/28/2017 and performance prior to that date is that of the Fund’s Class I shares. The returns would be different if the Fund’s fees and expenses were reflected for periods prior to 10/24/2016.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical waivers/reimbursements without which performance would have been lower.

 

Operating Expenses*    Gross      Net  

Class A

     1.44%        1.44%  

Class C

     2.16%        2.16%  

Class I

     1.23%        1.23%  

Class R3

     1.78%        1.78%  

Class R4

     1.48%        1.48%  

Class R5

     1.18%        1.18%  

Class Y

     1.15%        1.15%  

Class F

     1.06%        1.06%  

Class SDR

     1.06%        1.06%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  5  

 


Hartford Schroders Emerging Markets Equity Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Hartford Schroders Emerging Markets Equity Fund’s sub-adviser is Schroder Investment Management North America Inc. and its sub-sub-adviser is Schroder Investment Management North America Limited.

Tom Wilson, CFA

Portfolio Manager

Robert Davy

Portfolio Manager

James Gotto

Portfolio Manager

Waj Hashmi, CFA

Portfolio Manager

Nicholas Field

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders Emerging Markets Equity Fund returned 11.28%, before sales charge, for the twelve-month period ended October 31, 2020 compared to the Fund’s benchmark, the MSCI Emerging Markets Index (Net) which returned 8.25% for the same period. For the same period, the Class A shares of the Fund, before sales charge, outperformed the 5.70% average return of the Lipper Emerging Markets Funds peer group, a group of funds with investment strategies similar to those of the Fund, during the period.

Why did the Fund perform this way?

Global equities posted a positive return in dollar terms over the twelve-month period ended October 31, 2020 as measured by the MSCI World Index (Net). After initially advancing as U.S.-China trade tensions eased, culminating in the signing of a phase one deal in January 2020, global equities saw a steep sell-off as the coronavirus pandemic took hold. Measures to contain the virus resulted in sharp declines in economic activity. Global central banks and governments responded with substantial monetary stimulus and fiscal support packages. The U.S. Federal Reserve (Fed) cut its policy rate to 0.25% and announced material quantitative easing (QE), while the European Central Bank (ECB) expanded its existing QE program. In the U.S., Congress passed several support packages while EU leaders agreed for a 750 billion ($886.6 billion) recovery fund to be distributed in 2021. This stimulus, together with optimism towards the development of a coronavirus vaccine and signs of economic recovery, boosted global equities, despite re-escalation in U.S.-China tensions. Emerging market equities also finished in positive territory, with support from U.S. dollar weakness later in the period. The MSCI Emerging Markets Index (Net) outperformed the MSCI World Index (Net) during the period.

Within the MSCI Emerging Markets Index (Net), China, Taiwan, and South Korea were by far the best-performing index markets during the period. Argentina was the only other emerging market to finish in positive territory. China, where the virus first appeared, was the first country to implement lockdowns, which appear to be successful in containing its spread. China began to lift restrictions during the northern hemisphere

spring, with economic activity gradually normalizing. The authorities responded with fiscal stimulus, including additional measures unveiled at the National People’s Congress in May, as well as a mix of interest rate cuts. However, tensions with the U.S. re-escalated and broadened beyond trade. The U.S. tightened measures on Chinese telecommunications company Huawei, and took similar actions against semiconductor manufacturer SMIC. Meanwhile, China imposed a new security law on Hong Kong SAR which drew criticism from Western countries. Taiwan had relatively few cases of coronavirus, attributable to the government’s proactive response, deploying a plan developed following the SARS outbreak in 2003. Meanwhile, South Korea was successful in containing the spread of coronavirus via its track and trace program. Both Taiwan and South Korean markets were also led higher by strong performance from Technology equities. In Argentina, outperformance of the index market relative to the broader MSCI Emerging Markets Index (Net) was underpinned by a sharp rally in large index stock Globant.

Conversely, Greece was the worst-performing index market during the period, as the impact of the pandemic hit tourist revenues. Colombia recorded a steep fall, negatively impacted by the heavy decline in crude oil prices and the impact from the coronavirus pandemic. Lower crude prices and weaker demand weighed on Russian equities and the ruble. In Brazil, the government responded to the impact of the coronavirus pandemic by providing additional income support and funds for healthcare. The Brazilian central bank extended monetary policy easing and also agreed to a foreign exchange swap line with the Fed. However, concerns over the fiscal outlook weighed on the Brazilian real, and currency weakness accounted for the majority of the negative return. Turkish equities and the lira were firmly down as concerns over monetary policy mounted, with foreign exchange reserves continuing to ebb. The central European markets of Poland, Hungary and the Czech Republic all underperformed. India also lagged, albeit by a lesser extent.

The Fund outperformed the MSCI Emerging Markets Index (Net) over the reporting period. Country allocation was negative, with stock selection contributing to excess returns.

 

 

 

  6  

 


Hartford Schroders Emerging Markets Equity Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

On a country basis, the Fund’s overweight allocations to Russia, Brazil and Hungary, all of which underperformed, were the main detractors from performance. By contrast, these effects were partly offset by the underweight positions to Thailand, Indonesia, and India, all of which underperformed during the period.

At a stock level, selection in China, South Korea, South Africa and Taiwan added the most to relative returns during the period. In China, the overweights to JD.com and Tencent performed well. JD.com has seen sales growth over the period supported by e-commerce gaining market share. Tencent, meanwhile, continued to deliver strong growth in gaming and better-than-expected advertising performance. In South Korea, the Fund’s overweights to Samsung SDI and LG Chemical were among the key contributors to relative performance. Both stocks rallied sharply amid strong growth in electric vehicle battery demand. The overweight to internet search business Naver and a position in video game publisher Nexon, which was not a constituent of the MSCI Emerging Markets Index (Net), also performed well. In South Africa, the overweight to Naspers was a positive contributor to relative performance. In Taiwan, the overweight to TSMC was the main contributor to excess returns, as the stock’s price rallied on the company’s improving returns and competitive advantage. Being overweight to Delta Electronics was also beneficial during the period. Derivatives were not used in the Fund during the period.

What is the outlook as of the end of the period?

We believe the global economic recovery has lost some momentum recently. U.S. fiscal stimulus has so far not been renewed, and it is possible that further support is not forthcoming until after the inauguration of the next U.S. president in late January 2021. There is some concern that such a fiscal gap could have longer-term ramifications in terms of economic scarring. Meanwhile, second waves of the coronavirus pandemic have accelerated. And while it is positive that death rates have so far remained low, restrictions and a degree of societal caution are returning. That said, we believe growth should remain supported in the near term, given the inventory cycle and further scope for savings utilization in the U.S., as well as ongoing fiscal provision in the Eurozone. There is potential that infection rates improve or stabilize in certain emerging nations, such as Brazil, where policy has been to let the virus run. The arrival of summer may also prove beneficial to some Southern Hemisphere countries.

We believe the probability of a Biden victory in the U.S. presidential election has increased, with the prospect of the Democrats winning control of the Senate also coming into focus. Such an outcome would likely enable greater fiscal stimulus, be supportive of U.S. economic growth, and potentially lead to dollar weakness and an increase in the U.S. 10-year Treasury yield. It may also be negative for U.S. markets given the prospect for tax increases, notably corporate income taxes, and tighter regulation in certain sectors. This would likely be beneficial for emerging markets in our view. Whatever the outcome of the U.S. elections, we expect that U.S.-China tensions will persist, though we believe the approach would potentially become more measured under Mr. Biden should he be elected president.

We have been mindful of the balance of risk in the portfolio for some time. We have added to certain Value areas of the market in recent months, but have not materially changed the balance of the Fund’s portfolio, which remains oriented towards Quality and Growth as of the

end of the period. There has been a significant divergence in the performance of Value and Growth factors in 2020, as reflected in the dispersion of country, sector and currency returns. We believe there is bifurcation in the market, with rich valuations in Growth versus cheap valuations in Value, and cheap currencies in certain more economically vulnerable emerging-markets countries. In our view, if we should see improved news flow with regards to the coronavirus pandemic and the outlook for economic recovery, there is potential for a market rotation. We believe the catalyst would be increased confidence in societal normalization, which would provide the opportunity for a broader recovery in economic growth supported by ongoing loose monetary and fiscal policy. Societal normalization would potentially be led by vaccine delivery, more effective therapies or virus management, or in certain cases herd immunity. The timing of these developments and the prospect for societal normalization remains uncertain. We believe a Democratic clean sweep, with Biden elected president and the party gaining control of both houses of Congress, may also support some degree of rotation, while U.S. dollar weakness would provide further support to emerging-markets equities and currencies. In the longer term, there are concerns in certain emerging-markets countries over either surging public debt or economic scarring, though we believe in certain cases this has been priced into equity and currency valuations.

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 and economic developments. These risks may be greater for investments in emerging markets or if the Fund focuses in a particular geographic region or country.  Small- and mid-cap securities can have greater risks and volatility than large-cap securities.  The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     14.1

Consumer Discretionary

     24.1  

Consumer Staples

     4.7  

Energy

     3.8  

Financials

     15.3  

Health Care

     1.7  

Industrials

     2.0  

Information Technology

     23.7  

Materials

     5.9  

Real Estate

     0.9  

Utilities

     1.1  
  

 

 

 

Total

     97.3
  

 

 

 

Short-Term Investments

     2.2  

Other Assets & Liabilities

     0.5  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  7  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 06/25/2013

Sub-advised by Schroder Investment Management North America Inc.

  Investment objective – The Fund seeks to provide a return of long-term capital growth and income.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      Since
Inception1
 

Class A2

     -4.85%        3.62%        2.38%  

Class A3

     -9.14%        2.66%        1.74%  

Class C2

     -5.54%        3.03%        2.03%  

Class C5

     -6.44%        3.03%        2.03%  

Class I2

     -4.50%        3.92%        2.63%  

Class R32

     -4.79%        3.71%        2.49%  

Class R42

     -4.45%        3.85%        2.58%  

Class R52

     -4.41%        3.92%        2.63%  

Class Y2

     -4.34%        3.97%        2.67%  

Class F2

     -4.66%        3.91%        2.63%  

Class SDR2

     -4.44%        3.99%        2.71%  

JP Morgan Emerging Markets Blended Index (JEMB) – Equal Weighted5

     0.48%        5.20%        3.94%  

Custom Blended Benchmark5

     0.48%        5.20%        3.94%  

JP Morgan EMBI Global Diversified Index

     0.98%        5.57%        5.84%  

JP Morgan GBI Emerging Markets Global Diversified Index

     -3.81%        3.94%        0.17%  

JP Morgan CEMBI Broad Diversified Index

     4.24%        5.88%        5.69%  

 

1

Inception: 06/25/2013

2

Without sales charge

3 

Reflects maximum sales charge of 4.50%

4 

Reflects a contingent deferred sales charge of 1.00%

5 

Effective 03/31/2020, the JP Morgan Emerging Markets Blended Index (JEMB) — Equal Weighted replaced the Custom Blended Benchmark as the Fund’s primary benchmark as Hartford Funds Management Company, LLC (HFMC) believes this benchmark is a more appropriate benchmark for the Fund. The Custom Blended Benchmark is calculated by HFMC and consists of 33.4% JP Morgan EMBI Global Diversified Index/ 33.3% JP Morgan GBI Emerging Markets Global Diversified Index/ 33.3% JP Morgan CEMBI Broad Diversified Index.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective immediately before the opening of business on 10/24/2016, the Schroder Emerging Markets Multi-Sector Bond Fund (the “Predecessor Fund”) was reorganized into the Fund. The performance information shown for periods prior to 10/24/2016 is that of the Predecessor Fund. Prior to 10/24/2016, Class A, Class I and Class SDR were called Advisor Shares, Investor Shares and R6 Shares, respectively. Class C, Class R3, Class R4, Class R5, and Class Y shares commenced operations on 10/24/2016 and performance prior to this date reflects the performance of the Predecessor Fund’s Investor Shares. Performance for Class SDR shares prior to 12/30/2014 (the inception date of the Predecessor Fund’s Class R6 Shares) reflects the performance of the Predecessor Fund’s Investor Shares. Class F shares commenced operations on 02/28/2017 and performance prior to that date is that of the Fund’s Class I shares. The returns would be different if the Fund’s fees and expenses were reflected for periods prior to 10/24/2016.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

 

 

  8  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Operating Expenses*    Gross      Net  

Class A

     1.29%        1.15%  

Class C

     2.14%        1.90%  

Class I

     1.00%        0.90%  

Class R3

     1.65%        1.45%  

Class R4

     1.35%        1.15%  

Class R5

     1.05%        0.85%  

Class Y

     1.04%        0.85%  

Class F

     0.93%        0.75%  

Class SDR

     0.93%        0.75%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

    

 

 

 

Portfolio Manager

Hartford Schroders Emerging Markets Multi-Sector Bond Fund’s sub-adviser is Schroder Investment Management North America Inc.

Fernando Grisales, CFA

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders Emerging Markets Multi-Sector Bond Fund returned -4.85%, before sales charge, for the twelve-month period ended October 31, 2020, underperforming the Fund’s benchmark, JP Morgan Emerging Markets Blended Index (JEMB) – Equal Weighted, which returned 0.48% for the same period. Effective March 31, 2020, the JP Morgan Emerging Markets Blended Index (JEMB) – Equal Weighted replaced the Fund’s custom blended benchmark (33.4% JP Morgan EMBI Global Diversified Index/ 33.3% JP Morgan GBI Emerging Markets Global Diversified Index/ 33.3% JP Morgan CEMBI Broad Diversified Index) (the “Custom Blended Benchmark”), which returned 0.48% for the same period. The JP Morgan EMBI Global Diversified Index, the JP Morgan GBI Emerging Markets Global Diversified Index, and the JP Morgan CEMBI Broad Diversified Index returned 0.98%, -3.81%, and 4.24%, respectively, during the period. The Class A shares of the Fund, before sales charge, also underperformed the 0.59% average return of the Lipper International Emerging Markets Hard Currency Debt peer group, a group of funds with investment strategies similar to those of the Fund, during the period.

Why did the Fund perform this way?

Emerging market debt, as measured by the JP Morgan Emerging Markets Blended Index (JEMB) – Equal Weighted, returned 0.48% for the twelve-month period ended October 31, 2020. After a strong 3% return in the fourth quarter of 2019, the emergence of the COVID-19 global pandemic and ensuing shutdowns of economies across the globe triggered a sharp first-quarter sell-off in 2020. Central banks across the globe began issuing stimulus and relief packages to increase liquidity in

their markets, resulting in a sharp recovery in the second quarter of 2020, as the JP Morgan Emerging Markets Blended Index (JEMB) – Equal Weighted returned 11.08%. The recovery continued, albeit more modestly, in the four-month period ending October 31, 2020.

Security selection in U.S. dollar-denominated corporates was the largest detractor from the Fund’s performance relative to the JP Morgan Emerging Markets Blended Index (JEMB) – Equal Weighted for the period due largely to the Fund’s exposure to Aerovias De Mexico, Vendata Resources, and TV Azteca, which faced various financial stresses stemming from the shutdowns related to the global pandemic. These detractors were partially offset by names like Korea-East-West Power and CSCEC.

Selection in the Sovereign segment also largely detracted from relative performance, although to a lesser degree. Ecuador was the largest detractor, as the sovereign was the victim of both the coronavirus pandemic and the dramatic slide in oil prices in the first quarter of 2020. The oil price drop was compounded by Russia and Saudi Arabia engaging in a price war.

Asset allocation in the Local Currency segment was positive on the whole largely due to the Fund’s underweight to the segment throughout 2020. The Fund’s underweight to the sector was positive for the period as local currency assets trailed the broader emerging-markets debt segment, returning -3.81% for the period. In particular, the Fund’s underweight to Colombia and Brazil stood out for their positive impacts on relative performance.

 

 

 

  9  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

The Fund used foreign exchange (FX) forwards, a type of derivative, for purposes of adding or hedging local currency exposure during the period. These derivatives detracted from relative performance for the period with Mexico, Chile and Turkey among the leading detractors. We have reduced the Fund’s duration overweight against the JP Morgan Emerging Markets Blended Index (JEMB) – Equal Weighted from 1.4 years to 0.4 years as of the end of the period.

What is the outlook as of the end of the period?

The outlook is clouded by temporary factors, such as the U.S. election uncertainty. However, we believe a structurally growing fiscal deficit, coupled with other historically significant factors, such as the global coronavirus pandemic, leads to a high probability of a weaker U.S. dollar for some time. Movement in the U.S. dollar has long been seen as a key structural driver for returns on emerging-market assets.

We believe the key risk for emerging-markets dollar debt is the possible resumption of the recent uptrend in U.S. Treasury yields.

The incipient emergence of large and growing fiscal and current account deficits in the U.S. along with an extended period of very robust dollar liquidity will, we believe, enhance the probability of a weaker dollar trend in the coming quarters and years, especially in the absence of interest-rate differentials between the U.S. and the rest of the world. Notably, we believe this move will be a cyclical downturn in the dollar, not a structural decline associated with a change in reserve currency status.

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.  Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.  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 and economic developments. These risks may be greater for investments in emerging markets or if the Fund focuses in a particular geographic region or country.  Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.  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, and counterparty risk. Restricted securities may be more difficult to sell and price than other securities. The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability. The Fund invests in a smaller number of issuers, so it may be more exposed to risks and volatility than a more broadly diversified fund.

Composition by Security Type(1)

as of 10/31/2020

 

Category    Percentage of
Net Assets
 

Fixed Income Securities

 

Corporate Bonds

     45.0

Foreign Government Obligations

     45.6  
  

 

 

 

Total

     90.6
  

 

 

 

Short-Term Investments

     9.3  

Other Assets & Liabilities

     0.1  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  10  

 


Hartford Schroders International Multi-Cap Value Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 08/30/2006

Sub-advised by Schroder Investment Management North America Inc. and its sub-sub-adviser, Schroder Investment Management North America Limited

  Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     -12.01%        1.36%        2.60%  

Class A2

     -16.88%        0.23%        2.02%  

Class C1

     -12.69%        0.79%        2.43%  

Class C3

     -13.55%        0.79%        2.43%  

Class I1

     -11.86%        1.63%        2.86%  

Class R31

     -12.42%        1.14%        2.61%  

Class R41

     -12.07%        1.37%        2.73%  

Class R51

     -11.75%        1.62%        2.85%  

Class Y1

     -11.72%        1.70%        2.89%  

Class F1

     -11.65%        1.72%        2.91%  

Class SDR1

     -11.78%        1.74%        2.91%  

MSCI ACWI ex USA Index (Net)

     -2.61%        4.26%        3.43%  

MSCI ACWI ex USA Value Index (Net)

     -15.94%        0.18%        0.88%  

 

1

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective immediately before the opening of business on 10/24/2016, the Schroder International Multi-Cap Value Fund (the “Predecessor Fund”) was reorganized into the

Fund. The performance information shown for periods prior to 10/24/2016 is that of the Predecessor Fund. Prior to 10/24/2016, Class A, Class I and Class SDR were called Advisor Shares, Investor Shares and R6 Shares, respectively. Class C, Class R3, Class R4, Class R5, and Class Y shares commenced operations on 10/24/2016 and performance prior to this date reflects the performance of the Predecessor Fund’s Investor Shares. Performance for Class SDR shares prior to 12/30/2014 (the inception date of the Predecessor Fund’s Class R6 Shares) reflects the performance of the Predecessor Fund’s Investor Shares. Class F shares commenced operations on 02/28/2017 and performance prior to that date is that of the Fund’s Class I shares. The returns would be different if the Fund’s fees and expenses were reflected for periods prior to 10/24/2016.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.13%        1.13%  

Class C

     1.88%        1.88%  

Class I

     0.87%        0.87%  

Class R3

     1.49%        1.49%  

Class R4

     1.19%        1.19%  

Class R5

     0.88%        0.88%  

Class Y

     0.88%        0.83%  

Class F

     0.77%        0.77%  

Class SDR

     0.77%        0.77%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Gross expenses do not reflect contractual fee waivers or expense reimbursement arrangements. Net expenses reflect such arrangements only with respect to Class Y. These arrangements remain in effect until 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  11  

 


Hartford Schroders International Multi-Cap Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Hartford Schroders International Multi-Cap Value Fund’s sub-adviser is Schroder Investment Management North America Inc. and its sub-sub-adviser is Schroder Investment Management North America Limited.

Justin Abercrombie

Portfolio Manager

Stephen Langford, CFA

Portfolio Manager

David Philpotts

Portfolio Manager

Daniel Woodbridge

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders International Multi-Cap Value Fund returned -12.01%, before sales charge, for the twelve-month period ended October 31, 2020, underperforming one of the Fund’s benchmarks, the MSCI ACWI ex USA Index (Net) benchmark which returned -2.61% for the period, and outperforming the Fund’s secondary benchmark, the MSCI ACWI ex USA Value Index (Net), which returned -15.94% for the same period. For the same period, the Class A shares of the Fund, before sales charge, outperformed the -13.17% average return of the Lipper International Multi-Cap Value peer group, which is a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

Over the course of the one-year period from November 1, 2019, the growth investment style in international markets (as measured by the MSCI ACWI ex USA Growth Index (Net)) led the value investment style (as measured by MSCI ACWI ex USA Value Index (Net)) by 27.4%. This marked an unprecedented dispersion between growth and value over a year’s time. The coronavirus pandemic exacerbated a multi-year trend in favor of expensive defensive businesses and mega-cap growth equities in the Technology sector and other stay-at-home categories that performed well, while more economically sensitive cyclical stocks struggled, especially as global economies were shut down in an effort to contain the spread of the coronavirus. However, we have seen short windows of time, during the recovery in the second quarter of 2020 for example, when fiscal and monetary stimulus, better news on the momentum in global activity, and progress reported on vaccines and therapeutics, has driven rotation towards value and cyclicals.

Against the MSCI ACWI ex USA Index (Net), the Consumer Discretionary sector was the largest detractor over the period, specifically related to the outperformance of growth equities that we do not hold in the Fund as they are outside of the value universe, in our view. These include Alibaba, Meituan, JD.com, and Nio in China. The Communications and Technology sectors detracted for the same reason, with almost the entirety of the lag due to not holding Tencent and Softbank, as well as names like Shopify and ASML. Another significant detractor was the Energy sector, where we maintain a modest overweight to MSCI ACWI ex USA Index (Net), focused on the lowest

cost and highest quality oil & gas names. With oil prices plummeting over the year, a number of the Fund’s overweights in Australian, European, Japanese, and Russian companies were significant detractors from the Fund’s performance. Other, more modest detractors were stock selection in the pharmaceuticals industry and Consumer Staples sector. On the other hand, stock selection in the Materials sector contributed positively to performance, as rising gold and precious metals prices (in the context of U.S. dollar weakness) lifted stock prices of mining and gold companies in Australia, Canada, Russia and South Africa that were held in the Fund’s portfolio.

Against the MSCI ACWI ex USA Value Index (Net), the Technology sector was the largest contributor over the period, as the Fund’s overweights and out of benchmark holdings in the semiconductors, business software, IT services, and technology hardware industries outperformed, especially in Taiwan (TSMC, Utd), Korea, India, China and Japan. Stock selection within the Materials sector was another strong driver of performance relative to the MSCI ACWI ex USA Value Index (Net), as described in the section above with reference to gold and mining equities. Against the MSCI ACWI ex USA Value Index (Net), the Fund’s stock selection in the Healthcare sector, particularly overweights and out of benchmark holdings in the likes of Roche, Merck, and Sanofi, contributed positively to performance as well. The Fund’s underweights to (or avoidance of) names like HSBC, Santander, Lloyds, Itau, and a number of other Australian and European banks contributed positively to performance relative to the MSCI ACWI ex USA Value Index (Net) as the Financials sector had challenged performance as a result of the coronavirus pandemic and continued low interest rate environment. On the other hand, the Consumer Staples and Utilities sectors proved to be modest detractors from performance over the period. As of the end of the period, these are areas where we maintain structural underweights, as we consider many utility companies to be fundamentally weak and highly leveraged, while we view a number of companies in the Consumer Staples sector to be overvalued as investors have sought defensive exposure. Returns in the Utilities sector were lifted by investors chasing yield plays in the context of lower bond yields, and the Consumer Staples sector performed well as companies in this sector were favored over the course of the year as areas less affected by the consumer demand disruption associated with the coronavirus pandemic.

 

 

 

  12  

 


Hartford Schroders International Multi-Cap Value Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

We believe that valuations and business quality (as defined by measures of profitability, stability, financial strength, and management quality) are two key drivers of long-run equity returns. We apply a proprietary quantitative investment analysis that seeks to capture the high returns historically available from value stocks. We seek to select relatively inexpensive stocks of issuers located anywhere in the world based on an evaluation of a number of valuation metrics including: dividends, cash flow, earnings, sales and asset-based measures.

Towards the end of the twelve-month period ended October 31, 2020, we sold securities in the Materials, Consumer Staples (particularly home products), and Communications (wireless telecom) sectors, while adding to exposures in the Financials (particularly life and health insurance companies), Industrials, Consumer Discretionary and Healthcare sectors. By industry, we trimmed some positions in banks, online retail and IT services in favor of increasing our exposure to online and mobile entertainment, integrated telecom, semiconductors and retail. Following these changes, the Fund continued to be overweight in the Materials, Industrials, Energy, Communications, Technology, and Healthcare sectors relative to the MSCI ACWI ex USA Index (Net). We retained underweights in the Consumer Discretionary, Consumer Staples, Utilities and Real Estate sectors. The Fund’s exposure to the Financials sector is in line with the MSCI ACWI ex USA Index (Net) but significantly lower than the MSCI ACWI ex USA Value Index (Net).

From a geographic perspective, the Fund continued to be underweight in Europe relative to the MSCI ACWI ex USA Index (Net) (though we have made additions in this region across the Industrials, Technology, Financials, Energy and Communications sectors, while trimming positions in the Consumer Staples sector) and Asia Pacific ex Japan (where we have further trimmed Financials and Energy in Australia) as of the end of the reporting period. We maintained overweight positions in the Fund relative to the MSCI ACWI ex USA Index (Net) in the U.K. (where we added to positioning in the Financials, Healthcare, and Consumer Discretionary sectors, while trimming in the Materials sector) and Japan (where we sold positions in the Communications sector). In Emerging Markets, we maintained an overweight as well, though we trimmed overall exposure. We further added to the Fund’s China and India underweights, while increasing exposure in Taiwan and Korea.

Looking ahead, we anticipate that, given continued uncertainly, we could again see heightened levels of market volatility, and we believe that the Fund’s investment process provides opportunities to seek to generate excess return relative to its benchmarks.

We believe the underperformance of value-based approaches in recent years is the other side of the rapid rise in concentration in the mainstream indices, led by a handful of increasingly expensive equities. While these equities have generally surprised on the upside in terms of their rapid pace of growth, which has been reinforced further this year due to the impact of the COVID-19 pandemic, this has to be balanced against what is already factored into their lofty valuations.

We believe that a diversified all-cap approach, and avoiding the areas of low-quality value, should continue to be key going forward, particularly against the backdrop of a weak global economy.

We have made a number of enhancements to our models in response to this year’s volatility, most notably with respect to our increased focus on financial strength, especially around measures of short-term debt and liquidity, and extending our time horizon, by placing greater emphasis on longer-term earnings in our valuation models in order to seek to avoid this year’s lockdown disruption. Alongside our ongoing focus on sustainability research, we have also broadened out the number of market themes that we monitor (e.g., companies that have performed well during the coronavirus pandemic versus those that have performed poorly) in order to seek to assist in short-term risk management.

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 and economic developments. These risks may be greater for investments in emerging markets or if the Fund focuses in a particular geographic region or country. Small- and mid-cap securities can have greater risks and volatility than large-cap securities. Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     11.5

Consumer Discretionary

     9.7  

Consumer Staples

     4.7  

Energy

     5.8  

Financials

     16.5  

Health Care

     9.8  

Industrials

     10.4  

Information Technology

     13.0  

Materials

     13.0  

Real Estate

     1.8  

Utilities

     2.7  
  

 

 

 

Total

     98.9
  

 

 

 

Short-Term Investments

     2.0  

Other Assets & Liabilities

     (0.9
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  13  

 


Hartford Schroders International Stock Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 12/19/1985

Sub-advised by Schroder Investment Management North America Inc. and its sub-sub-adviser, Schroder Investment Management North America Limited

  Investment objective – The Fund seeks long-term capital appreciation through investment in securities markets outside the United States.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     10.63%        7.07%        5.20%  

Class A2

     4.56%        5.87%        4.61%  

Class C1

     9.93%        6.53%        5.06%  

Class C3

     8.93%        6.53%        5.06%  

Class I1

     10.93%        7.38%        5.48%  

Class R31

     10.38%        7.10%        5.34%  

Class R41

     10.62%        7.24%        5.41%  

Class R51

     10.96%        7.40%        5.49%  

Class Y1

     11.00%        7.44%        5.51%  

Class F1

     11.05%        7.45%        5.51%  

Class SDR1

     11.07%        7.48%        5.54%  

MSCI ACWI ex USA Index (Net)

     -2.61%        4.26%        3.43%  

 

1

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective immediately before the opening of business on 10/24/2016, the Schroder International Alpha Fund (the “Predecessor Fund”) was reorganized into the Fund. The performance information shown for periods prior to 10/24/2016 is that of the Predecessor

Fund. Prior to 10/24/2016, Class A, Class I and Class SDR were called Advisor Shares, Investor Shares and R6 Shares, respectively. Class C, Class R3, Class R4, Class R5, and Class Y shares commenced operations on 10/24/2016 and performance prior to this date reflects the performance of the Predecessor Fund’s Investor Shares. Performance for Class SDR shares prior to 12/30/2014 (the inception date of the Predecessor Fund’s Class R6 Shares) reflects the performance of the Predecessor Fund’s Investor Shares. Class F shares commenced operations on 02/28/2017 and performance prior to that date is that of the Fund’s Class I shares. The returns would be different if the Fund’s fees and expenses were reflected for periods prior to 10/24/2016.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.16%        1.16%  

Class C

     1.89%        1.89%  

Class I

     0.85%        0.85%  

Class R3

     1.50%        1.46%  

Class R4

     1.20%        1.16%  

Class R5

     0.90%        0.86%  

Class Y

     0.85%        0.85%  

Class F

     0.78%        0.76%  

Class SDR

     0.78%        0.76%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  14  

 


Hartford Schroders International Stock Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Hartford Schroders International Stock Fund’s sub-adviser is Schroder Investment Management North America Inc. and its sub-sub-adviser is Schroder Investment Management North America Limited.

Simon Webber, CFA

Portfolio Manager

James Gautrey, CFA

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders International Stock Fund returned 10.63%, before sales charge, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the MSCI ACWI ex USA Index (Net), which returned -2.61% for the same period. Class A shares of the Fund, before sales charge, also outperformed the 9.17% average return of the Lipper International Large Cap Growth peer group, a group of funds with investment strategies similar to those of the Fund, during the period.

Why did the Fund perform this way?

International equities were relatively weak over the period following the dramatic sell-off in the early months of 2020 as the economic impact from the coronavirus pandemic became apparent. The strength of the subsequent recovery was supported by unprecedented levels of peacetime monetary and fiscal stimulus measures by central banks and governments around the world. Companies exposed to travel, retailing, banking and energy have been particularly hard hit by the effects of lockdowns, while businesses that are able to provide digital and online services have flourished. The coronavirus pandemic has therefore accelerated many of the underlying structural changes that were already underway, increasing the rewards to companies that are well invested in their digital operations.

Stock selection supported strong Fund performance throughout the period with the largest contributions from the Information Technology, Industrials and Communication Services sectors. Electrification and the shift to renewable energy continued to accelerate, and the Fund’s exposure to environmental technologies through Vestas Wind and Schneider Electric was very supportive to relative performance to its benchmark as investors have begun to recognize this megatrend. The Fund’s exposure to disruptive e-commerce platform stocks, such as Alibaba in China and Mercado Libre in Latin America, also helped contribute positively to Fund performance. The lockdown forced new consumers to use these platforms, and we believe many of them are unlikely to return to their historical offline consumption patterns. Conversely, the Fund’s holdings within the Consumer Staples and Materials sectors, as well as a number of the Fund’s holdings within the Consumer Discretionary sector with exposure to the travel industry, detracted from relative performance over the period. UK hotel operator Whitbread performed poorly during the period as it was forced to close hotels for several months. We continued to hold this position as of the end of the period, as we believe that, while the severity of the downturn is unprecedented for hotel operators, Whitbread should be in an improved competitive position now that it has strengthened its balance sheet.

The market dislocation in the spring gave us the opportunity to build new positions in a number of consumer companies, including chocolate company Lindt, as well as add to some cyclically exposed areas where we believed the market was underestimating the forward earnings picture such as energy company, Equinor.

Derivatives were not used in the Fund during the period.

What is the outlook as of the end of the period?

Looking forward, the large fiscal and monetary support programs globally continue to support an economic recovery phase. We believe any possible second wave of the coronavirus is likely to be less economically disruptive. In our view, governments around the world are now better prepared and likely to take pre-emptive measures to avoid a second lockdown. Test and trace systems are now up and running in many parts of the world, and there is greater optimism that an effective vaccine can be developed.

However, we believe that there have been permanent changes in the way people will work, consume, and socialize. This may mean that some industries and companies will build back faster while others will never recover. One example of this is the positive experience of working flexibly that so many companies and employees have had. We expect this to have major impacts in terms of where people choose to live and how much they invest in their homes as a place of work as well as shelter.

Many governments have also discovered a clear alignment between the need for investment programs to stimulate growth and their ambition to accelerate the transition away from fossil fuels. The European Union (EU), in particular, has focused its recovery plan on renewable energy, upgrading building stock, and accelerating the transition to electric vehicles. We have attempted to position the Fund’s portfolio for these trends.

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 and economic developments. These risks may be greater for investments in emerging markets or if the Fund focuses in a particular geographic region or country. Small- and mid-cap securities can have greater risks and volatility than large-cap securities. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.

 

 

 

  15  

 


Hartford Schroders International Stock Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     5.3

Consumer Discretionary

     19.3  

Consumer Staples

     7.1  

Energy

     3.0  

Financials

     13.1  

Health Care

     10.9  

Industrials

     15.7  

Information Technology

     16.3  

Materials

     1.2  

Real Estate

     1.5  

Utilities

     3.6  
  

 

 

 

Total

     97.0
  

 

 

 

Short-Term Investments

     2.5  

Other Assets & Liabilities

     0.5  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1)

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

    

 

 

 

  16  

 


Hartford Schroders Securitized Income Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 02/28/2019

Sub-advised by Schroder Investment Management North America Inc.

  Investment objective – The Fund seeks to provide current income and long-term total return consistent with preservation of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      Since
Inception1
 

Class A2

     -0.41%        0.97%  

Class A3

     -3.38%        -0.86%  

Class C2

     -1.06%        0.57%  

Class C4

     -2.03%        0.57%  

Class I2

     -0.32%        1.05%  

Class Y2

     -0.36%        1.05%  

Class F2

     -0.24%        1.08%  

Class SDR2

     -0.40%        1.06%  

ICE BofA US ABS & CMBS Index

     3.72%        5.32%  

S&P/LSTA Leveraged Loan Index

     1.72%        2.26%  

 

1

Inception: 02/28/2019

2 

Without sales charge

3 

Reflects maximum sales charge of 3.00%

4 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Class C shares commenced operations on 02/28/2020 and performance prior to this date reflects Class A shares (excluding sales charges). Performance prior to an inception date of a class has not been adjusted to reflect the operating expenses of such class. If the performance were adjusted, it would have been lower.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.59%        1.30%  

Class C

     2.34%        2.15%  

Class I

     1.34%        1.05%  

Class Y

     1.32%        1.00%  

Class F

     1.27%        0.90%  

Class SDR

     1.27%        0.90%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

 

  17  

 


Hartford Schroders Securitized Income Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Hartford Schroders Securitized Income Fund’s sub-adviser is Schroder Investment Management North America Inc.

Michelle Russell-Dowe

Portfolio Manager and Head of Securitized Income

Anthony Breaks, CFA

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders Securitized Income Fund returned -0.41%, before sales charge, for the twelve-month period ended October 31, 2020, underperforming Fund’s benchmarks, the ICE BofA US ABS & CMBS Index, which returned 3.72% for the same period, and the S&P/LSTA Leveraged Loan Index, which returned 1.72% for the same period. For the same period, the Class A shares of the Fund, before sales charge, underperformed the -0.21% average return of the Lipper Loan Participation Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

Over the period, returns in the securitized credit space were close to zero. Most securitized credit does not offer much duration exposure, and thus has not directly benefited from duration. Returns in securitized credit investments were generated primarily from carry (where an investor holds a bond to maturity and generates return from the interest paid by the bond’s issuer) and spread movements. With many investors having returned to traditional fixed income investments in response to the coronavirus pandemic, securitized spread tightening has also lagged the liquidity-fueled recovery in yield spreads seen in the corporate and the municipal markets.

Over the period, the Fund increased allocations to non-U.S. mortgage-backed securities (MBS) and asset-backed securities (ABS) exposures, as we found these securities to be attractive from a carry perspective. We maintained the Fund’s exposures in Agency MBS as we believe the sector is directly supported by our investment thesis and can be used for liquidity. We continued to use reverse repurchase agreements (repo) as a liquidity tool during the period.

On a sector basis in terms of total returns, Agency commercial mortgage-backed securities (CMBS) had the largest contribution to the Fund’s performance relative to the Fund’s benchmarks given the longer duration and because it is a high-quality, government sector. The Fund’s allocations in ABS and collateralized loan obligations (CLOs) also performed well. CMBS, particularly in single-asset/single-borrower (SASB), were the largest detractor from relative performance during the period, although this sector had the most notable recovery from first quarter 2020 lows. As of the end of the period, we believe mortgage insurance and single-family rental are supported by strong fundamentals and structural protections. As of the end of the period, the securitized space has generally recovered from heightened spread widening in March 2020, but some sectors have lagged the recovery in the government-supported corporate market.

Currency futures and forwards were used within the Fund during the period for hedging against currency fluctuations on non-U.S.-dollar bonds; these derivatives did not have a material impact on the Fund’s performance.

What is the outlook as of the end of the period?

With direct buying programs available in the corporate markets, yield spreads have tightened and corporate debt issuance has been high in the corporate sector. Combined with low Treasury yields, the landscape for fixed income has dramatically changed. We believe that traditional sources of return, such as duration and roll-down, are unlikely to generate return in traditional fixed income. With low rates and yield spreads once again tighter, we believe that much of the possible returns from duration and spread tightening—in sectors with aggressive issuance and buying—have been realized. In a very low yield environment, moral hazard and risk taking incentives are high in our view.

Securitized sectors such as AAA-rated auto and credit cards have recovered, but we believe there are still recovery opportunities and credit opportunities within the securitized space, such as non-agency MBS, non-U.S. MBS, equipment ABS, and single-family rental ABS that remain a near-term opportunity. As we believe that potential sources of return should continue to come from carry products, we remain focused on housing as of the end of the period. As of the end of the period, mortgage insurance credit risk transfers continue to be an allocation focus, and we have added corporate financial debt from these issuers. Additionally, there are longer-term opportunities that we believe are likely to offer upside as the market evolves, including in CMBS and collateralized loan obligations (CLOs), and as of the end of the period, we view these sectors as viable opportunity-sets in the near term.

We continue to await a fiscal package in the U.S., and we expect that there will be fiscal support. Lower-income U.S. consumers are in a fragile position. In our opinion, many of these consumers have benefited from employment support through direct payments or paid furloughs, and these programs have been necessary to the recovery in consumer spending. While we believe this support is likely, for as long as it takes to have an immunized population, there will almost certainly be fall-out. We do not believe the employment levels prior to the coronavirus pandemic will be fully recovered in the near term. For the sectors sensitive to the lower-income consumer, we believe more uncertainty may be priced in. We believe that commercial real estate, including hotels, retail properties and airlines, and securities with a higher degree of leverage or credit exposure, may be structurally impacted.

We do think, over the next six to twelve months, we will see an influx of information as forbearance periods end and resolutions resume in the real estate markets, and as federal programs normalize.

We anticipate continued volatility in the near term, which we believe may create additional opportunities, and it is our belief that remaining flexible is important to capturing new and current opportunities.

 

 

 

  18  

 


Hartford Schroders Securitized Income Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

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. Fixed income security risks include credit, liquidity, call, duration, event and interest-rate risk. As interest rates rise, bond prices generally fall. The risks associated with mortgage-related and asset-backed securities as well as collateralized loan obligations (CLOs) include credit, interest-rate, prepayment, liquidity, default and extension risk. 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 and economic developments. 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, and counterparty risk. 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. Restricted securities may be more difficult to sell and price than other securities. The purchase of securities in the To-Be-Announced (TBA) market can result in additional price and counterparty risk. The Fund may use repurchase agreements, or reverse repurchase agreements, which can increase risk and volatility. Use of leverage can increase market exposure, magnify investment risks, and cause losses to be realized more quickly. Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.

Composition by Security Type(1)

as of 10/31/2020

 

Category    Percentage of
Net Assets
 

Equity Securities

 

Common Stocks

     0.3
  

 

 

 

Total

     0.3
  

 

 

 

Fixed Income Securities

 

Asset & Commercial Mortgage-Backed Securities

     111.6

Corporate Bonds

     4.9  

U.S. Government Agencies(2)

     13.3  
  

 

 

 

Total

     129.8
  

 

 

 

Short-Term Investments

     2.3  

Other Assets & Liabilities

     (32.4
  

 

 

 

Total

     100.0
  

 

 

 

 

(1)

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

(2)

All or a portion of the securities categorized as U.S. Government Agencies were agency mortgage backed securities as of October 31, 2020.

    

 

 

 

  19  

 


Hartford Schroders Tax-Aware Bond Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 10/03/2011

Sub-advised by Schroder Investment Management North America Inc. and its sub-sub-adviser, Schroder Investment Management North America Limited

  Investment objective – The Fund seeks total return on an after-tax basis.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      Since
Inception1
 

Class A2

     4.31%        3.75%        4.70%  

Class A3

     -0.35%        2.80%        4.17%  

Class C2

     3.53%        3.14%        4.47%  

Class C4

     2.53%        3.14%        4.47%  

Class I2

     4.64%        4.02%        4.96%  

Class Y2

     4.56%        4.00%        4.95%  

Class F2

     4.67%        4.04%        4.97%  

Class SDR2

     4.68%        4.03%        4.97%  

Bloomberg Barclays Municipal Bond Index

     3.59%        3.70%        3.94%  

 

1

Inception: 10/03/2011

2 

Without sales charge

3 

Reflects maximum sales charge of 4.50%

4 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective immediately before the opening of business on 10/24/2016, the Schroder Broad Tax-Aware Value Bond Fund (the “Predecessor Fund”) was reorganized into the Fund. The performance information shown for periods prior to 10/24/2016 is that of the Predecessor

Fund and the Predecessor Fund’s predecessor. Prior to 10/24/2016, Class A and Class I were called Advisor Shares and Investor Shares, respectively. Performance for Class A shares prior to 12/30/2014 (the inception date of the Predecessor Fund’s Advisor Shares) reflects the performance of the Predecessor Fund’s Investor Shares adjusted to reflect the distribution fees of the Predecessor Fund’s Advisor Shares. Class C, Class Y and Class SDR shares commenced operations on 10/24/2016 and performance prior to this date reflects the performance of the Predecessor Fund’s Investor Shares. Class F shares commenced operations on 02/28/2017 and performance prior to that date is that of the Fund’s Class I shares. The returns would be different if the Fund’s fees and expenses were reflected for periods prior to 10/24/2016. Performance for the Fund prior to 06/14/2013 reflects performance of the Predecessor Fund’s predecessor, which commenced operations on 10/03/2011.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     0.83%        0.71%  

Class C

     1.61%        1.59%  

Class I

     0.61%        0.49%  

Class Y

     0.64%        0.56%  

Class F

     0.53%        0.46%  

Class SDR

     0.53%        0.46%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  20  

 


Hartford Schroders Tax-Aware Bond Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Managers

Hartford Schroders Tax-Aware Bond Fund’s sub-adviser is Schroder Investment Management North America Inc. and its sub-sub-adviser is Schroder Investment Management North America Limited.

Andrew B.J. Chorlton, CFA*

Portfolio Manager

Neil G. Sutherland, CFA

Portfolio Manager

Julio C. Bonilla, CFA

Portfolio Manager

Lisa Hornby, CFA

Portfolio Manager

David May

Portfolio Manager

* Effective March 31, 2021, Mr. Chorlton will no longer serve as a portfolio manager to the Fund. From October 1, 2020 through March 31, 2021, Mr. Chorlton will transition his portfolio management responsibilities to Mr. May.

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders Tax-Aware Bond Fund returned 4.31%, before sales charge, for the twelve-month period ended October 31, 2020, outperforming the Fund’s benchmark, the Bloomberg Barclays Municipal Bond Index, which returned 3.59% for the same period. For the same period, Class A shares of the Fund, before sales charge, also outperformed the 2.72% average return of the Lipper General & Insured Municipal Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

In the first quarter of 2020, risk assets reacted violently to the severe economic implications of the coronavirus pandemic and then rallied sharply in the second quarter of 2020 on the heels of easing lockdowns and central bank support. The rally continued in the third quarter of 2020, albeit at a much lower trajectory than in the second quarter, as momentum continued in equities (the Dow Jones Industrial Average rose 7% and the S&P 500 Index rose 8%) and economic conditions showed signs of further recovery. Compared to the peak of the coronavirus pandemic earlier in the year, some economic indicators certainly appeared to point to a V-shaped recovery as businesses reopened and life began reverting to the “new normal.” The unemployment rate fell 4% in September 2020 from the peak of 13% in June 2020, and consumer spending and retail sales returned nearly to pre-pandemic levels. In the period leading up to the outbreak, spreads for assets perceived to be riskier, including both corporate and tax-exempt bonds, had generally been tightening as investors sought yield from all corners of the market.

Sector selection was the primary contributor to the Fund’s outperformance relative to the Bloomberg Barclays Municipal Bond Index, as the out-of-benchmark allocation to corporates, within both the Financials and Industrials sectors, drove excess returns as spreads were generally narrower than one year ago despite the material dislocation we

saw in March 2020. The Fund’s overweight allocations to corporates and floating-rate tax-exempts were positive contributors to relative performance. Notably, the Fund’s overweight exposure to riskier parts of the tax-exempt market, such as Federal Agency and Housing bonds, detracted from relative performance but was largely offset by the Fund’s underweight to the Transportation sector, which suffered from the collapse in mass transit due to the coronavirus pandemic.

Issue selection was a positive contributor to the Fund’s relative performance, as specific municipals outperformed the broader index returns. Federal Agency and Housing bonds were the main source of the positive issue selection, as specific issuers with stronger balance sheets held up well during the sell-off and subsequent recovery. In general, the sector saw record issuance, especially in taxable municipals, and at times valuations were heavily influenced by the prospects of additional government assistance, which as of the end of the period has yet to appear.

Yield curve impacts were the most notable detractor from the Fund’s one-year return relative to the Bloomberg Barclays Municipal Bond Index. It is important to keep in mind that the Fund is opportunistic in strategy and can differ in terms of yield curve exposure and duration, as it is not managed to a benchmark. The global nature of the sell-off in March 2020 and subsequent rally in safe-haven assets (i.e. Treasuries) meant being short in duration would be costly. Yield curve impacts were negative but not nearly enough to offset the positive impacts from sector and issue selection.

During the period, we used derivatives such as futures to manage duration within the Fund, and these derivatives were not a tactical bet on the yield curve. The use of such derivatives had no material impact on performance over the period. We consider the use of futures and other derivatives a less expensive way to achieve the Fund’s target duration.

What is the outlook as of the end of the period?

While the recovery and its trajectory relative to the peak of the coronavirus pandemic are positive, the path forward appears much more

 

 

 

  21  

 


Hartford Schroders Tax-Aware Bond Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

uncertain, however, as the implications stemming from months of lockdowns and expiring stimulus packages are becoming more apparent. In addition to announcements of material layoffs from large corporations, the pace of employment growth appears to be slowing, and there are 10 million fewer jobs now compared to pre-pandemic levels.

Looking forward, we believe there are several uncertainties that may lead to further volatility, including the U.S. election, the timing and magnitude of additional fiscal stimulus, vaccine distribution, and the re-emergence of coronavirus spread as weather cools across most of the U.S. We believe that any weakness in spreads will likely be seen as an opportunity to add risk, whereas much narrower spreads will eventually lead to tougher decisions about when to reduce risk. While short-term uncertainties remain high, we believe the recovery will continue and significant fiscal stimulus should materialize in 2021, regardless of who occupies the White House. We believe that this, combined with a continued recovery in labor markets, ongoing support from the Federal Reserve and the tailwinds from a weaker dollar and oil, should likely create a favorable dynamic for both growth and risk assets.

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. Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. The purchase of securities in the To-Be-Announced (TBA) market can result in additional price and counterparty risk. 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. Municipal securities may be adversely impacted by state/local, political, economic, or market conditions; these risks may be magnified if the Fund focuses its assets in municipal securities of issuers in a few select states. Investors may be subject to the federal Alternative Minimum Tax as well as state and local income taxes. Capital gains, if any, are taxable.  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, and counterparty risk. 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 and economic developments. The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability.

Composition by Security Type(1)

as of 10/31/2020

 

Category    Percentage of
Net Assets
 

Fixed Income Securities

  

Corporate Bonds

     12.5

Municipal Bonds

     68.8  

U.S. Government Agencies(2)

     2.8  

U.S. Government Securities

     13.7  
  

 

 

 

Total

     97.8
  

 

 

 

Short-Term Investments

     2.0  

Other Assets & Liabilities

     0.2  
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

(2) 

All or a portion of the securities categorized as U.S. Government Agencies were agency mortgage backed securities as of October 31, 2020.

 

 

 

  22  

 


Hartford Schroders US MidCap Opportunities Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 03/31/2006

Sub-advised by Schroder Investment Management North America Inc.

  Investment objective – The Fund seeks capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     -2.25%        6.95%        9.74%  

Class A2

     -7.61%        5.75%        9.12%  

Class C1

     -2.90%        6.36%        9.58%  

Class C3

     -3.87%        6.36%        9.58%  

Class I1

     -1.92%        7.24%        10.04%  

Class R31

     -2.54%        6.70%        9.76%  

Class R41

     -2.26%        6.97%        9.90%  

Class R51

     -1.96%        7.20%        10.02%  

Class Y1

     -1.99%        7.26%        10.05%  

Class F1

     -1.82%        7.32%        10.08%  

Class SDR2

     -1.88%        7.33%        10.10%  

Russell Midcap Index

     4.12%        8.95%        11.40%  

Russell 2500 Index

     2.12%        8.18%        10.60%  

 

1

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective immediately before the opening of business on 10/24/2016, the Schroder U.S. Small and Mid Cap Opportunities Fund (the “Predecessor Fund”) was reorganized into the Fund. The performance information shown for periods prior to 10/24/2016 is that of the Predecessor Fund. Prior to 10/24/2016, Class A, Class I and Class SDR were called

Advisor Shares, Investor Shares and R6 Shares, respectively. Class C, Class R3, Class R4, Class R5, and Class Y shares commenced operations on 10/24/2016 and performance prior to this date reflects the performance of the Predecessor Fund’s Investor Shares. Performance for Class SDR shares prior to 12/30/2014 (the inception date of the Predecessor Fund’s Class R6 Shares) reflects the performance of the Predecessor Fund’s Investor Shares. Class F shares commenced operations on 02/28/2017 and performance prior to that date is that of the Fund’s Class I shares. The returns would be different if the Fund’s fees and expenses were reflected for periods prior to 10/24/2016.

Performance information prior to 05/01/2019 reflects when the Fund invested at least 80% of its assets in securities of companies considered by Schroder Investment Management North America Inc. to be small- or mid-cap companies located in the United States.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.

 

Operating Expenses*    Gross      Net  

Class A

     1.21%        1.21%  

Class C

     1.96%        1.96%  

Class I

     0.94%        0.94%  

Class R3

     1.56%        1.56%  

Class R4

     1.26%        1.26%  

Class R5

     0.97%        0.97%  

Class Y

     0.96%        0.96%  

Class F

     0.85%        0.85%  

Class SDR

     0.85%        0.85%  

 

*

Expenses as shown in the Fund’s most recent prospectus. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  23  

 


Hartford Schroders US MidCap Opportunities Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Manager

Hartford Schroders US MidCap Opportunities Fund’s sub-adviser is Schroder Investment Management North America Inc.

Robert Kaynor, CFA

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders US MidCap Opportunities Fund returned -2.25%, before sales charge, for the twelve-month period ended October 31, 2020, underperforming both the Fund’s benchmark, the Russell Midcap Index, which returned 4.12% for the period, and the Fund’s secondary benchmark, the Russell 2500 Index, which returned 2.12% for the same period. For the same period, the Class A shares of the Fund, before sales charge, slightly outperformed the -2.51% average return of the Lipper Mid-Cap Core peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

U.S. mid-capitalization equities, as measured by the Russell Midcap Index, rose over the twelve-month period ended October 31, 2020 by 4.12%. This modest rise does not accurately reflect the volatility of the period. For the beginning of the period (November 1, 2019 to February 20, 2020), the index rose by around 10.0%. Then the effects of the coronavirus pandemic took hold and the economy shut down. Between February 20, 2020 and the bottom reached on March 23, 2020 (23 trading days), the Russell Midcap Index fell by 34.3%. This is one of the sharpest deepest market falls we have seen in living memory. From March 23, 2020 until June 8, 2020 (another 23 trading days), the Russell Midcap Index rose by 57.0%. That rally was more dramatic than the bear market fall in sheer magnitude. For the balance of the twelve-month period, the benchmark index was modestly positive (rising less than 1%), finishing the period with a total return of 4.12%. The Fund lagged the Russell Midcap Index during the twelve-month period.

The Fund lagged the Russell Midcap Index, primarily due to underperformance in the economic downturn, exacerbated by trailing performance in the powerful rebound. In the downturn, a significant factor in the Fund’s lag was the underperformance of the stocks we consider to be “Steady Eddies,” companies that we believe have stable growth characteristics and slower but more predictable revenues and earnings patterns. The shutdown created enormous drops in revenues. The lack of revenues was the reason they detracted from performance. Second, there were two macro factors for the shortfall: non-earners outperformed earners, and high-volatility equities outperformed low-volatility equities. This was a reversal of bear market behavior over the past 20 years for both factors. We prefer to hold companies with earnings and lower volatility.

The sectors that most significantly contributed to the lag during the twelve-month period were the Consumer Discretionary and Industrials sectors. In the Consumer Discretionary sector, the issue was stock selection. In particular, the shortfall was driven more by equities the Fund did not hold that were constituents of the Russell Midcap Index. Examples of names the Fund did not hold, which rebounded sharply include specialty retailers: Wayfair Inc. (+201.6%), Carvana Co.

(+128.6%); and Etsy (+173.3%). The common thread among these names is a dramatic increase in online sales during the shutdown.

In the Industrials sector, the lags during the period were driven by names the Fund held in the aerospace and defense industries. Hexcel (aerospace) fell by 55.0%. As of the end of the period, we continued to hold a position in the Fund because of their competitive advantage due to intellectual property relating to carbon composite materials for aircraft. Flir Systems (defense) fell by 31.6%. We added to the Fund’s position during the downturn and continued to hold it as of the end of the period. Other detractors from performance included the Basic Materials (the Fund held no gold stocks; the group rallied strongly especially in the downturn) and Utilities (lagging in conventional electricity companies) sectors.

Finally, in the Healthcare sector, the primary source of underperformance relative to the Russell Midcap Index during the period was a zero weight in biotechnology, an area in which the Fund is typically underweight due to the developmental nature of the vast majority of the companies. The biotechnology group leadership was centered on immunology companies which were in pursuit of a coronavirus vaccine.

Top contributors to the Fund’s performance relative to the Russell Midcap Index during the period included Catalent Inc. (Healthcare), West Pharmaceuticals (Healthcare) and Fortinet Inc. (Technology). Catalent provides pharmaceutical delivery systems such as gel caps for headache medicines. West Pharmaceuticals produces delivery systems for injectable drugs and healthcare products. The stock prices of Catalent and West Pharmaceuticals rose in anticipation that both Catalent and West Pharmaceuticals may participate as a delivery platform for the anticipated coronavirus vaccine(s). Fortinet is a cybersecurity company that works with enterprise, government and service provider companies. Demand for its services has been growing with the increasing number of cyber threats.

Over the period, the largest detractors from the Fund’s performance relative to the Russell Midcap Index were Sabre Corp. (Consumer Discretionary), Hexcel Corporation (Industrials), and Reinsurance Group of America. (Financials). Sabre Corp provides airline and lodging booking services for travelers. The stock fell with the steep decline in business and leisure travel. Hexcel has a proprietary process for carbon composite fibers used in aircraft fuselages and wings. The stock has been negatively affected by the collapse in air travel. Reinsurance Group of America slumped on concerns about heightened mortality risk as a result of the coronavirus pandemic.

Derivatives were not used in the Fund during the period and therefore did not impact performance during the period.

We invest the Fund’s assets in a combination of stock types that can be classified into the following three categories: “Steady Eddies” (companies with recurring earnings/cash flow/revenue characteristics),

 

 

 

  24  

 


Hartford Schroders US MidCap Opportunities Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

“Turnarounds” (companies that have experienced business or operational difficulties but may potentially have a catalyst to help them return to a growth path), and “Mispriced Growth” (companies with unrecognized or under-appreciated growth dynamics will be rewarded over time). Our “Mispriced Growth” category modestly outperformed for the period. Both the “Steady Eddies” and “Turnarounds” categories lagged during the period.

What is the outlook as of the end of the period?

As of the end of the period, we are encouraged that there are signs that the dominance of large cap over small cap may be slowing, as well as the leadership of growth over value. We believe that if both of these developments persist, they should likely benefit our investment style.

We believe that the markets are at a critical juncture, with the timing of further fiscal stimulus hanging in the balance of a contentious election cycle. The market response will likely depend on fiscal stimulus progress, greater certainty around the election outcome, and vaccine progress.

The U.S. consumer needs additional help, in our view. Unemployment is at high levels as new unemployment claims are increasing. This likely indicates that the benefits of the stimulus payments have been mostly exhausted. As of the end of the period, coronavirus infections have reached new heights as winter approaches. New restrictions on travel and gatherings are being proposed and/or enacted.

The signs of a nascent recovery are encouraging, but we are not anticipating a straight path to a return to normal. The shorter-term views are in flux and somewhat disconnected from fundamentals in the near term. Our longer term view is that we remain confident in the resilience of the American economy and its ability to adapt to a new normal. We continue to look to invest in companies with sound businesses and good long-term prospects, and we are confident that highly profitable, cash-generative companies will be rewarded as this cycle normalizes.

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. Mid-cap securities can have greater risks and volatility than large-cap securities.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Communication Services

     3.9

Consumer Discretionary

     9.6  

Consumer Staples

     3.5  

Energy

     1.0  

Financials

     12.3  

Health Care

     13.1  

Industrials

     15.0  

Information Technology

     25.0  

Materials

     4.1  

Real Estate

     4.9  

Utilities

     5.1  
  

 

 

 

Total

     97.5
  

 

 

 

Short-Term Investments

     3.6  

Other Assets & Liabilities

     (1.1
  

 

 

 

Total

     100.0
  

 

 

 

 

(1)

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  25  

 


Hartford Schroders US Small Cap Opportunities Fund

Fund Overview

October 31, 2020 (Unaudited)

 

 

 

Inception 08/06/1993

Sub-advised by Schroder Investment Management North America Inc.

  Investment objective – The Fund seeks capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes the maximum sales charge applicable to Class A shares. Returns for the Fund’s other classes will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns

for the Periods Ending 10/31/2020

 

      1 Year      5 Years      10 Years  

Class A1

     -5.02%        6.65%        8.91%  

Class A2

     -10.26%        5.45%        8.30%  

Class C1

     -5.77%        6.05%        8.76%  

Class C3

     -6.67%        6.05%        8.76%  

Class I1

     -4.78%        6.96%        9.23%  

Class R31

     -5.31%        6.51%        9.00%  

Class R41

     -5.04%        6.78%        9.14%  

Class R51

     -4.78%        6.94%        9.21%  

Class Y1

     -4.74%        6.99%        9.24%  

Class F1

     -4.68%        7.03%        9.26%  

Class SDR1

     -4.66%        7.06%        9.28%  

Russell 2000 Index

     -0.14%        7.27%        9.64%  

 

1

Without sales charge

2 

Reflects maximum sales charge of 5.50%

3 

Reflects a contingent deferred sales charge of 1.00%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The chart and table do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website hartfordfunds.com.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on 10/31/2020, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective immediately before the opening of business on 10/24/2016, the Schroder U.S. Opportunities Fund (the “Predecessor Fund”) was reorganized into the Fund. The performance information shown for periods prior to 10/24/2016 is that of the Predecessor

Fund. Prior to 10/24/2016, Class A, Class I and Class SDR were called Advisor Shares, Investor Shares and R6 Shares, respectively. Class C, Class R3, Class R4, Class R5, and Class Y shares commenced operations on 10/24/2016 and performance prior to this date reflects the performance of the Predecessor Fund’s Investor Shares. Performance for Class SDR shares prior to 09/28/2015 (the inception date of the Predecessor Fund’s Class R6 Shares) reflects the performance of the Predecessor Fund’s Investor Shares. Class F shares commenced operations on 02/28/2017 and performance prior to that date is that of the Fund’s Class I shares. The returns would be different if the Fund’s fees and expenses were reflected for periods prior to 10/24/2016.

You cannot invest directly in an index.

See “Benchmark Glossary” for benchmark descriptions.

Performance information may reflect historical or current expense waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.

 

Operating Expenses*    Gross      Net  

Class A

     1.51%        1.43%  

Class C

     2.26%        2.18%  

Class I

     1.19%        1.18%  

Class R3

     1.82%        1.73%  

Class R4

     1.52%        1.43%  

Class R5

     1.20%        1.13%  

Class Y

     1.21%        1.13%  

Class F

     1.10%        1.03%  

Class SDR

     1.10%        1.03%  

 

*

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 02/28/2021 unless the Fund’s Board of Directors approves an earlier termination. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the period ended 10/31/2020.

 

 

 

  26  

 


Hartford Schroders US Small Cap Opportunities Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Portfolio Manager

Hartford Schroders US Small Cap Opportunities Fund’s sub-adviser is Schroder Investment Management North America Inc.

Robert Kaynor, CFA

Portfolio Manager

 

 

 

Manager Discussion

How did the Fund perform during the period?

The Class A shares of the Hartford Schroders US Small Cap Opportunities Fund returned -5.02%, before sales charge, for the twelve-month period ended October 31, 2020, underperforming the Fund’s benchmark, the Russell 2000 Index, which returned -0.14% for the same period. For the same period, the Class A shares of the Fund, before sales charge, also outperformed the -6.84% average return of the Lipper Small-Cap Core peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

U.S. small-capitalization equities, as measured by the Russell 2000 Index, returned -0.14% over the twelve-month period ended October 31, 2020. This modest decline does not accurately reflect the volatility of the period. For the beginning of the period (November 1, 2019 to February 20, 2020) the Russell 2000 Index rose by over 9%. Then the effects of the coronavirus pandemic took hold as the U.S. economy shut down. Between February 20, 2020 and the bottom that occurred on March 18, 2020, the Russell 2000 Index fell by 41.5%. This is one of the sharpest deepest market falls we have seen in living memory. From March 18, 2020 until June 8, 2020, the benchmark rose by 55.6%. That rally was perhaps more dramatic than the bear market fall. From June 8, 2020 to October 31, 2020, the Russell 2000 Index was modestly positive (rising less than 1%), finishing the twelve-month period with a total return of -0.14%. The Fund lagged the benchmark during the twelve month period.

The Fund lagged the benchmark, primarily due to underperformance in the economic downturn exacerbated by trailing performance in the powerful rebound. In the downturn, the Fund did not have its typical defensive positioning. A significant fundamental factor in the Fund’s lag was the underperformance of the stocks we consider to be “Steady Eddies,” companies that we believe have stable growth characteristics and slower but more predictable revenues and earnings patterns. The shutdown due to the pandemic created enormous drops in revenues. The lack of revenues detracted from performance. Second, there were two macro factors for the shortfall: non-earners outperformed earners, and high-volatility equities outperformed low-volatility equities. This was a reversal of bear market behavior over the past 20 years for both factors.

