The Hartford Dividend and Growth Fund

 

Summary Prospectus

The Hartford Mutual Funds

March 1, 2013

 

Class

 

Ticker

A

 

IHGIX

B

 

ITDGX

C

 

HDGCX

I

 

HDGIX

R3

 

HDGRX

R4

 

HDGSX

R5

 

HDGTX

Y

 

HDGYX

 

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 a high level of current income consistent with growth of capital.

 



 

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

 

0.61

%

0.61

%

0.61

%

0.61

%

0.61

%

0.61

%

0.61

%

0.61

%

Distribution and service (12b-1) fees

 

0.25

%

1.00

%

1.00

%

 

0.50

%

0.25

%

 

 

Other expenses

 

0.22

%

0.41

%

0.21

%

0.20

%

0.25

%

0.19

%

0.14

%

0.04

%

Total annual fund operating expenses

 

1.08

%

2.02

%

1.82

%

0.81

%

1.36

%

1.05

%

0.75

%

0.65

%

Fee waiver and/or expense reimbursement(2)

 

 

0.07

%

 

 

0.01

%

 

 

 

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

 

1.08

%

1.95

%

1.82

%

0.81

%

1.35

%

1.05

%

0.75

%

0.65

%

 


(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:  1.25% (Class A), 1.00% (Class I), 1.35% (Class R3), 1.05% (Class R4) and 0.75% (Class R5).  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

 

$

654

 

$

875

 

$

1,113

 

$

1,795

 

B

 

$

698

 

$

927

 

$

1,282

 

$

2,100

 

C

 

$

285

 

$

573

 

$

985

 

$

2,137

 

I

 

$

83

 

$

259

 

$

450

 

$

1,002

 

R3

 

$

137

 

$

430

 

$

744

 

$

1,634

 

R4

 

$

107

 

$

334

 

$

579

 

$

1,283

 

R5

 

$

77

 

$

240

 

$

417

 

$

930

 

Y

 

$

66

 

$

208

 

$

362

 

$

810

 

 

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

 

Share Classes

 

Year 1

 

Year 3

 

Year 5

 

Year 10

 

A

 

$

654

 

$

875

 

$

1,113

 

$

1,795

 

B

 

$

198

 

$

627

 

$

1,082

 

$

2,100

 

C

 

$

185

 

$

573

 

$

985

 

$

2,137

 

I

 

$

83

 

$

259

 

$

450

 

$

1,002

 

R3

 

$

137

 

$

430

 

$

744

 

$

1,634

 

R4

 

$

107

 

$

334

 

$

579

 

$

1,283

 

R5

 

$

77

 

$

240

 

$

417

 

$

930

 

Y

 

$

66

 

$

208

 

$

362

 

$

810

 

 

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 28% of the average value of its portfolio.

 

PRINCIPAL INVESTMENT STRATEGY.   The Fund invests primarily in a portfolio of common stocks that typically have above average dividend yields and whose prospects for capital appreciation are considered favorable by the sub-adviser, Wellington Management Company LLP (“Wellington Management”).  The Fund’s portfolio is broadly diversified by company and industry.  Under normal market and economic conditions, at least 65% of the Fund’s net assets are invested in dividend paying equity securities.  The Fund tends to focus on securities of larger, well-established companies with market capitalizations similar to those of companies in the S&P 500 Index.  The Fund may invest up to 20% of its net assets

 

3



 

in securities of foreign issuers and non-dollar securities.  Wellington Management uses fundamental analysis to evaluate a security for purchase or sale by the Fund.

 

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.

 

Dividend Paying Security Investment Risk — Securities that pay high dividends as a group can fall out of favor with the market, causing the Fund during such periods to underperform funds that do not focus on dividends. The Fund’s focus on dividend paying investments may cause the Fund’s share price and total return to fluctuate more than the share price and total return of funds that do not focus their investments on dividend paying securities. In addition, income provided by the Fund may be affected by changes in the dividend policies of the companies in which the Fund invests and the capital resources available for such payments at such companies.

 

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.

 

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.

 

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.

 

4



 

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    15.76% (2nd quarter, 2009)    Lowest  -18.58% (4th quarter, 2008)

 

AVERAGE ANNUAL RETURNS. The table below shows returns for the Fund over time compared to those of two broad-based market indices.  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.

 

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.

 

5



 

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

 

6.78

%

0.41

%

6.91

%

- After Taxes on Distributions

 

5.89

%

-0.20

%

6.07

%

- After Taxes on Distributions and Sale of Fund Shares

 

4.75

%

0.00

%

5.69

%

Share Classes (Return Before Taxes)

 

 

 

 

 

 

 

Class B

 

6.93

%

0.29

%

6.79

%

Class C

 

11.11

%

0.80

%

6.74

%

Class I

 

13.27

%

1.86

%

7.72

%

Class R3

 

12.64

%

1.25

%

7.51

%

Class R4

 

12.98

%

1.60

%

7.73

%

Class R5

 

13.33

%

1.89

%

7.92

%

Class Y

 

13.44

%

2.00

%

7.99

%

S&P 500 Index
(reflects no deduction for fees, expenses or taxes)

 

15.99

%

1.66

%

7.10

%

Russell 1000 Value Index
(reflects no deduction for fees, expenses or taxes)

 

17.51

%

0.59

%

7.38

%

 

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

 

 

 

 

 

Edward P. Bousa, CFA

 

Senior Vice President and Equity Portfolio Manager

 

2000

 

 

 

 

 

Donald J. Kilbride

 

Senior Vice President and Equity Portfolio Manager

 

2002

 

 

 

 

 

Matthew G. Baker

 

Senior Vice President and Equity Portfolio Manager

 

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.

 

7



 

MFSUM-DG_030113
March 1, 2013

 

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