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IT’S A BOLD, NEW WORLD

IT’S A BOLD, NEW WORLD. Why Hartford Funds?. We Think Independently We Invest Actively We Believe in the Power of Partnerships. “ In a complex, interconnected, and rapidly changing global economy, investors need to explore all opportunities and be ready to adapt to new economic regimes.”

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IT’S A BOLD, NEW WORLD

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  1. IT’S A BOLD, NEW WORLD

  2. Why Hartford Funds? We Think Independently We Invest Actively We Believe in the Power of Partnerships

  3. “ In a complex, interconnected, and rapidly changing global economy, investors need to explore all opportunities and be ready to adapt to new economic regimes.” – Nanette Abuhoff Jacobson Asset Allocation Strategist atWellington Management Companyand Global Investment Strategistfor Hartford Funds

  4. The Growth Environment Is Changing Growth has been dominant recently . . . US GDP and CPI with Market Environment Time Periods, 1983 - 2012 10 GDP 8 CPI Growth 6 Weak Growth 4 Inflation 2 Stagflation Percent 0 -2 -4 -6 1983 1987 1992 1996 2001 2005 2010 2012 Gross domestic product (GDP) is commonly used as an indicator of the economic health of a country, as well as to gauge a country’s standard of living. The CPI (Consumer Price Index) calculates the cost to purchase a fixed basket of goods as a way of determining how much inflation is occurring in the broad economy. The CPI uses a base year and indexes current year prices based on the base year's values. The headline figure is not adjusted for seasonality or for the often volatile elements of food and energy prices, which are removed in the Core CPI. Market environments are defined by year-over-year changes in GDP growth and inflation. Growth: + GDP growth, – inflation. Weak Growth: – GDP growth, – inflation. Inflation: + GDP growth, + inflation. Stagflation: – GDP growth, + inflation. Sources: Haver, US Bureau of Labor Statistics, US Bureau of Economic Analysis, Datastream, Wellington Management

  5. The Growth Environment Is Changing . . . but growth has not always been as dominant. US GDP and CPI with Market Environment Time Periods, 1900 - 2012 25 GDP 20 CPI Growth 15 Weak Growth 10 Inflation 5 Percent Stagflation 0 -5 -10 -15 2012 1900 1912 1924 1936 1948 1960 1972 1984 1996 2008 Gross domestic product (GDP) is commonly used as an indicator of the economic health of a country, as well as to gauge a country’s standard of living. The CPI (Consumer Price Index) calculates the cost to purchase a fixed basket of goods as a way of determining how much inflation is occurring in the broad economy. The CPI uses a base year and indexes current year prices based on the base year's values. The headline figure is not adjusted for seasonality or for the often volatile elements of food and energy prices, which are removed in the Core CPI. Market environments are defined by year-over-year changes in GDP growth and inflation. Growth: + GDP growth, – inflation. Weak Growth: – GDP growth, – inflation. Inflation: + GDP growth, + inflation. Stagflation: – GDP growth, + inflation. Sources: Haver, US Bureau of Labor Statistics, US Bureau of Economic Analysis, Datastream, Wellington Management

  6. The Fixed-Income Landscape Is Shifting The End of an Era 18 16 10-Year US Treasury Yield Inflation 14 12 10 8 Percent 6 4 2 0 -2 -4 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 Data Sources: Bureau of Labor Statistics and the Federal Reserve. Inflation is represented by the Consumer Price Index. 1/14.

  7. And the Equity Markets Have Evolved . . . Globalization: The Number of International Companies has Exploded Since 1986 41,540 U.S. International 8,068 6,475 4,720 1986 2013 Data Source: Ned Davis Research, 1/14. U.S. companies includes all common stocks listed on the NYSE, AMEX, & NASDAQ exchanges. International companies includes all stocks in the Thomson Worldscope database listed on the different exchanges. Over the counter stocks are not included.