Over the period, the sectors with the most significant contribution to the Fund’s underperformance relative to the Russell 2000 Index were the Consumer Discretionary and Healthcare sectors. In the Consumer Discretionary sector, the issue was stock selection. In particular the shortfall was driven more by equities we did not hold in the Fund. The Fund’s largest lag was in the casinos and gambling industry. We did not hold Churchill Downs Inc., (+15.25%) and Penn National Gaming Inc. (+153.25%), each of which were constituents of the Russell 2000 Index. The Fund’s holdings in Red Rock Resorts (-10.78%) and Play AGS (-76.6%) were detractors from performance. We began selling Play AGS on March 17, 2020 and fully exited the position in the ensuing days. We

reduced the Fund’s position in Red Rocks but continue to hold it in the Fund as of the end of the period. We also lagged in Specialty Retailers, a group that rose by 21.8% for the year. Another major detractor was Hudson Ltd., the airport retailer. We sold this position during the downturn due to the evaporation of travel. We began exiting on February 28, 2020 and fully liquidated the Fund’s holdings by March 18, 2020. The stock was down 69.2% by March 18, 2020.

In the Healthcare sector, the primary source of underperformance relative to the Russell 2000 Index was in biotechnology, which is an area in which the Fund is typically underweight due to the developmental nature of the vast majority of the companies. The biotechnology group leadership was centered on immunology companies which were forming relationships with pharmaceutical companies in pursuit of a coronavirus vaccine.

The Technology, Consumer Staples and Financials sectors were positive contributors to relative performance for the period. There were also positive contributions from the Real Estate, Energy, and Telecommunications sectors. Stock selection was the source of the outperformance in all of these sectors. Noteworthy contributions in the Technology sector were in consumer digital services (LiveRamp), production technology equipment (Entegris, Inc.) and semiconductors (ON Semiconductor). In the Consumer Staples sector, food products (Darling Ingredients) and food retailers and wholesalers (Performance Food Group) contributed positively to performance. In the Financials sector, property and casualty insurance (Palomar Holdings) and banks (Lakeland Financial) contributed positively to the Fund’s performance.

Top contributors to the Fund’s performance relative to the Russell 2000 Index during the period included Catalent Inc. (Health Care), Darling Ingredients (Consumer Staples), and Entegris, Inc. (Technology). Catalent provides pharmaceutical delivery systems such as gel caps for headache medicines. Darling Ingredients is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients. Entegris manufactures and supplies microcontamination control products and specialty chemicals used in semiconductor and other high-technology industries.

The largest detractors from the Fund’s performance relative to the Russell 2000 Index over the period were PlayAGS, Inc. (Consumer Discretionary), Hexcel Corporation (Industrials), and Kar Auction Services (Consumer Discretionary). PlayAGS designs and manufactures electronic gaming machines and reported a significant miss in their quarterly earnings report. Management of the company identified softness in their Oklahoma casinos as the source of the underperformance. Hexcel has a proprietary process for carbon composite fibers used in aircraft fuselages and wings. The stock has been negatively affected by the collapse in air travel. KAR Auction Services provides whole car auction services in North America primarily for used vehicles.

 

 

 

  27  

 


Hartford Schroders US Small Cap Opportunities Fund

Fund Overview – (continued)

October 31, 2020 (Unaudited)

 

 

 

Derivatives were not used in the Fund during the period and therefore did not impact performance during the period.

During the period, we invested the Fund’s assets in a combination of stock types, which included stocks that we categorize as follows: “Steady Eddies” (companies that we believe have stable growth characteristics and slower but more predictable revenues and earnings patterns), “Turnarounds” (companies that we believe have experienced business or operational difficulties but may potentially have a catalyst to help them return to a growth path), and “Mispriced Growth” (companies that we believe have unrecognized or under-appreciated growth dynamics that should be rewarded over time). As noted above, the “Steady Eddies” in the Fund lagged during the downturn and as a result, lagged the Russell 2000 Index for the full twelve-month period. The “Turnarounds” category of stocks lagged the Russell 2000 Index for the full twelve-month period. The “Mispriced Growth” category of stocks was the only group to outperform the Russell 2000 Index for the period.

What is the outlook as of the end of the period?

As of the end of the period, we are encouraged that there are signs that the dominance of large cap over small cap may be slowing, as well as the leadership of growth over value. We believe that if both of these developments persist, they should likely benefit our investment style.

We believe that the markets are at a critical juncture, with the timing of further fiscal stimulus hanging in the balance of a contentious election cycle. The market response will likely depend on fiscal stimulus progress, greater certainty around the election outcome, and vaccine progress.

The U.S. consumer needs additional help, in our view. Unemployment is at high levels as new unemployment claims are increasing. This likely indicates that the benefits of the stimulus payments have been mostly exhausted. As of the end of the period, coronavirus infections have reached new heights as winter approaches. New restrictions on travel and gatherings are being proposed and/or enacted.

The signs of a nascent recovery are encouraging, but we are not anticipating a straight path to a return to normal. The shorter-term views are in flux and somewhat disconnected from fundamentals in the near term. Our longer term view is that we remain confident in the resilience of the American economy and its ability to adapt to a new normal. We continue to look to invest in companies with sound businesses and good long-term prospects, and we are confident that highly profitable, cash-generative companies will be rewarded as this cycle normalizes.

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. Small-cap securities can have greater risks and volatility than large-cap securities.

Composition by Sector(1)

as of 10/31/2020

 

Sector    Percentage of
Net Assets
 

Equity Securities

 

Communication Services

     1.8

Consumer Discretionary

     11.0  

Consumer Staples

     4.2  

Energy

     1.1  

Financials

     17.6  

Health Care

     13.6  

Industrials

     15.3  

Information Technology

     16.9  

Materials

     8.7  

Real Estate

     3.2  

Utilities

     2.5  
  

 

 

 

Total

     95.9
  

 

 

 

Short-Term Investments

     4.9  

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

 

(1) 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.

 

 

 

  28  

 


Hartford Schroders Funds

Benchmark Glossary (Unaudited)

 

 

 

Bloomberg Barclays Municipal Bond Index (reflects no deduction for fees, expenses or taxes) is designed to cover the USD-denominated long-term tax exempt bond market.

ICE BofA US ABS & CMBS Index (reflects no deduction for fees, expenses or taxes) tracks the performance of US dollar denominated investment grade fixed and floating rate asset backed securities and fixed rate commercial mortgage backed securities publicly issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch), at least one year remaining term to final stated maturity and at least one month to the last expected cash flow. 144a securities qualify for inclusion in the Index. Callable perpetual securities qualify provided they are at least one year from the first call date. Inverse floating rate, interest only and principal only tranches of qualifying deals are excluded from the Index as are all tranches of re-securitized deals.

JP Morgan CEMBI Broad Diversified Index (reflects no deduction for fees, expenses or taxes) tracks total returns of U.S. dollar denominated debt instruments issued by corporate entities in Emerging Markets countries.

JP Morgan EMBI Global Diversified Index (reflects no deduction for fees, expenses or taxes) is a uniquely weighted index that tracks total returns for U.S. dollar denominated Brady bonds, Eurobonds, traded loans and local market debt instruments issued by sovereign and quasi-sovereign entities.

JP Morgan Emerging Markets Blended Index (JEMB) — Equal Weighted (reflects no deduction for fees, expenses or taxes) is a blended index produced by JP Morgan that is comprised of 1/3 JP Morgan GBI Emerging Markets Global Diversified Index, 1/3 JP Morgan EMBI Global Diversified Index, and 1/3 JP Morgan CEMBI Broad Diversified Index. The JEMB — Equal Weighted is designed to blend U.S. dollar and local currency denominated sovereign, quasi-sovereign and corporate bonds in equal proportion.

JP Morgan GBI Emerging Markets Global Diversified Index (reflects no deduction for fees, expenses or taxes) is a comprehensive global local emerging markets index that consists of regularly traded, liquid fixed-rate, domestic-currency government bonds to which international investors can gain exposure.

MSCI All Country World (ACWI) ex USA Index (Net) (reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) is designed to capture large and mid cap representation across developed markets (excluding the United States) and emerging market countries.

MSCI All Country World (ACWI) ex USA Value Index (Net) (reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) is designed to capture large and mid cap securities exhibiting overall value style characteristics across developed (excluding the U.S.) and emerging market countries. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.

MSCI China A Onshore Index (Net) (reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) is designed to capture large and mid-cap representation across China securities listed on the Shanghai and Shenzhen exchanges. The index covers only those securities that are accessible through “Stock Connect”.

MSCI Emerging Markets Index (Net) (reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) is designed to capture large and mid cap representation across emerging market countries.

Russell 2000 Index (reflects no deduction for fees, expenses or taxes) is an index comprised of 2,000 of the smallest U.S.-domiciled company common stocks based on a combination of their market capitalization and current index membership.

Russell 2500 Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000 Index that is designed to measure the performance of the 2,500 smallest U.S. companies based on a combination of their market capitalization and current index membership.

Russell Midcap Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.

S&P/LSTA Leveraged Loan Index (reflects no deduction for fees, expenses or taxes) is a market-value-weighted index that is designed to measure the performance of the U.S. leveraged loan market based upon market weightings, spreads and interest payments.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

 

 

 

  29  

 


Hartford Schroders Funds

Expense Examples (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period of May 1, 2020 through October 31, 2020. To the extent a Fund was subject to acquired fund fees and expenses during the period, acquired fund fees and expenses are not included in the annualized expense ratios below.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the line under the heading entitled “Expenses Paid During The Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (front-end sales loads and CDSC). Therefore, the second set of columns of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher. Expenses for a class of a Fund are equal to the class’ annualized expense ratio multiplied by average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

 

     Actual Return      Hypothetical (5% return before expenses)  
      Beginning
Account Value
May 1, 2020
     Ending
Account Value
October 31, 2020
     Expenses paid
during the period
May 1, 2020
through
October 31, 2020
     Beginning
Account Value
May 1, 2020
     Ending
Account Value
October 31, 2020
     Expenses paid
during the period
May 1, 2020
through
October 31, 2020
     Annualized
expense
ratio
 

Hartford Schroders China A Fund

                    

Class A

   $     1,000.00      $     1,394.40      $ 7.70      $     1,000.00      $     1,018.70      $ 6.50        1.28

Class C

   $ 1,000.00      $ 1,387.00      $     13.32      $ 1,000.00      $ 1,013.98      $     11.24        2.22

Class I

   $ 1,000.00      $ 1,396.30      $ 6.93      $ 1,000.00      $ 1,019.36      $ 5.84        1.15

Class Y

   $ 1,000.00      $ 1,395.00      $ 6.56      $ 1,000.00      $ 1,019.66      $ 5.53        1.09

Class F

   $ 1,000.00      $ 1,395.90      $ 5.96      $ 1,000.00      $ 1,020.16      $ 5.03        0.99

Class SDR

   $ 1,000.00      $ 1,395.90      $ 5.96      $ 1,000.00      $ 1,020.16      $ 5.03        0.99

Hartford Schroders Emerging Markets Equity Fund

 

                 

Class A

   $ 1,000.00      $ 1,249.60      $ 9.05      $ 1,000.00      $ 1,017.09      $ 8.11        1.60

Class C

   $ 1,000.00      $ 1,245.80      $ 12.19      $ 1,000.00      $ 1,014.28      $ 10.94        2.16

Class I

   $ 1,000.00      $ 1,251.50      $ 7.24      $ 1,000.00      $ 1,018.70      $ 6.50        1.28

Class R3

   $ 1,000.00      $ 1,248.90      $ 9.78      $ 1,000.00      $ 1,016.44      $ 8.77        1.73

Class R4

   $ 1,000.00      $ 1,250.20      $ 8.09      $ 1,000.00      $ 1,017.95      $ 7.25        1.43

Class R5

   $ 1,000.00      $ 1,251.50      $ 6.90      $ 1,000.00      $ 1,019.00      $ 6.19        1.22

Class Y

   $ 1,000.00      $ 1,252.70      $ 6.74      $ 1,000.00      $ 1,019.15      $ 6.04        1.19

Class F

   $ 1,000.00      $ 1,252.90      $ 6.17      $ 1,000.00      $ 1,019.66      $ 5.53        1.09

Class SDR

   $ 1,000.00      $ 1,252.40      $ 6.17      $ 1,000.00      $ 1,019.66      $ 5.53        1.09

Hartford Schroders Emerging Markets Multi-Sector Bond Fund

 

              

Class A

   $ 1,000.00      $ 1,151.90      $ 6.22      $ 1,000.00      $ 1,019.36      $ 5.84        1.15

Class C

   $ 1,000.00      $ 1,148.10      $ 10.26      $ 1,000.00      $ 1,015.59      $ 9.63        1.90

Class I

   $ 1,000.00      $ 1,154.20      $ 4.33      $ 1,000.00      $ 1,021.12      $ 4.06        0.80

Class R3

   $ 1,000.00      $ 1,150.90      $ 7.19      $ 1,000.00      $ 1,018.45      $ 6.75        1.33

Class R4

   $ 1,000.00      $ 1,154.80      $ 4.71      $ 1,000.00      $ 1,020.76      $ 4.42        0.87

Class R5

   $ 1,000.00      $ 1,154.00      $ 4.60      $ 1,000.00      $ 1,020.86      $ 4.32        0.85

Class Y

   $ 1,000.00      $ 1,154.60      $ 4.06      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

Class F

   $ 1,000.00      $ 1,152.30      $ 5.03      $ 1,000.00      $ 1,020.46      $ 4.72        0.93

Class SDR

   $ 1,000.00      $ 1,154.60      $ 4.06      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

 

 

  30  

 


Hartford Schroders Funds

Expense Examples (Unaudited) – (continued)

 

 

 

     Actual Return      Hypothetical (5% return before expenses)  
      Beginning
Account Value
May 1, 2020
     Ending
Account Value
October 31, 2020
     Expenses paid
during the period
May 1, 2020
through
October 31, 2020
     Beginning
Account Value
May 1, 2020
     Ending
Account Value
October 31, 2020
     Expenses paid
during the period
May 1, 2020
through
October 31, 2020
     Annualized
expense
ratio
 

Hartford Schroders International Multi-Cap Value Fund

 

              

Class A

   $     1,000.00      $     1,064.80      $ 5.86      $     1,000.00      $     1,019.46      $ 5.74        1.13

Class C

   $ 1,000.00      $ 1,061.30      $ 9.59      $ 1,000.00      $ 1,015.84      $ 9.37        1.85

Class I

   $ 1,000.00      $ 1,066.40      $ 4.42      $ 1,000.00      $ 1,020.86      $ 4.32        0.85

Class R3

   $ 1,000.00      $ 1,063.30      $ 7.73      $ 1,000.00      $ 1,017.65      $ 7.56        1.49

Class R4

   $ 1,000.00      $ 1,064.90      $ 6.18      $ 1,000.00      $ 1,019.15      $ 6.04        1.19

Class R5

   $ 1,000.00      $ 1,066.30      $ 4.57      $ 1,000.00      $ 1,020.71      $ 4.47        0.88

Class Y

   $ 1,000.00      $ 1,066.60      $ 4.26      $ 1,000.00      $ 1,021.01      $ 4.17        0.82

Class F

   $ 1,000.00      $ 1,068.30      $ 3.95      $ 1,000.00      $ 1,021.32      $ 3.86        0.76

Class SDR

   $ 1,000.00      $ 1,065.60      $ 4.00      $ 1,000.00      $ 1,021.27      $ 3.91        0.77

Hartford Schroders International Stock Fund

 

                 

Class A

   $ 1,000.00      $ 1,201.40      $ 6.20      $ 1,000.00      $ 1,019.51      $ 5.69        1.12

Class C

   $ 1,000.00      $ 1,197.00      $ 10.16      $ 1,000.00      $ 1,015.89      $ 9.32        1.84

Class I

   $ 1,000.00      $ 1,202.60      $ 4.60      $ 1,000.00      $ 1,020.96      $ 4.22        0.83

Class R3

   $ 1,000.00      $ 1,199.80      $ 8.13      $ 1,000.00      $ 1,017.75      $ 7.46        1.47

Class R4

   $ 1,000.00      $ 1,201.20      $ 6.42      $ 1,000.00      $ 1,019.31      $ 5.89        1.16

Class R5

   $ 1,000.00      $ 1,202.50      $ 4.71      $ 1,000.00      $ 1,020.86      $ 4.32        0.85

Class Y

   $ 1,000.00      $ 1,203.80      $ 4.60      $ 1,000.00      $ 1,020.96      $ 4.22        0.83

Class F

   $ 1,000.00      $ 1,204.20      $ 4.16      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

Class SDR

   $ 1,000.00      $ 1,203.30      $ 4.15      $ 1,000.00      $ 1,021.37      $ 3.81        0.75

Hartford Schroders Securitized Income Fund(1)

 

                 

Class A

   $ 1,000.00      $ 1,073.80      $ 5.58      $ 1,000.00      $ 1,019.76      $ 5.43        1.07

Class C

   $ 1,000.00      $ 1,067.60      $ 11.86      $ 1,000.00      $ 1,016.59      $ 8.62        1.70

Class I

   $ 1,000.00      $ 1,075.00      $ 5.53      $ 1,000.00      $ 1,019.81      $ 5.38        1.06

Class Y

   $ 1,000.00      $ 1,074.30      $ 5.27      $ 1,000.00      $ 1,020.06      $ 5.13        1.01

Class F

   $ 1,000.00      $ 1,074.60      $ 5.37      $ 1,000.00      $ 1,019.96      $ 5.23        1.03

Class SDR

   $ 1,000.00      $ 1,073.40      $ 5.99      $ 1,000.00      $ 1,019.36      $ 5.84        1.15

Hartford Schroders Tax-Aware Bond Fund

 

                 

Class A

   $ 1,000.00      $ 1,035.00      $ 3.63      $ 1,000.00      $ 1,021.57      $ 3.61        0.71

Class C

   $ 1,000.00      $ 1,030.90      $ 7.96      $ 1,000.00      $ 1,017.29      $ 7.91        1.56

Class I

   $ 1,000.00      $ 1,036.20      $ 2.51      $ 1,000.00      $ 1,022.67      $ 2.49        0.49

Class Y

   $ 1,000.00      $ 1,035.80      $ 2.87      $ 1,000.00      $ 1,022.32      $ 2.85        0.56

Class F

   $ 1,000.00      $ 1,036.40      $ 2.35      $ 1,000.00      $ 1,022.82      $ 2.34        0.46

Class SDR

   $ 1,000.00      $ 1,036.40      $ 2.35      $ 1,000.00      $ 1,022.82      $ 2.34        0.46

Hartford Schroders US MidCap Opportunities Fund

 

                 

Class A

   $ 1,000.00      $ 1,121.60      $ 6.29      $ 1,000.00      $ 1,019.20      $ 5.99        1.18

Class C

   $ 1,000.00      $ 1,118.10      $ 10.22      $ 1,000.00      $ 1,015.48      $ 9.73        1.92

Class I

   $ 1,000.00      $ 1,123.50      $ 4.80      $ 1,000.00      $ 1,020.61      $ 4.57        0.90

Class R3

   $ 1,000.00      $ 1,120.10      $ 8.15      $ 1,000.00      $ 1,017.45      $ 7.76        1.53

Class R4

   $ 1,000.00      $ 1,122.00      $ 6.67      $ 1,000.00      $ 1,018.85      $ 6.34        1.25

Class R5

   $ 1,000.00      $ 1,123.00      $ 5.02      $ 1,000.00      $ 1,020.41      $ 4.77        0.94

Class Y

   $ 1,000.00      $ 1,122.90      $ 4.91      $ 1,000.00      $ 1,020.51      $ 4.67        0.92

Class F

   $ 1,000.00      $ 1,124.30      $ 4.38      $ 1,000.00      $ 1,021.01      $ 4.17        0.82

Class SDR

   $ 1,000.00      $ 1,123.20      $ 4.38      $ 1,000.00      $ 1,021.01      $ 4.17        0.82

Hartford Schroders US Small Cap Opportunities Fund

 

              

Class A

   $ 1,000.00      $ 1,164.70      $ 7.35      $ 1,000.00      $ 1,018.35      $ 6.85        1.35

Class C

   $ 1,000.00      $ 1,160.20      $     11.40      $ 1,000.00      $ 1,014.58      $     10.63        2.10

Class I

   $ 1,000.00      $ 1,166.00      $ 5.83      $ 1,000.00      $ 1,019.76      $ 5.43        1.07

Class R3

   $ 1,000.00      $ 1,162.50      $ 9.19      $ 1,000.00      $ 1,016.64      $ 8.57        1.69

Class R4

   $ 1,000.00      $ 1,164.50      $ 7.45      $ 1,000.00      $ 1,018.25      $ 6.95        1.37

Class R5

   $ 1,000.00      $ 1,165.60      $ 5.77      $ 1,000.00      $ 1,019.81      $ 5.38        1.06

Class Y

   $ 1,000.00      $ 1,166.40      $ 5.72      $ 1,000.00      $ 1,019.86      $ 5.33        1.05

Class F

   $ 1,000.00      $ 1,166.70      $ 5.17      $ 1,000.00      $ 1,020.36      $ 4.82        0.95

Class SDR

   $ 1,000.00      $ 1,166.50      $ 5.17      $ 1,000.00      $ 1,020.36      $ 4.82        0.95

 

(1) 

Expenses include interest expenses and the impact of certain non-contractual waivers. Please see the fee table in the current prospectus for purposes of evaluating the expenses of each share class.

 

 

  31  

 


Hartford Schroders China A Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 92.6%  
      Automobiles & Components - 1.5%  
  25,800    

Huayu Automotive Systems Co., Ltd. Class A

  $ 120,018  
   

 

 

 
      Banks - 5.3%  
  39,500    

China Merchants Bank Co., Ltd. Class A

    235,059  
  66,900    

Industrial Bank Co., Ltd. Class A

    177,979  
   

 

 

 
      413,038  
   

 

 

 
      Capital Goods - 15.0%  
  21,497    

Eve Energy Co., Ltd. Class A

    171,417  
  31,600    

Hongfa Technology Co., Ltd. Class A

    243,200  
  11,308    

Jiangsu Hengli Hydraulic Co., Ltd. Class A

    128,011  
  13,700    

Shenzhen Inovance Technology Co., Ltd. Class A

    131,702  
  45,800    

Suzhou Gold Mantis Construction Decoration Co., Ltd. Class A

    67,627  
  46,300    

Weichai Power Co., Ltd. Class A

    104,778  
  181,100    

XCMG Construction Machinery Co., Ltd. Class A

    145,248  
  48,800    

Zhejiang Sanhua Intelligent Controls Co., Ltd. Class A

    178,840  
   

 

 

 
      1,170,823  
   

 

 

 
      Consumer Durables & Apparel - 10.5%  
  9,700    

Huizhou Desay Sv Automotive Co., Ltd. Class A

    98,847  
  28,100    

Midea Group Co., Ltd. Class A

    327,933  
  50,700    

NavInfo Co., Ltd. Class A

    107,786  
  15,591    

Oppein Home Group, Inc. Class A

    286,669  
   

 

 

 
      821,235  
   

 

 

 
      Diversified Financials - 1.6%  
  6,200    

Hithink RoyalFlush Information Network Co., Ltd. Class A

    125,453  
   

 

 

 
      Food, Beverage & Tobacco - 6.4%  
  28,208    

Anhui Kouzi Distillery Co., Ltd. Class A

    231,205  
  22,400    

Chacha Food Co., Ltd. Class A

    199,040  
  2,980    

Foshan Haitian Flavouring & Food Co., Ltd. Class A

    71,322  
   

 

 

 
      501,567  
   

 

 

 
      Health Care Equipment & Services - 2.3%  
  37,900    

Shanghai Kinetic Medical Co., Ltd. Class A

    107,247  
  26,000    

Winning Health Technology Group Co., Ltd. Class A

    69,192  
   

 

 

 
      176,439  
   

 

 

 
      Household & Personal Products - 1.4%  
  23,800    

Opple Lighting Co., Ltd. Class A

    106,615  
   

 

 

 
      Insurance - 7.6%  
  51,400    

Ping An Insurance Group Co., of China Ltd. Class A

    598,172  
   

 

 

 
      Materials - 13.7%  
  79,500    

China Jushi Co., Ltd. Class A

    165,992  
  58,364    

Chongqing Zaisheng Technology Co., Ltd. Class A

    134,032  
  29,300    

Citic Pacific Special Steel Group Co., Ltd. Class A

    70,718  
  33,180    

Hengli Petrochemical Co., Ltd. Class A

    95,821  
  46,200    

Lomon Billions Group Co., Ltd. Class A

    171,104  
  34,900    

Shandong Sinocera Functional Material Co., Ltd. Class A

    214,362  
  5,660    

Skshu Paint Co., Ltd. Class A

    125,434  
  8,200    

Wanhua Chemical Group Co., Ltd. Class A

    96,398  
   

 

 

 
      1,073,861  
   

 

 

 
      Media & Entertainment - 1.7%  
  12,100    

Mango Excellent Media Co., Ltd. Class A

    134,294  
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 4.1%  
  5,880    

Jiangsu Hengrui Medicine Co., Ltd. Class A

    78,207  
  22,889    

Livzon Pharmaceutical Group, Inc. Class A

    165,712  
  4,800    

WuXi AppTec Co., Ltd. Class A

    81,086  
   

 

 

 
      325,005  
   

 

 

 
      Real Estate - 2.9%  
  21,500    

China Merchants Shekou Industrial Zone Holdings Co., Ltd. Class A

    45,257  
  13,800    

China Vanke Co., Ltd. Class A

    56,907  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 92.6% - (continued)  
      Real Estate - 2.9% - (continued)  
  52,900    

Poly Developments and Holdings Group Co., Ltd. Class A

  $ 121,612  
   

 

 

 
      223,776  
   

 

 

 
      Software & Services - 2.4%  
  16,600    

Beijing Sinnet Technology Co., Ltd. Class A

    47,429  
  14,500    

Venustech Group, Inc. Class A

    67,080  
  7,700    

Wondershare Technology Group Co., Ltd. Class A

    72,380  
   

 

 

 
      186,889  
   

 

 

 
      Technology Hardware & Equipment - 14.4%  
  5,300    

Guangzhou Shiyuan Electronic Technology Co., Ltd. Class A

    81,470  
  5,000    

Quectel Wireless Solutions Co., Ltd. Class A

    136,923  
  39,100    

Shengyi Technology Co., Ltd. Class A

    140,086  
  31,100    

Shenzhen Sunlord Electronics Co., Ltd. Class A

    120,064  
  30,380    

Unisplendour Corp. Ltd. Class A

    100,014  
  6,450    

Wuhan Raycus Fiber Laser Technologies Co., Ltd. Class A

    72,167  
  39,500    

WUS Printed Circuit Kunshan Co., Ltd. Class A

    108,962  
  19,800    

Wuxi Lead Intelligent Equipment Co., Ltd. Class A

    177,691  
  14,100    

Xiamen Faratronic Co., Ltd. Class A

    189,189  
   

 

 

 
      1,126,566  
   

 

 

 
      Transportation - 1.0%  
  6,300    

SF Holding Co., Ltd. Class A

    78,037  
   

 

 

 
      Utilities - 0.8%  
  55,100    

Shenzhen Gas Corp. Ltd. Class A

    60,647  
   

 

 

 
 

Total Common Stocks
(cost $5,643,446)

  $ 7,242,435  
   

 

 

 
WARRANTS - 7.8%  
      Consumer Durables & Apparel - 3.6%  
  1,413    

Beijing Roborock Technology Co., Ltd.*

  $ 171,414  
  7,700    

Qingdao Richen Food Co., Ltd.*

    77,808  
  6,400    

Shanghai Milkground Food Tech Co., Ltd.*

    33,357  
   

 

 

 
      282,579  
   

 

 

 
      Materials - 3.1%      
  26,252    

Chongqing Zaisheng Technology Corp. Ltd.
Expires 04/30/2021*

    60,170  
  10,063    

Jiangsu Cnano Technology Co., Ltd.*

    65,558  
  1,221    

Micro-Tech Nanjing Co., Ltd.*

    38,002  
  12,400    

Sinoseal Holding Co., Ltd.*

    75,950  
   

 

 

 
      239,680  
   

 

 

 
      Technology Hardware & Equipment - 1.1%  
  2,850    

Gongniu Group Co., Ltd.*

    84,455  
   

 

 

 
 

Total Warrants
(cost $467,534)

  $ 606,714  
   

 

 

 
 

Total Long-Term Investments
(cost $6,110,980)

  $ 7,849,149  
   

 

 

 
SHORT-TERM INVESTMENTS - 0.5%  
      Other Investment Pools & Funds - 0.5%  
  42,283    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(1)

  $ 42,283  
   

 

 

 
 

Total Short-Term Investments
(cost $42,283)

  $ 42,283  
   

 

 

 
 

Total Investments
(cost $6,153,263)

    100.9    $ 7,891,432  
 

Other Assets and Liabilities

    (0.9 )%       (69,721
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     7,821,711  
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  32  

 


Hartford Schroders China A Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 120,018      $      $ 120,018      $  

Banks

     413,038               413,038         

Capital Goods

     1,170,823               1,170,823         

Consumer Durables & Apparel

     821,235               821,235         

Diversified Financials

     125,453               125,453         

Food, Beverage & Tobacco

     501,567               501,567         

Health Care Equipment & Services

     176,439               176,439         

Household & Personal Products

     106,615               106,615         

Insurance

     598,172               598,172         

Materials

     1,073,861               1,073,861         

Media & Entertainment

     134,294               134,294         

Pharmaceuticals, Biotechnology & Life Sciences

     325,005               325,005         

Real Estate

     223,776               223,776         

Software & Services

     186,889               186,889         

Technology Hardware & Equipment

     1,126,566               1,126,566         

Transportation

     78,037               78,037         

Utilities

     60,647               60,647         

Warrants

     606,714        606,714                

Short-Term Investments

     42,283        42,283                
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     7,891,432      $     648,997      $     7,242,435      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the period ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  33  

 


Hartford Schroders Emerging Markets Equity Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 96.8%  
      Argentina - 0.4%  
  15,078    

MercadoLibre, Inc.*

  $ 18,305,446  
   

 

 

 
      Brazil - 6.2%  
  2,449,574    

B3 S.A. - Brasil Bolsa Balcao

    21,793,629  
  3,559,426    

Duratex S.A.

    11,891,738  
  5,933,018    

Equatorial Energia S.A.

    20,607,542  
  14,004,352    

Itau Unibanco Holding S.A. ADR

    57,277,800  
  2,838,384    

Klabin S.A.

    11,743,434  
  3,523,437    

Lojas Americanas S.A.

    14,264,579  
  4,463,089    

Lojas Renner S.A.

    29,129,338  
  333,850    

Pagseguro Digital Ltd. Class A*

    12,222,248  
  6,372,390    

Raia Drogasil S.A.

    26,720,293  
  2,451,460    

Vale S.A. ADR

    25,911,932  
  2,195,260    

WEG S.A.

    29,011,505  
   

 

 

 
      260,574,038  
   

 

 

 
      Chile - 0.5%  
  1,397,633    

Banco Santander Chile ADR

    19,399,146  
   

 

 

 
      China - 37.0%  
  150,582    

51job, Inc. ADR*

    10,555,798  
  1,181,422    

Alibaba Group Holding Ltd. ADR*

    359,967,469  
  283,450    

Ant Group Co., Ltd. Class H

    2,954,467  
  5,397,600    

Centre Testing International Group Co., Ltd. Class A

    21,765,436  
  14,854,000    

China Mengniu Dairy Co., Ltd.*

    70,026,425  
  4,579,600    

China Pacific Insurance Group Co., Ltd. Class H

    14,331,689  
  49,052,000    

CNOOC Ltd.

    44,880,406  
  2,000,100    

ENN Energy Holdings Ltd.

    25,313,466  
  3,350,442    

Huayu Automotive Systems Co., Ltd. Class A

    15,585,802  
  1,656,355    

JD.com, Inc. ADR*

    135,026,060  
  6,613,500    

Li Ning Co., Ltd.

    34,469,161  
  6,838,828    

Midea Group Co., Ltd. Class A

    79,810,510  
  227,431    

New Oriental Education & Technology Group, Inc. ADR*

    36,475,384  
  1,444,398    

Oppein Home Group, Inc. Class A

    26,557,941  
  9,465,000    

Ping An Insurance Group Co., of China Ltd. Class H

    97,865,009  
  3,777,900    

Shenzhou International Group Holdings Ltd.

    65,733,064  
  4,802,200    

Tencent Holdings Ltd.

    366,915,012  
  2,775,293    

Tencent Music Entertainment Group ADR*

    41,296,360  
  4,631,900    

Weichai Power Co., Ltd. Class A

    10,482,141  
  2,349,000    

Weichai Power Co., Ltd. Class H

    4,454,368  
  1,615,500    

Wuxi Biologics Cayman, Inc.*(1)

    45,369,232  
  427,560    

Yum China Holdings, Inc.

    22,759,019  
  1,755,787    

Zhejiang Supor Co., Ltd. Class A

    18,531,058  
   

 

 

 
      1,551,125,277  
   

 

 

 
      Colombia - 0.1%  
  219,473    

Bancolombia S.A. ADR

    5,594,367  
   

 

 

 
      Egypt - 0.4%  
  4,034,201    

Commercial International Bank Egypt S.A.E. GDR

    15,561,454  
   

 

 

 
      Greece - 0.2%  
  751,583    

Hellenic Telecommunications Organization S.A.

    9,967,273  
   

 

 

 
      Hong Kong - 3.7%  
  7,593,800    

AIA Group Ltd.

    72,271,511  
  5,727,500    

China Mobile Ltd.

    35,032,480  
  5,568,000    

China Resources Beer Holdings Co., Ltd.

    34,547,083  
  6,142,000    

Hang Lung Properties Ltd.

    14,952,629  
   

 

 

 
      156,803,703  
   

 

 

 
      Hungary - 1.2%  
  584,831    

MOL Hungarian Oil & Gas plc*

    2,839,893  
  894,888    

OTP Bank Nyrt*

    27,915,644  
  980,784    

Richter Gedeon Nyrt

    20,025,112  
   

 

 

 
      50,780,649  
   

 

 

 
      India - 4.1%  
  3,684,344    

Bharti Airtel Ltd.

    21,542,475  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 96.8% - (continued)  
      India - 4.1% - (continued)  
  2,936,102    

HDFC Bank Ltd.*

  $ 46,889,360  
  6,994,562    

ICICI Bank Ltd.*

    36,791,657  
  713,772    

Reliance Industries Ltd.

    19,789,161  
  1,340,434    

Tata Consultancy Services Ltd.

    48,309,837  
   

 

 

 
      173,322,490  
   

 

 

 
      Kuwait - 0.2%  
  2,835,867    

National Bank of Kuwait SAKP

    7,835,710  
   

 

 

 
      Luxembourg - 0.4%  
  746,189    

Ternium S.A. ADR*

    14,938,704  
   

 

 

 
      Mexico - 0.2%  
  2,212,737    

Grupo Financiero Banorte S.A.B. de C.V. Class O*

    9,868,464  
   

 

 

 
      Pakistan - 0.1%  
  3,442,700    

Habib Bank Ltd.

    2,796,065  
  2,668,800    

United Bank Ltd.

    1,824,198  
   

 

 

 
      4,620,263  
   

 

 

 
      Peru - 0.2%  
  65,272    

Credicorp Ltd.

    7,485,393  
   

 

 

 
      Poland - 0.6%  
  822,744    

KGHM Polska Miedz S.A.*

    24,618,204  
   

 

 

 
      Russia - 5.5%  
  794,034    

LUKOIL PJSC ADR

    40,608,249  
  211,667    

Magnit PJSC

    12,568,872  
  2,731,827    

Moscow Exchange MICEX-RTS PJSC*

    4,605,314  
  377,944    

Novatek PJSC GDR

    45,569,896  
  85,074    

Polyus PJSC*

    16,653,580  
  74,118    

Polyus PJSC GDR

    7,290,178  
  6,287,193    

Sberbank of Russia PJSC ADR

    63,509,602  
  387,160    

X5 Retail Group N.V. GDR

    13,608,503  
  419,960    

Yandex N.V. Class A*

    24,177,097  
   

 

 

 
      228,591,291  
   

 

 

 
      Singapore - 0.4%  
  101,355    

Sea Ltd. ADR*

    15,983,683  
   

 

 

 
      South Africa - 5.1%  
  412,252    

Aspen Pharmacare Holdings Ltd.*

    2,684,595  
  1,881,765    

AVI Ltd.

    8,504,728  
  22,696,183    

FirstRand Ltd.

    52,685,244  
  1,854,972    

Foschini Group Ltd.

    9,878,084  
  1,260,112    

Gold Fields Ltd. ADR

    13,773,024  
  3,307,269    

Impala Platinum Holdings Ltd.

    29,435,754  
  1,900,746    

MultiChoice Group Ltd.

    15,675,224  
  412,158    

Naspers Ltd. Class N

    80,464,546  
   

 

 

 
      213,101,199  
   

 

 

 
      South Korea - 15.5%  
  1,079,203    

Hana Financial Group, Inc.

    29,151,932  
  233,765    

Hyundai Mobis Co., Ltd.

    46,837,978  
  68,468    

Korea Zinc Co., Ltd.

    23,156,375  
  81,603    

LG Chem Ltd.

    44,496,567  
  321,449    

LG Electronics, Inc.

    23,896,340  
  228,161    

NAVER Corp.

    58,379,756  
  3,859,168    

Samsung Electronics Co., Ltd.

    193,983,428  
  166,015    

Samsung Fire & Marine Insurance Co., Ltd.

    26,249,625  
  118,595    

Samsung SDI Co., Ltd.

    46,718,870  
  2,233,365    

SK Hynix, Inc.

    158,441,275  
   

 

 

 
      651,312,146  
   

 

 

 
      Taiwan - 13.8%  
  2,708,000    

Accton Technology Corp.

    19,674,403  
  9,725,036    

ASE Technology Holding, Co., Ltd.

    21,828,475  
  40,239,000    

CTBC Financial Holding Co., Ltd.

    25,411,326  
  8,578,000    

Delta Electronics, Inc.

    57,073,016  
  22,822,000    

Hon Hai Precision Industry Co., Ltd.

    61,896,235  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  34  

 


Hartford Schroders Emerging Markets Equity Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 96.8% - (continued)  
      Taiwan - 13.8% - (continued)  
  2,044,000    

MediaTek, Inc.

  $ 48,586,412  
  20,476,139    

Taiwan Semiconductor Manufacturing Co., Ltd.

    309,797,298  
  9,487,000    

Uni-President Enterprises Corp.

    20,335,969  
  3,156,000    

Zhen Ding Technology Holding Ltd.

    13,375,613  
   

 

 

 
      577,978,747  
   

 

 

 
      Turkey - 0.5%  
  1,602,065    

BIM Birlesik Magazalar A.S.

    12,666,674  
  5,645,871    

KOC Holding A.S.

    9,556,923  
   

 

 

 
      22,223,597  
   

 

 

 
      United Arab Emirates - 0.5%  
  27,639,525    

Emaar Properties PJSC*

    19,806,700  
   

 

 

 
 

Total Common Stocks
(cost $2,809,543,794)

  $ 4,059,797,944  
   

 

 

 
PREFERRED STOCKS - 0.5%  
      Brazil - 0.5%  
  4,979,950    

Gerdau S.A.

  $ 18,928,835  
   

 

 

 
 

Total Preferred Stocks
(cost $19,315,886)

  $ 18,928,835  
   

 

 

 
 

Total Long-Term Investments
(cost $2,828,859,680)

  $ 4,078,726,779  
   

 

 

 
SHORT-TERM INVESTMENTS - 2.2%  
      Other Investment Pools & Funds - 2.2%  
  92,614,722    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(2)

  $ 92,614,722  
   

 

 

 
 

Total Short-Term Investments
(cost $92,614,722)

  $ 92,614,722  
   

 

 

 
 

Total Investments
(cost $2,921,474,402)

    99.5    $ 4,171,341,501  
 

Other Assets and Liabilities

    0.5      20,882,729  
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     4,192,224,230  
   

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

*

Non-income producing.

 

(1) 

Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At October 31, 2020, the aggregate value of this security was $45,369,232, representing 1.1% of net assets.

 

(2) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  35  

 


Hartford Schroders Emerging Markets Equity Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

           

Common Stocks

           

Argentina

   $ 18,305,446      $ 18,305,446      $      $  

Brazil

     260,574,038        260,574,038                

Chile

     19,399,146        19,399,146                

China

     1,551,125,277        609,034,557        942,090,720         

Colombia

     5,594,367        5,594,367                

Egypt

     15,561,454               15,561,454         

Greece

     9,967,273               9,967,273         

Hong Kong

     156,803,703               156,803,703         

Hungary

     50,780,649               50,780,649         

India

     173,322,490               173,322,490         

Kuwait

     7,835,710               7,835,710         

Luxembourg

     14,938,704        14,938,704                

Mexico

     9,868,464        9,868,464                

Pakistan

     4,620,263        2,796,065        1,824,198         

Peru

     7,485,393        7,485,393                

Poland

     24,618,204               24,618,204         

Russia

     228,591,291        36,069,521        192,521,770         

Singapore

     15,983,683        15,983,683                

South Africa

     213,101,199        22,277,752        190,823,447         

South Korea

     651,312,146               651,312,146         

Taiwan

     577,978,747               577,978,747         

Turkey

     22,223,597               22,223,597         

United Arab Emirates

     19,806,700               19,806,700         

Preferred Stocks

     18,928,835        18,928,835                

Short-Term Investments

     92,614,722        92,614,722                
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     4,171,341,501      $     1,133,870,693      $     3,037,470,808      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  36  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
CORPORATE BONDS - 45.0%      
      Argentina - 1.7%  
$     647,000    

YPF Energia Electrica S.A.
10.00%, 07/25/2026(1)

  $ 388,206  
   

YPF S.A.

 

    400,000    

8.50%, 07/28/2025(2)

    234,000  
    700,000    

8.50%, 06/27/2029(1)

    392,000  
     

 

 

 
        1,014,206  
     

 

 

 
          Brazil - 0.4%  
    210,000    

Banco do Brasil S.A. 9.00%, 06/18/2024, (9.00% fixed rate until 06/18/2024; 10 year USD CMT + 6.362% thereafter)(1)(3)(4)

    228,480  
     

 

 

 
          British Virgin Islands - 3.4%  
    380,000    

China Great Wall International Holdings Ltd.
3.88%, 08/31/2027(2)

    412,057  
    285,000    

China Railway Xunjie Co., Ltd.
3.25%, 07/28/2026(2)

    308,119  
    200,000    

Greenland Global Investment Ltd.
5.88%, 07/03/2024(2)

    182,693  
    410,000    

Rongshi International Finance Ltd.
3.63%, 05/04/2027(2)

    448,478  
   

Sinopec Group Overseas Development Ltd.

 

    435,000    

2.70%, 05/13/2030(1)

    452,679  
    200,000    

3.50%, 05/03/2026(1)(5)

    220,520  
     

 

 

 
        2,024,546  
     

 

 

 
          Canada - 1.2%  
    290,000    

Canacol Energy Ltd. 7.25%, 05/03/2025(1)

    297,250  
    200,000    

First Quantum Minerals Ltd.
7.25%, 04/01/2023(1)

    201,000  
    200,000    

MEGlobal Canada ULC 5.88%, 05/18/2030(1)

    237,796  
     

 

 

 
        736,046  
     

 

 

 
          Cayman Islands - 6.1%  
    340,000    

Baidu, Inc. 4.38%, 05/14/2024

    372,762  
    300,000    

Central China Real Estate Ltd.
7.25%, 04/24/2023(2)

    301,099  
    380,000    

China Evergrande Group 11.50%, 01/22/2023(2)

    316,809  
    200,000    

CIFI Holdings Group Co., Ltd.
6.45%, 11/07/2024(2)

    210,087  
    290,000    

CSCEC Finance Cayman Ltd.
3.50%, 07/05/2027(2)

    313,742  
    370,000    

CSN Islands Corp. 6.75%, 01/28/2028(1)

    363,895  
    340,000    

MAF Sukuk Ltd. 4.64%, 05/14/2029(2)

    371,699  
    305,000    

Meituan 3.05%, 10/28/2030(1)

    305,638  
    250,000    

Powerlong Real Estate Holdings Ltd.
6.95%, 07/23/2023(2)

    258,247  
    230,000    

Ronshine China Holdings Ltd.
8.10%, 06/09/2023(2)

    233,552  
    305,000    

Tencent Holdings Ltd.
3.24%, 06/03/2050(1)

    307,440  
    300,000    

Yuzhou Group Holdings Co., Ltd.
7.38%, 01/13/2026(2)

    288,900  
     

 

 

 
        3,643,870  
     

 

 

 
          Chile - 1.3%  
    290,000    

AES Gener S.A. 7.13%, 03/26/2079, (7.13% fixed rate until 04/07/2024; 5 year USD Swap + 4.644% thereafter)(1)(4)

    300,417  
    200,000    

Empresa de los Ferrocarriles del Estado
3.07%, 08/18/2050(1)

    186,000  
    306,496    

Empresa Electrica Cochrane S.p.A.
5.50%, 05/14/2027(1)

    308,795  
     

 

 

 
        795,212  
     

 

 

 
Shares or Principal Amount   Market Value  
CORPORATE BONDS - 45.0% - (continued)      
          Colombia - 1.0%  
$     485,000    

Ecopetrol S.A. 6.88%, 04/29/2030

  $ 583,164  
     

 

 

 
          Hong Kong - 2.3%  
    430,000    

Beijing State-Owned Assets Management Hong Kong Co., Ltd. 4.13%, 05/26/2025(2)

    464,452  
    260,000    

CNAC HK Finbridge Co., Ltd.
4.88%, 03/14/2025(2)

    286,346  
    400,000    

Lenovo Group Ltd. 3.42%, 11/02/2030(1)

    406,027  
    230,000    

Xiaomi Best Time International Ltd.
3.38%, 04/29/2030(1)(5)

    239,413  
     

 

 

 
        1,396,238  
     

 

 

 
          India - 0.3%  
    200,000    

ReNew Power Pvt Ltd. 5.88%, 03/05/2027(1)

    204,156  
     

 

 

 
          Indonesia - 4.1%  
    265,000    

ABM Investama Tbk PT 7.13%, 08/01/2022(1)

    171,058  
   

Indonesia Asahan Aluminium Persero PT

 

    280,000    

5.45%, 05/15/2030(1)

    318,983  
    200,000    

5.80%, 05/15/2050(1)

    231,754  
    250,000    

6.76%, 11/15/2048(1)

    320,140  
    270,000    

Pelabuhan Indonesia PT 5.38%, 05/05/2045(1)

    312,187  
    360,000    

Pertamina Persero PT 6.00%, 05/03/2042(1)(5)

    439,177  
   

Perusahaan Listrik Negara PT

 

    400,000    

5.25%, 10/24/2042(1)

    461,000  
    200,000    

5.25%, 05/15/2047(1)

    228,500  
     

 

 

 
        2,482,799  
     

 

 

 
          Jersey - 0.7%  
    400,000    

Galaxy Pipeline Assets Bidco Ltd.
2.63%, 03/31/2036(1)

    396,996  
     

 

 

 
          Kazakhstan - 0.8%  
    485,000    

KazMunayGas National Co. JSC
3.50%, 04/14/2033(1)

    500,134  
     

 

 

 
          Luxembourg - 1.9%  
    81,000    

Atento Luxco 1 S.A. 6.13%, 08/10/2022(1)

    74,521  
    280,000    

Gazprom PJSC Via Gaz Capital S.A.
5.15%, 02/11/2026(1)

    311,640  
    200,000    

JSL Europe S.A. 7.75%, 07/26/2024(1)

    205,200  
    300,000    

Ultrapar International S.A. 5.25%, 06/06/2029(1)

    314,700  
    270,000    

Unigel Luxembourg S.A. 8.75%, 10/01/2026(1)

    260,887  
     

 

 

 
    1,166,948  
     

 

 

 
      Malaysia - 0.4%  
    220,000    

Petronas Capital Ltd. 3.50%, 04/21/2030(1)

    244,816  
     

 

 

 
      Mauritius - 0.4%  
    250,000    

India Green Energy Holdings
5.38%, 04/29/2024(1)

    250,364  
     

 

 

 
      Mexico - 9.8%  
    260,000    

Alpha Holding S.A. de C.V.
10.00%, 12/19/2022(1)

    215,803  
    200,000    

Banco Mercantil del Norte S.A.
7.63%, 01/10/2028, (7.63% fixed rate until 01/10/2028; 10 year CMT + 5.353% thereafter)(1)(3)(4)

    199,500  
    300,000    

BBVA Bancomer S.A. 5.88%, 09/13/2034, (5.88% fixed rate until 09/13/2029; 5 year USD CMT + 4.308% thereafter)(1)(4)

    311,361  
    200,000    

Cemex S.A.B. de C.V.
7.38%, 06/05/2027(1)

    220,302  
    224,880    

Cometa Energia S.A. de C.V.
6.38%, 04/24/2035(1)(5)

    248,773  
    230,000    

Cydsa S.A.B. de C.V. 6.25%, 10/04/2027(1)

    228,505  
    200,000    

Docuformas SAPI de C.V. 10.25%, 07/24/2024(1)

    153,500  
    220,000    

Elementia S.A.B. de C.V. 5.50%, 01/15/2025(1)(5)

    220,440  
MXN     31,610,000    

Grupo Televisa S.A.B. 7.25%, 05/14/2043

    1,108,256  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  37  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
CORPORATE BONDS - 45.0% - (continued)      
      Mexico - 9.8% - (continued)  
 

Infraestructura Energetica Nova S.A.B. de C.V.

 

$     250,000    

4.75%, 01/15/2051(1)

  $ 234,875  
    200,000    

4.88%, 01/14/2048(1)

    190,600  
 

Petroleos Mexicanos

 

    130,000    

3.50%, 01/30/2023

    127,343  
    465,000    

6.49%, 01/23/2027

    433,380  
    1,290,000    

6.50%, 01/23/2029

    1,150,551  
    340,000    

7.69%, 01/23/2050

    282,516  
    350,000    

Sixsigma Networks Mexico S.A. de C.V.
7.50%, 05/02/2025(1)

    304,062  
    230,000    

Trust Fibra Uno 6.39%, 01/15/2050(1)

    238,913  
     

 

 

 
    5,868,680  
     

 

 

 
      Mult - 0.3%  
    220,000    

Mongolian Mining Corp. / Energy Resources LLC
9.25%, 04/15/2024(1)

    177,069  
     

 

 

 
      Netherlands - 2.7%  
 

Braskem Netherlands Finance B.V.

 

    330,000    

5.88%, 01/31/2050(1)

    306,491  
    200,000    

8.50%, 01/23/2081, (8.50% fixed rate until 10/24/2025; 5 year USD CMT + 8.220% thereafter)(1)(4)

    203,152  
    200,000    

Metinvest B.V. 7.65%, 10/01/2027(1)

    194,316  
 

Petrobras Global Finance B.V.

 

    120,000    

6.75%, 06/03/2050

    131,681  
    260,000    

6.90%, 03/19/2049

    294,226  
    200,000    

SABIC Capital B.V. 2.15%, 09/14/2030(2)

    196,820  
    330,000    

Teva Pharmaceutical Finance Netherlands B.V.
3.15%, 10/01/2026

    290,400  
     

 

 

 
    1,617,086  
     

 

 

 
      Panama - 1.0%  
    200,000    

AES Panama Generation Holdings SRL
4.38%, 05/31/2030(1)

    211,938  
    358,000    

Banistmo S.A. 4.25%, 07/31/2027(1)

    372,656  
     

 

 

 
    584,594  
     

 

 

 
      Peru - 1.0%  
    270,000    

Banco BBVA Peru S.A. 5.25%, 09/22/2029, (5.25% fixed rate until 09/22/2024; 5 year USD CMT + 2.750% thereafter)(1)(4)

    293,355  
    300,000    

Banco Internacional del Peru SAA
4.00%, 07/08/2030, (4.00% fixed rate until 07/08/2025; 1 year USD CMT + 3.711% thereafter)(1)(4)

    303,000  
     

 

 

 
    596,355  
     

 

 

 
      South Korea - 0.3%  
    200,000    

Korea East-West Power Co., Ltd.
1.75%, 05/06/2025(1)

    206,546  
     

 

 

 
      Spain - 0.8%  
    445,000    

AI Candelaria Spain SLU 7.50%, 12/15/2028(1)

    480,604  
     

 

 

 
      Thailand - 1.0%  
    340,000    

Siam Commercial Bank PCL
4.40%, 02/11/2029(2)

    392,533  
    200,000    

Thaioil Treasury Center Co., Ltd.
3.75%, 06/18/2050(1)

    184,234  
     

 

 

 
    576,767  
     

 

 

 
      Ukraine - 0.4%  
    210,000    

VF Ukraine PAT via VFU Funding plc
6.20%, 02/11/2025(1)

    208,425  
     

 

 

 
      United Arab Emirates - 0.3%  
    200,000    

Kuwait Projects Co. SPC Ltd.
4.23%, 10/29/2026(2)

    198,790  
     

 

 

 
Shares or Principal Amount   Market Value  
CORPORATE BONDS - 45.0% - (continued)      
      United Kingdom - 1.4%  
 

Gazprom PJSC via Gaz Finance plc

 

$     310,000    

3.25%, 02/25/2030(1)

  $ 309,070  
    305,000    

4.60%, 10/26/2025, (4.60% fixed rate until 10/26/2025; 5 year USD CMT thereafter)(1)(3)(4)

    304,546  
    250,000    

NAK Naftogaz Ukraine via Kondor Finance plc
7.63%, 11/08/2026(1)

    233,565  
     

 

 

 
    847,181  
     

 

 

 
 

Total Corporate Bonds
(cost $27,143,240)

  $ 27,030,072  
     

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 45.6%  
      Argentina - 1.0%  
$     1,190,000    

Provincia de Cordoba 7.13%, 06/10/2021(1)

  $ 624,762  
     

 

 

 
      Azerbaijan - 0.9%  
 

Republic of Azerbaijan International Bond

 

    400,000    

3.50%, 09/01/2032(1)

    388,800  
    150,000    

5.13%, 09/01/2029(1)

    159,833  
     

 

 

 
    548,633  
     

 

 

 
      Bahrain - 0.7%  
    390,000    

Bahrain Government International Bond
7.38%, 05/14/2030(1)

    431,521  
     

 

 

 
      Belarus - 0.5%  
    310,000    

Republic of Belarus International Bond
6.88%, 02/28/2023(1)

    306,170  
     

 

 

 
      Brazil - 4.4%  
 

Brazil Notas do Tesouro Nacional

 

BRL     2,846,000    

10.00%, 01/01/2025

    555,354  
    5,258,000    

10.00%, 01/01/2027

    1,032,234  
 

Brazilian Government International Bond

 

$     380,000    

3.88%, 06/12/2030(5)

    384,750  
BRL     1,485,000    

10.25%, 01/10/2028

    307,052  
$     338,777    

Prumo Participacoes e Investimentos S.A
7.50%, 12/31/2031(1)

    359,528  
     

 

 

 
    2,638,918  
     

 

 

 
      Cameroon - 0.9%  
    500,000    

Republic of Cameroon International Bond
9.50%, 11/19/2025(1)

    523,624  
     

 

 

 
      Colombia - 1.9%  
 

Colombia Government International Bond

 

COP     1,788,000,000    

4.38%, 03/21/2023

    468,870  
    1,943,000,000    

9.85%, 06/28/2027

    649,280  
     

 

 

 
    1,118,150  
     

 

 

 
      Dominican Republic - 0.9%  
$     470,000    

Dominican Republic International Bond
6.88%, 01/29/2026(1)

    530,513  
     

 

 

 
      Ecuador - 0.4%  
    520,000    

Ecuador Government International Bond
0.50%, 07/31/2040(1)(6)

    257,405  
     

 

 

 
      Egypt - 1.7%  
 

Egypt Government International Bond

 

    200,000    

4.55%, 11/20/2023(1)

    200,560  
    200,000    

7.50%, 01/31/2027(1)

    211,952  
    230,000    

7.63%, 05/29/2032(1)

    232,668  
    400,000    

8.70%, 03/01/2049(1)

    402,600  
     

 

 

 
    1,047,780  
     

 

 

 
      Ghana - 0.6%  
 

Ghana Government International Bond

 

    230,000    

7.88%, 02/11/2035(1)

    203,838  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  38  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
FOREIGN GOVERNMENT OBLIGATIONS - 45.6% - (continued)  
      Ghana - 0.6% - (continued)  
$     200,000    

8.63%, 06/16/2049(1)

  $ 175,500  
     

 

 

 
    379,338  
     

 

 

 
      Guatemala - 0.6%  
    290,000    

Guatemala Government Bond
5.38%, 04/24/2032(1)

    341,591  
     

 

 

 
      Hungary - 0.6%  
 

Hungary Government Bond

 

HUF     69,240,000    

2.75%, 12/22/2026

    232,508  
    43,760,000    

3.00%, 06/26/2024

    147,071  
     

 

 

 
    379,579  
     

 

 

 
      Indonesia - 4.1%  
 

Indonesia Treasury Bond

 

IDR     4,563,000,000    

7.00%, 05/15/2022

    324,979  
    4,168,000,000    

7.00%, 05/15/2027

    294,453  
    2,146,000,000    

7.50%, 08/15/2032

    149,890  
    6,143,000,000    

8.25%, 06/15/2032

    450,361  
    6,523,000,000    

8.75%, 05/15/2031

    500,521  
    9,581,000,000    

9.00%, 03/15/2029

    747,678  
     

 

 

 
    2,467,882  
     

 

 

 
      Ivory Coast - 1.6%  
EUR     850,000    

Ivory Coast Government International Bond
6.63%, 03/22/2048(1)

    928,346  
     

 

 

 
      Jamaica - 0.4%  
$     210,000    

Jamaica Government International Bond
6.75%, 04/28/2028

    241,502  
     

 

 

 
      Jordan - 0.3%  
    200,000    

Jordan Government International Bond
5.75%, 01/31/2027(1)

    206,071  
     

 

 

 
      Kenya - 0.3%  
    200,000    

Kenya Government International Bond
8.25%, 02/28/2048(1)

    204,190  
     

 

 

 
      Kuwait - 0.4%  
    200,000    

Kuwait International Government Bond
3.50%, 03/20/2027(1)

    226,020  
     

 

 

 
      Malaysia - 2.8%  
 

Malaysia Government Bond

 

MYR     1,510,000    

3.48%, 06/14/2024

    383,210  
    4,930,000    

3.90%, 11/30/2026

    1,295,659  
     

 

 

 
    1,678,869  
     

 

 

 
      Mexico - 1.2%  
 

Mexican Bonos

 

MXN     2,700,000    

7.50%, 06/03/2027

    139,989  
    5,300,000    

7.75%, 05/29/2031

    278,234  
    5,733,900    

7.75%, 11/13/2042

    289,608  
     

 

 

 
    707,831  
     

 

 

 
      Panama - 1.0%  
 

Panama Government International Bond

 

$     260,000    

2.25%, 09/29/2032

    264,420  
    320,000    

3.87%, 07/23/2060

    360,403  
     

 

 

 
    624,823  
     

 

 

 
      Peru - 2.2%  
PEN     1,970,000    

Peru Government Bond 6.95%, 08/12/2031

    672,021  
 

Peruvian Government International Bond

 

$     135,000    

2.39%, 01/23/2026

    141,885  
    440,000    

2.84%, 06/20/2030

    480,260  
     

 

 

 
    1,294,166  
     

 

 

 
      Philippines - 0.7%  
    375,000    

Philippine Government International Bond
2.46%, 05/05/2030

    400,718  
     

 

 

 
Shares or Principal Amount   Market Value  
FOREIGN GOVERNMENT OBLIGATIONS - 45.6% - (continued)  
      Qatar - 1.2%  
 

Qatar Government International Bond

 

$     220,000    

3.25%, 06/02/2026(1)

  $ 242,836  
    200,000    

3.40%, 04/16/2025(1)

    219,376  
    200,000    

3.75%, 04/16/2030(1)

    232,198  
     

 

 

 
    694,410  
     

 

 

 
      Romania - 1.9%  
 

Romania Government Bond

 

RON     2,050,000    

4.50%, 06/17/2024

    516,451  
    300,000    

5.00%, 02/12/2029

    80,801  
 

Romanian Government International Bond

 

$     216,000    

3.00%, 02/14/2031(1)

    223,671  
    312,000    

4.00%, 02/14/2051(1)

    317,854  
     

 

 

 
    1,138,777  
     

 

 

 
      Russia - 2.8%  
 

Russian Federal Bond - OFZ

 

RUB     12,470,000    

7.15%, 11/12/2025

    168,636  
    40,570,000    

8.15%, 02/03/2027

    578,433  
 

Russian Foreign Bond - Eurobond

 

$     400,000    

4.75%, 05/27/2026(1)

    457,000  
    400,000    

5.10%, 03/28/2035(1)

    486,000  
     

 

 

 
    1,690,069  
     

 

 

 
      Saudi Arabia - 2.1%  
 

Saudi Government International Bond

 

    430,000    

3.25%, 10/26/2026(1)

    468,528  
    670,000    

4.50%, 10/26/2046(1)

    793,716  
     

 

 

 
    1,262,244  
     

 

 

 
          South Africa - 2.4%      
ZAR     38,829,271    

Republic of South Africa Government Bond
6.50%, 02/28/2041

    1,461,190  
     

 

 

 
          Sri Lanka - 0.4%      
$     390,000    

Sri Lanka Government International Bond
6.13%, 06/03/2025(1)

    216,427  
     

 

 

 
          Thailand - 1.0%      
THB     19,270,000    

Thailand Government Bond 1.60%, 06/17/2035

    616,233  
     

 

 

 
          Turkey - 1.7%      
$     1,070,000    

Turkey Government International Bond
6.38%, 10/14/2025

    1,045,925  
     

 

 

 
          Ukraine - 1.6%      
   

Ukraine Government International Bond

 
    200,000    

7.25%, 03/15/2033(1)

    187,751  
    820,000    

7.38%, 09/25/2032(1)

    785,429  
     

 

 

 
        973,180  
     

 

 

 
          United Arab Emirates - 0.4%      
    200,000    

Abu Dhabi Government International Bond
3.88%, 04/16/2050(1)

    237,420  
     

 

 

 
   

Total Foreign Government Obligations
(cost $28,191,548)

  $ 27,444,277  
     

 

 

 
   

Total Long-Term Investments
(cost $55,334,788)

  $ 54,474,349  
     

 

 

 
SHORT-TERM INVESTMENTS - 9.3%      
          Other Investment Pools & Funds - 3.0%      
    1,831,498    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(7)

  $ 1,831,498  
     

 

 

 
          Securities Lending Collateral - 2.3%      
    1,386,167    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(7)

    1,386,167  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  39  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
SHORT-TERM INVESTMENTS - 9.3% - (continued)      
          Securities Lending Collateral - 2.3% - (continued)  
    1,399    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(7)

  $ 1,399  
     

 

 

 
        1,387,566  
     

 

 

 
          U.S. Treasury - 4.0%      
          U.S. Treasury Bills - 4.0%      
    750,000    

0.08%, 12/17/2020(8)

    749,912  
    1,650,000    

0.09%, 12/24/2020(8)

    1,649,781  
     

 

 

 
        2,399,693  
     

 

 

 
   

Total Short-Term Investments
(cost $5,618,757)

     $ 5,618,757  
        

 

 

 
   

Total Investments
(cost $60,953,545)

    99.9    $ 60,093,106  
   

Other Assets and Liabilities

    0.1      32,867  
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $ 60,125,973  
     

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

(1) 

Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At October 31, 2020, the aggregate value of these securities was $28,621,068, representing 47.6% of net assets.

 

(2) 

Security is exempt from registration under Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. At October 31, 2020, the aggregate value of these securities was $5,418,423, representing 9.0% of net assets.

 

(3) 

Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(4) 

Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at October 31, 2020. Rate will reset at a future date. Base lending rates may be subject to a floor or cap.

 

(5) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(6) 

Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.

 

(7) 

Current yield as of period end.

 

(8)

The rate shown represents current yield to maturity.

