Form 497K HARTFORD MUTUAL FUNDS
Tweet
Share
E-mail
Summary
Prospectus
May 25, 2022
Hartford
Schroders International Contrarian Value Fund
| Class I |
Class SDR |
| HFSIX |
HFSSX |
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, reports to
shareholders (when available), and other information about the Fund online at http://www.hartfordfunds.com/prospectuses.html. You can also get this information at no cost by calling 1-888-843-7824 or request a copy of the
prospectus by sending an e-mail to [email protected]. The Fund’s prospectus and statement of additional information dated May 25, 2022, each as may be amended, supplemented or restated, are incorporated by reference into this summary prospectus.
The Fund’s statement of additional information may be obtained, free of charge, in the same manner as the Fund’s prospectus.
INVESTMENT OBJECTIVE. The Fund seeks long-term capital appreciation.
YOUR EXPENSES. The
table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below. Please contact your financial
intermediary for more information regarding whether you may be required to pay a brokerage commission or other fees.
Annual Fund
Operating Expenses (expenses that you pay each year as a percentage of the value of your investment):
| Share Classes |
I |
SDR |
| Management fees |
0.65% |
0.65% |
| Distribution and service (12b-1) fees |
None |
None |
| Other expenses(1) |
0.55% |
0.46% |
| Total annual fund operating expenses |
1.20% |
1.11% |
| Fee waiver and/or expense reimbursement(2)
|
0.35% |
0.41% |
| Total annual fund operating expenses after fee waiver and/or expense
reimbursement(2) |
0.85% |
0.70% |
(1)
“Other expenses” are estimated for the current fiscal year.
(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 limit total annual fund operating expenses as follows: 0.85% (Class I), and 0.70% (Class SDR). This contractual arrangement will remain in effect until
February 29, 2024 unless the Board of Directors of The Hartford Mutual Funds II, Inc. approves its earlier termination.
Example. The example
below is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the
Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that:
•
Your investment has a 5% return each year
•
The Fund’s operating expenses remain the same (except that the example reflects
the fee waiver and/or expense reimbursement arrangement reflected in the table above for only the first year)
•
You reinvest all dividends and distributions.
Although your actual costs may be higher or lower, based on these assumptions your costs would be:
| Share Classes |
Year 1 |
Year 3 |
| I |
$87 |
$346 |
| SDR |
$72
|
$312
|
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 example, affect the Fund’s performance. Because the Fund has not commenced operations as of October 31, 2021, the date of its most recent fiscal year end, the Fund’s portfolio turnover rate for the most recent fiscal year is not available.
PRINCIPAL INVESTMENT STRATEGY. Under normal circumstances, the Fund invests at least 65% of its net assets in equity securities of foreign
issuers, including non-U.S. dollar denominated securities and securities of emerging market issuers. The investment strategy of the Fund is a contrarian value approach. The
Fund’s sub-advisers, Schroder Investment Management North America Inc. (“SIMNA”) and Schroder Investment Management North America Limited (“SIMNA Ltd.,” together with SIMNA, the “Sub-Advisers”), use proprietary quantitative screening tools to narrow the opportunity set and then perform fundamental analysis to identify securities that they believe are significantly
undervalued relative to their long-term earnings potential. The Sub-Advisers seek to invest in companies that they believe have favorable long-term prospects but are temporarily out of favor with investors. A company may be out of favor for many reasons, including weak short-term profitability, macro-economic concerns or a misunderstood balance sheet. The Sub-Advisers believe these factors can significantly reduce the attractiveness of a company to short term investors and induce discounts to fair value. In addition, the Sub-Advisers integrate financially material environmental, social and governance (“ESG”) characteristics into their investment process. The Sub-Advisers evaluate the impact and risk around issues such as climate change, environmental performance, labor standards and corporate governance,
which they view as important in their assessment of a company’s risk and potential for profitability.
The Fund typically employs a
focused portfolio investing style (i.e., a portfolio consisting of a relatively small number of holdings). The equity securities in which the Fund may invest include, but
are not limited to, common stock and preferred stock. The Fund may invest among a number of different sectors and countries throughout the world with no limit on the amount of assets that may be invested in any one sector or country. Based on market or economic
conditions, the Fund may, through its normal bottom-up stock selection process, focus in one or more sectors of the market. The Fund may invest in securities of issuers of any market capitalization, but tends to focus on large and medium capitalization companies.
