0001144204-19-038413.txt : 20190808 0001144204-19-038413.hdr.sgml : 20190808 20190808091045 ACCESSION NUMBER: 0001144204-19-038413 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20190808 DATE AS OF CHANGE: 20190808 EFFECTIVENESS DATE: 20190808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MUTUAL FUNDS INC/CT CENTRAL INDEX KEY: 0001006415 IRS NUMBER: 000000000 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-02381 FILM NUMBER: 191007721 BUSINESS ADDRESS: STREET 1: 690 LEE ROAD CITY: WAYNE STATE: PA ZIP: 19087 BUSINESS PHONE: 610-386-4068 MAIL ADDRESS: STREET 1: 690 LEE ROAD CITY: WAYNE STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: Hartford Multi-Asset Income & Growth Fund DATE OF NAME CHANGE: 20190501 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD MUTUAL FUNDS INC/CT DATE OF NAME CHANGE: 19970613 FORMER COMPANY: FORMER CONFORMED NAME: ITT HARTFORD MUTUAL FUNDS INC DATE OF NAME CHANGE: 19960226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MUTUAL FUNDS II INC CENTRAL INDEX KEY: 0000049905 IRS NUMBER: 416009937 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-11387 FILM NUMBER: 191007720 BUSINESS ADDRESS: STREET 1: 690 LEE ROAD CITY: WAYNE STATE: PA ZIP: 19087 BUSINESS PHONE: 610-386-4068 MAIL ADDRESS: STREET 1: 690 LEE ROAD CITY: WAYNE STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: Hartford Schroders US MidCap Opportunities Fund DATE OF NAME CHANGE: 20190501 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD MUTUAL FUNDS II INC DATE OF NAME CHANGE: 20020419 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD FORTIS SERIES FUND INC DATE OF NAME CHANGE: 20020215 0000049905 S000004013 THE HARTFORD GROWTH OPPORTUNITIES FUND C000011236 Class A HGOAX C000011238 Class C HGOCX C000011243 Class Y HGOYX C000035166 Class I HGOIX C000040918 Class R3 HGORX C000040919 Class R4 HGOSX C000040920 Class R5 HGOTX C000148302 Class R6 HGOVX C000185805 Class F HGOFX 0000049905 S000004014 THE HARTFORD SMALL CAP GROWTH FUND C000011245 Class A HSLAX C000011247 Class C HSLCX C000011252 Class Y HSLYX C000035167 Class I HSLIX C000040921 Class R3 HSLRX C000040922 Class R4 HSLSX C000040923 Class R5 HSLTX C000148303 Class R6 HSLVX C000185807 Class F HSLFX 0000049905 S000004018 Hartford Quality Value Fund C000011280 Class A HVOAX C000011282 Class C HVOCX C000011287 Class Y HVOYX C000035168 Class I HVOIX C000040924 Class R3 HVORX C000040925 Class R4 HVOSX C000040926 Class R5 HVOTX C000185811 Class F HVOFX C000200562 Class R6 HVOVX 0001006415 S000003571 Hartford Multi-Asset Income and Growth Fund C000009912 Class A ITTAX C000009914 Class C HAFCX C000009915 Class Y IHAYX C000040927 Class R3 ITTRX C000040928 Class R4 ITTSX C000040929 Class R5 ITTTX C000155857 Class I ITTIX C000185693 Class F ITTFX C000200563 Class R6 ITTVX 0001006415 S000003572 THE HARTFORD FLOATING RATE FUND C000009916 Class A HFLAX C000009918 Class C HFLCX C000009919 Class Y HFLYX C000035169 Class I HFLIX C000040930 Class R3 HFLRX C000040931 Class R4 HFLSX C000040932 Class R5 HFLTX C000185695 Class F HFLFX 0001006415 S000003576 THE HARTFORD HEALTHCARE FUND C000009932 Class A HGHAX C000009934 Class C HGHCX C000009935 Class Y HGHYX C000035170 Class I HGHIX C000040933 Class R3 HGHRX C000040934 Class R4 HGHSX C000040935 Class R5 HGHTX C000185697 Class F HGHFX C000211746 Class R6 HGHVX 0001006415 S000003579 THE HARTFORD GROWTH ALLOCATION FUND C000009944 Class A HRAAX C000009946 Class C HRACX C000035171 Class I HRAIX C000040939 Class R3 HRARX C000040940 Class R4 HRASX C000040941 Class R5 HRATX C000185699 Class F HRAFX 0001006415 S000003580 THE HARTFORD HIGH YIELD FUND C000009947 Class A HAHAX C000009949 Class C HAHCX C000009950 Class Y HAHYX C000040942 Class R3 HAHRX C000040943 Class R4 HAHSX C000040944 Class R5 HAHTX C000049003 Class I HAHIX C000185702 Class F HAHFX 0001006415 S000003584 THE HARTFORD INFLATION PLUS FUND C000009961 Class A HIPAX C000009963 Class C HIPCX C000009964 Class Y HIPYX C000035174 Class I HIPIX C000040951 Class R3 HIPRX C000040952 Class R4 HIPSX C000040953 Class R5 HIPTX C000185705 Class F HIPFX 0001006415 S000003585 THE HARTFORD INTERNATIONAL GROWTH FUND C000009965 Class A HNCAX C000009967 Class C HNCCX C000009968 Class Y HNCYX C000035175 Class I HNCJX C000040954 Class R3 HNCRX C000040955 Class R4 HNCSX C000040956 Class R5 HNCTX