 

 
OTC Credit Default Swap Contracts Outstanding at October 31, 2020  

Reference Entity

  

Counterparty

  

Notional

Amount (a)

     (Pay)/Receive
Fixed Rate
   

Expiration
Date

  Periodic
Payment
Frequency
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
    Market
Value
    Unrealized
Appreciation/
(Depreciation)
 
Credit default swaps on single-name issues:                                                       
Buy protection:                                                            

Colombia Government International Bond

   JPM    USD      1,200,000        (1.00 %)    12/20/2025     Quarterly      $ 11,902      $     —     $ 13,964     $ 2,062  

Mexico Government International Bond

   MSC    USD      600,000        (1.00 %)    06/20/2025     Quarterly        43,120              3,519       (39,601
                  

 

 

    

 

 

   

 

 

   

 

 

 

Total

             $ 55,022      $     $ 17,483     $ (37,539
                  

 

 

    

 

 

   

 

 

   

 

 

 
Credit default swaps on single-name issues:                                                       
Sell protection:                                                            

Petroleo Brasileiro S.A. - Petrobras (BB-)

   JPM    USD      1,070,000        1.00   12/20/2024     Quarterly      $      $ (26,895   $ (50,423   $ (23,528
                  

 

 

    

 

 

   

 

 

   

 

 

 

Total OTC credit default swap contracts

             $     55,022      $     (26,895   $     (32,940   $     (61,067
                  

 

 

    

 

 

   

 

 

   

 

 

 

 

(a) 

The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

The accompanying notes are an integral part of these financial statements.

 

 

  40  

 


Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Foreign Currency Contracts Outstanding at October 31, 2020  
Amount and Description of
Currency to be Purchased
   Amount and Description of
Currency to be Sold
   Counterparty    Settlement
Date
    Appreciation     Depreciation  
  1,789,000      BRL      323,216      USD    CBK      11/16/2020     $     $ (11,685
  1,501,000      BRL      284,523      USD    JPM      11/16/2020             (23,143
  396,680,000      CLP      496,800      USD    UBS      11/18/2020       16,100        
  7,300,000      CNY      1,040,241      USD    JPM      11/03/2020       48,994        
  7,300,000      CNY      1,085,792      USD    CBK      11/03/2020       3,443        
  4,160,000      CNY      600,462      USD    CBK      11/30/2020       18,964        
  7,300,000      CNY      1,078,924      USD    CBK      02/26/2021       341        
  3,320,000      CNY      485,771      USD    JPM      03/17/2021       4,441        
  19,900,000      CZK      860,704      USD    CBK      12/15/2020             (9,465
  18,930,000      THB      597,885      USD    CBK      12/15/2020       9,340        
  603,338      USD      3,290,000      BRL    UBS      11/16/2020       30,427        
  1,087,361      USD      7,300,000      CNY    CBK      11/03/2020             (1,874
  1,085,792      USD      7,300,000      CNY    JPM      11/03/2020             (3,443
  597,463      USD      2,300,830,000      COP    UBS      01/29/2021       5,487        
  430,095      USD      7,160,000      ZAR    JPM      12/15/2020             (7,510
  7,160,000      ZAR      432,495      USD    MSC      12/15/2020       5,110        
                

 

 

   

 

 

 
 

Total Foreign Currency Contracts

    $     142,647     $     (57,120
                

 

 

   

 

 

 

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total     Level 1      Level 2     Level 3(1)  

Assets

 

Corporate Bonds

   $     27,030,072     $     —      $     27,030,072     $       —  

Foreign Government Obligations

     27,444,277              27,444,277        

Short-Term Investments

     5,618,757       3,219,064        2,399,693        

Foreign Currency Contracts(2)

     142,647              142,647        

Swaps - Credit Default(2)

     2,062              2,062        
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 60,237,815     $     3,219,064      $ 57,018,751     $  
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

 

Foreign Currency Contracts(2)

   $ (57,120   $      $ (57,120   $  

Swaps - Credit Default(2)

     (63,129            (63,129      
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (120,249   $      $ (120,249   $  
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

(2) 

Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

  41  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4%  
      Australia - 2.2%  
  3,365,979    

Beach Energy Ltd.

  $ 2,791,132  
  12,885    

BHP Group plc

    249,613  
  119,851    

BWP Trust REIT

    337,869  
  61,175    

Collection House Ltd.(1)(4)

    11,664  
  285,920    

Deterra Royalties Ltd.*

    789,825  
  373,754    

Fortescue Metals Group Ltd.

    4,572,316  
  285,920    

Iluka Resources Ltd.

    1,036,090  
  76,169    

IPH Ltd.

    353,032  
  63,430    

McMillan Shakespeare Ltd.

    417,254  
  74,799    

Mineral Resources Ltd.

    1,313,455  
  506,379    

OceanaGold Corp.*

    661,337  
  173,790    

Orocobre Ltd.*(2)

    313,353  
  237,037    

OZ Minerals Ltd.

    2,476,179  
  475,648    

Perenti Global Ltd.

    349,788  
  38,597    

Perpetual Ltd.

    738,703  
  1,778,527    

Perseus Mining Ltd.*

    1,538,220  
  1,188,858    

Ramelius Resources Ltd.

    1,623,094  
  677,024    

Regis Resources Ltd.

    1,987,150  
  130,944    

Rio Tinto Ltd.

    8,518,412  
  1,504,390    

Silver Lake Resources Ltd.*

    2,252,859  
  1,143,562    

St. Barbara Ltd.

    2,150,415  
  444,151    

Westgold Resources Ltd.*

    808,092  
  227,928    

Woodside Petroleum Ltd.

    2,811,320  
   

 

 

 
      38,101,172  
   

 

 

 
      Austria - 0.8%  
  105,316    

ams AG*

    2,254,992  
  32,991    

BAWAG Group AG*(3)

    1,211,600  
  177,861    

Erste Group Bank AG*

    3,656,015  
  2,087    

Mayr Melnhof Karton AG

    340,774  
  11,261    

Oesterreichische Post AG

    357,625  
  190,948    

OMV AG

    4,414,025  
  149,398    

Raiffeisen Bank International AG*

    2,157,059  
   

 

 

 
      14,392,090  
   

 

 

 
      Belgium - 0.4%  
  78,567    

Ageas S.A.

    3,163,818  
  50,069    

bpost S.A.*

    443,681  
  11,346    

Sofina S.A.

    2,948,808  
  3,927    

Wereldhave Belgium Comm REIT

    164,191  
   

 

 

 
      6,720,498  
   

 

 

 
      Bermuda - 0.0%  
  93,911    

DHT Holdings, Inc.

    451,712  
   

 

 

 
      Brazil - 0.7%  
  569,746    

Cia de Saneamento Basico do Estado de Sao Paulo

    4,220,010  
  91,517    

Cia Paranaense de Energia ADR

    988,384  
  197,215    

Cia Siderurgica Nacional S.A. ADR(2)

    704,057  
  431,200    

Engie Brasil Energia S.A.

    2,997,685  
  297,500    

Light S.A.*

    1,000,144  
  302,400    

Marfrig Global Foods S.A.*

    725,703  
  208,100    

Minerva S.A.*

    361,585  
  121,200    

Sao Martinho S.A.

    444,629  
  141,500    

Vale S.A.

    1,493,186  
   

 

 

 
      12,935,383  
   

 

 

 
      Canada - 6.2%  
  227,379    

Advantage Oil & Gas Ltd.*(2)

    375,466  
  362,218    

Alamos Gold, Inc. Class A

    3,308,709  
  161,308    

B2Gold Corp.

    1,037,611  
  242,770    

BCE, Inc.(2)

    9,755,990  
  14,436    

Boardwalk Real Estate Investment Trust REIT(2)

    290,172  
  251,260    

Canacol Energy Ltd.

    680,814  
  55,881    

Canadian Solar, Inc.*

    2,031,274  
  16,174    

Canadian Tire Corp. Ltd. Class A(2)

    1,806,176  
  28,100    

Cascades, Inc.

    299,075  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Canada - 6.2% - (continued)  
  33,676    

Celestica, Inc.*

  $ 197,916  
  212,700    

Centerra Gold, Inc.

    1,858,311  
  20,602    

CGI, Inc.*

    1,278,366  
  371,013    

CI Financial Corp.

    4,324,726  
  39,697    

Cogeco Communications, Inc.

    2,765,054  
  152,253    

Corus Entertainment, Inc. Class B

    402,260  
  554,104    

Crescent Point Energy Corp.

    690,395  
  425,112    

Dundee Precious Metals, Inc.

    2,820,679  
  200    

E-L Financial Corp. Ltd.

    99,152  
  129,999    

ECN Capital Corp.

    515,195  
  107,481    

Eldorado Gold.Corp.*

    1,347,244  
  10,100    

Equitable Group, Inc.

    644,981  
  125,299    

First Quantum Minerals Ltd.

    1,439,862  
  249,487    

Fortuna Silver Mines, Inc.*(2)

    1,649,764  
  163,300    

Genworth MI Canada, Inc.

    5,417,594  
  7,800    

goeasy Ltd.

    403,963  
  70,720    

Gran Colombia Gold Corp.

    315,302  
  37,400    

Home Capital Group, Inc.*

    682,986  
  216,999    

Hudbay Minerals, Inc.

    978,882  
  90,067    

iA Financial Corp., Inc.

    3,138,115  
  593,349    

IAMGOLD Corp.*

    2,173,342  
  44,328    

Imperial Oil Ltd.

    589,576  
  36,300    

Interfor Corp.*

    408,964  
  12,942    

Kirkland Lake Gold Ltd.

    589,641  
  537,116    

Largo Resources Ltd.*

    391,055  
  33,600    

Linamar Corp.

    1,098,311  
  63,763    

Lundin Gold, Inc.*(2)

    531,239  
  452,634    

Lundin Mining Corp.

    2,734,897  
  123,849    

Magna International, Inc.

    6,323,987  
  458,861    

Manulife Financial Corp.

    6,220,093  
  42,700    

Martinrea International, Inc.

    321,460  
  215,456    

New Gold, Inc.*

    436,637  
  36,058    

Norbord, Inc.

    1,184,612  
  14,100    

North West Co., Inc.

    347,658  
  176,305    

Open Text Corp.

    6,477,617  
  193,337    

Parex Resources, Inc.*

    1,882,144  
  143,512    

Pretium Resources, Inc.*

    1,750,409  
  147,840    

SSR Mining, Inc.*

    2,736,421  
  124,646    

Sun Life Financial, Inc.

    4,959,457  
  44,024    

Teekay Tankers Ltd. Class A*

    415,146  
  135,093    

Teranga Gold Corp.*

    1,405,381  
  97,691    

TFI International, Inc.

    4,349,644  
  104,135    

Torex Gold Resources, Inc.*

    1,403,786  
  355,800    

Touchstone Exploration, Inc.*

    451,326  
  276,462    

Tourmaline Oil Corp.

    3,581,576  
  38,664    

Transcontinental, Inc. Class A

    457,943  
  295,614    

Wesdome Gold Mines Ltd.*

    2,926,630  
  44,117    

West Fraser Timber Co., Ltd.

    2,046,078  
   

 

 

 
      108,751,064  
   

 

 

 
      Chile - 0.4%  
  8,633,576    

Aguas Andinas S.A. Class A

    2,242,631  
  50,621    

CAP S.A.

    417,641  
  258,816    

Enel Americas S.A. ADR

    1,682,304  
  196,370    

Enel Chile S.A. ADR

    653,912  
  2,617,917    

Enel Generacion Chile S.A.

    813,237  
  433,417    

Inversiones Aguas Metropolitanas S.A.

    292,485  
   

 

 

 
      6,102,210  
   

 

 

 
      China - 7.4%  
  55,327    

360 Finance, Inc. ADR*

    637,367  
  724,500    

A-Living Services Co., Ltd. Class H(3)

    3,051,072  
  420,000    

Agile Group Holdings Ltd.

    576,308  
  3,579,000    

Agricultural Bank of China Ltd. Class H

    1,217,634  
  1,468,500    

BAIC Motor Corp. Ltd. Class H(3)

    543,097  
  18,740    

Baidu, Inc. ADR*

    2,493,357  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  42  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      China - 7.4% - (continued)  
  10,337,000    

Bank of China Ltd. Class H

  $ 3,265,056  
  999,000    

Bank of Communications Co., Ltd. Class H

    491,491  
  178,500    

BYD Electronic International Co., Ltd.

    769,253  
  4,676,000    

China BlueChemical Ltd. Class H

    665,093  
  1,613,000    

China Conch Venture Holdings Ltd.

    7,182,369  
  9,986,000    

China Construction Bank Corp. Class H

    6,881,483  
  1,728,400    

China International Capital Corp. Ltd. Class H*(3)

    4,038,558  
  1,267,000    

China Lesso Group Holdings Ltd. Class L

    2,054,093  
  681,000    

China Lilang Ltd.

    431,428  
  914,000    

China Longyuan Power Group Corp. Ltd. Class H

    626,465  
  2,197,000    

China Machinery Engineering Corp. Class H

    423,106  
  3,689,000    

China Medical System Holdings Ltd.

    3,879,271  
  1,154,200    

China Pacific Insurance Group Co., Ltd. Class H

    3,612,026  
  1,184,000    

China SCE Group Holdings Ltd.

    508,880  
  984,000    

China Shineway Pharmaceutical Group Ltd.

    619,343  
  7,144,000    

China Tower Corp. Ltd. Class H(3)

    1,117,997  
  680,500    

China Yongda Automobiles Services Holdings Ltd.

    969,608  
  445,500    

CIMC Vehicles Group Co., Ltd. Class H(3)

    409,589  
  1,603,500    

CITIC Securities Co., Ltd. Class H

    3,476,708  
  2,173,000    

CNOOC Ltd.

    1,988,199  
  1,598,000    

COFCO Meat Holdings Ltd.(2)

    521,088  
  1,708,000    

Consun Pharmaceutical Group Ltd.

    674,110  
  1,077,500    

CSC Financial Co., Ltd. Class H(2)(3)

    1,306,602  
  2,761,000    

Dali Foods Group Co. Ltd.(3)

    1,714,202  
  12,687    

Daqo New Energy Corp. ADR*

    2,316,773  
  57,922    

DouYu International Holdings Ltd. ADR*

    886,207  
  3,193,000    

FIH Mobile Ltd.*

    350,932  
  476,000    

Flat Glass Group Co., Ltd. Class H(2)

    1,422,068  
  1,452,000    

Fufeng Group Ltd.

    459,995  
  2,527,500    

Great Wall Motor Co., Ltd. Class H

    4,092,198  
  424,000    

Greentown China Holdings Ltd.(2)

    689,092  
  31,828    

GreenTree Hospitality Group Ltd. ADR

    422,039  
  1,726,000    

Guangzhou Automobile Group Co., Ltd. Class H

    1,774,472  
  695,500    

Hengan International Group Co., Ltd.

    4,851,498  
  96,238    

Huami Corp. ADR*

    1,124,060  
  121,634    

HUYA, Inc. ADR*(2)

    2,724,602  
  11,663,000    

Industrial & Commercial Bank of China Ltd. Class H

    6,622,998  
  312,000    

Jiangxi Copper Co., Ltd. Class H

    372,587  
  48,807    

JinkoSolar Holding Co., Ltd. ADR*(2)

    2,845,448  
  19,745    

JOYY, Inc.

    1,804,298  
  428,000    

KWG Group Holdings Ltd.

    567,566  
  214,000    

KWG Living Group Holdings Ltd.*

    167,832  
  1,634,000    

Lenovo Group Ltd.

    1,025,945  
  7,953,000    

Lonking Holdings Ltd.

    2,117,993  
  1,372,000    

Luye Pharma Group Ltd.(3)

    796,202  
  168,656    

Momo, Inc. ADR

    2,529,840  
  609,000    

Ping An Insurance Group Co., of China Ltd. Class H

    6,296,861  
  495,000    

Powerlong Real Estate Holdings Ltd.

    333,273  
  304,000    

Q Technology Group Co., Ltd.(2)

    335,968  
  702,000    

Sany Heavy Equipment International Holdings Co., Ltd.

    387,003  
  393,500    

Semiconductor Manufacturing International Corp.*

    1,160,877  
  1,755,000    

Sinopec Engineering Group Co., Ltd. Class H

    682,175  
  297,200    

Sinopharm Group Co., Ltd. Class H

    682,800  
  838,000    

Sinotruk Hong Kong Ltd.

    2,143,480  
  1,021,000    

Tian Ge Interactive Holdings Ltd.*(3)

    75,069  
  1,068,000    

Tianneng Power International Ltd.(2)

    1,739,947  
  195,829    

Vipshop Holdings Ltd. ADR*

    4,190,741  
  7,224,000    

Want Want China Holdings Ltd.

    4,783,981  
  312,000    

Weichai Power Co., Ltd. Class H

    591,640  
  1,020,200    

Xinjiang Goldwind Science & Technology Co., Ltd. Class H(2)

    1,344,856  
  1,610,000    

Xinyi Solar Holdings Ltd.

    2,941,221  
  388,000    

Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., Class H(2)(3)

    557,106  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      China - 7.4% - (continued)  
  538,200    

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Class H(2)(3)

  $ 664,354  
  1,242,000    

Youyuan International Holdings Ltd.*(1)(2)(4)

     
  877,000    

Yuzhou Properties Co., Ltd.

    339,461  
  530,000    

Zhejiang Expressway Co., Ltd. Class H

    361,821  
  282,000    

Zhongsheng Group Holdings Ltd.

    2,010,728  
  1,693,600    

Zoomlion Heavy Industry Science and Technology Co., Ltd. Class H

    1,495,305  
   

 

 

 
      129,228,165  
   

 

 

 
      Czech Republic - 0.2%  
  76,878    

O2 Czech Republic AS

    722,089  
  3,587    

Philip Morris CR AS

    2,081,662  
   

 

 

 
      2,803,751  
   

 

 

 
      Denmark - 0.3%  
  247,940    

Scandinavian Tobacco Group A/S Class A(3)

    3,502,108  
  80,953    

Spar Nord Bank A/S*

    697,495  
  21,948    

Sydbank A/S*

    375,348  
   

 

 

 
      4,574,951  
   

 

 

 
      Egypt - 0.1%  
  578,111    

Centamin plc

    929,746  
   

 

 

 
      Finland - 0.5%  
  1,124,327    

Nokia Oyj*

    3,790,327  
  325,343    

Outotec Oyj

    2,293,495  
  24,933    

Sampo Oyj Class A

    940,884  
  70,854    

TietoEVRY Oyj

    1,767,380  
  21,430    

Tokmanni Group Corp.

    340,932  
   

 

 

 
      9,133,018  
   

 

 

 
      France - 6.0%  
  46,973    

Amundi S.A.*(3)

    3,081,054  
  73,260    

Atos SE*

    5,004,819  
  48,599    

BNP Paribas S.A.*

    1,694,879  
  57,424    

Cie de Saint-Gobain*

    2,236,866  
  42,414    

Cie Generale des Etablissements Michelin SCA

    4,580,753  
  58,767    

Coface S.A.*

    459,157  
  217,983    

Danone S.A.

    12,090,470  
  397,280    

Eutelsat Communications S.A.

    3,995,859  
  42,173    

Faurecia SE*

    1,599,451  
  72,060    

Gaztransport Et Technigaz S.A.

    6,907,437  
  112,410    

Ipsen S.A.

    10,238,295  
  35,999    

IPSOS

    884,805  
  9,383    

Kaufman & Broad S.A.

    334,379  
  279,912    

Metropole Television S.A.*

    3,074,689  
  17,751    

Nexans S.A.*

    862,032  
  265,425    

Peugeot S.A.*

    4,768,150  
  173,902    

Publicis Groupe S.A.

    6,041,753  
  172,938    

Rexel S.A.*

    1,820,806  
  12,552    

Rothschild & Co.*

    323,073  
  233,838    

Sanofi

    21,114,014  
  97,733    

Societe BIC S.A.

    4,681,472  
  150,890    

Societe Generale S.A.*

    2,050,280  
  260,034    

Total SE

    7,878,174  
   

 

 

 
      105,722,667  
   

 

 

 
      Georgia - 0.1%  
  68,559    

TBC Bank Group plc*

    816,792  
   

 

 

 
      Germany - 2.6%  
  33,340    

Allianz SE

    5,872,994  
  14,141    

Aurubis AG

    904,649  
  45,652    

Bayer AG

    2,145,211  
  19,477    

Bilfinger SE(2)

    357,037  
  118,072    

CECONOMY AG*

    522,190  
  34,344    

Daimler AG

    1,775,189  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  43  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Germany - 2.6% - (continued)  
  275,152    

Deutsche Bank AG*

  $ 2,542,717  
  90,864    

Deutsche Post AG

    4,028,726  
  10,186    

Draegerwerk AG & Co. KGaA

    818,433  
  17,823    

DWS Group GmbH & Co. KgaA*(3)

    605,187  
  6,938    

Flatex AG*

    371,696  
  178,390    

Fresenius Medical Care AG & Co. KGaA

    13,622,248  
  93,729    

Fresenius SE & Co. KGaA

    3,476,731  
  11,437    

Hochtief AG

    841,370  
  3,770    

Hornbach Holding AG & Co. KGaA

    363,113  
  36,424    

KION Group AG

    2,838,190  
  12,951    

Norma Group SE

    401,821  
  126,953    

ProSiebenSat.1 Media SE*

    1,416,857  
  40,441    

Rocket Internet SE

    876,053  
  57,657    

Takkt AG*

    612,710  
  15,103    

Wacker Chemie AG

    1,457,017  
   

 

 

 
      45,850,139  
   

 

 

 
      Gibraltar - 0.0%  
  108,440    

888 Holdings plc

    376,839  
   

 

 

 
      Hong Kong - 2.9%  
  267,000    

Bank of East Asia Ltd.

    481,672  
  1,400,000    

BOC Hong Kong Holdings Ltd.

    3,888,481  
  1,784,000    

Brilliance China Automotive Holdings Ltd.

    1,539,969  
  602,600    

China Gas Holdings Ltd.

    1,851,820  
  273,000    

China Mobile Ltd.

    1,669,815  
  970,000    

China Overseas Grand Oceans Group Ltd.

    566,235  
  918,500    

China Overseas Land & Investment Ltd.

    2,307,079  
  2,126,000    

China Traditional Chinese Medicine Co., Ltd.

    849,547  
  4,300,000    

China Travel International Investment Hong Kong Ltd.*

    550,289  
  1,618,000    

China Unicom Hong Kong Ltd.

    997,318  
  504,000    

CK Asset Holdings Ltd.

    2,340,319  
  401,200    

Dah Sing Banking Group Ltd.

    345,200  
  111,600    

Dah Sing Financial Holdings Ltd.

    277,979  
  285,000    

Emperor Entertainment Hotel Ltd.

    37,596  
  11,954,000    

GCL-Poly Energy Holdings Ltd.*(2)

    548,953  
  1,430,000    

Guangdong Investment Ltd.

    2,120,846  
  264,000    

Hang Lung Group Ltd.

    586,030  
  1,060,000    

Hang Lung Properties Ltd.

    2,580,558  
  42,200    

Hang Seng Bank Ltd.

    650,135  
  216,000    

Henderson Land Development Co., Ltd.

    762,929  
  91,400    

Hongkong Land Holdings Ltd.

    335,544  
  531,000    

Hysan Development Co., Ltd.

    1,692,876  
  276,000    

Kerry Properties Ltd.

    677,174  
  271,500    

Kingboard Holdings Ltd.

    919,583  
  4,026,000    

Kunlun Energy Co., Ltd.

    2,606,446  
  129,500    

NetDragon Websoft Holdings Ltd.

    278,593  
  482,000    

Nine Dragons Paper Holdings Ltd.

    642,907  
  962,000    

Pacific Textiles Holdings Ltd.

    548,925  
  929,000    

PAX Global Technology Ltd.

    539,886  
  68,000    

Qingling Motors Co., Ltd. Class H

    12,119  
  321,000    

Shenzhen International Holdings Ltd.

    499,849  
  256,000    

Sino Land Co., Ltd.

    303,380  
  324,500    

Sun Hung Kai Properties Ltd.

    4,176,903  
  708,800    

Swire Properties Ltd.

    1,902,054  
  41,000    

TAI Cheung Holdings Ltd.

    24,099  
  713,000    

TCL Electronics Holdings Ltd.

    484,318  
  435,000    

Times Neighborhood Holdings Ltd.

    442,267  
  141,000    

Vinda International Holdings Ltd.

    374,179  
  1,820,000    

WH Group Ltd.(3)

    1,433,479  
  3,026,000    

Xinyi Glass Holdings Ltd.

    6,645,208  
  586,000    

Yuexiu Transport Infrastructure Ltd.

    326,380  
   

 

 

 
      49,818,939  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Hungary - 0.2%  
  128,870    

MOL Hungarian Oil & Gas plc*

  $ 625,782  
  28,423    

OTP Bank Nyrt*

    886,643  
  120,681    

Richter Gedeon Nyrt

    2,463,999  
   

 

 

 
      3,976,424  
   

 

 

 
      India - 0.0%  
  94,307    

GAIL India Ltd. GDR

    609,223  
   

 

 

 
      Indonesia - 0.6%  
  1,157,200    

Indofood CBP Sukses Makmur Tbk PT

    760,142  
  1,683,900    

Indofood Sukses Makmur Tbk PT

    797,678  
  19,235,600    

Industri Jamu Dan Farmasi Sido Muncul Tbk PT

    1,047,419  
  1,569,700    

Link Net Tbk PT

    224,075  
  4,391,400    

Selamat Sempurna Tbk PT

    416,275  
  41,399,600    

Telekomunikasi Indonesia Persero Tbk PT

    7,330,208  
   

 

 

 
      10,575,797  
   

 

 

 
      Ireland - 0.2%  
  1,218,668    

AIB Group plc*

    1,378,539  
  498,558    

Bank of Ireland Group plc*

    1,237,045  
  432,166    

Glenveagh Properties plc*(3)

    370,416  
  129,726    

Kenmare Resources plc

    487,490  
   

 

 

 
      3,473,490  
   

 

 

 
      Isle of Man - 0.1%  
  637,632    

Strix Group plc

    1,854,487  
   

 

 

 
      Israel - 1.3%  
  290,202    

Bank Hapoalim BM

    1,693,999  
  233,412    

Bank Leumi Le-Israel BM

    1,100,078  
  1,074,697    

Bezeq The Israeli Telecommunication Corp. Ltd.*

    1,211,785  
  149,657    

Check Point Software Technologies Ltd.*

    16,995,049  
  21,144    

Isracard Ltd.

    59,654  
  88,700    

Ituran Location and Control Ltd.

    1,255,105  
  1    

Mehadrin Ltd.*

    27  
  142,688    

Phoenix Holdings Ltd.*

    747,929  
   

 

 

 
      23,063,626  
   

 

 

 
      Italy - 1.4%  
  364,471    

Anima Holding S.p.A.(3)

    1,365,589  
  42,739    

Azimut Holding S.p.A.

    720,420  
  63,299    

Banca Farmafactoring S.p.A.*(3)

    292,036  
  173,316    

Cerved Group S.p.A.*

    1,226,345  
  365,649    

Enel S.p.A.

    2,907,093  
  561,266    

Eni S.p.A.

    3,931,693  
  632,197    

Italgas S.p.A.

    3,653,298  
  189,946    

Mediobanca Banca di Credito Finanziario S.p.A.

    1,348,563  
  198,253    

Prysmian S.p.A.

    5,394,940  
  437,970    

Snam S.p.A.

    2,135,577  
  127,399    

Societa Cattolica di Assicurazioni S.c.r.l.*

    629,912  
   

 

 

 
      23,605,466  
   

 

 

 
      Japan - 16.9%  
  107,800    

ADEKA Corp.

    1,394,047  
  107,500    

Aida Engineering Ltd.

    822,198  
  121,700    

Aisin Seiki Co., Ltd.

    3,687,275  
  96,700    

Amada Co., Ltd.

    841,643  
  25,600    

Arcland Sakamoto Co., Ltd.

    493,199  
  24,800    

Arcs Co., Ltd.

    549,010  
  54,300    

Arisawa Manufacturing Co., Ltd.

    474,301  
  75,400    

Asahi Diamond Industrial Co., Ltd.

    345,994  
  18,700    

Asahi Glass Co., Ltd.

    583,925  
  30,900    

Asahi Holdings, Inc.

    1,007,645  
  27,200    

Asahi Yukizai Corp.

    352,115  
  9,000    

Asanuma Corp.

    347,718  
  1,512,300    

Astellas Pharma, Inc.

    20,738,074  
  1,900    

Atsugi Co., Ltd.

    9,395  
  1,500    

Bando Chemical Industries Ltd.

    8,188  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  44  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Japan - 16.9% - (continued)  
  25,700    

Canon Electronics, Inc.

  $ 354,560  
  29,700    

Canon Marketing Japan, Inc.

    632,702  
  428,100    

Citizen Watch Co., Ltd.

    1,134,168  
  3,100    

Corona Corp.

    27,932  
  74,300    

Dai Nippon Printing Co., Ltd.

    1,384,166  
  94,100    

Dai-ichi Life Holdings, Inc.

    1,405,422  
  46,300    

Daiho Corp.

    1,487,666  
  71,700    

Daikyonishikawa Corp.

    397,429  
  1,800    

Dainichi Co., Ltd.

    12,847  
  26,900    

Dainichiseika Color & Chemicals Manufacturing Co., Ltd.

    557,766  
  13,600    

Daito Pharmaceutical Co., Ltd.

    519,548  
  523,700    

Daiwa Securities Group, Inc.

    2,121,937  
  52,200    

Daiwabo Holdings Co., Ltd.

    3,417,227  
  95,900    

DCM Holdings Co., Ltd.

    1,188,265  
  55,000    

DeNA Co., Ltd.

    938,415  
  26,400    

Denso Corp.

    1,230,149  
  57,700    

DIC Corp.

    1,404,754  
  19,900    

Doutor Nichires Holdings Co., Ltd.

    279,355  
  30,800    

Dowa Holdings Co., Ltd.

    881,460  
  36,000    

Eagle Industry Co., Ltd.

    286,393  
  78,000    

EDION Corp.(2)

    768,282  
  61,600    

Exedy Corp.

    776,592  
  124,500    

FCC Co., Ltd.

    2,389,083  
  42,100    

Ferrotec Holdings Corp.

    406,740  
  46,400    

Foster Electric Co., Ltd.

    533,793  
  1,600    

Fujishoji Co., Ltd.

    11,067  
  1,100    

FuKoKu Co., Ltd.

    6,867  
  10,900    

Fukuda Denshi Co., Ltd.

    736,886  
  29,400    

G-Tekt Corp.

    331,261  
  24,100    

Goldcrest Co., Ltd.

    307,935  
  237,400    

Hachijuni Bank Ltd.

    876,735  
  26,300    

Hamakyorex Co., Ltd.

    746,190  
  364,300    

Haseko Corp.

    4,367,643  
  226,500    

Hazama Ando Corp.

    1,407,161  
  35,500    

Heiwa Corp.

    573,931  
  99,000    

Hino Motors Ltd.

    758,511  
  37,400    

Hirano Tecseed Co., Ltd.

    556,800  
  174,100    

Hitachi Ltd.

    5,867,918  
  106,900    

Hokuetsu Kishu Paper Co., Ltd.

    353,122  
  168,900    

Honda Motor Co., Ltd.

    3,994,980  
  57,400    

Hosiden Corp.

    508,875  
  80,900    

Idemitsu Kosan Co., Ltd.

    1,636,119  
  10,500    

Imasen Electric Industrial

    58,878  
  26,000    

Inaba Denki Sangyo Co., Ltd.

    625,910  
  939,800    

Inpex Corp.

    4,456,905  
  309,900    

Isuzu Motors Ltd.

    2,514,372  
  267,000    

ITOCHU Corp.

    6,412,941  
  22,200    

Iwatani Corp.

    1,007,270  
  210,000    

Iyo Bank Ltd.

    1,317,941  
  3,900    

Japan Foundation Engineering Co., Ltd.

    15,947  
  132,000    

Japan Petroleum Exploration Co., Ltd.

    2,087,168  
  47,200    

Japan Post Insurance Co., Ltd.

    748,172  
  211,600    

JGC Holdings Corp.

    1,739,854  
  21,800    

K&O Energy Group, Inc.

    300,226  
  275,100    

Kamigumi Co., Ltd.

    4,921,785  
  91,000    

Kanamoto Co., Ltd.(2)

    1,877,309  
  63,800    

Kandenko Co., Ltd.

    478,774  
  45,500    

Kaneka Corp.

    1,273,282  
  33,600    

Kanematsu Corp.

    398,407  
  42,700    

Kanto Denka Kogyo Co., Ltd.

    288,142  
  50,600    

Kasai Kogyo Co., Ltd.

    167,979  
  690,900    

KDDI Corp.

    18,692,292  
  29,600    

Kinden Corp.

    464,123  
  26,400    

Kintetsu World Express, Inc.

    561,213  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Japan - 16.9% - (continued)  
  18,100    

Kissei Pharmaceutical Co., Ltd.

  $ 356,190  
  22,000    

Kohnan Shoji Co., Ltd.

    751,211  
  35,200    

Kokuyo Co., Ltd.

    478,285  
  26,400    

Komeri Co., Ltd.

    777,265  
  29,600    

Kumagai Gumi Co., Ltd.

    684,149  
  29,700    

Kureha Corp.

    1,260,776  
  31,200    

Kyokuto Kaihatsu Kogyo Co., Ltd.

    384,894  
  45,600    

Kyudenko Corp.

    1,244,480  
  107,900    

Kyushu Electric Power Co., Inc.

    904,574  
  14,300    

Life Corp.

    502,923  
  36,700    

Makino Milling Machine Co., Ltd.

    1,263,225  
  615,200    

Marubeni Corp.

    3,212,086  
  57,300    

MCJ Co., Ltd.

    528,072  
  284,500    

Mitsubishi Gas Chemical Co., Inc.

    5,186,257  
  35,000    

Mitsubishi Logistics Corp.

    921,104  
  34,100    

Mitsubishi Materials Corp.

    625,709  
  22,200    

Mitsuboshi Belting Ltd.

    347,534  
  162,100    

Mitsui & Co., Ltd.

    2,539,052  
  30,800    

Mitsui Mining & Smelting Co., Ltd.

    777,467  
  34,600    

Mitsui Sugar Co., Ltd.

    601,510  
  35,400    

Mizuno Corp.

    592,169  
  23,200    

Modec, Inc.

    337,010  
  3,900    

Murakami Corp.

    96,693  
  105,800    

Musashi Seimitsu Industry Co., Ltd.

    1,105,908  
  88,300    

Nagase & Co., Ltd.

    1,151,444  
  390,000    

Nexon Co., Ltd.

    10,869,649  
  21,700    

Nextage Co., Ltd.

    260,490  
  229,000    

NHK Spring Co., Ltd.

    1,384,675  
  16,200    

Nichias Corp.

    350,865  
  4,000    

Nichireki Co., Ltd.

    64,506  
  10,868    

Nichirin Co., Ltd.

    144,037  
  41,700    

Nikkon Holdings Co., Ltd.

    798,082  
  247,800    

Nikon Corp.

    1,510,182  
  18,500    

Nippo Corp.

    475,194  
  14,100    

Nippon Carbon Co., Ltd.

    490,939  
  71,700    

Nippon Electric Glass Co., Ltd.

    1,410,193  
  132,400    

Nippon Kayaku Co., Ltd.

    1,139,398  
  96,950    

Nippon Light Metal Holdings Co., Ltd.

    1,531,265  
  31,900    

Nippon Pillar Packing Co., Ltd.

    434,806  
  26,600    

Nippon Seiki Co., Ltd.

    299,855  
  29,400    

Nippon Shokubai Co., Ltd.

    1,439,675  
  23,700    

Nippon Soda Co., Ltd.

    621,953  
  475,400    

Nippon Telegraph & Telephone Corp.

    10,000,435  
  53,300    

Nishio Rent All Co., Ltd.

    1,034,452  
  15,000    

Nisshin Oillio Group Ltd.

    431,174  
  22,200    

Nitta Corp.

    468,114  
  13,700    

Nojima Corp.

    384,491  
  137,100    

NOK Corp.

    1,563,490  
  295,800    

Nomura Holdings, Inc.

    1,324,722  
  12,400    

Noritake Co. Ltd.

    364,771  
  373,100    

Obayashi Corp.

    3,122,227  
  635,000    

Oji Holdings Corp.

    2,676,155  
  47,400    

Okamura Corp.

    361,996  
  51,400    

Okinawa Cellular Telephone Co.

    2,058,359  
  20,600    

Okura Industrial Co., Ltd.

    342,419  
  78,800    

Open House Co., Ltd.

    2,683,309  
  65,000    

Osaki Electric Co., Ltd.

    392,127  
  28,500    

Oyo Corp.

    327,180  
  238,100    

Penta-Ocean Construction Co., Ltd.

    1,509,835  
  36,000    

Piolax, Inc.

    528,102  
  198,500    

Press Kogyo Co., Ltd.

    528,249  
  159,600    

Rengo Co., Ltd.

    1,227,953  
  26,100    

Ryosan Co., Ltd.

    482,843  
  29,200    

Sanki Engineering Co., Ltd.

    316,576  
  2,000    

Sanko Metal Industrial Co., Ltd.

    47,975  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  45  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Japan - 16.9% - (continued)  
  13,000    

Sanyo Chemical Industries Ltd.

  $ 550,912  
  46,900    

Sawai Pharmaceutical Co., Ltd.

    2,260,561  
  18,600    

SEC Carbon Ltd.(2)

    1,001,415  
  321,900    

Seino Holdings Co., Ltd.

    4,159,708  
  234,000    

Sekisui House Ltd.

    3,887,513  
  42,300    

Sekisui Jushi Corp.

    854,161  
  89,000    

Shikoku Chemicals Corp.

    980,310  
  19,800    

Shimachu Co., Ltd.

    1,046,571  
  310,900    

Shimizu Corp.

    2,158,689  
  17,600    

Shinko Electric Industries Co., Ltd.

    307,047  
  70,600    

Shinnihon Corp.

    589,293  
  32,200    

Shionogi & Co., Ltd.

    1,518,872  
  108,700    

Shizuoka Bank Ltd.

    731,088  
  33,000    

Shizuoka Gas Co., Ltd.

    290,206  
  43,000    

Sintokogio Ltd.

    296,750  
  29,500    

SK-Electronics Co., Ltd.*

    314,616  
  327,100    

SKY Perfect JSAT Holdings, Inc.

    1,396,385  
  197,600    

Softbank Corp.

    2,299,563  
  26,700    

Sumitomo Bakelite Co., Ltd.

    755,687  
  125,600    

Sumitomo Corp.

    1,374,136  
  383,800    

Sumitomo Electric Industries Ltd.

    4,237,180  
  115,500    

Sumitomo Forestry Co., Ltd.

    1,819,422  
  87,700    

Sumitomo Heavy Industries Ltd.

    1,879,698  
  146,500    

Sumitomo Mitsui Construction Co., Ltd.

    565,407  
  43,000    

Sumitomo Mitsui Financial Group, Inc.

    1,190,322  
  140,800    

Sumitomo Rubber Industries Ltd.

    1,238,508  
  33,600    

Sumitomo Seika Chemicals Co., Ltd.

    1,069,602  
  28,400    

Sumitomo Warehouse Co., Ltd. (The)

    332,193  
  32,900    

Tachi-S Co., Ltd.

    332,409  
  55,300    

Tadano Ltd.

    423,244  
  19,000    

Taihei Dengyo Kaisha Ltd.

    410,516  
  106,300    

Taisei Corp.

    3,307,833  
  12,500    

Taiyo Holdings Co., Ltd.

    654,409  
  56,600    

Takuma Co., Ltd.

    866,682  
  20,300    

Tamron Co., Ltd.

    302,996  
  107,100    

Toagosei Co., Ltd.

    1,133,930  
  25,100    

Tokai Corp.

    489,637  
  41,700    

Tokai Rika Co., Ltd.

    653,475  
  74,200    

Tokuyama Corp.

    1,653,670  
  63,600    

Tokyo Broadcasting System Holdings, Inc.

    982,142  
  9,600    

Tokyotokeiba Co., Ltd.

    477,891  
  174,300    

Tokyu Construction Co., Ltd.

    767,031  
  301,300    

Toppan Printing Co., Ltd.

    3,831,449  
  74,800    

Topre Corp.

    751,873  
  561,800    

Toray Industries, Inc.

    2,542,090  
  9,900    

Torii Pharmaceutical Co., Ltd.

    281,082  
  110,500    

Toshiba Corp.

    2,795,192  
  105,600    

Toyo Construction Co., Ltd.

    404,292  
  38,200    

Toyo Ink SC Holdings Co., Ltd.

    709,766  
  22,200    

Toyo Kanetsu KK

    475,162  
  120,100    

Toyo Seikan Group Holdings Ltd.

    1,122,024  
  38,400    

Toyo Tanso Co., Ltd.

    647,902  
  21,400    

Toyoda Gosei Co., Ltd.

    543,879  
  36,100    

Toyota Boshoku Corp.

    524,382  
  102,200    

Toyota Tsusho Corp.

    2,851,922  
  44,400    

TPR Co., Ltd.

    531,667  
  5,700    

Trancom Co., Ltd.

    409,567  
  75,800    

TS Tech Co., Ltd.

    2,098,050  
  34,400    

Tsubakimoto Chain Co.

    763,844  
  11,900    

Tsumura & Co.

    349,281  
  20,200    

Tv Tokyo Holdings Corp.

    450,365  
  65,900    

Ube Industries Ltd.

    1,131,367  
  75,400    

Unipres Corp.

    584,062  
  36,700    

United Super Markets Holdings, Inc.

    394,791  
  34,000    

Ushio, Inc.

    379,802  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Japan - 16.9% - (continued)  
  3,100    

Utoc Corp.

  $ 13,928  
  15,800    

Valor Holdings Co., Ltd.

    389,232  
  92,000    

Wakita & Co., Ltd.

    952,367  
  52,900    

Yokogawa Bridge Holdings Corp.

    936,357  
  77,000    

Yokohama Rubber Co., Ltd.

    1,106,058  
  18,500    

Yuasa Trading Co., Ltd.

    527,043  
  54,500    

Yurtec Corp.

    329,781  
  98,600    

Zenkoku Hosho Co., Ltd.

    3,888,580  
   

 

 

 
      295,953,811  
   

 

 

 
      Luxembourg - 0.3%  
  101,746    

RTL Group S.A.*

    3,866,039  
  166,565    

Tenaris S.A.

    794,853  
   

 

 

 
      4,660,892  
   

 

 

 
      Malaysia - 0.6%  
  48,400    

AFFIN Bank Bhd

    15,944  
  396,800    

AMMB Holdings Bhd

    272,311  
  9,062,400    

Astro Malaysia Holdings Bhd

    1,593,032  
  1,628,800    

Genting Bhd

    1,161,107  
  768,200    

Lingkaran Trans Kota Holdings Bhd

    721,694  
  1,992,286    

Lynas Corp. Ltd.*

    3,963,755  
  1,202,300    

My EG Services Bhd

    397,806  
  117,000    

Petronas Gas Bhd

    443,845  
  944,900    

RHB Bank Bhd

    961,683  
  186,200    

Scientex BHD

    532,759  
  635,200    

VS Industry Bhd

    358,180  
   

 

 

 
      10,422,116  
   

 

 

 
      Mexico - 1.0%  
  80,102    

America Movil S.A.B. de C.V. Class L, ADR

    954,816  
  705,000    

Banco del Bajio S.A.*(3)

    584,633  
  1,529,501    

Bolsa Mexicana de Valores S.A.B. de C.V.

    3,113,587  
  3,587,200    

Concentradora Fibra Danhos S.A. de C.V. REIT(2)

    3,240,259  
  658,100    

Gentera S.A.B. de C.V.*

    155,128  
  437,100    

GMexico Transportes S.A.B. de C.V.(2)(3)

    518,878  
  236,900    

Grupo Financiero Banorte S.A.B. de C.V. Class O*

    1,056,537  
  1,043,300    

Grupo Financiero Inbursa S.A.B. de C.V. Class O*

    773,197  
  23,825    

Industrias Penoles S.A.B. de C.V.

    380,544  
  3,750,033    

Kimberly-Clark de Mexico S.A.B. de C.V. Class A

    5,600,785  
  583,200    

Megacable Holdings S.A.B. de C.V. UNIT

    1,847,632  
  2    

Urbi Desarrollos Urbanos S.A.B. de C.V.*

    1  
   

 

 

 
      18,225,997  
   

 

 

 
      Monaco - 0.2%  
  167,847    

Endeavour Mining Corp.*

    4,117,121  
   

 

 

 
      Netherlands - 2.4%  
  20,037    

AMG Advanced Metallurgical Group N.V.

    360,682  
  332,897    

ASR Nederland N.V.

    10,101,919  
  226,365    

ING Groep N.V.*

    1,550,536  
  21,747    

Intertrust N.V.(3)

    337,185  
  156,435    

NN Group N.V.

    5,444,084  
  3,596,154    

Pharming Group N.V.*(2)

    3,739,280  
  589,673    

PostNL N.V.*

    1,955,782  
  708,619    

Royal Dutch Shell plc Class A(2)

    8,983,433  
  391,649    

Royal Dutch Shell plc Class B

    4,723,026  
  138,459    

Signify N.V.*(3)

    4,914,647  
   

 

 

 
      42,110,574  
   

 

 

 
      New Zealand - 0.1%  
  380,495    

Freightways Ltd.

    2,111,575  
   

 

 

 
      Norway - 2.0%  
  64,802    

Austevoll Seafood ASA

    441,399  
  1,039,072    

Equinor ASA

    13,258,257  
  234,105    

Europris ASA(3)

    1,216,840  
  186,850    

Frontline Ltd.

    1,036,982  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  46  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Norway - 2.0% - (continued)  
  175,415    

Nordic American Tankers Ltd.(2)

  $ 510,458  
  1,044,647    

Norsk Hydro ASA*

    2,935,839  
  984,152    

Telenor ASA

    15,207,392  
   

 

 

 
      34,607,167  
   

 

 

 
      Peru - 0.0%  
  124,032    

Hochschild Mining plc*

    353,810  
   

 

 

 
      Philippines - 0.0%  
  373,000    

Metropolitan Bank & Trust Co.

    313,525  
   

 

 

 
      Poland - 0.8%  
  10,893    

Grupa Kety S.A.

    1,129,695  
  57,104    

Grupa Lotos S.A.

    402,735  
  89,217    

KGHM Polska Miedz S.A.*

    2,669,558  
  119,449    

Polski Koncern Naftowy ORLEN S.A.

    1,151,268  
  2,858,363    

Polskie Gornictwo Naftowe i Gazownictwo S.A.

    3,014,280  
  813,844    

Powszechna Kasa Oszczednosci Bank Polski S.A.*

    3,904,173  
  9,654    

Santander Bank Polska S.A.*

    300,512  
  7,379    

TEN Square Games S.A.

    1,179,816  
  46,691    

Warsaw Stock Exchange

    508,153  
   

 

 

 
      14,260,190  
   

 

 

 
      Portugal - 0.0%  
  103,019    

NOS SGPS S.A.

    354,053  
   

 

 

 
      Russia - 1.4%  
  125,958    

Gazprom PJSC ADR

    482,552  
  64,397    

Globaltrans Investment plc GDR

    364,262  
  90,029    

LUKOIL PJSC ADR

    4,603,971  
  119,183    

MMC Norilsk Nickel PJSC ADR

    2,840,655  
  148,918    

Mobile TeleSystems PJSC ADR

    1,164,539  
  76,021    

PhosAgro PJSC GDR

    875,948  
  272,619    

Polymetal International plc

    5,794,380  
  35,705    

Polyus PJSC GDR

    3,511,911  
  539,390    

RusHydro PJSC ADR

    463,269  
  651,414    

Surgutneftegas PJSC ADR

    2,675,591  
  27,928    

Tatneft PJSC ADR

    867,953  
   

 

 

 
      23,645,031  
   

 

 

 
      Singapore - 1.2%  
  74,100    

BOC Aviation Ltd.(3)

    458,838  
  31,600    

China Yuchai International Ltd.

    550,788  
  358,500    

DBS Group Holdings Ltd.

    5,340,163  
  1,400,000    

IGG, Inc.

    1,515,485  
  965,300    

Oversea-Chinese Banking Corp. Ltd.

    5,953,725  
  224,300    

Riverstone Holdings Ltd.

    624,874  
  205,600    

United Overseas Bank Ltd.

    2,856,698  
  790,100    

UOL Group Ltd.

    3,601,428  
   

 

 

 
      20,901,999  
   

 

 

 
      South Africa - 2.8%  
  76,147    

AECI Ltd.

    356,877  
  93,593    

Anglo American Platinum Ltd.

    6,197,254  
  226,999    

AngloGold Ashanti Ltd. ADR

    5,252,757  
  666,625    

AVI Ltd.

    3,012,844  
  268,724    

Barloworld Ltd.

    944,149  
  518,799    

Gold Fields Ltd. ADR

    5,670,473  
  576,187    

Harmony Gold Mining Co., Ltd. ADR*

    2,829,078  
  94,262    

Hudaco Industries Ltd.

    458,129  
  364,245    

Impala Platinum Holdings Ltd.

    3,241,897  
  351,191    

MTN Group Ltd.

    1,253,931  
  68,754    

MultiChoice Group Ltd.

    567,006  
  4,458    

Naspers Ltd. Class N

    870,324  
  4,461,943    

Netcare Ltd.

    3,536,927  
  391,903    

Northam Platinum Ltd.*

    3,765,376  
  73,987    

Oceana Group Ltd.

    270,056  
  1,074,205    

RMB Holdings Ltd.

    71,046  
  89,111    

Royal Bafokeng Platinum Ltd.*

    321,317  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      South Africa - 2.8% - (continued)  
  278,954    

Sanlam Ltd.

  $ 813,684  
  227,873    

Standard Bank Group Ltd.

    1,490,037  
  200,209    

Truworths International Ltd.

    384,701  
  946,985    

Vodacom Group Ltd.

    7,136,455  
   

 

 

 
      48,444,318  
   

 

 

 
      South Korea - 7.5%  
  6,959    

AfreecaTV Co., Ltd.

    368,984  
  30,450    

Asia Paper Manufacturing Co., Ltd.

    830,748  
  131,840    

BH Co., Ltd.*

    2,388,885  
  7,027    

CJ CheilJedang Corp.

    2,247,352  
  10,034    

Com2uSCorp

    989,587  
  30,013    

Daeduck Co., Ltd.(1)

    163,270  
  25,127    

Daelim Industrial Co., Ltd.

    1,736,651  
  19,133    

Daesang Corp.

    406,901  
  34,429    

DB HiTek Co., Ltd.

    977,522  
  13,797    

DB Insurance Co., Ltd.

    539,409  
  47,330    

DongKook Pharmaceutical Co., Ltd.

    1,012,611  
  14,160    

DoubleUGames Co., Ltd.

    773,038  
  6,010    

E-Mart, Inc.

    756,647  
  15,137    

Echo Marketing, Inc.

    318,990  
  17,476    

Ecopro Co., Ltd.

    663,492  
  7,467    

Eo Technics Co., Ltd.

    582,639  
  18,566    

Eugene Technology Co., Ltd.

    445,493  
  6,878    

GS Home Shopping, Inc.

    843,982  
  138,428    

Hana Financial Group, Inc.

    3,739,281  
  18,238    

Handsome Co., Ltd.

    450,922  
  79,766    

Hankook Tire & Technology Co., Ltd.

    2,234,583  
  12,182    

Hansol Chemical Co., Ltd.

    1,519,786  
  93,012    

Hanwha Chemical Corp.

    3,615,528  
  31,319    

Hanyang Eng Co., Ltd.

    304,169  
  7,546    

Huons Co., Ltd.

    372,987  
  27,797    

Hyundai Department Store Co., Ltd.

    1,459,919  
  22,580    

Hyundai Engineering & Construction Co., Ltd.

    615,556  
  5,371    

Hyundai Glovis Co., Ltd.

    798,214  
  35,233    

Hyundai Greenfood Co., Ltd.

    226,624  
  6,416    

Hyundai Home Shopping Network Corp.

    401,175  
  23,441    

Hyundai Mobis Co., Ltd.

    4,696,721  
  23,751    

Hyundai Motor Co.

    3,476,577  
  7,574    

InnoWireless, Inc.

    338,364  
  30,973    

INTOPS Co., Ltd.

    446,144  
  115,243    

KB Financial Group, Inc.

    4,122,218  
  3,804    

KCC Corp.

    516,236  
  66,908    

KEPCO Plant Service & Engineering Co., Ltd.

    1,625,767  
  67,782    

Kginicis Co., Ltd.

    1,132,824  
  101,808    

Kia Motors Corp.

    4,566,001  
  7,236    

KIWOOM Securities Co., Ltd.

    661,917  
  10,965    

Kolmar BNH Co., Ltd.

    504,494  
  2,298    

Korea Petrochemical Ind Co., Ltd.

    395,051  
  31,466    

Kortek Corp.

    223,182  
  59,066    

KT Skylife Co., Ltd.

    496,003  
  62,607    

KT&G Corp.

    4,470,399  
  11,425    

Kumho Petrochemical Co., Ltd.

    1,351,441  
  67,479    

LG Corp.

    4,040,578  
  104,937    

LG Display Co., Ltd.*

    1,310,297  
  97,749    

LG Electronics, Inc.

    7,266,606  
  10,965    

LG Innotek Co., Ltd.

    1,486,487  
  10,897    

Lotte Chemical Corp.

    2,253,654  
  20,625    

Lotte Corp.

    519,894  
  46,070    

LOTTE Fine Chemical Co., Ltd.

    1,978,813  
  9,141    

LS Corp.

    418,744  
  15,931    

Mcnex Co., Ltd.

    467,329  
  86,970    

Mirae Asset Daewoo Co., Ltd.

    647,961  
  14,040    

NCSoft Corp.

    9,646,657  
  88,082    

NH Investment & Securities Co., Ltd.

    746,252  
  6,919    

NHN Corp.*

    425,795  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  47  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      South Korea - 7.5% - (continued)  
  15,479    

OCI Co., Ltd.*

  $ 852,249  
  1,324    

Orion Corp/Republic of Korea

    126,864  
  139,200    

Pan Ocean Co., Ltd.*

    443,203  
  40,861    

Partron Co., Ltd.

    351,755  
  5,887    

POSCO

    1,086,765  
  36,315    

Sammok S-Form Co., Ltd.

    240,805  
  20,680    

Samsung Card Co., Ltd.

    536,698  
  231,605    

Samsung Electronics Co., Ltd.

    11,641,766  
  4,271    

Samsung Electronics Co., Ltd. GDR

    5,388,167  
  90,445    

Samsung Engineering Co., Ltd.*

    945,728  
  32,897    

Samsung Securities Co., Ltd.

    937,082  
  634,176    

Seohee Construction Co., Ltd.

    636,077  
  12,783    

SFA Engineering Corp.

    412,539  
  13,569    

Shindaeyang Paper Co., Ltd.

    613,138  
  29,771    

Shinhan Financial Group Co., Ltd.

    807,755  
  7,977    

Silicon Works Co., Ltd.

    321,654  
  8,380    

SK Discovery Co., Ltd.

    467,946  
  45,773    

SK Hynix, Inc.

    3,247,267  
  10,068    

SK Telecom Co., Ltd.

    1,909,181  
  17,898    

Soulbrain Co., Ltd.*

    3,429,122  
  22,135    

Soulbrain Holdings Co., Ltd.

    843,778  
  16,337    

Spigen Korea Co., Ltd.

    900,664  
  304    

Taekwang Industrial Co., Ltd.

    191,371  
  5,289    

Tokai Carbon Korea Co., Ltd.

    432,545  
  16,888    

Webzen, Inc.*

    478,773  
  23,945    

Wonik IPS Co., Ltd*

    683,124  
  10,343    

Youngone Holdings Co., Ltd.

    326,091  
  7,166    

Zinus, Inc.

    559,048  
   

 

 

 
      130,828,506  
   

 

 

 
      Spain - 1.0%  
  13,440    

Acciona S.A.

    1,357,931  
  68,192    

Acerinox S.A.*

    541,327  
  119,821    

Atresmedia Corp. de Medios de Comunicacion S.A.

    313,987  
  498,265    

Banco Bilbao Vizcaya Argentaria S.A.

    1,437,570  
  76,403    

Faes Farma S.A.

    287,931  
  305,678    

Mediaset Espana Comunicacion S.A.*(2)

    1,021,947  
  874,960    

Prosegur Cash S.A.(3)

    676,907  
  285,834    

Red Electrica Corp. S.A.

    5,034,819  
  792,151    

Repsol S.A.

    4,973,175  
  233,781    

Sacyr S.A.

    397,570  
  164,365    

Zardoya Otis S.A.

    1,004,099  
   

 

 

 
      17,047,263  
   

 

 

 
      Sweden - 1.3%  
  59,910    

Betsson AB*

    456,485  
  81,120    

Boliden AB

    2,212,069  
  17,394    

Bure Equity AB

    504,733  
  255,255    

Essity AB Class B(2)

    7,387,920  
  157,411    

Hexpol AB*

    1,386,378  
  42,700    

Intrum AB(2)

    1,043,457  
  79,218    

LeoVegas AB(3)

    265,031  
  796,020    

Telefonaktiebolaget LM Ericsson Class B

    8,887,177  
  111,733    

Tethys Oil AB

    466,477  
   

 

 

 
      22,609,727  
   

 

 

 
      Switzerland - 4.1%  
  9,748    

Baloise Holding AG

    1,333,090  
  582,156    

Credit Suisse Group AG

    5,490,529  
  133,951    

Ferrexpo plc

    330,565  
  290,755    

Novartis AG

    22,656,379  
  71,660    

Roche Holding AG

    23,026,604  
  19,231    

Swisscom AG

    9,780,903  
  8,244    

Swissquote Group Holding S.A.

    656,448  
  539,715    

UBS Group AG

    6,283,346  
  7,912    

Zurich Insurance Group AG

    2,627,936  
   

 

 

 
      72,185,800  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Taiwan - 7.7%  
  48,000    

Addcn Technology Co., Ltd.

  $ 347,487  
  240,000    

Asia Vital Components Co., Ltd.

    565,752  
  8,744,000    

AU Optronics Corp.*

    3,531,554  
  58,000    

AURAS Technology Co., Ltd.

    445,642  
  252,000    

Catcher Technology Co., Ltd.

    1,593,022  
  2,903,000    

Cathay Financial Holding Co., Ltd.

    3,900,858  
  178,000    

Chenbro Micom Co., Ltd.

    540,987  
  281,000    

Chia Chang Co., Ltd.

    377,143  
  1,310,000    

Chicony Electronics Co., Ltd.

    3,949,426  
  164,000    

Chicony Power Technology Co., Ltd.

    383,593  
  1,346,200    

China Life Insurance Co., Ltd.

    902,771  
  250,400    

China Motor Corp.*

    389,131  
  952,000    

Chipbond Technology Corp.

    2,085,484  
  1,008,000    

Compeq Manufacturing Co., Ltd.

    1,538,480  
  389,000    

Coretronic Corp.

    466,173  
  722,000    

Delta Electronics, Inc.

    4,803,768  
  731,000    

Elan Microelectronics Corp.

    3,453,045  
  271,000    

Elite Material Co., Ltd.

    1,423,903  
  516,000    

Epistar Corp.*

    606,053  
  2,592,000    

Evergreen Marine Corp. Taiwan Ltd.*

    1,714,912  
  365,000    

FLEXium Interconnect, Inc.

    1,490,237  
  320,000    

Foxconn Technology Co., Ltd.

    561,211  
  62,000    

Foxsemicon Integrated Technology, Inc.

    376,280  
  585,000    

Fusheng Precision Co., Ltd.

    3,687,431  
  527,000    

Gamania Digital Entertainment Co., Ltd.

    1,128,142  
  135,000    

General Interface Solution Holding Ltd.

    536,825  
  168,000    

Gigabyte Technology Co., Ltd.

    422,724  
  607,000    

Grand Pacific Petrochemical*

    483,606  
  333,000    

Grape King Bio Ltd.

    1,934,663  
  1,626,829    

Hannstar Board Corp.

    2,231,372  
  2,439,000    

HannStar Display Corp.*

    783,267  
  733,000    

Holtek Semiconductor, Inc.

    1,807,697  
  482,000    

Hon Hai Precision Industry Co., Ltd.

    1,307,247  
  548,000    

HTC Corp.*

    550,907  
  413,038    

Innodisk Corp.

    2,164,892  
  8,512,000    

Innolux Corp.*

    2,954,418  
  143,000    

International Games System Co., Ltd.

    3,763,021  
  99,000    

King Slide Works Co., Ltd.

    997,670  
  399,000    

Kinsus Interconnect Technology Corp.

    966,359  
  88,000    

Kung Long Batteries Industrial Co., Ltd.

    421,823  
  2,132,000    

Lite-On Technology Corp.

    3,472,851  
  65,000    

Lotes Co., Ltd.

    993,755  
  125,000    

Makalot Industrial Co., Ltd.

    828,583  
  208,000    

Micro-Star International Co., Ltd.

    838,430  
  833,336    

Mitac Holdings Corp.

    823,170  
  199,000    

Nien Made Enterprise Co., Ltd.

    2,243,551  
  1,043,000    

Novatek Microelectronics Corp.

    9,746,976  
  757,000    

Pegatron Corp.

    1,631,356  
  67,000    

Phison Electronics Corp.

    697,435  
  321,000    

Polytronics Technology Corp.

    1,035,016  
  722,000    

Powertech Technology, Inc.

    2,136,279  
  55,000    

Poya International Co., Ltd.

    1,187,911  
  879,000    

Radiant Opto-Electronics Corp.

    3,463,273  
  493,000    

Realtek Semiconductor Corp.

    6,141,514  
  153,000    

Shin Zu Shing Co., Ltd.

    760,813  
  333,000    

Shinkong Insurance Co., Ltd.

    419,268  
  245,000    

Sigurd Microelectronics Corp.

    323,760  
  327,000    

Simplo Technology Co., Ltd.

    3,647,477  
  529,000    

Sinbon Electronics Co., Ltd.

    3,566,001  
  116,000    

Sinmag Equipment Corp.

    312,785  
  649,000    

Sino-American Silicon Products, Inc.

    2,267,382  
  25,600    

Sirtec International Co., Ltd.

    23,384  
  227,000    

Sunonwealth Electric Machine Industry Co., Ltd.

    465,123  
  85,000    

Swancor Holding Co., Ltd.

    470,270  
  666,000    

Synnex Technology International Corp.

    989,804  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  48  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      Taiwan - 7.7% - (continued)  
  343,000    

Thinking Electronic Industrial Co., Ltd.

  $ 1,302,969  
  70,000    

Tong Hsing Electronic Industries Ltd.

    308,980  
  296,000    

Topco Scientific Co., Ltd.

    1,186,736  
  520,000    

TPK Holding Co., Ltd.*

    917,707  
  724,000    

Tripod Technology Corp.

    2,879,114  
  311,000    

TXC Corp.

    838,787  
  1,076,000    

Unimicron Technology Corp.

    2,571,007  
  320,000    

United Integrated Services Co., Ltd.

    2,221,778  
  6,832,000    

United Microelectronics Corp.

    7,342,696  
  817,000    

Walsin Lihwa Corp.

    507,682  
  1,143,000    

Walton Advanced Engineering, Inc.*

    428,488  
  267,000    

WPG Holdings Ltd.

    362,650  
  265,000    

Yageo Corp.

    3,301,315  
  404,343    

Yulon Motor Co., Ltd.*

    504,119  
  341,000    

Zippy Technology Corp.

    380,765  
   

 

 

 
      135,129,936  
   

 

 

 
      Thailand - 1.1%  
  209,400    

Advanced Info Service PCL NVDR

    1,158,273  
  1,631,900    

Bangkok Bank PCL NVDR

    5,055,169  
  468,100    

Dhipaya Insurance PCL NVDR

    348,326  
  1,952,300    

Kasikornbank PCL NVDR

    4,767,519  
  392,100    

Kiatnakin Bank PCL NVDR

    496,460  
  3,865,800    

Krung Thai Bank PCL NVDR

    1,071,564  
  1,745,100    

Siam Commercial Bank PCL NVDR

    3,633,524  
  20,783,400    

TMB Bank PCL NVDR

    539,157  
  7,364,200    

TTW PCL NVDR

    2,740,382  
   

 

 

 
      19,810,374  
   

 

 

 
      Turkey - 1.0%  
  129,629    

Anadolu Efes Biracilik Ve Malt Sanayii AS

    301,173  
  181,398    

Arcelik A.S.*

    583,364  
  552,053    

BIM Birlesik Magazalar A.S.

    4,364,789  
  77,490    

Coca-Cola Icecek AS*

    416,285  
  2,646,635    

Enka Insaat ve Sanayi AS

    2,285,783  
  955,983    

Eregli Demir ve Celik Fabrikalari T.A.S.

