<PAGE> 1
THE HARTFORD MUTUAL FUNDS, INC.
CLASS A, CLASS B AND CLASS C SHARES
PROSPECTUS
MAY 1, 1999
<TABLE>
<S> <C>
AS WITH ALL MUTUAL FUNDS, THE SMALL COMPANY FUND
SECURITIES AND EXCHANGE COMMISSION CAPITAL APPRECIATION FUND
HAS NOT APPROVED OR DISAPPROVED MIDCAP FUND
THESE SECURITIES OR PASSED UPON INTERNATIONAL OPPORTUNITIES FUND
THE ADEQUACY OF THIS PROSPECTUS. GLOBAL LEADERS FUND
ANY REPRESENTATION TO THE CONTRARY STOCK FUND
IS A CRIMINAL OFFENSE. GROWTH AND INCOME FUND
DIVIDEND AND GROWTH FUND
ADVISERS FUND
HIGH YIELD FUND
BOND INCOME STRATEGY FUND
MONEY MARKET FUND
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC.
P.O. BOX 8416
BOSTON, MA 02266-8416
<PAGE> 2
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE> 3
INTRODUCTION
- --------------------------------------------------------------------------------
The Hartford Mutual Funds, Inc. is a family of twelve mutual funds, each with
its own investment strategy and risk/reward profile. This prospectus relates to
the Class A, B and C shares of each fund. Information on each fund can be found
on the pages following this introduction.
Mutual funds are not bank deposits and are not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Because
you could lose money by investing in these funds, be sure to read all risk
disclosures carefully before investing.
CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
A summary of each fund's goals, The Hartford Small Company Fund 2
strategies, risks, performance and The Hartford Capital Appreciation Fund 4
expenses. The Hartford MidCap Fund 6
The Hartford International Opportunities Fund 8
The Hartford Global Leaders Fund 10
The Hartford Stock Fund 12
The Hartford Growth and Income Fund 14
The Hartford Dividend and Growth Fund 16
The Hartford Advisers Fund 18
The Hartford High Yield Fund 20
The Hartford Bond Income Strategy Fund 22
The Hartford Money Market Fund 24
Prior performance of similar funds 26
Description of additional Additional investment matters 28
investment strategies and
investment risks.
Investment manager and management Management of the funds 29
fee information.
Information on your account. About your account 30
Choosing a share class 30
How sales charges are calculated 30
Sales charge reductions and waivers 31
Opening an account 32
Buying shares 33
Selling shares 34
Transaction policies 36
Dividends and account policies 37
Additional investor services 37
Further information on the funds. Additional share classes 39
Financial highlights 40
For more information back
cover
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 1
<PAGE> 4
THE HARTFORD SMALL COMPANY FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Small Company Fund seeks growth of
capital by investing primarily in stocks selected on the basis of potential for
capital appreciation.
The fund normally invests at least 65% of its total assets in common stocks of
companies with market capitalizations within the range represented by the
Russell 2000 Index. As of December 31, 1998 this range was between approximately
$4 million and $3.4 billion and the average market capitalization was $560
million.
Through fundamental analysis Wellington Management identifies companies that it
believes have substantial potential for near-term capital appreciation.
Wellington Management selects securities of companies that, in its opinion:
- have potential for above-average earnings growth,
- are undervalued in relation to their investment potential,
- have positive business and/or fundamental financial characteristics that
are overlooked or misunderstood by investors, or
- are relatively obscure and undiscovered by the overall investment
community.
Fundamental analysis of a company involves the assessment of such factors as its
business environment, management, balance sheet, income statement, anticipated
earnings, revenues, dividends, and other related measures of value.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements. Because the fund concentrates on small
companies, its performance may be more volatile than that of a fund that invests
primarily in larger companies.
Stocks of smaller companies may be more risky than stocks of larger companies.
Many of these companies are young and have limited operating or business
history. Because these businesses frequently rely on narrow product lines and
niche markets, they can suffer severely from isolated business setbacks.
The fund's management strategy will influence performance significantly. Small
company stocks as a group could fall out of favor with the market, causing the
fund to underperform funds that focus on other types of stocks. Similarly, if
the managers' stock selection strategy doesn't perform as expected, the fund
could underperform its peers or lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of a broad-based market index for comparison). The bar chart figures do not
include the effect of sales charges, while the average annual total return
figures do. If sales charges were reflected in the bar chart, returns would have
been lower. All figures assume that all dividends and distributions were
reinvested. Keep in mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[bar chart]
<TABLE>
<CAPTION>
THE HARTFORD SMALL COMPANY FUND
-------------------------------
<S> <C>
'97' 19.28
'98' 10.46
</TABLE>
BEST QUARTER: up 27.86%, fourth quarter 1998
WORST QUARTER: down 20.78%, third quarter 1998
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A 4.38% 15.46%
Class B 4.73% 16.41%
Class C(1) 7.72% 16.94%
Russell 2000 Index -2.55% 13.79%
</TABLE>
INDEX: Russell 2000 Index, an unmanaged index of small company equity
securities.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
2 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 5
THE HARTFORD SMALL COMPANY FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGER
Mark E. Waterhouse
- Vice President of
Wellington Management
- Manager of the fund since
1997
- Joined Wellington Management
in 1995
- Investment professional
since 1984
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.85% 0.85% 0.85%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.37% 0.37% 0.61%
Total operating expenses(2) 1.57% 2.22% 2.46%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.45% for Class A,
2.15% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 702 $ 728 $ 450
Year 3 $1,022 $1,001 $ 868
Year 5 $1,364 $1,401 $1,412
Year 10 $2,325 $2,576 $2,894
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 702 $ 228 $ 350
Year 3 $1,022 $ 701 $ 868
Year 5 $1,364 $1,201 $1,412
Year 10 $2,325 $2,576 $2,894
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 3
<PAGE> 6
THE HARTFORD CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Capital Appreciation Fund seeks growth
of capital by investing primarily in stocks selected on the basis of potential
for capital appreciation.
The fund normally invests at least 65% of its total assets in common stocks of
small, medium and large companies.
Through fundamental analysis, Wellington Management identifies companies that it
believes have substantial near-term capital appreciation potential regardless of
company size or industry sector. This strategy is sometimes referred to as a
"stock picking" approach. Small and medium sized companies are selected
primarily on the basis of dynamic earnings growth potential. Larger companies
are selected primarily based on the expectation of a significant event that
Wellington Management believes will trigger an increase in the stock price.
In analyzing a prospective investment Wellington Management looks at a number of
factors, such as business environment, management, balance sheet, income
statement, anticipated earnings, revenues, dividends and other related measures
of value.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements. Because the fund concentrates on small,
medium and large companies, its performance may be more volatile than that of a
fund that invests primarily in larger companies.
Stocks of small or mid-sized companies may be more risky than stocks of larger
companies. These companies may be young and have more limited operating or
business history. Because these businesses frequently rely on narrower product
lines and niche markets, they can suffer from isolated business setbacks.
The fund's management strategy will influence performance significantly. If the
managers' stock selection strategy doesn't perform as expected, the fund could
underperform its peers or lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of a broad-based market index for comparison). The bar chart figures do not
include the effect of sales charges, while the average annual total return
figures do. If sales charges were reflected in the bar chart, returns would have
been lower. All figures assume that all dividends and distributions were
reinvested. Keep in mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[bar chart]
<TABLE>
<CAPTION>
THE HARTFORD CAPITAL APPRECIATION FUND
--------------------------------------
<S> <C>
'97' 55.11
'98' 3.26
</TABLE>
BEST QUARTER: up 31.19%, second quarter 1997
WORST QUARTER: down 21.94%, third quarter 1998
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A -2.42% 35.07%
Class B -2.48% 36.54%
Class C(1) 0.56% 36.79%
S&P 500 Index 28.60% 33.45%
</TABLE>
INDEX: S&P 500 Index, an unmanaged index of equity securities.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
4 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 7
THE HARTFORD CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGERS
Saul J. Pannell
- Senior Vice President of
Wellington Management
- Manager of the fund since
inception (1996)
- Joined Wellington Management
in 1979
- Investment professional
since 1974
Mark E. Waterhouse
- Vice President of Wellington
Management
- Associate Manager of the
fund since 1996
- Joined Wellington Management
in 1995
- Investment professional
since 1984
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.80% 0.80% 0.80%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.34% 0.35% 0.49%
Total operating expenses(2) 1.49% 2.15% 2.29%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.45% for Class A,
2.15% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 720 $ 432
Year 3 $ 998 $ 980 $ 816
Year 5 $1,324 $1,365 $1,325
Year 10 $2,241 $2,503 $2,722
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 220 $ 332
Year 3 $ 998 $ 680 $ 816
Year 5 $1,324 $1,165 $1,325
Year 10 $2,241 $2,503 $2,722
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 5
<PAGE> 8
THE HARTFORD MIDCAP FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford MidCap Fund seeks long-term growth of
capital by investing primarily in stocks selected on the basis of potential for
capital appreciation.
The fund normally invests at least 65% of its total assets in common stocks of
companies with market capitalizations within the range represented by the
Standard & Poor's MidCap 400 Index. As of December 31, 1998 this range was
between approximately $142 million and $11.6 billion and the average market
capitalization was $2.2 billion.
The fund uses a two-tiered investment strategy:
- Using what is sometimes referred to as a "top down" approach, Wellington
Management analyzes the general economic and investment environment. This
includes an evaluation of economic conditions, U.S. fiscal and monetary
policy, and demographic trends. Through top down analysis, Wellington
Management anticipates trends and changes in markets and the economy
overall and identifies industries and sectors that are expected to
outperform.
- Top down analysis is followed by what is sometimes referred to as a
"bottom up" approach, which is the use of fundamental analysis to
identify specific securities for purchase or sale. Fundamental analysis
involves the assessment of a company through such factors as its business
environment, management, balance sheet, income statement, anticipated
earnings, revenues, and other related measures of value.
The fund favors high-quality growth companies. The key characteristics of
high-quality growth companies include a leadership position within an industry,
a strong balance sheet, a high return on equity, and a strong management team.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements. Because the fund concentrates on
mid-sized companies, its performance may be more volatile than that of a fund
that invests primarily in larger companies.
Stocks of mid-sized companies may be more risky than stocks of larger companies.
These companies may be young and have more limited operating or business
history. Because these businesses frequently rely on narrower product lines and
niche markets, they can suffer from isolated business setbacks.
The fund's management strategy will influence performance significantly.
Mid-sized company stocks as a group could fall out of favor with the market,
causing the fund to underperform funds that focus on other types of stocks.
Similarly, if the managers' stock selection strategy doesn't perform as
expected, the fund could underperform its peers or lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart indicates the fund's total return for one calendar
year while the table shows the fund's performance over time (along with that of
a broad based market index for comparison). The bar chart figures do not include
the effect of sales charges, while the average annual total return figures do.
If sales charges were reflected in the bar chart, returns would have been lower.
All figures assume that all dividends and distributions were reinvested. Keep in
mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[Hartford Midcap Fund Bar Graph]
<TABLE>
<CAPTION>
THE HARTFORD MIDCAP FUND
------------------------
<S> <C>
'98' 23.12
</TABLE>
BEST QUARTER: up 27.59%, fourth quarter 1998
WORST QUARTER: down 16.03%, third quarter 1998
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 12/30/97)
<S> <C> <C>
Class A 16.35% 16.19%
Class B 17.32% 18.15%
Class C(1) 20.08% 20.90%
S&P MidCap 400 Index 18.25% 19.08%
</TABLE>
INDEX: Standard & Poor's MidCap 400 Index, an unmanaged index of equity
securities.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
6 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 9
THE HARTFORD MIDCAP FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGER
Phillip H. Perelmuter
- Vice President of Wellington
Management
- Manager of the fund since
inception (1997)
- Joined Wellington Management
in 1995
- Investment professional
since 1983
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.85% 0.85% 0.85%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.42% 0.46% 0.72%
Total operating expenses(2) 1.62% 2.31% 2.57%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.45% for Class A,
2.15% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 707 $ 737 $ 461
Year 3 $1,037 $1,029 $ 901
Year 5 $1,389 $1,448 $1,467
Year 10 $2,377 $2,669 $3,004
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 707 $ 237 $ 361
Year 3 $1,037 $ 729 $ 901
Year 5 $1,389 $1,248 $1,467
Year 10 $2,377 $2,669 $3,004
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 7
<PAGE> 10
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford International Opportunities Fund seeks
growth of capital by investing primarily in stocks issued by non-U.S. companies.
The fund normally invests at least 65% of its assets in stocks issued by
non-U.S. companies which trade in foreign markets generally considered to be
well established. Under normal market conditions the fund diversifies its
investments among at least three countries other than the United States. The
securities in which the fund invests are denominated in both U.S. dollars and
non-U.S. currencies and generally are traded in non-U.S. markets.
Wellington Management uses a three-pronged investment strategy:
- Wellington Management determines the relative attractiveness of the many
countries in which the fund may invest based upon its analysis of the
economic and political environment of each country.
- Wellington Management also evaluates industries on a global basis to
determine which industries offer the most potential for capital
appreciation given current and projected global and local economic and
market conditions.
- Wellington Management conducts fundamental research on individual
companies to identify securities for purchase or sale. Fundamental
analysis of a company involves the assessment of such factors as its
business environment, management, balance sheet, income statement,
anticipated earnings, revenues, dividends, and other related measures of
value.
In analyzing companies for investment, Wellington Management considers companies
for inclusion in the fund's portfolio that are typically larger, high-quality
companies that operate in established markets. Characteristics of high-quality
growth companies include a strong balance sheet, attractive industry trends,
strong competitive advantages and attractive relative value within the context
of a security's primary trading market.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements.
Foreign investments may be more risky than domestic investments. Investments in
foreign securities may be affected by fluctuations in currency exchange rates,
incomplete or inaccurate financial information on companies, social upheavals
and political actions ranging from tax code changes to governmental collapse.
