The Hartford International Small Company Fund

 

Summary Prospectus

The Hartford Mutual Funds

March 1, 2013

 

Class

 

Ticker

A

 

HNSAX

B

 

HNSBX

C

 

HNSCX

I

 

HNSJX

R3

 

HNSRX

R4

 

HNSSX

R5

 

HNSTX

Y

 

HNSYX

 

Before you invest, you may want to review the Fund’s prospectus, which contains more information about the Fund and its risks.  You can find the Fund’s prospectus and other information about the Fund online at www.hartfordfunds.com/prospectuses.html.  You can also get this information at no cost by calling 1-888-843-7824. The Fund’s prospectus dated March 1, 2013 and statement of additional information dated March 1, 2013 along with the financial statements included in the Fund’s most recent annual report to shareholders dated October 31, 2012 are incorporated by reference into this summary prospectus.  The Fund’s statement of additional information and annual report may be obtained, free of charge, in the same manner as the Fund’s prospectus.

 

Investment Objective:

The Fund seeks capital appreciation.

 



 

YOUR EXPENSES.   The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.  You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in The Hartford Mutual Funds.  More information about these and other discounts is available from your financial professional and in the “Sales Charge Reductions and Waivers” section beginning on page 25 of the Fund’s prospectus and the “Purchase and Redemption of Shares” section beginning on page 153 of the Fund’s statement of additional information.

 

Shareholder Fees

(fees paid directly from your investment)

 

 

 

Share Classes

 

 

 

A

 

B

 

C

 

I

 

R3

 

R4

 

R5

 

Y

 

Maximum sales charge (load) imposed on purchases as a percentage of offering price

 

5.50%

 

None

 

None

 

None

 

None

 

None

 

None

 

None

 

Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is less)

 

None (under $1 million invested)(1)

 

5.00%

 

1.00%

 

None

 

None

 

None

 

None

 

None

 

Exchange fees

 

None

 

None

 

None

 

None

 

None

 

None

 

None

 

None

 

 

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

 

 

 

A

 

B

 

C

 

I

 

R3

 

R4

 

R5

 

Y

 

Management fees

 

0.90

%

0.90

%

0.90

%

0.90

%

0.90

%

0.90

%

0.90

%

0.90

%

Distribution and service (12b-1) fees

 

0.25

%

1.00

%

1.00

%

 

0.50

%

0.25

%

 

 

Other expenses

 

0.46

%

0.72

%

0.47

%

0.16

%

0.31

%

0.26

%

0.25

%

0.11

%

Total annual fund operating expenses

 

1.61

%

2.62

%

2.37

%

1.06

%

1.71

%

1.41

%

1.15

%

1.01

%

Fee waiver and/or expense reimbursement(2)

 

0.05

%

0.31

%

0.06

%

 

0.06

%

0.06

%

0.10

%

0.01

%

Total annual fund operating expenses after fee waiver and/or expense reimbursement(2)

 

1.56

%

2.31

%

2.31

%

1.06

%

1.65

%

1.35

%

1.05

%

1.00

%

 


(1)          For investments over $1 million, a 1.00% maximum deferred sales charge may apply.

(2)          Hartford Funds Management Company, LLC (the “Investment Manager”) has contractually agreed to reimburse expenses (exclusive of taxes, interest expenses, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to the extent necessary to maintain total annual fund operating expenses as follows:  1.60% (Class A), 2.35% (Class B), 2.35% (Class C), 1.35% (Class I), 1.65% (Class R3), 1.35% (Class R4), 1.05% (Class R5) and 1.00% (Class Y).  In addition, Hartford Administrative Services Company (“HASCO”), the Fund’s transfer agent, has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of the average daily net assets per fiscal year for all classes.  Each contractual arrangement will remain in effect until February 28, 2014, and shall renew automatically for one-year terms unless the Investment Manager or HASCO, respectively, provides written notice of termination prior to the start of the next term or upon approval of the Board of Directors of the Fund.

 

2



 

EXAMPLE.   The examples below are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The examples assume that:

 

·                   Your investment has a 5% return each year

·                   The Fund’s operating expenses remain the same

·                   You reinvest all dividends and distributions

·                   You pay any deferred sales charge due for the applicable period.