C000185707 Class F HNCFX C000200564 Class R6 HNCUX 0001006415 S000003586 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND C000009969 Class A IHOAX C000009971 Class C HIOCX C000009972 Class Y HAOYX C000040957 Class R3 IHORX C000040958 Class R4 IHOSX C000040959 Class R5 IHOTX C000064694 Class I IHOIX C000148292 Class R6 IHOVX C000185709 Class F IHOFX 0001006415 S000003587 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND C000009973 Class A HNSAX C000009975 Class C HNSCX C000009976 Class Y HNSYX C000049004 Class I HNSJX C000089740 Class R3 HNSRX C000089741 Class R4 HNSSX C000089742 Class R5 HNSTX C000185711 Class F HNSFX 0001006415 S000003588 THE HARTFORD MIDCAP FUND C000009977 Class A HFMCX C000009979 Class C HMDCX C000009980 Class Y HMDYX C000074606 Class I HFMIX C000077363 Class R3 HFMRX C000077364 Class R4 HFMSX C000077365 Class R5 HFMTX C000148293 Class R6 HFMVX C000185713 Class F HMDFX 0001006415 S000003589 THE HARTFORD MIDCAP VALUE FUND C000009981 Class A HMVAX C000009983 Class C HMVCX C000009984 Class Y HMVYX C000089743 Class R4 HMVSX C000089744 Class R5 HMVTX C000089745 Class I HMVJX C000089746 Class R3 HMVRX C000185715 Class F HMVFX 0001006415 S000003592 HARTFORD SMALL CAP VALUE FUND C000009993 Class A HSMAX C000009995 Class C HTSCX C000009996 Class Y HSMYX C000105487 Class R3 HSMRX C000105488 Class R4 HSMSX C000105489 Class R5 HSMTX C000155858 Class I HSEIX C000185717 Class F HSMFX C000200565 Class R6 HSMVX 0001006415 S000003593 HARTFORD MODERATE ALLOCATION FUND C000009997 Class A HBAAX C000009999 Class C HBACX C000035176 Class I HBAIX C000040966 Class R3 HBARX C000040967 Class R4 HBASX C000040968 Class R5 HBATX C000185719 Class F HBADX 0001006415 S000003596 THE HARTFORD SHORT DURATION FUND C000010008 Class A HSDAX C000010010 Class C HSDCX C000010011 Class Y HSDYX C000085295 Class I HSDIX C000105490 Class R3 HSDRX C000105491 Class R4 HSDSX C000105492 Class R5 HSDTX C000185721 Class F HSDFX C000211747 Class R6 HSDVX 0001006415 S000003597 THE HARTFORD SMALL COMPANY FUND C000010012 Class A IHSAX C000010014 Class C HSMCX C000010015 Class Y HSCYX C000035177 Class I IHSIX C000040969 Class R3 IHSRX C000040970 Class R4 IHSSX C000040971 Class R5 IHSUX C000148294 Class R6 IHSVX C000185723 Class F IHSFX 0001006415 S000003604 THE HARTFORD CAPITAL APPRECIATION FUND C000010038 Class A ITHAX C000010040 Class C HCACX C000010041 Class Y HCAYX C000035178 Class I ITHIX C000040984 Class R3 ITHRX C000040985 Class R4 ITHSX C000040986 Class R5 ITHTX C000148295 Class R6 ITHVX C000185725 Class F HCAFX 0001006415 S000003605 THE HARTFORD TOTAL RETURN BOND FUND C000010042 Class A ITBAX C000010044 Class C HABCX C000010045 Class Y HABYX C000035179 Class I ITBIX C000040987 Class R3 ITBRX C000040988 Class R4 ITBUX C000040989 Class R5 ITBTX C000148296 Class R6 ITBVX C000185727 Class F ITBFX 0001006415 S000003608 THE HARTFORD CONSERVATIVE ALLOCATION FUND C000010054 Class A HCVAX C000010056 Class C HCVCX C000035181 Class I HCVIX C000040996 Class R3 HCVRX C000040997 Class R4 HCVSX C000040998 Class R5 HCVTX C000185731 Class F HCVFX 0001006415 S000003609 HARTFORD CORE EQUITY FUND C000010057 Class A HAIAX C000010059 Class C HGICX C000010060 Class Y HGIYX C000040999 Class R3 HGIRX C000041000 Class R4 HGISX C000041001 Class R5 HGITX C000155859 Class I HGIIX C000155860 Class R6 HAITX C000179839 Class F HGIFX C000179840 Class T 0001006415 S000003610 THE HARTFORD DIVIDEND AND GROWTH FUND C000010061 Class A IHGIX C000010063 Class C HDGCX C000010064 Class Y HDGYX C000035182 Class I HDGIX C000041002 Class R3 HDGRX C000041003 Class R4 HDGSX C000041004 Class R5 HDGTX C000148297 Class R6 HDGVX C000185733 Class F HDGFX 0001006415 S000003611 THE HARTFORD EQUITY INCOME FUND C000010065 Class A HQIAX C000010067 Class C HQICX C000010068 Class Y HQIYX C000035183 Class I HQIIX C000041005 Class R3 HQIRX C000041006 Class R4 HQISX C000041007 Class R5 HQITX C000148298 Class R6 HQIVX C000185735 Class F HQIFX 0001006415 S000012949 THE HARTFORD BALANCED INCOME FUND C000034969 Class A HBLAX C000034971 Class C HBLCX C000034972 Class Y HBLYX C000085296 Class I HBLIX C000089747 Class R3 HBLRX C000089748 Class R4 HBLSX C000089749 Class R5 HBLTX C000148299 Class R6 HBLVX C000185737 Class F HBLFX 0001006415 S000017745 THE HARTFORD CHECKS AND BALANCES FUND C000048992 Class A HCKAX C000048994 Class C