The Hartford Target Retirement Funds

Transcription

1 The Hartford Target Retirement Funds Sub-advised by Hartford Investment Management 2011 First Quarter Review Economic Review Asset Class Highlights Outlook Performance Review

2 Economic Review Despite substantial global headwinds, U.S. economic growth continued to rebound over the 1st quarter. The peaceful demonstrations in Tunisia and Egypt evolved into unrest in Bahrain and war in Libya, impacting oil supply and raising concerns over possible contagion from the political unrest in the region. Headline inflation accelerated and exacerbated an already problematic inflationary trend for central banks. The Japanese earthquake and tsunami devastation also rattled the market and led to coordinated central bank intervention. Against this backdrop, the U.S. economy proved resilient, as the most recent U.S. manufacturing numbers reflect an improvement over the prior quarter. U.S. unemployment remains elevated at 8.8% but shows steady improvement from its 2010 high of 9.8%, which is a positive sign for the economy. Though we are experiencing some inflationary pressures, credit expansion, housing, and labor remain weak and should prevent inflation from rising too violently. In the meantime, however, we are watching core inflation to see if rising oil prices are having an impact, which may have a negative effect on the economy. Overall, risk assets outperformed, as capital markets were able to digest the events of the quarter and march forward. Overall, equity outperformed fixed income over the quarter. Within U.S. equities, the S&P 500 Index 1 gained 5.92% for the quarter. Small-cap stocks outperformed mid-caps, followed by large-caps. With regard to investment style, growth beat value in mid-caps and small-caps. Large-cap value, however, outperformed over the period. U.S. stocks outperformed international stocks, as the effects of the European sovereign debt crisis continue to be felt. Among the thirteen equity asset classes in our equity investment universe, commodities, measured by the Deutsche Bank Liquid Commodity Optimum Yield Index 2, posted the strongest results, up 10.76%, for a third straight quarter of double-digit returns. Within fixed income, U.S. Treasury yields rose over the period, with the two-year U.S. Treasury note rising 23 basis points (bps) to 0.82% and the ten-year U.S. Treasury note rising 18 bps to 3.47%. Within the major sectors of the Barclay s Capital U.S. Aggregate Index 3, commercial mortgagebacked securities (CMBS) was the top performer, while U.S. Treasuries were the worst. Risk assets, such as U.S. high yield bonds and bank loans outperformed the Barclays Capital U.S. Aggregate Index 3. Emerging market debt struggled during the first part of the quarter but finished strong, ending the quarter marginally outperforming the Barclays Capital U.S. Aggregate Index 3. Among the asset classes within our fixed income universe, U.S. high yield, measured by the Barclays Capital U.S. Corporate High Yield Index 4, posted the strongest results, up 3.88% for the period. Figure 1 The Hartford Target Retirement Funds use an attractive array of traditional and non-traditional asset classes. In addition, the Funds continue to align the allocations to match the appropriate target date. Target-date retirement funds are designed for investors who plan to retire and begin withdrawing money close to the projected target-retirement fund year. The principal value of the Funds are not guaranteed at any time, including at the target date. Below are the quarter-over-quarter market returns of the nineteen asset classes used in The Hartford Target Retirement Funds, represented by their appropriate index. 20% 15% 10% 5% 0% -5% 12/31/2010 3/31/2011 Large-Cap Growth Large-Cap Value Mid-Cap Growth Mid-Cap Value Small-Cap Growth Small-Cap Value U.S. REITs International Growth International Value International Small-Cap Emerging Market Stocks International REITs Cash Intermediate Bonds TIPS Short-Term Bonds Bank Loans High Yield Emerging Market Debt Commodities 2

