While value stocks have performed better than growth stocks
sixty percent of the time over the past 20 years (1989-2008) 1,
they have stood out particularly after periods of recession. Value
companies often become leaner during economic downturns, generate
more operating leverage by cutting fixed costs and assets to
weather a slower revenue environment, and set the stage for a
greater acceleration in earnings as market conditions improve.
History shows that value investments have outperformed growth
investments for the one-, three-, and five-year time periods
following the past four recessions (1/1980-7/1980, 7/1981-11/1982,
7/1990-3/1991, and 3/2001-11/2001)1.
INDEX PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Index Performance does not represent the performance of The
Hartford Mutual Funds or any particular investment. Indices
measured are Russell 1000 Value and Russell 1000 Growth, which are
unmanaged; you cannot invest directly in these indices. Assumes
reinvestment of income and no transaction cost.
“Why is it that some investment trends always seem to be in
style, like value investing?” asks Dr. Bob Froehlich, senior
managing director at The Hartford. “It’s the basic premise of
investing – you buy low and sell high. What that really means is
buying value stocks.”
The current opportunity in value investing is the theme of The
Hartford Mutual Funds’ latest marketing campaign, which focuses on
The Hartford’s value suite of mutual funds:
- The Hartford Balanced Income
Fund2, 3: Invests in a mix of approximately 55 percent bonds and 45
percent stocks, with an investment objective to provide income with
growth of capital.
- The Hartford Equity Income
Fund2: Seeks established companies that are currently being
overlooked by the market and are trading at a significant discount,
and dividend paying companies.
- The Hartford Dividend and Growth
Fund2: Blends a value-oriented approach with a focus on companies
that pay or intend to pay dividends.
- The Hartford Value Fund2: Uses a
“flexible value” approach to invest across the large-cap value
spectrum in companies that have a negatively impacted
valuation.
- The Hartford Value Opportunities
Fund2, 4: Invests primarily in stocks believed to be undervalued
and with growth potential across the market-cap spectrum.
- The Hartford MidCap Value Fund2,
4: Focuses on midcap companies with below average price/earnings
ratio and bottom-up security selection.
The Hartford® SMART529®, Offered by the West Virginia College
Prepaid Tuition and Savings Board of Directors, also provides
investors with the opportunity for value investing as part of the
college savings plan’s individual fund options. In that plan,
families saving for college may choose among four value options*,
which invest in The Hartford mutual fund value investment
options5.
*The Hartford Equity Income 529 Fund, The Hartford Dividend and
Growth 529 Fund, The Hartford Value 529 Fund and The Hartford
MidCap Value 529 Fund.
A June 2009 Hartford survey of 530 investors over the age of 30
who work with financial advisors found that 81 percent of investors
who work with advisors would like to have a dividend-paying stock
in their portfolio, yet over half said their advisor has not talked
to them about adding this type of option to their portfolio.
Seventy-five percent of investors who don’t already hold
dividend-paying investments would be open to including them in the
future.
“We strongly believe in the power of value investing for growth
and income,” says Keith Sloane, senior vice president of Hartford
Mutual Funds. “We also think there is an opportunity for advisors
to talk to their clients about solutions that can provide current
income and capital growth.”
“Investments seem to be the only thing that retail investors do
not want to buy on sale,” says Froehlich. “They shop for cars and
clothes at discount prices but when it comes to stocks and
investments, ‘on sale’ suddenly makes investors feel uneasy because
they think the price is low. One way to heed Warren Buffet’s advice
to ‘be fearful when others are greedy and greedy when others are
fearful’ is to overweight the value style of investing.”
Wellington Management Company, LLP, is an independent and
unaffiliated investment sub-adviser to The Hartford’s
value-oriented mutual funds. The firm’s experience in
value-oriented investing dates back more than eight decades to
1928, when its founder launched America’s first balanced fund.
Client brochures and other FINRA-reviewed brochures, articles,
letters and emails are available to the public at
www.hartfordmutualfunds.com. Financial professionals registered at
Hartford Mutual Funds’ broker-only Web site (password protected)
can access portfolio manager podcasts and an interactive flashbook
which allows advisors to flip though the virtual pages of the
brochure while listening to audio commentary from Hartford personal
finance experts.
The Hartford Value Suite: Performance Summary
Class A-Share Average Annual Total
Returns Including Maximum 5.5% Sales Charge (as of 12/31/09)
Fund Name (Fund Inception Date) 1 Year
5 Years 10 Years Since Inception Gross
Operating Expenses6 The Hartford Dividend and Growth Fund (7/22/96)
16.89% 1.56% 3.20% 6.98% 1.09%
The Hartford Value Fund (4/30/01) 16.84% 1.59%
N/A 1.64% 1.32%
The Hartford Equity Income Fund
(8/28/03)
11.85% 1.44% N/A 4.48% 1.19% The
Hartford Balanced Income Fund (7/31/06) 15.69% N/A
N/A 1.60% 1.25% The Hartford MidCap Value Fund
(4/30/01) 35.74% 1.08% N/A 4.72%
1.39% The Hartford Value Opportunities Fund (1/2/96) 36.77%
-1.31% 2.81% 6.22% 1.42%
Performance data quoted represents past performance and is
not indicative of future results. The investment return and
principal value of an investment will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Current performance may be lower or higher than the performance
data quoted. For more current performance information to the most
recent month ended, please see
www.hartfordmutualfunds.com. Performance results are
historical and include reinvestment of all distributions at net
asset value. Performance information may reflect historical or
current expense waivers/reimbursements from an affiliate of the
investment advisor, without which performance would have been
lower. For more information on waivers/reimbursements, please see
prospectus.
Performance data quoted does not represent performance of
SMART529.