HCKCX C000059904 Class I HCKIX C000068458 Class R3 HCKRX C000068459 Class R4 HCKSX C000068460 Class R5 HCKTX C000185739 Class F HCKFX 0001006415 S000017746 THE HARTFORD MUNICIPAL OPPORTUNITIES FUND C000048995 Class A HHMAX C000048997 Class C HHMCX C000048998 Class I HHMIX C000185741 Class F HHMFX C000200566 Class Y HHMYX 0001006415 S000017747 THE HARTFORD STRATEGIC INCOME FUND C000048999 Class C HSNCX C000049000 Class I HSNIX C000049001 Class A HSNAX C000052097 Class Y HSNYX C000105493 Class R3 HSNRX C000105494 Class R4 HSNSX C000105495 Class R5 HSNTX C000148300 Class R6 HSNVX C000185743 Class F HSNFX 0001006415 S000022584 Hartford International Equity Fund C000065302 Class A HDVAX C000065304 Class C HDVCX C000065305 Class Y HDVYX C000065306 Class I HDVIX C000065307 Class R3 HDVRX C000065308 Class R4 HDVSX C000065309 Class R5 HDVTX C000185747 Class F HDVFX C000200567 Class R6 HDVVX 0001006415 S000029044 The Hartford Global All-Asset Fund C000089166 Class A HLAAX C000089167 Class C HLACX C000089168 Class I HLAIX C000089169 Class R3 HLARX C000089170 Class R4 HLASX C000089171 Class R5 HLATX C000089172 Class Y HLAYX C000185749 Class F HLAFX C000200568 Class R6 HLAUX 0001006415 S000029045 The Hartford Global Real Asset Fund C000089173 Class I HRLIX C000089174 Class R3 HRLRX C000089175 Class R4 HRLSX C000089176 Class R5 HRLTX C000089177 Class Y HRLYX C000089178 Class A HRLAX C000089179 Class C HRLCX C000185751 Class F HRLFX 0001006415 S000029046 The Hartford International Value Fund C000089180 Class A HILAX C000089181 Class C HILCX C000089182 Class I HILIX C000089183 Class R3 HILRX C000089184 Class R4 HILSX C000089185 Class R5 HILTX C000089186 Class Y HILYX C000185753 Class F HILDX C000211748 Class R6 HILUX 0001006415 S000032809 The Hartford Emerging Markets Local Debt Fund C000101254 Class A HLDAX C000101255 Class C HLDCX C000101256 Class I HLDIX C000101257 Class R3 HLDRX C000101258 Class R4 HLDSX C000101259 Class R5 HLDTX C000101260 Class Y HLDYX C000185755 Class F HLDFX 0001006415 S000032810 Hartford Emerging Markets Equity Fund C000101261 Class I HERIX C000101262 Class R3 HERRX C000101263 Class R4 HERSX C000101264 Class R5 HERTX C000101265 Class Y HERYX C000101266 Class A HERAX C000101267 Class C HERCX C000185757 Class F HERFX C000200569 Class R6 HERVX 0001006415 S000032811 The Hartford World Bond Fund C000101268 Class A HWDAX C000101269 Class C HWDCX C000101270 Class I HWDIX C000101271 Class R3 HWDRX C000101272 Class R4 HWDSX C000101273 Class R5 HWDTX C000101274 Class Y HWDYX C000148301 Class R6 HWDVX C000185759 Class F HWDFX 0001006415 S000034093 The Hartford Floating Rate High Income Fund C000105103 Class A HFHAX C000105104 Class C HFHCX C000105105 Class I HFHIX C000105106 Class R3 HFHRX C000105107 Class R4 HFHSX C000105108 Class R5 HFHTX C000105109 Class Y HFHYX C000185761 Class F HFHFX 0001006415 S000039124 The Hartford Quality Bond Fund C000120373 Class A HQBAX C000120374 Class C HQBCX C000120375 Class I HQBIX C000120376 Class R3 HQBRX C000120377 Class R4 HQBSX C000120378 Class R5 HQBTX C000120379 Class Y HQBYX C000185763 Class F HQBFX 0001006415 S000045314 Hartford AARP Balanced Retirement Fund C000141065 Class A HAFAX C000141066 Class C HAICX C000141067 Class I HAFIX C000141068 Class R3 HAFRX C000141069 Class R4 HAFSX C000141070 Class R5 HAFTX C000141071 Class Y HAFYX C000185767 Class F HAFDX C000211749 Class R6 HAFVX 0001006415 S000049412 Hartford Municipal Income Fund C000156246 Class A HMKAX C000156247 Class C HMKCX C000156248 Class I HMKIX C000185771 Class F HMKFX 0001006415 S000049413 Hartford Municipal Short Duration Fund C000156249 Class A HMJAX C000156250 Class C HMJCX C000156251 Class I HMJIX C000185773 Class F HMJFX 0001006415 S000053012 Hartford Environmental Opportunities Fund C000166660 Class A HEOMX C000166661 Class C HEONX C000166662 Class I HEOIX C000166663 Class R3 HEORX C000166664 Class R4 HEOSX C000166665 Class R5 HEOTX C000166666 Class R6 HEOVX C000166667 Class Y HEOYX C000185775 Class F HEOFX 0001006415 S000055770 Hartford Global Impact Fund C000175596 Class A HGXAX C000175597 Class C HGXCX C000175598 Class I HGXIX C000175599 Class R3 HGXRX C000175600 Class R4 HGXSX C000175601 Class R5 HGXTX C000175602 Class R6 HGXVX C000175603 Class Y HGXYX C000185166 Class F HGXFX 497 1 tv527037_497.htm HARTFORD COMBINED RETAIL FUNDS