The fund's management strategy will influence performance significantly. If the
fund invests in countries or regions that experience economic downturns,
performance could suffer. Similarly, if certain investments or industries don't
perform as expected, or if the managers' stock selection strategy doesn't
perform as expected, the fund could underperform its peers or lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of a broad-based market index for comparison). The bar chart figures do not
include the effect of sales charges, while the average annual total return
figures do. If sales charges were reflected in the bar chart, returns would have
been lower. All figures assume that all dividends and distributions were
reinvested. Keep in mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[HARTFORD INTERNATIONAL OPPORTUNITY FUND BAR GRAPH]
<TABLE>
<CAPTION>
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
---------------------------------------------
<S> <C>
'97' 0.84
'98' 12.53
</TABLE>
BEST QUARTER: up 15.70%, fourth quarter 1998
WORST QUARTER: down 16.14%, third quarter 1998
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A 6.34% 6.25%
Class B 6.82% 6.91%
Class C(1) 9.75% 7.60%
EAFE GDP Index 26.71% 15.37%(2)
</TABLE>
INDEX: Morgan Stanley Europe, Australia, Far East GDP ("EAFE GDP") Index, an
unmanaged index of equity securities.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
(2) Return is from 7/31/96 -- 12/31/98
8 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 11
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGERS
Trond Skramstad
- Senior Vice President of
Wellington Management
- Manager of the fund since
inception (1996)
- Joined Wellington Management
in 1993
- Investment professional
since 1990
Andrew S. Offit
- Vice President of Wellington
Management
- Associate Manager of the
fund since 1997
- Joined Wellington Management
in 1997
- Investment professional
since 1987
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.85% 0.85% 0.85%
Distribution and service (12b-1) fees (1) 0.35% 1.00% 1.00%
Other expenses 0.69% 0.71% 0.98%
Total operating expenses (2) 1.89% 2.56% 2.83%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.65% for Class A,
2.35% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 733 $ 762 $ 487
Year 3 $1,116 $1,106 $ 980
Year 5 $1,523 $1,576 $1,597
Year 10 $2,655 $2,923 $3,259
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 733 $ 262 $ 387
Year 3 $1,116 $ 806 $ 980
Year 5 $1,523 $1,376 $1,597
Year 10 $2,655 $2,923 $3,259
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 9
<PAGE> 12
THE HARTFORD GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Global Leaders Fund seeks growth of
capital by investing primarily in stocks issued by U.S. companies and non-U.S.
companies.
The fund invests primarily in a diversified portfolio of common stocks covering
a broad range of countries, industries and companies. Securities in which the
fund invests are denominated in both U.S. dollars and non-U.S. currencies and
may trade in both U.S. and non-U.S. markets.
Under normal market and economic conditions, the fund invests at least 65% of
its total assets in common stocks of high-quality growth companies worldwide.
These companies must, in the opinion of Wellington Management, be leaders in
their respective industries as indicated by an established market presence and
strong global, regional or country competitive positions. Under normal market
and economic conditions, the fund will diversify its investments in securities
of issuers among at least five countries, which may include the United States.
There are no limits on the amount of the fund's assets that may be invested in
each country.
The fund uses a two-tiered investment strategy:
- Using what is sometimes referred to as a "top down" approach, Wellington
Management analyzes the global macro-economic and
investment environments. This includes an evaluation of U.S. and non-U.S.
economic and political conditions, fiscal and monetary policies,
demographic trends and investor sentiment. Through top down analysis,
Wellington Management anticipates trends and changes in the markets and
economy to identify companies which offer the most potential for capital
appreciation given current and projected global and local economic and
market conditions.
- Top down analysis is followed by what is sometimes referred to as a
"bottom up" approach, which is the use of fundamental analysis to
identify specific securities for purchase or sale. Fundamental analysis
involves the assessment of a company through such factors as its business
environment, management, balance sheet, income statements, anticipated
earnings, revenues and other related measures of value.
The fund emphasizes high-quality growth companies. The key characteristics of
high-quality growth companies include a strong balance sheet, a high return on
equity, a strong management team, and attractive relative value within the
context of the global marketplace or a security's primary trading market.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements.
Foreign investments may be more risky than domestic investments. Investments in
foreign securities may be affected by fluctuations in currency exchange rates,
incomplete or inaccurate financial information on companies, social upheavals
and political actions ranging from tax code changes to governmental collapse.
The fund's management strategy will influence performance significantly. If the
fund invests in countries or regions that experience economic downturns,
performance could suffer. Similarly, if certain investments or industries don't
perform as expected, or if the managers' stock selection strategy doesn't
perform as expected, the fund could underperform its peers or lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. Because the fund has been in operation for less than one year
no performance history has been provided.
10 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 13
THE HARTFORD GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGERS
Rand L. Alexander
- Senior Vice President of
Wellington Management
- Co-manager of the fund since
inception (1998)
- Joined Wellington Management
in 1990
- Investment professional
since 1976
Andrew S. Offit
- Vice President of Wellington
Management
- Co-manager of the fund since
inception (1998)
- Joined Wellington Management
in 1997
- Investment professional
since 1987
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.85% 0.85% 0.85%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 1.51% 1.70% 1.72%
Total operating expenses (2) 2.71% 3.55% 3.57%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.65% for Class A,
2.35% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 812 $ 864 $ 562
Year 3 $1,355 $1,407 $1,201
Year 5 $1,922 $2,070 $1,961
Year 10 $3,454 $3,870 $3,949
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 812 $ 364 $ 462
Year 3 $1,355 $1,107 $1,201
Year 5 $1,922 $1,870 $1,961
Year 10 $3,454 $3,870 $3,949
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 11
<PAGE> 14
THE HARTFORD STOCK FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Stock Fund seeks long-term growth of
capital, with income as a secondary consideration, by investing primarily in
stocks.
The fund normally invests at least 65% of the fund's total assets in the common
stocks of high-quality growth companies. Many of the companies in which the fund
invests have a history of paying dividends and are expected to continue paying
dividends in the future. The fund invests in a diversified portfolio of
primarily equity securities using a two-tiered investment strategy:
- Using what is sometimes referred to as a "top down" approach, Wellington
Management analyzes the general economic and investment environment. This
includes an evaluation of economic conditions, U.S. fiscal and monetary
policy, demographic trends, and investor sentiment. Through top down
analysis, Wellington Management anticipates trends and changes in markets
in the economy overall and identifies industries and sectors that are
expected to outperform.
- Top down analysis is followed by what is sometimes referred to as a
"bottom up" approach, which is the use of fundamental analysis to
identify specific securities for purchase or sale. Fundamental analysis
of a company involves the assessment of such factors as its business
environment, management, balance sheet, income statement, anticipated
earnings, revenues, dividends, and other related measures of value.
The key characteristics of high-quality growth companies favored by the fund
include a leadership position within an industry, a strong balance sheet, a high
return on equity, sustainable or increasing dividends, a strong management team
and a globally competitive position.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements.
The fund's management strategy will influence performance significantly.
Large-capitalization stocks as a group could fall out of favor with the market,
causing the fund to underperform funds that focus on small- or
medium-capitalization stocks. Similarly, if the managers' stock selection
strategy doesn't perform as expected, the fund could underperform its peers or
lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of a broad-based market index for comparison). The bar chart figures do not
include the effect of sales charges, while the average annual total return
figures do. If sales charges were reflected in the bar chart, returns would have
been lower. All figures assume that all dividends and distributions were
reinvested. Keep in mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[bar chart]
<TABLE>
<CAPTION>
THE HARTFORD STOCK FUND
-----------------------
<S> <C>
'97' 31.78
'98' 31.33
</TABLE>
BEST QUARTER: up 20.30%, fourth quarter 1998
WORST QUARTER: down 10.25%, third quarter 1998
AVERAGE ANNUAL TOTAL RETURNS FOR
PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A 24.11% 29.73%
Class B 25.38% 31.01%
Class C(1) 28.02% 31.27%
S&P 500 Index 28.60% 33.45%
</TABLE>
INDEX: S&P 500 Index, an unmanaged index of equity securities.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
12 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 15
THE HARTFORD STOCK FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGER
Rand L. Alexander
- Senior Vice President of
Wellington Management
- Manager of the fund since
inception (1996)
- Joined Wellington Management
in 1990
- Investment professional
since 1976
Philip H. Perelmuter
- Vice President of Wellington
Management
- Associate Manager of the
fund since 1996
- Joined Wellington Management
in 1995
- Investment professional
since 1983
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.80% 0.80% 0.80%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.34% 0.36% 0.44%
Total operating expenses(2) 1.49% 2.16% 2.24%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.45% for Class A,
2.15% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 721 $ 427
Year 3 $ 998 $ 983 $ 801
Year 5 $1,324 $1,370 $1,300
Year 10 $2,241 $2,513 $2,671
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 221 $ 327
Year 3 $ 998 $ 683 $ 801
Year 5 $1,324 $1,170 $1,300
Year 10 $2,241 $2,513 $2,671
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 13
<PAGE> 16
THE HARTFORD GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Growth and Income Fund seeks growth of
capital and current income by investing primarily in stocks with earnings growth
potential and steady or rising dividends.
The fund invests primarily in a diversified portfolio of common stocks that
typically have steady or rising dividends and whose prospects for capital
appreciation are considered favorable by Wellington Management.
Wellington Management uses fundamental analysis to evaluate a security for
purchase or sale by the fund. Fundamental analysis of a company involves the
assessment of such factors as its business environment, management, balance
sheet, income statement, anticipated earnings, revenues, dividends and other
related measures of value.
Wellington Management then complements its fundamental research with an
internally-developed analytical approach. This analytical approach consists of
both valuation and timeliness measures. Valuation factors focus on future
dividend growth and cash flow to determine the relative attractiveness of
different stocks in different industries. Timeliness focuses on stocks with
favorable earnings and stock price momentum to assess the appropriate time for
purchase.
The fund's portfolio is broadly diversified by industry and company.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements.
The fund's management strategy will influence performance significantly. If the
fund's stock selection strategy doesn't perform as expected, the fund could
underperform its peers or lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. Because the fund has been in operation for less than one year
no performance history has been provided.
14 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 17
THE HARTFORD GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGER
James A. Rullo
- Senior Vice President of
Wellington Management
- Manager of the fund since
inception (1998)
- Joined Wellington Management
in 1994
- Investment professional
since 1987
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.80% 0.80% 0.80%
Distribution and service (12b-1) fees (1) 0.35% 1.00% 1.00%
Other expenses 0.48% 0.52% 0.58%
Total operating expenses (2) 1.63% 2.32% 2.38%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.45% for Class A,
2.15% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 708 $ 738 $ 442
Year 3 $1,040 $1,032 $ 843
Year 5 $1,394 $1,453 $1,371
Year 10 $2,388 $2,679 $2,813
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 708 $ 238 $ 342
Year 3 $1,040 $ 732 $ 843
Year 5 $1,394 $1,253 $1,371
Year 10 $2,388 $2,679 $2,813
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 15
<PAGE> 18
THE HARTFORD DIVIDEND AND GROWTH FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Dividend and Growth Fund seeks a high
level of current income consistent with growth of capital by investing primarily
in stocks.
The fund invests primarily in a diversified portfolio of common stocks that
typically have above average income yields and whose prospects for capital
appreciation are considered favorable by Wellington Management. Under normal
market and economic conditions at least 65% of the fund's total assets are
invested in dividend-paying equity securities. The fund tends to focus on
securities of larger, well-established companies.
Wellington Management uses fundamental analysis to evaluate a security for
purchase or sale by the fund. Fundamental analysis of a company involves the
assessment of such factors as its business environment, management, balance
sheet, income statement, anticipated earnings, revenues and dividends.
As a key component of its fundamental analysis, Wellington Management evaluates
a company's ability to sustain and potentially increase its dividend payments.
The fund's portfolio is broadly diversified by industry and company.
- --------------------------------------------------------------------------------
MAIN RISKS. As with most stock funds, the value of your investment may go down
in response to stock market movements.
The fund's management strategy will influence performance significantly. If the
fund's stock selection strategy doesn't perform as expected, the fund could
underperform its peers or lose money.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of a broad-based market index for comparison). The bar chart figures do not
include the effect of sales charges, while the average annual total return
figures do. If sales charges were reflected in the bar chart, returns would have
been lower. All figures assume that all dividends and distributions were
reinvested. Keep in mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[bar chart]
<TABLE>
<CAPTION>
THE HARTFORD DIVIDEND AND GROWTH FUND
-------------------------------------
<S> <C>
'97' 30.99
'98' 14.47
</TABLE>
BEST QUARTER: up 15.85%, second quarter 1997
WORST QUARTER: down 8.02%, third quarter 1998
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A 8.17% 22.24%
Class B 8.62% 23.31%
Class C(1) 11.58% 23.74%
S&P 500 Index 28.60% 33.45%
</TABLE>
INDEX: S&P 500 Index, an unmanaged index of equity securities.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
16 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 19
THE HARTFORD DIVIDEND AND GROWTH FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGER
Laurie A. Gabriel
- Senior Vice President of
Wellington Management
- Manager of the fund since
inception (1996)
- Joined Wellington Management
in 1976
- Investment professional
since 1976
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.75% 0.75% 0.75%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.33% 0.35% 0.45%
Total operating expenses(2) 1.43% 2.10% 2.20%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.40% for Class A,
2.10% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 715 $ 423
Year 3 $ 980 $ 964 $ 788
Year 5 $1,293 $1,339 $1,279
Year 10 $2,178 $2,450 $2,629
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 215 $ 323
Year 3 $ 980 $ 664 $ 788
Year 5 $1,293 $1,139 $1,279
Year 10 $2,178 $2,450 $2,629
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 17
<PAGE> 20
THE HARTFORD ADVISERS FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Advisers Fund seeks maximum long-term
total return by investing in stocks, bonds and other debt securities and money
market instruments.
The fund favors stocks issued by high-quality growth companies. The key
characteristics of high-quality growth companies include a leadership position
within an industry, a strong balance sheet, a high return on equity, sustainable
or increasing dividends, a strong management team and a globally competitive
position.
The debt securities in which the fund primarily invests include securities
issued or guaranteed by the U.S. Government and its agencies or
instrumentalities and securities rated investment grade (rated at least BBB by
Standard & Poor's Corporation or Baa by Moody's Investors Service, Inc., or if
unrated, securities deemed by Wellington Management to be of comparable quality.
The fund is not restricted to any specific maturity term.
Asset allocation decisions are based on Wellington Management's judgment of the
projected investment environment for financial assets, relative fundamental
values, the attractiveness of each asset category, and expected future returns
of each asset category. Wellington Management does not attempt to engage in
short-term market timing among asset categories. As a result, shifts in asset
allocation are expected to be gradual and continuous and the fund will normally
have some portion of its assets invested in each asset category. There is no
limit on the amount of fund assets that may be allocated to each asset category
and the allocation is in Wellington Management's discretion.
- --------------------------------------------------------------------------------
MAIN RISKS. This fund has stock market risk, interest rate risk, manager
allocation risk, credit risk and prepayment risk. You could lose money as a
result of your investment.
Stock market risk means the stocks held by the fund may decline in value due to
the activities and financial prospects of individual companies or to general
market and economic conditions.
Interest rate risk refers to the possibility that your investment may go down in
value when interest rates rise.
Manager allocation risk refers to the possibility that the portfolio managers
could incorrectly allocate assets so that the fund underperforms its peers.
Credit risk refers to the possibility that the issuing company may not be able
to pay interest and principal when due.
