Data & Research February 8, 2011

Investor Confidence Improved in Q4 2010

The quarterly "Schwab Survey of Investor Confidence" shows clear signs that investor confidence improved at the end of 2010.  
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Forty-four percent of respondents said they were feeling “better off” or “much better off” financially at the end of 2010, compared to 30% in the third quarter. More than six in 10 (61%) of those surveyed also indicate Q4 2010 was a “good” or “very good” time to invest in equities, compared to 50% in Q3 2010.

Despite these overall improvements in Q4, confidence in making investment decisions remained static throughout 2010. In Q4, 39% of participants said they felt “extremely “or “very” confident by year-end.

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“Our clients are beginning to feel better about their financial situations overall and are re-engaging in the market,” said Troy Stevenson, vice president at Charles Schwab. “Despite the growing economy, market risk and volatility continue to undermine investor confidence. We remain committed to helping our clients both regain their confidence and achieve their financial goals by providing personal interaction, educational opportunities, online tools, and high-quality products and advice.”

The Schwab Survey of Investor Confidence was conducted from December 9-27, 2010, and included 1,200 retail clients.

Products February 8, 2011

Hartford Adds Real Return Objective to Tax-Free Fund

The Hartford Mutual Funds announced an enhancement to the investment objective and strategy of The Hartford Tax-Free National Fund.
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Effective March 1, the newly-named Hartford Municipal Real Return Fund (HTNAX), sub-advised by Hartford Investment Management, will continue to seek income exempt from federal income tax, but also will seek real return, or after-tax inflation-adjusted returns. The fund intends to invest in inflation-linked derivatives and securities to hedge the sensitivity of the municipal bond portfolio against changes in inflation and inflation expectations.   

Also effective March 1, Ray Humphrey and senior vice president at Hartford, and James Ong and vice president, will be added as portfolio managers to the fund. They will serve as additional resources to the portfolio alongside Joseph Darcy and Christopher Bade, the current portfolio management team.   

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The fund’s benchmark will remain the Barclays Capital Municipal Bond Index.  

“We are enhancing the fund’s investment strategy to broaden its market appeal and help grow assets,” said Jim Davey, president of The Hartford Mutual Funds, in the announcement. “Alongside our Global Real Asset and Inflation Plus funds, Municipal Real Return is another way for financial advisers to address their clients’ inflation concerns, and still give them access to tax-free investing.”  

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