AUGUST 8, 2019

 

SUPPLEMENT TO THE

COMBINED STATEMENT OF ADDITIONAL INFORMATION

FOR THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.

DATED MARCH 1, 2019, AS RESTATED JULY 10, 2019

 

This Supplement contains new and additional information and should be read in connection with your Statement of Additional Information (“SAI”).

 

1.Effective as of the close of business on July 11, 2019, the Hartford Long/Short Global Equity Fund was liquidated pursuant to a plan of liquidation. Accordingly, all references to the Hartford Long/Short Global Equity Fund and Long/Short Global Equity Fund are deleted in their entirety from the above referenced SAI.

 

2.Effective on or about November 8, 2019, the Hartford Environmental Opportunities Fund will be renamed as the Hartford Climate Opportunities Fund. In addition, as of the same date, Schroder Investment Management North America Inc. (“SIMNA”), with Schroder Investment Management North America Limited as the sub-sub-adviser (“SIMNA Ltd.”, together with SIMNA, “Schroders”), will serve as an additional sub-adviser to the Hartford Climate Opportunities Fund. Accordingly, the defined term “sub-adviser” in the SAI should also be read to apply to Schroders as the context requires.

 

3.Mr. William P. Johnston, who has served as a member of the Board of Directors of The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the “Companies”) since 2005 and served as Chairman of the Companies since 2015, is retiring in September 2019. In connection with Mr. Johnston’s retirement, the Board has appointed Mr. Lynn S. Birdsong as Chairman.

 

4.Under the heading “FUND MANAGEMENT,” the information for Laura S. Quade in the Officers and Interested Directors table is deleted.

 

5.Under the heading “INVESTMENT MANAGEMENT ARRANGEMENTS,” the following information is added:

 

With respect to the Climate Opportunities Fund, HFMC has entered into an investment sub-advisory agreement with SIMNA. Under the investment sub-advisory agreement, SIMNA, subject to the general supervision of The Hartford Mutual Funds, Inc. Board of Directors and HFMC, is responsible for (among other things) the investment and reinvestment of the assets of the Climate Opportunities Fund and furnishing the Climate Opportunities Fund with advice and recommendations with respect to investments and the purchase and sale of appropriate securities for the Climate Opportunities Fund. With respect to the Climate Opportunities Fund, SIMNA has entered into a secondary investment sub-advisory agreement with SIMNA Ltd. under which SIMNA Ltd. is responsible for (among other things) assisting SIMNA in the investment and reinvestment of the assets of the Climate Opportunities Fund and furnishing of such Fund with advice and recommendations with respect to investments and the purchase and sale of appropriate securities for such Fund.

 

Pursuant to the Schroders investment sub-advisory agreement, Schroders shall exercise its best judgment in rendering services under the sub-advisory agreement. Schroders shall not be liable for any error of judgment or mistake of law or for any loss suffered by The Hartford Mutual Funds, Inc., HFMC, or the Climate Opportunities Fund in connection with the matters to which the sub-advisory agreement relates except a loss resulting from the Schroders’ willful misfeasance, bad faith or negligence in the performance of its obligations and duties.

