
What Is the Hartford Capital Appreciation Fund’s Retail Exposure?
Nov. 23 2015, Published 11:07 a.m. ET
YTD performance
The Hartford Capital Appreciation Fund-Class A (ITHAX) returned 2.9% for the YTD (year-to-date) period ending November 19, 2015. Meanwhile, its benchmark, the Russell 3000, rose 0.5% in the same period. The S&P Retail Select Index, which can be considered a proxy for the US retail sector, fell 9.8% for the YTD period ending November 19, 2015. As of September 2015, the ITHAX had 22.7% of the fund’s net assets invested in the consumer discretionary and the consumer staples sectors combined.
Auto industry’s sales growth
For the month of October, TrueCar estimated an increase in motor vehicle revenue by 11.4% as compared to a year ago. However, according to reports by the Department of Commerce, US auto sales rose by only 6.2% in October as compared to a year ago. The TrueCar report also forecast total auto revenue to reach close to $1.2 trillion for the year, but with the October forecast lower than expected, we might see auto revenue miss this $1.2 trillion estimate also. Higher demand in motor vehicles is due to a lower interest rate and falling fuel prices.
ITHAX’s holdings in auto stocks
As of September 2015, ITHAX’s auto stock holdings included Volkswagen (VLKAY), which makes up 0.2% of the fund’s portfolio, Honda Motor Company (HMC) with a portfolio weight of 0.1%, Harley-Davidson (HOG) with a portfolio weight of 0.1%, and Fiat Chrysler Automobiles (FCAU) with a portfolio weight of 0.6%.