3 Allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Fund Age Glide Path Stock Bonds The Hartford Target Retirement Funds are designed to achieve long-term investment objectives. The Fund allocates its investments increasingly in fixed income investments and decreasingly focused in equity investments as the Fund s target year approaches. Therefore, if the Fund is farther away before its target year, it will hold a higher percentage of equity investments, be more aggressive in its investment strategy and be more volatile. Each individual retirement fund manages risk over time, adjusting the asset-class blend as the target date approaches or passes. Asset Class Highlights Commodities to benefit in the current environment Commodities include hard assets such as oil, precious metals and agricultural crops. These assets usually respond quickly to fluctuations in the general price level, so exposure to a diversified basket of commodities becomes an effective hedge against inflation. While commodity prices can be volatile, combined with other asset classes, they are an effective component of an investor s diversified portfolio. The asset class exhibits exceptionally low or negative correlation to traditional asset classes (0.17 to the S&P 500 Index 1 and to the Barclays Capital U.S. Aggregate Index 3 ). Many forces have driven commodity prices higher over the last quarter. Inflationary fears have driven gold and other precious metals higher and favorable global economic growth, combined with instability in the Middle East and North Africa region, has placed upward pressure on oil and other energy commodities. Severe weather in key producing countries, combined with global monetary policy decisions to keep rates low, have forced agricultural commodity prices higher. Based on this market backdrop, we expect commodities to continue to perform well, with commodities outperforming the S&P 500 Index 1, 10.76% to 5.92%, respectively, over the first quarter. Maintain purchasing power through TIPS TIPS are designed to keep pace with changes in the Consumer Price Index (CPI). The principal component has the greatest impact to the return of TIPS as the price of the security will rise and fall with inflation. The breakeven inflation rate, or the yield spread between a nominal and inflation-linked bond of equivalent maturity, reflects investor inflation expectations. For example, as of March 31, 2011, the difference between the yields on the 10- year U.S. Treasury note versus the 10-year TIPS was 2.5%. If actual inflation is higher (lower) than the breakeven inflation rate of 2.5%, TIPS should out(under)-perform the equivalent maturity U.S. Treasury note. Reflective of the current rising interest rate environment, TIPS outperformed intermediate-term bonds over the first quarter, returning 2.08% versus 0.42% for the Barclays Capital U.S. Aggregate Index 3. We believe the backdrop for TIPS remains positive, as economic momentum will likely weather the current rise in energy prices. A baseline fixed income component: Intermediate-term bonds Intermediate bonds, represented by the Barclays Capital U.S. Aggregate Index 3, represent a well diversified investment mix of U.S. treasuries, U.S. agencies, investment grade corporate, mortgage-backed securities (MBS), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), nondollar bonds and tax-exempt municipals. In general, bond returns result from either price return (the change in the market price of the bond) or coupon return (the coupon rate multiplied by the face value of the security). Generally bond prices exhibit an inverse relationship to interest rates; therefore the price of the bond can change in response to fluctuations in interest rates. As interest rates rise, the price of the bond will decrease, and vice versa. Since 1979, Intermediate bonds have had a low correlation (0.22) to equities as well as an attractive risk-return profile. Over the long-term, while equities have exhibited higher absolute returns, intermediate bonds actually have higher returns per unit of risk, measured by standard deviation of returns. Given the rising interest rate environment we are experiencing, the coupon return component will likely comprise the bulk of returns for the asset class in Despite intermediate bond underperformance in the first quarter, we maintain that as the economic recovery continues, a diversified portfolio that includes an intermediate bond allocation will help prudent investors benefit from strength in up-markets while controlling for risk. 3

