Hartford AAA CLO ETF Q2 2026 Commentary

Collateralized loan obligation bonds generated positive total returns over the period. The Hartford AAA CLO Fund outperformed the JP Morgan CLO AAA Index during the quarter. The portfolio’s out-of-benchmark allocations to single A and AA CLOs contributed to relative returns over the quarter. The portfolio’s security selection within AAA CLOs contributed over the period. CLO spreads are tight vs. their history, but the sector offers attractive income relative to other credit sectors. US fixed-income markets delivered positive returns in the second quarter of 2026 as easing geopolitical tensions and resilient economic growth supported risk sentiment. While front-end Treasury yields rose following the hawkish June FOMC