    1,093,214  
  60,018    

Ford Otomotiv Sanayi AS

    776,480  
  391,991    

KOC Holding A.S.

    663,534  
  91,308    

Tofas Turk Otomobil Fabrikasi AS

    292,376  
  1,279,577    

Turk Telekomunikasyon AS

    979,394  
  26,155    

Turk Traktor ve Ziraat Makineleri AS

    353,914  
  3,150,053    

Turkcell Iletisim Hizmetleri AS

    5,454,611  
  112,907    

Ulker Biskuvi Sanayi AS*

    272,331  
  64,339    

Vestel Beyaz Esya Sanayi ve Ticaret AS

    229,269  
   

 

 

 
      18,066,517  
   

 

 

 
      United Kingdom - 10.2%  
  594,188    

Airtel Africa Plc(3)

    474,984  
  256,030    

Ashmore Group plc

    1,184,535  
  40,383    

Associated British Foods plc

    888,093  
  999,090    

Aviva plc

    3,332,538  
  663,626    

B&M European Value Retail S.A.

    4,164,856  
  566,872    

Babcock International Group plc

    1,596,927  
  4,048,249    

Barclays plc*

    5,611,169  
  524,545    

Barratt Developments plc*

    3,278,713  
  88,879    

Beazley plc

    338,831  
  117,410    

Bellway plc

    3,552,260  
  276,479    

Brewin Dolphin Holdings plc

    870,243  
  110,966    

British American Tobacco plc

    3,517,109  
  236,617    

Britvic plc

    2,261,025  
  868,886    

BT Group plc

    1,141,151  
  375,440    

Cairn Energy plc*

    676,071  
  27,658    

Central Asia Metals plc

    60,386  
  315,849    

Clinigen Group plc

    2,464,181  
  156,732    

Countryside Properties plc(3)

    684,548  
  318,469    

Crest Nicholson Holdings plc*

    905,640  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 98.4% - (continued)  
      United Kingdom - 10.2% - (continued)  
  325,074    

Devro plc

  $ 635,911  
  583,120    

Direct Line Insurance Group plc

    1,992,758  
  83,239    

Gamesys Group plc

    1,253,055  
  1,181,166    

GlaxoSmithKline plc

    19,723,676  
  197,725    

GoCo Group plc

    246,675  
  789,440    

Gulf Keystone Petroleum Ltd.

    715,903  
  242,925    

Headlam Group plc

    837,127  
  201,486    

Hikma Pharmaceuticals plc

    6,551,007  
  1,615,564    

HSBC Holdings plc

    6,770,171  
  1,341,200    

HSBC Holdings plc(2)

    5,602,214  
  115,910    

Hunting plc

    209,475  
  747,630    

IG Group Holdings plc

    7,377,988  
  270,685    

IMI plc

    3,629,494  
  132,482    

Imperial Brands plc

    2,096,884  
  255,352    

Indivior plc*

    364,882  
  4,593,588    

ITV plc*

    4,292,997  
  800,148    

J Sainsbury plc

    2,088,566  
  44,086    

James Fisher & Sons plc

    647,977  
  148,718    

Johnson Matthey plc

    4,139,880  
  528,116    

Jupiter Fund Management plc

    1,588,652  
  173,066    

KAZ Minerals plc

    1,412,063  
  2,318,327    

Legal & General Group plc

    5,558,431  
  192,276    

Meggitt plc*

    681,328  
  723,890    

Moneysupermarket.com Group plc

    2,286,361  
  2,414,021    

Natwest Group plc*

    3,892,263  
  76,665    

Next Fifteen Communications Group plc

    442,965  
  31,300    

Next plc

    2,363,980  
  110,957    

Norcros plc

    250,116  
  1,739,529    

Pan African Resources plc

    441,414  
  371,827    

PayPoint plc

    2,427,777  
  402,600    

Pearson plc

    2,659,885  
  18,536    

Persimmon plc

    561,206  
  1,832,726    

Petropavlovsk plc*

    634,792  
  217,011    

Phoenix Group Holdings plc

    1,863,526  
  57,934    

Polar Capital Holdings plc

    385,936  
  360,095    

Prudential plc

    4,404,140  
  52,448    

Rathbone Brothers plc

    987,243  
  210,978    

Reach plc

    287,115  
  297,805    

Redrow plc*

    1,605,650  
  200,818    

Rio Tinto plc

    11,358,539  
  224,596    

Sabre Insurance Group plc(3)

    667,055  
  481,117    

Serica Energy plc

    657,597  
  971,330    

Standard Chartered plc*

    4,438,787  
  215,977    

Subsea 7 S.A.*

    1,434,400  
  309,892    

Synthomer plc

    1,514,335  
  2,489,821    

Taylor Wimpey plc*

    3,411,287  
  242,439    

TI Fluid Systems plc*(3)

    603,033  
  456,412    

TP ICAP plc

    1,130,202  
  53,719    

Ultra Electronics Holdings plc

    1,310,684  
  74,112    

Unilever plc

    4,223,555  
  265,116    

Vistry Group plc*

    1,870,659  
  295,232    

Volution Group plc

    741,997  
  407,517    

WPP plc

    3,254,954  
   

 

 

 
      177,531,827  
   

 

 

 
      United States - 0.2%  
  592,300    

Argonaut Gold, Inc.*

    1,102,532  
  1,166,279    

Diversified Gas & Oil plc

    1,695,288  
  649,000    

Nexteer Automotive Group Ltd.

    541,981  
  130,832    

Sims Metal Management Ltd.(2)

    879,835  
   

 

 

 
      4,219,636  
   

 

 

 
 

Total Common Stocks
(cost $1,881,073,556)

  $ 1,721,779,414  
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  49  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
PREFERRED STOCKS - 0.5%  
      Brazil - 0.2%  
  262,200    

Banco do Estado do Rio Grande do Sul S.A. Class B, 4.34%

  $ 548,349  
  3,412,853    

Cia de Saneamento do Parana

    2,831,182  
   

 

 

 
      3,379,531  
   

 

 

 
      Germany - 0.3%  
  56,402    

Porsche Automobil Holding SE

    3,021,588  
  251,499    

Schaeffler AG

    1,531,461  
   

 

 

 
      4,553,049  
   

 

 

 
 

Total Preferred Stocks
(cost $10,864,385)

  $ 7,932,580  
   

 

 

 
RIGHTS - 0.0%  
      Italy - 0.0%      
  127,399    

Societa Cattolica di Assicurazioni S.c.r.l.

  $  
   

 

 

 
 

Total Rights
(cost $—)

  $  
   

 

 

 
 

Total Long-Term Investments
(cost $1,891,937,941)

  $ 1,729,711,994  
   

 

 

 
SHORT-TERM INVESTMENTS - 2.0%  
      Other Investment Pools & Funds - 0.3%      
  4,352,009    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(5)

  $ 4,352,009  
   

 

 

 
      Securities Lending Collateral - 1.7%      
  30,472,866    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(5)

    30,472,866  
  30,755    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(5)

    30,755  
   

 

 

 
      30,503,621  
   

 

 

 
 

Total Short-Term Investments
(cost $34,855,630)

  $ 34,855,630  
   

 

 

 
 

Total Investments
(cost $1,926,793,571)

    100.9    $ 1,764,567,624  
 

Other Assets & Liabilities

    (0.9 )%       (15,589,272
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     1,748,978,352  
   

 

 

    

 

 

 
Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Investment valued using significant unobservable inputs.

 

(2) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(3) 

Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At October 31, 2020, the aggregate value of these securities was $37,537,896, representing 2.1% of net assets.

 

(4) 

This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At October 31, 2020, the aggregate fair value of these securities was $11,664, which represented 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(5) 

Current yield as of period end.

 

 

Foreign Currency Contracts Outstanding at October 31, 2020  
Amount and Description of
Currency to be Purchased
   Amount and Description of
Currency to be Sold
     Counterparty      Settlement
Date
    Appreciation     Depreciation  
  38,218,193      USD      29,574,700        GBP        JPM        12/02/2020     $ 79,148     $ (182,951
  28,742,752      USD      480,930,700        ZAR        BOA        12/02/2020             (698,951
                

 

 

   

 

 

 
 

Total Foreign Currency Contracts

             $     79,148     $     (881,902
                

 

 

   

 

 

 

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

  50  

 


Hartford Schroders International Multi-Cap Value Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total     Level 1      Level 2     Level 3(1)  

Assets

 

Common Stocks

 

Australia

   $ 38,101,172     $ 1,451,162      $ 36,638,346     $ 11,664  

Austria

     14,392,090       340,774        14,051,316        

Belgium

     6,720,498       164,191        6,556,307        

Bermuda

     451,712       451,712               

Brazil

     12,935,383       12,935,383               

Canada

     108,751,064       108,751,064               

Chile

     6,102,210       5,809,725        292,485        

China

     129,228,165       22,217,633        107,010,532        

Czech Republic

     2,803,751              2,803,751        

Denmark

     4,574,951              4,574,951        

Egypt

     929,746              929,746        

Finland

     9,133,018       340,932        8,792,086        

France

     105,722,667       323,073        105,399,594        

Georgia

     816,792              816,792        

Germany

     45,850,139       2,617,870        43,232,269        

Gibraltar

     376,839              376,839        

Hong Kong

     49,818,939              49,818,939        

Hungary

     3,976,424              3,976,424        

India

     609,223       609,223               

Indonesia

     10,575,797              10,575,797        

Ireland

     3,473,490              3,473,490        

Isle of Man

     1,854,487       1,854,487               

Israel

     23,063,626       18,250,181        4,813,445        

Italy

     23,605,466              23,605,466        

Japan

     295,953,811              295,953,811        

Luxembourg

     4,660,892              4,660,892        

Malaysia

     10,422,116              10,422,116        

Mexico

     18,225,997       18,225,997               

Monaco

     4,117,121       4,117,121               

Netherlands

     42,110,574       3,739,280        38,371,294        

New Zealand

     2,111,575              2,111,575        

Norway

     34,607,167       510,458        34,096,709        

Peru

     353,810              353,810        

Philippines

     313,525              313,525        

Poland

     14,260,190              14,260,190        

Portugal

     354,053              354,053        

Russia

     23,645,031       2,698,312        20,946,719        

Singapore

     20,901,999       550,788        20,351,211        

South Africa

     48,444,318       21,635,030        26,809,288        

South Korea

     130,828,506       3,429,122        127,399,384        

Spain

     17,047,263       313,987        16,733,276        

Sweden

     22,609,727              22,609,727        

Switzerland

     72,185,800              72,185,800        

Taiwan

     135,129,936              135,129,936        

Thailand

     19,810,374              19,810,374        

Turkey

     18,066,517       229,269        17,837,248        

United Kingdom

     177,531,827       10,993,639        166,538,188        

United States

     4,219,636       1,102,532        3,117,104        

Preferred Stocks

     7,932,580       3,379,531        4,553,049        

Rights

                         

Short-Term Investments

     34,855,630       34,855,630               

Foreign Currency Contracts(2)

     79,148              79,148        
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     1,764,646,772     $     281,898,106      $     1,482,737,002     $     11,664  
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

 

Foreign Currency Contracts(2)

   $ (881,902   $      $ (881,902   $  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (881,902   $      $ (881,902   $  
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) 

For the year ended October 31, 2020, investments valued at $51,379 were transferred into Level 3 due to the unavailability of active market pricing and there were no transfers out of Level 3.

 

(2) 

Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for year ended October 31, 2020 is not presented.

 

The accompanying notes are an integral part of these financial statements.

 

 

  51  

 


Hartford Schroders International Stock Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 97.0%  
      Argentina - 2.3%  
  19,780    

MercadoLibre, Inc.*

  $ 24,013,909  
   

 

 

 
      Austria - 1.0%  
  489,131    

Erste Group Bank AG*

    10,054,314  
   

 

 

 
      Brazil - 0.9%  
  2,204,557    

Raia Drogasil S.A.

    9,244,005  
   

 

 

 
      Canada - 2.1%  
  216,717    

Canadian National Railway Co.

    21,528,556  
   

 

 

 
      China - 9.3%  
  174,768    

Alibaba Group Holding Ltd. ADR*

    53,250,062  
  114,700    

Ant Group Co., Ltd. Class H

    1,195,546  
  536,400    

Tencent Holdings Ltd.

    40,983,968  
   

 

 

 
      95,429,576  
   

 

 

 
      Denmark - 2.9%  
  171,270    

Vestas Wind Systems A/S

    29,383,769  
   

 

 

 
      France - 2.6%  
  218,237    

Schneider Electric SE

    26,517,195  
   

 

 

 
      Germany - 14.0%  
  59,258    

adidas AG*

    17,605,840  
  76,852    

Allianz SE

    13,537,833  
  255,986    

Bayerische Motoren Werke AG

    17,493,757  
  295,741    

Deutsche Wohnen SE

    14,926,911  
  513,746    

GEA Group AG

    17,109,642  
  801,709    

Infineon Technologies AG

    22,320,522  
  160,243    

Knorr-Bremse AG

    18,556,325  
  205,237    

SAP SE

    21,895,622  
   

 

 

 
      143,446,452  
   

 

 

 
      Hong Kong - 4.1%  
  2,571,600    

AIA Group Ltd.

    24,474,363  
  361,711    

Hong Kong Exchanges & Clearing Ltd.

    17,332,724  
   

 

 

 
      41,807,087  
   

 

 

 
      India - 2.0%  
  1,294,954    

HDFC Bank Ltd.*

    20,680,332  
   

 

 

 
      Italy - 1.1%  
  6,984,526    

Intesa Sanpaolo S.p.A.*

    11,595,039  
   

 

 

 
      Japan - 6.7%  
  382,900    

Recruit Holdings Co., Ltd.

    14,569,592  
  29,900    

SMC Corp.

    15,903,967  
  257,200    

Sony Corp.

    21,441,844  
  547,000    

Takeda Pharmaceutical Co., Ltd.

    16,903,715  
   

 

 

 
      68,819,118  
   

 

 

 
      Netherlands - 5.7%  
  79,167    

ASML Holding N.V.

    28,642,849  
  332,383    

Koninklijke Philips N.V.*

    15,394,900  
  1,095,225    

Royal Dutch Shell plc Class A(1)

    13,958,415  
   

 

 

 
      57,996,164  
   

 

 

 
      New Zealand - 2.0%  
  258,973    

Xero Ltd.*

    20,090,726  
   

 

 

 
      Norway - 3.1%  
  1,169,063    

DNB ASA*

    15,787,948  
  1,292,992    

Equinor ASA

    16,498,202  
   

 

 

 
      32,286,150  
   

 

 

 
      Singapore - 1.3%  
  82,139    

Sea Ltd. ADR*

    12,953,320  
   

 

 

 
      South Korea - 3.2%  
  652,614    

Samsung Electronics Co., Ltd.

    32,804,040  
   

 

 

 
      Spain - 3.1%  
  3,224,543    

Banco Bilbao Vizcaya Argentaria S.A.

    9,303,295  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 97.0% - (continued)  
      Spain - 3.1% - (continued)  
  1,880,520    

Iberdrola S.A.

  $ 22,204,384  
   

 

 

 
      31,507,679  
   

 

 

 
      Sweden - 1.2%  
  1,576,384    

Svenska Handelsbanken AB Class A*

    12,772,935  
   

 

 

 
      Switzerland - 12.9%  
  270,759    

Alcon, Inc.*

    15,393,494  
  1,868    

Chocoladefabriken Lindt & Spruengli AG

    14,810,375  
  222,461    

Cie Financiere Richemont S.A.

    13,904,652  
  30,709    

Lonza Group AG

    18,606,891  
  257,103    

Nestle S.A.

    28,918,403  
  87,343    

Roche Holding AG

    28,066,043  
  51,635    

Sika AG

    12,702,456  
   

 

 

 
      132,402,314  
   

 

 

 
      Taiwan - 3.9%  
  2,659,000    

Taiwan Semiconductor Manufacturing Co., Ltd.

    40,229,802  
   

 

 

 
      United Kingdom - 10.0%  
  536,249    

Bunzl plc

    16,669,980  
  647,542    

Burberry Group plc

    11,372,657  
  596,189    

Diageo plc

    19,267,544  
  1,072,989    

GlaxoSmithKline plc

    17,917,284  
  1,180,858    

National Grid plc

    14,046,878  
  359,974    

Ocado Group plc*

    10,615,599  
  448,456    

Whitbread plc*

    12,486,247  
   

 

 

 
      102,376,189  
   

 

 

 
      United States - 1.6%  
  10,157    

Booking Holdings, Inc.*

    16,479,732  
   

 

 

 
 

Total Common Stocks
(cost $886,131,488)

  $ 994,418,403  
   

 

 

 
SHORT-TERM INVESTMENTS - 2.5%  
      Other Investment Pools & Funds - 2.4%  
  24,132,198    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(2)

  $ 24,132,198  
   

 

 

 
      Securities Lending Collateral - 0.1%  
  1,443,460    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(2)

    1,443,460  
  1,457    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(2)

    1,457  
   

 

 

 
      1,444,917  
   

 

 

 
 

Total Short-Term Investments
(cost $25,577,115)

  $ 25,577,115  
   

 

 

 
 

Total Investments
(cost $911,708,603)

    99.5    $     1,019,995,518  
 

Other Assets and Liabilities

    0.5      5,619,679  
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 1,025,615,197  
   

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  52  

 


Hartford Schroders International Stock Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

(2) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Argentina

   $ 24,013,909      $ 24,013,909      $      $  

Austria

     10,054,314               10,054,314         

Brazil

     9,244,005        9,244,005                

Canada

     21,528,556        21,528,556                

China

     95,429,576        54,445,608        40,983,968         

Denmark

     29,383,769               29,383,769         

France

     26,517,195               26,517,195         

Germany

     143,446,452        18,556,325        124,890,127         

Hong Kong

     41,807,087               41,807,087         

India

     20,680,332               20,680,332         

Italy

     11,595,039               11,595,039         

Japan

     68,819,118               68,819,118         

Netherlands

     57,996,164               57,996,164         

New Zealand

     20,090,726               20,090,726         

Norway

     32,286,150               32,286,150         

Singapore

     12,953,320        12,953,320                

South Korea

     32,804,040               32,804,040         

Spain

     31,507,679               31,507,679         

Sweden

     12,772,935               12,772,935         

Switzerland

     132,402,314               132,402,314         

Taiwan

     40,229,802               40,229,802         

United Kingdom

     102,376,189               102,376,189         

United States

     16,479,732        16,479,732                

Short-Term Investments

     25,577,115        25,577,115                
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,019,995,518      $     182,798,570      $     837,196,948      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  53  

 


Hartford Schroders Securitized Income Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 111.6%  
      Asset-Backed - Automobile - 1.2%  
$     1,098,000    

AMSR Trust 1.36%, 11/17/2037(1)

  $ 1,096,218  
     

 

 

 
      Asset-Backed - Finance & Insurance - 32.2%  
 

Bellemeade Re Ltd.

 

    632,992    

2.80%, 06/25/2030, 1 mo. USD LIBOR + 2.650%(1)(2)

    634,098  
    771,000    

3.05%, 04/25/2028, 1 mo. USD LIBOR + 2.900%(1)(2)

    745,957  
    654,000    

3.55%, 06/25/2030, 1 mo. USD LIBOR + 3.400%(1)(2)

    662,013  
    1,000,000    

4.15%, 08/26/2030, 1 mo. USD LIBOR + 4.000%(1)(2)

    1,004,998  
    1,000,000    

Carbone CLO Ltd. 1.36%, 01/20/2031, 3 mo. USD LIBOR + 1.140%(1)(2)(3)

    991,126  
    1,498,035    

Carlyle Global Market Strategies CLO Ltd. 1.11%, 01/18/2029, 3 mo. USD LIBOR + 0.890%(1)(2)(3)

    1,479,055  
    1,746,000    

CIFC Funding Ltd. 1.33%, 01/22/2031, 3 mo. USD LIBOR + 1.110%(1)(2)(3)

    1,724,203  
    1,253,390    

CLI Funding LLC 3.71%, 05/18/2044(1)

    1,270,590  
    567,759    

Countrywide Asset-Backed Certificates Trust 5.71%, 05/25/2036(4)

    583,651  
EUR     492,832    

Dryden Euro CLO 0.72%, 07/15/2030, 6 mo. Euribor + 0.720%(2)(5)

    570,056  
$     1,000,000    

Madison Park Funding Ltd. 0.99%, 04/15/2029, 3 mo. USD LIBOR + 0.750%(1)(2)(3)

    984,119  
 

Navient Private Education Refi Loan Trust

 

    924,000    

1.17%, 09/16/2069(1)

    925,798  
    420,548    

1.22%, 07/15/2069(1)

    421,780  
    1,824,160    

1.69%, 05/15/2069(1)

    1,850,364  
    446,226    

3.52%, 06/16/2042(1)

    455,605  
    632,000    

Navient Student Loan Trust 4.00%, 12/15/2059(1)

    654,942  
 

Oaktown Re Ltd.

 

    500,000    

3.35%, 07/25/2030, 1 mo. USD LIBOR + 3.200%(1)(2)

    502,189  
    844,457    

4.15%, 04/25/2027, 1 mo. USD LIBOR + 4.000%(1)(2)

    843,509  
    500,000    

5.39%, 10/25/2030, 1 mo. USD LIBOR + 5.250%(1)(2)

    498,762  
 

OCP CLO Ltd.

 

    435,264    

1.04%, 10/26/2027, 3 mo. USD LIBOR + 0.820%(1)(2)

    431,833  
    500,000    

1.50%, 07/15/2030, 3 mo. USD LIBOR + 1.260%(1)(2)

    498,444  
 

Preston Ridge Partners Mortgage Trust LLC

 

    821,054    

3.35%, 07/25/2024(1)(6)

    822,095  
    975,224    

3.67%, 08/25/2025(1)(6)

    975,018  
    462,059    

SoFi Professional Loan Program Trust 1.95%, 02/15/2046(1)

    470,248  
    1,402,619    

TAL Advantage VII LLC 2.05%, 09/20/2045(1)

    1,403,914  
    692,870    

Textainer Marine Containers VII Ltd. 2.73%, 08/21/2045(1)

    705,551  
 

Textainer Marine Containers VIII Ltd.

 

    640,100    

2.10%, 09/20/2045(1)

    639,453  
    1,065,856    

2.11%, 09/20/2045(1)

    1,060,192  
 

Towd Point Mortgage Trust

 

    1,400,000    

4.25%, 10/25/2058(1)(4)

    1,436,512  
    919,000    

4.40%, 11/25/2058(1)(4)

    953,065  
    1,053,000    

4.50%, 11/25/2058(1)(4)

    1,094,655  
    1,000,000    

5.00%, 11/25/2058(1)(4)

    1,042,033  
    725,000    

Treman Park CLO Ltd. 1.29%, 10/20/2028, 3 mo. USD LIBOR + 1.070%(1)(2)(3)

    721,842  
    587,000    

Tricon American Homes 4.88%, 07/17/2038(1)

    617,197  
    591,622    

VCAT LLC 3.67%, 08/25/2050(1)(6)

    596,955  
     

 

 

 
        30,271,822  
     

 

 

 
Shares or Principal Amount   Market Value  
ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 111.6% - (continued)  
          Asset-Backed - Home Equity - 6.8%      
$     758,672    

CWABS Revolving Home Equity Loan Trust 0.29%, 07/15/2036, 1 mo. USD LIBOR + 0.140%(2)

  $ 702,867  
    570,899    

CWHEQ Revolving Home Equity Loan Resecuritization Trust 0.34%, 11/15/2035, 1 mo. USD LIBOR + 0.190%(1)(2)

    499,512  
    236,251    

Home Equity Loan Trust 0.28%, 05/25/2036, 1 mo. USD LIBOR + 0.130%(2)

    231,632  
    500,000    

Home Re Ltd. 4.29%, 10/25/2030, 1 mo. USD LIBOR + 4.150%(1)(2)

    500,069  
 

Invitation Homes Trust

 

    1,741,000    

2.35%, 01/17/2038, 1 mo. USD LIBOR + 2.200%(1)(2)

    1,727,429  
    300,655    

2.40%, 06/17/2037, 1 mo. USD LIBOR + 2.250%(1)(2)

    300,376  
    223,369    

Legacy Mortgage Asset Trust 4.00%, 12/28/2054(1)(4)

    225,469  
    1,134,063    

Master Asset Backed-Securities Trust 0.45%, 05/25/2037, 1 mo. USD LIBOR + 0.300%(1)(2)

    1,034,160  
    710,204    

Morgan Stanley Home Equity Loan Trust 0.43%, 02/25/2036, 1 mo. USD LIBOR + 0.280%(2)

    700,811  
    494,701    

Option One Mortgage Loan Trust 5.86%, 01/25/2037(6)

    503,915  
     

 

 

 
        6,426,240  
     

 

 

 
          Asset-Backed - Student Loan - 4.5%  
GBP     3,265,589    

Income Contingent Student Loan 1.32%, 07/24/2058, 12 mo. GBP LIBOR + 1.000%(2)(3)(5)

    4,189,917  
     

 

 

 
      Commercial Mortgage-Backed Securities - 12.3%  
$     648,000    

BX Commercial Mortgage Trust 2.10%, 03/15/2037, 1 mo. USD LIBOR + 1.951%(1)(2)

    635,805  
    1,015,000    

BX Trust 1.92%, 05/15/2030, 1 mo. USD LIBOR + 1.770%(1)(2)

    922,179  
    1,000,000    

CAMB Commercial Mortgage Trust 2.70%, 12/15/2037, 1 mo. USD LIBOR + 2.550%(1)(2)

    952,448  
 

Citigroup Commercial Mortgage Trust

 

    500,000    

1.30%, 12/15/2036, 1 mo. USD LIBOR + 1.150%(1)(2)

    464,990  
    500,000    

2.95%, 12/15/2036, 1 mo. USD LIBOR + 2.800%(1)(2)

    429,980  
    1,000,000    

3.52%, 05/10/2035(1)(4)

    991,385  
 

COMM Mortgage Trust

 

    280,000    

2.15%, 06/15/2034, 1 mo. USD LIBOR + 2.000%(1)(2)

    261,676  
    536,000    

2.35%, 10/15/2034, 1 mo. USD LIBOR + 2.200%(1)(2)

    491,026  
    252,000    

2.54%, 06/15/2034, 1 mo. USD LIBOR + 2.394%(1)(2)

    203,392  
    835,000    

Core Mortgage Trust 2.05%, 12/15/2031, 1 mo. USD LIBOR + 1.900%(1)(2)

    816,055  
    1,708,000    

Credit Suisse Mortgage Capital Certificates 2.30%, 05/15/2036, 1 mo. USD LIBOR + 2.150%(1)(2)

    1,678,049  
    813,535    

HPLY Trust 2.50%, 11/15/2036, 1 mo. USD LIBOR + 2.350%(1)(2)

    743,690  
 

Morgan Stanley Capital Trust

 

    508,693    

1.80%, 08/15/2033, 1 mo. USD LIBOR + 1.650%(1)(2)

    463,612  
    250,000    

2.95%, 07/15/2035, 1 mo. USD LIBOR + 2.800%(1)(2)

    224,642  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  54  

 


Hartford Schroders Securitized Income Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 111.6% - (continued)  
      Commercial Mortgage-Backed Securities - 12.3% - (continued)  
$     900,000    

3.74%, 12/15/2036, 1 mo. USD LIBOR + 2.244%(1)(2)

  $ 839,819  
    1,413,000    

MSSG Trust 3.74%, 09/13/2039(1)(4)

    1,381,005  
     

 

 

 
        11,499,753  
     

 

 

 
          Other Asset-Backed Securities - 24.0%  
    844,088    

American Home Mortgage Investment Trust 0.63%, 02/25/2032, 1 mo. USD LIBOR + 0.480%(1)(2)

    813,418  
    978,767    

BlueMountain CLO Ltd. 1.45%, 01/20/2029, 3 mo. USD LIBOR + 1.230%(1)(2)(3)

    977,246  
    1,750,000    

CBAM Ltd. 1.51%, 01/15/2031, 3 mo. USD LIBOR + 1.270%(1)(2)(3)

    1,739,584  
    1,372,351    

CIFC Funding Ltd. 1.02%, 01/20/2028, 3 mo. USD LIBOR + 0.800%(1)(2)(3)

    1,356,536  
    810,295    

CSMC Trust 4.10%, 09/27/2066(1)(4)

    813,023  
 

CWABS Revolving Home Equity Loan Trust

 

    574,443    

0.44%, 02/15/2034, 1 mo. USD LIBOR + 0.290%(2)

    569,465  
    324,161    

0.45%, 02/15/2034, 1 mo. USD LIBOR + 0.300%(2)

    322,841  
    750,522    

CWHEQ Revolving Home Equity Loan Trust 0.29%, 01/15/2037, 1 mo. USD LIBOR + 0.140%(2)

    715,028  
    850,000    

Dryden 53 CLO Ltd. 1.36%, 01/15/2031, 3 mo. USD LIBOR + 1.120%(1)(2)

    836,183  
    1,000,000    

GoldenTree Loan Management U.S. CLO Ltd. 1.17%, 04/20/2029, 3 mo. USD LIBOR + 0.950%(1)(2)

    991,867  
    750,000    

JP Morgan Mortgage Acquisition Trust
4.85%, 11/25/2036(6)

    810,209  
    3,000,000    

LCM XIII L.P. 1.36%, 07/19/2027, 3 mo. USD LIBOR + 1.140%(1)(2)(3)

    2,965,452  
    1,000,000    

LCM XXIII Ltd. 1.29%, 10/20/2029, 3 mo. USD LIBOR + 1.070%(1)(2)(3)

    992,394  
    1,406,045    

MP CLO VIII Ltd. 1.13%, 10/28/2027, 3 mo. USD LIBOR + 0.910%(1)(2)(3)

    1,394,114  
    1,316,002    

Preston Ridge Partners Mortgage Trust LLC 3.35%, 11/25/2024(1)(6)

    1,319,328  
EUR     3,740,891    

SLM Student Loan Trust 0.00%, 10/25/2039, 3 mo. Euribor + 0.400%(2)(3)(5)

    4,134,802  
$     1,704,297    

Towd Point Mortgage Trust 2.25%, 02/25/2060(1)(4)

    1,737,065  
    38,834    

Zais CLO Ltd. 1.42%, 07/25/2026, 3 mo. USD LIBOR + 1.200%(1)(2)

    38,782  
     

 

 

 
        22,527,337  
     

 

 

 
          Whole Loan Collateral CMO - 30.6%  
 

Alba plc

 

GBP     581,600    

0.22%, 03/17/2039, 3 mo. GBP LIBOR + 0.170%(2)(5)

    720,352  
    3,459,416    

0.23%, 12/15/2038, 3 mo. GBP LIBOR + 0.170%(2)(3)(5)

    4,281,803  
$     1,174,000    

Banc of America Funding Trust 2.84%, 06/26/2035(1)(4)

    1,100,235  
GBP     1,400,000    

Dukinfield plc 3.81%, 12/20/2052, 3 mo. GBP LIBOR + 3.750%(2)(5)

    1,757,023  
 

Eagle RE Ltd.

 

$     510,728    

1.95%, 04/25/2029, 1 mo. USD LIBOR + 1.800%(1)(2)

    507,397  
    1,000,000    

2.74%, 10/25/2030, 1 mo. USD LIBOR + 2.600%(1)(2)

    999,984  
    500,000    

4.15%, 10/25/2030, 1 mo. USD LIBOR + 4.000%(1)(2)

    500,296  
GBP     176,697    

EMF plc 1.04%, 03/13/2046, 3 mo. GBP LIBOR + 0.980%(2)(5)

    226,152  
$     294,100    

Eurosail plc 0.22%, 12/15/2044, 3 mo. GBP LIBOR + 0.160%(2)(5)

    378,539  
Shares or Principal Amount   Market Value  
ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 111.6% - (continued)  
          Whole Loan Collateral CMO - 30.6% - (continued)  
 

Fannie Mae Connecticut Avenue Securities

 

$     669,247    

2.30%, 10/25/2030, 1 mo. USD LIBOR + 2.150%(2)

  $ 653,261  
    245,305    

2.50%, 01/25/2031, 1 mo. USD LIBOR + 2.350%(2)

    239,460  
    973,461    

2.55%, 05/25/2030, 1 mo. USD LIBOR + 2.400%(2)

    958,855  
    355,974    

3.15%, 07/25/2024, 1 mo. USD LIBOR + 3.000%(2)

    315,566  
    1,213,920    

5.05%, 11/25/2024, 1 mo. USD LIBOR + 4.900%(2)

    1,258,040  
    1,119,000    

FirstKey Homes LLC 3.64%, 09/17/2025(1)

    1,141,134  
    561,557    

IndyMac INDX Mortgage Loan Trust 0.71%, 03/25/2035, 1 mo. USD LIBOR + 0.560%(2)

    542,602  
GBP     497,720    

Landmark Mortgage Securities No. 2 plc 0.25%, 06/17/2039, 3 mo. GBP LIBOR + 0.200%(2)(3)(5)

    610,106  
    688,085    

Newgate Funding plc 0.22%, 12/01/2050, 3 mo. GBP LIBOR + 0.160%(2)(5)

    843,144  
$     34,429    

Oaktown Re III Ltd. 1.55%, 07/25/2029, 1 mo. USD LIBOR + 1.400%(1)(2)

    34,409  
 

Preston Ridge Partners Mortgage Trust LLC

 

    931,067    

2.86%, 09/25/2025(1)(6)

    931,244  
    558,989    

2.98%, 02/25/2025(1)(6)

    559,636  
 

Radnor RE Ltd.

 

    746,440    

2.10%, 02/25/2029, 1 mo. USD LIBOR + 1.950%(1)(2)

    746,117  
    500,000    

4.75%, 10/25/2030, 1 mo. USD LIBOR + 4.600%(1)(2)

    500,649  

GBP

    1,222,066    

Resloc plc 0.22%, 12/15/2043, 3 mo. GBP LIBOR + 0.160%(2)(3)(5)

    1,499,303  
 

RMAC Securities plc

 

    1,770,244    

0.21%, 06/12/2044, 3 mo. GBP LIBOR + 0.150%(2)(3)(5)

    2,175,782  
    3,265,951    

0.23%, 06/12/2044, 3 mo. GBP LIBOR + 0.170%(2)(3)(5)

    4,043,171  
$     107,299    

Structured Asset Investment Loan Trust 0.88%, 03/25/2035, 1 mo. USD LIBOR + 0.735%(2)

    106,970  
    373,606    

WaMu Mortgage Pass-Through Certificates Trust 2.89%, 08/25/2033(4)

    380,579  
    789,487    

Wells Fargo Mortgage Backed Securities Trust 3.18%, 10/25/2037(4)

    760,256  
     

 

 

 
        28,772,065  
     

 

 

 
   

Total Asset & Commercial Mortgage-Backed Securities
(cost $105,850,715)

  $ 104,783,352  
     

 

 

 
CORPORATE BONDS - 4.9%  
          Diversified Financial Services - 1.5%  
$     764,000    

Quicken Loans LLC / Quicken Loans Co-Issuer, Inc. 3.88%, 03/01/2031(1)

  $ 751,585  
    643,000    

Springleaf Finance Corp. 8.88%, 06/01/2025

    707,300  
     

 

 

 
        1,458,885  
     

 

 

 
          Insurance - 3.4%  
    1,821,124    

Ambac LSNI LLC 6.00%, 02/12/2023, 3 mo. USD LIBOR + 5.000%(1)(2)

    1,812,018  
    451,000    

MGIC Investment Corp. 5.25%, 08/15/2028

    463,403  
    841,000    

NMI Holdings, Inc. 7.38%, 06/01/2025(1)(3)

    916,690  
     

 

 

 
        3,192,111  
     

 

 

 
   

Total Corporate Bonds
(cost $4,617,857)

  $ 4,650,996  
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  55  

 


Hartford Schroders Securitized Income Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
U.S. GOVERNMENT AGENCIES - 13.3%  
      FHLMC - 10.7%  
$     1,800,000    

1.50%, 11/01/2050

  $ 1,809,741  
    1,000,000    

2.00%, 11/01/2050

    1,031,742  
    812,849    

2.00%, 09/01/2050

    838,650  
    1,457,727    

3.00%, 05/01/2050

    1,563,077  
    1,375,294    

3.00%, 02/01/2050

    1,472,133  
    216,614    

3.75%, 04/25/2024, 1 mo. USD LIBOR + 3.600%(2)

    204,643  
    1,664,000    

3.90%, 08/25/2050, 1 mo. USD LIBOR + 3.750%(1)(2)

    1,682,498  
    223,751    

4.30%, 01/25/2025, 1 mo. USD LIBOR + 4.150%(2)

    226,159  
    583,185    

4.80%, 10/25/2028, 1 mo. USD LIBOR + 4.650%(2)

    605,704  
    569,512    

5.15%, 12/25/2028, 1 mo. USD LIBOR + 5.000%(2)

    596,915  
     

 

 

 
        10,031,262  
     

 

 

 
      FNMA - 2.6%  
    1,234,042    

2.50%, 06/01/2035

    1,303,450  
    1,036,481    

3.00%, 02/01/2050

    1,123,472  
     

 

 

 
        2,426,922  
     

 

 

 
   

Total U.S. Government Agencies
(cost $12,377,480)

  $ 12,458,184  
     

 

 

 
COMMON STOCKS - 0.3%  
          Real Estate - 0.3%  
    6,560    

Kilroy Realty Corp. REIT

  $ 308,845  
     

 

 

 
   

Total Common Stocks
(cost $373,505)

  $ 308,845  
     

 

 

 
   

Total Long-Term Investments
(cost $123,219,557)

  $ 122,201,377  
     

 

 

 
SHORT-TERM INVESTMENTS - 2.3%  
          Other Investment Pools & Funds - 2.3%  
    2,155,799    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(7)

  $ 2,155,799  
     

 

 

 
   

Total Short-Term Investments
(cost $2,155,799)

  $ 2,155,799  
     

 

 

 
   

Total Investments
(cost $125,375,356)

    132.4    $     124,357,176  
   

Other Assets and Liabilities

    (32.4 )%       (30,430,430
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $ 93,926,746  
     

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

    

Equity Industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

(1) 

Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At October 31, 2020, the aggregate value of these securities was $74,159,985, representing 79.0% of net assets.

 

(2) 

Variable rate securities; the rate reported is the coupon rate in effect at October 31, 2020. Base lending rates may be subject to a floor or cap.

 

(3) 

All, or a portion of the security, was pledged as collateral in connection with reverse repurchase agreements. As of October 31, 2020, the market value of securities pledged was $37,177,244.

 

(4) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

 

(5) 

Security is exempt from registration under Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. At October 31, 2020, the aggregate value of these securities was $25,430,150, representing 27.1% of net assets.

 

(6) 

Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.

 

(7) 

Current yield as of period end.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  56  

 


Hartford Schroders Securitized Income Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Reverse Repurchase Agreements Outstanding at October 31, 2020  

Counterparty

   Interest
Rate
     Settlement
Date
     Maturity
Date
     Principal
Amount
     Value      Value Including
Accrued Interest
 

JP Morgan Chase Bank

     0.890%        10/06/20        11/03/2020        USD        (2,673,000    $ (2,673,000    $ (2,674,717

JP Morgan Chase Bank

     0.977%        09/17/20        12/15/2020        USD        (2,044,000      (2,044,000      (2,046,497

JP Morgan Chase Bank

     1.145%        10/13/20        11/10/2020        USD        (677,000      (677,000      (677,409

JP Morgan Chase Bank

     1.241%        08/28/20        11/24/2020        USD        (7,937,000      (7,937,000      (7,954,783

JP Morgan Chase Bank

     1.253%        08/19/20        11/16/2020        USD        (889,000      (889,000      (891,290

JP Morgan Chase Bank

     0.756%        10/05/20        01/05/2021        GBP        (1,420,694      (1,840,508      (1,841,540

JP Morgan Chase Bank

     0.749%        10/29/20        01/29/2021        GBP        (473,886      (613,919      (613,957

JP Morgan Chase Bank

     0.809%        09/24/20        11/20/2020        GBP        (2,206,261      (2,858,210      (2,860,613

Merrill Lynch Mortgage Investors Trust

     0.250%        09/25/20        12/23/2020        EUR        (3,181,628      (3,705,484      (3,706,445

Merrill Lynch Mortgage Investors Trust

     1.000%        09/29/20        12/23/2020        GBP        (5,932,377      (7,685,392      (7,685,392
                 

 

 

    

 

 

 

Total

                  $     (30,923,513    $     (30,952,643
                 

 

 

    

 

 

 

Securities pledged as collateral against open reverse repurchase agreements are noted in the Schedule of Investments.

 

Foreign Currency Contracts Outstanding at October 31, 2020  
Amount and Description
of Currency to be Purchased
   Amount and
Description of Currency to
be Sold
   Counterparty    Settlement
Date
    Appreciation     Depreciation  
  21,916      EUR      25,569      USD    MSC      11/18/2020     $     $ (35
  976,107      GBP      1,254,614      USD    BNP      11/18/2020       10,075        
  235,834      GBP      304,823      USD    JPM      11/18/2020       734        
     1,036,704      USD      885,999      EUR    JPM      11/18/2020       4,416        
  56,196      USD      43,686      GBP    BCLY      11/18/2020             (406
  102,876      USD      80,000      GBP    CBK      11/18/2020             (776
  2,218,105      USD      1,717,569      GBP    UBS      11/18/2020             (7,256
  6,924,385      USD      5,353,278      GBP    BOA      11/18/2020             (11,567
                

 

 

   

 

 

 
 

Total Foreign Currency Contracts

    $     15,225     $     (20,040
                

 

 

   

 

 

 

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total     Level 1      Level 2     Level 3(1)  

Assets

         

Asset & Commercial Mortgage-Backed Securities

   $ 104,783,352     $      $ 104,783,352     $  

Corporate Bonds

     4,650,996              4,650,996        

U.S. Government Agencies

     12,458,184              12,458,184        

Common Stocks

         

Real Estate

     308,845       308,845               

Short-Term Investments

     2,155,799       2,155,799               

Foreign Currency Contracts(2)

     15,225              15,225        
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 124,372,401     $     2,464,644      $     121,907,757     $     —  
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (20,040   $      $ (20,040   $  

Reverse Repurchase Agreements

     (30,923,513            (30,923,513      
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     (30,943,553   $      $ (30,943,553   $  
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

(2)

Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

  57  

 


Hartford Schroders Tax-Aware Bond Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
CORPORATE BONDS - 12.5%  
          Commercial Banks - 7.6%  
$     1,589,000    

Bank of Nova Scotia 2.38%, 01/18/2023

  $ 1,653,498  
    2,735,000    

Canadian Imperial Bank of Commerce 2.61%, 07/22/2023, (2.61% fixed rate until 07/22/2022; 3 mo. USD LIBOR + 0.785% thereafter)(1)

    2,832,315  
    1,844,000    

HSBC Holdings plc 3.97%, 05/22/2030, (3.97% fixed rate until 05/22/2029; 3 mo. USD LIBOR + 1.610% thereafter)(1)

    2,068,163  
   

JPMorgan Chase & Co.

 

    4,756,000    

2.01%, 03/13/2026, (2.01% fixed rate until 03/13/2025; 3 mo. USD SOFR + 1.585% thereafter)(1)

    4,930,111  
    2,859,000    

2.08%, 04/22/2026, (2.08% fixed rate until 04/22/2025; 3 mo. USD SOFR + 1.850% thereafter)(1)

    2,989,548  
    6,057,000    

National Bank of Canada 2.10%, 02/01/2023

    6,261,335  
    2,013,000    

PNC Financial Services Group, Inc. 3.50%, 01/23/2024

    2,190,834  
    2,154,000    

Royal Bank of Canada 2.25%, 11/01/2024

    2,278,145  
    3,678,000    

Toronto-Dominion Bank 2.65%, 06/12/2024

    3,930,332  
    2,933,000    

Truist Financial Corp. 2.20%, 03/16/2023

    3,042,606  
    1,466,000    

Wells Fargo & Co. 3.75%, 01/24/2024

    1,591,438  
     

 

 

 
        33,768,325  
     

 

 

 
          Healthcare-Services - 0.5%  
    776,000    

CommonSpirit Health 2.76%, 10/01/2024

    813,190  
    1,517,000    

UnitedHealth Group, Inc. 2.38%, 08/15/2024

    1,613,972  
     

 

 

 
        2,427,162  
     

 

 

 
          Pharmaceuticals - 1.4%  
    2,472,000    

Bristol-Myers Squibb Co. 2.90%, 07/26/2024

    2,667,671  
    2,997,000    

CVS Health Corp. 3.75%, 04/01/2030

    3,398,185  
     

 

 

 
        6,065,856  
     

 

 

 
          Real Estate Investment Trusts - 0.9%  
    2,227,000    

Boston Properties L.P. 3.40%, 06/21/2029

    2,414,465  
    1,318,000    

Ventas Realty L.P. 2.65%, 01/15/2025

    1,390,892  
     

 

 

 
        3,805,357  
     

 

 

 
          Retail - 0.7%  
    2,860,000    

McDonald’s Corp. 1.45%, 09/01/2025

    2,946,429  
     

 

 

 
          Software - 1.2%  
    5,009,000    

Oracle Corp. 2.80%, 04/01/2027

    5,458,157  
     

 

 

 
          Transportation - 0.2%  
    821,000    

United Parcel Service, Inc. 2.20%, 09/01/2024

    869,887  
     

 

 

 
   

Total Corporate Bonds
(cost $52,031,075)

  $ 55,341,173  
     

 

 

 
MUNICIPAL BONDS - 68.8%      
          Arizona - 0.3%  
   

City of Phoenix, AZ, Civic Improvement Corp.

 

$     350,000    

5.00%, 07/01/2026

  $ 426,010  
    350,000    

5.00%, 07/01/2027

    434,339  
    460,000    

5.00%, 07/01/2028

    565,593  
     

 

 

 
        1,425,942  
     

 

 

 
          California - 2.8%  
   

California County, CA, Tobacco Securitization Agency

 
    120,000    

4.00%, 06/01/2022

    126,787  
    150,000    

4.00%, 06/01/2023

    163,592  
    1,230,000    

California State Health Facs Finance Auth Rev 5.00%, 04/01/2033

    1,557,118  
   

City of Pomona, CA

 

    205,000    

4.00%, 08/01/2023

    219,873  
    305,000    

4.00%, 08/01/2024

    333,249  
Shares or Principal Amount   Market Value  
MUNICIPAL BONDS - 68.8% - (continued)      
          California - 2.8% - (continued)  
   

City of Riverside, CA

 

$     200,000    

1.90%, 06/01/2023

  $ 204,476  
    360,000    

2.11%, 06/01/2024

    370,559  
   

County of Sacramento, CA, Airport System Rev

 

    550,000    

5.00%, 07/01/2032

    708,059  
    960,000    

5.00%, 07/01/2033

    1,225,728  
    600,000    

5.00%, 07/01/2034

    762,234  
    20,000    

East Side, CA, Union High School Dist, GO, (NATL Insured) 5.25%, 02/01/2024

    23,081  
    1,000,000    

Merced, CA, Union High School Dist, GO 0.00%, 08/01/2034(3)

    755,260  
    4,675,000    

Moreno Valley, CA, Unified School Dist, GO (NATL Insured) 0.00%, 08/01/2025(3)

    4,481,922  
    200,000    

North Orange County, CA, Community College Dist, GO (NATL) 0.00%, 08/01/2028(3)

    182,428  
    300,000    

Rialto, CA, Unified School Dist, GO, (AGM Insured) 0.00%, 08/01/2029(3)

    263,190  
   

San Diego, CA, Public Facs Financing Auth

 

    175,000    

5.00%, 08/01/2027

    225,533  
    350,000    

5.00%, 08/01/2028

    461,370  
    225,000    

5.00%, 08/01/2029

    302,794  
    125,000    

5.00%, 08/01/2030

    171,144  
    10,000    

Southern California Metropolitan Water Dist, (FGIC-TCRS Insured) 5.75%, 07/01/2021

    10,000  
     

 

 

 
        12,548,397  
     

 

 

 
          Colorado - 1.0%  
    950,000    

City & County of Denver, CO, Airport System Rev 5.00%, 11/15/2032

    1,224,313  
    3,020,000    

Colorado Housing and Finance Auth, (GNMA/FNMA/FHLMC Insured) 3.50%, 05/01/2050

    3,359,659  
     

 

 

 
        4,583,972  
     

 

 

 
          Connecticut - 1.0%  
    2,640,000    

Connecticut Housing Finance Auth Rev (GNMA/FNMA/FHLMC Insured) 4.25%, 05/15/2042

    2,922,110  
   

State of Connecticut, GO

 

    830,000    

2.10%, 07/01/2025

    870,313  
    150,000    

4.00%, 06/01/2023

    163,868  
    215,000    

4.00%, 06/01/2024

    241,501  
   

State of Connecticut, Special Tax Rev

 

    155,000    

5.00%, 05/01/2023

    172,715  
    230,000    

5.00%, 05/01/2024

    265,666  
     

 

 

 
        4,636,173  
     

 

 

 
          Delaware - 0.4%  
   

Delaware Transportation Auth

 

    630,000    

5.00%, 09/01/2029

    827,927  
    285,000    

5.00%, 07/01/2032

    381,877  
    570,000    

5.00%, 09/01/2033

    745,726  
     

 

 

 
        1,955,530  
     

 

 

 
          District of Columbia - 2.4%  
    2,800,000    

Dist of Columbia 5.00%, 10/01/2030

    3,734,220  
    5,225,000    

Dist of Columbia Water & Sewer Auth Rev 5.00%, 10/01/2052

    6,248,212  
    600,000    

Dist of Columbia, GO 5.00%, 06/01/2032

    746,142  
     

 

 

 
        10,728,574  
     

 

 

 
          Florida - 3.3%  
    4,810,000    

County of Miami-Dade, FL, GO 5.00%, 07/01/2029

    6,359,109  
    310,000    

Florida Housing Finance Corp., (GNMA/FNMA/FHLMC Insured) 3.00%, 07/01/2051

    340,476  
   

Florida Housing Finance Corp. Rev (GNMA/FNMA/FHLMC Insured)

 
    725,000    

3.50%, 07/01/2051

    808,767  
    970,000    

4.00%, 07/01/2049

    1,058,192  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  58  

 


Hartford Schroders Tax-Aware Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
MUNICIPAL BONDS - 68.8% - (continued)      
          Florida - 3.3% - (continued)  
$     4,035,000    

Florida State Board of Administration Finance Co. 1.26%, 07/01/2025

  $ 4,077,125  
    1,840,000    

Miami-Dade County, FL, Transit System 5.00%, 07/01/2042

    1,984,790  
     

 

 

 
        14,628,459  
     

 

 

 
          Georgia - 3.2%  
   

Georgia Municipal Association, Inc.

 

    50,000    

5.00%, 12/01/2026

    62,921  
    35,000    

5.00%, 12/01/2027

    45,179  
    25,000    

5.00%, 12/01/2028

    32,030  
    80,000    

5.00%, 12/01/2029

    101,441  
    55,000    

5.00%, 12/01/2030

    69,402  
    55,000    

5.00%, 12/01/2032

    68,471  
    35,000    

5.00%, 12/01/2033

    43,406  
    55,000    

5.00%, 12/01/2034

    68,065  
   

Main Street, GA, Natural Gas, Inc.

 

    3,945,000    

4.00%, 08/01/2048(4)

    4,328,572  
    8,250,000    

4.00%, 03/01/2050(4)

    9,517,365  
     

 

 

 
        14,336,852  
     

 

 

 
          Illinois - 5.5%  
   

Champaign County, IL, Community Unit School Dist No. 4 Champaign, GO

 
    130,000    

5.00%, 01/01/2027

    158,994  
    475,000    

5.00%, 01/01/2029

    579,049  
    695,000    

Chicago, IL, Metropolitan Water Reclamation Dist, GO 5.25%, 12/01/2032

    964,410  
    7,735,000    

Chicago, IL, O’Hare International Airport 5.00%, 01/01/2033

    9,680,274  
    1,145,000    

Chicago, IL, Transit Auth 5.00%, 06/01/2025

    1,352,165  
   

Illinois Housing Dev Auth (GNMA/FNMA/FHLMC Insured)

 
    6,870,000    

3.75%, 04/01/2050

    7,673,103  
    1,510,000    

4.50%, 10/01/2048

    1,699,626  
    90,000    

Metropolitan Pier & Exposition Auth, IL (NATL Insured) 0.00%, 06/15/2028(3)

    73,284  
    1,350,000    

Railsplitter, IL, Tobacco Settlement Auth 5.00%, 06/01/2022

    1,444,014  
   

Rock Island County, IL, School District No 41 Rock Island, GO (BAM Insured)

 
    125,000    

4.00%, 12/01/2023

    137,068  
    140,000    

5.00%, 12/01/2024

    163,282  
    605,000    

Southwestern Illinois Dev Auth 6.38%, 11/01/2023

    656,153  
     

 

 

 
        24,581,422  
     

 

 

 
          Indiana - 0.2%  
    990,000    

Indiana Housing & Community Dev Auth, (GNMA Insured) 4.00%, 07/01/2048

    1,083,614  
     

 

 

 
          Iowa - 0.4%  
   

Iowa Finance Auth, (GNMA/FNMA/FHLMC Insured)

 
    650,000    

3.25%, 07/01/2050

    718,978  
    770,000    

4.00%, 07/01/2048

    843,681  
     

 

 

 
        1,562,659  
     

 

 

 
          Kentucky - 3.8%  
   

Kentucky Public Energy Auth

 

    6,080,000    

4.00%, 12/01/2049(4)

    6,851,795  
    6,265,000    

4.00%, 02/01/2050(4)

    7,311,130  
   

Kentucky State Property & Building Commission Rev

 
    660,000    

5.00%, 05/01/2024

    759,620  
    1,175,000    

5.00%, 08/01/2024

    1,364,140  
    445,000    

5.00%, 05/01/2025

    528,286  
     

 

 

 
        16,814,971  
     

 

 

 
Shares or Principal Amount   Market Value  
MUNICIPAL BONDS - 68.8% - (continued)      
          Louisiana - 0.1%  
$     365,000    

Louisiana Housing Corp. Rev 4.50%, 12/01/2047

  $ 405,884  
     

 

 

 
          Maine - 0.9%  
   

Maine Municipal Bond Bank

 

    325,000    

5.00%, 09/01/2029(2)

    427,209  
    535,000    

5.00%, 09/01/2031(2)

    707,500  
    415,000    

5.00%, 09/01/2032(2)

    545,327  
    1,920,000    

Maine State Housing Auth 4.00%, 11/15/2048

    2,099,520  
     

 

 

 
        3,779,556  
     

 

 

 
          Maryland - 3.0%  
   

State of Maryland Department of Transportation

 

    7,095,000    

5.00%, 10/01/2029

    9,542,491  
    2,710,000    

5.00%, 10/01/2030

    3,713,486  
     

 

 

 
        13,255,977  
     

 

 

 
          Massachusetts - 0.9%  
    1,685,000    

Commonwealth of Massachusetts, GO 5.00%, 01/01/2035

    2,102,122  
   

Massachusetts Educational Financing Auth

 

    665,000    

3.17%, 07/01/2025

    690,536  
    510,000    

3.27%, 07/01/2026

    528,594  
    560,000    

3.38%, 07/01/2027

    582,865  
    75,000    

Massachusetts Health & Educational Facs Auth 0.12%, 07/01/2027(4)

    75,000  
     

 

 

 
        3,979,117  
     

 

 

 
          Michigan - 0.2%  
   

Southgate, MI, Community School Dist, GO (BAM Q-SBLF Insured)

 
    255,000    

5.00%, 05/01/2024

    294,928  
    350,000    

5.00%, 05/01/2025

    417,903  
    320,000    

State of Michigan Rev 5.00%, 03/15/2027

    402,608  
     

 

 

 
        1,115,439  
     

 

 

 
          Minnesota - 1.8%  
    7,090,000    

Minnesota Housing Finance Agency Rev (GNMA/FNMA/FHLMC Insured) 3.00%, 01/01/2051

    7,770,569  
     

 

 

 
          Mississippi - 0.4%  
    1,435,000    

Mississippi Home Corp. (GNMA/FNMA/FHLMC Insured) 3.25%, 12/01/2050

    1,586,909  
     

 

 

 
          Missouri - 4.2%  
    8,045,000    

Curators of The University Of Missouri 5.00%, 11/01/2030

    10,959,864  
    2,005,000    

Missouri Housing Dev Commission (GNMA/FNMA/FHLMC Insured) 3.25%, 05/01/2051

    2,226,553  
   

Missouri Housing Dev Commission Rev (GNMA/FNMA/FHLMC Insured)

 
    1,140,000    

3.50%, 11/01/2050

    1,274,668  
    1,905,000    

4.25%, 05/01/2049

    2,130,609  
    1,650,000    

4.75%, 05/01/2049

    1,874,846  
     

 

 

 
        18,466,540  
     

 

 

 
          Nebraska - 1.3%  
    4,015,000    

Nebraska Investment Finance Auth 3.00%, 09/01/2050

    4,398,031  
    1,235,000    

Nebraska Investment Finance Auth Rev 4.00%, 09/01/2048

    1,359,846  
     

 

 

 
        5,757,877  
     

 

 

 
          Nevada - 0.4%  
    1,465,000    

Nevada Housing Division, (GNMA/FNMA/FHLMC Insured) 4.00%, 10/01/2049

    1,634,193  
     

 

 

 
          New Jersey - 1.7%  
    1,430,000    

Garden State, NJ, Preservation Trust, (AGM Insured) 5.75%, 11/01/2028

    1,788,201  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  59  

 


Hartford Schroders Tax-Aware Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
MUNICIPAL BONDS - 68.8% - (continued)      
          New Jersey - 1.7% - (continued)  
   

New Jersey Economic Dev Auth

 

$     70,000    

5.00%, 03/01/2026

  $ 75,200  
    285,000    

5.00%, 06/15/2027

    330,868  
    565,000    

5.00%, 06/15/2028

    651,021  
   

New Jersey Transportation Trust Fund Auth

 

    405,000    

5.00%, 06/15/2024

    456,557  
    1,530,000    

5.00%, 12/15/2028

    1,802,600  
    685,000    

5.50%, 12/15/2022

    751,842  
   

New Jersey Turnpike Auth

 

    110,000    

5.00%, 01/01/2023

    120,579  
    605,000    

5.00%, 01/01/2029

    758,912  
    740,000    

Tobacco Settlement Financing Corp., NJ 5.00%, 06/01/2029

    928,056  
     

 

 

 
        7,663,836  
     

 

 

 
          New Mexico - 1.4%  
   

New Mexico Mortgage Finance Auth (GNMA/FNMA/FHLMC Insured)

 
    4,460,000    

3.00%, 01/01/2051

    4,894,984  
    1,010,000    

4.00%, 01/01/2049

    1,113,979  
     

 

 

 
        6,008,963  
     

 

 

 
          New York - 6.0%  
    4,210,000    

City of New York, NY, GO 5.00%, 08/01/2033

    5,395,115  
    2,605,000    

New York City Transitional Finance Auth, Future Tax Secured Rev 5.00%, 05/01/2033

    3,384,911  
    7,600,000    

New York State Dormitory Auth Rev 4.00%, 03/15/2035

    8,961,008  
    285,000    

New York State Dormitory Auth Rev 5.00%, 07/01/2031

    386,731  
   

Port Auth of New York & New Jersey Rev

 

    4,100,000    

1.09%, 07/01/2023

    4,146,494  
    2,585,000    

5.00%, 07/15/2033

    3,307,740  
    750,000    

Port Auth. of New York & New Jersey 5.00%, 07/15/2031

    932,842  
     

 

 

 
        26,514,841  
     

 

 

 
          Ohio - 2.1%  
   

Ohio Housing Finance Agency Rev (GNMA/FNMA/FHLMC Insured)

 
    3,210,000    

3.25%, 03/01/2050

    3,555,621  
    1,650,000    

4.50%, 09/01/2048

    1,847,323  
   

Ohio State University

 

    5,000    

5.00%, 12/01/2030

    6,919  
    5,000    

5.00%, 12/01/2031

    6,997  
   

Ohio Turnpike & Infrastructure Commission Rev

 

    1,680,000    

0.00%, 02/15/2038(3)

    1,082,558  
    1,395,000    

0.00%, 02/15/2041(3)

    804,078  
   

State of Ohio, GO

 

    965,000    

5.00%, 08/01/2027

    1,240,710  
    525,000    

5.00%, 05/01/2032

    705,852  
     

 

 

 
        9,250,058  
     

 

 

 
          Oklahoma - 0.3%  
    1,255,000    

Oklahoma Housing Finance Agency (GNMA/FNMA/FHLMC Insured) 4.00%, 03/01/2050

    1,423,409  
     

 

 

 
          Oregon - 0.9%  
    3,310,000    

Multnomah County, OR, School Dist No.1 Portland, GO (School Bond Guaranty Insured) 5.00%, 06/15/2025

    4,013,607  
     

 

 

 
          Pennsylvania - 2.6%  
    635,000    

Commonwealth Finance Auth, PA 5.00%, 06/01/2032

    792,823  
    1,295,000    

Geisinger, PA, Health System Auth Rev 5.00%, 02/15/2032

    1,566,691  
Shares or Principal Amount   Market Value  
MUNICIPAL BONDS - 68.8% - (continued)      
          Pennsylvania - 2.6% - (continued)  
$     2,220,000    

Pennsylvania Housing Finance Agency 3.50%, 04/01/2049

  $ 2,402,151  
   

Pennsylvania State University

 

    260,000    

5.00%, 03/01/2025

    310,682  
    255,000    

5.00%, 03/01/2026

    314,458  
    450,000    

5.00%, 03/01/2027

    569,425  
    365,000    

5.00%, 03/01/2028

    472,978  
   

Pennsylvania Turnpike Commission Rev

 

    240,000    

5.00%, 12/01/2026

    295,582  
    705,000    

5.00%, 12/01/2027

    887,898  
    445,000    

5.00%, 12/01/2028

    557,986  
    300,000    

5.00%, 12/01/2032

    394,959  
    310,000    

5.00%, 12/01/2033

    406,013  
   

Philadelphia Gas Works Co, (AGM Insured)

 

    440,000    

5.00%, 08/01/2029

    574,882  
    710,000    

5.00%, 08/01/2030

    938,861  
    820,000    

5.00%, 08/01/2033

    1,060,998  
   

Reading, PA, School Dist, GO (AGM State Aid Withholding Insured)

 
    70,000    

5.00%, 03/01/2025

    82,589  
    55,000    

5.00%, 03/01/2026

    66,504  
    50,000    

5.00%, 03/01/2027

    61,154  
     

 

 

 
        11,756,634  
     

 

 

 
          Rhode Island - 2.3%  
    2,230,000    

Rhode Island Commerce Corp. 5.00%, 05/15/2026

    2,744,372  
    6,590,000    

Rhode Island Housing & Mortgage Finance Corp. 3.75%, 10/01/2049

    7,332,363  
     

 

 

 
        10,076,735  
     

 

 

 
          South Carolina - 2.3%  
    6,375,000    

Patriots Energy Group Financing Agency, SC 4.00%, 10/01/2048(4)

    7,022,381  
    2,395,000    

South Carolina Jobs-Economic Dev Auth 3.75%, 01/01/2050

    2,695,525  
    250,000    

Tobacco Settlement Rev Mgmt Auth, SC 6.38%, 05/15/2030

    357,317  
     

 

 

 
        10,075,223  
     

 

 

 
          South Dakota - 0.3%  
   

South Dakota Conservancy Dist

 

    185,000    

5.00%, 08/01/2026

    232,036  
    255,000    

5.00%, 08/01/2027

    328,440  
    185,000    

5.00%, 08/01/2028

    243,704  
    245,000    

5.00%, 08/01/2029

    329,221  
    235,000    

5.00%, 08/01/2030

    322,275  
     

 

 

 
        1,455,676  
     

 

 

 
          Tennessee - 0.4%  
    250,000    

Metropolitan Nashville, TN, Airport Auth 5.00%, 07/01/2049

    296,063  
    1,365,000    

Tennessee Housing Dev Agency 4.50%, 07/01/2049

    1,530,424  
     

 

 

 
        1,826,487  
     

 

 

 
          Texas - 8.4%  
    2,775,000    

Arlington, TX, Higher Education Finance Corp, GO (PSF-GTD Insured) 4.00%, 08/01/2033

    3,432,259  
   

Arlington, TX, Higher Education Finance Corp., (PSF-GTD Insured)

 
    3,770,000    

5.00%, 08/15/2033

    4,926,598  
    2,375,000    

5.00%, 12/01/2047

    2,811,145  
    705,000    

Bexar County, TX, Hospital Dist, GO 5.00%, 02/15/2030

    893,757  
   

City of Houston, TX, Airport System Rev

 

    2,385,000    

5.00%, 07/01/2029

    3,068,946  
    1,325,000    

5.00%, 07/01/2030

    1,724,620  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  60  

 


Hartford Schroders Tax-Aware Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
MUNICIPAL BONDS - 68.8% - (continued)      
          Texas - 8.4% - (continued)  
$     1,305,000    

Conroe, TX, Independent School Dist, GO, (PSF-GTD Insured) 5.00%, 02/15/2030(2)(5)

  $ 1,761,698  
   

Cypress-Fairbanks, TX, Independent School Dist, GO (PSF-GTD Insured)

 
    1,695,000    

4.00%, 02/15/2033

    2,091,918  
    370,000    

5.00%, 02/15/2027

    468,938  
    210,000    

Dallas, TX, Area Rapid Transit Sales Tax Rev (AMBAC Insured) 5.25%, 12/01/2030

    290,058  
    1,190,000    

Dallas-Fort Worth, TX, International Airport Rev 2.04%, 11/01/2024

    1,235,863  
   

El Paso, TX, Independent School Dist, GO (PSF-GTD Insured)

 
    195,000    

5.00%, 08/15/2024

    229,185  
    290,000    

5.00%, 08/15/2025

    353,397  
    390,000    

5.00%, 08/15/2026

    489,138  
    275,000    

Fort Bend, TX, Independent School Dist, GO (PSF-GTD Insured) 5.00%, 08/15/2024

    323,439  
   

Harris County, TX, Cultural Education Facs Finance Corp.