 

SIMNA (itself and its predecessors) has been an investment manager since 1962, and serves as investment adviser to mutual funds and a broad range of institutional investors. Schroders plc, SIMNA’s ultimate parent, is a global asset management company, which had investment management authority with respect to approximately $565.5 billion in assets as of June 30, 2019. Schroders plc and its affiliates have clients that are major financial institutions including banks and insurance companies, public and private pension funds, endowments and foundations, high net worth individuals, financial intermediaries and retail investors. Schroders plc has one of the largest networks of offices of any dedicated asset management company with numerous portfolio managers and analysts covering the world’s investment markets.

 

6.Under the heading “INVESTMENT MANAGEMENT ARRANGEMENTS – MANAGEMENT FEES,” the management fee schedule for the Emerging Markets Local Debt Fund is deleted in its entirety and the following is added:

 

Emerging Markets Local Debt Fund (prior to November 1, 2019)

AVERAGE DAILY NET ASSETS ANNUAL RATE
First $250 million 0.8500%
Next $250 million 0.8000%
Next $500 million 0.7700%
Amount Over $1 billion 0.7600%
 

 

Emerging Markets Local Debt Fund (effective November 1, 2019)

AVERAGE DAILY NET ASSETS ANNUAL RATE
First $500 million 0.7500%
Next $500 million 0.7000%
Amount Over $1 billion 0.6900%

 

7.Under the heading “INVESTMENT MANAGEMENT ARRANGEMENTS – ADVISORY FEE PAYMENT HISTORY,” the following footnote is added next to the Emerging Markets Local Debt Fund in the table that describes the contractual reimbursement of expenses:

 

4Effective November 1, 2019, HFMC 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: 1.18% (Class A), 1.93% (Class C), 0.93% (Class I), 1.48% (Class R3), 1.18% (Class R4), 0.88% (Class R5), 0.88% (Class Y), and 0.83% (Class F). This contractual arrangement will remain in effect until February 28, 2021 unless the Board of Directors of The Hartford Mutual Funds, Inc. approves its earlier termination.

 

8.Under the heading “PORTFOLIO MANAGERS – OTHER ACCOUNTS MANAGED OR SUB-ADVISED BY WELLINGTON MANAGEMENT PORTFOLIO MANAGERS,” the following information is added under Balanced Income Fund:

 

FUND AND PORTFOLIO MANAGER NUMBER OF ACCOUNTS

ASSETS MANAGED

(in millions)

 NUMBER OF ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

TOTAL ASSETS IN ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

(in millions)

Balanced Income Fund
Adam Illfelder*        
Other Registered Investment Companies 4 $3,284 0 $0
Other Pooled Investment Vehicles 2 $438 0 $0
Other Accounts 1 $19 0 $0
Matthew Hand*        
Other Registered Investment Companies 0 $0 0 $0
Other Pooled Investment Vehicles 0 $0 0 $0
Other Accounts 0 $0 0 $0
*Information as of June 30, 2019

 

9.Under the heading “PORTFOLIO MANAGERS – OTHER ACCOUNTS MANAGED OR SUB-ADVISED BY WELLINGTON MANAGEMENT PORTFOLIO MANAGERS,” the following information is added under Dividend and Growth Fund:

 

FUND AND PORTFOLIO MANAGER NUMBER OF ACCOUNTS

ASSETS MANAGED

(in millions)

 NUMBER OF ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

TOTAL ASSETS IN ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

(in millions)

Dividend and Growth Fund
Nataliya Kofman*        
Other Registered Investment Companies 1 $639.8 1 $639.8
Other Pooled Investment Vehicles 4 $189.2 2 $91.4
Other Accounts 7 $1,594 1 $356
*Information as of June 30, 2019

 

10.Under the heading “PORTFOLIO MANAGERS – OTHER ACCOUNTS MANAGED OR SUB-ADVISED BY WELLINGTON MANAGEMENT PORTFOLIO MANAGERS,” the following information is added under Equity Income Fund:

 

FUND AND PORTFOLIO MANAGER NUMBER OF ACCOUNTS

ASSETS MANAGED

(in millions)

 NUMBER OF ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

TOTAL ASSETS IN ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

(in millions)

Equity Income Fund
Adam Illfelder*        
Other Registered Investment Companies 4 $3,284 0 $0
Other Pooled Investment Vehicles 2 $438 0 $0
Other Accounts 1 $19 0 $0
Matthew Hand*        
 

 

FUND AND PORTFOLIO MANAGER NUMBER OF ACCOUNTS

ASSETS MANAGED

(in millions)

 NUMBER OF ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

TOTAL ASSETS IN ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

(in millions)

Other Registered Investment Companies 0 $0 0 $0
Other Pooled Investment Vehicles 0 $0 0 $0
Other Accounts 0 $0 0 $0
*Information as of June 30, 2019

 

11.Under the heading “PORTFOLIO MANAGERS – COMPENSATION OF WELLINGTON MANAGEMENT PORTFOLIO MANAGERS,” the information for Balanced Income Fund is deleted in its entirety and replaced with the following:

 