  8. IT’S A BOLD, NEW WORLD The Growth Environment Is ChangingEconomic environments may vary more frequently The Fixed-Income Landscape Is ShiftingThe era of falling interest rates has come to an end The Equity Markets Have EvolvedThe explosion of international companies has created opportunity

  9. strategies for a BOLD, NEW WORLD Click to choose a strategy . . . Invest for Growth Find New Sources of Income Prepare for Volatility

  10. strategies for a BOLD, NEW WORLD Invest for Growth

  11. Invest for Growth vs. Emotional Disciplined Cumulative Flows (1/08 - 12/13) $800 Institutional Stocks Retail Stocks $636 billion $600 $400 $200 Billions $0 -$200 -$400 -$600 -$636 billion -$800 Jul-10 Jul-11 Jul-12 Jul-13 Jul-08 Jul-09 Jan-10 Jan-11 Jan-12 Jan-08 Jan-09 Jan-13 Nov-13 Nov-09 Nov-10 Nov-11 Nov-08 Nov-12 Mar-10 Mar-11 Mar-12 Mar-08 Mar-09 Mar-13 May-10 May-11 May-12 May-08 May-09 May-13 Sep-13 Sep-10 Sep-11 Sep-12 Sep-08 Sep-09 Source: Morningstar 1/14. * Source: Factset 1/14.

  12. Invest for Growth If a 45-year old investor has $200,000 in retirement savings and invests $500 per month, what return would the investor need annually to achieve a retirement goal of $1.5 million in savings by age 65? 30-Year Average Annual Returns (as of 12/31/13) 9.3%average rate of return. Data source: Morningstar 1/14. Past performance is not indicative of future results. Indices are unmanaged and not available for direct investment. All investments are subject to risk, including the possible loss of principal. International investing involves additional risks, including country and currency risk. Fixed income securities are subject to interest-rate risk (the risk that the value of an investment decreases when interest rates rise), credit risk, and call risk. Unlike stocks and bonds, payment of principal and interest of U.S. Treasury securities is backed by the full faith and credit of the U.S. government. 1 Domestic stocks are represented by the S&P 500 Index. The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. 2 International Stocks are represented by the MSCI EAFE Index. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE) is a free float-adjusted capitalization index that is designed to measure developed market equity performance, and excludes the US and Canada. 3 Bonds are represented by the Barclays U.S. Aggregate Bond Index. The Barclays U.S. Aggregate Bond index is composed of securities from the Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index. 4 Cash is represented by the Bank of America Merrill Lynch U.S. Treasury Bills Index. Bank of America Merrill Lynch U.S. Treasury Bills Index tracks the performance of all outstanding 0-3 month outstanding Treasury Bills issued by the U.S. government. DomesticStocks1 International Stocks2 Bonds3 Cash4 This hypothetical illustration does not represent the return on any particular investment.

  13. Invest for Growth • How can you invest for Growth? • Use Active Management • Think Internationally • Capitalize on Emerging Leaders

  14. Invest for Growth • Use Active Management From Headwinds to Tailwinds: Falling Correlations Among Equities Create More Opportunities for Stock-Pickers (12/07 - 12/13) 0.78 Peak 0.67 Average Correlation 0.57 Today Based on median 252-Day correlation of S&P 500 stocks to the S&P 500 Index. Data Source: Ned Davis, 1/14.

  15. Invest for Growth • Think Internationally 14% 52% 78% of the world's GDP is outside ofthe U.S. of the world's market cap is outside ofthe U.S. Average U.S. investor’s allocation to international equities Source: ICI, as of 12/12.

  16. Invest for Growth • Capitalize on Emerging Leaders Life Phases of a Company Plateau/Maturity Growth High Risk Start-up Small Cap Mid Cap Universe Large Cap 1/1/1994 – 12/31/13: Annual Return Standard Deviation Sharpe Ratio 9.27% 19.68 0.40 11.19% 16.93 0.54 9.38% 15.39 0.47 PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Standard deviation is a commonly used statistical measure of historical volatility; it indicates the risk associated with a return series. A lower standard deviation indicates less risk. Sharpe Ratio is an important statistic because it's the portfolio's return taking risk into consideration. The higher the Sharpe Ratio, the better. This means the portfolio has a higher return for the amount of risk that it takes. Data source: Morningstar, as of 1/14.

  17. How Can You Invest for Growth? • How Can You Invest for Growth? • Use Active Management • Hartford Capital Appreciation Fund • Think Internationally • Hartford International Opportunities Fund • Hartford International Value Fund • Capitalize on Emerging Leaders • Hartford MidCap Fund Click an icon to review a different strategy, or the arrow to conclude

  18. strategies for a BOLD, NEW WORLD Find New Sources of Income

  19. Find New Sources of Income Income Shortfall:Today’s Low Yields Result in Barely Positive Real Returns After Inflation 14 12 10.46% 10-Yr Treasury Yield Real Rate of Return 10 8 6.52% 6 Percent 4 2.72% 2 1.50% 0 -2 1993 1994 2001 2002 2003 2004 2011 2012 2013 1996 1997 1998 1999 2000 2005 2006 1983 1984 1985 1991 1992 1986 1987 1988 1989 1990 2007 2009 2010 PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Source: Morningstar, 1/14