 
    430,000    

5.00%, 11/15/2027

    550,404  
    450,000    

5.00%, 11/15/2028

    571,730  
    430,000    

5.00%, 11/15/2029

    542,333  
   

Lower Colorado River, TX, Auth Rev

 

    370,000    

5.00%, 05/15/2029

    486,976  
    140,000    

5.00%, 05/15/2030

    188,005  
    100,000    

North East Texas Independent School Dist, GO (PSF-GTD Insured) 5.25%, 02/01/2027

    127,859  
   

Northside, TX, Independent School Dist, GO (PSF-GTD Insured)

 
    160,000    

5.00%, 02/15/2025

    191,339  
    90,000    

5.00%, 02/15/2026

    111,111  
    530,000    

5.00%, 02/15/2027

    671,346  
    705,000    

5.00%, 02/15/2028

    914,928  
    480,000    

5.00%, 02/15/2029

    635,966  
    365,000    

5.00%, 02/15/2030

    493,119  
   

Texas Department of Housing & Community Affairs Rev (GNMA Insured)

 
    1,975,000    

3.50%, 03/01/2051

    2,224,818  
    1,285,000    

4.00%, 03/01/2050

    1,467,162  
    1,020,000    

4.75%, 03/01/2049

    1,143,614  
    880,000    

University of Texas 5.00%, 05/15/2035

    1,085,726  
   

University of Texas System

 

    450,000    

5.00%, 08/15/2027

    577,075  
    340,000    

5.00%, 08/15/2028

    433,945  
    480,000    

University of Texas, Permanent University Fund 5.25%, 07/01/2028

    636,283  
     

 

 

 
        37,154,698  
     

 

 

 
          Virginia - 0.7%  
    2,355,000    

Virginia Public Building Auth 5.00%, 08/01/2029

    2,974,412  
     

 

 

 
          Washington - 1.1%  
    240,000    

North Thurston, WA, Public Schools, GO (School Bond Guaranty Insured) 5.00%, 12/01/2027

    310,759  
   

Washington State Housing Finance Commission Rev

 

    2,940,000    

4.00%, 12/01/2048

    3,226,562  
    1,140,000    

4.00%, 06/01/2050

    1,293,968  
     

 

 

 
        4,831,289  
     

 

 

 
          West Virginia - 0.1%  
    360,000    

West Virginia Commissioner of Highways 5.00%, 09/01/2026

    449,222  
     

 

 

 
          Wisconsin - 0.4%  
   

Wisconsin Health & Educational Facs Auth

 

    825,000    

5.00%, 04/01/2032

    1,000,824  
    650,000    

5.00%, 04/01/2033

    785,012  
     

 

 

 
        1,785,836  
     

 

 

 
Shares or Principal Amount   Market Value  
MUNICIPAL BONDS - 68.8% - (continued)      
          Wyoming - 0.3%  
$     1,270,000    

Wyoming Community Dev Auth 4.00%, 06/01/2043

  $ 1,388,542  
     

 

 

 
   

Total Municipal Bonds
(cost $294,035,199)

  $ 305,288,094  
     

 

 

 
U.S. GOVERNMENT AGENCIES - 2.8%  
$     12,316,000    

FNMA 1.50%, 11/01/2050

  $ 12,383,037  
     

 

 

 
   

Total U.S. Government Agencies
(cost $12,427,822)

  $ 12,383,037  
     

 

 

 
U.S. GOVERNMENT SECURITIES - 13.7%      
          U.S. Treasury Securities - 13.7%  
          U.S. Treasury Notes - 13.7%  
$     6,103,000    

0.13%, 04/30/2022

  $ 6,101,331  
    10,383,000    

0.25%, 05/31/2025

    10,340,413  
    14,967,000    

0.25%, 09/30/2025

    14,875,795  
    27,647,000    

1.50%, 01/31/2027

    29,269,105  
     

 

 

 
   

Total U.S. Government Securities
(cost $60,604,221)

  $ 60,586,644  
     

 

 

 
   

Total Long-Term Investments
(cost $419,106,711)

  $ 433,598,948  
     

 

 

 
SHORT-TERM INVESTMENTS - 2.0%  
          Other Investment Pools & Funds - 0.5%  
    2,512,044    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(5)

  $ 2,512,044  
     

 

 

 
          U.S. Treasury Bill - 1.5%  
    6,640,000    

U.S. Treasury Bills 0.09%, 03/04/2021(6)

    6,637,693  
     

 

 

 
   

Total Short-Term Investments
(cost $9,149,979)

  $ 9,149,737  
     

 

 

 
   

Total Investments
(cost $428,256,690)

    99.8    $ 442,748,685  
   

Other Assets & Liabilities

    0.2      693,829  
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $     443,442,514  
     

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

(1) 

Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at October 31, 2020. Rate will reset at a future date. Base lending rates may be subject to a floor or cap.

 

(2) 

This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities was $3,432,538 at October 31, 2020.

 

(3) 

Security is a zero-coupon bond.

 

(4) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  61  

 


Hartford Schroders Tax-Aware Bond Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

(5) 

Current yield as of period end.

 

(6) 

The rate shown represents current yield to maturity.

 

 

Futures Contracts Outstanding at October 31, 2020  

Description

   Number of
Contracts
     Expiration
Date
     Current
Notional
Amount
     Value and
Unrealized
Appreciation/
(Depreciation)
 
Short position contracts:  

U.S. Treasury 5-Year Note Future

     195        12/31/2020      $     24,492,305      $ 74,450  

U.S. Treasury 10-Year Note Future

     502        12/21/2020        69,385,812        445,885  
           

 

 

 

Total

 

   $     520,335  
           

 

 

 

Total futures contracts

 

   $ 520,335  
           

 

 

 

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Corporate Bonds

   $ 55,341,173      $      $ 55,341,173      $     —  

Municipal Bonds

     305,288,094               305,288,094         

U.S. Government Agencies

     12,383,037               12,383,037         

U.S. Government Securities

     60,586,644               60,586,644         

Short-Term Investments

     9,149,737        2,512,044        6,637,693         

Futures Contracts(2)

     520,335        520,335                
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     443,269,020      $     3,032,379      $     440,236,641      $  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

(2) 

Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

  62  

 


Hartford Schroders US MidCap Opportunities Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 97.5%  
      Banks - 2.7%  
  93,670    

Commerce Bancshares, Inc.

  $ 5,830,958  
  56,884    

First Republic Bank

    7,175,348  
  42,202    

M&T Bank Corp.

    4,371,283  
   

 

 

 
      17,377,589  
   

 

 

 
      Capital Goods - 10.7%  
  163,768    

BWX Technologies, Inc.

    9,008,878  
  76,292    

Dover Corp.

    8,446,287  
  134,644    

Fortune Brands Home & Security, Inc.

    10,888,660  
  121,061    

Hexcel Corp.

    4,053,122  
  55,055    

IDEX Corp.

    9,380,822  
  229,558    

Pentair plc

    11,422,806  
  62,011    

Snap-on, Inc.

    9,768,593  
  43,958    

Trane Technologies plc

    5,835,424  
   

 

 

 
      68,804,592  
   

 

 

 
      Commercial & Professional Services - 4.3%  
  147,112    

Dun & Bradstreet Holdings, Inc.*(1)

    3,801,374  
  120,369    

Robert Half International, Inc.

    6,101,504  
  52,612    

Verisk Analytics, Inc.

    9,363,358  
  81,052    

Waste Connections, Inc.

    8,050,085  
   

 

 

 
      27,316,321  
   

 

 

 
      Consumer Durables & Apparel - 3.0%  
  148,232    

Brunswick Corp.

    9,443,861  
  96,735    

Mohawk Industries, Inc.*

    9,982,084  
   

 

 

 
      19,425,945  
   

 

 

 
      Consumer Services - 2.9%  
  250,752    

Aramark

    6,955,861  
  251,612    

Terminix Global Holdings, Inc.*

    11,848,409  
   

 

 

 
      18,804,270  
   

 

 

 
      Diversified Financials - 0.8%  
  64,904    

Raymond James Financial, Inc.

    4,961,262  
   

 

 

 
      Energy - 1.0%  
  74,934    

Diamondback Energy, Inc.

    1,945,287  
  54,984    

Pioneer Natural Resources Co.

    4,374,527  
   

 

 

 
      6,319,814  
   

 

 

 
      Food & Staples Retailing - 1.3%  
  49,588    

Casey’s General Stores, Inc.

    8,359,049  
   

 

 

 
      Food, Beverage & Tobacco - 1.5%  
  71,246    

Hershey Co.

    9,793,475  
   

 

 

 
      Health Care Equipment & Services - 8.8%  
  128,799    

Centene Corp.*

    7,612,021  
  29,553    

Cooper Cos., Inc.

    9,428,885  
  227,389    

Dentsply Sirona, Inc.

    10,730,487  
  147,108    

Encompass Health Corp.

    9,019,191  
  45,488    

Masimo Corp.*

    10,181,124  
  35,181    

West Pharmaceutical Services, Inc.

    9,571,695  
   

 

 

 
      56,543,403  
   

 

 

 
      Household & Personal Products - 0.7%  
  161,068    

Reynolds Consumer Products, Inc.

    4,548,560  
   

 

 

 
      Insurance - 8.8%  
  104,628    

Arthur J Gallagher & Co.

    10,850,970  
  134,660    

Assurant, Inc.

    16,747,664  
  182,899    

Brown & Brown, Inc.

    7,957,936  
  121,732    

Globe Life, Inc.

    9,871,248  
  307,379    

GoHealth, Inc. Class A*(1)

    3,184,446  
  77,292    

Reinsurance Group of America, Inc.

    7,808,038  
   

 

 

 
      56,420,302  
   

 

 

 
Shares or Principal Amount   Market Value  
COMMON STOCKS - 97.5% - (continued)  
      Materials - 4.1%  
  101,459    

Ashland Global Holdings, Inc.

  $ 7,078,794  
  107,500    

Crown Holdings, Inc.*

    9,223,500  
  463,182    

Graphic Packaging Holding Co.

    6,155,689  
  57,167    

LyondellBasell Industries N.V. Class A

    3,913,081  
   

 

 

 
      26,371,064  
   

 

 

 
      Media & Entertainment - 3.9%  
  81,403    

IAC/InterActiveCorp*

    9,826,970  
  51,259    

Match Group, Inc.*

    5,986,026  
  58,371    

Take-Two Interactive Software, Inc.*

    9,042,835  
   

 

 

 
      24,855,831  
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 4.3%  
  150,334    

Catalent, Inc.*

    13,194,815  
  75,473    

PerkinElmer, Inc.

    9,777,527  
  122,228    

Royalty Pharma plc Class A

    4,485,768  
   

 

 

 
      27,458,110  
   

 

 

 
      Real Estate - 4.9%  
  59,783    

Alexandria Real Estate Equities, Inc. REIT

    9,058,320  
  224,193    

Americold Realty Trust REIT(1)

    8,122,513  
  120,264    

Equity LifeStyle Properties, Inc. REIT

    7,118,426  
  23,913    

SBA Communications Corp. REIT

    6,943,618  
   

 

 

 
      31,242,877  
   

 

 

 
      Retailing - 3.7%  
  354,466    

LKQ Corp.*

    11,339,367  
  28,346    

O’Reilly Automotive, Inc.*

    12,375,864  
   

 

 

 
      23,715,231  
   

 

 

 
      Semiconductors & Semiconductor Equipment - 6.2%  
  140,575    

Entegris, Inc.

    10,510,793  
  22,067    

First Solar, Inc.*

    1,920,822  
  95,703    

Microchip Technology, Inc.

    10,056,471  
  50,847    

NXP Semiconductors N.V.

    6,870,447  
  421,712    

ON Semiconductor Corp.*

    10,580,754  
   

 

 

 
      39,939,287  
   

 

 

 
      Software & Services - 11.3%  
  144,260    

Amdocs Ltd.

    8,133,379  
  87,155    

Black Knight, Inc.*

    7,665,282  
  17,086    

EPAM Systems, Inc.*

    5,278,720  
  235,965    

Genpact Ltd.

    8,110,117  
  106,393    

Leidos Holdings, Inc.

    8,830,619  
  130,123    

McAfee Corp. Class A*(1)

    2,180,861  
  25,792    

Palo Alto Networks, Inc.*

    5,704,932  
  132,459    

PTC, Inc.*

    11,110,661  
  409,642    

Teradata Corp.*

    7,525,124  
  42,451    

VeriSign, Inc.*

    8,095,406  
   

 

 

 
      72,635,101  
   

 

 

 
      Technology Hardware & Equipment - 7.5%  
  48,477    

CDW Corp.

    5,943,280  
  137,079    

Ciena Corp.*

    5,399,542  
  149,310    

Dolby Laboratories, Inc. Class A

    11,210,195  
  186,975    

FLIR Systems, Inc.

    6,486,163  
  98,821    

Keysight Technologies, Inc.*

    10,363,358  
  87,133    

TE Connectivity Ltd.

    8,441,445  
   

 

 

 
      47,843,983  
   

 

 

 
      Utilities - 5.1%  
  155,545    

Alliant Energy Corp.

    8,598,528  
  388,445    

CenterPoint Energy, Inc.

    8,207,843  
  51,992    

Eversource Energy

    4,537,342  
  222,463    

FirstEnergy Corp.

    6,611,600  
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  63  

 


Hartford Schroders US MidCap Opportunities Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 97.5% - (continued)  
      Utilities - 5.1% - (continued)  
  210,448    

NiSource, Inc.

  $ 4,833,990  
   

 

 

 
      32,789,303  
   

 

 

 
 

Total Common Stocks
(cost $496,815,687)

  $ 625,525,369  
   

 

 

 
SHORT-TERM INVESTMENTS - 3.6%  
      Other Investment Pools & Funds - 2.6%  
  16,378,296    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(2)

  $ 16,378,296  
   

 

 

 
      Securities Lending Collateral - 1.0%  
  6,673,830    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(2)

    6,673,830  
  6,735    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(2)

    6,735  
   

 

 

 
      6,680,565  
   

 

 

 
 

Total Short-Term Investments
(cost $23,058,861)

  $ 23,058,861  
   

 

 

 
                                 
 

Total Investments
(cost $519,874,548)

    101.1    $     648,584,230  
 

Other Assets and Liabilities

    (1.1 )%       (7,050,388
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 641,533,842  
   

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Banks

   $ 17,377,589      $ 17,377,589      $      $  

Capital Goods

     68,804,592        68,804,592                

Commercial & Professional Services

     27,316,321        27,316,321                

Consumer Durables & Apparel

     19,425,945        19,425,945                

Consumer Services

     18,804,270        18,804,270                

Diversified Financials

     4,961,262        4,961,262                

Energy

     6,319,814        6,319,814                

Food & Staples Retailing

     8,359,049        8,359,049                

Food, Beverage & Tobacco

     9,793,475        9,793,475                

Health Care Equipment & Services

     56,543,403        56,543,403                

Household & Personal Products

     4,548,560        4,548,560                

Insurance

     56,420,302        56,420,302                

Materials

     26,371,064        26,371,064                

Media & Entertainment

     24,855,831        24,855,831                

Pharmaceuticals, Biotechnology & Life Sciences

     27,458,110        27,458,110                

Real Estate

     31,242,877        31,242,877                

Retailing

     23,715,231        23,715,231                

Semiconductors & Semiconductor Equipment

     39,939,287        39,939,287                

Software & Services

     72,635,101        72,635,101                

Technology Hardware & Equipment

     47,843,983        47,843,983                

Utilities

     32,789,303        32,789,303                

Short-Term Investments

     23,058,861        23,058,861                
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     648,584,230      $     648,584,230      $     —      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  64  

 


Hartford Schroders US Small Cap Opportunities Fund

Schedule of Investments

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 95.9%  
      Automobiles & Components - 3.0%  
  43,211    

Gentherm, Inc.*

  $ 2,000,237  
  13,481    

LCI Industries

    1,478,326  
  24,834    

Patrick Industries, Inc.

    1,384,496  
  45,207    

Standard Motor Products, Inc.

    2,070,481  
   

 

 

 
      6,933,540  
   

 

 

 
      Banks - 6.9%  
  14,867    

Cambridge Bancorp

    923,092  
  78,415    

First Interstate BancSystem, Inc. Class A

    2,768,050  
  63,293    

First Merchants Corp.

    1,652,580  
  61,563    

Heritage Financial Corp.

    1,290,360  
  38,438    

Lakeland Financial Corp.

    1,965,335  
  103,425    

OceanFirst Financial Corp.

    1,548,272  
  92,774    

Seacoast Banking Corp. of Florida*

    1,992,786  
  30,724    

South State Corp.

    1,886,454  
  99,033    

United Community Banks, Inc.

    2,073,751  
   

 

 

 
      16,100,680  
   

 

 

 
      Capital Goods - 12.2%  
  33,238    

Albany International Corp. Class A

    1,693,144  
  45,774    

Comfort Systems USA, Inc.

    2,096,449  
  37,542    

Dycom Industries, Inc.*

    2,437,977  
  44,768    

EnPro Industries, Inc.

    2,642,207  
  27,085    

ESCO Technologies, Inc.

    2,266,744  
  14,666    

Generac Holdings, Inc.*

    3,082,060  
  26,813    

Gibraltar Industries, Inc.*

    1,540,407  
  41,155    

Hexcel Corp.

    1,377,869  
  9,704    

IDEX Corp.

    1,653,465  
  68,993    

Maxar Technologies, Inc.

    1,777,950  
  20,203    

Simpson Manufacturing Co., Inc.

    1,792,410  
  9,217    

TPI Composites, Inc.*

    305,267  
  176,376    

Univar Solutions, Inc.*

    2,926,078  
  20,855    

Valmont Industries, Inc.

    2,960,367  
   

 

 

 
      28,552,394  
   

 

 

 
      Commercial & Professional Services - 3.1%  
  73,758    

ASGN, Inc.*

    4,918,184  
  154,272    

KAR Auction Services, Inc.

    2,246,200  
   

 

 

 
      7,164,384  
   

 

 

 
      Consumer Durables & Apparel - 3.6%  
  13,975    

Cavco Industries, Inc.*

    2,405,656  
  41,814    

Oxford Industries, Inc.

    1,721,482  
  82,178    

Skyline Champion Corp.*

    2,107,866  
  94,185    

Steven Madden Ltd.

    2,261,382  
   

 

 

 
      8,496,386  
   

 

 

 
      Consumer Services - 3.2%  
  111,862    

Extended Stay America, Inc.

    1,269,634  
  69,950    

Red Rock Resorts, Inc. Class A

    1,337,444  
  102,921    

Terminix Global Holdings, Inc.*

    4,846,550  
   

 

 

 
      7,453,628  
   

 

 

 
      Diversified Financials - 2.6%  
  139,489    

Compass Diversified Holdings

    2,411,765  
  58,781    

Houlihan Lokey, Inc.

    3,685,568  
   

 

 

 
      6,097,333  
   

 

 

 
      Energy - 1.1%  
  35,131    

Cactus, Inc. Class A

    597,227  
  134,834    

Parsley Energy, Inc. Class A

    1,349,688  
  117,426    

Solaris Oilfield Infrastructure, Inc. Class A

    696,336  
   

 

 

 
      2,643,251  
   

 

 

 
      Food & Staples Retailing - 1.2%  
  85,231    

Performance Food Group Co.*

    2,864,614  
   

 

 

 
      Food, Beverage & Tobacco - 3.0%  
  89,294    

Darling Ingredients, Inc.*

    3,839,642  
Shares or Principal Amount   Market Value  
COMMON STOCKS - 95.9% - (continued)  
      Food, Beverage & Tobacco - 3.0% - (continued)  
  36,357    

Hain Celestial Group, Inc.*

  $ 1,117,978  
  157,284    

Primo Water Corp.

    1,970,768  
   

 

 

 
      6,928,388  
   

 

 

 
      Health Care Equipment & Services - 6.2%  
  64,846    

AdaptHealth Corp.*

    1,770,296  
  207,769    

Change Healthcare, Inc.*

    2,939,931  
  143,437    

Envista Holdings Corp.

    3,789,606  
  14,572    

ICU Medical, Inc.*

    2,590,756  
  9,027    

Mesa Laboratories, Inc.

    2,359,748  
  232,141    

Sientra, Inc.*

    979,635  
   

 

 

 
      14,429,972  
   

 

 

 
      Insurance - 8.1%  
  34,685    

AMERISAFE, Inc.

    2,045,721  
  61,246    

Axis Capital Holdings Ltd.

    2,614,592  
  47,675    

Brown & Brown, Inc.

    2,074,339  
  18,937    

eHealth, Inc.*

    1,270,862  
  50,169    

James River Group Holdings Ltd.

    2,344,397  
  29,328    

Kemper Corp.

    1,808,365  
  28,814    

Palomar Holdings, Inc.*

    2,569,344  
  19,772    

Reinsurance Group of America, Inc.

    1,997,368  
  79,358    

Selectquote, Inc.*

    1,366,545  
  91,892    

Trean Insurance Group, Inc.*

    997,028  
   

 

 

 
      19,088,561  
   

 

 

 
      Materials - 8.7%  
  109,352    

Ardagh Group S.A.

    1,802,121  
  39,597    

Ashland Global Holdings, Inc.

    2,762,683  
  26,052    

Balchem Corp.

    2,603,897  
  40,652    

Compass Minerals International, Inc.

    2,454,568  
  91,172    

Element Solutions, Inc.*

    1,068,536  
  205,616    

Graphic Packaging Holding Co.

    2,732,636  
  182,372    

Pretium Resources, Inc.*

    2,221,291  
  34,417    

Sensient Technologies Corp.

    2,251,904  
  126,270    

Valvoline, Inc.

    2,483,731  
   

 

 

 
      20,381,367  
   

 

 

 
      Media & Entertainment - 1.8%  
  60,161    

John Wiley & Sons, Inc. Class A

    1,862,584  
  22,171    

Madison Square Garden Entertainment Corp.*

    1,441,115  
  347,617    

MDC Partners, Inc. Class A*

    813,424  
   

 

 

 
      4,117,123  
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 7.4%  
  45,459    

Aerie Pharmaceuticals, Inc.*(1)

    482,320  
  9,068    

Bio-Techne Corp.

    2,288,854  
  41,668    

Catalent, Inc.*

    3,657,200  
  142,831    

Evolus, Inc.*(1)

    432,778  
  70,296    

Flexion Therapeutics, Inc.*

    842,849  
  45,729    

Intra-Cellular Therapies, Inc.*

    1,128,134  
  34,409    

Natera, Inc.*

    2,314,349  
  23,477    

Pacira BioSciences, Inc.*

    1,227,847  
  18,315    

Repligen Corp.*

    3,050,730  
  35,820    

Syneos Health, Inc.*

    1,901,326  
   

 

 

 
      17,326,387  
   

 

 

 
      Real Estate - 3.2%  
  50,179    

Douglas Emmett, Inc. REIT

    1,184,224  
  28,585    

Equity LifeStyle Properties, Inc. REIT

    1,691,946  
  138,182    

Kennedy-Wilson Holdings, Inc.

    1,821,239  
  48,103    

Terreno Realty Corp. REIT

    2,707,237  
   

 

 

 
      7,404,646  
   

 

 

 
      Retailing - 1.2%  
  26,569    

Asbury Automotive Group, Inc.*

    2,736,076  
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  65  

 


Hartford Schroders US Small Cap Opportunities Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Shares or Principal Amount   Market Value  
COMMON STOCKS - 95.9% - (continued)  
      Semiconductors & Semiconductor Equipment - 4.7%  
  30,998    

Entegris, Inc.

  $ 2,317,720  
  60,661    

MACOM Technology Solutions Holdings, Inc.*

    2,214,127  
  129,702    

ON Semiconductor Corp.*

    3,254,223  
  59,501    

Semtech Corp.*

    3,266,010  
   

 

 

 
      11,052,080  
   

 

 

 
      Software & Services - 7.3%  
  49,643    

CSG Systems International, Inc.

    1,880,477  
  56,087    

LiveRamp Holdings, Inc.*

    3,706,790  
  78,370    

Perficient, Inc.*

    3,068,969  
  33,226    

PTC, Inc.*

    2,786,997  
  37,112    

Science Applications International Corp.

    2,834,243  
  49,546    

WNS Holdings Ltd. ADR*

    2,855,832  
   

 

 

 
      17,133,308  
   

 

 

 
      Technology Hardware & Equipment - 4.9%  
  117,796    

Allegro MicroSystems, Inc.*

    2,155,667  
  38,288    

Ciena Corp.*

    1,508,164  
  32,978    

Lumentum Holdings, Inc.*

    2,726,951  
  14,533    

Novanta, Inc.*

    1,580,028  
  84,414    

Plantronics, Inc.

    1,647,761  
  156,816    

Viavi Solutions, Inc.*

    1,936,678  
   

 

 

 
      11,555,249  
   

 

 

 
      Utilities - 2.5%  
  31,166    

Avista Corp.

    1,035,334  
  16,707    

Chesapeake Utilities Corp.

    1,624,087  
  21,068    

IDACORP, Inc.

    1,848,296  
  23,727    

SJW Group

    1,439,992  
   

 

 

 
      5,947,709  
   

 

 

 
 

Total Common Stocks
(cost $191,898,491)

  $ 224,407,076  
   

 

 

 
SHORT-TERM INVESTMENTS - 4.9%  
      Other Investment Pools & Funds - 4.7%  
  11,026,556    

Morgan Stanley Institutional Liquidity Funds, Treasury Portfolio, Institutional Class, 0.01%(2)

  $ 11,026,556  
   

 

 

 
      Securities Lending Collateral - 0.2%  
  444,873    

Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.02%(2)

    444,873  
  449    

Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(2)

    449  
   

 

 

 
      445,322  
   

 

 

 
 

Total Short-Term Investments
(cost $11,471,878)

  $ 11,471,878  
   

 

 

 
                                 
 

Total Investments
(cost $203,370,369)

    100.8    $ 235,878,954  
 

Other Assets and Liabilities

    (0.8 )%       (1,935,534
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 233,943,420  
   

 

 

    

 

 

 

 

Note:

Percentage of investments as shown is the ratio of the total market value to total net assets.

 

    

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

    

The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group and/or as defined by Fund management. Industry classifications may not be identical across all security types.

    

Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

    

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes.

 

    

See “Glossary” for abbreviation descriptions.

 

*

Non-income producing.

 

(1) 

Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information.

 

(2) 

Current yield as of period end.

 

 

See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  66  

 


Hartford Schroders US Small Cap Opportunities Fund

Schedule of Investments – (continued)

October 31, 2020

 

 

 

Fair Value Summary

The following is a summary of the fair valuations according to the inputs used as of October 31, 2020 in valuing the Fund’s investments.

 

Description

   Total      Level 1      Level 2      Level 3(1)  

Assets

 

Common Stocks

 

Automobiles & Components

   $ 6,933,540      $ 6,933,540      $      $  

Banks

     16,100,680        16,100,680                

Capital Goods

     28,552,394        28,552,394                

Commercial & Professional Services

     7,164,384        7,164,384                

Consumer Durables & Apparel

     8,496,386        8,496,386                

Consumer Services

     7,453,628        7,453,628                

Diversified Financials

     6,097,333        6,097,333                

Energy

     2,643,251        2,643,251                

Food & Staples Retailing

     2,864,614        2,864,614                

Food, Beverage & Tobacco

     6,928,388        6,928,388                

Health Care Equipment & Services

     14,429,972        14,429,972                

Insurance

     19,088,561        19,088,561                

Materials

     20,381,367        20,381,367                

Media & Entertainment

     4,117,123        4,117,123                

Pharmaceuticals, Biotechnology & Life Sciences

     17,326,387        17,326,387                

Real Estate

     7,404,646        7,404,646                

Retailing

     2,736,076        2,736,076                

Semiconductors & Semiconductor Equipment

     11,052,080        11,052,080                

Software & Services

     17,133,308        17,133,308                

Technology Hardware & Equipment

     11,555,249        11,555,249                

Utilities

     5,947,709        5,947,709                

Short-Term Investments

     11,471,878        11,471,878                
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     235,878,954      $     235,878,954      $     —      $     —  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

For the year ended October 31, 2020, there were no transfers in and out of Level 3.

 

The accompanying notes are an integral part of these financial statements.

 

 

  67  

 


Hartford Schroders Funds

Glossary (abbreviations used in the preceding Schedules of Investments)

 

 

 

Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBK

   Citibank NA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

UBS

   UBS AG
Currency Abbreviations:

BRL

   Brazilian Real

CLP

   Chilean Peso

CNY

   Chinese Yuan

COP

   Colombian Peso

CZK

   Czech Koruna

EUR

   Euro

GBP

   British Pound

HUF

   Hungarian Forint

IDR

   Indonesian Rupiah

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

PEN

   Peruvian Sol

RON

   New Romanian Leu

RUB

   Russian Ruble

THB

   Thai Baht

USD

   United States Dollar

ZAR

   South African Rand
Index Abbreviations:

CMT

   Constant Maturity Treasury Index
Municipal Abbreviations:

Auth

   Authority

Dev

   Development

Dist

   District

Facs

   Facilities

GO

   General Obligation

Rev

   Revenue
Other Abbreviations:

ADR

   American Depositary Receipt

AGM

   Assured Guaranty Municipal Corp.

BAM

   Build America Mutual Assurance Corp.

CLO

   Collateralized Loan Obligation

CMO

   Collateralized Mortgage Obligation

EURIBOR

   Euro Interbank Offered Rate

FGIC

   Financial Guaranty Insurance Company

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GDR

   Global Depositary Receipt

GNMA

   Government National Mortgage Association

JSC

   Joint Stock Company

LIBOR

   London Interbank Offered Rate

NATL

   National Public Finance Guarantee Corp.

NVDR

   Non-Voting Depositary Receipt

OTC

   Over-the-Counter

PJSC

   Private Joint Stock Company

PSF-GTD

   Permanent School Fund Guaranteed

PT

   Perseroan Terbatas

Q-SBLF

   Qualified School Bond Fund Guaranteed

REIT

   Real Estate Investment Trust

SOFR

   Secured Overnight Financing Rate

TCRS

   Tennessee Consolidated Retirement System
 

 

 

  68  

 


Hartford Schroders Funds

Statements of Assets and Liabilities

October 31, 2020

 

 

 

     Hartford
Schroders
China A Fund
     Hartford
Schroders
Emerging
Markets Equity
Fund
     Hartford
Schroders
Emerging
Markets Multi-
Sector Bond
Fund
    Hartford
Schroders
International
Multi-Cap Value
Fund
    Hartford
Schroders
International
Stock Fund
 

Assets:

 

   

Investments in securities, at market value(1)

   $ 7,891,432      $ 4,171,341,501      $ 60,093,106     $ 1,764,567,624     $ 1,019,995,518  

Cash

            5,600,419                     

Cash collateral held for securities on loan

                   73,030       1,605,454       76,048  

Cash collateral due from broker on futures contracts

                         172,543        

Cash collateral due from broker on swap contracts

                   50,000       660,000        

Foreign currency

     1,828        10,883,139        74,132       859,428       58,202  

Unrealized appreciation on OTC swap contracts

                   2,062              

Unrealized appreciation on foreign currency contracts

                   142,647       79,148        

Receivables:

 

   

From affiliates

     11,904               14,212             116  

Investment securities sold

            17,126,333        2,646,094       10,294,783        

Fund shares sold

     9,906        5,251,277        4,252       9,241,060       8,119,133  

Dividends and interest

            3,487,179        944,514       4,481,853       921,423  

Securities lending income

            9,757        587       102,615       36  

Tax reclaims

            76,849        28,933       1,990,470       988,078  

OTC swap contracts premiums paid

                   55,022              

Other assets

     51,170        153,843        69,836       82,328       120,556  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

     7,966,240        4,213,930,297        64,198,427       1,794,137,306       1,030,279,110  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Liabilities:

 

   

Unrealized depreciation on foreign currency contracts

                   57,120       881,902        

Due to Advisor

     105,811                            

Due to Custodian

                         2,318        

Obligation to return securities lending collateral

                   1,460,595       32,109,075       1,520,965  

Unrealized depreciation on OTC swap contracts

                   63,129              

Payables:

 

   

Investment securities purchased

            12,995,418        2,358,826       8,841,253       1,195,546  

Fund shares redeemed

            3,066,545              1,783,186       1,110,937  

Investment management fees

     5,937        3,621,819        35,629       1,083,205       579,102  

Transfer agent fees

     249        481,148        4,508       142,830       74,846  

Accounting services fees

     92        50,041        712       21,573       12,093  

Board of Directors’ fees

     26        15,683        275       7,658       3,053  

Foreign taxes

            519,112        20,253             59,080  

Distribution fees

     44        4,010        61       6,170       6,061  

Accrued expenses

     32,370        952,291        44,451       279,784       102,230  

OTC swap contracts premiums received

                   26,895              
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

     144,529        21,706,067        4,072,454       45,158,954       4,663,913  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net assets

   $ 7,821,711      $ 4,192,224,230      $ 60,125,973     $ 1,748,978,352     $ 1,025,615,197  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Summary of Net Assets:

 

   

Capital stock and paid-in-capital

   $ 5,267,962      $ 3,387,363,537      $ 74,101,904     $ 2,157,179,849     $ 920,742,931  

Distributable earnings (loss)

     2,553,749        804,860,693        (13,975,931     (408,201,497     104,872,266  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net assets

   $ 7,821,711      $     4,192,224,230      $ 60,125,973     $     1,748,978,352     $     1,025,615,197  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Shares authorized

         300,000,000        755,000,000            500,000,000       830,000,000       510,000,000  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Par value

   $ 0.0001      $ 0.0001      $ 0.0001     $ 0.0001     $ 0.0001  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Class A:  Net asset value per share

   $ 15.06      $ 17.22      $ 8.22     $ 7.76     $ 14.14  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Maximum offering price per share

   $ 15.94      $ 18.22      $ 8.61     $ 8.21     $ 14.96  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Shares outstanding

     24,505        3,649,116        210,002       8,394,404       8,063,128  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Net Assets

   $ 369,118      $ 62,843,204      $ 1,727,231     $ 65,123,104     $ 114,041,720  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Class C:  Net asset value per share

   $ 14.98      $ 16.93      $ 8.20     $ 7.71     $ 13.43  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Shares outstanding

     11,859        420,945        26,237       1,646,210       498,070  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Net Assets

   $ 177,653      $ 7,127,490      $ 215,014     $ 12,691,482     $ 6,686,752  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Class I:  Net asset value per share

   $ 15.08      $ 17.22      $ 8.21     $ 7.75     $ 13.71  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Shares outstanding

     12,143        83,812,343        2,583,026       69,408,438       37,676,867  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Net Assets

   $ 183,066      $ 1,443,778,674      $ 21,210,771     $ 538,073,336     $ 516,721,276  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Class R3:  Net asset value per share

   $      $ 17.11      $ 8.23     $ 7.73     $ 13.63  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Shares outstanding

            5,140        3,499       1,732,326       53,885  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

         Net Assets

   $      $ 87,944      $ 28,802     $ 13,397,527     $ 734,255  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  69  

 


Hartford Schroders Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     Hartford
Schroders
China A Fund
     Hartford
Schroders
Emerging
Markets Equity
Fund
     Hartford
Schroders
Emerging
Markets Multi-
Sector Bond
Fund
     Hartford
Schroders
International
Multi-Cap Value
Fund
     Hartford
Schroders
International
Stock Fund
 

Class R4:  Net asset value per share

   $      $ 17.29      $ 8.22      $ 7.74      $ 13.67  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

            260,202        1,301        300,769        185,529  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $      $ 4,500,053      $ 10,688      $ 2,327,982      $ 2,536,146  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Class R5:  Net asset value per share

   $      $ 17.22      $ 8.21      $ 7.75      $ 13.72  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

            18,714        1,307        2,195,694        889,695  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $      $ 322,292      $ 10,725      $ 17,008,384      $ 12,208,171  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Class Y:  Net asset value per share

   $ 15.08      $ 17.25      $ 8.21      $ 7.75      $ 13.76  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     10,000        29,295,641        289,413        21,313,135        4,852,620  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 150,802      $ 505,337,690      $ 2,375,613      $ 165,133,583      $ 66,752,873  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Class F:  Net asset value per share

   $ 15.09      $ 17.24      $ 7.72      $ 7.76      $ 13.74  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     210,000        49,954,943        1,484        46,107,490        12,343,098  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 3,168,750      $ 861,336,871      $ 11,463      $ 357,582,551      $ 169,576,403  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Class SDR:Net asset value per share

   $ 15.09      $ 17.27      $ 8.21      $ 7.74      $ 13.73  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     250,000        75,653,447        4,204,353        74,588,926        9,932,419  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 3,772,322      $ 1,306,890,012      $ 34,535,666      $ 577,640,403      $ 136,357,601  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cost of investments

   $     6,153,263      $     2,921,474,402      $     60,953,545      $ 1,926,793,571      $ 911,708,603  

Cost of foreign currency

   $ 1,824      $ 10,883,690      $ 75,340      $ 857,288      $ 58,698  

(1) Includes Investment in securities on loan, at market value

   $      $      $ 1,412,515      $ 33,127,841      $ 1,508,513  

 

The accompanying notes are an integral part of these financial statements.

 

 

  70  

 


Hartford Schroders Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     Hartford
Schroders
Securitized
Income Fund
    Hartford
Schroders
Tax-Aware
Bond Fund
     Hartford
Schroders US
MidCap
Opportunities
Fund
     Hartford
Schroders US
Small Cap
Opportunities
Fund
 

Assets:

 

     

Investments in securities, at market value(1)

   $ 124,357,176     $ 442,748,685      $     648,584,230      $     235,878,954  

Cash

     5,048                      

Cash at broker

     235,261                      

Cash collateral held for securities on loan

                  351,609        23,438  

Foreign currency

     44,772                      

Unrealized appreciation on foreign currency contracts

     15,225                      

Receivables:

 

     

From affiliates

     15,811       56,625               28,333  

Investment securities sold

           29,389,777        2,209,194        1,844,855  

Fund shares sold

     73,916       370,227        690,513        104,089  

Dividends and interest

     233,315       2,863,863        194,386        29,878  

Securities lending income

                  1,678        4,289  

Variation margin on futures contracts

           1,664,240                

Other assets

     29,518       53,396        61,117        63,911  
  

 

 

   

 

 

    

 

 

    

 

 

 

Total assets

     125,010,042       477,146,813        652,092,727        237,977,747  
  

 

 

   

 

 

    

 

 

    

 

 

 

Liabilities:

 

     

Unrealized depreciation on foreign currency contracts

     20,040                      

Obligation to return securities lending collateral

                  7,032,174        468,760  

Reverse repurchase agreements

     30,923,513                      

Payables:

 

     

Investment securities purchased

     7,576       32,816,209        1,880,019        2,882,684  

Fund shares redeemed

     250       620,928        1,009,156        413,084  

Investment management fees

     48,885       168,853        428,573        182,805  

Transfer agent fees

     3,935       44,781        95,780        37,711  

Accounting services fees

     1,051       5,246        7,989        2,840  

Board of Directors’ fees

     320       1,646        2,922        915  

Distribution fees

     300       3,762        10,329        2,172  

Interest on reverse repurchase agreements

     29,130                      

Accrued expenses

     48,296       42,874        91,943        43,356  
  

 

 

   

 

 

    

 

 

    

 

 

 

Total liabilities

     31,083,296       33,704,299        10,558,885        4,034,327  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net assets

   $ 93,926,746     $ 443,442,514      $ 641,533,842      $ 233,943,420  
  

 

 

   

 

 

    

 

 

    

 

 

 

Summary of Net Assets:

 

     

Capital stock and paid-in-capital

   $ 95,518,275     $ 422,691,520      $ 514,669,803      $ 210,659,240  

Distributable earnings (loss)

     (1,591,529     20,750,994        126,864,039        23,284,180  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net assets

   $ 93,926,746     $ 443,442,514      $ 641,533,842      $ 233,943,420  
  

 

 

   

 

 

    

 

 

    

 

 

 

Shares authorized

         300,000,000           360,000,000        500,000,000        500,000,000  
  

 

 

   

 

 

    

 

 

    

 

 

 

Par value

   $ 0.0001     $ 0.0001      $ 0.0001      $ 0.0001  
  

 

 

   

 

 

    

 

 

    

 

 

 

Class A:  Net asset value per share

   $ 9.79     $ 11.42      $ 14.57      $ 23.20  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Maximum offering price per share

   $ 10.09     $ 11.96      $ 15.42      $ 24.55  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Shares outstanding

     567,104       4,944,375        4,897,135        1,030,152  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 5,553,386     $ 56,486,046      $ 71,369,542      $ 23,896,881  
  

 

 

   

 

 

    

 

 

    

 

 

 

Class C:  Net asset value per share

   $ 9.79     $ 11.44      $ 14.67      $ 23.54  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Shares outstanding

     45,230       763,486        2,984,500        295,533  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 442,656     $ 8,731,168      $ 43,784,634      $ 6,957,148  
  

 

 

   

 

 

    

 

 

    

 

 

 

Class I:  Net asset value per share

   $ 9.79     $ 11.43      $ 15.19      $ 24.45  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Shares outstanding

     6,702,220       24,759,119        23,213,916        5,924,574  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 65,635,900     $ 283,060,301      $ 352,667,245      $ 144,884,663  
  

 

 

   

 

 

    

 

 

    

 

 

 

Class R3:  Net asset value per share

   $     $      $ 14.92      $ 24.11  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Shares outstanding

                  65,339        10,042  
  

 

 

   

 

 

    

 

 

    

 

 

 

         Net Assets

   $     $      $ 975,063      $ 242,123  
  

 

 

   

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  71  

 


Hartford Schroders Funds

Statements of Assets and Liabilities – (continued)

October 31, 2020

 

 

 

     Hartford
Schroders
Securitized
Income Fund
     Hartford
Schroders
Tax-Aware
Bond Fund
     Hartford
Schroders US
MidCap
Opportunities
Fund
     Hartford
Schroders US
Small Cap
Opportunities
Fund
 

Class R4:  Net asset value per share

   $      $      $ 15.08      $ 24.35  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

                   37,607        7,955  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $      $      $ 567,073      $ 193,720  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R5:  Net asset value per share

   $      $      $ 15.16      $ 24.44  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

                   81,033        11,998  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $      $      $ 1,228,624      $ 293,203  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class Y:  Net asset value per share

   $ 9.79      $ 11.44      $ 15.18      $ 24.46  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     364,849        18,643        5,105,895        962,115  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 3,571,128      $ 213,212      $ 77,492,685      $ 23,530,993  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class F:  Net asset value per share

   $ 9.78      $ 11.44      $ 15.20      $ 24.49  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     208,001        2,892,083        3,655,128        424,897  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 2,035,235      $ 33,074,110      $ 55,554,184      $ 10,407,102  
  

 

 

    

 

 

    

 

 

    

 

 

 

Class SDR:Net asset value per share

   $ 9.78      $ 11.43      $ 15.23      $ 24.52  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Shares outstanding

     1,706,410        5,415,756        2,488,851        959,882  
  

 

 

    

 

 

    

 

 

    

 

 

 

         Net Assets

   $ 16,688,441      $ 61,877,677      $ 37,894,792      $ 23,537,587  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost of investments

   $ 125,375,356      $ 428,256,690      $     519,874,548      $     203,370,369  

Cost of foreign currency

   $ 44,547      $      $      $  

(1) Includes Investment in securities on loan, at market value

   $      $      $ 6,875,747      $ 453,147  

 

The accompanying notes are an integral part of these financial statements.

 

 

  72  

 


Hartford Schroders Funds

Statements of Operations

For the Period Ended October 31, 2020

 

 

 

     Hartford
Schroders
China A
Fund(1)
    Hartford
Schroders
Emerging
Markets Equity
Fund
    Hartford
Schroders
Emerging
Markets Multi-
Sector Bond
Fund
    Hartford
Schroders
International
Multi-Cap
Value Fund
    Hartford
Schroders
International
Stock Fund
 

Investment Income:

          

Dividends

   $ 93,917     $ 79,766,110     $     $ 67,800,774     $ 10,990,005  

Interest

     101       544,248       4,431,555       145,665       69,174  

Securities lending

           65,410       10,648       1,071,315       16,962  

Less: Foreign tax withheld

     (9,168     (9,718,335     (19,550     (6,691,920     (1,050,273
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income, net

     84,850       70,657,433       4,422,653       62,325,834       10,025,868  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

          

Investment management fees

     34,437       37,538,766       485,917       13,326,644       4,178,799  

Transfer agent fees

          

Class A

     234       123,642       2,892       107,532       84,036  

Class C

     190       7,113       576       17,562       4,656  

Class I

     152       2,883,871       18,390       603,475       247,436  

Class R3

           171       51       34,878       1,032  

Class R4

           2,258       18       4,407       1,487  

Class R5

           699       13       19,386       5,188  

Class Y

     81       255,595       150       156,483       10,614  

Class F

     62       7,518       231       6,265       342  

Class SDR

     73       3,421       313       24,283       1,855  

Distribution fees

          

Class A

     281       153,593       3,941       228,564       179,924  

Class C

     801       82,195       2,302       162,234       47,405  

Class R3

           393       117       79,352       2,445  

Class R4

           5,757       25       6,490       2,469  

Custodian fees

     6,000       792,864       17,840       223,069       34,729  

Registration and filing fees

     67,175       206,878       111,650       174,761       174,843  

Accounting services fees

     577       570,768       10,847       295,543       95,277  

Board of Directors’ fees

     143       114,202       1,980       58,270       21,179  

Audit and tax fees

     24,390       49,931       30,415       48,521       37,608  

Other expenses

     14,255       647,066       19,759       252,330       125,396  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses (before waivers, reimbursements and fees paid indirectly)

     148,851       43,446,701       707,427       15,830,049       5,256,720  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Expense waivers

     (109,265           (158,720           (115

Transfer agent fee waivers

                       (72,465      

Distribution fee reimbursements

     (162     (119     (218     (75     (255
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total waivers, reimbursements and fees paid indirectly

     (109,427     (119     (158,938     (72,540     (370
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net

     39,424       43,446,582       548,489       15,757,509       5,256,350  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     45,426       27,210,851       3,874,164       46,568,325       4,769,518  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions on:

          

Investments

     777,661       (142,629,100     (4,217,643     (93,443,687     1,084,273  

Less: Foreign taxes paid on realized capital gains

           (1,376,558     (33,417            

Futures contracts

                 (219,087     (2,639,875      

Swap contracts

                 (67,912            

Foreign currency contracts

           (13,368     (631,007     (1,545,852      

Other foreign currency transactions

     (7,715     (2,819,794     (53,719     (13,279     (269,138
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     769,946       (146,838,820     (5,222,785     (97,642,693     815,135  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions of:

          

Investments*

     1,738,169       476,812,899       (2,573,128     (183,569,308     61,237,915  

Futures contracts

                 6,047              

Swap contracts

                 (61,732            

Foreign currency contracts

                 549,106       (703,726      

Translation of other assets and liabilities in foreign currencies

     4       343,853       (4,630     110,723       61,037  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     1,738,173       477,156,752       (2,084,337     (184,162,311     61,298,952  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     2,508,119       330,317,932       (7,307,122     (281,805,004     62,114,087  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     2,553,545     $     357,528,783     $     (3,432,958   $     (235,236,679   $     66,883,605  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

* Includes change in deferred capital gains tax due to unrealized appreciation (depreciation)

   $     $ 1,463,250     $ 27,382     $ 82,300     $ (59,080

 

(1) 

Commenced operations on March 31, 2020.

 

The accompanying notes are an integral part of these financial statements.

 

 

  73  

 


Hartford Schroders Funds

Statements of Operations – (continued)

For the Year Ended October 31, 2020

 

 

 

     Hartford
Schroders
Securitized
Income Fund
    Hartford
Schroders
Tax-Aware
Bond Fund
    Hartford
Schroders US
MidCap
Opportunities
Fund
    Hartford
Schroders US
Small Cap
Opportunities
Fund
 

Investment Income:

        

Dividends

   $ 1,986     $     $ 9,137,672     $ 3,026,163  

Interest

     2,543,713       8,198,228       219,812       76,542  

Securities lending

           6,098       22,292       96,692  

Less: Foreign tax withheld

                 (10,587     (17,268
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income, net

     2,545,699       8,204,326       9,369,189       3,182,129  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Investment management fees

     512,644       1,746,635       5,630,881       2,023,235  

Transfer agent fees

        

Class A

     349       26,280       95,057       35,285  

Class C

     486       8,165       57,443       11,768  

Class I

     19,346       201,806       382,980       148,994  

Class R3

                 2,730       450  

Class R4

                 1,118       333  

Class R5

                 1,649       196  

Class Y

     179       229       112,706       24,919  

Class F

     90       1,095       2,151       193  

Class SDR

     325       806       1,872       657  

Distribution fees

        

Class A

     9,794       118,172       194,498       55,549  

Class C

     2,023       87,729       505,405       71,940  

Class R3

                 6,308       1,020  

Class R4

                 1,642       491  

Custodian fees

     16,025       10,778       10,127       8,331  

Registration and filing fees

     120,120       113,202       129,885       121,097  

Accounting services fees

     12,295       57,587       111,007       33,316  

Board of Directors’ fees

     2,831       13,022       21,742       7,056  

Audit and tax fees

     41,975       28,519       20,550       20,445  

Other expenses

     16,987       44,837       149,020       56,011  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses (before interest expense)

     755,469       2,458,862       7,438,771       2,621,286  
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

     286,940                    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses (before waivers, reimbursements and fees paid indirectly)

     1,042,409       2,458,862       7,438,771       2,621,286  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expense waivers

     (171,106     (385,633           (138,926

Transfer agent fee waivers

                 (11,090      

Distribution fee reimbursements

     (8,759     (135     (394     (553
  

 

 

   

 

 

   

 

 

   

 

 

 

Total waivers, reimbursements and fees paid indirectly

     (179,865     (385,768     (11,484     (139,479
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net

     862,544       2,073,094       7,427,287       2,481,807  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     1,683,155       6,131,232       1,941,902       700,322  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions on:

        

Investments

     (405,412     6,816,872       (1,692,193     (9,348,078

Futures contracts

     (314,298     (1,124,168            

Foreign currency contracts

     9,089                    

Other foreign currency transactions

     26,049             24       (38,019
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     (684,572     5,692,704       (1,692,169     (9,386,097
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions of:

        

Investments

     (1,206,735     4,507,927       (22,415,488     (4,072,609

Futures contracts

     234,239       493,780              

Foreign currency contracts

     (4,815                  

Translation of other assets and liabilities in foreign currencies

     39                    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     (977,272     5,001,707       (22,415,488     (4,072,609
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

         (1,661,844     10,694,411       (24,107,657     (13,458,706
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ 21,311     $     16,825,643     $     (22,165,755)     $     (12,758,384
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  74  

 


Hartford Schroders Funds

Statements of Changes in Net Assets

 

 

 

     Hartford
Schroders
China A Fund
    Hartford Schroders Emerging
Markets Equity Fund
 
     For the
Period Ended
October 31,
2020(1)
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

      

Net investment income (loss)

   $ 45,426     $ 27,210,851     $ 77,530,494  

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     769,946       (146,838,820     (45,829,064

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     1,738,173       477,156,752       401,724,157  
  

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     2,553,545       357,528,783       433,425,587  
  

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

      

Class A

           (1,276,901     (481,292

Class C

           (135,012     (46,251

Class I

           (42,224,830     (20,186,735

Class R3

           (1,392     (787

Class R4

           (394     (45,699

Class R5

           (15,146     (6,306

Class Y

           (3,396,489     (2,433,096

Class F

           (10,265,925     (2,614,489

Class SDR

           (28,457,971     (13,830,184
  

 

 

   

 

 

   

 

 

 

Total distributions

           (85,774,060     (39,644,839
  

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

      

Sold

     5,537,911       2,338,027,384       1,569,572,457  

Issued on reinvestment of distributions

           52,562,018       24,314,244  

Redeemed

     (269,745     (2,049,052,553     (1,407,536,600
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     5,268,166       341,536,849       186,350,101  
  

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     7,821,711       613,291,572       580,130,849  
  

 

 

   

 

 

   

 

 

 

Net Assets:

      

Beginning of period

           3,578,932,658       2,998,801,809  
  

 

 

   

 

 

   

 

 

 

End of period

   $     7,821,711     $     4,192,224,230     $     3,578,932,658  
  

 

 

   

 

 

   

 

 

 

 

(1) 

Commenced operations on March 31, 2020.

 

The accompanying notes are an integral part of these financial statements.

 

 

  75  

 


Hartford Schroders Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     Hartford Schroders Emerging
Markets Multi-Sector Bond Fund
    Hartford Schroders
International Multi-Cap Value Fund
 
     For the
Year Ended
October 31,
2020
     For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

         

Net investment income (loss)

   $ 3,874,164      $ 6,447,810     $ 46,568,325     $ 62,260,816  

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     (5,222,785      (2,595,522     (97,642,693     (146,143,367

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     (2,084,337      5,286,245       (184,162,311     211,806,292  
  

 

 

    

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     (3,432,958      9,138,533       (235,236,679     127,923,741  
  

 

 

    

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

         

From distributable earnings

         

Class A

     (60,738      (133,660     (2,469,969     (4,247,199

Class C

     (7,559      (7,719     (323,461     (1,098,114

Class I

     (995,009      (1,588,823     (18,811,004     (42,940,197

Class R3

     (966      (536     (369,795     (308,569

Class R4

     (448      (537     (68,291     (96,105

Class R5

     (453      (548     (570,494     (1,208,181

Class Y

     (96,816      (80,113     (4,370,513     (6,351,435

Class F

     (143,762      (1,396,956     (11,330,692     (15,601,049

Class SDR

     (1,493,256      (1,851,571     (18,442,460     (31,533,597

From tax return of capital

         

Class A

     (17,785      (11,860            

Class C

     (2,214      (685            

Class I

     (291,352      (140,988            

Class R3

     (283      (48            

Class R4

     (131      (48            

Class R5

     (133      (49            

Class Y

     (28,349      (7,109            

Class F

     (42,096      (123,963            

Class SDR

     (437,245      (164,304            
  

 

 

    

 

 

   

 

 

   

 

 

 

Total distributions

     (3,618,595      (5,509,517     (56,756,679     (103,384,446
  

 

 

    

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

         

Sold

     15,086,632        19,812,789       798,908,249       929,356,674  

Issued on reinvestment of distributions

     3,616,560        5,473,630       50,947,105       93,713,594  

Redeemed

     (45,608,267      (39,875,815     (881,294,700     (841,072,557
  

 

 

    

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (26,905,075      (14,589,396     (31,439,346     181,997,711  
  

 

 

    

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (33,956,628      (10,960,380     (323,432,704     206,537,006  
  

 

 

    

 

 

   

 

 

   

 

 

 

Net Assets:

         

Beginning of period

     94,082,601        105,042,981       2,072,411,056       1,865,874,050  
  

 

 

    

 

 

   

 

 

   

 

 

 

End of period

   $     60,125,973      $     94,082,601     $     1,748,978,352     $     2,072,411,056  
  

 

 

    

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  76  

 


Hartford Schroders Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     Hartford Schroders
International Stock Fund
    Hartford Schroders
Securitized Income Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Period Ended
October 31,
2019(1)
 

Operations:

        

Net investment income (loss)

   $ 4,769,518     $ 5,769,350     $ 1,683,155     $ 946,180  

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     815,135       (7,907,102     (684,572     351,147  

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     61,298,952       42,350,698       (977,272     (206,707
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     66,883,605       40,212,946       21,311       1,090,620  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (551,218     (1,107,203     (89,717     (50,264

Class C

     (10,939     (157,415     (1,709      

Class I

     (2,937,044     (10,142,730     (720,698     (61,092

Class R3

     (2,018     (887            

Class R4

     (3,576     (891            

Class R5

     (21,848     (901            

Class Y

     (12,698     (416,824     (82,780     (53,578

Class F

     (1,036,195     (995,487     (53,914     (38,286

Class SDR

     (957,577     (5,246,663     (858,565     (692,857
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (5,533,113     (18,069,001     (1,807,383     (896,077
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

        

Sold

     714,548,186       267,703,140       97,752,072       94,071,017  

Issued on reinvestment of distributions

     5,300,485       17,755,039       1,439,757       691,846  

Redeemed

     (196,939,513     (91,102,156     (98,425,735     (10,682
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     522,909,158       194,356,023       766,094       94,752,181  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     584,259,650       216,499,968       (1,019,978     94,946,724  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

        

Beginning of period

     441,355,547       224,855,579       94,946,724        
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     1,025,615,197     $     441,355,547     $     93,926,746     $     94,946,724  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  77  

 


Hartford Schroders Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     Hartford Schroders
Tax-Aware Bond Fund
    Hartford Schroders US MidCap
Opportunities Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
    For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

        

Net investment income (loss)

   $ 6,131,232     $ 5,761,498     $ 1,941,902     $ 3,217,479  

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     5,692,704       6,911,867       (1,692,169     7,531,128  

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     5,001,707       9,932,702       (22,415,488     102,046,455  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     16,825,643       22,606,067       (22,165,755     112,795,062  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

Class A

     (1,459,342     (758,076     (618,118     (1,875,469

Class C(2)

     (217,886     (121,750     (401,295     (1,310,733

Class I

     (8,545,891     (4,585,616     (4,612,066     (13,979,494

Class R3

                 (8,911     (18,758

Class R4

                 (4,116     (18,966

Class R5

                 (13,317     (52,582

Class Y

     (7,512     (7,078     (1,235,418     (2,455,954

Class F

     (939,696     (408,408     (581,930     (1,075,458

Class SDR

     (2,255,888     (2,099,274     (830,635     (1,352,705
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (13,426,215     (7,980,202     (8,305,806     (22,140,119
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

        

Sold

     263,674,922       186,245,249       165,475,065       305,402,261  

Issued on reinvestment of distributions

     10,792,934       6,069,834       7,957,824       19,743,423  

Redeemed

     (168,973,451     (91,171,993     (403,818,804     (541,524,513
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     105,494,405       101,143,090       (230,385,915     (216,378,829
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     108,893,833       115,768,955       (260,857,476     (125,723,886
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

        

Beginning of period

     334,548,681       218,779,726       902,391,318       1,028,115,204  
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     443,442,514     $     334,548,681     $     641,533,842     $     902,391,318  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Commenced operations on February 28, 2019.

(2) 

Class C of the Securitized Income Fund commenced operations on February 28, 2020.

 

The accompanying notes are an integral part of these financial statements.