FUND BENCHMARK(S) / PEER GROUPS FOR INCENTIVE PERIOD(1)
Balanced Income Fund

Russell 1000 Value Index (Reckmeyer, Link, Illfelder, and Hand)

Lipper Equity Income (Reckmeyer, Link, Illfelder, and Hand)

Bloomberg Barclays Corporate (80%); Bloomberg Barclays HY 2% Issuer Capped (10%); JP Morgan Emerging Markets Bond Index Plus (10%) (St. John)

 

12.Under the heading “PORTFOLIO MANAGERS – EQUITY SECURITIES BENEFICIALLY OWNED BY WELLINGTON MANAGEMENT PORTFOLIO MANAGERS” the following information is added:

 

PORTFOLIO MANAGER FUND(S) SUB-ADVISED DOLLAR RANGE OF EQUITY SECURITIES BENEFICIALLY OWNED
Matthew Hand*

Balanced Income Fund

Equity Income Fund

None

$100,001-$500,000

Adam Illfelder**

Balanced Income Fund

Equity Income Fund

None

$100,001-$500,000

Nataliya Kofman*** Dividend and Growth Fund None
*Mr. Hand became a portfolio manager to the Balanced Income Fund and Equity Income Fund effective August 8, 2019. The information in the chart is as of June 30, 2019.
**Mr. Illfelder became a portfolio manager to the Balanced Income Fund and Equity Income Fund effective August 8, 2019. The information in the chart is as of June 30, 2019.
***Ms. Kofman became a portfolio manager to the Dividend and Growth Fund effective August 8, 2019. The information in the chart is as of June 30, 2019.

 

13.Under the heading “PORTFOLIO MANAGERS,” the information for Tara C. Stilwell within the additional portfolio managers’ table for International Equity Fund is deleted in its entirety and replaced with the following:

 

International Equity Fund
Additional Portfolio Managers Compensation Benchmarks/Peer Group*
Peter Fisher MSCI EAFE / International Multi-Cap Core**
**Information as of July 31, 2019

 

14.Under the heading “PORTFOLIO MANAGERS,” the information relating to Schroders as additional sub-advisers and portfolio manager to the Hartford Climate Opportunities Fund, the following information is added:

 

OTHER ACCOUNTS MANAGED OR SUB-ADVISED BY SCHRODERS PORTFOLIO MANAGER

 

FUND AND PORTFOLIO MANAGER NUMBER OF ACCOUNTS

ASSETS MANAGED

(in millions)

 NUMBER OF ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

TOTAL ASSETS IN ACCOUNTS WHERE ADVISORY FEE IS BASED ON ACCOUNT PERFORMANCE

(in millions)

Climate Opportunities Fund
Simon Webber*        
Other Registered Investment Companies 6 $16,713.7 3 $15,982.9
Other Pooled Investment Vehicles 5 $805.8 0 $0
Other Accounts 12 $2,522.1 0 $0
*Information as of June 30, 2019

 

 

 

CONFLICTS OF INTEREST BETWEEN THE FUND SUB-ADVISED BY SCHRODERS’ PORTFOLIO MANAGER AND OTHER ACCOUNTS

 

Whenever a portfolio manager of the Fund manages other accounts, potential conflicts of interest exist, including potential conflicts between the investment strategy of the Fund and the investment strategy of the other accounts. For example, in certain instances, a portfolio manager may take conflicting positions in a particular security for different accounts, by selling a security for one account and continuing to hold it for another account. In addition, the fact that other accounts require the portfolio manager to devote less than all of his or her time to the Fund may be seen itself to constitute a conflict with the interest of the Fund.

 

Each portfolio manager may also execute transactions for another fund or account at the direction of such fund or account that may adversely impact the value of securities held by the Fund. Securities selected for funds or accounts other than such Fund may outperform the securities selected for the Fund. Finally, if the portfolio manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the Fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity across all eligible funds and accounts. Schroders’ policies, however, require that portfolio managers allocate investment opportunities among accounts managed by them in an equitable manner over time. Orders are normally allocated on a pro rata basis, except that in certain circumstances, such as the small size of an issue, orders will be allocated among clients in a manner believed by Schroders to be fair and equitable over time.

 

The structure of a portfolio manager’s compensation may give rise to potential conflicts of interest. A portfolio manager’s base pay tends to increase with additional and more complex responsibilities that include increased assets under management, which indirectly links compensation to sales. Also, potential conflicts of interest may arise since the structure of Schroders’ compensation may vary from account to account.

 

Schroders has adopted certain compliance procedures that are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and every situation where a conflict arises.

 

COMPENSATION OF SCHRODERS’ PORTFOLIO MANAGER

 

Schroders receives a fee based on the assets under management of the Fund as set forth in the Investment Sub-Advisory Agreement between SIMNA and HFMC on behalf of the Fund. Schroders pays its investment professionals out of its total revenues, including the advisory fees earned with respect to the Fund. The following information relates to the fiscal year ended October 31, 2018.