Prepayment risk refers to the possibility that any mortgage securities held by
the fund may be adversely affected by changes in prepayment rates on the
underlying mortgages. If prepayments increase as a result of lower interest
rates the fund may have to invest a portion of its assets at lower rates.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of broad-based market indices for comparison). The bar chart figures do not
include the effect of sales charges, while the average annual total return
figures do. If sales charges were reflected in the bar chart, returns would have
been lower. All figures assume that all dividends and distributions were
reinvested. Keep in mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[bar chart]
<TABLE>
<CAPTION>
HARTFORD ADVISERS FUND
----------------------
<S> <C>
'97' 23.30
'98' 21.09
</TABLE>
BEST QUARTER: up 12.39%, second quarter 1997
WORST QUARTER: down 3.94%, third quarter 1998
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A 14.43% 20.40%
Class B 15.27% 21.48%
Class C(1) 17.95% 21.85%
S&P 500 Index 28.60% 33.45%
LGCB Index 9.47% 10.00%
</TABLE>
INDICES: S&P 500 Index and the Lehman Government Corporate Bond Index,
unmanaged indices of stocks and bonds, respectively.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
18 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 21
THE HARTFORD ADVISERS FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
Wellington Management
PORTFOLIO MANAGERS
Paul D. Kaplan
- Senior Vice President of
Wellington Management
- Co-manager of the fund since
inception (1996)
- Joined Wellington Management
in 1982
- Investment professional
since 1974
Rand L. Alexander
- Senior Vice President of
Wellington Management
- Co-manager of the fund since
inception (1996)
- Joined Wellington Management
in 1990
- Investment professional
since 1976
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 5.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 5.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.75% 0.75% 0.75%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.33% 0.36% 0.43%
Total operating expenses(2) 1.43% 2.11% 2.18%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.40% for Class A,
2.10% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 716 $ 421
Year 3 $ 980 $ 967 $ 782
Year 5 $1,293 $1,345 $1,269
Year 10 $2,178 $2,461 $2,609
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 216 $ 321
Year 3 $ 980 $ 667 $ 782
Year 5 $1,293 $1,145 $1,269
Year 10 $2,178 $2,461 $2,609
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 19
<PAGE> 22
THE HARTFORD HIGH YIELD FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford High Yield Fund seeks high current
income by investing in non-investment grade debt securities. Growth of capital
is a secondary objective.
The fund normally invests at least 65%, and may invest up to 100%, of its
portfolio in non-investment grade debt securities (securities rated "Ba" or
lower by Moody's Investors Service, Inc. ("Moody's") or "BB" or lower by
Standard and Poor's Corporation ("S&P"), or securities which, if unrated, are
determined by HIMCO to be of comparable quality). Below investment grade
securities are commonly referred to as "high yield-high risk securities" or
"junk bonds". The fund will invest no more than 10% of total assets in
securities rated below B3 by Moody's or B- by S&P, or if unrated, determined to
be of comparable quality by HIMCO. The fund may invest in bonds of any maturity
although the fund tends to have an average maturity within the intermediate-term
range.
The fund may invest up to 15% of its total assets in preferred stocks,
convertible securities, and securities carrying warrants to purchase equity
securities. The fund will not invest in common stocks directly, but may retain,
for reasonable periods of time, common stocks acquired upon conversion of debt
securities or upon exercise of warrants acquired with debt securities. The fund
may invest up to 30% of its total assets in securities of non-U.S. issuers.
To achieve its goal of high current income, the fund uses what is sometimes
referred to as a top-down analysis to determine which industries may benefit
from current and future changes in the economy. The fund then selects individual
securities within selected industries that appear from a yield perspective to be
attractive. The fund assesses such factors as the company's business
environment, balance sheet, income statement, anticipated earnings and
management team.
The fund seeks its secondary goal of capital growth, when consistent with its
primary objective of high current income, by investing in securities that the
portfolio manager expects to appreciate in value as a result of declines in
long-term interest rates or favorable developments affecting the business or
prospects of the issuer which may improve the issuer's financial condition and
credit rating.
- --------------------------------------------------------------------------------
MAIN RISKS. The major factors affecting this fund's performance are interest
rates and credit risk. When interest rates rise, bond prices fall; generally the
longer a bond's maturity, the more sensitive it is to this risk.
Credit risk depends largely on the perceived financial health of bond issuers.
In general, lower-rated bonds have higher credit risks. Junk bond prices can
fall on bad news about the economy, an industry or a company. Share price, yield
and total return may fluctuate more than with less aggressive bond funds.
The fund could lose money if any bonds it owns are downgraded in credit rating
or go into default. If certain industries or investments don't perform as the
fund expects, it could underperform its peers or lose money.
Junk bonds and foreign securities may make the fund more sensitive to market or
economic shifts in the U.S. and abroad.
In a down market some of the fund's investments could become harder to value.
Any U.S. government guarantees on portfolio securities do not apply to the
market value or current yield of the portfolio's securities or to the value of
the fund's shares.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. Because the fund has been in operation for less than one year
no performance history is provided.
20 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 23
THE HARTFORD HIGH YIELD FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
HIMCO
PORTFOLIO MANAGER
Alison D. Granger
- Senior Vice President of
HIMCO
- Manager of the fund since
inception (1998)
- Joined HIMCO in 1993
- Investment professional
since 1981
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 4.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 4.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.75% 0.75% 0.75%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.48% 0.56% 0.56%
Total operating expenses(2) 1.58% 2.31% 2.31%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.40% for Class A,
2.10% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 605 $ 737 $ 434
Year 3 $ 930 $1,029 $ 822
Year 5 $1,277 $1,448 $1,335
Year 10 $2,254 $2,669 $2,742
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 605 $ 237 $ 334
Year 3 $ 930 $ 729 $ 822
Year 5 $1,277 $1,248 $1,335
Year 10 $2,254 $2,669 $2,742
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 21
<PAGE> 24
THE HARTFORD BOND INCOME STRATEGY FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Bond Income Strategy Fund seeks a high
level of current income, consistent with a competitive total return, as compared
to bond funds with similar investment objectives and policies, by investing
primarily in debt securities. Debt securities include (1) securities issued or
guaranteed as to principal or interest by the U.S. Government, its agencies or
instrumentalities; (2) non-convertible debt securities issued or guaranteed by
U.S. corporations or other issuers (including foreign governments or
corporations); (3) asset-backed and mortgage-related securities; and (4)
securities issued or guaranteed as to principal or interest by a sovereign
government or one of its agencies or political subdivisions, supranational
entities such as development banks, non-U.S. corporations, banks or bank holding
companies, or other non-U.S. issuers.
The fund normally invests at least 70% of its portfolio in investment grade debt
securities. The fund may invest up to 30% of its total assets in securities
rated in the highest category of below investment grade bonds ("Ba1", "Ba2" or
"Ba3" by Moody's Investors Service, Inc. or "BB+", "BB" or "BB-" by Standard and
Poor's Corporation), or securities which, if unrated, are determined by HIMCO to
be of comparable quality. Securities rated below investment grade are commonly
referred to as "junk bonds".
The fund invests at least 65% of its total assets in debt securities with a
maturity of at least one year. Although the fund does not have a maximum
maturity term restriction, the fund tends to have an average maturity within the
intermediate-term range. The fund may invest up to 15% of its total assets in
preferred stocks, convertible securities, and securities accompanied by warrants
to purchase equity securities. The fund will not invest in common stocks
directly, but may retain, for reasonable periods of time, common stocks acquired
upon conversion of debt securities or upon exercise of warrants acquired with
debt securities. The fund may invest up to 30% of its total assets in debt
securities of non-U.S. companies.
The fund uses what is sometimes referred to as a top-down analysis to determine
which industries may benefit from current and future changes in the economy. The
fund then selects individual securities that appear comparatively undervalued
within selected industries. The portfolio manager assesses such factors as a
company's business environment, balance sheet, income statement, anticipated
earnings and management team.
- --------------------------------------------------------------------------------
MAIN RISKS. The major factors affecting this fund's performance are interest
rates and credit risk. When interest rates rise, bond prices fall; generally the
longer the fund's maturity, the more sensitive it is to this risk.
The fund could lose money if any bonds it owns are downgraded in credit rating
or go into default. In general, lower-rated bonds have higher credit risks. If
certain sectors or investments don't perform as the fund expects, it could
underperform its peers or lose money.
Junk bonds and foreign securities may make the fund more sensitive to market or
economic shifts in the U.S. and abroad.
In a down market some of the fund's investments could become harder to value.
Any U.S. government guarantees on portfolio securities do not apply to the
market value or current yield of the portfolio's securities or to the value of
the fund's shares.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of a broad-based market index for comparison). The bar chart figures do not
include the effect of sales charges, while the average annual total return
figures do. If sales charges were reflected in the bar chart, returns would have
been lower. All figures assume that all dividends and distributions were
reinvested. Keep in mind that past performance does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[bar chart]
<TABLE>
<CAPTION>
HARTFORD BOND INCOME STRATEGY FUND
----------------------------------
<S> <C>
'97' 10.80
'98' 7.48
</TABLE>
BEST QUARTER:
up 4.07%, second quarter 1997
WORST QUARTER:
down 0.42%, first quarter 1997
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A 2.64% 7.84%
Class B 1.70% 7.98%
Class C(1) 4.67% 8.65%
Lehman Government
Corporate Bond Index 9.47% 10.00%
</TABLE>
INDEX: Lehman Government Corporate Bond Index, an unmanaged index of
fixed-income securities.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
22 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 25
THE HARTFORD BOND INCOME STRATEGY FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
HIMCO
PORTFOLIO MANAGER
Alison D. Granger
- Senior Vice President of
HIMCO
- Manager of the fund since
inception (1996)
- Joined HIMCO in 1993
- Investment professional
since 1981
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) 4.50% 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price 4.50% None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.65% 0.65% 0.65%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.32% 0.36% 0.48%
Total operating expenses(2) 1.32% 2.01% 2.13%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.25% for Class A,
1.95% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 579 $ 706 $ 416
Year 3 $ 852 $ 936 $ 767
Year 5 $1,145 $1,292 $1,243
Year 10 $1,976 $2,355 $2,557
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 579 $ 206 $ 316
Year 3 $ 852 $ 636 $ 767
Year 5 $1,145 $1,092 $1,243
Year 10 $1,976 $2,355 $2,557
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 23
<PAGE> 26
THE HARTFORD MONEY MARKET FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL AND STYLE. The Hartford Money Market Fund seeks maximum current
income consistent with liquidity and preservation of capital. The fund seeks to
maintain a stable share price of $1.00.
The fund focuses on specific short-term money market instruments such as debt
securities issued by corporations and financial institutions which are rated in
the first two investment tiers by at least one nationally recognized statistical
rating organization, or if unrated, determined to be of comparable quality by
HIMCO. Money market instruments include (1) banker's acceptances; (2)
obligations of governments (whether U.S. or non-U.S.) and their agencies and
instrumentalities; (3) short-term corporate obligations, including commercial
paper, notes, and bonds; (4) other short-term debt obligations; (5) obligations
of U.S. banks, non-U.S. branches of U.S. banks (Eurodollars), U.S. branches and
agencies of non-U.S. banks (Yankee dollars), and non-U.S. branches of non-U.S.
banks; (6) asset-backed securities; and (7) repurchase agreements.
The fund purchases securities which it believes offer attractive returns
relative to the risks undertaken. In addition, the portfolio manager adjusts the
average maturity of the portfolio in anticipation of interest rate changes.
- --------------------------------------------------------------------------------
MAIN RISKS. An investment in the fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
the fund seeks to preserve the value of your investment at $1.00 per share,
there is a risk that the fund's share price could fall below $1.00, which would
reduce the value of your account.
- --------------------------------------------------------------------------------
PAST PERFORMANCE. The bar chart and table below indicate the risks of investing
in the fund. The bar chart shows how the fund's total return has varied from
year to year, while the table shows the fund's performance over time (along with
that of a broad-based market index for comparison). The bar chart year-by-year
figures do not include the effect of sales charges as no front-end sales charge
is applicable to the Class A shares of this fund. All figures assume that all
dividends and distributions were reinvested. Keep in mind that past performance
does not indicate future results.
CLASS A YEAR-BY-YEAR TOTAL
RETURNS BY CALENDAR YEAR
[bar chart]
<TABLE>
<CAPTION>
HARTFORD MONEY MARKET FUND
--------------------------
<S> <C>
'97' 4.73
'98' 4.69
</TABLE>
BEST QUARTER: up 1.19%, third quarter 1997
WORST QUARTER: up 1.10%, fourth quarter 1998
AVERAGE ANNUAL TOTAL RETURNS
FOR PERIODS ENDING 12/31/98
<TABLE>
<CAPTION>
LIFE OF FUND
1 YEAR (SINCE 7/22/96)
<S> <C> <C>
Class A 4.69% 4.69%
Class B -1.03% 1.09%
Class C(1) 1.90% 3.22%
60-Day Treasury Bill
Index 4.94% 5.13%
</TABLE>
INDEX: 60-Day Treasury Bill Index, an unmanaged index of short-term treasury
bills.
Current 7-day yield as of December 31, 1998: 4.26%
Effective 7-day yield (which indicates the effect of daily compounding) as of
December 31, 1998: 4.35%
Please call 1-888-843-7824 for the most recent current and effective yield
information.
(1) Class C shares commenced operations on July 31, 1998. Class C share
performance prior to July 31, 1998 reflects Class B share performance less
Class C share expenses and sales charges.
24 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 27
THE HARTFORD MONEY MARKET FUND
- --------------------------------------------------------------------------------
SUB-ADVISER
HIMCO
PORTFOLIO MANAGER
William H. Davison, Jr.
- Senior Vice President of
HIMCO
- Manager of the fund since
inception (1996)
- Joined HIMCO in 1990
- Investment professional
since 1981
YOUR EXPENSES. This table describes the fees and expenses
that you may pay if you buy and hold shares of the fund.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) None 5.00% 2.00%
Maximum load imposed on purchases as a
percentage of offering price None None 1.00%
Maximum deferred sales charge (load) None 5.00% 1.00%
Exchange fees None None None
ANNUAL OPERATING EXPENSES
(expenses that are deducted from the fund's
assets)
Management fees 0.50% 0.50% 0.50%
Distribution and service (12b-1) fees(1) 0.35% 1.00% 1.00%
Other expenses 0.40% 0.36% 0.52%
Total operating expenses(2) 1.25% 1.86% 2.02%
</TABLE>
(1) Although the Rule 12b-1 fee for Class A shares is
0.35% of average net assets, the fund's distributor
has voluntarily agreed to reduce the fee to 0.30%.
This waiver may be discontinued at any time.
(2) HIFSCO has voluntarily agreed to limit the total
operating expenses of the Class A, Class B and Class C
shares of the fund, exclusive of taxes, interest,
brokerage commissions, certain distribution fees and
extraordinary expenses as follows: 1.00% for Class A,
1.70% for Classes B and C. This policy may be
discontinued at any time.