 

 

  78  

 


Hartford Schroders Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     Hartford Schroders US Small Cap
Opportunities Fund
 
     For the
Year Ended
October 31,
2020
    For the
Year Ended
October 31,
2019
 

Operations:

    

Net investment income (loss)

   $ 700,322     $ 585,427  

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     (9,386,097     10,306,177  

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     (4,072,609     8,527,470  
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     (12,758,384     19,419,074  
  

 

 

   

 

 

 

Distributions to Shareholders:

    

Class A

     (1,122,710     (1,273,415

Class C

     (365,812     (613,652

Class I

     (7,302,285     (9,398,176

Class R3

     (4,953     (6,097

Class R4

     (13,210     (928

Class R5

     (4,561     (1,691

Class Y

     (1,302,907     (2,040,823

Class F

     (257,410     (254,541

Class SDR

     (585,075     (959,593
  

 

 

   

 

 

 

Total distributions

     (10,958,923     (14,548,916
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     125,609,869       60,412,503  

Issued on reinvestment of distributions

     10,784,153       14,244,734  

Redeemed

     (88,923,234     (37,311,741
  

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     47,470,788       37,345,496  
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     23,753,481       42,215,654  
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

     210,189,939       167,974,285  
  

 

 

   

 

 

 

End of period

   $     233,943,420     $     210,189,939  
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  79  

 


Hartford Schroders Funds

Statement of Cash Flows

For the Year Ended October 31, 2020

 

 

 

     Hartford
Schroders
Securitized
Income Fund
 

Increase (decrease) in cash

  

Cash flows from operating activities

  

Net increase in net assets resulting from operations

   $ 21,311  
  

 

 

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:

  

Purchases of investment securities

   $     (105,398,529

Sales of investment securities

     70,476,946  

Net purchases, sales and maturities of short-term investments

     8,122,079  

Net amortization/ accretion of premium (discount)

     65,806  

Increase in dividends and interest receivable

     (63,950

Increase in receivable from affiliates

     (15,811

Increase in variation margin on futures contracts

     45,449  

Increase in other assets

     (3,059

Decrease in investment management fees payables

     (1,996

Decrease in accounting services fees payables

     (358

Increase in transfer agent fees payable

     3,093  

Increase in Board of Trustees' fees payables

     320  

Increase in distribution fees payables

     202  

Increase in interest on reverse repurchase agreements

     23,852  

Decrease in accrued expenses

     (47,105

Net realized loss on investments

     405,412  

Net change in unrealized appreciation (depreciation) of investments in securities

     1,206,735  

Net change in unrealized appreciation (depreciation) on foreign currency contracts

     4,815  
  

 

 

 

Net cash used for operating activities

   $ (25,176,099
  

 

 

 

Cash flows from financing activities

  

Proceeds from reverse repurchase agreements

   $ 124,022,525  

Repayment of reverse repurchase agreements

     (97,847,181

Proceeds from shares sold

     97,678,156  

Cost of shares repurchased

     (98,425,485

Dividends paid to shareholders

     (367,626
  

 

 

 

Net cash provided by financing activities

   $ 25,060,389  
  

 

 

 

Net decrease in cash and foreign currency

   $ (94,399
  

 

 

 

Cash and foreign currency, beginning of year*

   $ 379,480  

Cash and foreign currency, end of year*

   $ 285,081  

Supplemental disclosure of cash flow information:

  

Reinvestment of dividends

   $ 1,439,757  

Cash paid during the year for interest

   $ 263,088  

 

*

Components of cash

 

     Beginning
of Year
     End
of Year
 

Cash

   $      $ 5,048  

Restricted cash

     221,488        235,261  

Foreign currency

     157,992        44,772  
  

 

 

    

 

 

 
   $     379,480      $     285,081  
  

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  80  

 


Hartford Schroders Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns
of Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders China A Fund(4)  

For the Period Ended October 31, 2020

 

A

  $   10.00     $   0.04     $   5.02     $   5.06     $   —     $   —     $   —     $   —     $   15.06       50.60 %(5)    $ 369       4.28 %(6)      1.29 %(6)      0.55 %(6)      46

C

    10.00       0.00 (7)      4.98       4.98                               14.98       49.80 (5)      178       5.08 (6)      2.22 (6)      (0.04 )(6)      46  

I

    10.00       0.07       5.01       5.08                               15.08       50.80 (5)      183       4.01 (6)      1.15 (6)      0.93 (6)      46  

Y

    10.00       0.09       4.99       5.08                               15.08       50.80 (5)      151       3.95 (6)      1.10 (6)      1.14 (6)      46  

F

    10.00       0.10       4.99       5.09                               15.09       50.90 (5)      3,169       3.85 (6)      0.99 (6)      1.24 (6)      46  

SDR

    10.00       0.10       4.99       5.09                               15.09       50.90 (5)      3,772       3.85 (6)      0.99 (6)      1.24 (6)      46  
Hartford Schroders Emerging Markets Equity Fund(20)  

For the Year Ended October 31, 2020

 

A

  $ 15.78     $ 0.06     $ 1.71     $ 1.77     $   (0.33   $     $     $   (0.33   $ 17.22       11.28   $ 62,843       1.53     1.53     0.40     52

C

    15.51       (0.05     1.67       1.62       (0.20                 (0.20     16.93       10.51       7,127       2.16       2.16       (0.34     52  

I

    15.77       0.10       1.71       1.81       (0.36                 (0.36     17.22       11.56       1,443,799       1.25       1.25       0.63       52  

R3

    15.66       0.03       1.70       1.73       (0.28                 (0.28     17.11       11.08       88       1.79       1.71       0.21       52  

R4

    15.74       0.17       1.62       1.79       (0.24                 (0.24     17.29       11.43       4,500       1.43       1.43       1.09       52  

R5

    15.78       0.11       1.70       1.81       (0.37                 (0.37     17.22       11.55       322       1.20       1.20       0.69       52  

Y

    15.79       0.13       1.70       1.83       (0.37                 (0.37     17.25       11.69       505,338       1.18       1.18       0.85       52  

F

    15.78       0.14       1.71       1.85       (0.39                 (0.39     17.24       11.79       861,337       1.08       1.08       0.85       52  

SDR

    15.81       0.13       1.72       1.85       (0.39                 (0.39     17.27       11.77       1,306,890       1.08       1.08       0.83       52  

For the Year Ended October 31, 2019

 

A

  $ 14.07     $ 0.29     $ 1.56     $ 1.85     $ (0.14   $     $     $ (0.14   $ 15.78       13.27   $ 60,356       1.45     1.45     1.95     43

C

    13.86       0.19       1.53       1.72       (0.07                 (0.07     15.51       12.50       10,532       2.17       2.17       1.27       43  

I

    14.06       0.31       1.57       1.88       (0.17                 (0.17     15.77       13.54       1,838,077       1.23       1.23       2.07       43  

R3

    13.98       0.23       1.57       1.80       (0.12                 (0.12     15.66       13.01       83       1.79       1.72       1.51       43  

R4

    14.02       (0.05     1.95       1.90       (0.18                 (0.18     15.74       13.78       26       1.43       1.42       (0.32     43  

R5

    14.07       0.33       1.56       1.89       (0.18                 (0.18     15.78       13.61       600       1.19       1.19       2.19       43  

Y

    14.09       0.32       1.57       1.89       (0.19                 (0.19     15.79       13.62       120,308       1.13       1.13       2.11       43  

F

    14.07       0.42       1.48       1.90       (0.19                 (0.19     15.78       13.73       419,520       1.07       1.07       2.77       43  

SDR

    14.10       0.34       1.56       1.90       (0.19                 (0.19     15.81       13.71         1,129,431       1.07       1.07       2.28       43  

For the Year Ended October 31, 2018

 

A

  $ 16.23     $ 0.16     $ (2.22   $ (2.06   $ (0.10   $     $     $ (0.10   $ 14.07       (12.79 )%    $ 46,162       1.45     1.45     0.98     24

C

    16.08       0.07       (2.22     (2.15     (0.07                 (0.07     13.86       (13.44     7,217       2.19       2.19       0.45       24  

I

    16.23       0.19       (2.22     (2.03     (0.14                 (0.14     14.06       (12.66     1,733,270       1.24       1.24       1.19       24  

R3

    16.20       0.22       (2.30     (2.08     (0.14                 (0.14     13.98       (12.99     90       1.80       1.70       1.36       24  

R4

    16.19       0.05       (2.11     (2.06     (0.11                 (0.11     14.02       (12.88     3,710       1.49       1.48       0.36       24  

R5

    16.23       0.27       (2.29     (2.02     (0.14                 (0.14     14.07       (12.56     484       1.20       1.20       1.69       24  

Y

    16.25       0.23       (2.24     (2.01     (0.15                 (0.15     14.09       (12.48     123,082       1.11       1.11       1.43       24  

F

    16.23       0.30       (2.30     (2.00     (0.16                 (0.16     14.07       (12.48     154,306       1.08       1.08       1.89       24  

SDR

    16.26       0.23       (2.23     (2.00     (0.16                 (0.16     14.10       (12.46     930,480       1.08       1.08       1.43       24  

For the Year Ended October 31, 2017

 

       

A

  $ 12.59     $ 0.10     $ 3.62     $ 3.72     $ (0.08   $     $     $ (0.08   $ 16.23       29.83   $ 53,107       1.56     1.50     0.69     33

C

    12.58       0.04       3.57       3.61       (0.11                 (0.11     16.08       29.00       3,658       2.25       2.25       0.25       33  

I

    12.59       0.14       3.61       3.75       (0.11                 (0.11     16.23       30.14       1,848,368       1.35       1.25       0.98       33  

R3

    12.58       0.10       3.62       3.72       (0.10                 (0.10     16.20       29.87       13       1.86       1.48       0.71       33  

R4

    12.58       0.16       3.56       3.72       (0.11                 (0.11     16.19       29.86       136       1.52       1.50       1.11       33  

R5

    12.58       0.13       3.63       3.76       (0.11                 (0.11     16.23       30.26       13       1.25       1.20       0.97       33  

Y

    12.58       0.26       3.53       3.79       (0.12                 (0.12     16.25       30.45       97,758       1.14       1.14       1.72       33  

F(8)

    12.98       0.16       3.09       3.25                               16.23       25.04 (5)      42,462       1.10 (6)      1.10 (6)      1.57 (6)      33  

SDR

    12.60       0.15       3.63       3.78       (0.12                 (0.12     16.26       30.32       710,039       1.10       1.10       1.10       33  

 

The accompanying notes are an integral part of these financial statements.

 

 

  81  

 


Hartford Schroders Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns
of Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders Emerging Markets Equity Fund(20) – (continued)  

For the Year Ended October 31, 2016

 

       

A

  $   11.56     $ 0.08     $ 1.02 (10)    $ 1.10     $ (0.07   $     $     $ (0.07   $   12.59       9.59   $ 38,918       1.57     1.49     0.71     47

C(9)

    12.68         (0.01       (0.09       (0.10                             12.58       (0.79 )(5)      10       2.06 (6)      2.06 (6)      (2.06 )(6)      47  

I

    11.56       0.10       1.03 (10)      1.13       (0.10                 (0.10     12.59       9.94         1,020,291       1.32       1.24       0.89       47  

R3(9)

    12.68       (0.01     (0.09     (0.10                             12.58       (0.79 )(5)      10       1.75 (6)      1.75 (6)      (1.75 )(6)      47  

R4(9)

    12.68       (0.01     (0.09     (0.10                             12.58       (0.79 )(5)      10       1.46 (6)      1.46 (6)      (1.46 )(6)      47  

R5(9)

    12.68             (0.10     (0.10                             12.58       (0.79 )(5)      10       1.17 (6)      1.17 (6)      (1.16 )(6)      47  

Y(9)

    12.68             (0.10     (0.10                             12.58       (0.79 )(5)      10       1.06 (6)      1.06 (6)      (1.06 )(6)      47  

SDR

    11.57       0.12       1.03 (10)      1.15       (0.12                 (0.12     12.60       10.10       561,740       1.18       1.10       1.05       47  
Hartford Schroders Emerging Markets Multi-Sector Bond Fund(20)  

For the Year Ended October 31, 2020

 

A

  $ 9.12     $ 0.44     $ (0.90   $ (0.46   $ (0.34   $     $ (0.10   $ (0.44   $ 8.22       (4.85 )%    $ 1,727       1.41     1.15     5.22     141

C

    9.08       0.38       (0.89     (0.51     (0.29           (0.08     (0.37     8.20       (5.43     215       2.23       1.90       4.48       141  

I

    9.11       0.47       (0.90     (0.43     (0.37           (0.10     (0.47     8.21       (4.50     21,211       1.05       0.82       5.56       141  

R3

    9.13       0.43       (0.89     (0.46     (0.34           (0.10     (0.44     8.23       (4.79     29       1.70       1.24       5.15       141  

R4

    9.11       0.46       (0.89     (0.43     (0.36           (0.10     (0.46     8.22       (4.45     11       1.40       0.92       5.48       141  

R5

    9.10       0.46       (0.88     (0.42     (0.37           (0.10     (0.47     8.21       (4.41     11       1.10       0.85       5.52       141  

Y

    9.10       0.47       (0.89     (0.42     (0.36           (0.11     (0.47     8.21       (4.34     2,376       0.98       0.76       5.60       141  

F

    9.10       0.51       (1.02     (0.51     (0.67           (0.20     (0.87     7.72       (4.66     11       0.98       0.75       5.58       141  

SDR

    9.11       0.47       (0.90     (0.43     (0.36           (0.11     (0.47     8.21       (4.44     34,536       0.98       0.75       5.62       141  

For the Year Ended October 31, 2019

 

       

A

  $ 8.79     $ 0.55     $ 0.25     $ 0.80     $   (0.43   $     $   (0.04   $   (0.47   $   9.12       9.21   $ 1,829       1.29     1.11     6.12     240

C

    8.74       0.48       0.25       0.73       (0.36           (0.03     (0.39     9.08       8.44       266       2.14       1.90       5.39       240  

I

    8.78       0.58       0.25       0.83       (0.46           (0.04     (0.50     9.11       9.65       29,715       1.00       0.83       6.37       240  

R3

    8.80       0.57       0.25       0.82       (0.45           (0.04     (0.49     9.13       9.46       11       1.55       0.88       6.33       240  

R4

    8.78       0.57       0.25       0.82       (0.45           (0.04     (0.49     9.11       9.45       11       1.28       0.86       6.35       240  

R5

    8.78       0.58       0.24       0.82       (0.46           (0.04     (0.50     9.10       9.56       11       1.00       0.81       6.39       240  

Y

    8.78       0.58       0.24       0.82       (0.46           (0.04     (0.50     9.10       9.61       2,046       0.94       0.76       6.39       240  

F

    8.78       0.58       0.25       0.83       (0.47           (0.04     (0.51     9.10       9.66       23,084       0.93       0.75       6.45       240  

SDR

    8.79       0.58       0.25       0.83       (0.47           (0.04     (0.51     9.11       9.65       37,109       0.93       0.75       6.44       240  

For the Year Ended October 31, 2018

 

       

A

  $ 9.98     $ 0.50     $ (1.02   $ (0.52   $ (0.32   $ (0.13   $ (0.22   $ (0.67   $ 8.79       (5.34 )%    $ 3,389       1.29     1.08     5.42     285

C

    9.95       0.41       (1.01     (0.60     (0.28     (0.13     (0.20     (0.61     8.74       (6.27     414       2.16       1.90       4.52       285  

I

    9.97       0.52       (1.02     (0.50     (0.34     (0.13     (0.22     (0.69     8.78       (5.22     36,557       1.02       0.85       5.63       285  

R3

    9.97       0.50       (1.03     (0.53     (0.30     (0.13     (0.21     (0.64     8.80       (5.43     10       1.65       1.25       5.23       285  

R4

    9.97       0.52       (1.03     (0.51     (0.33     (0.13     (0.22     (0.68     8.78       (5.25     10       1.35       0.92       5.54       285  

R5

    9.97       0.53       (1.03     (0.50     (0.34     (0.13     (0.22     (0.69     8.78       (5.23     10       1.06       0.85       5.58       285  

Y

    9.97       0.49       (0.98     (0.49     (0.34     (0.13     (0.23     (0.70     8.78       (5.17     970       0.95       0.77       5.29       285  

F

    9.96       0.53       (1.01     (0.48     (0.34     (0.13     (0.23     (0.70     8.78       (5.04     28,842       0.94       0.75       5.67       285  

SDR

    9.98       0.56       (1.05     (0.49     (0.34     (0.13     (0.23     (0.70     8.79       (5.11     34,841       0.94       0.75       5.89       285  

For the Year Ended October 31, 2017

 

       

A

  $ 9.79     $ 0.55     $ 0.27     $ 0.82     $ (0.53   $   (0.10   $     $ (0.63   $ 9.98       8.83   $ 2,472       1.15     1.03     5.65     212

C

    9.78       0.46       0.29       0.75       (0.48     (0.10           (0.58     9.95       8.01       73       2.03       1.90       4.72       212  

I

    9.78       0.57       0.28       0.85       (0.56     (0.10           (0.66     9.97       9.08         15,441       0.94       0.82       5.86       212  

R3

    9.78       0.54       0.28       0.82       (0.53     (0.10           (0.63     9.97       8.74       36       1.63       1.19       5.53       212  

R4

    9.78       0.55       0.28       0.83       (0.54     (0.10           (0.64     9.97       8.88       11       1.33       1.02       5.67       212  

R5

    9.78       0.57       0.27       0.84       (0.55     (0.10           (0.65     9.97       9.07       11       1.04       0.85       5.82       212  

Y

    9.78       0.57       0.28       0.85       (0.56     (0.10           (0.66     9.97       9.16       122       0.91       0.79       5.81       212  

F(8)

    9.70       0.39       0.30       0.69       (0.43                 (0.43     9.96       7.22 (5)      11       0.87 (6)      0.75 (6)      5.90 (6)      212  

SDR

    9.79       0.58       0.27       0.85       (0.56     (0.10           (0.66     9.98       9.16       57,054       0.87       0.75       5.93       212  

 

The accompanying notes are an integral part of these financial statements.

 

 

  82  

 


Hartford Schroders Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns
of Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders Emerging Markets Multi-Sector Bond Fund(20) – (continued)  

For the Year Ended October 31, 2016

 

       

A

  $ 9.04     $ 0.52     $ 0.51     $ 1.03     $ (0.28   $   —     $   —     $   (0.28   $   9.79       11.59   $ 1,707       1.82     1.11     5.61     147

C(9)

    9.87       0.02       (0.11     (0.09                             9.78       (0.91 )(5)      10       1.73 (6)      1.73 (6)      7.72 (6)      147  

I

    9.02       0.55       0.51       1.06       (0.30                 (0.30     9.78       11.94       9,218       1.54       0.85       5.89       147  

R3(9)

    9.87       0.02       (0.11     (0.09                             9.78       (0.91 )(5)      10       1.41 (6)      1.41 (6)      8.09 (6)      147  

R4(9)

    9.87       0.02       (0.11     (0.09                             9.78       (0.91 )(5)      10       1.13 (6)      1.13 (6)      8.46 (6)      147  

R5(9)

    9.87       0.02       (0.11     (0.09                             9.78       (0.91 )(5)      10       0.84 (6)      0.84 (6)      8.46 (6)      147  

Y(9)

    9.87       0.02       (0.11     (0.09                             9.78       (0.91 )(5)      10       0.73 (6)      0.73 (6)      8.82 (6)      147  

SDR

    9.03       0.56       0.51       1.07       (0.31                 (0.31     9.79       12.04         51,219       1.36       0.71       5.99       147  
Hartford Schroders International Multi-Cap Value Fund(20)  

For the Year Ended October 31, 2020

 

       

A

  $   9.05     $   0.17     $   (1.24   $   (1.07   $   (0.22   $     $     $ (0.22   $ 7.76       (12.01 )%    $ 65,123       1.12     1.12     2.12     119

C

    8.99       0.11       (1.23     (1.12     (0.16                 (0.16     7.71       (12.69     12,691       1.86       1.86       1.32       119  

I

    9.05       0.20       (1.26     (1.06     (0.24                 (0.24     7.75       (11.86       538,073       0.85       0.85       2.37       119  

R3

    9.02       0.14       (1.24     (1.10     (0.19                 (0.19     7.73       (12.42     13,398       1.48       1.48       1.71       119  

R4

    9.03       0.17       (1.24     (1.07     (0.22                 (0.22     7.74       (12.07     2,328       1.18       1.18       2.13       119  

R5

    9.04       0.20       (1.25     (1.05     (0.24                 (0.24     7.75       (11.75     17,008       0.86       0.86       2.42       119  

Y

    9.04       0.20       (1.24     (1.04     (0.25                 (0.25     7.75       (11.72     165,134       0.86       0.81       2.49       119  

F

    9.05       0.21       (1.25     (1.04     (0.25                 (0.25     7.76       (11.65     357,583       0.76       0.76       2.58       119  

SDR

    9.04       0.21       (1.26     (1.05     (0.25                 (0.25     7.74       (11.78     577,640       0.76       0.76       2.54       119  

For the Year Ended October 31, 2019

 

       

A

  $ 8.97     $ 0.27     $ 0.28     $ 0.55     $ (0.25   $   (0.22   $     $ (0.47   $ 9.05       6.61   $ 106,530       1.12     1.12     3.03     119

C

    8.90       0.19       0.30       0.49       (0.18     (0.22           (0.40     8.99       5.91       21,500       1.87       1.87       2.12       119  

I

    8.96       0.28       0.30       0.58       (0.27     (0.22           (0.49     9.05       6.98       740,680       0.86       0.86       3.13       119  

R3

    8.94       0.28       0.25       0.53       (0.23     (0.22           (0.45     9.02       6.36       19,748       1.48       1.48       3.25       119  

R4

    8.95       0.26       0.29       0.55       (0.25     (0.22           (0.47     9.03       6.57       2,746       1.18       1.18       3.01       119  

R5

    8.95       0.26       0.32       0.58       (0.27     (0.22           (0.49     9.04       6.97       21,262       0.87       0.87       2.99       119  

Y

    8.96       0.29       0.29       0.58       (0.28     (0.22           (0.50     9.04       6.93       146,587       0.85       0.80       3.29       119  

F

    8.97       0.29       0.29       0.58       (0.28     (0.22           (0.50     9.05       6.98       377,025       0.76       0.76       3.31       119  

SDR

    8.96       0.29       0.29       0.58       (0.28     (0.22           (0.50     9.04       6.99       636,333       0.76       0.76       3.27       119  

For the Year Ended October 31, 2018

 

       

A

  $   10.18     $ 0.23     $ (1.09   $ (0.86   $ (0.24   $ (0.11   $     $ (0.35   $ 8.97       (8.71 )%    $ 67,252       1.13     1.10     2.26     87

C

    10.12       0.17       (1.10     (0.93     (0.18     (0.11           (0.29     8.90       (9.47     25,614       1.88       1.85       1.71       87  

I

    10.17       0.26       (1.09     (0.83     (0.27     (0.11           (0.38     8.96       (8.47     875,109       0.87       0.84       2.64       87  

R3

    10.15       0.22       (1.10     (0.88     (0.22     (0.11           (0.33     8.94       (8.96     613       1.50       1.43       2.22       87  

R4

    10.16       0.20       (1.06     (0.86     (0.24     (0.11           (0.35     8.95       (8.76     1,312       1.20       1.16       2.03       87  

R5

    10.17       0.27       (1.11     (0.84     (0.27     (0.11           (0.38     8.95       (8.58     22,482       0.88       0.85       2.68       87  

Y

    10.17       0.25       (1.07     (0.82     (0.28     (0.11           (0.39     8.96       (8.42     80,993       0.83       0.81       2.57       87  

F

    10.18       0.28       (1.10     (0.82     (0.28     (0.11           (0.39     8.97       (8.38     251,677       0.78       0.75       2.78       87  

SDR

    10.17       0.27       (1.09     (0.82     (0.28     (0.11           (0.39     8.96       (8.38     540,822       0.78       0.75       2.69       87  

For the Year Ended October 31, 2017

 

       

A

  $ 8.61     $ 0.20     $ 1.53     $ 1.73     $ (0.16   $     $     $ (0.16   $   10.18       20.26   $ 58,977       1.20     1.12     2.08     63

C

    8.60       0.15       1.50       1.65       (0.13                 (0.13     10.12       19.31       15,580       1.93       1.85       1.51       63  

I

    8.60       0.24       1.52       1.76       (0.19                 (0.19     10.17       20.47       706,652       0.91       0.82       2.48       63  

R3

    8.60       0.20       1.49       1.69       (0.14                 (0.14     10.15       19.82       105       1.58       1.42       2.03       63  

R4

    8.60       0.18       1.54       1.72       (0.16                 (0.16     10.16       20.23       809       1.24       1.15       1.83       63  

R5

    8.60       0.23       1.52       1.75       (0.18                 (0.18     10.17       20.57       14,212       0.93       0.85       2.32       63  

Y

    8.60       0.21       1.56       1.77       (0.20                 (0.20     10.17       20.80       4,440       0.84       0.76       2.30       63  

F(8)

    9.13       0.17       1.02       1.19       (0.14                 (0.14     10.18       13.07 (5)      110,585       0.83 (6)      0.75 (6)      2.60 (6)      63  

SDR

    8.60       0.23       1.53       1.76       (0.19                 (0.19     10.17       20.70       448,891       0.83       0.75       2.43       63  

 

The accompanying notes are an integral part of these financial statements.

 

 

  83  

 


Hartford Schroders Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns
of Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders International Multi-Cap Value Fund(20) – (continued)  

For the Year Ended October 31, 2016

 

       

A

  $ 8.48     $ 0.15     $ 0.17 (10)    $ 0.32     $ (0.19   $     $     $ (0.19   $ 8.61       3.88   $ 27,751       1.47     1.14     1.80     94

C(9)

    8.62             (0.02     (0.02                             8.60       (0.23 )(5)      10       1.80 (6)      1.80 (6)      (1.10 )(6)      94  

I

    8.47       0.18       0.16 (10)      0.34       (0.21                 (0.21     8.60       4.27       183,321       1.22       0.89       2.15       94  

R3(9)

    8.62             (0.02     (0.02                             8.60       (0.23 )(5)      10       1.48 (6)      1.48 (6)      (0.73 )(6)      94  

R4(9)

    8.62             (0.02     (0.02                             8.60       (0.23 )(5)      10       1.19 (6)      1.19 (6)      (0.37 )(6)      94  

R5(9)

    8.62             (0.02     (0.02                             8.60       (0.23 )(5)      10       0.91 (6)      0.91 (6)      0.73 (6)      94  

Y(9)

    8.62             (0.02     (0.02                             8.60       (0.23 )(5)      10       0.80 (6)      0.80 (6)      (6)      94  

SDR

    8.46       0.20       0.16 (10)      0.36       (0.22                 (0.22     8.60       4.44       221,643       1.06       0.75       2.37       94  
Hartford Schroders International Stock Fund(20)  

For the Year Ended October 31, 2020

 

       

A

  $ 12.91     $ 0.07     $ 1.30     $ 1.37     $ (0.14   $     $     $ (0.14   $ 14.14       10.63   $ 114,042       1.12     1.11     0.49     34

C

    12.25       (0.03     1.25       1.22       (0.04                 (0.04     13.43       9.93       6,687       1.85       1.85       (0.21     34  

I

    12.51       0.10       1.26       1.36       (0.16                 (0.16     13.71       10.93       516,721       0.83       0.83       0.79       34  

R3

    12.47       0.03       1.26       1.29       (0.13                 (0.13     13.63       10.38       734       1.46       1.45       0.25       34  

R4

    12.50       0.07       1.25       1.32       (0.15                 (0.15     13.67       10.62       2,536       1.15       1.15       0.51       34  

R5

    12.52       0.11       1.26       1.37       (0.17                 (0.17     13.72       10.96       12,208       0.83       0.83       0.84       34  

Y

    12.52       0.06       1.32       1.38       (0.14                 (0.14     13.76       11.09       66,753       0.82       0.82       0.45       34  

F

    12.52       0.11       1.28       1.39       (0.17                 (0.17     13.74       11.13       169,576       0.75       0.75       0.86       34  

SDR

    12.52       0.11       1.27       1.38       (0.17                 (0.17     13.73       11.07       136,358       0.75       0.75       0.86       34  

For the Year Ended October 31, 2019

 

       

A

  $ 12.46     $ 0.17     $ 1.18     $ 1.35     $ (0.15   $   (0.75   $     $ (0.90   $ 12.91       12.04   $ 46,241       1.16     1.14     1.42     37

C

    11.90       0.10       1.10       1.20       (0.10     (0.75           (0.85     12.25       11.16       3,530       1.90       1.87       0.88       37  

I

    12.09       0.21       1.13       1.34       (0.17     (0.75           (0.92     12.51       12.39       218,391       0.86       0.83       1.81       37  

R3

    12.08       0.16       1.13       1.29       (0.15     (0.75           (0.90     12.47       11.93       190       1.44       1.33       1.35       37  

R4

    12.09       0.15       1.17       1.32       (0.16     (0.75           (0.91     12.50       12.15       292       1.12       1.05       1.24       37  

R5

    12.10       0.15       1.19       1.34       (0.17     (0.75           (0.92     12.52       12.33       1,066       0.80       0.78       1.21       37  

Y

    12.11       0.21       1.12       1.33       (0.17     (0.75           (0.92     12.52       12.38       676       0.87       0.84       1.80       37  

F

    12.10       0.22       1.12       1.34       (0.17     (0.75           (0.92     12.52       12.47       70,305       0.78       0.76       1.85       37  

SDR

    12.10       0.21       1.14       1.35       (0.18     (0.75           (0.93     12.52       12.45       100,663       0.80       0.76       1.80       37  

For the Year Ended October 31, 2018

 

       

A

  $ 13.62     $ 0.19     $   (1.22   $ (1.03   $ (0.13   $     $     $ (0.13   $ 12.46       (7.63 )%    $ 11,234       1.25     1.16     1.40     65

C

    13.11       0.13       (1.21     (1.08     (0.13                 (0.13     11.90       (8.33     1,824       2.01       1.92       0.97       65  

I

    13.20       0.22       (1.17     (0.95     (0.16                 (0.16     12.09       (7.32     129,528       0.93       0.85       1.70       65  

R3

    13.19       0.21       (1.19     (0.98     (0.13                 (0.13     12.08       (7.49     12       1.61       1.02       1.59       65  

R4

    13.20       0.22       (1.19     (0.97     (0.14                 (0.14     12.09       (7.42     12       1.31       0.97       1.64       65  

R5

    13.22       0.22       (1.18     (0.96     (0.16                 (0.16     12.10       (7.36     12       1.01       0.90       1.69       65  

Y

    13.23       0.12       (1.07     (0.95     (0.17                 (0.17     12.11       (7.32     5,693       0.90       0.81       0.97       65  

F

    13.22       0.22       (1.17     (0.95     (0.17                 (0.17     12.10       (7.32     9,204       0.89       0.80       1.69       65  

SDR

    13.23       0.23       (1.18     (0.95     (0.18                 (0.18     12.10       (7.33     67,339       0.89       0.80       1.71       65  

For the Year Ended October 31, 2017

 

       

A

  $ 11.02     $ 0.12     $ 2.64     $   2.76     $   (0.16   $     $     $ (0.16   $ 13.62       25.41   $ 5,930       1.32     1.20     0.98     53

C

      10.69         (0.02     2.60       2.58       (0.16                 (0.16     13.11       24.60       321       2.01       1.94       (0.13     53  

I

    10.69       0.14       2.55       2.69       (0.18             —         (0.18       13.20       25.69         116,660       1.02       0.95       1.24       53  

R3

    10.69       0.12       2.55       2.67       (0.17                 (0.17     13.19       25.45       13       1.62       1.18       1.04       53  

R4

    10.69       0.13       2.56       2.69       (0.18                 (0.18     13.20       25.61       13       1.34       1.08       1.15       53  

R5

    10.69       0.16       2.55       2.71       (0.18                 (0.18     13.22       25.88       13       1.02       0.90       1.34       53  

Y

    10.69       0.13       2.59       2.72       (0.18                 (0.18     13.23       25.99       115       0.88       0.79       1.04       53  

F(8)

    10.87       0.04       2.31       2.35                               13.22       21.62 (5)      844       0.85 (6)      0.80 (6)      0.52 (6)      53  

SDR

    10.70       0.17       2.55       2.72       (0.19                 (0.19     13.23       25.88       77,051       0.86       0.80       1.45       53  

 

The accompanying notes are an integral part of these financial statements.

 

 

  84  

 


Hartford Schroders Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns
of Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders International Stock Fund(20) – (continued)  

For the Year Ended October 31, 2016

 

       

A

  $ 11.35     $ 0.12     $ (0.35 )(10)    $ (0.23   $ (0.10   $     $     $ (0.10   $ 11.02       (2.01 )%    $ 3,217       1.45     1.18     1.11     53

C(9)

    10.64       (0.01     0.06       0.05                               10.69       0.47 (5)      10       1.77 (6)      1.77 (6)      (1.77 )(6)      53  

I

    11.01       0.14       (0.33 )(10)      (0.19     (0.13                 (0.13     10.69       (1.70     82,726       1.20       0.92       1.33       53  

R3(9)

    10.64             0.05       0.05                               10.69       0.47 (5)      10       1.47 (6)      1.47 (6)      (1.47 )(6)      53  

R4(9)

    10.64             0.05       0.05                               10.69       0.47 (5)      10       1.17 (6)      1.17 (6)      (1.17 )(6)      53  

R5(9)

    10.64             0.05       0.05                               10.69       0.47 (5)      10       0.89 (6)      0.89 (6)      (0.87 )(6)      53  

Y(9)

    10.64             0.05       0.05                               10.69       0.47 (5)      10       0.78 (6)      0.78 (6)      (0.78 )(6)      53  

SDR

    11.02       0.16       (0.33 )(10)      (0.17     (0.15                 (0.15     10.70       (1.54     64,263       1.07       0.79       1.54       53  
Hartford Schroders Securitized Income Fund  

For the Year Ended October 31, 2020

 

       

A

  $ 10.06     $ 0.21     $ (0.25   $ (0.04   $ (0.22   $ (0.01   $     $ (0.23   $ 9.79       (0.41 )%    $ 5,553       1.54 %(11)      1.10 %(12)(13)      2.12 %(14)      78

C(15)

    10.12       0.04       (0.31     (0.27     (0.06                 (0.06     9.79       (2.64 )(5)      443       2.52 (6)(11)      2.29 (6)(12)(13)      0.55 (6)(14)      78  

I

    10.06       0.19       (0.23     (0.04     (0.22     (0.01           (0.23     9.79       (0.42     65,636       1.34 (11)      1.12 (12)(13)      1.94 (14)      78  

Y

    10.06       0.21       (0.25     (0.04     (0.22     (0.01           (0.23     9.79       (0.36     3,571       1.29 (11)      1.07 (12)(13)      2.20 (14)      78  

F

    10.05       0.22       (0.26     (0.04     (0.22     (0.01           (0.23     9.78       (0.34     2,035       1.28 (11)      1.06 (12)(13)      2.25 (14)      78  

SDR

    10.05       0.23       (0.26     (0.03     (0.23     (0.01           (0.24     9.78       (0.31     16,688       1.28 (11)      1.07 (12)(13)      2.32 (14)      78  

For the Year Ended October 31, 2019(16)

 

       

A

  $ 10.00     $ 0.17     $ 0.03     $ 0.20     $ (0.14   $     $     $ (0.14   $ 10.06       2.04 %(5)    $ 3,571       1.58 %(6)(17)      1.00 %(6)(18)(12)      2.49 %(6)(19)      35

I

    10.00       0.17       0.04       0.21       (0.15                 (0.15     10.06       2.09 (5)      4,633       1.33 (6)(17)      0.96 (6)(18)(12)      2.52 (6)(19)      35  

Y

    10.00       0.17       0.04       0.21       (0.15                 (0.15     10.06       2.13 (5)      3,583       1.27 (6)(17)      0.91 (6)(18)(12)      2.58 (6)(19)      35  

F

    10.00       0.18       0.03       0.21       (0.16                 (0.16     10.05       2.06 (5)      2,544       1.26 (6)(17)      0.89 (6)(18)(12)      2.61 (6)(19)      35  

SDR

    10.00       0.17       0.04       0.21       (0.16                 (0.16     10.05       2.19 (5)      80,616       1.24 (6)(17)      0.86 (6)(18)(12)      2.55 (6)(19)      35  
Hartford Schroders Tax-Aware Bond Fund(20)  

For the Year Ended October 31, 2020

 

       

A

  $   11.34     $   0.16     $   0.32     $   0.48     $   (0.17   $   (0.23   $   —     $   (0.40   $   11.42       4.31   $ 56,486       0.82     0.71     1.39     186

C

    11.34       0.06       0.33       0.39       (0.06     (0.23           (0.29     11.44       3.53       8,731       1.61       1.55       0.56       186  

I

    11.34       0.18       0.34       0.52       (0.20     (0.23           (0.43     11.43       4.64         283,060       0.60       0.49       1.61       186  

Y

    11.35       0.18       0.33       0.51       (0.19     (0.23           (0.42     11.44       4.56       213       0.63       0.56       1.56       186  

F

    11.35       0.19       0.33       0.52       (0.20     (0.23           (0.43     11.44       4.67       33,074       0.52       0.46       1.64       186  

SDR

    11.34       0.19       0.33       0.52       (0.20     (0.23           (0.43     11.43       4.68       61,878       0.52       0.46       1.66       186  

For the Year Ended October 31, 2019

 

       

A

  $ 10.66     $ 0.23     $ 0.80     $ 1.03     $ (0.23   $ (0.12   $     $ (0.35   $ 11.34       9.79   $ 36,158       0.83     0.71     2.08     161

C

    10.65       0.14       0.80       0.94       (0.13     (0.12           (0.25     11.34       8.91       7,894       1.61       1.54       1.26       161  

I

    10.67       0.26       0.79       1.05       (0.26     (0.12           (0.38     11.34       9.95       209,719       0.61       0.48       2.31       161  

Y

    10.67       0.26       0.79       1.05       (0.25     (0.12           (0.37     11.35       9.98       204       0.60       0.53       2.31       161  

F

    10.67       0.26       0.80       1.06       (0.26     (0.12           (0.38     11.35       10.06       20,569       0.53       0.46       2.33       161  

SDR

    10.66       0.26       0.80       1.06       (0.26     (0.12           (0.38     11.34       10.08       60,005       0.53       0.46       2.38       161  

For the Year Ended October 31, 2018

 

       

A

  $ 11.08     $ 0.23     $   (0.42   $   (0.19   $ (0.22   $ (0.01   $     $ (0.23   $ 10.66       (1.77 )%    $ 25,186       0.86     0.71     2.07     161

C

    11.07       0.14       (0.43     (0.29     (0.12     (0.01           (0.13     10.65       (2.64     4,819       1.62       1.53       1.24       161  

I

    11.10       0.25       (0.42     (0.17     (0.25     (0.01           (0.26     10.67       (1.59     120,282       0.62       0.46       2.31       161  

Y

    11.10       0.25       (0.43     (0.18     (0.24     (0.01           (0.25     10.67       (1.63     214       0.57       0.48       2.30       161  

F

    11.10       0.26       (0.44     (0.18     (0.24     (0.01           (0.25     10.67       (1.60     8,689       0.55       0.46       2.36       161  

SDR

    11.09       0.25       (0.43     (0.18     (0.24     (0.01           (0.25     10.66       (1.60     59,590       0.55       0.46       2.30       161  

 

The accompanying notes are an integral part of these financial statements.

 

 

  85  

 


Hartford Schroders Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns
of Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders Tax-Aware Bond Fund(20) – (continued)  

For the Year Ended October 31, 2017

 

       

A

  $ 11.19     $ 0.20     $ (0.07   $ 0.13     $ (0.20   $ (0.04   $     $ (0.24   $ 11.08       1.20   $ 22,948       0.86     0.71     1.83     72

C

    11.20       0.11       (0.07     0.04       (0.13     (0.04           (0.17     11.07       0.40       4,712       1.58       1.50       0.96       72  

I

    11.21       0.23       (0.07     0.16       (0.23     (0.04           (0.27     11.10       1.45       147,851       0.58       0.46       2.10       72  

Y

    11.20       0.23       (0.07     0.16       (0.22     (0.04           (0.26     11.10       1.53       10       0.54       0.46       2.08       72  

F(8)

    10.93       0.14       0.17       0.31       (0.14                 (0.14     11.10       2.85 (5)      2,377       0.53 (6)      0.46 (6)      1.96 (6)      72  

SDR

    11.20       0.23       (0.07     0.16       (0.23     (0.04           (0.27     11.09       1.46       70,615       0.54       0.46       2.12       72  

For the Year Ended October 31, 2016

 

       

A

  $ 10.84     $ 0.25     $ 0.35     $ 0.60     $ (0.25   $     $     $ (0.25   $ 11.19       5.61   $ 8,648       0.90     0.70     2.22     42

C(9)

    11.23             (0.01     (0.01     (0.02                 (0.02     11.20       (0.10 )(5)      10       1.46 (6)      1.45 (6)      1.47 (6)      42  

I

    10.84       0.28       0.37       0.65       (0.28                 (0.28     11.21       6.02       82,088       0.66       0.45       2.55       42  

Y(9)

    11.23       0.01       (0.02     (0.01     (0.02                 (0.02     11.20       (0.08 )(5)      10       0.46 (6)      0.45 (6)      2.56 (6)      42  

SDR

    11.23       0.01       (0.02     (0.01     (0.02                 (0.02     11.20       (0.08     66,275       0.47       0.46       4.71       42  
Hartford Schroders US MidCap Opportunities Fund(20)  

For the Year Ended October 31, 2020

 

       

A

  $ 15.01     $ 0.01     $ (0.35   $ (0.34   $ 0.00 (7)    $   (0.10   $   —     $ (0.10   $ 14.57       (2.25 )%    $ 71,370       1.18     1.18     0.06     53

C

    15.21       (0.10     (0.34     (0.44           (0.10           (0.10     14.67       (2.90     43,785       1.92       1.92       (0.67     53  

I

    15.63       0.05       (0.35     (0.30     (0.04     (0.10           (0.14     15.19       (1.92     352,667       0.90       0.90       0.35       53  

R3

    15.41       (0.04     (0.35     (0.39           (0.10           (0.10     14.92       (2.54     975       1.53       1.53       (0.28     53  

R4

    15.53       0.00 (7)      (0.35     (0.35           (0.10           (0.10     15.08       (2.26     567       1.23       1.23       0.01       53  

R5

    15.60       0.05       (0.35     (0.30     (0.04     (0.10           (0.14     15.16       (1.96     1,229       0.93       0.93       0.31       53  

Y

    15.63       0.05       (0.35     (0.30     (0.05     (0.10           (0.15     15.18       (1.93     77,493       0.91       0.90       0.34       53  

F

    15.64       0.06       (0.34     (0.28     (0.06     (0.10           (0.16     15.20       (1.82     55,554       0.81       0.81       0.42       53  

SDR

    15.67       0.07       (0.35     (0.28     (0.06     (0.10           (0.16     15.23       (1.81     37,895       0.81       0.81       0.45       53  

For the Year Ended October 31, 2019

 

       

A

  $ 13.68     $ 0.02     $ 1.58     $ 1.60     $     $ (0.27   $     $ (0.27   $ 15.01       12.12   $ 87,831       1.27     1.27     0.14     39

C

    13.97       (0.09     1.60       1.51             (0.27           (0.27     15.21       11.29       60,195       2.02       2.02       (0.61     39  

I

    14.24       0.06       1.64       1.70         (0.04       (0.27       —         (0.31       15.63       12.41         496,725       1.00       1.00       0.42       39  

R3

    14.09       (0.04     1.63       1.59             (0.27           (0.27     15.41       11.69       1,423       1.62       1.62       (0.25     39  

R4

    14.17       0.01       1.64       1.65       (0.02     (0.27           (0.29     15.53       12.09       627       1.32       1.32       0.09       39  

R5

    14.24       0.06       1.62       1.68       (0.05     (0.27           (0.32     15.60       12.32       1,476       1.02       1.02       0.39       39  

Y

    14.24       0.07       1.64       1.71       (0.05     (0.27           (0.32     15.63       12.50       116,557       0.97       0.95       0.44       39  

F

    14.25       0.07       1.64       1.71       (0.05     (0.27           (0.32     15.64       12.52       54,955       0.91       0.91       0.48       39  

SDR

    14.28       0.07       1.64       1.71       (0.05     (0.27           (0.32     15.67       12.49       82,604       0.91       0.91       0.48       39  

For the Year Ended October 31, 2018

 

       

A

  $ 13.97     $ 0.01     $   (0.10   $   (0.09   $     $ (0.20   $     $ (0.20   $ 13.68       (0.66 )%    $ 96,491       1.26     1.25     0.05     37

C

      14.37         (0.11     (0.09     (0.20           (0.20           (0.20     13.97       (1.49     67,037       2.02       2.01       (0.72     37  

I

    14.52       0.05       (0.11     (0.06     (0.02     (0.20           (0.22     14.24       (0.44     648,971       0.99       0.98       0.31       37  

R3

    14.43       (0.05     (0.09     (0.14           (0.20           (0.20     14.09       (1.06     950       1.63       1.60       (0.31     37  

R4

    14.48             (0.10     (0.10     (0.01     (0.20           (0.21     14.17       (0.74     775       1.33       1.30       (0.03     37  

R5

    14.51       0.04       (0.09     (0.05     (0.02     (0.20           (0.22     14.24       (0.42     1,864       1.03       1.00       0.26       37  

Y

    14.53       0.04       (0.10     (0.06     (0.03     (0.20           (0.23     14.24       (0.46     108,680       0.96       0.94       0.25       37  

F

    14.53       0.06       (0.11     (0.05     (0.03     (0.20           (0.23     14.25       (0.37     45,449       0.91       0.90       0.38       37  

SDR

    14.56       0.06       (0.11     (0.05     (0.03     (0.20           (0.23     14.28       (0.37     57,898       0.91       0.90       0.38       37  

 

The accompanying notes are an integral part of these financial statements.

 

 

  86  

 


Hartford Schroders Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns
of Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders US MidCap Opportunities Fund(20) – (continued)  

For the Year Ended October 31, 2017

 

       

A

  $ 11.98     $ (0.02   $ 2.22     $ 2.20     $ (0.02   $ (0.19   $     $ (0.21   $ 13.97       18.57   $ 116,594       1.28     1.27     (0.12 )%      54

C

    12.41       (0.13     2.31       2.18       (0.03     (0.19           (0.22     14.37       17.75       48,121       2.04       2.02       (0.94     54  

I

    12.42       0.02       2.30       2.32       (0.03     (0.19           (0.22     14.52       18.91         620,850       1.02       1.01       0.15       54  

R3

    12.41       (0.07     2.30       2.23       (0.02     (0.19           (0.21     14.43       18.28       425       1.64       1.60       (0.49     54  

R4

    12.42       (0.04     2.31       2.27       (0.02     (0.19           (0.21     14.48       18.52       274       1.39       1.30       (0.28     54  

R5

    12.42       0.02       2.29       2.31       (0.03     (0.19           (0.22     14.51       18.82       56       1.14       1.00       0.18       54  

Y

    12.42       0.02       2.31       2.33       (0.03     (0.19           (0.22     14.53       19.00       11,479       0.96       0.94       0.16       54  

F(8)

    13.63       0.01       0.89       0.90                               14.53       6.60 (5)      8,436       0.91 (6)      0.90 (6)      0.14 (6)      54  

SDR

    12.44       0.03       2.31       2.34       (0.03     (0.19           (0.22     14.56       19.06       21,490       0.91       0.90       0.24       54  

For the Year Ended October 31, 2016

 

       

A

  $ 12.36     $ 0.02     $ 0.89 (10)    $ 0.91     $     $ (1.29   $     $ (1.29   $ 11.98       8.40   $ 32,399       1.67     1.26     0.15     72

C(9)

    12.49       (0.01     (0.07     (0.08                             12.41       (0.64 )(5)      10       1.86 (6)      1.86 (6)      (1.49 )(6)      72  

I

    12.74       0.05       0.92 (10)      0.97             (1.29           (1.29     12.42       8.68       177,197       1.44       1.01       0.45       72  

R3(9)

    12.49             (0.08     (0.08                             12.41       (0.64 )(5)      10       1.54 (6)      1.54 (6)      (1.18 )(6)      72  

R4(9)

    12.49             (0.07     (0.07                             12.42       (0.56 )(5)      10       1.25 (6)      1.25 (6)      (0.89 )(6)      72  

R5(9)

    12.49             (0.07     (0.07                             12.42       (0.56 )(5)      10       0.97 (6)      0.97 (6)      (0.57 )(6)      72  

Y(9)

    12.49             (0.07     (0.07                             12.42       (0.56 )(5)      10       0.86 (6)      0.86 (6)      (0.49 )(6)      72  

SDR

    12.76       0.06       0.92 (10)      0.98       (0.01     (1.29           (1.30     12.44       8.77       5,111       1.33       0.88       0.47       72  
Hartford Schroders US Small Cap Opportunities Fund(20)  

For the Year Ended October 31, 2020

 

A

  $ 25.69     $ 0.01     $ (1.19   $ (1.18   $ (0.02   $ (1.29   $     $ (1.31   $ 23.20       (5.02 )%    $ 23,897       1.42     1.35     0.06     47

C

    26.23       (0.16     (1.24     (1.40           (1.29           (1.29     23.54       (5.77     6,957       2.17       2.10       (0.67     47  

I

    27.00       0.09       (1.27     (1.18     (0.08     (1.29           (1.37     24.45       (4.78     144,885       1.11       1.05       0.38       47  

R3

    26.71       (0.07     (1.24     (1.31           (1.29           (1.29     24.11       (5.31     242       1.73       1.64       (0.30     47  

R4

    26.93       0.02       (1.27     (1.25     (0.04     (1.29           (1.33     24.35       (5.04     194       1.43       1.35       0.08       47  

R5

    26.98       0.06       (1.23     (1.17     (0.08     (1.29           (1.37     24.44       (4.78     293       1.13       1.05       0.25       47  

Y

    27.00       0.09       (1.26     (1.17     (0.08     (1.29           (1.37     24.46       (4.74     23,531       1.12       1.05       0.39       47  

F

    27.03       0.10       (1.25     (1.15     (0.10     (1.29           (1.39     24.49       (4.68     10,407       1.01       0.95       0.41       47  

SDR

    27.06       0.08       (1.23     (1.15     (0.10     (1.29           (1.39     24.52       (4.66     23,538       1.01       0.95       0.36       47  

For the Year Ended October 31, 2019

 

       

A

  $ 25.55     $ 0.02     $ 2.38     $ 2.40     $ (0.01   $ (2.25   $     $ (2.26   $ 25.69       11.21   $ 20,928       1.43     1.35     0.07     45

C

    26.20       (0.16     2.44       2.28             (2.25           (2.25     26.23       10.43       7,096       2.18       2.10       (0.65     45  

I

    26.71       0.10       2.50       2.60       (0.06     (2.25           (2.31     27.00       11.59       140,024       1.11       1.04       0.40       45  

R3

    26.53       (0.05     2.48       2.43             (2.25           (2.25     26.71       10.90       111       1.74       1.63       (0.21     45  

R4

    26.68             2.54       2.54       (0.04     (2.25           (2.29     26.93       11.33       259       1.44       1.31       (0.01     45  

R5

    26.70       0.08       2.51       2.59       (0.06     (2.25           (2.31     26.98       11.56       78       1.12       1.05       0.31       45  

Y

    26.73       0.11       2.50       2.61       (0.09     (2.25           (2.34     27.00       11.62       25,883       1.08       1.01       0.43       45  

F

    26.74       0.12       2.51       2.63       (0.09     (2.25           (2.34     27.03       11.69       4,483       1.02       0.95       0.47       45  

SDR

    26.78       0.13       2.49       2.62       (0.09     (2.25           (2.34     27.06       11.67       11,328       1.02       0.95       0.50       45  

For the Year Ended October 31, 2018

 

       

A

  $   27.97     $   (0.02   $   (0.04   $   (0.06   $     $ (2.36   $   —     $   (2.36   $   25.55       (0.34 )%    $ 13,976       1.43     1.34     (0.08 )%      42

C

    28.82       (0.23     (0.03     (0.26           (2.36           (2.36     26.20       (1.08     6,892       2.18       2.09       (0.84     42  

I

    29.14       0.07       (0.05     0.02         (0.09       (2.36           (2.45     26.71       (0.05     109,710       1.12       1.04       0.25       42  

R3

    29.06       (0.08     (0.05     (0.13     (0.04     (2.36           (2.40     26.53       (0.58     66       1.75       1.58       (0.30     42  

R4

    29.08       0.04       (0.04           (0.04     (2.36           (2.40     26.68       (0.11     11       1.45       1.13       0.12       42  

R5

    29.11       0.07       (0.05     0.02       (0.07     (2.36           (2.43     26.70       (0.02     19       1.15       1.05       0.23       42  

Y

    29.14       0.09       (0.05     0.04       (0.09     (2.36           (2.45     26.73       0.03       23,507       1.03       0.95       0.33       42  

F

    29.15       0.08       (0.04     0.04       (0.09     (2.36           (2.45     26.74       0.04       2,841       1.03       0.95       0.30       42  

SDR

    29.19       0.13       (0.08     0.05       (0.10     (2.36           (2.46     26.78       0.07       10,952       1.03       0.95       0.44       42  

 

The accompanying notes are an integral part of these financial statements.

 

 

  87  

 


Hartford Schroders Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Capital
Gains
    Returns of
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value at
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Schroders US Small Cap Opportunities Fund(20) – (continued)  

For the Year Ended October 31, 2017

 

       

A

  $   23.78     $   (0.07   $ 5.71     $ 5.64     $   (0.07   $   (1.38   $   —     $   (1.45   $   27.97       24.43   $ 17,379       1.41     1.35     (0.25 )%      69

C

    24.66       (0.27     5.90       5.63       (0.09     (1.38           (1.47     28.82       23.50       4,426       2.14       2.08       (1.00     69  

I

    24.67       0.05       5.90       5.95       (0.10     (1.38           (1.48     29.14       24.85       124,651       1.05       1.00       0.20       69  

R3

    24.67       (0.07     5.91       5.84       (0.07     (1.38           (1.45     29.06       24.36       54       1.76       1.38       (0.27     69  

R4

    24.67       (0.01     5.88       5.87       (0.08     (1.38           (1.46     29.08       24.51       11       1.46       1.22       (0.03     69  

R5

    24.67       0.04       5.88       5.92       (0.10     (1.38           (1.48     29.11       24.72       20       1.25       1.05       0.13       69  

Y

    24.67       (0.05     6.00       5.95       (0.10     (1.38           (1.48     29.14       24.86       26,227       1.04       0.95       (0.17     69  

F(8)

    26.78       0.02       2.35       2.37                               29.15       8.85 (5)      1,256       1.00 (6)      0.96 (6)      0.10 (6)      69  

SDR

    24.71       0.05       5.91       5.96       (0.10     (1.38           (1.48     29.19       24.86       32,525       1.00       0.95       0.17       69  

For the Year Ended October 31, 2016

 

       

A

  $ 24.46     $ 0.03     $ 1.14     $ 1.17     $     $ (1.85   $     $ (1.85   $ 23.78       5.33   $ 2,579       1.65     1.41     0.12     51

C(9)

    24.96       (0.01       (0.29       (0.30                             24.66       (1.20 )(5)      10       1.90 (6)      1.90 (6)      (1.70 )(6)      51  

I

    25.25       0.08       1.19       1.27             (1.85           (1.85     24.67       5.58         113,072       1.41       1.16       0.33       51  

R3(9)

    24.96       (0.01     (0.28     (0.29                             24.67       (1.16 )(5)      10       1.59 (6)      1.59 (6)      (1.39 )(6)      51  

R4(9)

    24.96             (0.29     (0.29                             24.67       (1.16 )(5)      10       1.31 (6)      1.31 (6)      (1.10 )(6)      51  

R5(9)

    24.96             (0.29     (0.29                             24.67       (1.16 )(5)      10       1.02 (6)      1.02 (6)      (0.80 )(6)      51  

Y(9)

    24.96             (0.29     (0.29                             24.67       (1.16 )(5)      10       0.91 (6)      0.91 (6)      (0.70 )(6)      51  

SDR

    25.25       0.12       1.19       1.31             (1.85           (1.85     24.71       5.74       6,806       1.26       1.02       0.50       51  

 

(1) 

Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.

(2) 

Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account.

(3) 

Adjustments include waivers and reimbursements, if applicable. Ratios do not include fees paid indirectly (see Expenses in the accompanying Notes to Financial Statements).

(4) 

Commenced operations on March 31, 2020.

(5) 

Not annualized.

(6) 

Annualized.

(7) 

Amount is less than $0.01 per share.

(8) 

Commenced operations on February 28, 2017.

(9) 

Commenced operations on October 24, 2016.

(10) 

Includes redemption fees. Amount was less than $0.01 per share.

(11) 

The ratio of expenses before adjustments to average net assets excluding interest expense for the year ended October 31, 2020 was 1.18%, 2.16%, 0.97%, 0.92%, 0.92% and 0.92% for Class A, Class C, Class I, Class Y, Class F and Class SDR, respectively.

(12) 

Includes the impact of certain non-contractual waivers. Please see the fee table in the Fund’s prospectus for the Fund’s estimated total annual fund operating expenses (before and after contractual waivers and/or reimbursements).

(13) 

The ratio of expenses after adjustments to average net assets excluding interest expense for the year ended October 31, 2020 was 0.74%, 1.93%, 0.76%, 0.71%, 0.70% and 0.70% for Class A, Class C, Class I, Class Y, Class F and Class SDR, respectively. This includes the impact of certain non-contractual waivers.

(14) 

The ratio of net investment income to average net assets excluding interest expense for the year ended October 31, 2020 was 2.48%, 0.91%, 2.30%, 2.56%, 2.61% and 2.69% for Class A, Class C, Class I, Class Y, Class F and Class SDR, respectively.

(15) 

Commenced operations on February 28, 2020.

(16) 

Commenced operations on February 28, 2019.

(17) 

The ratio of expenses before adjustments to average net assets excluding interest expense for the period February 28, 2019 through October 31, 2019 was 1.39%, 1.14%, 1.09%, 1.07% and 1.07% for Class A, Class I, Class Y, Class F and Class SDR, respectively.

(18) 

The ratio of expenses after adjustments to average net assets excluding interest expense for the period February 28, 2019 through October 31, 2019 was 0.79%, 0.76%, 0.70%, 0.68% and 0.70% for Class A, Class I, Class Y, Class F and Class SDR, respectively. This includes the impact of certain non-contractual waivers.

(19) 

The ratio of net investment income to average net assets excluding interest expense for the period February 28, 2019 through October 31, 2019 was 2.68%, 2.71%, 2.77%, 2.81% and 2.71% for Class A, Class I, Class Y, Class F and Class SDR, respectively.

(20) 

Prior to October 24, 2016 this Fund operated under a different name. Effective before the opening of business on October 24, 2016, the Advisor, Investor, and R6 share classes were redesignated as Class A, I, and SDR, respectively.

 

The accompanying notes are an integral part of these financial statements.

 

 

  88  

 


Hartford Schroders Funds

Notes to Financial Statements

October 31, 2020

 

 

 

1.

Organization:

The Hartford Mutual Funds II, Inc. (the “Company”) is an open-end registered management investment company comprised of fourteen series, as of October 31, 2020. Financial statements of each series of the Company listed below (each, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds II, Inc.:

Hartford Schroders China A Fund (the “China A Fund”)

Hartford Schroders Emerging Markets Equity Fund (the “Emerging Markets Equity Fund”)

Hartford Schroders Emerging Markets Multi-Sector Bond Fund (the “Emerging Markets Multi-Sector Bond Fund”)

Hartford Schroders International Multi-Cap Value Fund (the “International Multi-Cap Value Fund”)

Hartford Schroders International Stock Fund (the “International Stock Fund”)

Hartford Schroders Securitized Income Fund (the “Securitized Income Fund”)

Hartford Schroders Tax-Aware Bond Fund (the “Tax-Aware Bond Fund”)

Hartford Schroders US MidCap Opportunities Fund (the “US MidCap Opportunities Fund”)

Hartford Schroders US Small Cap Opportunities Fund (the “US Small Cap Opportunities Fund”)

The assets of each Fund are separate, and a shareholder’s interest is limited to the Fund in which shares are held. The Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Each Fund, except China A Fund and Emerging Markets Multi-Sector Bond Fund, is a diversified open-end management investment company. China A Fund and Emerging Markets Multi-Sector Bond Fund are each a non-diversified open-end management investment company. Each Fund applies specialized accounting and reporting standards under Accounting Standards Codification-Topic 946, “Financial Services – Investment Companies”.

The China A Fund commenced operations on March 31, 2020. Each Fund has registered for sale Class A, Class C, Class I, Class Y, Class F and Class SDR shares. In addition, each Fund, except China A Fund, Securitized Income Fund and Tax-Aware Bond Fund, has registered for sale Class R3, Class R4 and Class R5 shares. Effective February 28, 2020, Class C of the Securitized Income Fund commenced operations. Class A shares of each Fund, except Emerging Markets Multi-Sector Bond Fund, Securitized Income Fund and Tax-Aware Bond Fund, are sold with a front-end sales charge of up to 5.50%. Class A shares of Emerging Markets Multi-Sector Bond Fund and Tax-Aware Bond Fund are sold with a front-end sales charge of up to 4.50%. Class A shares of Securitized Income Fund are sold with a front-end sales charge of up to 3.00%. Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Effective October 1, 2018, Class C shares automatically convert to Class A shares of the same Fund after ten years provided that the Fund or the financial intermediary has records verifying that the Class C shares have been held for at least ten years. Classes I, R3, R4, R5, Y, F and SDR shares do not have a sales charge.

 

2.

Significant Accounting Policies:

The following is a summary of significant accounting policies of each Fund used in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

  a)

Determination of Net Asset Value – The net asset value (“NAV”) of each class of each Fund’s shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). If the Exchange is closed due to weather or other extraordinary circumstances on a day it would typically be open for business, each Fund may treat such day as a typical business day and accept purchase and redemption orders and calculate each Fund’s NAV in accordance with applicable law. The NAV for each class of each Fund’s shares is determined by dividing the value of the Fund’s net assets attributable to the shares by the number of shares outstanding. Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b)

Investment Valuation and Fair Value MeasurementsFor purposes of calculating the NAV of each class of each Fund, portfolio securities and other assets held in the Fund’s portfolio for which market prices are readily available are valued at market value. Market value is generally determined on the basis of official close price or last reported trade price. If no trades were reported, market value is based on prices obtained from a quotation reporting system, established market makers (including evaluated prices), or independent pricing services. Pricing vendors may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, general market conditions, news, and other factors and assumptions.

 

 

  89  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

If market prices are not readily available or are deemed unreliable, a Fund will use the fair value of the security or other instrument as determined in good faith under policies and procedures established by and under the supervision of the Board of Directors of the Company (the “Board of Directors”) (“Valuation Procedures”). Market prices are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of a Fund’s portfolio holdings or assets. In addition, market prices are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities or other instruments trade do not open for trading for the entire day and no other market prices are available. Fair value pricing is subjective in nature and the use of fair value pricing by a Fund may cause the NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio holding is primarily traded. There can be no assurance that a Fund could obtain the fair value assigned to an investment if the Fund were to sell the investment at approximately the time at which the Fund determines its NAV.

Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Securities and other instruments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign securities or other instruments in which a Fund invests may change on days when a shareholder will not be able to purchase, redeem or exchange shares of the Fund.

Fixed income investments (other than short-term obligations) held by a Fund are normally valued at prices supplied by independent pricing services in accordance with the Valuation Procedures. Short-term investments maturing in 60 days or less are generally valued at amortized cost.

Exchange-traded derivatives, such as options, futures and options on futures, are valued at the last sale price determined by the exchange where such instruments principally trade as of the close of such exchange (“Exchange Close”). If a last sale price is not available, the value will be the mean of the most recently quoted bid and ask prices as of the Exchange Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the most recently quoted bid price as of the Exchange Close. Over-the-counter derivatives are normally valued based on prices supplied by independent pricing services in accordance with the Valuation Procedures.

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using the prevailing spot currency exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities or other instruments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Exchange is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of a Fund.

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

Investments in open-end mutual funds, if any, are valued at the respective NAV of each open-end mutual fund on the Valuation Date. Shares of investment companies listed and traded on an exchange are valued in the same manner as any exchange-listed equity security. Such open-end mutual funds and listed investment companies may use fair value pricing as disclosed in their prospectuses.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with the Valuation Procedures.

U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

   

Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.

   

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.

 

 

  90  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

   

Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

The Board of Directors has delegated the day-to-day responsibility for implementing the Valuation Procedures to the Valuation Committee. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of such Fund’s sub-adviser(s), as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Board of Directors.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Value Summary and the Level 3 roll-forward reconciliation, if applicable, which follows each Fund’s Schedule of Investments.

 

  c)

Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

The trade date for senior floating rate interests purchased in the primary loan market is considered the date on which the loan allocations are determined. The trade date for senior floating rate interests purchased in the secondary loan market is the date on which the transaction is entered into.

Dividend income from domestic securities is accrued on the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, a Fund will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available. Paydown gains and losses on mortgage-related and other asset-backed securities are included in interest income in the Statements of Operations, as applicable.

Interest income, including amortization of premium, accretion of discounts, inflation adjustments and additional principal received in-kind in lieu of cash, is accrued on a daily basis.

Please refer to Note 8 for Securities Lending information.

 

  d)

Taxes – A Fund may be subject to taxes imposed on realized gains on securities of certain foreign countries in which such Fund invests. A Fund may also be subject to taxes withheld on foreign dividends and interest from securities in which a Fund invests. The amount of any foreign taxes withheld and foreign tax expense is included on the accompanying Statements of Operations as a reduction to net investment income or net realized or unrealized gain (loss) on investments in these securities, if applicable.

 

  e)

Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the Valuation Date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

A Fund does not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements.

Net realized foreign exchange gains or losses arise from sales of foreign currencies and the difference between asset and liability amounts initially stated in foreign currencies and the U.S. dollar value of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of other assets and liabilities at the end of the reporting period, resulting from changes in the exchange rates.

 

  f)

Joint Trading Account – A Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements.

 

  g)

Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each class of each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each class of each Fund’s shares is determined as of the close of business

 

 

  91  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class of the Fund. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV determined as of the close of the Exchange. Orders received after the close of the Exchange, or on a day on which the Exchange and/or the Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by the Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of China A Fund, Emerging Markets Equity Fund, International Stock Fund, US MidCap Opportunities Fund and US Small Cap Opportunities Fund is to pay dividends from net investment income and realized gains, if any, at least once a year. The policy of Securitized Income Fund and Tax-Aware Bond Fund is to pay dividends from net investment income, if any, monthly, and realized gains, if any, at least once a year. The policy of Emerging Markets Multi-Sector Bond Fund and International Multi-Cap Value Fund is to pay dividends from net investment income, if any, quarterly, and realized gains, if any, at least once a year.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts notes).

 

  h)

Cash Flow Information – The Securitized Income Fund has included a Statement of Cash Flows, which provides additional information on cash receipts and cash payments, as a result of its significant investments in reverse repurchase agreements throughout the year. Cash may include domestic and foreign currency as well as restricted cash held at brokers.

 

3.

Securities and Other Investments:

 

  a)

Restricted Securities – Each Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if applicable, is included at the end of each Fund’s Schedule of Investments.

 

  b)

Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by a Fund on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of October 31, 2020.

In connection with a Fund’s ability to purchase investments on a when-issued or forward commitment basis, the Fund may enter into to-be announced (“TBA”) commitments. TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed-upon future settlement date. The specific securities to be delivered are not identified at the trade date; however, delivered securities must meet specified terms, including issuer, rate and mortgage terms. Although a Fund may enter into TBA commitments with the intention of acquiring or delivering securities for its portfolio, the Fund can extend the settlement date, roll the transaction, or dispose of a commitment prior to settlement if deemed appropriate to do so. If the TBA commitment is closed through the acquisition of an offsetting TBA commitment, a Fund realizes a gain or loss. In a TBA roll transaction, a Fund generally purchases or sells the initial TBA commitment prior to the agreed upon settlement date and enters into a new TBA commitment for future delivery or receipt of the mortgage-backed securities. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date. These transactions are excluded from a Fund’s portfolio turnover rate. See each Fund’s Schedule of Investments, if applicable, for TBA commitments as of October 31, 2020.

 

  c)

Mortgage-Related and Other Asset-Backed Securities – A Fund may invest in mortgage-related and other asset-backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations, commercial mortgage-backed securities, stripped mortgage-backed securities, asset-backed securities, collateralized debt obligations and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Asset-backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. These securities provide a monthly payment that consists of both interest and principal payments. Interest payments may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and

 

 

  92  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed by the full faith and credit of the United States Government. Mortgage-related and other asset-backed securities created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that the private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. See each Fund’s Schedule of Investments, if applicable, for mortgage-related and other asset-backed securities as of October 31, 2020.