 

Schroders’ methodology for measuring and rewarding the contribution made by portfolio managers combines quantitative measures with qualitative measures. The Funds’ portfolio managers are compensated for their services to the Funds and to other accounts they manage in a combination of base salary and annual discretionary bonus, as well as the standard retirement, health and welfare benefits available to all Schroders employees. Certain fund managers may also receive awards under a long-term incentive program. Base salary of Schroders’ employees is determined by reference to the level of responsibility inherent in the role and the experience of the incumbent, is benchmarked annually against market data to ensure that Schroders is paying competitively. Schroders’ reviews base salaries annually, targeting increases at employees whose roles have increased in scope materially during the year and those whose salary is behind market rates. At more senior levels, base salaries tend to be adjusted less frequently as the emphasis is increasingly on the discretionary bonus.

 

Discretionary bonuses for portfolio managers may be comprised of an agreed contractual floor, a revenue component and/or a discretionary component. Any discretionary bonus is determined by a number of factors. At a macro level the total amount available to spend is a function of the bonus to pre-bonus profit ratio before tax and the compensation to revenue ratio achieved by Schroders globally. Schroders then assesses the performance of the division and of a management team to determine the share of the aggregate bonus pool that is spent in each area. This focus on “team” maintains consistency and minimizes internal competition that may be detrimental to the interests of Schroders’ clients. For each team, Schroders assesses the performance of their funds relative to competitors and to relevant benchmarks (which may be internally-and/or externally-based and are considered over a range of performance periods), the level of funds under management, and the level of performance fees generated, if any. Schroders also reviews “softer” factors such as leadership, contribution to other parts of the business, and an assessment of the employee’s behavior and the extent to which it is in line with our corporate values of excellence, integrity, teamwork, passion and innovation.

 

For those employees receiving significant bonuses, a part may be deferred in the form of Schroders plc stock and fund-based awards of notional cash investments in a range of Schroders Funds. These deferrals vest over a period of three years and are designed to ensure that the interests of the employees are aligned with those of the shareholders of Schroders.

 

For the purposes of determining the portfolio manager’s bonuses, the relevant benchmarks for performance comparison include as of June 30, 2019 below:

 

Fund/Portfolio Manager Benchmark
Climate Opportunities Fund / Simon Webber Blend of Global Benchmarks and achieving certain internal targets during the previous 12-month period  

 

 

 

EQUITY SECURITIES BENEFICIALLY OWNED BY SCHRODERS PORTFOLIO MANAGER

 

As of June 30, 2019, Mr. Webber did not own any shares of the Climate Opportunities Fund.

 

15.The first sentence in the second paragraph under the heading “PORTFOLIO TRANSACTIONS AND BROKERAGE” is replaced with the following:

 

Subject to any policy established by each Company’s Board of Directors and HFMC, each Sub-Adviser is primarily responsible for the investment decisions of the Fund(s) it sub-advises and the placing of its portfolio transactions.

 

16.Under the heading “PROXY VOTING POLICIES AND PROCEDURES,” the proxy voting policy for Schroders is added:

 

SUMMARY OF SIMNA AND SIMNA LTD. PROXY VOTING POLICY

 

Proxy Voting General Principles

 

SIMNA and SIMNA Ltd. (collectively, “Schroders”) will evaluate and usually vote for or against all proxy requests relating to securities held in any account managed by Schroders (unless this responsibility has been retained by the client).

 

Proxies will be treated and evaluated with the same attention and investment skill as the trading of securities in the accounts.

 

Proxies will be voted in a manner that is deemed most likely to protect and enhance the longer term value of the security as an asset to the account.

 

Corporate Governance Committee

 

The Corporate Governance Committee for the Schroders Group consists of investment professionals and other officers and coordinates with Schroders to ensure compliance with this proxy voting policy. The Committee meets on a periodic basis to review proxies voted, policy guidelines and to examine any issues raised, including a review of any votes cast in connection with controversial issues.

 

The procedure for evaluating proxy requests is as follows:

 

The Schroders’ Group Corporate Governance Team (the “Team”) provides an initial evaluation of the proxy request, seeks advice where necessary, especially from the U.S. small cap and mid cap product heads, and consults with portfolio managers who have invested in the company should a controversial issue arise.

 

When coordinating proxy-voting decisions, the Team generally adheres to the Group Environmental, Social & Governance Policy (the “Policy”), as revised from time to time. The Policy, which has been approved by the Corporate Governance Committee, sets forth Schroder Group positions on recurring issues and criteria for addressing non-recurring issues. The Corporate Governance Committee exercises oversight to assure that proxies are voted in accordance with the Policy and that any votes inconsistent with the Policy or against management are appropriately documented.

 

The Team uses Institutional Shareholder Services, Inc. (“ISS”) to assist in voting proxies. ISS provides proxy research, voting and vote-reporting services. ISS’s primary function is to apprise the Team of shareholder meeting dates of all securities holdings, translate proxy materials received from companies, provide associated research and provide considerations and recommendations for voting on particular proxy proposals. Although Schroders may consider ISS’s and others’ recommendations on proxy issues, Schroders bears ultimate responsibility for proxy voting decisions.