 

Your actual costs may be higher or lower. Based on these assumptions, for every $10,000 invested, you would pay the following expenses if you sell all of your shares at the end of each time period indicated:

 

Share Classes

 

Year 1

 

Year 3

 

Year 5

 

Year 10

 

A

 

$

700

 

$

1,025

 

$

1,373

 

$

2,352

 

B

 

$

734

 

$

1,085

 

$

1,563

 

$

2,685

 

C

 

$

334

 

$

734

 

$

1,260

 

$

2,702

 

I

 

$

108

 

$

337

 

$

585

 

$

1,294

 

R3

 

$

168

 

$

533

 

$

923

 

$

2,014

 

R4

 

$

137

 

$

440

 

$

765

 

$

1,686

 

R5

 

$

107

 

$

355

 

$

623

 

$

1,389

 

Y

 

$

102

 

$

321

 

$

557

 

$

1,235

 

 

You would pay the following expenses if you did not redeem your shares:

 

Share Classes

 

Year 1

 

Year 3

 

Year 5

 

Year 10

 

A

 

$

700

 

$

1,025

 

$

1,373

 

$

2,352

 

B

 

$

234

 

$

785

 

$

1,363

 

$

2,685

 

C

 

$

234

 

$

734

 

$

1,260

 

$

2,702

 

I

 

$

108

 

$

337

 

$

585

 

$

1,294

 

R3

 

$

168

 

$

533

 

$

923

 

$

2,014

 

R4

 

$

137

 

$

440

 

$

765

 

$

1,686

 

R5

 

$

107

 

$

355

 

$

623

 

$

1,389

 

Y

 

$

102

 

$

321

 

$

557

 

$

1,235

 

 

Portfolio Turnover.   The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio).  A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account.  These costs, which are not reflected in annual Fund operating expenses or in the examples, affect the Fund’s performance.  During the most recent fiscal year, the Fund’s portfolio turnover rate was 61% of the average value of its portfolio.

 

PRINCIPAL INVESTMENT STRATEGY. Under normal circumstances, the Fund invests at least 80% of its assets in equity securities, including non-dollar securities, of foreign small-capitalization companies.  The Fund diversifies its investments among a number of different countries throughout the world, with no limit on the amount of assets that may be invested in each country.  The Fund may trade securities actively.  The Fund’s investment approach is to invest in equity securities of foreign issuers that the sub-adviser, Wellington Management Company, LLP (“Wellington Management”), believes have significant potential for capital appreciation.

 

3



 

The Fund defines small capitalization companies as companies with a market capitalization within the range of the S&P EPAC SmallCap Index.  As of December 31, 2012 this range was approximately $9 million to $17 billion.  The Fund may invest up to 15% of its net assets in securities of companies that conduct their principal business activities in emerging markets or whose securities are traded principally on exchanges in emerging markets.

 

MAIN RISKS.  The primary risks of investing in the Fund are described below.  When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money as a result of your investment.  An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.   As with any fund, there is no guarantee that the Fund will achieve its goal.  For more information regarding risks and investment matters please see “Additional Information Regarding Risks and Investment Strategies” in the Fund’s prospectus.

 

Market Risk – Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably.  Securities may decline in value due to the activities and financial prospects of individual companies or to general market and economic movements and trends.

 

Small Cap Stock Risk – Small capitalization stocks may be more risky than stocks of larger companies.  Historically, small market capitalization stocks and stocks of recently organized companies are subject to increased price volatility due to:

 

·                   less certain growth prospects

·                   lower degree of liquidity in the markets for such stocks

·                   thin trading that could result in the stocks being sold at a discount or in small lots over an extended period of time

·                   limited product lines, markets or financial resources

·                   dependence on a few key management personnel

·                   increased susceptibility to losses and bankruptcy increased transaction costs.

 

Foreign Investments Risk Investments in foreign securities may be riskier than investments in U.S. securities.  Differences between the U.S. and foreign regulatory regimes and securities markets, including the less stringent investor protection and disclosure standards of some foreign markets, as well as political and economic developments in foreign countries and regions, may affect the value of the Fund’s investments in foreign securities.  Changes in currency exchange rates may also adversely affect the Fund’s foreign investments.

 

Investment Strategy Risk - The risk that, if the sub-adviser’s investment strategy does not perform as expected, the Fund could underperform its peers or lose money.  There is no guarantee that the Fund’s investment objective will be achieved.

 

4



 

Active Trading Risk - Active trading could increase the Fund’s transaction costs and may increase your taxable distributions.  These effects may also adversely affect Fund performance.

 

The Fund is subject to certain other risks, which are described in the Fund’s prospectus.

 

PAST PERFORMANCE.   The performance information below indicates the risks of investing in the Fund.  Keep in mind that past performance does not indicate future results.  Updated performance information is available at www.hartfordfunds.com.  The returns:

 

·                   Assume reinvestment of all dividends and distributions

·                   Would be lower if the Fund’s operating expenses had not been limited.