4 Outlook As we look further into 2011, we see a continuation of several similar themes and a new dynamic in the economy that is taking hold. We expect inflation to rise with slow global growth and a low yielding environment to continue. We saw a break with the risk on/risk off market in the 1st quarter, as return correlations initially rose in response to global events, before subsiding to 12-month lows. This differs from the global events we experienced in 2010, such as the European sovereign debt crisis, when return correlations increased and remained elevated. In other words, we believe that the market will trade less on speculative macro forces, when asset class correlations generally rise, and more on security fundamentals. Though not a near-term risk, the Fund is well positioned for a higher inflationary environment. We expect to benefit in this environment with allocations to TIPS, real estate investment trusts (REITS) and commodities. Global and domestic monetary policy will continue to support global growth. This growth should be supportive of asset classes such as commodities and domestic and international small-caps. In this low yield environment, the Funds will continue to allocate to higher yielding fixed income and equity asset classes such as emerging market debt and stocks and dividend-paying equity such as REITS and large-cap value. Three-step Asset Allocation Process Strategic Asset Allocation Fund Selection Dynamic Management We use an attractive array of traditional and non-traditional asset classes (20 in total) Our focus is to determine the specific targets that help us deliver an optimal, well diversified portfolio Comprehensive underlying patent pending fund selection process Utilize proprietary fund family and Exchange-Traded Funds (ETFs) to meet asset class targets Smart Strategic: modestly adjusting long-term allocations to take advantage of short-term opportunities in the market. Cash Flow Management: we use a patent pending cash flow tool to maintain the integrity of each fund s stock/bond percentage mix. This reduces turnover and limits the need for hard balances 4

5 Performance Review By design, all of the Funds maintain exposure to various equity and fixed income asset classes in order to deliver a well diversified portfolio solution. However, the actual contribution towards performance will vary by Fund because each Fund has a different level of risk based on expected retirement target date. Funds closest to their target date will be less risky and have less exposure to riskier asset classes than those with a longer time horizon. For the first quarter, performance for The Hartford Target Retirement funds relative to their respective benchmarks was positive, outperforming their respective benchmarks. Overall, equity asset allocation decisions contributed to performance. The strategic asset allocation decisions within fixed income contributed to performance for The Hartford Retirement , 2040 and The fixed income allocation decisions were mixed within The Hartford Retirement funds. Asset Class / Fund Allocation Beyond The Hartford Target Retirement Fund s stock and bond benchmark, as represented by the S&P 500 Index 1 and the Barclays Capital U.S. Aggregate Bond Index 3, overall diversification across equities was favorable. Within fixed income, however, overall diversification was favorable for The Hartford Retirement , 2040 and 2045 funds, while diversification was mixed for The Hartford Retirement funds. Within equities, the Funds benefited from its structural value bias as domestic large-cap value outperformed domestic largecap growth, and international value stocks more than doubled the performance of international growth stocks over the period. The Funds also benefited from an out-of-benchmark allocation There are two main drivers of the Fund s performance: the asset allocation among various asset classes and the performance of the underlying funds. Asset Class / Fund Allocation within this performance driver we seek to add value by strategically allocating within the stock and bond sub asset classes. This measures the value added by both the portfolio s strategic asset allocation across a diverse set of twenty sub-asset classes and the portfolio s allocation across underlying funds. Underlying Funds measures the performance of the underlying Fund managers. to commodities, which was the best performing asset class in our universe. Positive asset allocation measures were partially offset by international equity exposure, as international developed markets underperformed the S&P 500 Index 1. Diversification within international equities detracted from performance, as international smallcap stocks, emerging market stocks, and international real estate investment trusts (REITs) underperformed international developed markets. Across the fixed income sub asset classes, The Hartford