Reprinted by permission of Morningstar, Jul. 21, 2021 Hartford Equity Income I HQIIX Reliable in tough conditions. Morningstar's Take HQIIX this portfolio’s sector weightings within 8 hold a stock if its yield falls below the S&P 500's. percentage points of the Russell 1000 Value Reckmeyer can be contrarian, adding to out-of- Morningstar Rating QQQQ Index's, though its industry positioning can still favor stocks whose challenges are more than Morningstar Analyst Rating „ stand out. Its 10% to 14% stake in reflected in their share prices. While he generally pharmaceuticals stocks since mid-2012 has often holds stocks for about four to five years, Reckmeyer Morningstar Pillars been one of the large-value Morningstar is quick to sell if stocks' fundamentals deteriorate Process Above Average Category's highest weightings and 5 to 6 or hit their target price. He can also swap a name Performance — percentage points more than the index. for a similar stock trading at a better valuation. People Above Average Parent Above Average Price — The fund won’t wow in rallies and it can struggle Although Reckmeyer's process is fundamentally when interest-rates spike. Both factors contributed driven, it's not benchmark-agnostic. He keeps the Role In Portfolio Core to its bottom-quintile showing over the past year portfolio's sector weightings within 8 percentage through March 31, 2021. The fund, though, has points of the Russell 1000 Value Index's. That can Fund Performance held up better than the the index and most peers in lead to sizable differences in financials and Year Total Return (%) +/- Category every market drop of 10% or more over consumer staples between this fund and his sleeve YTD 15.32 -2.20 Reckmeyer’s 13-plus years and that’s helped it of Vanguard Equity Income, which is indexed to the 2020 4.62 1.71 2019 26.19 1.15 outperform. FTSE High Dividend Yield Index. Consumer staples 2018 -7.74 0.79 stocks, for example, accounted for about 6.9% of the Russell 1000 Value Index in February 2021, 2017 17.77 1.82 Reckmeyer has no immediate plans to retire, but he versus 13% for the FTSE High Dividend Yield Index. Data through 6-30-21 has begun to make succession plans. It’s likely that Adam Illfelder or Mattew Hand will take over, 4-01-21 | by Alec Lucas comanagers here since late 2018. Although The fund's income orientation shows in its 60- to Reckmeyer will be a hard act to follow, his now 75-stock portfolio. The year-end 2020 portfolio's Hartford Equity Income's reliability merits a seven-person team continues to add talent, projected one-year yield of 2.7% (before fees) Morningstar Analyst Rating of Silver for its including analyst Dan Zoellick in 2020, who pointed ranked in the large-value category's top third. That cheapest shares, while its moderately priced Reckmeyer toward healthcare firm Becton, it did not rank higher shows manager Michael shares get Bronze, and its pricey C shares Neutral. Dickinson and Co. BDX. Its shares became Reckmeyer's total-return focus and caution about attractively valued in November when the market investing in stocks whose yields have become so gravitated toward cyclicals. Whether this pick high that it signals limited growth prospects or a Michael Reckmeyer has distinguished himself works out or not, swimming against the tide has distressed dividend. Reckmeyer hasn't been since joining subadvisor Wellington Management been key to this fund’s success. perfect, however. The portfolio held Kraft Heinz in 1994. His tenure as a lead manager began in KHC in early 2019 when the firm cut its quarterly 2008, when he took over this fund, a slice of dividend by more than one third. Vanguard Equity Income VEIPX, and the equity Process Pillar Above Average | Alec portion of Vanguard Wellesley Income VWINX. Lucas 04/01/2021 These strategies have flourished, and in 2015 he The fund earns an Above Average Process rating While its sector weightings typically hew closely to was the co-recipient of Morningstar's Fund for its focus on yield without neglecting total those of the Russell 1000 Value Index, the fund’s Manager of the Year award in the allocation return. Lead manager Michael Reckmeyer is a industry positioning can stand out. Its 10% to 14% category. stickler for dividends, valuations, and healthy stake in pharmaceuticals stocks since mid-2012 balance sheets. He buys stocks with above- has often been one of the category's highest weightings and 5 to 6 percentage points more than Reckmeyer's process isn't too venturesome, but it average dividend yields and low valuations but the index. Top-15 holdings Johnson & Johnson works. He buys 60 to 75 stocks with above-average unappreciated growth prospects. Typically, these JNJ and Pfizer PFE have each been in the portfolio dividend yields and low valuations but stocks offer a yield above the S&P 500's upon since at least early 2009. Reckmeyer also unappreciated growth prospects. He also keeps purchase. Unlike the strategy he runs for Vanguard Wellesley Income, however, his portfolio here can © 2021 Morningstar, Inc. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. Page 1 of 4, not valid without the others. Reprinted by permission of Morningstar, Jul. 21, 2021 opportunistically bought Eli Lilly LLY for its drug Reckmeyer's experience extends well beyond his strong subadvisor to Hartford's lineup, with pipeline in late 2016. October 2007 start date here. He began in the expertise in non-U.S. strategies. industry in 1984 and joined Wellington a decade later. In 2008, he took over this fund as well as a Since early 2012, Reckmeyer has also departed Hartford Funds mostly leaves day-to-day slice of Vanguard Equity Income and the equity from the index by investing in 7% to 20% of the investment decisions to its well-equipped portion of Vanguard Wellesley Income. He has fund’s assets in overseas dividend payers. Most of subadvisors and instead steers product distinguished himself on all these strategies and these holdings are multinationals that pay stout development, risk oversight, and distribution for its was the co-recipient of Morningstar's 2015 Fund dividends, such as Netherlands' Unilever. At year- strategies. In 2013, the firm reorganized and grew Manager of the Year award in the allocation end 2020, the fund’s 7.8% non-U.S. stake ranked in its product-management and distribution effort. category. the category’s top third. Since then, leadership has added resources to its distribution and oversight teams, merged and Reckmeyer's success has come amid significant liquidated subpar offerings, introduced new Performance Pillar | Alec Lucas 04/01/2021 team changes since the unexpected March 2015 strategies, evolved its strategic partnerships with The fund has a strong record since manager exit of analyst Alexandra Katthagen. The team has MIT AgeLab and AARP, and lowered some fees. Michael Reckmeyer took over as lead in early 2008. navigated six total departures. Two were That said, fees are still not always best in class but Through March 2021, the Y shares' 8.8% retirements, but two were due to poor have improved. annualized gain beat the Russell 1000 Value Index performance, including the August 2019 cessation by 1.2 percentage points and placed in the large- of Ian Link's comanager duties here. Reckmeyer value category's top quintile. Over the same period, has added three analysts since 2017 and tapped the fund's risk-adjusted results were superior, too. team veterans Adam Illfelder and Matthew Hand Price Pillar | Alec Lucas 04/01/2021 as comanagers to replace Link. Reckmeyer, who It’s critical to evaluate expenses, as they come Reckmeyer's focus on well-capitalized dividend has no immediate plans to retire, has begun to directly out of returns. The share class on this payers and willingness to buy them when they're make succession plans. It’s likely that Illfelder or report levies a fee that ranks in its Morningstar out of favor has helped limit the fund's losses in Hand will take over, but he’ll be a hard act to category’s middle quintile. That’s not great, but faltering markets, including early 2020 bear follow. based on our assessment of the fund’s People, market. From the index's Feb. 12 peak through its Process and Parent pillars in the context of these March 23 bottom in 2020, the Y shares' dreadful fees, we think this share class will still be able to Reckmeyer invests at least $500,000 here and 34.6% loss was still 3.5 percentage points better deliver positive alpha relative to the category Hand at least $100,000. Reckmeyer also invests than the index. Amid the credit crisis, the Y shares' benchmark index, explaining its Morningstar more than $1 million each in Vanguard Equity 28.6% loss in 2008 beat the index by 8.2 Analyst Rating of Bronze. Income and Vanguard Wellesley Income. percentage points. The fund also held up relatively well in 2011 and the 2015-16 correction. Parent Pillar Above Average | Elizabeth Foos 12/21/2020 The corollary of the fund's superior showings in Hartford Funds has evolved over the past decade down markets is that it tends to lag in rallies. Its by hiring strong subadvisors, honing its product 2009, 2012, and 2013 calendar-year returns each lineup, and improving some fee structures. These finished in or near the category's bottom third. The efforts support an Above Average Parent Pillar fund's income orientation can also make it rating.