 

The bar chart:

 

·                   Shows how the Fund’s total return has varied from year to year

·                   Does not include the effect of sales charges. If sales charges were reflected in the bar chart, returns would have been lower

·                   Shows the returns of the Fund’s Class A shares.  Because all of the Fund’s shares are invested in the same portfolio of securities, returns for the Fund’s other classes differ only to the extent that the classes do not have the same expenses.

 

Total returns by calendar year (excludes sales charges)

 

GRAPHIC

 

Highest/Lowest quarterly results during the periods shown in the bar chart were:

Highest   28.39% (2nd quarter, 2009)    Lowest -25.27% (3rd quarter, 2008)

 

AVERAGE ANNUAL RETURNS. The table below shows returns for the Fund over time compared to those of a broad-based market index.  After-tax returns, which are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes, are shown only for Class A shares and will vary for other classes.  Returns prior to the inception date of certain classes of shares may reflect returns of another class of shares.  For more information regarding returns see the “Performance Notes” section in the Fund’s prospectus.

 

5



 

Actual after-tax returns, which depend on an investor’s particular tax situation, may differ from those shown and are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

 

Average annual total returns for periods ending December 31, 2012
(including sales charges)

 

Share Classes

 

1 Year

 

5 Years

 

10 Years

 

Class A - Return Before Taxes

 

19.03

%

-1.22

%

10.64

%

- After Taxes on Distributions

 

18.32

%

-1.50

%

8.66

%

- After Taxes on Distributions and Sale of Fund Shares

 

12.37

%

-1.20

%

8.32

%

Share Classes (Return Before Taxes)

 

 

 

 

 

 

 

Class B

 

20.07

%

-1.13

%

10.67

%

Class C

 

24.01

%

-0.84

%

10.43

%

Class I

 

26.44

%

0.29

%

11.52

%

Class R3

 

25.79

%

0.09

%

11.61

%

Class R4

 

26.22

%

0.25

%

11.70

%

Class R5

 

26.63

%

0.40

%

11.78

%

Class Y

 

26.59

%

0.42

%

11.79

%

S&P EPAC SmallCap Index
(reflects no deduction for fees, expenses or taxes)

 

20.43

%

-1.45

%

11.95

%

 

MANAGEMENT.  The Fund’s investment manager is Hartford Funds Management Company, LLC (“HFMC”).  The Fund’s sub-adviser is Wellington Management.

 

Portfolio Manager

 

Title

 

Involved with
Fund Since

Simon H. Thomas

 

Senior Vice President and Equity Portfolio Manager

 

2002

 

 

 

 

 

Daniel Maguire, CFA

 

Director and Equity Research Analyst

 

2004

 

6



 

PURCHASE AND SALE OF FUND SHARES.   Not all share classes are available for all investors.  Minimum investment amounts may be waived for certain accounts.

 

Share Classes

 

Minimum Initial
Investment

 

Minimum

Subsequent

Investment

 

 

 

 

 

Class A

Class C

Class I

 

$2,000 for all accounts except:

 

$250, if establishing an Automatic Investment Plan (“AIP”), with recurring monthly investments of at least $50

 

Class I shares are offered primarily through advisory fee-based wrap programs

 

$

50

 

 

 

 

 

Class B

 

Closed to new investments

 

N/A

 

 

 

 

 

Class R3

Class R4

Class R5

 

No minimum initial investment

 

Offered primarily to employer-sponsored retirement plans

 

None

 

 

 

 

 

Class Y

 

$250,000

 

Offered primarily to certain institutional investors and certain employer-sponsored retirement plans

 

None

 

For more information, please see the “How To Buy And Sell Shares” section of the Fund’s prospectus.

 

You may sell your shares of the Fund on those days when the New York Stock Exchange is open, typically Monday through Friday.  You may sell your shares on the web at www.hartfordfunds.com, by phone by calling 1-888-843-7824, by electronic funds transfer, or by wire.  In certain circumstances you will need to write to The Hartford Mutual Funds, P.O. Box 64387, St. Paul, MN 55164-0387 to request to sell your shares.  For overnight mail, please send the request to The Hartford Mutual Funds, 500 Bielenberg Drive, Suite 500,Woodbury, MN 55125-4459.

 

TAX INFORMATION.   The Fund’s distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account.  Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

 

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES.   If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial advisor to recommend the Fund over another investment.  Ask your financial advisor or visit your financial intermediary’s website for more information.

 

MFSUM-ISC_030113

March 1, 2013

 

7


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