Target Retirement funds benefited from its exposure to riskier credit sectors, as high yield bonds and bank loans outperformed the Barclays Capital U.S. Aggregate Index 3, which in turn outperformed short term bonds. In addition, The Hartford Target Retirement funds benefited from diversification within intermediate bonds mainly driven by strong performance in TIPS. Diversifying further into short-term bonds, however, detracted from performance for The Hartford Target Retirement funds. Underlying Funds Underlying Funds performance results were mixed. Within equity funds, negative results for The Hartford Target Retirement were driven by the Funds mid-cap growth allocation. The Hartford Target Retirement and 2045 Funds partially offset the negative mid-cap growth allocation by positive fund selection within the international large-cap value allocation. In addition, positive performance results for The Hartford Target Retirement 2050 was driven by the small-cap growth allocation, partially offset by negative fund selection in large-cap growth. Within fixed income funds, contribution from fund selection was effectively neutral. 5

6 The Hartford Target Retirement Funds as of 3/31/ Inception Date 9/30/ /31/2008 9/30/ /31/2008 9/30/ /31/ /31/ /31/ /31/2008 Fixed Income Statistics % in Fixed Income 45% 39% 33% 27% 21% 16% 11% 7% 5% # of Issuers Average Coupon* 3.98% 4.08% 4.22% 3.50% 3.86% 3.62% 3.18% 3.12% 3.60% Yield to Maturity % 3.69% 3.86% 3.05% 3.38% 3.09% 3.29% 3.27% 3.42% Weighted Average Life yrs 6.14 yrs 6.51 yrs 5.80 yrs 6.36 yrs 5.78 yrs 8.15 yrs 8.19yrs 7.87 yrs Effective Duration yrs 3.62 yrs yrs 3.89 yrs 3.49 yrs 4.89 yrs 4.90yrs 4.81 yrs Equity Statistics % in Equities 55% 61% 67% 73% 79% 84% 89% 93% 95% # of Equity Holdings Project P/E Ratio Year EPS Asset Weighted Market Cap $49.6b $52.4b $51.0b $51.9b $51.4b $44.5b $44.6b $44.6b $45.3b Medium Market Cap $2.9b $3.0b $3.0b $3.0b $3.0b $3.0b $3.0b $3.0b $3.0b *For consistency, coupon strips have been excluded Expenses Fund Class Net Operating Expenses 10 Gross Operating Expenses 11 The Hartford Target Retirement 2010 Fund Class A 1.00% 1.67% The Hartford Target Retirement 2010 Fund Class R3 1.50% 1.97% The Hartford Target Retirement 2010 Fund Class R4 0.85% 1.75% The Hartford Target Retirement 2010 Fund Class R5 0.80% 1.45% The Hartford Target Retirement 2015 Fund Class R3 1.15% 2.98% The Hartford Target Retirement 2015 Fund Class R4 0.85% 2.66% The Hartford Target Retirement 2015 Fund Class R5 0.80% 2.39% The Hartford Target Retirement 2020 Fund Class A 1.05% 1.51% The Hartford Target Retirement 2020 Fund Class R3 1.20% 1.95% The Hartford Target Retirement 2020 Fund Class R4 0.90% 1.57% The Hartford Target Retirement 2020 Fund Class R5 0.85% 1.27% The Hartford Target Retirement 2025 Fund Class R3 1.20% 3.01% The Hartford Target Retirement 2025 Fund Class R4 0.90% 2.70% The Hartford Target Retirement 2025 Fund Class R5 0.85% 2.47% The Hartford Target Retirement 2030 Fund Class A 1.05% 1.60% The Hartford Target Retirement 2030 Fund Class R3 1.20% 1.94% The Hartford Target Retirement 2030 Fund Class R4 0.90% 1.61% The Hartford Target Retirement 2030 Fund Class R5 0.85% 1.31% The Hartford Target Retirement 2035 Fund Class R3 1.20% 3.15% The Hartford Target Retirement 2035 Fund Class R4 0.90% 2.83% The Hartford Target Retirement 2035 Fund Class R5 0.85% 2.57% The Hartford Target Retirement 2040 Fund Class R3 1.20% 3.22% The Hartford Target Retirement 2040 Fund Class R4 0.90% 2.91% The Hartford Target Retirement 2040 Fund Class R5 0.85% 2.62% The Hartford Target Retirement 2045 Fund Class R3 1.25% 3.22% The Hartford Target Retirement 2045 Fund Class R4 0.90% 2.90% The Hartford Target Retirement 2045 Fund Class R5 0.90% 2.64% The Hartford Target Retirement 2050 Fund Class R3 1.25% 3.23% The Hartford Target Retirement 2050 Fund Class R4 0.95% 2.94% The Hartford Target Retirement 2050 Fund Class R5 0.90% 2.64% 6