  20. Find New Sources of Income • How Can You Find New Sources of Income? • Incorporate High-Quality Solutions • Consider the Impact of Taxes • Take Advantage of Rising Rates

  21. Find New Sources of Income • Incorporate High-Quality Solutions Flat Income and No Growth Initial investment on 1/1/04: $100,000 Annual withdrawal amount: $4,270 Total withdrawals received: $42,700 Value of investmenton 12/31/13: $100,000 The U.S. government guarantees the timely payment of principal and interest for U.S. Treasury bonds. A 10-Year Treasury Bond Yielding 4.27% issued 1/1/04

  22. Find New Sources of Income • Incorporate High-Quality Solutions Rising Income and Growth Initial investment on 1/1/04: $100,000 Initial withdrawal amount: $5,000 Total withdrawals received: $57,317 (3% increase in withdrawal amounteach year) Value of investment on 12/31/13after taking income withdrawals: $103,764 A High-Quality Portfolio comprised of 50% Dow Jones Select Dividend Index which consists of roughly 100 stocks from the broader Dow Jones U.S. Total Market Index with the highest dividend yields and 50% Barclays U.S. Corporate Investment Grade Bond Index which covers all publicly issued, fixed rate, nonconvertible, investment grade debt. For illustrative purposes only. Index performance does not represent the performance of any of Hartford Funds. Assumes no taxes and reinvestment of all distributions. Stock and bond investments are not suitable for all investors. The performance shown above is index performance. Indices are unmanaged and unavailable for direct investment.

  23. Find New Sources of Income • Incorporate High-Quality Solutions A 10-Year Treasury Bond Yielding 4.27% A High-Quality Portfolio Initial investment on 1/1/04: $100,000 Annual withdrawal amount: $5,000 Total withdrawals received: $57,317 (3% increase in withdrawal amounteach year) Value of investment on 12/31/13after taking income withdrawals: $103,764 Initial investment on 1/1/04: $100,000 Annual withdrawal amount: $4,270 Total withdrawals received: $42,700 Value of investmenton 12/31/13: $100,000 A High-Quality Portfolio comprised of 50% Dow Jones Select Dividend Index which consists of roughly 100 stocks from the broader Dow Jones U.S. Total Market Index with the highest dividend yields and 50% Barclays U.S. Corporate Investment Grade Bond Index which covers all publicly issued, fixed rate, nonconvertible, investment grade debt. For illustrative purposes only. Index performance does not represent the performance of any of Hartford Funds. Assumes no taxes and reinvestment of all distributions. Stock and bond investments are not suitable for all investors. The performance shown above is index performance. Indices are unmanaged and unavailable for direct investment.

  24. Find New Sources of Income • Consider the Impact of Taxes Municipal Bonds Are Currently a Good Value 129% Percent 90% Data Source: Ned Davis Research, Inc., 1/14. U.S. Treasury securities are at historically low levels, which may not continue in the future.

  25. Find New Sources of Income • Take Advantage of Rising Rates Bank Loans Outperformed During Past Periods of Rising Rates . . . Bank loans are loans made by large commercial banks to corporations. They are typically backed by specific assets within the issuing company and have a claim on the issuer’s assets. Because bank loans are senior secured debt, they generally take priority over other types of securities (i.e., unsecured debt, preferred stock, common stock, etc.) within a company’s capital structure. 1 The Barclays U.S. Treasury Index is an unmanaged index of public obligations of the U.S. Treasury with a remaining maturity of one year or more. 2 The CSFB Leveraged Loan Index is a representative index of tradable, senior secured, U.S. dollar-denominated non-investment-grade loans. 3 The Barclays U.S. Aggregate Bond Index is comprised of government securities, mortgage-backed securities, asset-backed securities, and corporate securities to simulate the universe of bonds in the market. 4 The Barclays U.S. Corporate Investment Grade Index covers all publicly issued, fixed rate, nonconvertible, investment grade debt. 5 The Barclays U.S. Corporate High-Yield Bond Index is an unmanaged broad-based market-value-weighted index that tracks the total return performance of non-investment grade, fixed-rate, publicly placed, dollar denominated and nonconvertible debt registered with the Securities and Exchange Commission. 2 1 Average Annual Total Returns Data Source: Morningstar Inc., 1/12. . . . And They Have Offered Competitive Yields 2 5 3 4 1 Information as of 12/31/13. Data Source: Credit Suisse, Barclays Research, 1/14. Bank loans are subject to risks, including credit risk such as nonpayment of principal or interest, and risks of bankruptcy and insolvency.