The Fund will consider an issuer to be located in a country if it is organized under the laws of that country and is
principally traded in that country, or is domiciled and has its principal place of business located in that country and is principally traded in that country, or if the Sub-Advisers determine that the issuer has more than 50% of its assets in, or derives more than 50% of its revenues from, that country.
PRINCIPAL RISKS. The
principal 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 investment objective.
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 of a company may decline in value due to its financial prospects and activities, including certain operational impacts, such as data breaches and cybersecurity attacks. Securities may also decline in value due to general market and economic movements and trends, including adverse changes to credit markets, or as a result of other events such as geopolitical events, natural
disasters, or widespread pandemics (such as COVID-19) or other adverse public health developments.
Foreign Investments Risk – Investments in foreign securities may be riskier, more volatile, and less liquid than investments in U.S.
securities. Differences between the U.S. and foreign regulatory regimes and securities markets, including the less stringent investor protection, less stringent accounting,
corporate governance, financial reporting and disclosure standards of some foreign markets, as well as political and economic developments in foreign countries and regions and the U.S. (including the imposition of sanctions, tariffs, or other governmental restrictions), 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 impact of the United Kingdom’s departure from the European Union, commonly known as “Brexit,” and the potential departure of one or more other countries from the European Union may have significant political and financial consequences for global markets. This may adversely impact Fund performance.
Emerging Markets Risk – The risks related to investing in foreign securities are generally greater with respect to investments in
companies that conduct their principal business activities in emerging markets or whose securities are traded principally on exchanges in emerging markets. The risks of
investing in emerging markets include risks of illiquidity, increased price volatility, smaller market capitalizations, less government regulation and oversight, less
extensive and less frequent accounting, financial, auditing and other reporting requirements, significant delays in settlement of trades, risk of loss resulting from problems in share registration and custody and substantial economic and political disruptions. In addition, the imposition of exchange controls (including repatriation restrictions), sanctions,
2
confiscations, trade restrictions (including tariffs) and other government restrictions by the United States and other governments may also result in losses. Frontier markets are those emerging markets that are considered to be among the smallest, least mature and least liquid, and as a result, the risks of investing in emerging markets are magnified in frontier markets.
Currency Risk – The risk that the value of the Fund’s investments in foreign
securities or currencies will be affected by the value of the applicable currency relative to the U.S. dollar. When the Fund sells a foreign currency or foreign currency denominated security, its value may be worth less in U.S. dollars even if the investment increases in value in its local market. U.S. dollar-denominated securities of foreign issuers may also be affected by currency risk, as the revenue earned by issuers of these securities may also be affected by changes in the issuer’s local currency.
Regional/Country Focus Risk – To the extent that the Fund focuses its investments in a particular
geographic region or country, the Fund may be subject to increased currency, political, regulatory, economic and other risks associated with that region or country. A natural or other disaster could occur in a geographic region in which the Fund invests, which could affect the economy or particular business operations of companies in the specific geographic region. As a result, the Fund may be subject to greater price volatility and risk of loss than a fund holding more geographically diverse investments.
Equity Risk – The risk that the price of equity or equity related securities may decline
due to changes in a company’s financial condition and overall market and economic conditions.
Large Cap Securities Risk – The securities of large market capitalization companies may underperform other segments of the market because
such companies may be less responsive to competitive challenges and opportunities and may be unable to attain high growth rates during periods of economic
expansion.
Mid-Cap Securities Risk – The securities of mid-capitalization companies generally trade in lower volumes and are generally subject to
greater and less predictable price changes than the securities of larger capitalization companies.
Value Investing Style Risk – Using a value investing style to select investments involves special
risks, particularly if it is used as part of a “contrarian” approach to evaluating issuers. Overlooked or otherwise undervalued securities entail a significant risk of never attaining their potential value or may even be overpriced. Also, the value investing style may over time go in and out of favor. At times when the value investing style is out of favor, the Fund may underperform other equity funds that use different investing styles. “Value” securities can be undervalued by the market for long periods of time.
Active Investment Management Risk – The risk that, if the Sub-Advisers’ investment strategy does not
perform as expected, the Fund could underperform its peers or lose money. As part of the Fund’s investment strategy, the Sub-Advisers evaluate certain factors as part of the investment process, including ESG characteristics. The analysis of these factors may not work as intended. ESG characteristics are not the only factors considered and as a result, the
companies (or issuers) in which the Fund invests may not be companies (or issuers) with favorable ESG characteristics or high ESG ratings. The Fund’s exclusion of certain investments from its investment universe may adversely affect the Fund’s relative performance at times when such investments are performing well.