7 Average Annual Total Return as of 3/31/2011 Fund Class Excluding Sales Charge Inception Date YTD 1 Yr 3 Yr Since Inception Including Maximum Sales Charge of 5.5% 1 Yr Since Inception The Hartford Target Retirement 2010 Fund Class A 9/30/ % 12.94% 4.18% 4.48% 6.73% 3.41% The Hartford Target Retirement 2010 Fund Class R3 9/30/ % 12.68% 3.92% 4.32% 12.68% 4.32% The Hartford Target Retirement 2010 Fund Class R4 9/30/ % 13.13% 4.28% 4.59% 13.13% 4.59% The Hartford Target Retirement 2010 Fund Class R5 9/30/ % 13.16% 4.41% 4.71% 13.16% 4.71% The Hartford Target Retirement 2010 Fund Class Y 9/30/ % 13.07% 4.35% 4.72% The Hartford Target Retirement 2015 Fund Class R3 10/31/ % 13.20% % 13.20% 17.25% The Hartford Target Retirement 2015 Fund Class R4 10/31/ % 13.58% % 13.58% 17.60% The Hartford Target Retirement 2015 Fund Class R5 10/31/ % 13.59% % 13.59% 17.66% The Hartford Target Retirement 2020 Fund Class A 9/30/ % 14.30% 3.87% 4.44% 8.02% 3.37% The Hartford Target Retirement 2020 Fund Class R3 9/30/ % 14.17% 3.65% 4.28% 14.17% 4.28% The Hartford Target Retirement 2020 Fund Class R4 9/30/ % 14.59% 3.99% 4.54% 14.59% 4.54% The Hartford Target Retirement 2020 Fund Class R5 9/30/ % 14.61% 4.11% 4.66% 14.61% 4.66% The Hartford Target Retirement 2020 Fund Class Y 9/30/ % 14.63% 4.13% 4.71% The Hartford Target Retirement 2025 Fund Class R3 10/31/ % 13.92% % 13.92% 17.66% The Hartford Target Retirement 2025 Fund Class R4 10/31/ % 14.29% % 14.29% 18.00% The Hartford Target Retirement 2025 Fund Class R5 10/31/ % 14.30% % 14.30% 18.06% The Hartford Target Retirement 2030 Fund Class A 9/30/ % 15.35% 3.37% 4.11% 9.01% 3.05% The Hartford Target Retirement 2030 Fund Class R3 9/30/ % 15.29% 3.19% 3.97% 15.29% 3.97% The Hartford Target Retirement 2030 Fund Class R4 9/30/ % 15.67% 3.51% 4.23% 15.67% 4.23% The Hartford Target Retirement 2030 Fund Class R5 9/30/ % 15.55% 3.60% 4.30% 15.55% 4.30% The Hartford Target Retirement 2030 Fund Class Y 9/30/ % 15.77% 3.65% 4.40% The Hartford Target Retirement 2035 Fund Class R3 10/31/ % 15.97% % 15.97% 19.33% The Hartford Target Retirement 2035 Fund Class R4 10/31/ % 16.23% % 16.23% 19.68% The Hartford Target Retirement 2035 Fund Class R5 10/31/ % 16.34% % 16.34% 19.75% The Hartford Target Retirement 2040 Fund Class R3 10/31/ % 16.76% % 16.76% 19.57% The Hartford Target Retirement 2040 Fund Class R4 10/31/ % 17.11% % 17.11% 19.92% The Hartford Target Retirement 2040 Fund Class R5 10/31/ % 17.14% % 17.14% 19.95% The Hartford Target Retirement 2045 Fund Class R3 10/31/ % 16.80% % 16.80% 19.80% The Hartford Target Retirement 2045 Fund Class R4 10/31/ % 17.11% % 17.11% 20.14% The Hartford Target Retirement 2045 Fund Class R5 10/31/ % 17.22% % 17.22% 20.21% The Hartford Target Retirement 2050 Fund Class R3 10/31/ % 16.91% % 16.91% 19.73% The Hartford Target Retirement 2050 Fund Class R4 10/31/ % 17.29% % 17.29% 20.11% The Hartford Target Retirement 2050 Fund Class R5 10/31/ % 17.32% % 17.32% 20.14% Performance data quoted represents past performance and does not guarantee future results. The investment return and principle value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more current performance information to the most recent month ended, please see 7

8 1. S&P 500 Index is an unmanaged broad-based measure of market performance. 2. Deutsche Bank Liquid Commodity Index: Optimum Yield tracks the performance of 24 commodities drawn from the energy, precious metals, industrial metals, agricultural and livestock sectors. 3. Barclays Capital U.S. Aggregate Index - The index is comprised of publicly traded bonds including U.S. Government, mortgage-backed, corporate and Yankee bonds with an approximate average maturity of 10 years. 4. Barclays Capital U.S. Corporate High Yield Index is a market value-weighted index that tracks the daily price-only, coupon, and total return performance of non-investment grade, fixed-rate, publicly placed, dollar-denominated, and nonconvertible debt. The above indices are unmanaged and are not available for direct investment. 5. Yield to Maturity: The average coupon and yield to maturity do not represent the performance of the Fund. These statistics do not take into account any fees and expenses associated with investments or the Fund. 6. Weighted Average Life: Average life for a bond is the length of time, in years, until the principal amount of a bond must be repaid. Weight Average Life for a portfolio is the sum of the average life of each security weighted by its market value. 7. Effective duration of the Fund is a weighted average of the approximate percentage change in the price of the Fund s holdings that will result from a one percent change in interest rates. For example, the price of a single bond holding with an effective duration of five years will rise (fall) five percent for every one percent decrease (increase) in interest rates. Generally, the longer a Fund s effective duration, the more sensitive the prices of its holdings are to changes in interest rates. 