  26. Find New Sources of Income • How Can You Find New Sources of Income? • Incorporate High-Quality Solutions • Hartford Balanced Income Fund • Consider the Impact of Taxes • Hartford Municipal Opportunities Fund • Take Advantage of Rising Rates • Hartford Floating Rate Fund • Hartford Floating Rate High Income Fund Click an icon to review a different strategy, or the arrow to conclude

  27. strategies for a BOLD, NEW WORLD Prepare for Volatility

  28. Prepare for Volatility Change Is Coming for Fixed Income Fixed Income Yields Fixed Income Returns Percent ? 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s *Fixed income is represented by IA SBBI IT Govt Index from 1926 to 1975 and Barclays U.S. Aggregate Bond Index from 1976 to 2013. Data Source: Morningstar, 1/14.

  29. Prepare for Volatility • How Can You Prepare for Volatility? • Globalize Your Core • Find Balance in Quality Investments • Lower your Sensitivity to Rising Rates

  30. Prepare for Volatility • Globalize Your Core • The function of core fixed income: • Generate total returns • Lower overall portfolio volatility • Decrease correlation to risk assets • Emphasize liquid assets A Larger Opportunity Set to Diversify Risk Sources of Return This hypothetical example is for illustrative purposes only, and does not represent the performance of Hartford Funds or any particular investment. Diversification does not assure a profit or protect against loss in a declining market.

  31. Prepare for Volatility • Find Balance in Quality Investments $700,000 Stocks $594,511 50% Stocks/50% Bonds $600,000 $583,406 50% Dividend-Paying Stocks/50% Investment-Grade Bonds $500,000 $459,221 $400,000 $300,000 $200,000 $100,000 $0 12-93 12-97 12-01 12-05 12-09 12-13 Data Source: Thomson Reuters, 1/14

  32. Prepare for Volatility • Lower Your Sensitivity to Rising Rates Value of a $1,000 bond investment during rising and falling interest rates Source: Barclays, 6/13. This hypothetical is for illustrative purposes only. Actual results may vary as interest rate changes are only one factor that can affect bond prices.

  33. Prepare for Volatility • How can you prepare for volatility? • Globalize Your Core • Hartford World Bond Fund • Find Balance in Quality Investments • Hartford Balanced Income Fund • Lower Your Sensitivity to Rising Rates • Hartford Short Duration Fund Click an icon to review a different strategy, or the arrow to conclude

  34. IT’S A BOLD, NEW WORLD Invest for Growth Equities provide the greatest growth potential Find New Sources of Income Traditional income sources may not be enough Prepare for Volatility Volatility affects fixed income, too

  35. IT’S A BOLD, NEW WORLD In this bold, new world, investors need solutions that balance the lessons of the past with the opportunities of the future.

  36. IT’S A BOLD, NEW WORLD • What’s Next? • Schedule an appointment with your Financial Advisor • Discuss the challenge or challenges that concern you the most • Implement strategies that prepare your portfolio for our Bold, New World

  37. Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (retail) or 877-836-5854 (institutional). Investors should read them carefully before they invest. All investments are subject to risks, including possible loss of principal. Small- and mid-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets. Foreign investments can be riskier than U.S. investments. Potential risks include currency risk that may result from unfavorable exchange rates, liquidity risk if decreased demand for a security makes it difficult to sell at the desired price, and risks that stem from substantially lower trading volume on foreign markets. These risks are generally greater for investments in emerging markets. Fixed income securities are subject to interest-rate risk (the risk that the value of an investment decreases when interest rates rise), credit risk, and call risk. High yield securities (“junk bonds”) involve additional risks. Municipal bonds may be subject to additional taxes, including state taxes, capital gain taxes, and the Alternative Minimum Tax. Unlike stocks and bonds, U.S. Treasury securities are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest. The Hartford Floating Rate Fund and Hartford Floating Rate High Income Fund should not be considered alternatives to CDs or money market funds. These Funds are for investors who are looking to complement their traditional fixed-income investments. Wellington Management Company LLPis a SEC-registered investment adviser and an independent and unaffiliated sub-adviser to Hartford Funds. Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC. All information and representations herein are as of 12/13, unless otherwise noted. SEM_BNW 3/14 115557

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