About The Hartford Mutual Funds
The Hartford Mutual Funds, established in 1996, offers a wide
array of both broad-mandate and style-focused equity and
fixed-income investment options. The Hartford Mutual Funds draw on
the investment strength, experience and expertise of Wellington
Management and Hartford Investment Management Co. These two
organizations bring their decades of market experience, in-house
investment capabilities, rigorous research and time-tested
investment process to bear in managing the funds to help The
Hartford Mutual Fund investors meet their long-term financial
goals. Total retail mutual fund assets under management were $40.1
billion as of September 30, 2009. For more information on The
Hartford Mutual Funds, including current holdings, visit
www.hartfordmutualfunds.com.
About The Hartford
Celebrating nearly 200 years, The Hartford (NYSE: HIG) is an
insurance-based financial services company that serves households,
businesses and employees by helping to protect their assets and
income from risks, and by managing wealth and retirement needs. A
Fortune 500 company, The Hartford is recognized widely for its
service expertise and as one of the world’s most ethical companies.
More information on the company and its financial performance is
available at www.thehartford.com.
HIG-L
Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
cause actual results to differ. These important risks and
uncertainties include those discussed in our Quarterly Reports on
Form 10-Q, our 2008 Annual Report on Form 10-K and the other
filings we make with the Securities and Exchange Commission. We
assume no obligation to update this release, which speaks as of the
date issued.
You should carefully consider investment objectives, risks,
and charges and expenses of The Hartford Mutual Funds before
investing. This and other information can be found in the Fund's
prospectus, which can be obtained from your investment
representative or by calling 888-843-7824. Please read it carefully
before you invest or send money.
1 INDEX PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Index Performance does not represent the performance of The
Hartford Mutual Funds or any particular investment. The Russell
1000 Value and Growth Indices are unmanaged; you cannot invest
directly in these indices. Assumes reinvestment of income and no
transaction cost.
Recession dates were 1/1980-7/1980, 7/1981-11/1982,
7/1990-3/1991, and 3/2001-11/2001.
Indices measured are Russell 1000 Value and Russell 1000
Growth.
Russell 1000 Value Index measures the performance of those
Russell 1000 Index companies with lower price-to-book ratios and
lower forecasted growth values.
Russell 1000 Growth Index measures the performance of those
Russell 1000 Index companies with higher price-to-book ratios and
higher forecasted growth values.
Data Source: Morningstar Direct, 10/2009
2 The Fund may invest in foreign securities, which can be
riskier than investments in U.S. securities (risks may include
currency risk, illiquidity risks, and risks from substantially
lower trading volume on foreign markets).
The sub-adviser's investment strategy will influence performance
significantly and the Fund could underperform its peers or lose
money if that strategy does not perform as expected.
3 The Fund is subject to credit risk (the risk that the issuing
company may not be able to pay interest and principal when due),
interest rate risk (the risk that your investment may go down in
value when interest rates rise), and risk of loss (the risk that
you could lose money on your investment).
A portion of this Fund’s assets may be below investment grade
securities ("high-yield securities" or "junk bonds"), which are
rated lower because there is a greater possibility that the issuer
may be unable to make interest and principal payments on those
securities.
The Fund may invest in securities of companies that conduct
their principal business activities (or that trade principally on
exchanges) in emerging markets (including Asia, Latin America,
Eastern Europe, and Africa), which is riskier than investing in
securities of more developed countries (including risks of
illiquidity and increased price volatility).
4 The Fund invests in securities of small-cap and/or mid-cap
companies, which is riskier than stocks of larger companies,
because smaller companies generally are young, have limited
business history, and frequently rely on narrow product lines and
niche markets.
5 These are not mutual funds. Fees, charges and expenses are
different. Refer to the Offering Statement for additional
information.
6 Gross operating expenses shown are before management
fee waivers or expense caps. Performance information may reflect
historical or current expense waivers or reimbursements, without
which, performance would have been lower. For more information on
fee waivers and/or expense reimbursements, please see the expense
table in the prospectus.
Wellington Management Company, LLP is an independent and
unaffiliated sub-adviser to The Hartford.
The Hartford Mutual Funds are underwritten and distributed by
Hartford Investment Financial Services, LLC.
"The Hartford" is The Hartford Financial Services Group, Inc.
and its subsidiaries.
SMART529 is offered by the West Virginia College Prepaid Tuition
and Savings Program Board of Trustees and is administered by
Hartford Life Insurance Company.
“The Hartford” is a registered trademark of "Hartford" Fire
Insurance Company.
“SMART529” is a registered trademark of the West Virginia
College Prepaid Tuition and Savings Program Board of Trustees.
If you reside in or have taxable income in a state other than
West Virginia, you should consider whether your state has a
qualified tuition program that offers favorable state income tax or
other benefits exclusive to your state’s program that are not
available under the SMART529 program.
Investments in SMART529 are not guaranteed or insured by the
State of West Virginia, the Board of Trustees of the West Virginia
College Prepaid Tuition and Savings Program, the West Virginia
State Treasurer’s Office, Hartford Life Insurance Company, The
Hartford Financial Services Group, Inc., the investment
sub-advisors for the Underlying Funds or any depository institution
and are subject to investment risks, including the loss of the
principal amount invested, and may not be appropriate for all
investors.
This information is written in connection with the promotion or
marketing of the matter(s) addressed in this material. 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.
You should carefully consider the investment objectives,
risks, charges and expenses of SMART529 and its Underlying Funds
before investing. This and other information can be found in the
Offering Statement for SMART529 and the prospectuses or other
disclosure documents for the Underlying Funds, which can be
obtained on SMART529.com or by calling 866-574-3542. Please read
them carefully before you invest or send money. SMART529 is
distributed by Hartford Securities Distribution Company, Inc.
Member SIPC.
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