8. A measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. The earnings used are just an estimate and are not as reliable as current earnings data. Please note the measure of Projected P/E is not a forecast of the fund s performance. 9. The portion of a company s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company s profitability. Please note the measure of the 5-Year EPS Growth Rate is not a forecast of the fund s performance. 10. Net operating expenses are the expenses you are currently paying to own the Fund. If the net operating expenses shown are lower than the gross operating expenses, then the net operating expenses reflect contractual fee waivers and expense reimbursements that may not be renewed. Contractual waivers or reimbursements remain in effect until February 29, 2012, and automatically renew for one-year terms unless terminated by the Fund s Adviser (HIFSCO) or Transfer Agent (HASCO). For more information about the fee arrangement and expiration dates, please see the expense table in the prospectus. 11. Gross operating expenses shown are before management fee waivers or expense caps. Performance information may reflect historical or current expense waivers or reimbursements, without which, performance would have been lower. For more information on fee waivers and/or expense reimbursements, please see the expense table in the prospectus. The Fund allocates its investments increasingly in fixed income investments and decreasingly focused in equity investments as the Fund s target year approaches. Therefore, if the Fund is farther away before its target year, it will hold a higher percentage of equity investments, be more aggressive in its investment strategy and be more volatile. Target-date retirement funds are designed for investors who plan to retire and begin withdrawing money close to the projected target-retirement fund year. The principal value of the Funds are not guaranteed at any time, including at the target date. The Fund has limitations on the amount of assets that may be allocated to each asset class, which makes it less flexible in its investment strategy. The Fund is exposed to the risks of the Underlying Funds in direct proportion to the allocation to each Underlying Fund. In addition to the Fund s own fees and expenses, you will indirectly bear the Underlying Funds fees and expenses. The Fund s performance and transaction costs may be increased by rebalancing among Underlying Funds. Risks of the underlying funds include: The Fund may invest in foreign securities, which can be riskier than investments in U.S. securities (risks may include currency risk, illiquidity risks, and risks from substantially lower trading volume on foreign markets). A portion of this Fund s assets may be below investment grade securities ( highyield securities or junk bonds ), which are rated lower because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. The Fund is subject to credit risk (the risk that the issuing company may not be able to pay interest and principal when due), interest-rate risk (the risk that your investment may go down in value when interest rates rise), and risk of loss (the risk that you could lose money on your investment). The Fund invests in securities of small-cap and/or mid-cap companies, which can be riskier than stocks of larger companies, because smaller companies can be young, may have limited business histories, and frequently rely on narrow product lines and niche markets. This Fund invests in bank loans, which carry credit risks of nonpayment of principal or interest, along with risks of bankruptcy, insolvency, illiquidity, and valuation. The Fund invests in mortgage-backed and asset-backed securities, which are subject to higher interest rate and prepayment risk; the value of these investments may be reduced or become worthless if they are subordinated and receive interest or income payments only after other interests in the same mortgage or asset pool are satisfied. You should carefully consider investment objectives, risks, and charges and expenses of The Hartford Mutual Funds before investing. This and other information can be found in the Fund s prospectus or summary prospectus, which can be obtained from your investment representative or by calling Please read them carefully before you invest or send money. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice. The Hartford Mutual Funds are underwritten and distributed by Hartford Investment Financial Services, LLC. All information and representations herein are as of 9/10 unless otherwise noted. 8 MFxxxx