EXAMPLE. This example is intended to help you compare the
cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those
periods. The example also assumes that your investment has
a 5% return each year, that the fund's operating expenses
remain the same and that you reinvest all dividends and
distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 128 $ 691 $ 405
Year 3 $ 399 $ 890 $ 733
Year 5 $ 690 $1,214 $1,187
Year 10 $1,518 $2,195 $2,442
</TABLE>
You would pay the following expenses if you did not redeem
your shares:
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 128 $ 191 $ 305
Year 3 $ 399 $ 590 $ 733
Year 5 $ 690 $1,014 $1,187
Year 10 $1,518 $2,195 $2,442
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 25
<PAGE> 28
PRIOR PERFORMANCE OF SIMILAR FUNDS
- --------------------------------------------------------------------------------
Because the mutual funds that are the subject of this prospectus (the "Retail
Funds") began operations in July, 1996, or later, they have limited operating
and performance histories. However, the Capital Appreciation Fund, International
Opportunities Fund, Stock Fund, Dividend and Growth Fund and Advisers Fund are
modeled after existing funds (the "HLS Funds") that are managed by the same
portfolio managers at HIMCO or Wellington Management and have investment
objectives, policies and strategies substantially similar to those of the
corresponding funds. Depending on the fund involved, similarity of investment
characteristics may involve factors such as industry diversification, country
diversification, portfolio beta, portfolio quality, average maturity of
fixed-income assets, equity/non-equity mixes, and individual holdings. The HLS
Funds are used as investment vehicles for the assets of variable annuity and
variable life insurance contracts issued by The Hartford affiliates.
Below you will find information about the performance of the HLS Funds. Because
the expenses of the HLS Funds are generally lower than the Retail Funds the
performance of the HLS Funds would have been lower had the Retail Funds expenses
been applied.
The table below sets forth each fund, its corresponding HLS Fund, and their
respective inception date and asset sizes as of December 31, 1998. Any fund's
future performance may be greater or less than the performance of the
corresponding HLS Fund due to, among other things, differences in expenses,
asset sizes and cash flows between a fund and the corresponding HLS Fund.
<TABLE>
<CAPTION>
FUND CORRESPONDING HLS FUND
- ---- ----------------------
<S> <C>
Capital Appreciation (July Hartford Capital Appreciation HLS Fund, Inc. (April 2, 1984)
22, 1996) $698,638,678 $5,813,421,612
International Opportunities Hartford International Opportunities HLS Fund, Inc. (July 2,
(July 22, 1996) $56,020,588 1990) $1,197,356,582
Stock (July 22, 1996) Hartford Stock HLS Fund, Inc. (August 31, 1977)
$497,388,744 $7,193,213,170
Dividend and Growth (July Hartford Dividend and Growth HLS Fund, Inc. (March 8, 1994)
22, 1996) $317,618,659 $3,039,893,797
Advisers (July 22, 1996) Hartford Advisers HLS Fund, Inc. (March 31, 1983)
$667,192,259 $11,840,125,134
</TABLE>
26 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 29
The following table shows the average annualized total returns for the HLS Funds
for the one, three, five and ten year (or life of the HLS Fund, if shorter)
periods ended December 31, 1998. These figures are based on the actual gross
investment performance of the HLS Funds. From the gross investment performance
figures, the maximum Total Fund Operating Expenses for each Retail Fund are
deducted to arrive at the net return. Please remember that past performance is
not indicative of future returns.
<TABLE>
<CAPTION>
10 YEARS OR
HLS FUND 1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION
-------- ------ ------- ------- ---------------
<S> <C> <C> <C> <C>
HARTFORD CAPITAL
APPRECIATION HLS FUND, INC. (INCEPTION 4/2/84)
Class A expenses plus maximum load 8.24% 16.29% 15.65% 17.10%
Class A expenses with no load(1) 14.54% 18.51% 16.96% 17.76%
Class B expenses with redemption 8.74% 16.95% 15.92% 16.94%
Class B expenses without redemption 13.74% 17.68% 16.14% 16.94%
Class C expenses with maximum load and redemption 11.60% 17.28% 15.91% 16.82%
Class C expenses without load or redemption 13.74% 17.68% 16.14% 16.94%
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS FUND, INC. (INCEPTION 7/2/90)
Class A expenses plus maximum load 5.99% 5.68% 5.42% 5.87%
Class A expenses with no load(1) 12.16% 7.69% 6.55% 6.57%
Class B expenses with redemption 6.37% 6.06% 5.48% 5.83%
Class B expenses without redemption 11.37% 6.94% 5.81% 5.83%
Class C expenses with maximum load and redemption 9.26% 6.58% 5.59% 5.70%
Class C expenses without load or redemption 11.37% 6.94% 5.81% 5.83%
HARTFORD STOCK HLS FUND, INC. (INCEPTION 8/31/77)
Class A expenses plus maximum load 24.87% 26.00% 20.88% 16.74%
Class A expenses with no load(1) 32.14% 28.39% 22.26% 17.40%
Class B expenses with redemption 26.22% 26.88% 21.22% 16.58%
Class B expenses without redemption 31.22% 27.50% 21.41% 16.58%
Class C expenses with maximum load and redemption 28.91% 27.07% 21.16% 16.46%
Class C expenses without load or redemption 31.22% 27.50% 21.41% 16.58%
HARTFORD DIVIDEND AND
GROWTH HLS FUND, INC. (INCEPTION 3/8/94)
Class A expenses plus maximum load 9.19% 20.41% N/A 19.94%
Class A expenses with no load(1) 15.55% 22.70% N/A 21.36%
Class B expenses with redemption 9.44% 21.17% N/A 20.20%
Class B expenses without redemption 14.74% 21.84% N/A 20.51%
Class C expenses with maximum load and redemption 12.59% 21.44% N/A 20.26%
Class C expenses without load or redemption 14.74% 21.84% N/A 20.51%
HARTFORD ADVISERS HLS FUND, INC. (INCEPTION 3/31/83)
Class A expenses plus maximum load 16.89% 18.66% 15.49% 13.67%
Class A expenses with no load(1) 23.69% 20.92% 16.80% 14.31%
Class B expenses with redemption 17.83% 19.38% 15.77% 13.51%
Class B expenses without redemption 22.83% 20.08% 15.99% 13.51%
Class C expenses with maximum load and redemption 20.60% 19.68% 15.75% 13.40%
Class C expenses without load or redemption 22.83% 20.08% 15.99% 13.51%
</TABLE>
- ---------------
(1) Certain persons may purchase Class A Shares that are not subject to the
Class A Initial Sales Charge and certain other persons may purchase Class A
Shares subject to less than the maximum Initial Sales Charge (see "Sales
Charge Reductions and Waivers" in this Prospectus).
THE HARTFORD MUTUAL FUNDS, INC. 27
<PAGE> 30
ADDITIONAL INVESTMENT MATTERS
- --------------------------------------------------------------------------------
USE OF OPTIONS AND FUTURES
Each fund (other than the Money Market fund) may purchase and sell options and
enter into futures contracts, in each case with respect to stocks, bonds, groups
of securities (such as financial indices) or foreign currencies. These
techniques permit a fund to gain exposure to a particular security or group of
securities, and thereby earn returns similar to those which would be earned by
direct investments in those securities. These techniques are also used to manage
risk by hedging a fund's portfolio investments. Use of these techniques may
result in losses to a fund or increase volatility.
USE OF MONEY MARKET INVESTMENTS
FOR TEMPORARY DEFENSIVE PURPOSES
From time to time each fund (other than the Money Market fund) may invest some
or all of its assets in high quality money market securities for temporary
defensive purposes in response to adverse market, economic or political
conditions. To the extent a fund is in a defensive position, the fund may lose
the benefit of upswings and may not achieve its investment objective.
ABOUT EACH FUND'S INVESTMENT GOAL
Each fund's investment goal may be changed without approval of the shareholders
of the fund. A fund may not be able to achieve its goal.
TAX CONSEQUENCES OF PORTFOLIO
TRADING PRACTICES
At times each fund may engage in short-term trading, which could produce higher
brokerage expenses for a fund and higher taxable distributions to the fund's
shareholders. The funds are not managed to achieve a particular tax result for
shareholders. Shareholders should consult their own tax adviser for individual
tax advice.
YEAR 2000
The services provided to the funds by HIFSCO, HIMCO, Wellington Management and
other service providers depend on the smooth functioning of their computer
systems. Many computer software systems in use today cannot distinguish the year
2000 from the year 1900 because of the way dates are encoded and calculated.
That failure could have a negative impact on the handling of securities trades,
pricing and account services. HIFSCO, HIMCO, Wellington Management and other
service providers have been actively working on necessary changes to their
computer systems to deal with the year 2000 issue and expect that their systems
will be adapted in time for that event. In addition, to the extent that a
company in a fund's portfolio suffers from a Year 2000 problem, a fund's
performance could be adversely affected.
28 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 31
MANAGEMENT OF THE FUNDS
- --------------------------------------------------------------------------------
THE INVESTMENT MANAGER
Hartford Investment Financial Services Company ("HIFSCO") is the investment
manager to each fund. HIFSCO is a majority-owned indirect subsidiary of The
Hartford Financial Services Group, Inc. ("The Hartford"), a Connecticut
financial services company with over $130 billion in assets. As of December 31,
1998 HIFSCO had over $2.5 billion in assets under management. HIFSCO is
responsible for the general business management of each fund and supervises the
activities of the investment sub-advisers described below. HIFSCO is principally
located at 200 Hopmeadow Street, Simsbury, Connecticut 06070.
THE INVESTMENT SUB-ADVISERS
Wellington Management Company, LLP ("Wellington Management") is the investment
sub-adviser to the Small Company Fund, Capital Appreciation Fund, MidCap Fund,
International Opportunities Fund, Global Leaders Fund, Stock Fund, Growth and
Income Fund, Dividend and Growth Fund and Advisers Fund. Wellington Management,
a Massachusetts limited liability partnership, is a professional investment
counseling firm that provides services to investment companies, employee benefit
plans, endowments, foundations and other institutions and individuals.
Wellington Management and its predecessor organizations have provided investment
advisory services since 1928. As of December 31, 1998 Wellington Management had
investment management authority over approximately $211 billion in assets.
Wellington Management is principally located at 75 State Street, Boston,
Massachusetts 02109.
The Hartford Investment Management Company ("HIMCO") is the investment
sub-adviser to the High Yield Fund, Bond Income Strategy Fund and Money Market
Fund. HIMCO is a professional money management firm that provides services to
investment companies, employee benefit plans and insurance companies. HIMCO is a
wholly-owned subsidiary of The Hartford. As of December 31, 1998 HIMCO and its
wholly-owned subsidiary had investment management authority over approximately
$61.2 billion in assets. HIMCO is principally located at 55 Farmington Avenue,
Hartford, Connecticut 06105.
MANAGEMENT FEES
For the year ended December 31, 1998, the investment advisory fees paid to
HIFSCO for each fund with at least one full year of operations, expressed as a
percentage of net assets, were as follows:
<TABLE>
<CAPTION>
FUND NAME ANNUAL RATE
- --------- -----------
<S> <C>
The Hartford Small Company Fund 0.85%
The Hartford Capital Appreciation
Fund 0.80%
The Hartford MidCap Fund 0.85%
The Hartford International
Opportunities Fund 0.85%
The Hartford Stock Fund 0.80%
The Hartford Dividend and Growth
Fund 0.75%
The Hartford Advisers Fund 0.75%
The Hartford Bond Income Strategy
Fund 0.65%
The Hartford Money Market Fund 0.50%
</TABLE>
The fee schedule below indicates annualized management fees based on average
daily net assets for the three funds that have been in operation for less than
one year.
HARTFORD GLOBAL LEADERS FUND
<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- --------------- -----------
<S> <C>
First $500,000,000 0.85%
Next $500,000,000 0.75%
Amount Over $1 billion 0.70%
</TABLE>
HARTFORD GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- --------------- -----------
<S> <C>
First $500,000,000 0.80%
Next $500,000,000 0.70%
Amount Over $1 billion 0.65%
</TABLE>
HARTFORD HIGH YIELD FUND
<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- --------------- -----------
<S> <C>
First $500,000,000 0.75%
Next $500,000,000 0.65%
Amount Over $1 billion 0.60%
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 29
<PAGE> 32
ABOUT YOUR ACCOUNT
- --------------------------------------------------------------------------------
CHOOSING A SHARE CLASS
Each share class has its own cost structure, allowing you to choose the one that
best meets your needs. Your financial representative can help you decide.
CLASS A
- - Front-end sales charges, as described at right.
- - Distribution and service (12b-1) fees of 0.35% (currently 0.30% due to waiver
by the distributor).
CLASS B
- - No front-end sales charge; all your money goes to work for you right away.
- - Distribution and service (12b-1) fees of 1.00%.
- - A deferred sales charge, as described on the following page.
- - Automatic conversion to Class A shares after eight years, thus reducing future
annual expenses.
CLASS C
- - 1% front-end sales charge.
- - Distribution and service (12b-1) fees of 1.00%
- - A 1.00% contingent deferred sales charge on shares sold within one year of
purchase.
- - No automatic conversion to Class A shares, so annual expenses continue at the
Class C level throughout the life of your investment.
For actual past expenses of each share class, see the fund-by-fund information
earlier in this prospectus.
Each class has adopted Rule 12b-1 plans which allow the class to pay
distribution fees for the sale and distribution of its shares. Because these
fees are paid out of a fund's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges.
HOW SALES CHARGES ARE CALCULATED
CLASS A sales charges and commissions paid to dealers for the Small Company
Fund, Capital Appreciation Fund, MidCap Fund, International Opportunities Fund,
Global Leaders Fund, Stock Fund, Growth and Income Fund, Dividend and Growth
Fund and Advisers Fund are listed below. The term offering price includes the
front end sales load.
<TABLE>
<CAPTION>
DEALER
AS A % OF AS A % COMMISSION AS
OFFERING OF NET PERCENTAGE OF
YOUR INVESTMENT PRICE INVESTMENT OFFERING PRICE
<S> <C> <C> <C>
Less than $50,000 5.50% 5.82% 4.75%
$ 50,000 -- $99,999 4.50% 4.71% 4.00%
$100,000 -- $249,999 3.50% 3.63% 3.00%
$250,000 -- $499,999 2.50% 2.56% 2.00%
$500,000 -- $999,999 2.00% 2.04% 1.75%
$1 million or more(1) 0% 0% 0%
</TABLE>
CLASS A sales charges and commissions paid to dealers for the Bond Income
Strategy Fund and High Yield Fund are as follows:
<TABLE>
<CAPTION>
DEALER
AS A % OF AS A % COMMISSION AS
OFFERING OF NET PERCENTAGE OF
YOUR INVESTMENT PRICE INVESTMENT OFFERING PRICE
<S> <C> <C> <C>
Less than $50,000 4.50% 4.71% 3.75%
$ 50,000 -- $99,999 4.00% 4.17% 3.50%
$100,000 -- $249,999 3.50% 3.63% 3.00%
$250,000 -- $499,999 2.50% 2.56% 2.00%
$500,000 -- $999,999 2.00% 2.04% 1.75%
$1 million or more(1) 0% 0% 0%
</TABLE>
(1) Investments of $1 million or more in Class A shares may be made with no
front-end sales charge. However, there is a contingent deferred sales charge
(CDSC) of 1% on any shares sold within 18 months of purchase. For purposes
of this CDSC, all purchases made during a calendar month are counted as
having been made on the first day of that month. The CDSC is based on the
lesser of the original purchase cost or the current market value of the
shares being sold, and is not charged on shares you acquired by reinvesting
your dividends. To keep your CDSC as low as possible, each time you place a
request to sell shares we will first sell any shares in your account that
are not subject to a CDSC.
