1 Yield curve is a line that plots interest rates of bonds having equal credit quality but differing maturity dates; its slope is used to forecast the state of the economy and interest-rate changes.
2 Bloomberg US Aggregate Bond Index is composed of securities from the Bloomberg Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.
3 Bloomberg US Corporate Index measures the investment-grade, fixed-rate, taxable corporate-bond market.
4 Spreads are the difference in yields between two fixed-income securities with the same maturity but originating from different investment sectors.
5 Term premia is the compensation that investors require for bearing the risk of longer maturities, which are more sensitive to changes in interest rates.
Bond index is represented by the Bloomberg US Aggregate Bond Index.
Corporate bonds are represented by the Bloomberg US Corporate Index.
Treasuries are represented by the Bloomberg US Treasury Total Return Index, which is an unmanaged index of prices of US Treasury bonds with maturities of one to 30 years.
Cash is represented by ICE BofA US 3-month Treasury Bill Index, which is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue.
Important Risks: Investing involves risk, including the possible loss of principal. • Fixed-income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.
The views expressed here are those of the authors and Wellington Management’s Investment Strategy Team. They should not be construed as investment advice. They are based on available information and are subject to change without notice. Portfolio positioning is at the discretion of the individual portfolio management teams; individual portfolio management teams and different fund sub-advisers may hold different views, and may make different investment decisions for different clients or portfolios. This material and/or its contents are current as of the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Wellington Management or Hartford Funds.
