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Hartford Emerging Markets Equity Fund Q4 2025 Commentary

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Emerging-markets equities rose in Q4 2025, led by Latin America’s surge—particularly Brazil—after the U.S. lifted 40% tariffs on its food exports, boosting regional growth despite modest GDP expansion. The Hartford Emerging Markets Equity Fund underperformed the MSCI Emerging Markets Index, primarily due to poor stock selection in IT and industrials, though financials and real estate partially mitigated losses. By sector, the fund ended Q4 overweight in healthcare, energy, and IT, reflecting strategic bets despite IT’s drag on performance during the quarter. Geographically, the fund’s largest allocations were South Korea and Thailand, signaling confidence in Asian markets amid broader emerging-market gains. Latin America outperformed Asia and EMEA, with Brazil’s rally driving regional momentum, while broader emerging-market growth remained uneven across sectors and economies.
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Hartford Funds81 FollowersFollow5ShareSavePlay(5min)CommentsSummaryEmerging-markets equities advanced in the fourth quarter, led by Latin America, followed by Asia and Europe, the Middle East, and Africa (EMEA).The Hartford Emerging Markets Equity Fund (I share) underperformed the MSCI Emerging Markets Index during the quarter.Security selection was the primary driver of relative underperformance, as weak selection in information technology and industrials was partially offset by selection in financials and real estate.At the end of the period, our largest overweights were healthcare, energy, and information technology.From a market perspective, our largest overweights were to South Korea and Thailand. Donny DBM/iStock via Getty Images Market Overview Emerging-markets equities advanced in the fourth quarter, led by Latin America, followed by Asia and Europe, the Middle East, and Africa (EMEA).

In Latin America, Brazil surged after the US removed 40% tariffs on Brazilian food products. Third-quarter GDP grew onlyThis article was written byHartford Funds81 FollowersFollowHartford Funds offers a broad range of actively managed and systematic-investing strategies designed to provide solutions for a variety of investment needs. Articles published here provide readers with timely insight on economic, market, and investing trends. For more information visit hartfordfunds.com.

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