The distributor may pay up to the entire amount of the sales commission to
particular broker-dealers. The distributor may pay dealers of record commissions
on purchases over $1 million an amount up to the sum of 1.0% of the first $2.5
million, plus 0.50% of the next $2.5 million, plus 0.25% of share purchases over
$5 million. In addition, the distributor may provide compensation to dealers of
record for shares purchased without a sales charge.
CLASS B shares are offered at their net asset value per share, without any
initial sales charge. However, you may be charged a contingent deferred sales
charge (CDSC) on shares you sell within a certain time after you bought them, as
described in the tables below. There is no CDSC on shares acquired through
reinvestment of dividends. The CDSC is based on the original purchase cost or
the current market value of
30 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 33
the shares being sold, whichever is less. The CDSCs are as follows:
<TABLE>
<CAPTION>
YEARS AFTER
PURCHASE CDSC
<S> <C>
1st year 5.00%
2nd year 4.00%
3rd year 3.00%
4th year 3.00%
5th year 2.00%
6th year 1.00%
After 6 years None
</TABLE>
Because in most cases it is more advantageous for an investor to purchase Class
A shares for amounts in excess of $500,000, orders for amounts of $500,000 or
greater will be considered purchases of Class A shares.
CLASS C sales charges for all funds are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FRONT END SALES CHARGE CDSC
<CAPTION>
AS A % OF AS A % OF YEARS
OFFERING NET AFTER
PRICE(1) INVESTMENT PURCHASE CDSC
<S> <C> <C> <C>
1.01% 1.00%
1.00% 1st year
</TABLE>
(1) The term offering price includes the front end sales load.
Because in most cases it is more advantageous for an investor to purchase Class
A shares for amounts in excess of $1,000,000, orders for amounts of $1,000,000
or greater will be considered purchases of Class A shares.
For purposes of Class B and Class C CDSCs, all purchases made during a calendar
month are counted as having been made on the first day of that month. CDSC
calculations are based on the number of shares involved, not on the value of
your account. To keep your CDSC as low as possible, each time you place a
request to sell shares we will first sell any shares in your account that carry
no CDSC. If there are not enough of these to meet your request, we will sell
those shares that have the lowest CDSC.
The distributor pays commissions to dealers of up to 4% of the purchase price of
Class B shares purchased through dealers and pays commissions to dealers of up
to 2% of the purchase price of Class C shares purchased through dealers.
SALES CHARGE REDUCTIONS AND WAIVERS
REDUCING YOUR CLASS A SALES CHARGES There are several ways you can combine
multiple purchases of Class A shares of the funds to take advantage of the
breakpoints in the sales charge schedule. The first three ways can be combined
in any manner:
- - ACCUMULATION PRIVILEGE -- lets you add the value of any shares of the funds
you or members of your family already own to the amount of your next Class A
investment for purposes of calculating the sales charge. In addition, if you
are a natural person who owns a Hartford Director (or version thereof)
variable annuity or single premium variable life contract, the current account
value of your contract or policy will be included. You must notify your broker
that you are eligible for this privilege each time you make a purchase.
- - LETTER OF INTENTION -- lets you purchase Class A shares of a fund over a
13-month period and receive the same sales charge as if all shares had been
purchased at once.
- - COMBINATION PRIVILEGE -- lets you combine Class A shares of multiple funds for
purposes of calculating the sales charge.
CDSC WAIVERS As long as the transfer agent is notified at the time you sell,
the CDSC for each share class will generally be waived in the following cases:
- - to make payments through certain systematic withdrawal plans,
- - to make certain distributions from a retirement plan,
- - because of shareholder death or disability,
- - because of the death or disability of the grantor of a living trust.
In addition, the CDSC is waived for redemptions made under reorganization,
liquidation, merger or acquisition transactions involving other investment
companies.
REINSTATEMENT PRIVILEGE If you sell shares of a fund, you may reinvest some or
all of the proceeds in the same share class of any fund within 180 days without
a sales charge, as long as the transfer agent is notified before you invest. If
you paid a CDSC when you sold your shares, you will be credited with the amount
of the CDSC. All accounts involved must have the same registration.
WAIVERS FOR CERTAIN INVESTORS Class A shares may be offered without front-end
sales charges or CDSCs to various individuals and institutions, including:
- - selling brokers and their employees and sales representatives,
- - financial representatives utilizing fund shares in fee-based investment
products under signed agreement with the funds,
- - present or former officers, directors and employees (and their families) of
the funds, The Hartford, Wellington Management, the transfer agent, and their
affiliates,
- - participants in certain retirement plans with at least 100 eligible employees
or if the total amount invested is $500,000 or more (18-month CDSC applies),
- - individuals purchasing shares with the proceeds from shares redeemed within
the last 60 days on which an initial or contingent deferred sales charge was
paid,
THE HARTFORD MUTUAL FUNDS, INC. 31
<PAGE> 34
- - one or more members of a group (including spouses and dependent children) of
at least 100 persons engaged, or previously engaged in a common business,
profession, civic or charitable endeavor or other activity.
OPENING AN ACCOUNT
1 Read this prospectus carefully.
2 Determine how much you want to invest. The minimum initial investment for each
fund is as follows:
- non-retirement accounts: $500
- retirement accounts: $250
- Automatic Investment Plans $25 to open; you must invest at least $25 a
month
Minimum investment amounts may be waived for employees of The Hartford,
Wellington Management and their affiliates.
3 Complete the appropriate parts of the account application including any
privileges desired. By applying for privileges now, you can avoid the delay
and inconvenience of having to file an additional application if you want to
add privileges later. If you have questions, please contact your financial
representative or call the transfer agent at the number shown below.
4 Make your initial investment selection. You and your financial representative
can initiate any purchase, exchange or sale of shares.
<TABLE>
<S> <C>
ADDRESS: PHONE NUMBER:
THE HARTFORD MUTUAL FUNDS, INC. 1-888-843-7824
P.O. BOX 8416
BOSTON, MA 02266-8416 OR CONTACT YOUR FINANCIAL REPRESENTATIVE FOR INSTRUCTIONS
AND ASSISTANCE.
</TABLE>
32 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 35
BUYING SHARES
<TABLE>
<C> <C> <S> <C> <C>
OPENING AN ACCOUNT ADDING TO AN ACCOUNT
BY CHECK
- Make out a check for the investment amount, - Make out a check for the investment amount,
[CHECK ICON] payable to "The Hartford Mutual Funds, Inc." payable to "The Hartford Mutual Funds, Inc."
- Deliver the check and your completed - Fill out the detachable investment slip from
application to your financial representative, an account statement. If no slip is available,
or mail to the address listed below. include a note specifying the fund name, your
share class, your account number and the
name(s) in which the account is registered.
- Deliver the check and your investment slip or
note to your financial representative, or mail
to the address listed below.
BY EXCHANGE
- Call your financial representative or the - Call your financial representative or the
[EXCHANGE transfer agent at the number below to request transfer agent at the number below to request
ICON] an exchange. The minimum exchange amount is an exchange. The minimum exchange amount is
$500 per fund. $500 per fund.
BY WIRE
- Deliver your completed application to your - Instruct your bank to wire the amount of your
[WIRE ICON] financial representative, or mail it to the investment to:
address below. State Street Bank and Trust Company
Account # 9905-205-2
- Obtain your account number by calling your Routing # 011000028
financial representative or the phone number
below. Specify the fund name, your share class, your
account number and the name(s) in which the
- Instruct your bank to wire the amount of your account is registered. Your bank may charge a
investment to: fee to wire funds.
State Street Bank and Trust Company
Account # 9905-205-2
Routing # 011000028
Specify the fund name, your choice of share
class, the new account number and the name(s)
in which the account is registered. Your bank
may charge a fee to wire funds.
BY PHONE
- See "By Wire" and "By Exchange" - Verify that your bank or credit union is a
[PHONE ICON] member of the Automated Clearing House (ACH)
system.
- Complete the "Telephone Exchanges and
Telephone Redemption" and "Bank Account or
Credit Union Information" sections on your
account application.
- Call the transfer agent at the number below to
verify that these features are in place on
your account.
- Tell the transfer agent representative the
fund name, your share class, your account
number, the name(s) in which the account is
registered and the amount of your investment.
To open or add to an account using the Automatic Investment Plan,
see "Additional Investor Services".
</TABLE>
<TABLE>
<S> <C>
ADDRESS: PHONE NUMBER:
THE HARTFORD MUTUAL FUNDS, INC. 1-888-843-7824
P.O. BOX 8416
BOSTON, MA 02266-8416 OR CONTACT YOUR FINANCIAL REPRESENTATIVE FOR INSTRUCTIONS
AND ASSISTANCE.
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 33
<PAGE> 36
SELLING SHARES
<TABLE>
<C> <C> <S>
BY LETTER
- Write a letter of instruction or complete a power of
[LETTER ICON] attorney indicating the fund name, your share class, your
account number, the name(s) in which the account is
registered and the dollar value or number of shares you wish
to sell.
- Include all signatures and any additional documents that may
be required (see next page)
- Mail the materials to the address below.
- A check will be mailed to the name(s) and address in which
the account is registered, or otherwise according to your
letter of instruction.
BY PHONE
- Restricted to sales of up to $50,000 in any 7-day period.
[PHONE ICON]
- For automated service 24 hours a day using your touch-tone
phone, call the number shown below.
- To place your order with a representative, call the transfer
agent at the number below between 8 A.M. and 6 P.M. Eastern
Time on most business days.
BY WIRE OR ELECTRONIC FUNDS TRANSFER (EFT)
- Fill out the "Telephone Exchanges and Telephone Redemption"
[WIRE ICON] and "Bank Account or Credit Union Information" sections of
your new account application.
- Call the transfer agent at the number below to verify that
the telephone redemption privilege is in place on an
account, or to request the forms to add it to an existing
account.
- Amounts of $1,000 or more will be wired on the next business
day. Your bank may charge a fee for this service.
- Amounts of less than $1,000 may be sent by EFT or by check.
Funds from EFT transactions are generally available by the
second business day. Your bank may charge a fee for this
service.
- Phone requests are limited to amounts up to $50,000 in a
7-day period.
BY EXCHANGE
- Obtain a current prospectus for the fund into which you are
[ARROW ICON] exchanging by calling your financial representative or the
transfer agent at the number below.
- Call your financial representative or the transfer agent to
request an exchange.
BY CHECK -- APPLIES TO MONEY MARKET FUND (CLASS A SHARES ONLY)
- Fill out the checkwriting section of the application.
[CHECK ICON]
- Request checkwriting on your account application.
- Verify that the shares to be sold were purchased more than
15 days earlier or were purchased by wire.
- Write a check for any amount over $100.
To sell shares through a systematic withdrawal plan, see "Additional Investor
Services".
</TABLE>
<TABLE>
<S> <C>
ADDRESS: PHONE NUMBER:
THE HARTFORD MUTUAL FUNDS, INC. 1-888-843-7824
P.O. BOX 8416
BOSTON, MA 02266-8416 OR CONTACT YOUR FINANCIAL REPRESENTATIVE FOR INSTRUCTIONS
AND ASSISTANCE.
</TABLE>
34 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 37
SELLING SHARES IN WRITING
<TABLE>
<C> <C> <S>
BY LETTER
In certain circumstances, you will need to make your request to sell shares in
writing. You may need to include additional items with your request, as shown
in the table below. You may also need to include a signature guarantee, which
protects you against fraudulent orders. You will need a signature guarantee
if:
- your address of record has changed within the past 30 days
[LETTER ICON]
- you are selling more than $50,000 worth of shares
- you are requesting payment other than by a check mailed to
the address of record and payable to the registered owner(s)
Please note that a notary public CANNOT provide a signature guarantee. Please
check with a representative of your bank or other financial institution about
obtaining a signature guarantee.
REQUIREMENTS FOR WRITTEN REQUESTS BY SELLER
OWNERS OF INDIVIDUAL, JOINT, SOLE PROPRIETORSHIP, UGMA/UTMA (CUSTODIAL
ACCOUNTS FOR MINORS) OR GENERAL PARTNER ACCOUNTS.
- Letter of instruction.
- On the letter, the signatures and titles of all persons
authorized to sign for the account, exactly as the account
is registered.
- Signature guarantee if applicable (see above).
OWNERS OF CORPORATE OR ASSOCIATION ACCOUNTS.
- Letter of instruction.
- Corporate resolution, certified within the past twelve
months.
- On the letter and the resolution, the signature of the
person(s) authorized to sign for the account.
- Signature guarantee if applicable (see above).
OWNERS OR TRUSTEES OF TRUST ACCOUNTS.
- Letter of instruction.
- On the letter, the signature(s) of the trustee(s).
- Provide a copy of the trust document certified within the
past twelve months.
- Signature guarantee if applicable (see above).
JOINT TENANCY SHAREHOLDERS WHOSE CO-TENANTS ARE DECEASED.
- Letter of instruction signed by surviving tenant.
- Copy of death certificate.
- Signature guarantee if applicable (see above).
EXECUTORS OF SHAREHOLDER ESTATES.
- Letter of instruction signed by executor.
- Copy of order appointing executor, certified within the past
twelve months.
- Signature guarantee if applicable (see above).
ADMINISTRATORS, CONSERVATORS, GUARDIANS AND OTHER SELLERS OR ACCOUNT TYPES
NOT LISTED ABOVE.
- Call 1-888-843-7824 for instructions.
</TABLE>
THE HARTFORD MUTUAL FUNDS, INC. 35
<PAGE> 38
TRANSACTION POLICIES
- --------------------------------------------------------------------------------
VALUATION OF SHARES
The net asset value per share (NAV) for each fund and class is determined each
business day at the close of regular trading on the New York Stock Exchange
("NYSE") (typically 4 P.M. Eastern Time). Except for the Money Market Fund, the
funds use market prices in valuing portfolio securities, but may use fair-value
estimates, as determined in good faith by the Board of Directors, if reliable
market prices are unavailable. The Money Market Fund's assets are valued at
amortized cost.
Trading on many foreign securities markets is completed at various times before
or after the close of the NYSE or on days the NYSE is not open for business.