 

  d)

Inflation-Indexed Bonds – A Fund may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income investments whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive the principal amount until maturity. See each Fund’s Schedule of Investments, if applicable, for inflation-indexed bonds as of October 31, 2020.

 

  e)

Reverse Repurchase Agreements – Reverse repurchase agreements involve the sale of securities held by a Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse repurchase agreements carry the risk that the market value of the securities that a Fund is obligated to repurchase may decline below the repurchase price. A Fund could also lose money if it is unable to recover the securities and the value of any collateral held or assets segregated by the Fund to cover the transaction is less than the value of securities. The use of reverse repurchase agreements may increase the possibility of fluctuation in a Fund’s net asset value.

For the year ended October 31, 2020, Securitized Income Fund had used Reverse Repurchase Agreements.

For the year ended October 31, 2020, the Securitized Income Fund had an outstanding reverse repurchase agreement balance for 366 days. The average amount of borrowings was $17,582,746 and the annualized weighted average interest rate was 10.83% during the period end.

The following table summarizes open reverse repurchase agreements by counterparty which are subject to offset under a master repurchase agreement (“MRA”) and net of the related collateral received/pledged by the Securitized Income Fund as of October 31, 2020:

 

Counterparty

   Reverse
Repurchase
Agreement
     Collateral
Pledged1
    Net
Amount2
 

JP Morgan Chase Bank

   $     19,532,637      $     (19,532,637   $     —  

Merrill Lynch Mortgage Investors Trust

     11,390,876        (11,390,876      
  

 

 

    

 

 

   

 

 

 

Total

   $ 30,923,513      $ (30,923,513   $  
  

 

 

    

 

 

   

 

 

 

 

  1 

Collateral with a value of $37,177,244 has been pledged in connection with open reverse repurchase agreements. In some instances, the actual collateral pledged may be more than the amount shown here due to overcollateralization.

  2 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

4.

Financial Derivative Instruments:

The following disclosures contain information on how and why a Fund may use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to the Schedules of Investments, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a)

Foreign Currency Contracts – A Fund may enter into foreign currency contracts that obligate the Fund to purchase or sell currencies at specified future dates. Foreign currency contracts may be used in connection with settling purchases or sales of securities to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled.

Foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. Upon entering into a foreign currency contract, a Fund may be required to post margin equal to its outstanding exposure thereunder.

During the year ended October 31, 2020, each of Emerging Markets Equity Fund, Emerging Markets Multi-Sector Bond Fund, International Multi-Cap Value Fund and Securitized Income Fund had used Foreign Currency Contracts.

 

 

  93  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  b)

Futures Contracts – A Fund may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund may use futures contracts to manage risk or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and an appropriate amount equal to the change in value (“variation margin”) is paid or received by a Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities.

During the year ended October 31, 2020, each of Emerging Markets Multi-Sector Bond Fund, International Multi-Cap Value Fund, Securitized Income Fund, Tax-Aware Bond Fund and US MidCap Opportunities Fund had used Futures Contracts.

 

  c)

Swap Contracts – A Fund may invest in swap contracts. Swap contracts are agreements to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified future intervals. Swap contracts are either privately negotiated in the over-the-counter market (“OTC swaps”) or cleared through a central counterparty or derivatives clearing organization (“centrally cleared swaps”). A Fund may enter into credit default, total return, cross-currency, interest rate, inflation and other forms of swap contracts to manage its exposure to credit, currency, interest rate, commodity and inflation risk. Swap contracts are also used to gain exposure to certain markets. In connection with these contracts, investments or cash may be identified as collateral or margin in accordance with the terms of the respective swap contracts and/or master netting arrangement to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Swaps are valued in accordance with the Valuation Procedures. Changes in market value, if any, are reflected as a component of net changes in unrealized appreciation or depreciation on the Statements of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value (“variation margin”) on the Statements of Assets and Liabilities. Realized gains or losses on centrally cleared swaps are recorded upon the termination of the swaps. OTC swap payments received or paid at the beginning of the measurement period are reflected as such on the Statements of Assets and Liabilities and represent premiums paid or received upon entering into the swap contract to compensate for differences between the stated terms of the swap contract and prevailing market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors). These upfront premiums are recorded as realized gains or losses on the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as a realized gain or loss on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statements of Operations.

Entering into these contracts involves, to varying degrees, elements of liquidation, counterparty, credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these contracts, that the counterparty to the contracts may default on its obligation to perform or disagree as to the meaning of contractual terms in the contracts, and that there may be unfavorable changes in market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors).

A Fund’s maximum risk of loss from counterparty risk for OTC swaps is the net value of the discounted cash flows to be received from the counterparty over the contract’s remaining life, and current market value, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between a Fund and the counterparty, which allows for the netting of payments made or received (although such amounts are presented on a gross basis within the Statements of Assets and Liabilities, as applicable) as well as the posting of collateral to a Fund to cover the Fund’s exposure to the counterparty. In a centrally cleared swap, while a Fund enters into an agreement with a clearing broker to execute contracts with a counterparty, the performance of the swap is guaranteed by the central clearinghouse, which reduces the Fund’s exposure to counterparty risk. However, the Fund is still exposed to a certain amount of counterparty risk through the clearing broker and clearinghouse. The clearinghouse attempts to minimize this risk to its participants through the use of mandatory margin requirements, daily cash settlements and other procedures. Likewise, the clearing broker reduces its risk through margin requirements and required segregation of customer balances.

Credit Default Swap Contracts – The credit default swap market allows a Fund to manage credit risk through buying and selling credit protection on a specific issuer, asset or basket of assets. Certain credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying investment or index in the event of a credit event, such as payment default or bankruptcy.

Under a credit default swap contract, one party acts as guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying investment at par if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statements of Operations. A “buyer” of credit protection agrees to pay a counterparty to assume the credit risk of an issuer upon the occurrence of certain events. The “seller” of the protection receives periodic payments and agrees to assume the credit risk of an issuer upon the occurrence of certain events. Although specified events are contract specific, credit events are generally defined as bankruptcy,

 

 

  94  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. A “seller’s” exposure is limited to the total notional amount of the credit default swap contract. These potential amounts would be partially offset by any recovery values of the respective referenced obligations or upfront payments received upon entering into the contract.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap contracts on corporate issues, sovereign government issues or U.S. municipal issues as of year-end are disclosed in the notes to the Schedules of Investments, as applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and there may also be upfront payments required to be made to enter into the contract. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced equity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract.

During the year ended October 31, 2020, the Emerging Markets Multi-Sector Bond Fund had used Credit Default Swaps.

 

  d)

Additional Derivative Instrument Information:

Emerging Markets Equity Fund

The Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain (Loss) on Derivatives Recognized as a Result of Operations:

                   

Net realized gain (loss) on foreign currency contracts

   $     —      $     (13,368   $     —      $     —      $     —      $     —      $     (13,368
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $ (13,368   $      $      $      $      $ (13,368
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the year ended October 31, 2020, the average monthly amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

   Average Notional
Par, Contracts
or Face Amount
 

Foreign Currency Contracts Sold at Contract Amount

   $     126,458  

Emerging Markets Multi-Sector Bond Fund

The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $     —      $     142,647      $      $      $      $      $ 142,647  

Unrealized appreciation on swap contracts

                   2,062                             2,062  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $ 142,647      $ 2,062      $      $      $      $ 144,709  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $      $ 57,120      $      $      $      $      $ 57,120  

Unrealized depreciation on swap contracts(1)

                   63,129                             63,129  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $ 57,120      $     63,129      $     —      $     —      $     —      $     120,249  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1)

Amount represents the cumulative appreciation and depreciation on centrally cleared swaps, if applicable, as disclosed within the Schedule of Investments. Only the current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities. OTC swaps are reported within the Statement of Assets and Liabilities within Unrealized appreciation and depreciation on OTC swap contracts, if applicable.

 

 

  95  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Emerging Markets Multi-Sector Bond Fund – (continued)

 

The Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Currency
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain (Loss) on Derivatives Recognized as a Result of Operations:

                 

Net realized gain (loss) on futures contracts

   $ (219,087   $     $     $      $      $      $ (219,087

Net realized gain (loss) on swap contracts

                 (67,912                          (67,912

Net realized gain (loss) on foreign currency contracts

           (631,007                                (631,007
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (219,087   $     (631,007   $     (67,912   $     —      $     —      $     —      $     (918,006
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                 

Net change in unrealized appreciation (depreciation) of futures contracts

   $ 6,047     $     $     $      $      $      $ 6,047  

Net change in unrealized appreciation (depreciation) of swap contracts

                 (61,732                          (61,732

Net change in unrealized appreciation (depreciation) of foreign currency contracts

           549,106                                  549,106  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 6,047     $ 549,106     $ (61,732   $      $      $      $ 493,421  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

For the year ended October 31, 2020, the average monthly amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

   Average Notional
Par, Contracts
or Face Amount
 

Futures Contracts Long at Number of Contracts

     2  

Futures Contracts Short at Number of Contracts

     (4

Swap Contracts at Notional Amount

   $ 5,829,167  

Foreign Currency Contracts Purchased at Contract Amount

   $ 14,988,846  

Foreign Currency Contracts Sold at Contract Amount

   $     11,683,660  

International Multi-Cap Value Fund

The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $      $ 79,148      $      $      $      $      $ 79,148  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $ 79,148      $      $      $      $      $ 79,148  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $      $ 881,902      $      $      $      $      $ 881,902  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —      $     881,902      $     —      $     —      $     —      $     —      $     881,902  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
    Credit
Contracts
     Equity
Contracts
    Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain (Loss) on Derivatives Recognized as a Result of Operations:

                  

Net realized gain (loss) on futures contracts

   $      $     $      $ (2,639,875   $      $      $ (2,639,875

Net realized gain (loss) on foreign currency contracts

            (1,545,852                                (1,545,852
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $     —      $     (1,545,852   $     —      $     (2,639,875   $     —      $     —      $     (4,185,727
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                  

Net change in unrealized appreciation (depreciation) of foreign currency contracts

   $      $ (703,726   $      $     $      $      $ (703,726
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $      $ (703,726   $      $     $      $      $ (703,726
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

  96  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

International Multi-Cap Value Fund – (continued)

 

For the year ended October 31, 2020, the average monthly amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

   Average Notional
Par, Contracts
or Face Amount
 

Futures Contracts Long at Number of Contracts

     14  

Foreign Currency Contracts Purchased at Contract Amount

   $ 7,710,968  

Foreign Currency Contracts Sold at Contract Amount

   $     49,415,698  

Securitized Income Fund

The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $      $ 15,225      $      $      $      $      $ 15,225  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $ 15,225      $      $      $      $      $ 15,225  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $      $ 20,040      $      $      $      $      $ 20,040  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —      $     20,040      $     —      $     —      $     —      $     —      $     20,040  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain (Loss) on Derivatives Recognized as a Result of Operations:

                   

Net realized gain (loss) on futures contracts

   $     —      $     (314,298   $     —      $     —      $     —      $     —      $     (314,298

Net realized gain (loss) on foreign currency contracts

            9,089                                   9,089  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $ (305,209   $      $      $      $      $ (305,209
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                   

Net change in unrealized appreciation (depreciation) of futures contracts

   $      $ 234,239     $      $      $      $      $ 234,239  

Net change in unrealized appreciation (depreciation) of foreign currency contracts

            (4,815                                 (4,815
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $      $ 229,424     $      $      $      $      $ 229,424  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the year ended October 31, 2020, the average monthly amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

   Average Notional
Par, Contracts
or Face Amount
 

Futures Contracts Short at Number of Contracts

     (58

Foreign Currency Contracts Purchased at Contract Amount

   $ 238,766  

Foreign Currency Contracts Sold at Contract Amount

   $     1,059,620  

Tax-Aware Bond Fund

The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on futures contracts(1)

   $     520,335      $     —      $     —      $     —      $     —      $     —      $     520,335  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 520,335      $      $      $      $      $      $ 520,335  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1)

Amount represents the cumulative appreciation and depreciation on futures contracts as disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, is reported within the Statement of Assets and Liabilities.

 

 

  97  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Tax-Aware Bond Fund – (continued)

 

The Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2020:

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Currency
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain (Loss) on Derivatives Recognized as a Result of Operations:

                   

Net realized gain (loss) on futures contracts

   $     (1,124,168   $     —      $     —      $     —      $     —      $     —      $     (1,124,168
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (1,124,168   $      $      $      $      $      $ (1,124,168
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                   

Net change in unrealized appreciation (depreciation) of futures contracts

   $ 493,780     $      $      $      $      $      $ 493,780  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 493,780     $      $      $      $      $      $ 493,780  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the year ended October 31, 2020, the average monthly amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

   Average Notional
Par, Contracts
or Face Amount
 

Futures Contracts Long at Number of Contracts

     35  

Futures Contracts Short at Number of Contracts

     (260

 

  e)

Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and a Fund’s custodian. The master netting arrangements allow the clearing brokers to net any collateral held in or on behalf of a Fund, or liabilities or payment obligations of the clearing brokers to a Fund, against any liabilities or payment obligations of a Fund to the clearing brokers. A Fund is required to deposit financial collateral (including cash collateral) at the Fund’s custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present a Fund’s derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statements of Assets and Liabilities, by counterparty net of amounts available for offset under a master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by a Fund as of October 31, 2020:

Emerging Markets Multi-Sector Bond Fund

 

Derivative Financial Instruments:

   Assets      Liabilities  

Foreign currency contracts

   $     142,647      $ (57,120

Swap contracts

     2,062        (63,129
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     144,709            (120,249
  

 

 

    

 

 

 

Derivatives not subject to a MNA

             
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

   $     144,709      $ (120,249
  

 

 

    

 

 

 

Emerging Markets Multi-Sector Bond Fund

 

Counterparty

   Gross Amount
of Assets
     Financial
Instruments
and Derivatives
Available
for Offset
    Non-cash
Collateral
Received*
     Cash
Collateral
Received*
     Net Amount
of Assets
 

Citibank NA

   $ 32,088      $ (23,024   $      $      $ 9,064  

JP Morgan Chase & Co.

     55,497        (55,497                    

Morgan Stanley

     5,110        (5,110                    

UBS AG

     52,014                            52,014  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $     144,709      $     (83,631   $     —      $     —      $     61,078  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

  98  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Emerging Markets Multi-Sector Bond Fund – (continued)

 

Counterparty

   Gross Amount
of Liabilities
    Financial
Instruments
and Derivatives
Available
for Offset
     Non-cash
Collateral
Pledged*
     Cash
Collateral
Pledged*
     Net Amount
of Liabilities
 

Citibank NA

   $ (23,024   $ 23,024      $      $      $  

JP Morgan Chase & Co.

     (57,624     55,497                      (2,127

Morgan Stanley

     (39,601     5,110                      (34,491
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (120,249   $     83,631      $     —      $     —      $     (36,618
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  *

In some instances, the actual collateral received and/or pledged may be more than the amount shown.

International Multi-Cap Value Fund

 

Derivative Financial Instruments:

   Assets      Liabilities  

Foreign currency contracts

   $     79,148      $     (881,902
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     79,148        (881,902
  

 

 

    

 

 

 

Derivatives not subject to a MNA

             
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

   $ 79,148      $ (881,902
  

 

 

    

 

 

 

International Multi-Cap Value Fund

 

Counterparty

   Gross Amount
of Assets
    Financial
Instruments
and Derivatives
Available for
Offset
    Non-cash
Collateral
Received*
     Cash
Collateral
Received*
     Net Amount
of Assets
 

JP Morgan Chase & Co.

   $ 79,148     $     (79,148   $      $      $  
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

   Gross Amount
of Liabilities
    Financial
Instruments
and Derivatives
Available for
Offset
    Non-cash
Collateral
Pledged*
     Cash
Collateral
Pledged*
     Net Amount
of Liabilities
 

Banc of America Securities LLC

   $ (698,951   $     $      $      $ (698,951

JP Morgan Chase & Co.

     (182,951     79,148                     (103,803
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $     (881,902   $ 79,148     $     —      $     —      $     (802,754
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  *

In some instances, the actual collateral received and/or pledged may be more than the amount shown.

Securitized Income Fund

 

Derivative Financial Instruments:

   Assets      Liabilities  

Foreign currency contracts

   $     15,225      $     (20,040
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     15,225        (20,040
  

 

 

    

 

 

 

Derivatives not subject to a MNA

             
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

   $ 15,225      $ (20,040
  

 

  

 

  

 

  

 

 

    

 

 

 

Securitized Income Fund

 

Counterparty

   Gross Amount
of Assets
     Financial
Instruments
and Derivatives
Available for
Offset
     Non-cash
Collateral
Received*
     Cash
Collateral
Received*
     Net Amount
of Assets
 

BNP Paribas Securities Services

   $     10,075      $     —      $     —      $     —      $     10,075  

JP Morgan Chase & Co.

     5,150                             5,150  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 15,225      $      $      $      $ 15,225  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

  99  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Securitized Income Fund – (continued)

 

Counterparty

   Gross Amount
of Liabilities
    Financial
Instruments
and Derivatives
Available for
Offset
     Non-cash
Collateral
Pledged*
     Cash
Collateral
Pledged*
     Net Amount
of Liabilities
 

Banc of America Securities LLC

   $ (11,567   $      $      $      $ (11,567

Barclays

     (406                          (406

Citibank NA

     (776                          (776

Morgan Stanley

     (35                          (35

UBS AG

     (7,256                          (7,256
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (20,040   $     —      $     —      $     —      $     (20,040
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  *

In some instances, the actual collateral received and/or pledged may be more than the amount shown.

Tax-Aware Bond Fund

 

Derivative Financial Instruments:

   Assets     Liabilities  

Futures contracts

   $     520,335     $     —  
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     520,335        
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (520,335      
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

   $     $  
  

 

 

   

 

 

 

 

5.

Principal Risks:

A Fund’s investments expose it to various types of risks associated with financial instruments and the markets. A Fund may be exposed to the risks described below. Each Fund’s prospectus provides details of its principal risks.

The market values of equity securities, such as common stocks and preferred stocks, or equity related derivative investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s Schedule of Investments.

A widespread health crisis, such as a global pandemic, could cause substantial market volatility, exchange trading suspensions or restrictions and closures of securities exchanges and businesses, impact the ability to complete redemptions, and adversely impact Fund performance. The current ongoing outbreak of COVID-19, a respiratory disease caused by a novel coronavirus, has negatively affected the worldwide economy, the financial health of individual companies and the market in significant and unforeseen ways. The future impact of the ongoing COVID-19 pandemic remains unclear. The effects to public health, business and market conditions resulting from COVID-19 pandemic may have a significant negative impact on the performance of a Fund’s investments, including exacerbating other pre-existing political, social and economic risks.

Certain investments held by a Fund expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, and extension risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by a Fund are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. Senior floating rate interests and securities subject to prepayment and extension risk generally offer less potential for gains when interest rates decline. Rising interest rates may cause prepayments to occur at a slower than expected rate, thereby effectively lengthening the maturity of the security and making the security more sensitive to interest rate changes. Prepayment and extension risk are major risks of mortgage-backed securities, senior floating rate interests and certain asset-backed securities. For certain asset-backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.

Investing in the securities of non-U.S. issuers, whether directly or indirectly, involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations; imposition of restrictions on the expatriation of funds or other protectionist measures; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different

 

 

  100  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; and greater social, economic and political uncertainties. Non-U.S. issuers may also be affected by political, social, economic or diplomatic developments in a foreign country or region or the U.S. (including the imposition of sanctions, tariffs, or other governmental restrictions). These risks are heightened for investments in issuers from countries with less developed markets.

Securities lending involves the risk that a Fund may lose money because the borrower of the loaned securities fails to return the securities in a timely manner or at all. A Fund could also lose money in the event of a decline in the value of the collateral provided for the loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for a Fund that lends its holdings.

As a result of the China A Fund’s focus in China A shares, the Fund may be subject to increased currency, political, economic, social, environmental, regulatory and other risks not typically associated with investing in a larger number of countries or regions. Over the last few decades, the Chinese government has undertaken reform of economic and market practices and has expanded the sphere of private ownership of property in China. Nevertheless, China remains an emerging market and demonstrates significantly higher volatility from time to time in comparison to developed markets. China A shares are equity securities of companies located in mainland China that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. The China A Fund may invest in China A shares through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs (collectively, “Stock Connect”). The Shanghai and Shenzhen stock exchanges may close for extended periods for holidays or otherwise, which impacts the Fund’s ability to trade in China A shares during those periods. Trading suspensions in certain stocks and extended market closures could lead to greater market execution risk, valuation risks, liquidity risks, and costs for the Fund. The Fund’s investments in China A shares are generally subject to the laws of the People’s Republic of China (“PRC”), including local securities regulations and listing rules. As a result of different legal standards, the Fund faces the risk of being unable to enforce its rights with respect to its China A shares holdings. Investing in China A shares is subject to trading, clearance, settlement and other procedures, which could pose risks to the Fund. Trading through Stock Connect is currently subject to a daily quota, which may restrict the Fund’s ability to invest in China A shares through Stock Connect on a timely basis and could affect the Fund’s ability to effectively pursue its investment strategy. Stock Connect will only operate on days when both the Chinese and Hong Kong markets are open for trading and when banking services are available in both markets on the corresponding settlement days. Therefore, an investment in China A shares through Stock Connect may subject the Fund to the risk of price fluctuations on days when the Chinese markets are open, but Stock Connect is not trading. If the Fund invests through the Qualified Foreign Institutional Investor or Renminbi Qualified Foreign Institutional Investor systems, it may be subject to additional risks, such as failure to achieve best execution, trading disruption, custody risk and credit loss. In difficult market conditions, the Fund may not be able to sell its investments easily or at all, which could affect Fund performance and the Fund’s liquidity.

Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. A Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.

The Funds may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as a “benchmark” or “reference rate” for various interest rate calculations. The use of LIBOR is expected to be phased out by the end of 2021. There remains uncertainty regarding the future use of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on a Fund or the LIBOR-based instruments in which the Fund invests cannot yet be determined. The transition process away from LIBOR may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR. The transition process may also result in a reduction in the value of certain instruments held by a Fund or reduce the effectiveness of related Fund transactions, such as hedges. Volatility, the potential reduction in value, and/or the hedge effectiveness of financial instruments may be heightened for financial instruments that do not include fallback provisions that address the cessation of LIBOR. Any potential effects of the transition away from LIBOR on the Fund or on financial instruments in which a Fund invests, as well as other unforeseen effects, could result in losses to the Fund. Since the usefulness of LIBOR as a benchmark or reference rate could deteriorate during the transition period, these effects could occur prior to and/or subsequent to the end of 2021.

 

6.

Federal Income Taxes:

 

  a)

Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders each year. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2020. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b)

Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments, foreign currency

 

 

  101  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), RICs, certain derivatives and partnerships. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by each Fund.

 

  c)

Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2020 and October 31, 2019 are as follows:

 

    For the Year Ended
October 31, 2020
    For the Year Ended
October 31, 2019
 

Fund

  Tax Exempt
Income
    Ordinary
Income
    Long-Term
Capital Gains(1)
    Tax Return
of Capital
    Tax Exempt
Income
    Ordinary
Income
    Long-Term
Capital Gains(1)
    Tax Return
of Capital
 

China A Fund

  $     $     $     $     $

 
  $

 
  $

 
  $

 

Emerging Markets Equity Fund

              85,774,060                             39,644,839              

Emerging Markets Multi-Sector Bond Fund

          2,799,007                 819,588             5,060,463                 449,054  

International Multi-Cap Value Fund

          56,756,679                         84,909,372       18,475,074        

International Stock Fund

          5,533,113                         9,083,992       8,985,009        

Securitized Income Fund

          1,774,094       33,289                   896,077              

Tax-Aware Bond Fund

        4,164,856       6,023,461           3,237,898                 3,566,783       2,140,618       2,272,801        

US MidCap Opportunities Fund

          2,157,050       6,148,756                   7,239,899           14,900,220        

US Small Cap Opportunities Fund

          1,091,183       9,867,740                   3,576,104       10,972,812        

 

  (1)

The Funds designate these distributions as long-term capital gains pursuant to IRC Sec 852(b)(3)(c).

As of October 31, 2020, the components of total accumulated earnings (deficit) for each Fund on a tax basis are as follows:

 

Fund

   Tax Exempt
Income
     Undistributed
Ordinary
Income
     Undistributed
Long-Term
Capital Gain
     Accumulated
Capital and
Other Losses
    Other
Temporary
Differences
    Unrealized
Appreciation
(Depreciation) on
Investments
    Total
Accumulated
Earnings
(Deficit)
 

China A Fund

   $      $ 816,256      $      $     $     $ 1,737,493     $ 2,553,749  

Emerging Markets Equity Fund

                43,121,385                   (425,117,846     (579         1,186,857,733       804,860,693  

Emerging Markets Multi-Sector Bond Fund

                          (12,939,365         (9,339     (1,027,227     (13,975,931

International Multi-Cap Value Fund

            15,299,795               (244,440,804     (2,142     (179,058,346         (408,201,497

International Stock Fund

            4,499,194               (3,350,999           103,724,071       104,872,266  

Securitized Income Fund

            258,610               (713,403           (1,136,736     (1,591,529

Tax-Aware Bond Fund

         137,949        3,503,355            2,554,910              (3,079     14,557,859       20,750,994  

US MidCap Opportunities Fund

            1,704,373               (737,951     (471     125,898,088       126,864,039  

US Small Cap Opportunities Fund

                          (8,217,101           31,501,281       23,284,180  

 

  d)

Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items non-deductible expenses and distribution in excess. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from distributable earnings or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2020, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

Fund

   Capital Stock and
Paid-in-Capital
    Distributable
Earnings (Loss)
 

China A Fund

   $ (204   $ 204  

US Small Cap Opportunities Fund

         (164,782         164,782  

 

  e)

Tax Basis of Investments – The aggregate cost of investments for federal income tax purposes at October 31, 2020 is different from book purposes primarily due to wash sale loss deferrals and adjustments related to PFICs. The net unrealized appreciation/(depreciation) on investments for tax purposes, which consists of gross unrealized appreciation and depreciation was also different from book purposes primarily due to wash sale loss deferrals, PFIC mark to market adjustments and partnership adjustments and mark-to-market adjustments on swaps, forwards, futures and options. Both the cost and unrealized appreciation and depreciation for federal income tax purposes are disclosed below:

 

Fund

   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
(Depreciation)
    Net Unrealized
Appreciation
(Depreciation)
 

China A Fund

   $ 6,153,943      $ 1,925,002      $ (187,513   $ 1,737,489  

Emerging Markets Equity Fund

         2,983,915,254            1,334,618,041            (147,192,837         1,187,425,204  

Emerging Markets Multi-Sector Bond Fund

     61,103,832        1,803,556        (2,804,518     (1,000,962

International Multi-Cap Value Fund

     1,943,729,997        107,238,640        (286,427,109     (179,188,469

International Stock Fund

     916,274,146        154,297,714        (50,576,342     103,721,372  

 

 

  102  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Fund

   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
(Depreciation)
    Net Unrealized
Appreciation
(Depreciation)
 

Securitized Income Fund

   $ 125,375,356      $ 551,526      $ (1,689,622   $ (1,138,096

Tax-Aware Bond Fund

     428,190,826        15,180,872        (623,013     14,557,859  

US MidCap Opportunities Fund

     522,686,142        150,406,009        (24,507,921     125,898,088  

US Small Cap Opportunities Fund

     204,377,673        50,168,648        (18,667,367     31,501,281  

 

  f)

Capital Loss Carryforward – Under the Regulated Investment Company Modernization Act of 2010, funds are permitted to carry forward capital losses for an unlimited period. At October 31, 2020 (tax year end), each Fund’s capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

Fund

   Short-Term
Capital Loss
Carryforward with
No Expiration
     Long-Term
Capital Loss
Carryforward with
No Expiration
 

Emerging Markets Equity Fund

   $     302,757,700      $     122,360,146  

Emerging Markets Multi-Sector Bond Fund(1)

     9,312,266        3,627,099  

International Multi-Cap Value Fund

     77,989,015        166,451,789  

International Stock Fund

     440,650        2,910,349  

Securitized Income Fund(1)

     331,356        382,047  

US MidCap Opportunities Fund

     737,951         

US Small Cap Opportunities Fund

     8,217,101         

 

  (1)

Future utilization of losses are subject to limitation under current tax laws.

The China A Fund and Tax-Aware Bond Fund had no capital loss carryforwards for U.S. federal income tax purposes as of October 31, 2020.

 

  g)

Accounting for Uncertainty in Income Taxes – Pursuant to provisions set forth by U.S. GAAP, Hartford Funds Management Company, LLC (“HFMC”) reviews each Fund’s tax positions for all open tax years. As of October 31, 2020, HFMC had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax obligations relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended October 31, 2020, the Funds did not incur any interest or penalties. HFMC is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax obligations will significantly change in the next twelve months.

 

7.

Expenses:

 

  a)

Investment Management Agreement – HFMC serves as each Fund’s investment manager pursuant to an Investment Management Agreement with the Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). HFMC has overall investment supervisory responsibility for each Fund. In addition, HFMC provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Schroder Investment Management North America Inc. (“SIMNA”) under a sub-advisory agreement and SIMNA has contracted with Schroder Investment Management North America Limited (“SIMNA Ltd.”) under a sub-sub-advisory agreement with respect to certain Funds. SIMNA performs the daily investment of the assets of each Fund in accordance with the Fund’s investment objective and policies. SIMNA Ltd. also performs daily investment of the assets for each of China A Fund, Emerging Markets Equity Fund, International Multi-Cap Value Fund, International Stock Fund and Tax-Aware Bond Fund. HFMC pays a sub-advisory fee to SIMNA out of its management fee. SIMNA pays the sub-sub-advisory fees to SIMNA Ltd.

The schedule below reflects the rates of compensation paid to HFMC for investment management services rendered as of October 31, 2020; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

Fund

  

Management Fee Rates

China A Fund

  

0.9000% on first $1 billion and;

  

0.8900% over $1 billion

Emerging Markets Equity Fund

  

1.0500% on first $1 billion and;

  

1.0000% on next $4 billion and;

  

0.9900% on next $5 billion and;

  

0.9850% over $10 billion

Emerging Markets Multi-Sector Bond Fund

  

0.7000% on first $1 billion and;

  

0.6500% on next $4 billion and;

  

0.6400% on next $5 billion and;

  

0.6350% over $10 billion

 

 

  103  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Fund

  

Management Fee Rates

International Multi-Cap Value Fund

  

0.7200% on first $1 billion and;

  

0.6800% on next $4 billion and;

  

0.6750% on next $5 billion and;

  

0.6700% over $10 billion

International Stock Fund

  

0.6700% on first $1 billion and;

  

0.6500% on next $4 billion and;

  

0.6450% on next $5 billion and;

  

0.6400% over $10 billion

Securitized Income Fund

  

0.6500% on first $1 billion and;

  

0.6000% over $1 billion

Tax-Aware Bond Fund

  

0.4500% on first $1 billion and;

  

0.4300% on next $4 billion and;

  

0.4250% on next $5 billion and;

  

0.4200% over $10 billion

US MidCap Opportunities Fund

  

0.7500% on first $1 billion and;

  

0.7000% on next $1.5 billion and;

  

0.6500% on next $2.5 billion and;

  

0.6450% on next $5 billion and;

  

0.6400% over $10 billion

US Small Cap Opportunities Fund

  

0.9000% on first $1 billion and;

  

0.8900% on next $4 billion and;

  

0.8800% on next $5 billion and;

  

0.8700% over $10 billion

 

  b)

Accounting Services Agreement – HFMC provides the Funds with accounting services pursuant to a fund accounting agreement by and between the Company, on behalf of the Funds, and HFMC. HFMC has delegated certain accounting and administrative service functions to State Street Bank and Trust Company (“State Street”). In consideration of services rendered and expenses assumed pursuant to the fund accounting agreement, each Fund pays HFMC a fee. Effective January 1, 2020, the fund accounting agreement was modified to reflect a new fee structure. Under this revised fee structure, HFMC is entitled to receive the following fee with respect to each Fund: the sub-accounting fee payable by HFMC to State Street plus the amount of expenses that HFMC allocates for providing the fund accounting services.

From November 1, 2019 through December 31, 2019, the accounting services fees for each Fund, except the China A Fund, were accrued daily and paid monthly at the rates below.

 

 
Emerging Markets Equity Fund, Emerging Markets Multi-Sector Bond Fund, International Multi-Cap Value Fund, International Stock Fund and
Securitized Income Fund
 
Average Daily Net Assets    Annual Fees  

first $3.5 billion and;

     0.018%  

next $3.5 billion and;

     0.014%  

Amount over $7 billion

     0.010%  
 
Tax-Aware Bond Fund, US MidCap Opportunities Fund and US Small Cap Opportunities Fund  
Average Daily Net Assets    Annual Fees  

first $3.5 billion and;

     0.014%  

next $3.5 billion and;

     0.012%  

Amount over $7 billion

     0.010%  

 

  c)

Operating Expenses – Allocable expenses incurred by the Company are allocated to each series within the Company, and allocated to classes within each such series, in proportion to the average daily net assets of such series and classes, except where allocation of certain expenses is more fairly made directly to a Fund or to specific classes within a Fund. As of October 31, 2020, HFMC contractually agreed to limit the total annual fund operating expenses (exclusive of taxes, interest expenses, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) through February 28, 2021 (unless the Board of Directors approves its earlier termination), except as noted below, as follows for each of the following Funds:

 

     Expense Limit as a Percentage of Average Daily Net Assets  

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class Y     Class F     Class SDR  

China A Fund(1)

     1.45     2.25     1.15     N/A       N/A       N/A       1.11     0.99     0.99

Emerging Markets Multi-Sector Bond Fund

     1.15     1.90     0.90     1.45     1.15     0.85     0.85     0.75     0.75

International Stock Fund

     1.15     1.95     0.85     1.45     1.15     0.85     0.85     0.75     0.75

Securitized Income Fund

     1.10     1.95     0.85     N/A       N/A       N/A       0.80     0.70     0.70

Tax-Aware Bond Fund

     0.71     1.59     0.49     N/A       N/A       N/A       0.56     0.46     0.46

US Small Cap Opportunities Fund

     1.35     2.10     1.10     1.65     1.35     1.05     1.05     0.95     0.95

 

  (1) 

Expense limitation arrangement described above for China A Fund extends through March 31, 2021 (unless the Board of Directors approves its earlier termination).

 

 

  104  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

  d)

Fees Paid Indirectly – Certain Funds have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. to partially recapture non-discounted trade commissions. Such rebates are used to pay a portion of a Fund’s expenses. For the year or period ended October 31, 2020, these amounts, if any, are included in the Statements of Operations.

The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:

 

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class Y     Class F     Class SDR  

China A Fund

     1.29     2.22     1.15     N/A       N/A       N/A       1.10     0.99     0.99

Emerging Markets Equity Fund

     1.53     2.16     1.25     1.71     1.43     1.20     1.18     1.08     1.08

Emerging Markets Multi-Sector Bond Fund

     1.15     1.90     0.82     1.24     0.92     0.85     0.76     0.75     0.75

International Multi-Cap Value Fund

     1.12     1.86     0.85     1.48     1.18     0.86     0.81     0.76     0.76

International Stock Fund

     1.11     1.85     0.83     1.45     1.15     0.83     0.82     0.75     0.75

Securitized Income Fund

     1.10     2.29     1.12     N/A       N/A       N/A       1.07     1.06     1.07

Tax-Aware Bond Fund

     0.71     1.55     0.49     N/A       N/A       N/A       0.56     0.46     0.46

US MidCap Opportunities Fund

     1.18     1.92     0.90     1.53     1.23     0.93     0.90     0.81     0.81

US Small Cap Opportunities Fund

     1.35     2.10     1.05     1.64     1.35     1.05     1.05     0.95     0.95

 

  e)

Sales Charges and Distribution and Service Plan for Class A, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. For the year ended October 31, 2020, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

   Front-end
Sales Charges
     Contingent Deferred
Sales Charges
 

China A Fund

   $ 48      $  

Emerging Markets Equity Fund

     9,043        173  

Emerging Markets Multi-Sector Bond Fund

     1,403        238  

International Multi-Cap Value Fund

     174,204            2,757  

International Stock Fund

         406,599        2,634  

Securitized Income Fund

     13,131        1  

Tax-Aware Bond Fund

     191,447        7,999  

US MidCap Opportunities Fund

     127,205        3,861  

US Small Cap Opportunities Fund

     88,112        1,023  

The Board of Directors of the Company has approved the adoption of a separate distribution plan (each a “Plan”) pursuant to Rule 12b-1 under the 1940 Act for each of Class A, C, R3 and R4 shares. Under a Plan, Class A, Class C, Class R3 and Class R4 shares of a Fund, as applicable, bear distribution and/or service fees paid to HFD, some or all of which may be paid to select broker-dealers. Pursuant to the Class A Plan, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets attributable to Class A shares for distribution financing activities and shareholder account servicing activities. The entire amount of the fee may be used for shareholder servicing expenses and/or distribution expenses. Pursuant to the Class C Plan, a Fund may pay HFD a fee of up to 1.00% of the average daily net assets attributable to Class C shares for distribution financing activities, and up to 0.25% may be used for shareholder account servicing activities. The Class C Plan also provides that HFD will receive all contingent deferred sales charges attributable to Class C shares. Pursuant to the Class R3 Plan, a Fund may pay HFD a fee of up to 0.50% of the average daily net assets attributable to Class R3 shares for distribution financing activities, and up to 0.25% may be used for shareholder account servicing activities. Pursuant to the Class R4 Plan, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets attributable to Class R4 shares for distribution financing activities. The entire amount of the fee may be used for shareholder account servicing activities. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as the Company’s Board of Directors may determine. Any 12b-1 fees attributable to assets held in an account held directly with the Funds’ transfer agent for which there is not a third-party listed as the broker-dealer of record (or HFD does not otherwise have a payment obligation) are generally reimbursed to the applicable Fund. Such amounts are reflected as “Distribution fee reimbursements” on the Statement of Operations.

 

  f)

Other Related Party Transactions – Certain officers of the Company are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the year or period ended October 31, 2020, a portion of the Company’s Chief Compliance Officer’s (“CCO”) compensation was paid by all of the investment companies in the Hartford fund complex. The portion allocated to each Fund, as represented in other expenses on the Statements of Operations, is outlined in the table below.

 

Fund

   CCO Compensation
Paid by Fund
 

China A Fund

   $ 12  

Emerging Markets Equity Fund

         8,406  

Emerging Markets Multi-Sector Bond Fund

     146  

International Multi-Cap Value Fund

     4,215  

International Stock Fund

     1,511  

Securitized Income Fund

     159  

Tax-Aware Bond Fund

     890  

US MidCap Opportunities Fund

     1,615  

US Small Cap Opportunities Fund

     526  

 

 

  105  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. Each Fund pays HASCO a transfer agency fee payable monthly based on the lesser of (i) the costs of providing or overseeing transfer agency services provided to each share class of such Fund plus a target profit margin or (ii) a Specified Amount (as defined in the table below). Such fee is intended to compensate HASCO for: (i) fees payable by HASCO to DST Asset Manager Solutions, Inc. (“DST”) (and any other designated sub-agent) according to the agreed-upon fee schedule under the sub-transfer agency agreement between HASCO and DST (or between HASCO and any other designated sub-agent, as applicable); (ii) sub-transfer agency fees payable by HASCO to financial intermediaries, according to the agreed-upon terms between HASCO and the financial intermediaries, provided that such payments are within certain limits approved by the Company’s Board of Directors; (iii) certain expenses that HASCO’s parent company, Hartford Funds Management Group, Inc., allocates to HASCO that relate to HASCO’s transfer agency services provided to the Fund; and (iv) a target profit margin.

 

Share Class

   Specified Amount
(as a percentage

average daily

net assets)
 

Class A

     0.25

Class C

     0.25

Class I

     0.20

Class Y

     0.11

Class R3

     0.22

Class R4

     0.17

Class R5

     0.12

Class F

     0.004

Class SDR

     0.004

Effective February 28, 2020, HASCO has contractually agreed to waive and/or reimburse a portion of the transfer agency fees for Class Y shares of the International Multi-Cap Value Fund to the extent necessary to limit the transfer agency fees to 0.06% through February 28, 2021, unless the Board of Directors approves its earlier termination.

From November 1, 2019 to February 27, 2020, HASCO has contractually agreed to waive and/or reimburse a portion of the transfer agency fees for the share classes of the Funds listed below to the extent necessary to limit the transfer agency fees as follows:

 

Fund

   Class Y  

International Multi-Cap Value Fund

     0.05

US MidCap Opportunities Fund

     0.07

Pursuant to a sub-transfer agency agreement between HASCO and DST, HASCO has delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to DST. Each Fund does not pay any fee directly to DST; rather, HASCO makes all such payments to DST. The accrued amount shown in the Statements of Operations reflects the amounts charged by HASCO. These fees are accrued daily and paid monthly.

For the year ended October 31, 2020, the effective rate of compensation paid to HASCO for transfer agency services as a percentage of each Class’ average daily net assets is as follows:

 

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class Y     Class F     Class SDR  

China A Fund

     0.21     0.24     0.17     N/A       N/A       N/A       0.11     0.00 %*      0.00 %* 

Emerging Markets Equity Fund

     0.20     0.09     0.17     0.22     0.10     0.12     0.10     0.00 %*      0.00 %* 

Emerging Markets Multi-Sector Bond Fund

     0.18     0.25     0.07     0.22     0.17     0.12     0.01     0.00 %*      0.00 %* 

International Multi-Cap Value Fund

     0.12     0.11     0.10     0.22     0.17     0.10     0.06     0.00 %*      0.00 %* 

International Stock Fund

     0.12     0.10     0.08     0.21     0.15     0.08     0.07     0.00 %*      0.00 %* 

Securitized Income Fund

     0.01     0.24     0.06     N/A       N/A       N/A       0.01     0.00 %*      0.00 %* 

Tax-Aware Bond Fund

     0.06     0.09     0.08     N/A       N/A       N/A       0.11     0.00 %*      0.00 %* 

US MidCap Opportunities Fund

     0.12     0.11     0.09     0.22     0.17     0.12     0.10     0.00 %*      0.00 %* 

US Small Cap Opportunities Fund

     0.16     0.16     0.10     0.22     0.17     0.12     0.11     0.00 %*      0.00 %* 

 

  *

Amount rounds to 0.00%.

 

8.

Securities Lending:

The Company has entered into a securities lending agency agreement (“lending agreement”) with Citibank, N.A. (“Citibank”). A Fund may lend portfolio securities to certain borrowers in U.S. and non-U.S. markets in an amount not to exceed one-third (33 1/3%) of the value of its total assets. Each of China A Fund and Securitized Income Fund do not currently engage in securities lending. If a Fund security is on loan, under the lending agreement, the borrower is required to deposit cash or liquid securities as collateral at least equal to 100% of the market value of the loaned securities; and cash collateral is invested for the benefit of the Fund by the Fund’s lending agent pursuant to collateral investment guidelines. The collateral is marked to market daily, in an amount at least equal to the current market value of the securities loaned.

 

 

  106  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

A Fund is subject to certain risks while its securities are on loan, including the following: (i) the risk that the borrower defaults on the loan and the collateral is inadequate to cover the Fund’s loss; (ii) the risk that the earnings on the collateral invested are not sufficient to pay fees incurred in connection with the loan; (iii) the Fund could lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral; (iv) the risk that the borrower may use the loaned securities to cover a short sale, which may in turn place downward pressure on the market prices of the loaned securities; (v) the risk that return of loaned securities could be delayed and interfere with portfolio management decisions; and (vi) the risk that any efforts to restrict or recall the securities for purposes of voting may not be effective. These events could also trigger adverse tax consequences for the Fund.

The Funds retain loan fees and the interest on cash collateral investments but are required to pay the borrower a rebate for the use of cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers.

The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Investment Income from securities lending. The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Investment Income from dividends or interest, respectively, on the Statements of Operations.

The following table presents the market value of the Funds’ securities on loan, net of amounts available for offset under the master netting arrangements and any related collateral received by the Funds as of October 31, 2020.

 

Fund

   Investment Securities on Loan, at market value,
Presented on the Statements of Assets  and Liabilities(1)
     Collateral Posted by Borrower(2)     Net Amount(3)  

Emerging Markets Equity Fund

   $      $     $     —  

Emerging Markets Multi-Sector Bond Fund

     1,412,515        (1,412,515      

International Multi-Cap Value Fund

         33,127,841            (33,127,841      

International Stock Fund

     1,508,513        (1,508,513      

Tax-Aware Bond Fund

                   

US MidCap Opportunities Fund

     6,875,747        (6,875,747      

US Small Cap Opportunities Fund

     453,147        (453,147      

 

  (1)

It is each Fund’s policy to obtain additional collateral from, or return excess collateral to, the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than that required under the lending contract.

  (2) 

Collateral received in excess of the market value of securities on loan is not presented in this table.

  (3) 

Net amount represents the net amount receivable due from the counterparty in the event of default.

The total cash and non-cash collateral received by each Fund in connection with securities lending transactions is presented below:

 

Fund

   Cash
Collateral
     Non-Cash
Collateral
 

Emerging Markets Equity Fund

   $      $  

Emerging Markets Multi-Sector Bond Fund

     1,460,595         

International Multi-Cap Value Fund

         32,109,075            4,956,768  

International Stock Fund

     1,520,965         

Tax-Aware Bond Fund

             

US MidCap Opportunities Fund

     7,032,174         

US Small Cap Opportunities Fund

     468,760         

 

9.

Secured Borrowings:

The following tables reflect a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of October 31, 2020.

Certain Transfers Accounted For As Secured Borrowings

Remaining Contractual Maturity of the Agreements

 

     Overnight and
Continuous
     <30 days      Between
30 & 90 days
     >90 days      Total  
Emerging Markets Multi-Sector Bond Fund                                   

Securities Lending Transactions(1)

 

Corporate Bonds

   $ 1,082,814      $      $      $      $ 1,082,814  

Foreign Government Obligations

     377,781                             377,781  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $     1,460,595      $     —      $     —      $     —      $     1,460,595  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 1,460,595  
              

 

 

 

 

 

  107  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

     Overnight and
Continuous
     <30 days      Between
30 & 90 days
     >90 days      Total  
International Multi-Cap Value Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 32,109,075      $      $      $      $ 32,109,075  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 32,109,075      $      $      $      $ 32,109,075  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $     32,109,075  
              

 

 

 
International Stock Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 1,520,965      $      $      $      $ 1,520,965  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 1,520,965      $      $      $      $ 1,520,965  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 1,520,965  
              

 

 

 
Securitized Income Fund                                   

Reverse Repurchase Agreements

 

Asset & Commercial Mortgage-Backed Securities

   $      $ 14,309,996      $ 15,936,517      $      $ 30,246,513  

Corporate Bonds

            677,000                      677,000  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $      $     14,986,996      $     15,936,517      $      $ 30,923,513  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for sale buy-back transactions

 

   $ 30,923,513  
              

 

 

 
US MidCap Opportunities Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 7,032,174      $      $      $      $ 7,032,174  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 7,032,174      $      $      $      $ 7,032,174  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 7,032,174  
              

 

 

 
US Small Cap Opportunities Fund                                   

Securities Lending Transactions(1)

 

Common Stocks

   $ 468,760      $      $      $      $ 468,760  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Borrowings

   $ 468,760      $      $      $      $ 468,760  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Gross amount of recognized liabilities for securities lending transactions

 

   $ 468,760  
              

 

 

 

 

  (1) 

Amount represents the payable for cash collateral received on securities on loan. This will generally be in the “Overnight and Continuous” column as the securities are typically callable on demand.

 

10.

Affiliate Holdings:

As of October 31, 2020, affiliates of The Hartford had ownership of shares in each Fund as follows:

Percentage of a Class:

 

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class Y     Class F     Class SDR  

China A Fund

     41     84     82     N/A       N/A       N/A       100     100     %* 

Emerging Markets Equity Fund

                       16     %*                         

Emerging Markets Multi-Sector Bond Fund

                       37     100     100           100      

International Multi-Cap Value Fund

                       %*                               

International Stock Fund

                       2     1     %*      %*             

Securitized Income Fund

     64     2     5     N/A       N/A       N/A       100     100      

Tax-Aware Bond Fund

                       N/A       N/A       N/A       5            

US MidCap Opportunities Fund

                                   1                  

US Small Cap Opportunities Fund

                       5     6     4                  

Percentage of Fund by Class:

 

Fund

   Class A     Class C     Class I     Class R3     Class R4     Class R5     Class Y     Class F     Class SDR  

China A Fund

     2     2     2     N/A       N/A       N/A       2     41     %* 

Emerging Markets Equity Fund

                       %*      %*                         

Emerging Markets Multi-Sector Bond Fund

                       %*      %*      %*                   

International Multi-Cap Value Fund

                       %*                               

International Stock Fund

                       %*      %*      %*      %*             

Securitized Income Fund

     4     %*      4     N/A       N/A       N/A       4     2      

Tax-Aware Bond Fund

                       N/A       N/A       N/A       %*             

US MidCap Opportunities Fund

                                   %*                   

US Small Cap Opportunities Fund

                       %*      %*      %*                   

 

  *

Percentage rounds to zero.

 

 

  108  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

As of October 31, 2020, affiliated funds of funds and certain 529 plans for which HFMC serves as the program manager (the “529 plans”) in the aggregate owned a portion of the Funds identified below. Therefore, these Funds may experience relatively large purchases or redemptions of their shares from these affiliated funds of funds and the 529 plans. Affiliated funds of funds and the 529 plans owned shares in the Funds listed below as follows:

 

Funds

   Percentage
of Fund*
 

Emerging Markets Equity Fund

     1

International Multi-Cap Value Fund

     3

 

  *

As of October 31, 2020, the affiliated funds of funds were invested in Class F shares.

 

11.

Investment Transactions:

For the year ended October 31, 2020, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

Fund

   Cost of Purchases
Excluding U.S.
Government
Obligations
     Sales Proceeds
Excluding U.S.
Government
Obligations
     Cost of Purchases
For U.S.

Government
Obligations
     Sales Proceeds
For U.S.
Government
Obligations
     Total Cost of
Purchases
     Total Sales
Proceeds
 

China A Fund

   $ 8,305,275      $ 3,047,430      $      $      $ 8,305,275      $ 3,047,430  

Emerging Markets Equity Fund

         2,097,908,061            1,860,513,030                          2,097,908,061            1,860,513,030  

Emerging Markets Multi-Sector Bond Fund

     92,708,525        120,038,920                      92,708,525        120,038,920  

International Multi-Cap Value Fund

     2,223,399,513        2,252,032,721                      2,223,399,513        2,252,032,721  

International Stock Fund

     699,444,133        206,706,973                      699,444,133        206,706,973  

Securitized Income Fund

     85,962,416        53,303,513        17,680,261        17,141,835        103,642,677        70,445,348  

Tax-Aware Bond Fund

     443,930,300        365,038,762        341,691,930        322,318,020        785,622,230        687,356,782  

US MidCap Opportunities Fund

     384,328,192        594,398,382                      384,328,192        594,398,382  

US Small Cap Opportunities Fund

     137,331,958        99,587,509                      137,331,958        99,587,509  

 

12.

Capital Share Transactions:

The following information is for the year ended October 31, 2020, and the year ended October 31, 2019:

 

       For the Period Ended
October 31, 2020(1)
 
       Shares        Amount  
China A Fund  

Class A

 

Shares Sold

       24,506        $ 304,161  

Shares Redeemed

       (1        (10
    

 

 

      

 

 

 

Net Increase (Decrease)

       24,505          304,151  
    

 

 

      

 

 

 

Class C

 

Shares Sold

       11,860        $ 125,436  

Shares Redeemed

       (1        (10
    

 

 

      

 

 

 

Net Increase (Decrease)

       11,859          125,426  
    

 

 

      

 

 

 

Class I

 

Shares Sold

       30,549        $ 408,284  

Shares Redeemed

       (18,406        (269,695
    

 

 

      

 

 

 

Net Increase (Decrease)

       12,143          138,589  
    

 

 

      

 

 

 

Class Y

 

Shares Sold

       10,001        $ 100,010  

Shares Redeemed

       (1        (10
    

 

 

      

 

 

 

Net Increase (Decrease)

       10,000          100,000  
    

 

 

      

 

 

 

Class F

 

Shares Sold

       210,001        $ 2,100,010  

Shares Redeemed

       (1        (10
    

 

 

      

 

 

 

Net Increase (Decrease)

       210,000          2,100,000  
    

 

 

      

 

 

 

Class SDR

 

Shares Sold

       250,001        $ 2,500,010  

Shares Redeemed

       (1        (10
    

 

 

      

 

 

 

Net Increase (Decrease)

       250,000          2,500,000  
    

 

 

      

 

 

 

Total Net Increase (Decrease)

       518,507        $     5,268,166  
    

 

 

      

 

 

 

 

  (1)

Commenced operations on March 31, 2020.

 

 

  109  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Emerging Markets Equity Fund                                    

Class A

                   

Shares Sold

       1,951,438        $ 30,166,742          1,748,349        $ 25,903,979  

Shares Issued for Reinvested Dividends

       70,589          1,177,420          34,398          474,696  

Shares Redeemed

       (2,196,877        (34,272,320        (1,240,206        (18,680,319
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (174,850        (2,928,158        542,541          7,698,356  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       7,253        $ 113,752          351,995        $ 5,084,173  

Shares Issued for Reinvested Dividends

       8,192          135,012          3,391          46,251  

Shares Redeemed

       (273,764        (4,230,625        (196,969        (2,908,753
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (258,319        (3,981,861        158,417          2,221,671  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       62,234,607        $ 937,883,560          51,189,025        $ 762,162,282  

Shares Issued for Reinvested Dividends

       874,907          14,558,445          516,573          7,113,215  

Shares Redeemed

       (95,824,442            (1,429,672,320        (58,447,579            (871,528,570
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (32,714,928        (477,230,315        (6,741,981        (102,253,073
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       740        $ 11,570          834        $ 12,388  

Shares Issued for Reinvested Dividends

       84          1,392          57          787  

Shares Redeemed

       (971        (15,292        (2,050        (30,637
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (147        (2,330        (1,159        (17,462
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       278,404        $ 3,757,186          5,127        $ 71,225  

Shares Issued for Reinvested Dividends

       24          394          3,331          45,699  

Shares Redeemed

       (19,862        (316,545        (271,528        (3,755,502
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       258,566          3,441,035          (263,070        (3,638,578
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       6,643        $ 104,685          5,315        $ 79,902  

Shares Issued for Reinvested Dividends

       910          15,146          458          6,306  

Shares Redeemed

       (26,899        (439,527        (2,130        (32,680
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (19,346        (319,696        3,643          53,528  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       38,460,003        $ 583,444,406          11,244,782        $ 164,696,976  

Shares Issued for Reinvested Dividends

       196,853          3,277,595          117,355          1,617,151  

Shares Redeemed

       (16,978,392        (234,989,979        (12,480,644        (190,216,734
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       21,678,464          351,732,022          (1,118,507        (23,902,607
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       32,828,464        $ 535,113,218          22,780,248        $ 344,169,329  

Shares Issued for Reinvested Dividends

       445,955          7,416,236          181,969          2,503,890  

Shares Redeemed

       (9,898,445        (156,103,638        (7,350,035        (111,675,098
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       23,375,974          386,425,816          15,612,182          234,998,121  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

                   

Shares Sold

       15,360,330        $ 247,432,265          18,036,150        $ 267,392,203  

Shares Issued for Reinvested Dividends

       1,559,446          25,980,378          906,907          12,506,249  

Shares Redeemed

       (12,685,174        (189,012,307        (13,526,435        (208,708,307
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       4,234,602          84,400,336          5,416,622          71,190,145  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       16,380,016        $ 341,536,849          13,608,688        $ 186,350,101  
    

 

 

      

 

 

      

 

 

      

 

 

 
Emerging Markets Multi-Sector Bond Fund                                    

Class A

                   

Shares Sold

       74,672        $ 618,886          148,243        $ 1,360,898  

Shares Issued for Reinvested Dividends

       9,815          78,407          13,866          124,253  

Shares Redeemed

       (75,075        (615,139        (347,011        (3,150,553
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       9,412          82,154          (184,902        (1,665,402
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       3,580        $ 31,316          23,237        $ 209,450  

Shares Issued for Reinvested Dividends

       1,233          9,773          944          8,404  

Shares Redeemed

       (7,896        (69,036        (42,187        (373,516
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (3,083        (27,947        (18,006        (155,662
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  110  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Emerging Markets Multi-Sector Bond Fund – (continued)                                    

Class I

                   

Shares Sold

       1,645,820        $ 12,948,623          1,631,596        $ 14,785,602  

Shares Issued for Reinvested Dividends

       160,130          1,284,545          191,328          1,715,191  

Shares Redeemed

       (2,486,187        (20,380,676        (2,722,831        (24,420,037
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (680,237        (6,147,508        (899,907        (7,919,244
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       2,121        $ 19,070                 $  

Shares Issued for Reinvested Dividends

       158          1,249          65          584  

Shares Redeemed

       (2        (20                  
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       2,277          20,299          65          584  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Issued for Reinvested Dividends

       73          580          65          585  
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       73          580          65          585  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Issued for Reinvested Dividends

       74          587          66          597  
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       74          587          66          597  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       50,335        $ 433,573          117,019        $ 1,054,550  

Shares Issued for Reinvested Dividends

       15,666          125,165          9,722          87,222  

Shares Redeemed

       (1,300        (9,222        (12,487        (112,135
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       64,701          549,516          114,254          1,029,637  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       33,302        $ 300,908          127,336        $ 1,139,433  

Shares Issued for Reinvested Dividends

       20,620          185,754          170,007          1,520,919  

Shares Redeemed

       (2,588,818        (22,892,216        (1,045,807        (9,496,407
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,534,896        (22,405,554        (748,464        (6,836,055
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

                   

Shares Sold

       84,913        $ 734,256          138,869        $ 1,262,856  

Shares Issued for Reinvested Dividends

       241,781          1,930,500          224,846          2,015,875  

Shares Redeemed

       (196,044        (1,641,958        (254,804        (2,323,167
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       130,650          1,022,798          108,911          955,564  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (3,011,029      $ (26,905,075        (1,627,918      $ (14,589,396
    

 

 

      

 

 

      

 

 

      

 

 

 
International Multi-Cap Value Fund                                    

Class A

                   

Shares Sold

       2,803,699        $ 23,129,829          7,308,958        $ 64,185,746  

Shares Issued for Reinvested Dividends

       289,911          2,459,995          497,126          4,232,125  

Shares Redeemed

       (6,470,234        (51,893,152        (3,535,202        (30,710,971
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (3,376,624        (26,303,328        4,270,882          37,706,900  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       324,556        $ 2,741,385          804,534        $ 6,997,228  

Shares Issued for Reinvested Dividends

       36,931          323,041          130,672          1,092,114  

Shares Redeemed

       (1,107,190        (9,046,175        (1,419,956        (12,228,675
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (745,703        (5,981,749        (484,750        (4,139,333
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       32,274,441        $ 263,656,289          43,206,748        $ 376,911,502  

Shares Issued for Reinvested Dividends

       1,997,972          16,815,231          4,390,363          37,179,961  

Shares Redeemed

       (46,737,444        (366,171,373        (63,378,109        (552,346,795
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (12,465,031        (85,699,853        (15,780,998        (138,255,332
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       533,231        $ 4,354,149          2,630,986        $ 23,971,443  

Shares Issued for Reinvested Dividends

       43,227          369,526          35,113          308,551  

Shares Redeemed

       (1,034,516        (7,910,074        (544,310        (4,758,882
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (458,058        (3,186,399        2,121,789          19,521,112  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       64,552        $ 497,841          224,145        $ 1,920,458  

Shares Issued for Reinvested Dividends

       8,123          68,291          11,262          96,105  

Shares Redeemed

       (75,981        (596,629        (77,906        (674,128
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (3,306        (30,497        157,501          1,342,435  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  111  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
International Multi-Cap Value Fund – (continued)                                    

Class R5

                   

Shares Sold

       545,218        $ 4,339,616          963,121        $ 8,283,064  

Shares Issued for Reinvested Dividends

       68,186          570,494          143,439          1,208,180  

Shares Redeemed

       (769,515        (6,216,129        (1,265,541        (11,362,022
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (156,111        (1,306,019        (158,981        (1,870,778
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       8,488,795        $ 66,739,293          8,747,939        $ 76,763,544  

Shares Issued for Reinvested Dividends

       525,988          4,368,637          747,314          6,345,975  

Shares Redeemed

       (3,913,403        (30,436,867        (2,324,975        (20,118,934
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       5,101,380          40,671,063          7,170,278          62,990,585  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       18,264,798        $ 141,630,520          21,330,908        $ 187,800,399  

Shares Issued for Reinvested Dividends

       1,036,549          8,642,893          1,474,000          12,537,678  

Shares Redeemed

       (14,852,644        (118,345,910        (9,215,134        (81,327,657
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       4,448,703          31,927,503          13,589,774          119,010,420  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

                   

Shares Sold

       37,557,550        $ 291,819,327          20,897,933        $ 182,523,290  

Shares Issued for Reinvested Dividends

       2,074,664          17,328,997          3,624,947          30,712,905  

Shares Redeemed

       (35,442,799        (290,678,391        (14,513,700        (127,544,493
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       4,189,415          18,469,933          10,009,180          85,691,702  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (3,465,335      $ (31,439,346        20,894,675        $ 181,997,711  
    

 

 

      

 

 

      

 

 

      

 

 

 
International Stock Fund                                    

Class A

                   

Shares Sold

       5,577,386        $ 75,874,561          3,129,557        $ 38,300,055  

Shares Issued for Reinvested Dividends

       39,981          548,940          98,255          1,103,348  

Shares Redeemed

       (1,136,723        (15,107,254        (546,692        (6,612,696
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       4,480,644          61,316,247          2,681,120          32,790,707  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       269,016        $ 3,489,435          266,133        $ 2,980,258  

Shares Issued for Reinvested Dividends

       835          10,939          14,715          157,415  

Shares Redeemed

       (59,927        (722,473        (145,940        (1,679,330
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       209,924          2,777,901          134,908          1,458,343  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       28,960,331        $ 372,494,734          11,742,900        $ 136,541,482  

Shares Issued for Reinvested Dividends

       203,818          2,706,694          905,219          9,832,890  

Shares Redeemed

       (8,951,030        (109,417,598        (5,895,649        (69,641,488
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       20,213,119          265,783,830          6,752,470          76,732,884  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       44,105        $ 484,380          14,183        $ 169,465  

Shares Issued for Reinvested Dividends

       152          2,018          82          886  

Shares Redeemed

       (5,601        (71,632        (3        (35
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       38,656          414,766          14,262          170,316  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       205,916        $ 2,649,316          22,719        $ 274,429  

Shares Issued for Reinvested Dividends

       269          3,576          82          890  

Shares Redeemed

       (44,021        (566,181        (402        (4,890
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       162,164          2,086,711          22,399          270,429  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       844,651        $ 10,244,540          85,870        $ 1,027,962  

Shares Issued for Reinvested Dividends

       1,644          21,848          83          901  

Shares Redeemed

       (41,811        (545,593        (1,710        (20,330
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       804,484          9,720,795          84,243          1,008,533  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       4,875,805        $ 68,074,361          94,385        $ 1,101,980  

Shares Issued for Reinvested Dividends

       953          12,698          38,210          416,560  

Shares Redeemed

       (78,087        (1,012,281        (548,604        (6,406,752
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       4,798,671          67,074,778          (416,009        (4,888,212
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  112  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
International Stock Fund – (continued)                                    

Class F

                   

Shares Sold

       8,417,664        $ 110,434,434          5,309,055        $ 62,969,906  

Shares Issued for Reinvested Dividends

       77,909          1,036,195          91,563          995,486  

Shares Redeemed

       (1,765,969        (22,190,196        (547,580        (6,552,705
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       6,729,604          89,280,433          4,853,038          57,412,687  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

                   

Shares Sold

       5,469,722        $ 70,802,425          2,010,707        $ 24,337,603  

Shares Issued for Reinvested Dividends

       72,052          957,577          482,543          5,246,663  

Shares Redeemed

       (3,650,626        (47,306,305        (15,335        (183,930
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       1,891,148          24,453,697          2,477,915          29,400,336  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       39,328,414        $ 522,909,158          16,604,346        $ 194,356,023  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

       For the Year Ended
October 31, 2020
       For the Period Ended
October 31, 2019(1)
 
       Shares        Amount        Shares        Amount  
Securitized Income Fund                                    

Class A

                   

Shares Sold

       223,922        $ 2,163,016          350,007        $ 3,500,072  

Shares Issued for Reinvested Dividends

       9,226          89,718          5,008          50,265  

Shares Redeemed

       (21,058        (203,567        (1        (10
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       212,090          2,049,167          355,014          3,550,327  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C(2)

                   

Shares Sold

       45,049        $ 419,720                 $  

Shares Issued for Reinvested Dividends

       181          1,709                    
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       45,230          421,429                    
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

 

Shares Sold

       7,995,486        $ 77,608,778          455,638        $ 4,560,915  

Shares Issued for Reinvested Dividends

       75,068          720,669          6,086          61,092  

Shares Redeemed

       (1,829,000        (17,600,511        (1,058        (10,642
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       6,241,554          60,728,936          460,666          4,611,365  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

 

Shares Sold

              $          350,994        $ 3,510,010  

Shares Issued for Reinvested Dividends

       8,517          82,781          5,339          53,578  

Shares Redeemed

                         (1        (10
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       8,517          82,781          356,332          3,563,578  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

 

Shares Sold

              $          249,951        $ 2,500,010  

Shares Issued for Reinvested Dividends

       4,889          47,466          3,112          31,230  

Shares Redeemed

       (49,950        (473,832        (1        (10
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (45,061        (426,366        253,062          2,531,230  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

 

Shares Sold

       1,764,121        $ 17,560,558          7,968,817        $ 80,000,010  

Shares Issued for Reinvested Dividends

       50,038          497,414          49,337          495,681  

Shares Redeemed

       (8,125,902        (80,147,825        (1        (10
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (6,311,743        (62,089,853        8,018,153          80,495,681  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       150,587        $ 766,094          9,443,227        $ 94,752,181  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

  (1) 

Commenced operations on February 28, 2019.