Focused Portfolio Risk – Because the Fund may invest in a limited number of companies, the Fund is
subject to greater risk of loss if any of those securities decline in price.
Volatility Risk – The Fund’s investments may fluctuate in value over a short period of
time. This may cause the Fund’s net asset value per share to experience significant changes in value over short periods of time.
Liquidity Risk – The risk that the market for a particular investment or type of investment is or becomes relatively illiquid,
making it difficult for the Fund to sell that investment at an advantageous time or price. Illiquidity may be due to events relating to the issuer of the securities, market
events, rising interest rates, economic conditions or investor perceptions. Illiquid securities may be difficult to value and their value may be lower than the market price
of comparable liquid securities, which would negatively affect the Fund’s performance.
Sector Risk – To the extent the Fund invests more heavily in a particular sector or
sectors, its performance will be especially sensitive to developments that significantly affect those sectors. Individual sectors may be more volatile, and may perform differently, from the broader market.
Large Shareholder Transaction Risk – The Fund may experience adverse effects when certain large shareholders
redeem or purchase large amounts of shares of the Fund. Such redemptions may cause the Fund to sell securities at times when it would not otherwise do so or borrow money (at a cost to the Fund), which may negatively impact the
Fund’s performance and liquidity. Similarly, large purchases may adversely affect the Fund’s performance to the extent
3
that the Fund is delayed in investing new
cash and is required to maintain a larger cash position than it ordinarily would. These transactions may also accelerate the realization of taxable income to shareholders if
such sales of investments resulted in gains, and may also increase transaction costs.
New Fund Risk – The Fund is a new fund which may result in additional risk. There can be no assurance that the Fund will grow
to an economically viable size, in which case the Fund may cease operations. In such an event, investors may be required to liquidate or transfer their investments at an
inopportune time.
Securities Lending Risk – The Fund may lose money because the borrower of the loaned securities fails to return the securities in a
timely manner or at all. The Fund could also 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. These events could also trigger adverse tax consequences for the Fund.
The Fund is subject to certain other risks. For more information regarding risks and investments, please see
“Additional Information Regarding Investment Strategies and Risks” and “More Information About Risks” in the Fund’s statutory prospectus.
PAST
PERFORMANCE. Performance information is not included because the Fund did not commence operations as of December 31, 2021. The Fund’s performance is only shown in the prospectus when the Fund has had a full calendar year of operations. Performance information will be available at hartfordfunds.com. Keep in mind
that past performance does not indicate future results.
MANAGEMENT. The Fund’s investment manager is Hartford Funds Management Company, LLC.
The Fund’s sub-adviser is Schroder Investment Management North America Inc. and its sub-sub-adviser is Schroder Investment Management North America Limited.
| Portfolio Manager |
Title |
Involved with
Fund Since |
| Nick Kirrage, CFA |
Portfolio Manager |
2022 |
| Simon Adler, CFA |
Portfolio Manager |
2022 |
| Liam Nunn, CFA |
Portfolio Manager |
2022 |
PURCHASE AND SALE OF FUND SHARES. Not all share classes are available for all investors.
Minimum investment amounts may be waived for certain accounts. Certain financial intermediaries may impose different restrictions than those described below.
| Share Classes |
Minimum Initial Investment |
Minimum
Subsequent
Investment |
| Class I |
$2,000 for all accounts except: $250, if establishing an Automatic Investment Plan (“AIP”),
with recurring monthly investments of at least $50 |
$50 |
| Class SDR |
$5,000,000
This requirement is waived for purchases through certain plan level or omnibus
accounts. |
None |
For more information, please see the “How To Buy And Sell Shares” section of the Fund’s statutory
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 through your financial intermediary. With respect to certain accounts, you may sell your shares on the web at 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 Hartford Funds
to request to sell your shares. For regular mail, please send the request to Hartford Funds, P.O. Box 219060, Kansas City, MO 64121-9060. For overnight mail, please send the request to Hartford Funds, 430 W 7th Street, Suite 219060, Kansas City, MO 64105-1407.
TAX INFORMATION. The Fund’s distributions are generally taxable, and may 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 professional), 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 professional to
recommend the Fund over another investment. Ask your financial professional or visit your financial intermediary’s website for more information.
4 May 25, 2022
SUM-SCHICV_05252022
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Blackwell 3D Launches New Website, Eyes Project Development
- Junshi Biosciences Announces NDA Acceptance in Hong Kong for Toripalimab
- Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Checkpoint, Sonder, and Perion and Encourages Investors to Contact the Firm
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