Consequently, the calculation of a fund's NAV may take place at a time that is
different than when prices are determined for certain foreign securities. As a
result, events affecting the values of foreign portfolio securities that occur
after the close of the NYSE will not be reflected in a fund's calculation of
NAV.
BUY AND SELL PRICES
When you buy shares, you pay the NAV plus any applicable sales charges, as
described earlier. When you sell shares, you receive the NAV minus any
applicable deferred sales charges.
EXECUTION OF REQUESTS
Each fund is open on those days when the New York Stock Exchange is open,
typically Monday through Friday. Buy and sell requests are executed at the next
NAV to be calculated after your request is received by the transfer agent or
authorized broker-dealers and third-party administrators.
At times of peak activity, it may be difficult to place requests by phone.
During these times, consider sending your request in writing.
In unusual circumstances, any fund may temporarily suspend the processing of
sell requests, or may postpone payment of proceeds for up to three business days
or longer, as allowed by federal securities laws.
TELEPHONE TRANSACTIONS
For your protection, telephone requests may be recorded in order to verify their
accuracy. Also for your protection, telephone transactions are not permitted on
accounts whose names or addresses have changed within the past 30 days. Proceeds
from telephone transactions can only be mailed to the address of record.
EXCHANGES
You may exchange shares of one fund for shares of the same class of any other,
generally without paying any additional sales charges (except when exchanging
from Class A shares of the Money Market Fund). The registration for both
accounts involved must be identical. Class B shares will continue to age from
the original date of purchase.
Each fund reserves the right to refuse or delay exchanges by any person or group
if, in HIMCO's or Wellington Management's judgment, a fund would be unable to
invest the money effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected. Your exchanges
may be restricted or refused if a fund receives or anticipates simultaneous
orders affecting significant portions of the fund's assets. In particular, a
pattern of exchanges that coincides with a "market timing" strategy may be
disruptive to the fund. Although a fund will attempt to give you prior notice
whenever it is reasonably able to do so, it may impose these restrictions at any
time. Each fund reserves the right to terminate or modify the exchange privilege
in the future.
CERTIFICATED SHARES
Shares are electronically recorded and therefore share certificates are not
issued.
SMALL ACCOUNTS
(NON-RETIREMENT ONLY)
If you draw down a non-retirement account so that its total value is less than
$1,000, you may be asked to purchase more shares within 30 days. If you do not
take action, your fund may close out your account and mail you the proceeds. You
will not be charged a CDSC if your account is closed for this reason, and your
account will not be closed if its drop in value is due to fund performance or
the effects of sales charges.
SALES IN ADVANCE OF
PURCHASE PAYMENTS
When you place a request to sell shares for which the purchase money has not yet
been collected, the request will be executed in a timely fashion, but the fund
will not release the proceeds to you until your purchase payment clears. This
may take up to 15 business days after the purchase.
SPECIAL REDEMPTIONS
Although it would not normally do so, each fund has the right to pay the
redemption price of shares of the fund in whole or in part in portfolio
securities as prescribed by the Directors. When the shareholder sells portfolio
securities received in this fashion, he would incur a brokerage charge. Any such
securities would be
36 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 39
valued for the purposes of making such payment at the same value as used in
determining net asset value. The funds have elected to be governed by Rule 18f-1
under the 1940 Act, pursuant to which each fund is obligated to redeem shares
solely in cash up to the lesser of $250,000 or 1% of the net asset value of the
applicable fund during any 90 day period for any one account.
PAYMENT REQUIREMENTS
All of your purchases must be made in U.S. dollars and checks must be drawn on
U.S. banks and made payable to The Hartford Mutual Funds, Inc., or in the case
of a retirement account, to the custodian or trustee. You may not purchase
shares with a third party check.
DIVIDENDS AND ACCOUNT POLICIES
ACCOUNT STATEMENTS In general, you will receive account statements as follows:
- - after every transaction (except a dividend reinvestment) that affects your
account balances
- - after any changes of name or address of the registered owner(s)
- - in all other circumstances, every quarter
DIVIDENDS Each fund intends to distribute substantially all of its net income
and capital gains to shareholders at least once a year. Normally, dividends from
net investment income of the Small Company Fund, Capital Appreciation Fund,
MidCap Fund, International Opportunities Fund, Global Leaders Fund and Stock
Fund will be declared and paid annually; dividends from the net investment
income of the Growth and Income Fund, Dividend and Growth Fund and Advisers Fund
will be declared and paid quarterly; dividends from the net investment income of
the Bond Income Strategy Fund and High Yield Fund will be declared and paid
monthly and dividends from net investment income of the Money Market Fund will
be declared daily and paid monthly. Dividends from the Money Market Fund are not
paid on shares until the day following the date on which the shares are issued.
Unless shareholders specify otherwise, all dividends and distributions will be
automatically reinvested in additional full or fractional shares of each fund.
TAXABILITY OF DIVIDENDS Dividends you receive from a fund, whether reinvested
or taken as cash, are generally considered taxable. Dividends from a fund's
long-term capital gains are taxable as capital gains; dividends from short-term
capital gains and income are generally taxable as ordinary income. Some
dividends paid in January may be taxable as if they had been paid the previous
December. Tax rates may vary depending on how long a fund investment is held.
See your application for distribution options.
The Form 1099 that is mailed to you every January details your dividends and
their federal tax category, although you should verify your tax liability with
your tax professional.
TAXABILITY OF TRANSACTIONS Any time you sell or exchange shares, it is
considered a taxable event for you. Depending on the purchase price and the sale
price of the shares you sell or exchange, you may have a gain or a loss on the
transaction. You are responsible for any tax liabilities generated by your
transactions.
ADDITIONAL INVESTOR SERVICES
ELECTRONIC TRANSFERS THROUGH AUTOMATED CLEARING HOUSE (ACH) NETWORK allow you to
initiate a purchase or redemption for as little as $100 or as much as $50,000
between your bank account and fund account using the ACH network. Sales charges
and initial purchase minimums apply.
AUTOMATIC INVESTMENT PLAN (AIP) AIP lets you set up regular investments from
your paycheck or bank account to The Hartford Mutual Fund(s) of your choice. You
determine the frequency and amount of your investments, and you can terminate
your program at any time. To establish:
- - Complete the appropriate parts of your account application.
- - If you are using AIP to open an account, make out a check ($25 minimum) for
your first investment amount payable to "The Hartford Mutual Funds, Inc."
Deliver your check and application to your financial representative or the
transfer agent.
SYSTEMATIC WITHDRAWAL PLAN This plan may be used for routine bill payments or
periodic withdrawals from your account. To establish:
- - Make sure you have at least $5,000 worth of shares in your account and that
the amount per transaction is $50 or more per fund.
- - Make sure you are not planning to invest more money in this account (buying
shares during a period when you are also selling shares of the same fund is
not advantageous to you, because of sales charges).
- - SPECIFY THE PAYEE(S). The payee may be yourself or any other party, and there
is no limit to the number of payees you may have, as long as they are all on
the same payment schedule.
- - Determine the schedule: monthly, quarterly, semi-annually, annually or in
certain selected months.
- - FILL OUT THE RELEVANT PART OF THE ACCOUNT APPLICATION. To add a systematic
withdrawal plan to an existing account, contact your financial representative
or the transfer agent.
THE HARTFORD MUTUAL FUNDS, INC. 37
<PAGE> 40
DOLLAR COST AVERAGING PROGRAMS (DCA) let you set up monthly or quarterly
exchanges from one fund to the same class of shares of another fund. To
establish:
- - Fill out the relevant part of the account application.
- - Be sure that the amount is for $100 or more.
- - Be sure that the accounts involved have identical registrations.
AUTOMATIC DIVIDEND DIVERSIFICATION (ADD) lets you automatically reinvest
dividends and capital gains paid by one fund into the same class of another
fund. To establish:
- - Fill out the relevant portion of the account application.
- - Be sure that the accounts involved have identical registrations.
RETIREMENT PLANS The Hartford Mutual Funds, Inc. offer a range of retirement
plans, including traditional and Roth IRAs, SIMPLE plans, SEPs and 401(k) plans.
Using these plans, you can invest in any fund offered by The Hartford Mutual
Funds, Inc. with a low minimum investment of $250. To find out more, call
1-888-843-7824.
38 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 41
ADDITIONAL SHARE CLASSES
- --------------------------------------------------------------------------------
Each fund also offers Class Y shares by a separate prospectus. Class Y shares
are available only to the following types of institutional investors: (i)
tax-qualified plans which have (a) at least $10 million in plan assets, or (b)
750 or more employees eligible to participate at the time of purchase; (ii)
banks and insurance companies purchasing shares for their own account; (iii)
investment companies; and (iv) tax-qualified retirement plans of The Hartford,
Wellington Management or broker-dealer wholesalers and their affiliates.
Class Y shares are available to eligible institutional investors at net asset
value without the imposition of an initial or deferred sales charge and are not
subject to ongoing distribution fees imposed under a plan adopted pursuant to
Rule 12b-1 under the 1940 Act. The minimum initial investment in Class Y shares
is $1,000,000, but this requirement may be waived at the discretion of the
fund's officers. The differences in class expenses may affect performance.
The Systematic Withdrawal Plan, Dollar Cost Averaging Plan, Automatic Dividend
Diversification Plan and Automatic Investment Plan are not available for Class Y
shares.
If you are considering a purchase of Class Y shares of a fund, please call the
Transfer Agent at 1-888-843-7824 to obtain information about eligibility.
THE HARTFORD MUTUAL FUNDS, INC. 39
<PAGE> 42
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD SMALL COMPANY FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 7/1/96- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97 12/31/96(1) 12/31/98(6)
--------- -------- ----------- -------- -------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $12.16 $10.68 $10.00 $12.04 $10.65 $10.00 $10.00
Income from investment operations:
Net investment income (loss) (0.06) (0.02) (0.02) (0.12) (0.03) (0.02) (0.02)
Net realized and unrealized gain
(loss) on investments 1.33 2.05 1.42 1.29 1.97 1.39 0.50
------- ------- ------- ------- ------- ------- -------
Total from investment operations 1.27 2.03 1.40 1.17 1.94 1.37 0.48
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from capital gains (0.12) (0.55) (0.72) (0.12) (0.55) (0.72) 0.00
Return of capital 0.000 0.000 0.000 0.000 0.000 0.000 0.00
------- ------- ------- ------- ------- ------- -------
Total distributions (0.12) (0.55) (0.72) (0.12) (0.55) (0.72) 0.00
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $13.31 $12.16 $10.68 $13.09 $12.04 $10.65 $10.48
======= ======= ======= ======= ======= ======= =======
TOTAL RETURN(2) 10.46% 19.28% 14.11%(3) 9.73% 18.49% 13.81%(3) 4.80%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $37,623 $19,391 $4,673 $18,345 $9,694 $241 $2,765
Ratio of expenses to average net
assets before waivers and
reimbursements 1.52% 1.77% 4.24%(4) 2.22% 2.53% 20.03%(4) 2.46%(4)
Ratio of expenses to average net
assets after waivers and
reimbursements 1.45% 1.45% 1.45%(4) 2.15% 2.15% 2.15%(4) 2.15%(4)
Ratio of net investment income (loss)
to average net assets (0.79%) (0.61%) (0.60%)(4) (1.49%) (1.30%) (1.30%)(4) (1.49%)(4)
Portfolio turnover rate(5) 266.82% 255.37% 69.92% -- -- -- --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(6) Class C shares were first offered on July 31, 1998.
40 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 43
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD CAPITAL APPRECIATION FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 7/1/96- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97 12/31/96(1) 12/31/98(6)
--------- -------- ----------- -------- -------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $19.90 $13.36 $10.00 $19.71 $13.32 $10.00 $10.00
Income from investment operations:
Net investment income (loss) (0.10) (0.03) (0.03) (0.21) (0.06) (0.02) (0.03)
Net realized and unrealized gain
(loss) on investments 0.75 7.34 3.80 0.71 7.22 3.75 0.24
-------- ------- ------- -------- -------- ------- -------
Total from investment operations 0.65 7.31 3.77 0.50 7.16 3.73 0.21
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from capital gains (0.13) (0.77) (0.41) (0.13) (0.77) (0.41) 0.00
Return of capital 0.000 0.000 0.000 0.000 0.000 0.000 0.00
-------- ------- ------- -------- -------- ------- -------
Total distributions (0.13) (0.77) (0.41) (0.13) (0.77) (0.41) 0.00
-------- ------- ------- -------- -------- ------- -------
Net asset value, end of period $20.42 $19.90 $13.36 $20.08 $19.71 $13.32 $10.21
======== ======= ======= ======== ======== ======= =======
TOTAL RETURN(2) 3.26% 55.11% 37.75%(3) 2.52% 54.15% 37.35%(3) 2.10%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $364,951 $233,601 $9,028 $290,756 $174,392 $889 $15,231
Ratio of expenses to average net
assets before waivers and
reimbursements 1.44% 1.64% 4.10%(4) 2.15% 2.38% 9.05%(4) 2.29%(4)
Ratio of expenses to average net
assets after waivers and
reimbursements 1.44% 1.45% 1.45%(4) 2.15% 2.15% 2.15%(4) 2.15%(4)
Ratio of net investment income (loss)
to average net assets (0.70%) (0.80%) (0.70%)(4) (1.39%) (1.46%) (1.53%)(4) 1.34%(4)
Portfolio turnover rate(5) 123.42% 119.62% 149.99%(3) -- -- -- --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(6) Class C shares were first offered on July 31, 1998.
THE HARTFORD MUTUAL FUNDS, INC. 41
<PAGE> 44
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD MIDCAP FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS C -
CLASS A - CLASS B - PERIOD ENDED:
PERIOD ENDED: PERIOD ENDED: 7/31/98-
12/31/98(1) 12/31/98(1) 12/31/98(6)
------------- ------------- ---------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $10.00 $10.00 $10.00
Income from investment operations:
Net investment income (loss) (0.05) (0.10) (0.03)
Net realized and unrealized gain (loss) on investments 2.35 2.32 0.90
------- ------- -------
Total from investment operations 2.30 2.22 0.87
Less distributions:
Dividends from net investment income 0.00 0.00 0.00
Distributions from capital gains 0.00 0.00 0.00
Return of capital 0.00 0.00 0.00
------- ------- -------
Total distributions 0.00 0.00 0.00
------- ------- -------
Net asset value, end of period $12.30 $12.22 $10.87
======= ======= =======
TOTAL RETURN(2) 23.12% 22.32% 8.70%(4)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $24,294 $8,403 $1,077
Ratio of expenses to average net assets before waivers and
reimbursements 1.57% 2.31% 2.57%(5)
Ratio of expenses to average net assets after waivers and
reimbursements 1.45% 2.15% 2.15%(5)
Ratio of net investment income (loss) to average net assets (0.78%) (1.48%) (1.45%)(5)
Portfolio turnover rate(3) 139.02% -- --
</TABLE>
(1) The Fund was declared effective by the Securities and Exchange Commission on
December 31, 1997.