 

Schroders may also consider the recommendations and research of other providers, including the National Association of Pension Funds’ Voting Issues Service.

 

Conflicts

 

From time to time, proxy voting proposals may raise conflicts between the interests of Schroders’ clients and the interests of Schroders and/or its employees. Schroders has adopted this policy and procedures to ensure that decisions to vote the proxies are based on the clients’ best interests.

 

For example, conflicts of interest may arise when:

 

·Proxy votes regarding non-routine matters are solicited by an issuer that, directly or indirectly, has a client relationship with Schroders;
·A proponent of a proxy proposal has a client relationship with Schroders;
·A proponent of a proxy proposal has a business relationship with Schroders;
·Schroders has business relationships with participants in proxy contests, corporate directors or director candidates;

 

Schroders is responsible for identifying proxy voting proposals that may present a material conflict of interest. If Schroders receives a proxy relating to an issuer that raises a conflict of interest, the Team shall determine whether the conflict is “material” to any specific proposal included within the proxy. Schroders (or the Team on behalf of Schroders) will determine whether a proposal is material as follows:

 

 

 

·Routine Proxy Proposals: Proxy proposals that are “routine” shall be presumed not to involve a material conflict of interest unless Schroders has actual knowledge that a routine proposal should be treated as material. For this purpose, “routine” proposals would typically include matters such as uncontested election of directors, meeting formalities, and approval of an annual report/financial statements.

 

·Non-Routine Proxy Proposals: Proxy proposals that are “non-routine” will be presumed to involve a material conflict of interest, unless Schroders determines that neither Schroders nor its personnel have a conflict of interest or the conflict is unrelated to the proposal in question. For this purpose, “non-routine” proposals would typically include any contested matter, including a contested election of directors, a merger or sale of substantial assets, a change in the articles of incorporation that materially affects the rights of shareholders, and compensation matters for management (e.g., stock, option plans, retirement plans, profit-sharing or other special remuneration plans). If Schroders determines that there is, or may be perceived to be, a conflict of interest when voting a proxy, Schroders will address matters involving such conflicts of interest as follows:

 

A.If a proposal is addressed by the Policy, Schroders will vote in accordance with such Policy;

 

B.If Schroders believes it is in the best interests of clients to depart from the Policy, Schroders will be subject to the requirements of C or D below, as applicable;

 

C.If the proxy proposal is (1) not addressed by the Policy or (2) requires a case-by-case determination, Schroders may vote such proxy as it determines to be in the best interest of clients, without taking any action described in D below, provided that such vote would be against Schroders’ own interest in the matter (i.e., against the perceived or actual conflict). The rationale of such vote will be memorialized in writing; and

 

D.If the proxy proposal is (1) not addressed by the Policy or (2) requires a case-by-case determination, and Schroders believes it should vote in a way that may also benefit, or be perceived to benefit, its own interest, then Schroders must take one of the following actions in voting such proxy: (a) vote in accordance with ISS’ recommendation; (b) in exceptional cases, inform the client(s) of the conflict of interest and obtain consent to vote the proxy as recommended by Schroders; or (c) obtain approval of the decision from the Chief Compliance Officer and the Chief Investment Officer (the rationale of such vote will be memorialized in writing). Where the director of a company is also a director of Schroders plc, Schroders will vote in accordance with ISS’ recommendation.

 

Voting Coverage

 

Schroders recognizes its responsibility to make considered use of voting rights. The overriding principle governing our approach to voting is to act in line with its fiduciary responsibilities in what we deem to be the interests of its clients.

 

Schroders normally hopes to support company management; however, it will withhold support or oppose management if it believes that it is in the best interests of its clients to do so.

 

Schroders votes on a variety of resolutions; however the majority of resolutions target specific corporate governance issues which are required under local stock exchange listing requirements, including but not limited to: approval of directors, accepting reports and accounts, approval of incentive plans, capital allocation, reorganizations and mergers. Schroders does vote on both shareholder and management resolutions.

 

Schroders Corporate Governance specialists assess resolutions, applying its voting policy and guidelines (as outlined in its Environmental, Social and Governance Policy) to each agenda item. These specialists draw on external research, such as the Investment Association’s Institutional Voting Information Services, the Institutional Shareholder Services (ISS), and public reporting.

 

Schroders’ own research is also integral to our process and this will be conducted by both our investment and ESG analysts. Corporate Governance specialists will consult with the relevant analysts and portfolio managers to seek their view and better understand the corporate context. The final decision will reflect what investors and Corporate Governance specialists believe to be in the best long term interest of their client. When voting, where there is insufficient information with which to make a voting decision Schroders may not vote.

 

In order to maintain the necessary flexibility to meet client needs, local offices of Schroders may determine a voting policy regarding the securities for which they are responsible, subject to agreement with clients as appropriate, and/or addressing local market issues. Both Japan and Australia have these.

 

Schroders UK Stewardship Code Statement outlines its approach in this area in more detail for all of its international holdings and is publically available.

 

October 2018

 

 

 

This Supplement should be retained with your SAI for future reference.