 

  (2) 

Class C of the Securitized Income Fund commenced operations on February 28, 2020

 

 

  113  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
Tax-Aware Bond Fund                                    

Class A

                   

Shares Sold

       2,723,410        $ 30,536,275          2,534,913        $ 28,415,810  

Shares Issued for Reinvested Dividends

       129,314          1,446,053          68,930          755,814  

Shares Redeemed

       (1,098,300        (12,306,927        (1,777,407        (19,673,697
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       1,754,424          19,675,401          826,436          9,497,927  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       228,661        $ 2,567,436          325,219        $ 3,637,524  

Shares Issued for Reinvested Dividends

       19,583          217,827          11,164          121,750  

Shares Redeemed

       (181,060        (2,039,469        (92,411        (1,017,093
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       67,184          745,794          243,972          2,742,181  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       18,128,116        $ 204,446,822          12,356,423        $ 138,106,462  

Shares Issued for Reinvested Dividends

       598,224          6,698,427          330,094          3,631,801  

Shares Redeemed

       (12,453,205        (139,682,475        (5,474,602        (60,553,758
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       6,273,135          71,462,774          7,211,915          81,184,505  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Issued for Reinvested Dividends

       671          7,512          646          7,078  

Shares Redeemed

                (3        (2,710        (30,000
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       671          7,509          (2,064        (22,922
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       1,631,466        $ 18,408,527          1,168,928        $ 13,046,366  

Shares Issued for Reinvested Dividends

       83,707          938,185          37,053          408,408  

Shares Redeemed

       (635,600        (7,140,624        (207,705        (2,288,445
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       1,079,573          12,206,088          998,276          11,166,329  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

                   

Shares Sold

       679,071        $ 7,715,862          276,460        $ 3,039,087  

Shares Issued for Reinvested Dividends

       133,183          1,484,930          105,304          1,144,983  

Shares Redeemed

       (688,386        (7,803,953        (678,010        (7,609,000
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       123,868          1,396,839          (296,246        (3,424,930
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       9,298,855        $     105,494,405          8,982,289        $     101,143,090  
    

 

 

      

 

 

      

 

 

      

 

 

 
US MidCap Opportunities Fund                                    

Class A

                   

Shares Sold

       1,295,034        $ 17,576,606          1,395,369        $ 18,900,433  

Shares Issued for Reinvested Dividends

       39,994          614,359          148,492          1,869,520  

Shares Redeemed

       (2,290,621        (31,642,314        (2,745,633        (37,795,392
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (955,593        (13,451,349        (1,201,772        (17,025,439
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       334,429        $ 4,807,929          724,496        $ 10,067,884  

Shares Issued for Reinvested Dividends

       25,799          401,177          101,881          1,309,177  

Shares Redeemed

       (1,332,162        (19,041,400        (1,670,142        (23,612,797
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (971,934        (13,832,294        (843,765        (12,235,736
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       6,013,572        $ 86,511,259          12,387,001        $ 176,704,549  

Shares Issued for Reinvested Dividends

       265,164          4,268,155          886,035          11,590,976  

Shares Redeemed

       (14,836,185        (214,488,799        (27,060,730        (392,868,620
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (8,557,449        (123,709,385        (13,787,694        (204,573,095
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       14,647        $ 200,693          58,724        $ 792,137  

Shares Issued for Reinvested Dividends

       565          8,911          1,446          18,758  

Shares Redeemed

       (42,185        (637,892        (35,308        (518,682
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (26,973        (428,288        24,862          292,213  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       15,518        $ 239,097          18,328        $ 258,881  

Shares Issued for Reinvested Dividends

       259          4,116          1,456          18,966  

Shares Redeemed

       (18,555        (269,708        (34,076        (503,214
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,778        (26,495        (14,292        (225,367
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  114  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
US MidCap Opportunities Fund – (continued)                                    

Class R5

                   

Shares Sold

       14,557        $ 204,228          116,843        $ 1,683,332  

Shares Issued for Reinvested Dividends

       830          13,318          4,025          52,582  

Shares Redeemed

       (28,943        (444,803        (157,215        (2,369,735
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (13,556        (227,257        (36,347        (633,821
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       2,006,363        $ 27,085,522          2,387,698        $ 34,734,049  

Shares Issued for Reinvested Dividends

       76,744          1,235,384          187,871          2,455,282  

Shares Redeemed

       (4,434,892        (63,212,927        (2,747,706        (40,197,854
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,351,785        (34,892,021        (172,137        (3,008,523
    

 

 

      

 

 

      

 

 

      

 

 

 

Class F

                   

Shares Sold

       1,381,323        $ 19,610,748          1,858,107        $ 26,939,675  

Shares Issued for Reinvested Dividends

       36,082          581,769          82,249          1,075,457  

Shares Redeemed

       (1,275,220        (18,368,516        (1,616,038        (23,787,613
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       142,185          1,824,001          324,318          4,227,519  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

                   

Shares Sold

       623,631        $ 9,238,983          2,459,704        $ 35,321,321  

Shares Issued for Reinvested Dividends

       51,452          830,635          103,292          1,352,705  

Shares Redeemed

       (3,456,941        (55,712,445        (1,347,036        (19,870,606
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (2,781,858        (45,642,827        1,215,960          16,803,420  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       (15,519,741      $     (230,385,915        (14,490,867      $     (216,378,829
    

 

 

      

 

 

      

 

 

      

 

 

 
US Small Cap Opportunities Fund         

Class A

                   

Shares Sold

       464,472        $ 10,513,320          351,863        $ 8,393,071  

Shares Issued for Reinvested Dividends

       44,207          1,122,066          59,679          1,269,289  

Shares Redeemed

       (293,039        (6,419,169        (144,087        (3,490,218
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       215,640          5,216,217          267,455          6,172,142  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class C

                   

Shares Sold

       96,832        $ 2,425,589          87,016        $ 2,119,060  

Shares Issued for Reinvested Dividends

       14,029          363,339          28,097          613,652  

Shares Redeemed

       (85,890        (1,926,037        (107,604        (2,622,739
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       24,971          862,891          7,509          109,973  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class I

                   

Shares Sold

       3,443,438        $ 83,623,348          1,715,671        $ 43,830,966  

Shares Issued for Reinvested Dividends

       267,211          7,158,748          409,497          9,144,178  

Shares Redeemed

       (2,972,119        (67,833,627        (1,046,256        (25,702,015
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       738,530          22,948,469          1,078,912          27,273,129  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R3

                   

Shares Sold

       9,177        $ 223,702          4,254        $ 102,890  

Shares Issued for Reinvested Dividends

       187          4,953          275          6,097  

Shares Redeemed

       (3,484        (85,582        (2,869        (73,330
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       5,880          143,073          1,660          35,657  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R4

                   

Shares Sold

       2,691        $ 67,760          10,994        $ 283,414  

Shares Issued for Reinvested Dividends

       495          13,210          42          928  

Shares Redeemed

       (4,857        (129,117        (1,814        (46,278
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       (1,671        (48,147        9,222          238,064  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class R5

                   

Shares Sold

       9,115        $ 215,817          2,106        $ 55,043  

Shares Issued for Reinvested Dividends

       170          4,561          76          1,691  

Shares Redeemed

       (193        (4,710        (5        (134
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       9,092          215,668          2,177          56,600  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class Y

                   

Shares Sold

       174,823        $ 4,133,695          128,832        $ 3,308,681  

Shares Issued for Reinvested Dividends

       48,634          1,302,907          91,347          2,040,823  

Shares Redeemed

       (219,884        (5,234,892        (140,942        (3,619,163
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       3,573          201,710          79,237          1,730,341  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

 

  115  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

       For the Year Ended
October 31, 2020
       For the Year Ended
October 31, 2019
 
       Shares        Amount        Shares        Amount  
US Small Cap Opportunities Fund – (continued)         

Class F

                   

Shares Sold

       366,918        $ 8,709,292          83,264        $ 2,135,611  

Shares Issued for Reinvested Dividends

       8,742          234,558          9,328          208,483  

Shares Redeemed

       (116,641        (2,581,035        (32,939        (819,850
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       259,019          6,362,815          59,653          1,524,244  
    

 

 

      

 

 

      

 

 

      

 

 

 

Class SDR

                   

Shares Sold

       714,406        $ 15,697,346          7,073        $ 183,767  

Shares Issued for Reinvested Dividends

       21,587          579,811          42,875          959,593  

Shares Redeemed

       (194,734        (4,709,065        (40,314        (938,014
    

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase (Decrease)

       541,259          11,568,092          9,634          205,346  
    

 

 

      

 

 

      

 

 

      

 

 

 

Total Net Increase (Decrease)

       1,796,293        $ 47,470,788          1,515,459        $ 37,345,496  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

13.

Line of Credit:

Each Fund participates in a committed line of credit pursuant to a credit agreement dated March 5, 2020. Each Fund may borrow under the line of credit for temporary or emergency purposes. The Funds (together with certain other Hartford Funds) may borrow up to $350 million in the aggregate, subject to asset coverage and other limitations specified in the credit agreement. The interest rate on borrowings varies depending on the nature of the loan. The facility also charges a commitment fee, which is allocated ratably by assets based on a Fund’s actual net assets if the Fund has total assets of less than or equal to $1.05 billion and for all other participating funds, based on the notional asset level of $1.05 billion. During and as of the year ended October 31, 2020, none of the Funds had borrowings under this facility.

 

14.

Indemnifications:

Under the Company’s organizational documents, the Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation Law and federal securities laws. In addition, the Company, on behalf of each Fund, may enter into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

15.

Recent Accounting Pronouncement:

Upon initial adoption, the impacted Funds adjusted the cost of their callable debt securities by the cumulative amount of amortization that would have been recognized had the amortization period initially extended only to the earliest call date, with a corresponding reclassification between interest income and net realized gain (loss) on investments or net unrealized appreciation (depreciation) of investments in the Statements of Operations. The adoption of the ASU does not affect the impacted Funds’ net asset values and the cumulative effect to the impacted Funds resulting from the adoption of amending the amortization period to the earliest call date for callable debt securities is as follows:

 

           For the Year Ended October 31, 2020  

Funds

   Cost of Investments
As of
November 1, 2019
    Interest
Income
    Net Unrealized
Appreciation
(Depreciation)
of Investments
    Net Realized
Gains (Loss)
on Investments
    Distributable
Earnings
 

Emerging Market Multi-Sector Bond Fund

   $     (4,259   $     (3,365   $     (1,444   $     4,809     $     4,259  

Tax-Aware Bond Fund

     59,158       49,176       (8,391     (40,785     (59,158

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The update introduces new fair value disclosure requirements, eliminates some prior fair value disclosure requirements, and modifies certain existing fair value disclosure requirements.

ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management has adopted this guidance and it did not have a material impact on the Funds’ financial statements.

In March 2020, FASB issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The guidance is applicable to contracts referencing LIBOR or another reference rate that is expected to be discontinued due to reference rate reform. The ASU is effective as of March 12, 2020 and generally can be applied through December 31, 2022. Management is evaluating the underlying securities referencing LIBOR or another reference rate that is expected to be discontinued over the period of time the ASU is effective.

 

 

  116  

 


Hartford Schroders Funds

Notes to Financial Statements – (continued)

October 31, 2020

 

 

 

16.

Change in Independent Registered Public Accounting Firm:

On November 6, 2019, the Company, on behalf of each of Emerging Markets Equity Fund, Emerging Markets Multi-Sector Bond Fund, International Multi-Cap Value Fund, International Stock Fund, Securitized Income Fund, Tax-Aware Bond Fund, US MidCap Opportunities Fund and US Small Cap Opportunities Fund, dismissed Ernst and Young LLP (“EY”) as the Funds’ independent registered public accounting firm effective upon the issuance of EY’s report on the Funds’ financial statements as of and for the fiscal year ended October 31, 2019. EY’s report on the Funds’ financial statements for the fiscal periods ended October 31, 2018 and October 31, 2019 contained no adverse opinion or disclaimer of opinion nor was EY’s report qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal year ended on October 31, 2018 and October 31, 2019, and through December 30, 2019 (the “Covered Period”), (i) there were no disagreements with EY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of EY, would have caused it to make reference to the subject matter of the disagreements in connection with its reports on the Funds’ financial statements for the Covered Period, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.

On November 6, 2019, the Audit Committee of the Company’s Board of Directors participated in and approved the decision to engage PricewaterhouseCoopers LLP (“PwC”) as the independent registered public accounting firm for each of Emerging Markets Equity Fund, Emerging Markets Multi-Sector Bond Fund, International Multi-Cap Value Fund, International Stock Fund, Securitized Income Fund, Tax-Aware Bond Fund, US MidCap Opportunities Fund and US Small Cap Opportunities Fund for the fiscal year ended October 31, 2020. The selection of PwC does not reflect any disagreements with or dissatisfaction by the Company or the Board of Directors with the performance of the Funds’ prior independent registered public accounting firm, EY. During the Covered Period, neither the Funds, nor anyone on their behalf, consulted with PwC on items which: (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(v) of Item 304 of Regulation S-K). PwC has also been appointed to serve as the independent registered public accounting firm for the China A Fund for the fiscal year ended October 31, 2020.

 

17.

Subsequent Events:

In connection with the preparation of the financial statements of the Funds as of and for the year or period ended October 31, 2020, events and transactions subsequent to October 31, 2020, through the date the financial statements were issued have been evaluated by the Funds’ management for possible adjustment and/or disclosure.

In November 2020, the President of the United States issued an Executive Order (the “Order”) to prohibit, among others, any transaction by any U.S. person in publicly traded securities of certain companies determined to be affiliated with China’s military. The Order, which takes effect on January 11, 2021, is intended to prevent China from exploiting U.S. investors to finance the development and modernization of its military. Such securities may be subject to increased volatility risk and liquidity risk.

 

 

  117  

 


Report of Independent Registered Public Accounting Firm

To the Board of Directors of

The Hartford Mutual Funds II, Inc. and Shareholders of Hartford Schroders China A Fund, Hartford Schroders Emerging Markets Equity Fund, Hartford Schroders Emerging Markets Multi-Sector Bond Fund, Hartford Schroders International Multi-Cap Value Fund, Hartford Schroders International Stock Fund, Hartford Schroders Securitized Income Fund, Hartford Schroders Tax-Aware Bond Fund, Hartford Schroders US MidCap Opportunities Fund and Hartford Schroders US Small Cap Opportunities Fund

 

 

 

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds indicated in the table below (nine of the funds constituting The Hartford Mutual Funds II, Inc., hereafter collectively referred to as the “Funds”) as of October 31, 2020, the related statements of operations, changes in net assets and cash flows for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2020, the results of each of their operations, the changes in each of their net assets, each of their cash flows, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

 

Fund Name
Hartford Schroders China A Fund(2)
Hartford Schroders Emerging Markets Equity Fund(1)
Hartford Schroders Emerging Markets Multi-Sector Bond Fund(1)
Hartford Schroders International Multi-Cap Value Fund(1)
Hartford Schroders International Stock Fund(1)
Hartford Schroders Securitized Income Fund(3)
Hartford Schroders Tax-Aware Bond Fund(1)
Hartford Schroders US MidCap Opportunities Fund(1)
Hartford Schroders US Small Cap Opportunities Fund(1)

(1)   Statement of operations, statement of changes in net assets and financial highlights for the year ended October 31, 2020.

(2)   Statement of operations, statement of changes in net assets and financial highlights for the period March 31, 2020 (commencement of operations) through October 31, 2020.

(3)   Statements of operations, changes in net assets and cash flows for the year ended October 31, 2020 and financial highlights for the year ended October 31, 2020 and the period February 28, 2020 (commencement of operations) through October 31, 2020.

The financial statements of Hartford Schroders Emerging Markets Equity Fund, Hartford Schroders Emerging Markets Multi-Sector Bond Fund, Hartford Schroders International Multi-Cap Value Fund, Hartford Schroders International Stock Fund, Hartford Schroders Securitized Income Fund, Hartford Schroders Tax-Aware Bond Fund, Hartford Schroders US MidCap Opportunities Fund and Hartford Schroders US Small Cap Opportunities Fund as of and for the year ended October 31, 2019 and the financial highlights for each of the periods ended on or prior to October 31, 2019 (not presented herein, other than the statements of changes in net assets and financial highlights) were audited by other auditors whose report dated December 30, 2019 expressed an unqualified opinion on those financial statements and financial highlights.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

December 29, 2020

We have served as the auditor of one or more Hartford Funds investment companies since 2020.

 

 

  118  

 


Hartford Schroders Funds

Operation of the Liquidity Risk Management Program (Unaudited)

 

 

 

This section describes the operation and effectiveness of the Liquidity Risk Management Program (“LRM Program”) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The LRM Program seeks to assess and manage each Fund’s liquidity risk. The Liquidity Rule generally defines liquidity risk as the risk that a Fund could not meet its obligation to redeem shares without significant dilution of the non-redeeming investors’ interests in the Fund. The Board of Directors (“Board”) of The Hartford Mutual Funds II, Inc. has appointed Hartford Funds Management Company, LLC (“HFMC”) to serve as the administrator of the LRM Program with respect to each of the Funds, subject to the oversight of the Board. In order to efficiently and effectively administer the LRM Program, HFMC established a Liquidity Risk Oversight Committee.

The LRM Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the assessment and periodic review (no less frequently than annually) of certain factors that influence each Fund’s liquidity risk; (2) the classification and periodic review (no less frequently than monthly) of each Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) the determination of a minimum percentage of each Fund’s assets that generally will be invested in highly liquid investments (“HLIM”); (5) the periodic review (no less frequently than annually) of the HLIM and the adoption and implementation of policies and procedures for responding to a shortfall of a Fund’s highly liquid investments below its HLIM; and (6) periodic reporting to the Board.

At a meeting of the Board held May 5-6, 2020, HFMC provided an annual written report to the Board covering the period from the inception date of the current LRM Program through April 30, 2020. The annual report addressed important aspects of the LRM Program, including, but not limited to:

 

 

the operation of the LRM Program (and related policies and procedures utilized in connection with management of the Funds’ liquidity risk);

 

 

an assessment of the adequacy and effectiveness of the LRM Program’s (and related policies and procedures’) implementation;

 

 

the operation, and assessment of the adequacy and effectiveness, of each Fund’s HLIM;

 

 

whether the third-party liquidity vendor’s (“LRM Program Vendor”) processes for determining preliminary liquidity classifications, including the particular methodologies or factors used and metrics analyzed by the LRM Program Vendor, are sufficient under the Liquidity Rule and appropriate in light of each Fund’s specific circumstances; and

 

 

any material changes to the LRM Program.

In addition, HFMC provides a quarterly report on the LRM Program at each quarterly meeting of the Board’s Compliance and Risk Oversight Committee. The quarterly report included information regarding the Funds’ liquidity as measured by established parameters, a summary of developments within the capital markets that may impact liquidity, and other factors that may impact liquidity. Among other things, HFMC reports any changes to a Fund’s HLIM.

Since the inception of the LRM Program, HFMC has not reduced the HLIM for any Fund. HFMC reported that it has increased the HLIM for Hartford Schroders Securitized Income Fund and Hartford Schroders Tax-Aware Bond Fund, and discussed its rationale for the changes.

Based on its review and assessment, HFMC has concluded that the LRM Program is operating effectively to assess and manage the liquidity risk of each Fund and that the LRM Program has been and continues to be adequately and effectively implemented with respect to each Fund. Because liquidity in the capital markets in which the Funds invest is beyond the control of the Funds, there can be no assurance that the LRM Program will ensure liquidity under all circumstances and does not protect against the risk of loss.

 

 

  119  

 


Hartford Schroders Funds

Directors and Officers of the Company (Unaudited)

 

 

 

The Hartford Mutual Funds II, Inc. (the “Company”) is governed by a Board of Directors (the “Directors”). The following tables present certain information regarding the Directors and officers of the Company as of October 31, 2020. For more information regarding the Directors and officers, please refer to the Statement of Additional Information, which is available, without charge, upon request by calling 1-888-843-7824.

 

NAME, YEAR OF BIRTH

AND ADDRESS(1)

  

POSITION
HELD WITH
THE COMPANY

 

TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED

 

PRINCIPAL OCCUPATION(S)

DURING PAST 5 YEARS

  NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR
  

OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR

NON-INTERESTED DIRECTORS*

HILARY E. ACKERMANN

(1956)

   Director   Since 2014   Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011.   73    Ms. Ackermann served as a Director of Dynegy, Inc. from October 2012 until its acquisition in by Vistra Energy Corporation in 2018, and since that time she has served as a Director of Vistra. Ms. Ackermann serves as a Director of Credit Suisse Holdings (USA), Inc. from January 2017 to present.

ROBIN C. BEERY

(1967)

   Director   Since 2017   Ms. Beery has served as a consultant to ArrowMark Partners (an alternative asset manager) since March of 2015 and since November 2018 has been employed by ArrowMark Partners as a Senior Advisor. Previously, she was Executive Vice President, Head of Distribution, for Janus Capital Group, and Chief Executive Officer and President of the Janus Mutual Funds (a global asset manager) from September 2009 to August 2014.   73    Ms. Beery serves as an Independent Director of UMB Financial Corporation (January 2015 to present), has chaired the Compensation Committee since April 2017, and serves on the Audit Committee and the Risk Committee.

LYNN S. BIRDSONG

(1946)

   Director and Chair of the Board   Director since 2003; Chair of the Board since 2019   From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm. From 1979 to 2002, Mr. Birdsong was a Managing Director of Zurich Scudder Investments, an investment management firm.   73    None

CHRISTINE R. DETRICK

(1958)

   Director   Since 2016   Ms. Detrick served as a Senior Partner/Advisor at Bain & Company (a management consulting firm) from September 2002 to December 2012.   73    Ms. Detrick serves as a Director and Chair of the Nominating and Governance Committee of Reinsurance Group of America (from January 2014 to present). She also serves as a Director of Charles River Associates (May 2020 to present).

DUANE E. HILL(4)

(1945)

   Director   Since 2002   Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.   73    None

LEMMA W. SENBET

(1946)

   Director   Since 2005   Dr. Senbet currently serves as the William E. Mayer Chair Professor of Finance, in the Robert H. Smith School of Business at the University of Maryland, where he was chair of the Finance Department from 1998 to 2006. In June 2013, he began a sabbatical from the University to serve as Executive Director of the African Economic Research Consortium which focuses on economic policy research and training, which he completed in 2018.   73    None

DAVID SUNG

(1953)

   Director   Since 2017   Mr. Sung was a Partner at Ernst & Young LLP from October 1995 to July 2014.   73    Mr. Sung serves as a Trustee of Ironwood Institutional Multi-Strategy Fund, LLC and Ironwood Multi-Strategy Fund, LLC (October 2015 to present).

 

 

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Hartford Schroders Funds

Directors and Officers of the Company (Unaudited) – (continued)

 

 

 

NAME, YEAR OF BIRTH

AND ADDRESS(1)

  

POSITION
HELD WITH
THE COMPANY

 

TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED

 

PRINCIPAL OCCUPATION(S)

DURING PAST 5 YEARS

  NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR
  

OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR

OFFICERS AND INTERESTED DIRECTORS

JAMES E. DAVEY(5)

(1964)

   Director, President and Chief Executive Officer   President and Chief Executive Officer since 2010; Director since 2012   Mr. Davey serves as Executive Vice President of The Hartford Financial Services Group, Inc. Mr. Davey has served in various positions within The Hartford and its subsidiaries and joined The Hartford in 2002. Additionally, Mr. Davey serves as Director, Chairman, President, and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey also serves as President, Manager, Chairman of the Board, and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”); Manager, Chairman of the Board, and President of Lattice Strategies LLC (“Lattice”); Chairman of the Board, Manager, and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”); and Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”), each of which is an affiliate of HFMG.   73    None

ANDREW S. DECKER

(1963)

   AML Compliance Officer   Since 2015   Mr. Decker serves as Chief Compliance Officer and AML Compliance Officer of HASCO (since April 2015) and Vice President of HASCO (since April 2018). Mr. Decker serves as AML Officer of HFD (since May 2015). Mr. Decker also serves as Vice President of HFMG (since April 2018). Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015.   N/A    N/A

AMY N. FURLONG

(1979)

   Vice President and Treasurer   Since 2018   Ms. Furlong serves as Vice President and Assistant Treasurer of HFMC (since September 2019). Ms. Furlong has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Furlong joined The Hartford in 2004.   N/A    N/A

WALTER F. GARGER

(1965)

  

Vice President and Chief

Legal Officer

  Since 2016   Mr. Garger serves as Secretary, Managing Director and General Counsel of HFMG, HFMC, HFD, and HASCO (since 2013). Mr. Garger also serves as Secretary and General Counsel of Lattice (since July 2016). Mr. Garger has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Garger joined The Hartford in 1995.   N/A    N/A

THEODORE J. LUCAS

(1966)

   Vice President   Since 2017   Mr. Lucas serves as Executive Vice President of HFMG (since July 2016) and as Executive Vice President of Lattice (since June 2017). Previously, Mr. Lucas served as Managing Partner of Lattice (2003 to 2016).   N/A    N/A

JOSEPH G. MELCHER

(1973)

   Vice President and Chief Compliance Officer   Since 2013   Mr. Melcher serves as Executive Vice President of HFMG and HASCO (since December 2013). Mr. Melcher also serves as Executive Vice President (since December 2013) and Chief Compliance Officer (since December 2012) of HFMC, serves as Executive Vice President and Chief Compliance Officer of Lattice (since July 2016), serves as Executive Vice President of HFD (since December 2013), and has served as President and Chief Executive Officer of HFD (from April 2018 to June 2019).   N/A    N/A

 

 

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Directors and Officers of the Company (Unaudited) – (continued)

 

 

 

NAME, YEAR OF BIRTH

AND ADDRESS(1)

  

POSITION
HELD WITH
THE COMPANY

 

TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED

 

PRINCIPAL OCCUPATION(S)

DURING PAST 5 YEARS

  NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR
  

OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR

VERNON J. MEYER

(1964)

  

Vice

President

  Since 2006   Mr. Meyer serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG (since 2013). Mr. Meyer also serves as Senior Vice President-Investments of Lattice (since March 2019). Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.   N/A    N/A

ALICE A. PELLEGRINO

(1960)

   Vice President and Assistant Secretary   Since 2016   Ms. Pellegrino serves as Vice President of HFMG (since December 2013). Ms. Pellegrino also serves as Vice President and Assistant Secretary of Lattice (since June 2017). Ms. Pellegrino is a Senior Counsel and has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Pellegrino joined The Hartford in 2007.   N/A    N/A

THOMAS R. PHILLIPS

(1960)

   Vice President and Secretary   Since 2017   Mr. Phillips is Deputy General Counsel for HFMG and currently serves as Vice President (since February 2017) and Assistant Secretary (since June 2017) for HFMG. Prior to joining HFMG in 2017, Mr. Phillips was a Director and Chief Legal Officer of Saturna Capital Corporation from 2014–2016. Prior to that, Mr. Phillips was a Partner and Deputy General Counsel of Lord, Abbett & Co. LLC.   N/A    N/A

 

*

Following their election by shareholders, the following persons become Directors effective November 2, 2020:

 

Derrick D. Cephas – Until his retirement in October 2020, Mr. Cephas was a Partner of Weil, Gotshal & Manges LLP, an international law firm headquartered in New York, where he served as the Head of the Financial Institutions Practice (April 2011 to October 2020). Mr. Cephas serves as a Director of Signature Bank, a New York-based commercial bank, and is a member of the Credit Committee, Examining Committee and Risk Committee (March 2016 to present).

 

Andrew A. Johnson – Mr. Johnson currently serves as a Diversity and Inclusion Advisor at Neuberger Berman, a private, global investment management firm. Prior to his current role, Mr. Johnson served as Chief Investment Officer and Head of Global Investment Grade Fixed Income at Neuberger Berman (January 2009 to December 2018).

 

Paul L. Rosenberg – Mr. Rosenberg is a Partner of The Bridgespan Group, a global nonprofit consulting firm that is a social impact advisor to nonprofits, non-governmental organizations, philanthropists and institutional investors (October 2007 to present).

(1)

The address for each officer and Director is c/o Hartford Funds 690 Lee Road, Wayne, Pennsylvania 19087.

(2)

Each Director holds an indefinite term until his or her retirement, resignation, removal, or death. Directors generally must retire no later than December 31 of the year in which the Director turns 75 years of age. Each Fund officer generally serves until his or her resignation, removal, or death.

(3)

The portfolios of the “Fund Complex” are operational series of The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., Hartford HLS Series Fund II, Inc., Lattice Strategies Trust, Hartford Funds Exchange-Traded Trust, and Hartford Schroders Opportunistic Income Fund.

(4)

Effective December 31, 2020, Mr. Hill will retire from the Board of Directors.

(5)

“Interested person,” as defined in the 1940 Act, of the Company because of the person’s affiliation with, or equity ownership of, HFMC, HFD or affiliated companies.

 

 

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HOW TO OBTAIN A COPY OF EACH FUND’S PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at  http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Each Fund’s Form N-PORT reports are available (1) without charge, upon request, by calling 888-843-7824, (2) on the Funds’ website, hartfordfunds.com, and (3) on the SEC’s website at http://www.sec.gov.

 

 

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Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited)

 

 

 

The Hartford Mutual Funds II, Inc.

Hartford Schroders Emerging Markets Equity Fund

Hartford Schroders Emerging Markets Multi-Sector Bond Fund

Hartford Schroders International Multi-Cap Value Fund

Hartford Schroders International Stock Fund

Hartford Schroders Securitized Income Fund

Hartford Schroders Tax-Aware Bond Fund

Hartford Schroders US MidCap Opportunities Fund

Hartford Schroders US Small Cap Opportunities Fund

(each, a “Fund” and collectively, the “Funds”)

Each of the Hartford Schroders Emerging Markets Equity Fund, Hartford Schroders Emerging Markets Multi-Sector Bond Fund, Hartford Schroders International Multi-Cap Value Fund, Hartford Schroders International Stock Fund, Hartford Schroders Tax-Aware Bond Fund, Hartford Schroders US MidCap Opportunities Fund, and Hartford Schroders US Small Cap Opportunities Fund is the successor to a corresponding series of Schroder Series Trust or Schroder Capital Funds (Delaware) (each a “Predecessor Fund” and collectively, the “Predecessor Funds”), pursuant to a reorganization consummated on October 24, 2016.

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that each mutual fund’s board of directors, including a majority of those directors who are not “interested persons” of the mutual fund, as defined in the 1940 Act (the “Independent Directors”), annually review and consider the continuation of the mutual fund’s investment advisory and sub-advisory agreements. At its meeting held on August 4-5, 2020, the Board of Directors (the “Board”) of The Hartford Mutual Funds II, Inc. (“HMF II”), including each of the Independent Directors, unanimously voted to approve (i) the continuation of an investment management agreement by and between Hartford Funds Management Company, LLC (“HFMC”) and each of HMF II, on behalf of the Funds, and The Hartford Mutual Funds, Inc. (“HMF”), on behalf of its series (the “Management Agreement”); (ii) the continuation of an investment sub-advisory agreement (the “Sub-Advisory Agreement”) by and between HFMC and each Fund’s sub-adviser, Schroder Investment Management North America Inc. (“SIMNA Inc.”); and (iii) the continuation of a separate sub-sub-advisory agreement (the “Sub-Sub-Advisory Agreement” and collectively with the Management Agreement and Sub-Advisory Agreement, the “Agreements”) by and between SIMNA Inc. and Schroder Investment Management North America Limited (“SIMNA Ltd.,” and together with SIMNA Inc., the “Sub-advisers,” and collectively with HFMC, the “Advisers”) on behalf of Hartford Schroders Emerging Markets Equity Fund, Hartford Schroders International Stock Fund, Hartford Schroders Tax-Aware Bond Fund, and Hartford Schroders International Multi-Cap Value Fund (collectively, the “Sub-Sub-Advised Funds”).

In the months preceding the August 4-5, 2020 meeting, the Board requested and reviewed written responses from the Advisers to questions posed to the Advisers on behalf of the Independent Directors and supporting materials relating to those questions and responses. In addition, the Board considered such additional information as it deemed reasonably necessary to evaluate the Agreements, as applicable, with respect to each Fund, which included information furnished to the Board and its committees at their meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose, as well as information specifically prepared in connection with the approval of the continuation of the Agreements that was presented at the Board’s meetings held on June 16-17, 2020 and August 4-5, 2020. Information provided to the Board and its committees at their meetings throughout the year included, among other things, reports on Fund performance, legal, compliance and risk management matters, sales and marketing activity, shareholder services, and the other services provided to each Fund by the Advisers and their affiliates. The members of the Board also considered the materials and presentations by Fund officers and representatives of HFMC received at the Board’s meetings on June 16-17, 2020 and August 4-5, 2020 concerning the Agreements and at the special meeting of the Board’s Investment Committee on May 12, 2020 concerning Fund performance and other investment-related matters.

The Independent Directors, advised by independent legal counsel throughout the evaluation process, engaged service providers to assist them with evaluating the Agreements with respect to each Fund, as applicable. Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, was retained to provide the Board with reports on how each Fund’s contractual management fees, actual management fees, overall expense ratios and investment performance compared to those of comparable mutual funds with similar investment objectives. The Independent Directors also engaged an independent financial services consultant (the “Consultant”) to assist them in evaluating each Fund’s contractual management fees, actual management fees, overall expense ratios and investment performance. In addition, the Consultant reviewed the profitability methodologies utilized by HFMC in connection with the continuation of the Management Agreement.

In determining whether to approve the continuation of the Agreements for a Fund, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the continuation of the Agreements was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Agreements. The Board was also furnished with an analysis of its fiduciary obligations in connection with its evaluation of the Agreements. Throughout the evaluation process, the Board was assisted by counsel for the Funds. The Independent Directors were also separately assisted by independent legal counsel throughout the evaluation process. In connection with their deliberations, the Independent Directors met separately with independent

 

 

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Hartford Schroders Funds

Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

legal counsel and the Consultant on June 12, 2020 and in executive session on several occasions to consider their responsibilities under relevant laws and regulations and to discuss the materials presented and other matters deemed relevant to their consideration of the approval of the continuation of the Agreements. As a result of the discussions that occurred during the June 12, 2020 and June 16-17, 2020 meetings, the Independent Directors presented HFMC with requests for additional information on certain topics. HFMC responded to these requests with written additional information in advance of the August 4-5, 2020 meeting. A more detailed summary of the important, but not necessarily all, factors the Board considered with respect to its approval of the continuation of the Agreements is provided below.

Nature, Extent and Quality of Services Provided by the Advisers

The Board requested and considered information concerning the nature, extent and quality of the services provided to each Fund by the Advisers. The Board considered, among other things, the terms of the Agreements and the range of services provided by the Advisers. The Board considered the Advisers’ professional personnel who provide services to the Funds, including each Adviser’s ability and experience in attracting and retaining qualified personnel to service the Funds. The Board considered each Adviser’s reputation and overall financial strength, as well as each Adviser’s willingness to consider and implement organizational and operational changes designed to enhance services to the funds managed by HFMC and its affiliates (the “Hartford funds”). In addition, the Board considered the quality of each Adviser’s communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Funds and other Hartford funds. In this regard, the Board took into account the Advisers’ communications with the Board in light of the market volatility amidst the coronavirus (“COVID-19”) pandemic.

The Board also requested and evaluated information concerning each Adviser’s regulatory and compliance environment. In this regard, the Board requested and reviewed information about each Adviser’s compliance policies and procedures, compliance history, and a report from the Funds’ Chief Compliance Officer about each Adviser’s compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulators. The Board also noted the Advisers’ support of the Funds’ compliance control structure, as applicable, and, in particular, the resources devoted by the Advisers in support of the Funds’ obligations pursuant to Rule 38a-1 under the 1940 Act and the Funds’ liquidity risk management program, as well as the efforts of the Advisers to combat cybersecurity risks. The Board also considered HFMC’s investments in business continuity planning designed to benefit the Funds, and the implementation of HFMC’s business continuity plans due to the COVID-19 pandemic. The Board also noted HFMC’s commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes to the market, regulatory and control environments in which the Funds and their service providers operate, including changes associated with the COVID-19 pandemic.

With respect to HFMC, the Board noted that, under the Management Agreement, HFMC is responsible for the management of the Funds, including oversight of fund operations and service providers, and the provision of administrative and investment advisory services in connection with selecting, monitoring and supervising the Sub-advisers. In this regard, the Board evaluated information about the nature and extent of responsibilities retained and risks assumed by HFMC that were not delegated to or assumed by the Sub-advisers. The Board considered HFMC’s ongoing monitoring of people, process and performance, including its quarterly reviews of each of the Hartford funds, semi-annual meetings with the leaders of each Fund’s portfolio management team, and oversight of the Hartford funds’ portfolio managers. The Board noted that HFMC has demonstrated a record of initiating changes to the portfolio management and/or investment strategies of the Hartford funds when warranted. The Board considered HFMC’s periodic due diligence reviews of each Sub-adviser and ongoing oversight of each Sub-adviser’s investment approach and results, process for monitoring best execution of portfolio trades and other trading operations by each Sub-adviser, and approach to risk management with respect to the Funds and the service providers to the Funds. The Board considered HFMC’s oversight of the securities lending program for the Funds that engage in securities lending and noted the income earned by the Funds that participate in such program. The Board also considered HFMC’s day-to-day oversight of each Fund’s compliance with its investment objective and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led to an increase in the scope of HFMC’s oversight in this regard. Moreover, the Board considered HFMC’s oversight of potential conflicts of interest between the Funds’ investments and those of other funds or accounts managed by the Funds’ portfolio management personnel.

In addition, the Board considered HFMC’s ongoing commitment to review and rationalize the Hartford funds product line-up. The Board also considered the expenses that HFMC had incurred, as well as the risks HFMC had assumed, in connection with the launch of new funds and changes to existing Hartford funds in recent years. The Board considered that HFMC is responsible for providing the Funds’ officers.

With respect to SIMNA Inc. and SIMNA Ltd., which provide certain day-to-day portfolio management services for the Funds and the Sub-Sub-Advised Funds, respectively, subject to oversight by HFMC, the Board considered, among other things, the Sub-adviser’s investment personnel, investment philosophy and process, investment research capabilities and resources, performance record, trade execution capabilities and experience. The Board considered the experience of each Fund’s portfolio manager(s), the number of accounts managed by the portfolio manager(s), and each Sub-adviser’s method for compensating the portfolio manager(s). The Board also considered the Sub-advisers’ succession planning practices to ensure continuity of portfolio management services provided to the Funds.

The Board considered the benefits to shareholders of being part of the family of Hartford funds, including, with respect to certain share classes, the right to exchange investments between the same class of shares without a sales charge, the ability to reinvest Fund dividends into other Hartford funds (excluding the Hartford funds that are exchange-traded funds or an interval fund), and the ability to combine holdings in a Fund with holdings in other

 

 

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Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

Hartford funds (excluding the Hartford funds that are exchange-traded funds or an interval fund) and 529 plans for which HFMC serves as the program manager to obtain a reduced sales charge. The Board considered HFMC’s efforts to provide investors in the Hartford funds with a broad range of investment styles and asset classes and the assumption of entrepreneurial and other risks by HFMC in sponsoring and providing ongoing services to new funds to expand these opportunities for shareholders. In addition, the Board observed that in the marketplace there are a range of investment options available to each Fund’s shareholders and such shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund.

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to each Fund by HFMC and the Sub-advisers.

Performance of each Fund and the Advisers

The Board considered the investment performance of each Fund, which included the performance of any applicable Predecessor Fund. The Board noted that each Predecessor Fund had been managed by SIMNA Inc., and each Sub-Sub-Advised Fund’s corresponding Predecessor Fund, except Hartford Schroders Tax-Aware Bond Fund’s corresponding Predecessor Fund, had been sub-advised by SIMNA Ltd. In this regard, the Board reviewed the performance of each Fund over different time periods presented in the materials and evaluated HFMC’s analysis of the Fund’s performance for these time periods. The Board considered information and materials provided to the Board by the Advisers concerning Fund performance, as well as information from Broadridge comparing the investment performance of each Fund to an appropriate universe of peer funds. The Board noted that while it found the comparative data provided by Broadridge generally useful in evaluating a Hartford fund’s investment performance, the Board recognized the limitations of such data, including, in particular, that notable differences may exist between a Hartford fund and its peers. The Board also noted that, for the Hartford Schroders Securitized Income Fund, there existed no peer group with a strong correlation to the Fund’s investment strategy. For that Fund, the Board considered supplemental performance evaluation information. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below.

The Board considered the detailed investment analytics reports provided by HFMC’s Investment Advisory Group throughout the year, including in connection with the approval of the continuation of the Agreements. These reports included, among other things, information on each Fund’s gross returns and net returns, the Fund’s investment performance compared to one or more appropriate benchmarks and relevant groups or categories of peer funds, various statistics concerning the Fund’s portfolio, a narrative summary of various factors affecting Fund performance, and commentary on the effect of current and recent market conditions. The Board considered the Advisers’ work with the Investment Committee, which assists the Board in evaluating the performance of each Fund at periodic meetings throughout the year and specifically with respect to the approval of the continuation of the Agreements. The Board considered that the Investment Committee, in its evaluation of investment performance at meetings throughout the year, focused particular attention on information indicating less favorable performance of certain Hartford funds for specific time periods and discussed with the Advisers the reasons for such performance. The Board also considered the analysis provided by the Consultant relating to each Fund’s performance track record.

In light of all the considerations noted above, the Board concluded that it had continued confidence in HFMC’s and each Sub-adviser’s overall capabilities to manage the Funds, as applicable.

Costs of the Services and Profitability of the Advisers

The Board reviewed information regarding HFMC’s cost to provide investment management and related services to each Fund and HFMC’s profitability, both overall and for each Fund, on a pre-tax basis without regard to distribution expenses. The Board also requested and reviewed information about the profitability to HFMC and its affiliates from all services provided to each Fund and all aspects of their relationship with the Fund, including information regarding profitability trends over time and information provided by Broadridge analyzing the profitability of managers to other fund complexes. The Board also requested and received information relating to the operations and profitability of the Sub-advisers. The Board considered representations from HFMC and SIMNA Inc. that SIMNA Inc.’s fees were negotiated at arm’s length on a Fund-by-Fund basis and that the sub-advisory fees are paid by HFMC and not the Funds. The Board also considered that SIMNA Ltd. is an affiliate of SIMNA Inc. and that SIMNA Ltd.’s sub-sub-advisory fees would be paid by SIMNA Inc., not the Sub-Sub-Advised Funds. Accordingly, the Board concluded that the profitability of the Sub-advisers is a less relevant factor with respect to the Board’s consideration of the Sub-Advisory Agreement and the Sub-Sub-Advisory Agreement.

The Board considered the Consultant’s review of the methodologies and estimates used by HFMC in calculating profitability in connection with the continuation of the Management Agreement, including a description of the methodology used to allocate certain expenses. The Board noted that the Consultant, at the Independent Directors’ request, performed a full review of HFMC’s process for calculating and reporting Fund profitability consistent with similar periodic reviews previously performed by the Consultant. The Board noted the Consultant’s view that such process is reasonable, sound and consistent with common industry practice.

Based on these considerations, the Board concluded that the profits realized by the Advisers and their affiliates from their relationships with each Fund were not excessive.

Comparison of Fees and Services Provided by the Advisers

The Board considered the comparative information that had been provided at meetings on June 16-17, 2020 and August 4-5, 2020 with respect to the services rendered to and the management fees to be paid by each Fund to HFMC and the total expense ratios of the Fund. The Board also considered

 

 

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comparative information with respect to the sub-advisory fees to be paid by HFMC to SIMNA Inc. with respect to each Fund. In this regard, the Board requested and reviewed information from HFMC and SIMNA Inc. relating to the management and sub-advisory fees, including the sub-advisory fee schedule for each Fund and the amount of the management fee retained by HFMC, and total operating expenses for each Fund. The Board also reviewed information from Broadridge comparing each Fund’s contractual management fees, actual management fees and total expense ratios relative to an appropriate group of funds selected by Broadridge. The Board considered such information from Broadridge in consultation with the Consultant. For details regarding each Fund’s expenses, see the Fund-by-Fund synopsis below.

The Board considered the methodology used by Broadridge to select the funds included in the expense groups. While the Board recognized that comparisons between a Fund and its peer funds may be imprecise given, among other differences, the different service levels and characteristics of mutual funds and the different business models and cost structures of the Advisers, the comparative information provided by Broadridge assisted the Board in evaluating the reasonableness of each Fund’s fees and total operating expenses. In addition, the Board considered the analysis and views of the Consultant relating to each Fund’s fees and total operating expenses.

The Board received information regarding fees charged by HFMC to another Hartford fund that is an exchange-traded fund (“ETF”) with investment strategies similar to those of the Hartford Schroders Tax-Aware Bond Fund. The Board reviewed information about structural, operational and other differences between the ETF and the Hartford Schroders Tax-Aware Bond Fund, including differences in the services provided to each type of product and differences in the marketplace in which each type of product must compete. The Board also received information regarding fees charged by the Sub-advisers to any other clients with investment strategies similar to those of the Funds, including institutional separate account clients and registered fund clients for which a Sub-adviser serves as either primary investment adviser or sub-adviser. The Board considered the explanations provided by the Sub-advisers about any differences between a Sub-adviser’s services to the Funds and the services the Sub-adviser provides to other types of clients. In this regard, the Board reviewed information about the generally broader scope of services and compliance, reporting and other legal burdens and risks of managing registered funds compared with those associated with managing assets of non-registered fund clients such as institutional separate accounts.

Based on these considerations, the Board concluded that each Fund’s fees and total operating expenses, in conjunction with the information about quality of services, profitability, economies of scale, and other matters considered, were reasonable in light of the services provided.

Economies of Scale

The Board considered information regarding the extent to which economies of scale may be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of shareholders of the Fund. The Board reviewed the breakpoints in the management fee schedule for each Fund, if any, which reduce fee rates as the Fund’s assets grow over time. The Board recognized that a Fund with assets beyond the highest breakpoint level will continue to benefit from economies of scale because additional assets are charged the lowest breakpoint fee resulting in lower overall effective management fee rates. The Board also recognized that a fee schedule that reaches a breakpoint at a lower asset level provides shareholders with the benefit of anticipated or potential economies of scale. The Board considered that expense limitations and fee waivers that reduce a Fund’s expenses at all asset levels can have the same effect as breakpoints in sharing economies of scale with shareholders and provide protection from an increase in expenses if the Fund’s assets decline. In addition, the Board considered that initially setting competitive fee rates, pricing a Fund to scale at inception and making additional investments intended to enhance services available to shareholders are other means of sharing anticipated or potential economies of scale with shareholders. The Board also considered that HFMC has been active in managing expenses, which has resulted in benefits being realized by shareholders. The Board also noted that, for each of the Hartford Schroders Emerging Markets Multi-Sector Bond Fund and the Hartford Schroders US Small Cap Opportunities Fund, the Fund’s current low asset levels have kept the Fund from fully realizing the benefits of anticipated or potential economies of scale.

The Board reviewed and evaluated materials from Broadridge and the Consultant showing how management fee schedules of peer funds reflect economies of scale for the benefit of shareholders as a peer fund’s assets hypothetically increase over time. Based on information provided by HFMC, Broadridge, and the Consultant, the Board recognized that there is no uniform methodology for establishing breakpoints or uniform pattern in asset levels that trigger breakpoints or the amounts of breakpoints triggered.

After considering all of the information available to it, the Board concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of each Fund’s shareholders based on currently available information and the effective management fees and total expense ratios for the Fund at its current and reasonably anticipated asset levels. The Board noted, however, that it would continue to monitor any future growth in each Fund’s assets and the appropriateness of additional management fee breakpoints or other methods to share benefits from economies of scale as part of its future review of the Agreements.

Other Benefits

The Board considered other benefits to the Advisers and their affiliates from their relationships with the Funds.

The Board noted that HFMC receives fees for fund accounting and related services from the Funds, and the Board considered information on the profitability to HFMC from providing such services to the Funds. The Board also considered that each Fund pays a transfer agency fee to Hartford Administrative Services Company (“HASCO”), an affiliate of HFMC, equal to the lesser of: (i) the actual costs incurred by HASCO in connection with

 

 

  127  

 


Hartford Schroders Funds

Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

the provisions of transfer agency services, including payments made to sub-transfer agents, plus a reasonable target profit margin; or (ii) a specified amount as set forth in the Transfer Agency and Service Agreement by and between HMF II, on behalf of its Funds, HMF, on behalf of its series, and HASCO. The Board reviewed information about the profitability to HASCO of the Funds’ transfer agency function. The Board considered information provided by HFMC indicating that the transfer agency fees charged by HASCO to the Funds were fair and reasonable based on publicly available information. The Board also noted that HFMC and HASCO had delegated certain fund accounting services and transfer agency services, respectively, to external service providers.

The Board also considered that Hartford Funds Distributors, LLC (“HFD”), an affiliate of HFMC, serves as principal underwriter of the Funds. The Board noted that, as principal underwriter, HFD receives distribution and service fees from the Funds and receives all or a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also considered that Schroder Fund Advisors LLC (“SFA”), a wholly-owned subsidiary of SIMNA Inc., has entered into an additional compensation arrangement with HFMC and HFD. The Board considered that under this arrangement, SFA is involved in the distribution of the Class SDR shares of the Funds, and HFMC compensates SFA for such services.

The Board considered the benefits, if any, to the Sub-advisers from any use of a Fund’s brokerage commissions to obtain soft dollar research. The Board also considered that SIMNA Inc. has entered into a solicitation agreement with HFMC pursuant to which HFMC provides certain marketing support services with respect to an investment strategy model offered by SIMNA Inc. through its managed account platforms.

Fund-by-Fund Factors

For purposes of the Fund-by-Fund discussion below, Fund performance is referred to as “in line with” a Fund’s benchmark where it was 0.5% above or below the benchmark return, and each Fund’s performance relative to its primary benchmark reflects the net performance of the Fund’s Class I shares as of March 31, 2020.

Hartford Schroders Emerging Markets Equity Fund

 

 

The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-, 3-, and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3-, and 5-year periods.

 

 

The Board noted that the Fund’s contractual management fee and actual management fee were in the 4th quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile.

Hartford Schroders Emerging Markets Multi-Sector Bond Fund

 

 

The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the 1-, 3-year, and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3-, and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team.

 

 

The Board noted that the Fund’s contractual management fee was in the 2nd quintile of its expense group, while its actual management fee and its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. The Board noted that Class A shares of the Fund have a contractual expense cap of 1.15% through February 28, 2021, which resulted in HFMC reimbursing the Fund for certain expenses.

Hartford Schroders International Multi-Cap Value Fund

 

 

The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1- and 3-year periods and in the 2nd quintile for the 5-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3-, and 5-year periods.

 

 

The Board noted that the Fund’s contractual management fee was in the 2nd quintile of its expense group, while its actual management fee was in the 4th quintile and its total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile. The Board noted that Class Y shares of the Fund have a contractual transfer agency expense cap of 0.06% through February 28, 2021.

Hartford Schroders International Stock Fund

 

 

The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1- and 3-year periods and the 2nd quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3-, and 5-year periods.

 

 

The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. The Board noted that Class A shares of the Fund have a contractual expense cap of 1.15% through February 28, 2021, which resulted in HFMC reimbursing the Fund for certain expenses.

Hartford Schroders Securitized Income Fund

 

 

The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1-year period.

 

 

  128  

 


Hartford Schroders Funds

Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)

 

 

 

 

The Board noted that the Fund’s contractual management fee was in the 2nd quintile of its expense group, while its actual management fee was in the 1st quintile and its total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile. The Board noted that Class A shares of the Fund have a contractual expense cap of 1.10% through February 28, 2021, which resulted in HFMC reimbursing the Fund for certain expenses.

Hartford Schroders Tax-Aware Bond Fund

 

 

The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1- and 5-year periods and the 3rd quintile for the 3-year period. The Board also noted that the Fund’s performance was in line with its benchmark for the 1-, 3-, and 5-year periods.

 

 

The Board noted that the Fund’s contractual management fee and actual management fee were in the 2nd quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile. The Board noted that Class A shares of the Fund have a contractual expense cap of 0.71% through February 28, 2021, which resulted in HFMC reimbursing the Fund for certain expenses.

Hartford Schroders US MidCap Opportunities Fund

 

 

The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1- and 5-year periods and the 2nd quintile for the 3-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 5-year periods and below its benchmark for the 3-year period.

 

 

The Board noted that the Fund’s contractual management fee was in the 2nd quintile of its expense group, while its actual management fee was in the 3rd quintile and its total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile. In considering the Fund’s expenses, the Board noted the shareholder savings expected to result from an investment management fee reduction implemented in 2019.

Hartford Schroders US Small Cap Opportunities Fund

 

 

The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1-, 3-, and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 5-year periods and in line with its benchmark for the 3-year period.

 

 

The Board noted that the Fund’s contractual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile of its expense group, while its actual management fee was in the 5th quintile. The Board noted that Class A shares of the Fund have a contractual expense cap of 1.35% through February 28, 2021, which resulted in HFMC reimbursing the Fund for certain expenses.

* * * *

Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of each Fund and its shareholders for the Board to approve the continuation of the Agreements for an additional year. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves.

 

 

  129  

 


Hartford Schroders Funds

Supplemental Proxy Information (Unaudited)

 

 

 

A joint special meeting of shareholders of the Funds was held on October 21, 2020 (the “Shareholder Meeting”). The Shareholder Meeting was held for the purpose of electing members of the Funds’ Board of Directors. Shareholders elected the following ten (10) Directors at the Shareholder Meeting:

 

   

Hilary E. Ackermann

   

Robin C. Beery

   

Lynn S. Birdsong

   

Derrick D. Cephas

   

James E. Davey

   

Christine R. Detrick

   

Andrew A. Johnson

   

Paul L. Rosenberg

   

Lemma W. Senbet

   

David Sung

The results of the shareholders’ election of Directors were as follows:

 

The Harford Mutual Funds II, Inc.

 

Shares Outstanding (as of Record Date): 768,594,114.957

Total Shares Voted: 566,699,328.863

Percentage of Shares Voted: 73.731%

 

 

 

 

 

Director   

Vote

  

Total Shares Voted

   Percentage of
Shares Voted
     Percentage
of Shares
Outstanding
 

Hilary E. Ackermann

   For:    556,660,539.359      98.229      72.425
   Withheld:    10,038,789.504      1.771      1.306

Robin C. Beery

   For:    556,944,922.870      98.279      72.462
   Withheld:    9,754,405.993      1.721      1.269

Lynn S. Birdsong

   For:    556,292,460.990      98.164      72.377
   Withheld:    10,406,867.873      1.836      1.354

Derrick D. Cephas

   For:    556,856,991.347      98.264      72.451
   Withheld:    9,842,337.516      1.736      1.280

James E. Davey

   For:    557,044,179.884      98.297      72.475
   Withheld:    9,655,148.979      1.703      1.256

Christine R. Detrick

   For:    557,270,841.428      98.337      72.505
   Withheld:    9,428,487.435      1.663      1.226

Andrew A. Johnson

   For:    556,714,377.226      98.239      72.432
   Withheld:    9,984,951.637      1.761      1.299

Paul L. Rosenberg

   For:    556,427,961.551      98.188      72.395
   Withheld:    10,271,367.312      1,812      1.336

Lemma W. Senbet

   For:    556,309,838.539      98.167      72.380
   Withheld:    10,389,490.324      1.833      1.351

David Sung

   For:    556,545,785.718      98.209      72.410
   Withheld:    10,153,543.145      1.791      1.321

As of the date of the Shareholder Meeting, Mr. Duane E. Hill served as a Director and did not seek re-election. Mr. Hill will continue to serve as a Director until his scheduled retirement on December 31, 2020.

 

 

  130  

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

CUSTOMER PRIVACY NOTICE

The Hartford Financial Services Group, Inc. and Affiliates*

(herein called “we, our, and us”)

This Privacy Policy applies to our United States Operations

 

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or other similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

For more information, our Online Privacy Policy, which governs information we collect on our website and our affiliate websites, is available at https://www.thehartford.com/online-privacy-policy.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data; and

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our privacy policies and procedures may be subject to discipline, which may include termination of their employment with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Financial Information may include Social Security Numbers, Driver’s license numbers, or other government-issued identification numbers, or credit, debit card, or bank account numbers.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information.

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

If you have any questions or comments about this privacy notice, please feel free to contact us at The Hartford – Consumer Rights and Privacy Compliance Unit, One Hartford Plaza, Hartford, CT 06155, or at ConsumerPrivacyInquiriesMailbox@thehartford.com.

This Customer Privacy Notice is being provided on behalf of The Hartford Financial Services Group, Inc. and its affiliates (including the following as of March 2020), to the extent required by the Gramm-Leach-Bliley Act and implementing regulations:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; Assurances Continentales Continentale Verzekeringen N.V; Bracht, Deckers & Mackelbert N.V.; Business Management Group, Inc.; Canal Re S.A.; Cervus Claim Solutions, LLC; First State Insurance Company; FTC Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Insurance, Ltd.; Hartford Integrated Technologies, Inc.; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford Management, Ltd.; Hartford Productivity Services LLC; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Specialty Insurance Services of Texas, LLC; Hartford STAG Ventures LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Heritage Holdings, Inc.; Heritage Reinsurance Company, Ltd.; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lattice Strategies LLC; Maxum Casualty Insurance Company; Maxum Indemnity Company; Maxum Specialty Services Corporation; Millennium Underwriting Limited; MPC Resolution Company LLC; Navigators (Asia) Limited; Navigators Corporate Underwriters Limited; Navigators Holdings (Europe) N.V.; Navigators Holdings (UK) Limited; Navigators Insurance Company; Navigators International Insurance Company Ltd.; Navigators Management Company, Inc.; Navigators Management (UK) Limited; Navigators N.V.; Navigators Specialty Insurance Company; Navigators Underwriting Agency Limited; Navigators Underwriting Limited; New England Insurance Company; New England Reinsurance Corporation; New Ocean Insurance Co., Ltd.; NIC Investments (Chile) SpA; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Property and Casualty Insurance Company of Hartford; Sentinel Insurance Company, Ltd; The Navigators Group, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company; Y-Risk, LLC.

Revised March 2020


This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges and expenses of a Fund. This and other important information is contained in a Fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.

The Funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA. Hartford Funds Management Company, LLC (HFMC) is the Funds’ investment manager. The Funds referenced herein are sub-advised by Schroder Investment Management North America Inc. Schroder Investment Management North America Ltd. serves as a sub-sub adviser to certain Funds. HFD and HFMC are not affiliated with Schroder Investment Management North America Inc. and Schroder Investment Management North America Ltd.

MFAR-HSE20    12/20    219826    Printed in U.S.A.

 

LOGO


Item 2. Code of Ethics.

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. A copy of the code of ethics is filed herewith.

Item 3. Audit Committee Financial Expert.

The Board of Directors of the registrant (the “Board”) has designated David Sung as an Audit Committee Financial Expert. Mr. Sung is considered by the Board to be an independent director.

Item 4. Principal Accountant Fees and Services.

 

  (a)

Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were:

 

    

$243,000 for the fiscal year ended October 31, 2019; $261,500 for the fiscal year ended October 31, 2020.

 

  (b)

Audit Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were:

 

    

$0 for the fiscal year ended October 31, 2019; $0 for the fiscal year ended October 31, 2020.

 

  (c)

Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were:

 

    

$98,573 for the fiscal year ended October 31, 2019; $70,962 for the fiscal year ended October 31, 2020. Tax-related services were principally in connection with, but not limited to, general tax services, excise tax and Passive Foreign Investment Company (PFIC) analysis.


  (d)

All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were:

 

    

$0 for the fiscal year ended October 31, 2019; $0 for the fiscal year ended October 31, 2020.

 

  (e)

(1) The Pre-Approval Policies and Procedures (the “Policy”) adopted by the Audit Committee of the registrant (also, the “Fund”) sets forth the procedures pursuant to which services performed by the independent registered public accounting firm for the registrant may be pre-approved. The following are some main provisions from the Policy.

 

  1.

The Audit Committee must pre-approve all audit services and non-audit services that the independent registered public accounting firm provides to the Fund.

 

  2.

The Audit Committee must pre-approve any engagement of the independent registered public accounting firm to provide non-audit services to any Service Affiliate (which is defined to include any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Fund) during the period of the independent registered public accounting firm’s engagement to provide audit services to the Fund, if the non-audit services to the Service Affiliate directly impact the Fund’s operations and financial reporting.

 

  3.

The Audit Committee shall pre-approve certain non-audit services to the Fund and its Service Affiliates pursuant to procedures set forth in the Policy.

 

  4.

The Audit Committee, from time to time, may designate one or more of its members who are Independent Directors (each a “Designated Member”) to consider, on the Audit Committee’s behalf, any non-audit services, whether to the Fund or to any Service Affiliate, that have not been pre-approved by the Audit Committee. The Designated Member also shall review, on the Audit Committee’s behalf, any proposed material change in the nature or extent of any non-audit services previously approved. In considering any requested non-audit services or proposed material change in such services, the Designated Member shall not authorize services which would exceed $50,000 in fees for such services.

 

  5.

The independent registered public accounting firm may not provide specified prohibited non-audit services set forth in the Policy to the Fund, the Fund’s investment adviser, the Service Affiliates or any other member of the investment company complex.

 

  (e)

(2) One hundred percent of the services described in items 4(b) through 4(d) were approved in accordance with the Audit Committee’s Pre-Approval Policy. As a result, none of such services was approved pursuant to paragraph (c) (7) (i) (c) of Rule 2-01 of Regulation S-X.

 

  (f)

Not applicable.

 

  (g)

The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were:

 

    

Non-Audit Fees: $98,573 for the fiscal year ended October 31, 2019; $70,962 for the fiscal year ended October 31, 2020.


  (h)

The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

 

  (a)

The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the annual report filed under Item 1 of this form.

 

  (b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors since the registrant last provided disclosure in response to this requirement.

Item 11. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are generally effective to provide reasonable assurance, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).


  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

 

(a)(1)   Code of Ethics is filed herewith.
(a)(2)   Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3)   Not applicable.
(a)(4)   Not applicable.
(b)   Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    THE HARTFORD MUTUAL FUNDS II, INC.
Date: January 8, 2021     By:  

/s/ James E. Davey

      James E. Davey
      President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Date: January 8, 2021     By:  

/s/ James E. Davey

      James E. Davey
            President and Chief Executive Officer

 

Date: January 8, 2021     By:  

/s/ Amy N. Furlong

      Amy N. Furlong
            Treasurer
            (Principal Financial Officer and Principal Accounting
Officer)