(2) Does not include sales charges.
(3) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(4) Not annualized.
(5) Annualized.
(6) Class C shares were first offered on July 31, 1998.
42 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 45
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 7/1/96- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97 12/31/96(1) 12/31/98(6)
-------- -------- -------------- -------- -------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $10.58 $10.72 $10.00 $10.49 $10.69 $10.00 $10.00
Income from investment operations:
Net investment income (loss) 0.07 0.09 (0.02) 0.01 0.07 (0.01) (0.01)
Net realized and unrealized gain
(loss) on investments 1.26 (0.01) 0.79 1.23 (0.06) 0.80 (0.39)
------- ------- ------- ------- ------- ------- -------
Total from investment operations 1.33 0.08 0.81 1.24 0.01 0.79 (0.40)
Less distributions:
Dividends from net investment
income (0.02) (0.05) (0.06) 0.00 (0.04) (0.07) (0.03)
Distributions from capital gains 0.000 (0.17) (0.03) 0.00 (0.17) (0.03) 0.00
Return of capital 0.000 0.000 0.000 0.00 0.000 0.000 0.00
------- ------- ------- ------- ------- ------- -------
Total distributions (0.02) (0.22) (0.09) 0.00 (0.21) (0.10) (0.03)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $11.89 $10.58 $10.72 $11.73 $10.49 $10.69 $9.57
======= ======= ======= ======= ======= ======= =======
TOTAL RETURN(2) 12.53% 0.84% 8.14%(3) 11.82% 0.12% 7.86%(3) (4.05%)(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $32,014 $15,701 $4,294 $11,767 $7,188 $163 $1,379
Ratio of expenses to average net
assets before waivers and
reimbursements 1.84% 2.25% 5.35%(4) 2.56% 3.03% 32.61%(4) 2.83%(4)
Ratio of expenses to average net
assets after waivers and
reimbursements 1.65% 1.65% 1.65%(4) 2.35% 2.35% 2.35%(4) 2.35%(4)
Ratio of net investment income (loss)
to average net assets 0.69% 0.88% 0.51%(4) 0.01% (0.05%) (0.86%)(4) (0.71%)(4)
Portfolio turnover rate(5) 148.58% 59.16% 21.51%(3) -- -- -- --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(6) Class C shares were first offered on July 31, 1998.
THE HARTFORD MUTUAL FUNDS, INC. 43
<PAGE> 46
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD GLOBAL LEADERS FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
9/30/98- 9/30/98- 9/30/98-
12/31/98(1) 12/31/98(1) 12/31/98(1)
--------------- ------------- -------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $10.00 $10.00 $10.00
Income from investment operations:
Net investment income (loss) (0.01) (0.02) (0.02)
Net realized and unrealized gain (loss) on investments 3.03 3.02 3.02
------- ------ ------
Total from investment operations 3.02 3.00 3.00
Less distributions:
Dividends from net investment income 0.00 0.00 0.00
Distributions from capital gains (0.35) (0.35) (0.35)
Return of capital 0.00 0.00 0.00
------- ------ ------
Total distributions (0.35) (0.35) (0.35)
------- ------ ------
Net asset value, end of period $12.67 $12.65 $12.65
======= ====== ======
TOTAL RETURN(2) 30.36%(4) 30.16%(4) 30.16%(4)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,771 $486 $517
Ratio of expenses to average net assets before waivers and
reimbursements 2.66%(5) 3.55%(5) 3.57%(5)
Ratio of expenses to average net assets after waivers and
reimbursements 1.65%(5) 2.35%(5) 2.35%(5)
Ratio of net investment income (loss) to average net assets (0.19%)(5) (0.92%)(5) (0.90%)(5)
Portfolio turnover rate(3) 49.04% -- --
</TABLE>
(1) The Fund was declared effective by the Securities and Exchange Commission on
September 30, 1998.
(2) Does not include sales charges.
(3) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(4) Not annualized.
(5) Annualized.
44 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 47
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD STOCK FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 7/1/96- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97 12/31/96(1) 12/31/98(6)
-------- -------- ----------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $15.16 $11.53 $10.00 $15.01 $11.50 $10.00 $10.00
Income from investment operations:
Net investment income (loss) (0.01) 0.00 0.02 (0.05) (0.02) 0.00 (0.01)
Net realized and unrealized gain (loss)
on investments 4.75 3.66 1.53 4.60 3.56 1.52 0.48
-------- ------- ------- -------- ------- ------- -------
Total from investment operations 4.74 3.66 1.55 4.55 3.54 1.52 0.47
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 0.00 (0.02) (0.01)
Distributions from capital gains (0.19) (0.03) (0.02) (0.19) (0.03) 0.00 (0.01)
Return of capital (0.01) 0.000 0.000 (0.01) 0.000 0.000 0.00
-------- ------- ------- -------- ------- ------- -------
Total distributions (0.20) (0.03) (0.02) (0.20) (0.03) (0.02) (0.02)
-------- ------- ------- -------- ------- ------- -------
Net asset value, end of period $19.70 $15.16 $11.53 $19.36 $15.01 $11.50 $10.45
======== ======= ======= ======== ======= ======= =======
TOTAL RETURN(2) 31.33% 31.78% 15.50%(3) 30.38% 30.82% 15.20%(3) 6.60%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $268,226 $65,763 $6,273 $185,205 $35,294 $1,254 $36,039
Ratio of expenses to average net assets
before waivers and reimbursements 1.44% 1.64% 3.96%(4) 2.16% 2.38% 7.76%(4) 2.24%(4)
Ratio of expenses to average net assets
after waivers and reimbursements 1.44% 1.45% 1.45%(4) 2.15% 2.15% 2.15%(4) 2.15%(4)
Ratio of net investment income (loss) to
average net assets (0.07%) 0.06% 0.71%(4) (0.77%) (0.66%) (0.12%)(4) (0.76%)(4)
Portfolio turnover rate(5) 37.03% 42.83% 11.87%(3) -- -- -- --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(6) Class C shares were first offered on July 31, 1998.
THE HARTFORD MUTUAL FUNDS, INC. 45
<PAGE> 48
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD GROWTH AND INCOME FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
4/30/98- 4/30/98- 7/31/98-
12/31/98(1) 12/31/98(1) 12/31/98(6)
------------- ------------- -------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $10.00 $10.00 $10.00
Income from investment operations:
Net investment income (loss) 0.02 (0.01) 0.01
Net realized and unrealized gain (loss) on investments 1.45 1.43 1.27
------- ------- -------
Total from investment operations 1.47 1.42 1.28
Less distributions:
Dividends from net investment income 0.00 0.00 0.00
Distributions from capital gains (0.02) (0.01) (0.03)
Return of capital 0.00 0.00 0.00
------- ------- -------
Total distributions (0.02) (0.01) (0.03)
------- ------- -------
Net asset value, end of period $11.45 $11.41 $11.25
======= ======= =======
TOTAL RETURN(2) 14.78%(4) 14.21%(4) 12.80%(4)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $11,120 $3,538 $3,726
Ratio of expenses to average net assets before waivers and
reimbursements 1.58%(5) 2.32%(5) 2.38%(5)
Ratio of expenses to average net assets after waivers and
reimbursements 1.45%(5) 2.15%(5) 2.15%(5)
Ratio of net investment income (loss) to average net assets 0.23%(5) (0.47%)(5) (0.53%)(5)
Portfolio turnover rate(3) 35.10% -- --
</TABLE>
(1) The Fund was declared effective by the Securities and Exchange Commission on
April 30, 1998.
(2) Does not include sales charges.
(3) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(4) Not annualized.
(5) Annualized.
(6) Class C shares were first offered on July 31, 1998.
46 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 49
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD DIVIDEND AND GROWTH FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 7/1/96- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97 12/31/96(1) 12/31/98(6)
-------- -------- -------------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $14.72 $11.45 $10.00 $14.61 $11.40 $10.00 $10.00
Income from investment operations:
Net investment income (loss) 0.15 0.13 0.07 0.06 0.13 0.01 0.03
Net realized and unrealized gain
(loss) on investments 1.97 3.40 1.46 1.92 3.30 1.48 0.44
-------- ------- ------- -------- ------- ------- ------
Total from investment operations 2.12 3.53 1.53 1.98 3.43 1.49 0.47
Less distributions:
Dividends from net investment income (0.15) (0.12) (0.06) (0.05) (0.08) (0.07) (0.06)
Distributions from capital gains (0.07) (0.14) (0.02) (0.07) (0.14) (0.02) (0.07)
Return of capital 0.000 (0.000) 0.000 0.000 0.000 0.000 0.00
-------- ------- ------- -------- ------- ------- ------
Total distributions (0.22) (0.26) (0.08) (0.12) (0.22) (0.09) (0.13)
-------- ------- ------- -------- ------- ------- ------
Net asset value, end of period $16.62 $14.72 $11.45 $16.47 $14.61 $11.40 $10.34
======== ======= ======= ======== ======= ======= ======
TOTAL RETURN(2) 14.47% 30.99% 15.29%(3) 13.62% 30.20% 14.82%(3) 4.82%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $182,495 $67,861 $6,083 $108,344 $33,730 $33,741 $9,682
Ratio of expenses to average net
assets before waivers and
reimbursements 1.38% 1.59% 4.12%(4) 2.10% 2.34% 12.97%(4) 2.20%(4)
Ratio of expenses to average net
assets after waivers and
reimbursements 1.38% 1.40% 1.40%(4) 2.10% 2.10% 2.10%(4) 2.10%(4)
Ratio of net investment income (loss)
to average net assets 1.08% 1.42% 1.95%(4) 0.39% 0.69% 0.82%(4) 0.23%(4)
Portfolio turnover rate(5) 46.43% 28.75% 29.80%(3) -- -- -- --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(6) Class C shares were first offered on July 31, 1998.
THE HARTFORD MUTUAL FUNDS, INC. 47
<PAGE> 50
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD ADVISERS FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 7/1/96- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97 12/31/96(1) 12/31/98(6)
--------- -------- ----------- -------- -------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $13.41 $11.08 $10.00 $13.33 $11.05 $10.00 $10.00
Income from investment operations:
Net investment income (loss) 0.23 0.16 0.09 0.15 0.16 0.02 0.10
Net realized and unrealized gain
(loss) on investments 2.58 2.41 1.07 2.54 2.31 1.11 0.41
-------- ------- ------- -------- ------- ------- -------
Total from investment operations 2.81 2.57 1.16 2.69 2.47 1.13 0.51
Less distributions:
Dividends from net investment income (0.25) (0.17) (0.08) (0.17) (0.12) (0.08) (0.14)
Distributions from capital gains (0.26) (0.07) 0.00 (0.26) (0.07) 0.00 (0.26)
Return of capital 0.000 0.000 0.000 0.000 0.000 0.000 0.00
-------- ------- ------- -------- ------- ------- -------
Total distributions (0.51) (0.24) (0.08) (0.42) (0.19) (0.08) (0.40)
-------- ------- ------- -------- ------- ------- -------
Net asset value, end of period $15.71 $13.41 $11.08 $15.59 $13.33 $11.05 $10.11
======== ======= ======= ======== ======= ======= =======
TOTAL RETURN(2) 21.09% 23.30% 11.56%(3) 20.27% 22.44% 11.28%(3) 5.25%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $316,435 $98,633 $14,347 $237,959 $39,334 $1,499 $54,907
Ratio of expenses to average net
assets before waivers and
reimbursements 1.38% 1.55% 2.94%(4) 2.11% 2.31% 6.71%(4) 2.18%(4)
Ratio of expenses to average net
assets after waivers and
reimbursements 1.38% 1.40% 1.40%(4) 2.10% 2.10% 2.10%(4) 2.10%(4)
Ratio of net investment income (loss)
to average net assets 1.67% 1.54% 2.13%(4) 0.98% 0.80% 1.24%(4) 1.06%(4)
Portfolio turnover rate(5) 40.24% 38.62% 19.75%(3) -- -- -- --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(6) The Class C shares were first offered on July 31, 1998.
48 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 51
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD HIGH YIELD FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
9/30/98- 9/30/98- 9/30/98-
12/31/98(1) 12/31/98(1) 12/31/98(1)
--------------- ----------- ---------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $10.00 $10.00 $10.00
Income from investment operations:
Net investment income (loss) 0.19 0.16 0.16
Net realized and unrealized gain (loss) on investments 0.13 0.14 0.14
------ ------ ------
Total from investment operations 0.32 0.30 0.30
Less distributions:
Dividends from net investment income (0.17) (0.16) (0.16)
Distributions from capital gains 0.00 0.00 0.00
Return of capital 0.00 0.00 0.00
------ ------ ------
Total distributions (0.17) (0.16) (0.16)
------ ------ ------
Net asset value, end of period $10.15 $10.14 $10.14
====== ====== ======
TOTAL RETURN(2) 3.33%(4) 3.09%(4) 3.08%(4)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $8,507 $2,322 $2,278
Ratio of expenses to average net assets before waivers and
reimbursements 1.53%(5) 2.31%(5) 2.31%(5)
Ratio of expenses to average net assets after waivers and
reimbursements 1.40%(5) 2.10%(5) 2.10%(5)
Ratio of net investment income (loss) to average net assets 7.06%(5) 6.50%(5) 6.49%(5)
Portfolio turnover rate(3) 10.85% -- --
</TABLE>
(1) The Fund was declared effective by the Securities and Exchange Commission on
September 30, 1998.
(2) Does not include sales charges.
(3) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(4) Not annualized.
(5) Annualized.
THE HARTFORD MUTUAL FUNDS, INC. 49
<PAGE> 52
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD BOND INCOME STRATEGY FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 7/1/96- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97 12/31/96(1) 12/31/98(6)
--------- -------- ----------- -------- -------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $10.61 $10.26 $10.00 $10.58 $10.25 $10.00 $10.00
Income from investment operations:
Net investment income (loss) 0.54 0.57 0.26 0.47 0.53 0.20 0.18
Net realized and unrealized gain
(loss) on investments 0.23 0.50 0.31 0.22 0.46 0.34 0.14
------- ------- ------- ------- ------- ------- -------
Total from investment operations 0.77 1.07 0.57 0.69 0.99 0.54 0.32
Less distributions:
Dividends from net investment income (0.54) (0.56) (0.25) (0.47) (0.50) (0.23) (0.20)
Distributions from capital gains (0.08) (0.16) (0.06) (0.08) (0.16) (0.06) (0.06)
Return of capital 0.000 0.000 0.000 0.000 0.000 0.000 0.00
------- ------- ------- ------- ------- ------- -------
Total distributions (0.62) (0.72) (0.31) (0.55) (0.66) (0.29) (0.26)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $10.76 $10.61 $10.26 $10.72 $10.58 $10.25 $10.06
======= ======= ======= ======= ======= ======= =======
TOTAL RETURN(2) 7.48% 10.80% 5.73%(3) 6.70% 9.96% 5.38%(3) 3.19%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $47,143 $28,589 $10,925 $16,772 $5,745 $124 $5,420
Ratio of expenses to average net
assets before waivers and
reimbursements 1.27% 1.44% 2.72%(4) 2.01% 2.19% 22.36%(4) 2.13%(4)
Ratio of expenses to average net
assets after waivers and
reimbursements 1.25% 1.25% 1.25%(4) 1.95% 1.95% 1.95%(4) 1.95%(4)
Ratio of net investment income (loss)
to average net assets 5.04% 5.59% 5.72%(4) 4.32% 4.85% 5.22%(4) 4.13%(4)
Portfolio turnover rate(5) 135.01% 220.45% 75.52%(3) -- -- -- --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) The portfolio turnover rate is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(6) Class C shares were first offered on July 31, 1998.
50 THE HARTFORD MUTUAL FUNDS, INC.
<PAGE> 53
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE HARTFORD MONEY MARKET FUND
These tables are intended to help you understand each fund's financial
performance since inception. The total returns in the table represent the rate
that an investor would have earned on an investment in each fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Arthur Andersen, LLP, whose report, along with each fund's financial
statements, are included in the annual report which is available upon request.
<TABLE>
<CAPTION>
CLASS A - CLASS B - CLASS C -
PERIOD ENDED: PERIOD ENDED: PERIOD ENDED:
7/1/96- 8/22/97- 7/31/98-
12/31/98 12/31/97 12/31/96(1) 12/31/98 12/31/97(1) 12/31/98(5)
-------- -------- -------------- -------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) 0.50 0.05 0.02 0.40 0.01 0.20
Net realized and unrealized gain (loss) on
investments 0.00 0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ------- ------
Total from investment operations 0.50 0.05 0.02 0.40 0.01 0.20
Less distributions:
Dividends from net investment income (0.50) (0.05) (0.02) (0.40) (0.01) (0.20)
Distributions from capital gains 0.00 (0.00) 0.00 0.00 0.00 0.00
Return of capital 0.000 0.000 0.000 0.000 0.00 0.000
------- ------- ------- ------- ------- ------
Total distributions (0.50) (0.05) (0.02) (0.40) (0.01) (0.20)
------- ------- ------- ------- ------- ------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= ======= ======
TOTAL RETURN(2) 4.69% 4.73% 2.01%(3) 3.97% 1.45%(3) 1.58%(3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $29,424 $22,578 $10,754 $11,936 $4,449 $1,203
Ratio of expenses to average net assets before
waivers and reimbursements 1.20% 1.23% 2.70%(4) 1.86% 3.63%(4) 2.02%(4)
Ratio of expenses to average net assets after
waivers and reimbursements 1.00% 1.00% 1.00%(4) 1.70% 1.70%(4) 1.70%(4)
Ratio of net investment income (loss) to
average net assets 4.57% 4.67% 4.49%(4) 3.83% 3.92%(4) 3.57%(4)
Portfolio turnover rate N/A N/A N/A N/A N/A --
</TABLE>
(1) The Funds were initially seeded on July 1, 1996 and became effective and
open for investment on July 22, 1996. The performance results reflect
activity since the Funds were opened for investment on July 22, 1996.
(2) Does not include sales charges.
(3) Not annualized.
(4) Annualized.
(5) Class C shares were first offered on July 31, 1998.
THE HARTFORD MUTUAL FUNDS, INC. 51
<PAGE> 54
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE> 55
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE> 56
FOR MORE INFORMATION
- --------------------------------------------------------------------------------
Two documents are available that offer further information on The Hartford
Mutual Funds:
ANNUAL/SEMIANNUAL REPORT
TO SHAREHOLDERS
Additional information on each fund is contained in the financial statements and
portfolio holdings of the fund's annual and semi-annual reports. In the fund's
annual report you will also find a discussion of the market conditions and
investment strategies that significantly affected performance during the last
fiscal year, and the auditor's report.
STATEMENT OF ADDITIONAL INFORMATION
(SAI)
The SAI contains more detailed information about the funds.
A current SAI and annual report have been filed with the Securities and Exchange
Commission and are incorporated by reference into (are legally a part of) this
prospectus.
To request a free copy of the current annual/ semiannual report and/or the SAI
or for shareholder inquiries, please contact the funds at:
BY MAIL:
The Hartford Mutual Funds, Inc., P.O. Box 8416, Boston, MA 02266-8416
BY PHONE:
1-888-843-7824
ON THE INTERNET:
invest.hartfordlife.com
Or you may view or obtain these documents from the SEC:
IN PERSON:
at the SEC's Public Reference Room in Washington, DC
Information on the operation of the SEC's public reference room may be obtained
by calling 1-800-SEC-0330.
BY MAIL:
Public Reference Section
Securities and Exchange Commission
Washington, DC 20549-6009
(duplicating fee required)
ON THE INTERNET:
www.sec.gov
SEC FILE NUMBER: 811-07589
<PAGE> 57
---------------------------------------
---------------------------------------
THE HARTFORD MUTUAL FUNDS, INC.
SUPPLEMENT DATED JUNE 7, 1999
TO THE PROSPECTUS DATED MAY 1, 1999
---------------------------------------
---------------------------------------
CLASS A, CLASS B AND CLASS C SHARES
SMALL COMPANY FUND
CAPITAL APPRECIATION FUND
MIDCAP FUND
INTERNATIONAL OPPORTUNITIES FUND
GLOBAL LEADERS FUND
STOCK FUND
GROWTH AND INCOME FUND
DIVIDEND AND GROWTH FUND
ADVISERS FUND
HIGH YIELD FUND
BOND INCOME STRATEGY FUND
MONEY MARKET FUND
THE HARTFORD MUTUAL FUNDS, INC.
P.O. BOX 8416
BOSTON, MA 02266-8416
<PAGE> 58
Effective June 7, 1999, the prospectus is amended as follows:
The expense example figures for each fund beginning on page 3 are deleted
and the following inserted:
THE HARTFORD SMALL COMPANY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 702 $ 728 $ 450
Year 3 $1,022 $1,001 $ 868
Year 5 $1,364 $1,401 $1,412
Year 10 $2,325 $2,576 $2,894
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 702 $ 228 $ 350
Year 3 $1,022 $ 701 $ 868
Year 5 $1,364 $1,201 $1,412
Year 10 $2,325 $2,576 $2,894
</TABLE>
THE HARTFORD CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 720 $ 432
Year 3 $ 998 $ 980 $ 816
Year 5 $1,324 $1,365 $1,325
Year 10 $2,241 $2,503 $2,722
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 220 $ 332
Year 3 $ 998 $ 680 $ 816
Year 5 $1,324 $1,165 $1,325
Year 10 $2,241 $2,503 $2,722
</TABLE>
THE HARTFORD MIDCAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 707 $ 737 $ 461
Year 3 $1,037 $1,029 $ 901
Year 5 $1,389 $1,448 $1,467
Year 10 $2,377 $2,669 $3,004
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 707 $ 237 $ 361
Year 3 $1,037 $ 729 $ 901
Year 5 $1,389 $1,248 $1,467
Year 10 $2,377 $2,669 $3,004
</TABLE>
2
<PAGE> 59
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 733 $ 762 $ 487
Year 3 $ 1,116 $1,106 $ 980
Year 5 $ 1,523 $1,576 $1,597
Year 10 $ 2,655 $2,923 $3,259
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 733 $ 262 $ 387
Year 3 $ 1,116 $ 806 $ 980
Year 5 $ 1,523 $1,376 $1,597
Year 10 $ 2,655 $2,923 $3,259
</TABLE>
THE HARTFORD GLOBAL LEADERS FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 812 $ 864 $ 562
Year 3 $1,355 $1,407 $1,201
Year 5 $1,922 $2,070 $1,961
Year 10 $3,454 $3,870 $3,949
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 812 $ 364 $ 462
Year 3 $1,355 $1,107 $1,201
Year 5 $1,922 $1,870 $1,961
Year 10 $3,454 $3,870 $3,949
</TABLE>
THE HARTFORD STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 721 $ 427
Year 3 $ 998 $ 983 $ 801
Year 5 $1,324 $1,370 $1,300
Year 10 $2,241 $2,513 $2,671
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 694 $ 221 $ 327
Year 3 $ 998 $ 683 $ 801
Year 5 $1,324 $1,170 $1,300
Year 10 $2,241 $2,513 $2,671
</TABLE>
3
<PAGE> 60
THE HARTFORD GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 708 $ 738 $ 442
Year 3 $1,040 $1,032 $ 843
Year 5 $1,394 $1,453 $1,371
Year 10 $2,388 $2,679 $2,813
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 708 $ 238 $ 342
Year 3 $1,040 $ 732 $ 843
Year 5 $1,394 $1,253 $1,371
Year 10 $2,388 $2,679 $2,813
</TABLE>
THE HARTFORD DIVIDEND AND GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 715 $ 423
Year 3 $ 980 $ 964 $ 788
Year 5 $1,293 $1,339 $1,279
Year 10 $2,178 $2,450 $2,629
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 215 $ 323
Year 3 $ 980 $ 664 $ 788
Year 5 $1,293 $1,139 $1,279
Year 10 $2,178 $2,450 $2,629
</TABLE>
THE HARTFORD ADVISERS FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 716 $ 421
Year 3 $ 980 $ 967 $ 782
Year 5 $1,293 $1,345 $1,269
Year 10 $2,178 $2,461 $2,609
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 689 $ 216 $ 321
Year 3 $ 980 $ 667 $ 782
Year 5 $1,293 $1,145 $1,269
Year 10 $2,178 $2,461 $2,609
</TABLE>
4
<PAGE> 61
THE HARTFORD HIGH YIELD FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 605 $ 737 $ 434
Year 3 $ 930 $1,029 $ 822
Year 5 $1,277 $1,448 $1,335
Year 10 $2,254 $2,669 $2,742
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 605 $ 237 $ 334
Year 3 $ 930 $ 729 $ 822
Year 5 $1,277 $1,248 $1,335
Year 10 $2,254 $2,669 $2,742
</TABLE>
THE HARTFORD BOND INCOME STRATEGY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 579 $ 706 $ 416
Year 3 $ 852 $ 936 $ 767
Year 5 $1,145 $1,292 $1,243
Year 10 $1,976 $2,355 $2,557
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 579 $ 206 $ 316
Year 3 $ 852 $ 636 $ 767
Year 5 $1,145 $1,092 $1,243
Year 10 $1,976 $2,355 $2,557
</TABLE>
THE HARTFORD MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPENSES (WITH REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 128 $ 691 $ 405
Year 3 $ 399 $ 890 $ 733
Year 5 $ 690 $1,214 $1,187
Year 10 $1,518 $2,195 $2,442
</TABLE>
<TABLE>
<CAPTION>
EXPENSES (WITHOUT REDEMPTION) CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Year 1 $ 128 $ 191 $ 305
Year 3 $ 399 $ 590 $ 733
Year 5 $ 690 $1,014 $1,187
Year 10 $1,518 $2,195 $2,442
</TABLE>
5
<PAGE> 62
The section entitled "About Your Account -- How Sales Charges Are
Calculated" is amended by:
(1) deleting the two tables referencing sales charges for Class A shares and
including the following two tables, the first of which relates to the Small
Company Fund, Capital Appreciation Fund, MidCap Fund, International
Opportunities Fund, Global Leaders Fund, Stock Fund, Growth and Income Fund,
Dividend and Growth Fund and Advisers Fund, and the second of which relates to
the Bond Income Strategy Fund and High Yield Fund:
<TABLE>
<CAPTION>
DEALER
COMMISSION AS
AS A % OF AS A % OF NET PERCENTAGE OF
YOUR INVESTMENT OFFERING PRICE INVESTMENT OFFERING PRICE
<S> <C> <C> <C>
Less than $50,000 5.50% 5.82% 4.75%
$50,000 -- $99,999 4.50% 4.71% 4.00%
$100,000 -- $249,999 3.50% 3.63% 3.00%
$250,000 -- $499,999 2.50% 2.56% 2.00%
$500,000 -- $999,999 2.00% 2.04% 1.75%
$1 million or more(1) 0% 0% 0%
</TABLE>
<TABLE>
<CAPTION>
DEALER
COMMISSION AS
AS A % OF AS A % OF NET PERCENTAGE OF
YOUR INVESTMENT OFFERING PRICE INVESTMENT OFFERING PRICE
<S> <C> <C> <C>
Less than $50,000 4.50% 4.71% 3.75%
$50,000 -- $99,999 4.00% 4.17% 3.50%
$100,000 -- $249,999 3.50% 3.63% 3.00%
$250,000 -- $499,999 2.50% 2.56% 2.00%
$500,000 -- $999,999 2.00% 2.04% 1.75%
$1 million or more(1) 0% 0% 0%
</TABLE>
(2) adding the following paragraph immediately after footnote (1): "The
distributor may pay up to the entire amount of the sales commission to
particular broker-dealers. The distributor may pay dealers of record commissions
on purchases over $1 million an amount up to the sum of 1.0% of the first $2.5
million, plus 0.50% of the next $2.5 million, plus 0.25% of share purchases over
$5 million. In addition, the distributor may provide compensation to dealers of
record for shares purchased without a sales charge.", and
(3) adding the following paragraph to the end of the section: "The
distributor pays commissions to dealers of up to 4% of the purchase price of
Class B shares purchased through dealers and pays commissions to dealers of up
to 2% of the purchase price of Class C shares purchased through dealers."
------------------------
The outside back cover page is amended as follows: the website address for
The Hartford Mutual Funds, Inc. is changed from "www.invest.hartfordlife.com" to
"invest.hartfordlife.com".
6
<PAGE> 63
THE HARTFORD MUTUAL FUNDS, INC.
Supplement dated June 7, 1999 to the
Statement of Additional Information dated May 1, 1999
Effective June 7, 1999, the Statement of Additional Information is amended
as follows:
The last paragraph on page 43 is deleted and the following paragraph is
inserted in its place:
The CDSC will be waived on redemptions of Class B and Class C shares and
of Class A shares that are subject to CDSC in the following cases:
- to make Systematic Withdrawal Plan payments that are limited
annually to no more than 12% of the value of the account at the time
the plan is initiated,
- because of shareholder death or disability,
- because of the death or disability of the grantor of a living trust,
- under reorganization, liquidation, merger or acquisition
transactions involving other investment companies,
- for retirement plans under the following circumstances:
(1) to return excess contributions,
(2) hardship withdrawals as defined in the plan,
(3) under a Qualified Domestic Relations Order as defined in the
Internal Revenue Code,
(4) to meet minimum distribution requirements with the Internal
Revenue Code,
(5) to make "substantially equal payments" as described in Section
72(t) of the Internal Revenue Code, and
(6) after separation from service.
