<PAGE> 1
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THE HARTFORD
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ANNUAL REPORT
October 31, 2000
- Manager Discussions
- Financials
<PAGE> 2
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The Hartford
Global Health Fund
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PORTFOLIO MANAGERS
JOSEPH H. SCHWARTZ, CFA
Senior Vice President & Partner
Wellington Management Company, LLP
ANN C. GALLO
Vice President
Wellington Management Company, LLP
JEAN H. HYNES, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
KIRK J. MAYER
Assistant Vice President
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
5/1/00 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
5/00 10/00
<S> <C> <C>
GLOBAL HEALTH FUND $ 9,540 $13,112
$9,450 starting value
GOLDMAN SACHS HEALTH INDEX $10,000 $12,257
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 5/1/00)
<TABLE>
<CAPTION>
Non-Sales Charge Adjusted Sales Charge Adjusted
CUMULATIVE SINCE INCEPTION(1) CUMULATIVE SINCE INCEPTION(2)
<S> <C> <C>
Global Health A 38.74% 31.11%
Global Health B 38.24% 33.24%
Global Health C 38.24% 35.86%
Goldman Sachs Health 22.57%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Global Health
Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
5/01/00 would have been valued at $13,824 on 10/31/00 ($13,133 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
5/01/00 would have been valued at $13,686 on 10/31/00 ($13,549 with a redemption
at the end of the period.)
Q. How Did The Fund Perform?
Hartford Global Health Fund returned 38.74% (for Class A shares) since its
inception (period covering May 1 - October 31, 2000). The Fund out- performed
its benchmark, the Goldman Sachs Health Index, and the Lipper Health &
Biotechnology Average.
Q. Why Did The Fund Perform This Way?
The health care sector was very strong since the Fund's inception in May with
meaningful contributions from essentially all sub-sectors. Health care as a
sector significantly outperformed the general stock market during this time
period.
Pharmaceuticals & biotechnology continued to be the largest sub-sector in the
Fund, with 58.5% of assets. We remain underweighted in this sub-sector relative
to the Goldman Sachs Health Care Index due to concerns over extended valuations
and earnings risk associated with the implementation of a Medicare benefit for
prescription drugs. Since the Fund's inception, we continued to be overweight in
medical device and health care service stocks due to strong underlying business
fundamentals, attractive equity valuations and a favorable governmental
regulatory and reimbursement environment.
Q. What Is Your Outlook For The Coming Year?
We believe all of these sub-sectors benefit from aging demographics, technology
breakthroughs, internet and information technology developments, and geographic
expansion. Given further changes in absolute and relative price performance for
stocks in the different sub-sectors, the Fund's weights will change accordingly
to exploit developing investment opportunities. There are many fundamentally
attractive companies within the global health care sector that are candidates
for future investment. The outcome of the elections in November, in our opinion,
will likely provide incremental changes in the health care sector, given the
apparent lack of any clear governmental mandate. Overall, we continue to be
optimistic about the health care sector's growth outlook.
<PAGE> 3
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The Hartford
Global Technology Fund
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PORTFOLIO MANAGERS
SCOTT E. SIMPSON
Senior Vice President and Partner
Wellington Management Company, LLP
JOHN F. AVERILL, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
BRUCE L. GLAZER
Assistant Vice President
Wellington Management Company, LLP
PAUL D. JACKSON
Assistant Vice President
Wellington Management Company, LLP
ERIC STROMQUIST
Senior Vice President & Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
5/1/00 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
5/00 10/00
<S> <C> <C>
GLOBAL TECHNOLOGY FUND $ 9,450 $8,102
$9,450 starting value
GOLDMAN SACHS TECHNOLOGY INDEX $10,000 $8,231
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 5/1/00)
<TABLE>
<CAPTION>
Non-Sales Charge Adjusted Sales Charge Adjusted
CUMULATIVE SINCE INCEPTION(1) CUMULATIVE SINCE INCEPTION(2)
<S> <C> <C>
Global Tech A (14.26)% (18.98)%
Global Tech B (14.65)% (19.65)%
Global Tech C (14.65)% (16.50)%
Goldman Sachs Tech (17.69)%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Global Technology
Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
5/01/00 would have been valued at $8,535 on 10/31/00 ($8,108 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
5/01/00 would have been valued at $8,450 on 10/31/00 ($8,365 with a redemption
at the end of the period.)
Q. How Did The Fund Perform?
Hartford Global Technology Fund returned (14.26%) (for Class A shares) since
inception (period covering May 1 - October 31, 2000). The Fund outperformed its
benchmark, the Goldman Sachs Technology Composite Index, but underperformed the
Lipper Science & Technology Average.
Q. Why Did The Fund Perform This Way?
During the first ten months of 2000, volatility was the only constant as the
technology markets wrestled with rising interest rates, mixed valuations, and
some signs of fundamental weakness. Specifically, we are seeing signs that the
ongoing economic slowdown combined with the demise of the dot.coms are taking a
toll on demand for technology products and services. In some cases, such as
semiconductors and PCs, the stocks already reflect the current investment
environment, creating opportunities. However, in many technology sectors, stocks
continue to look expensive. Despite weakening within the networking and
telecommunications sector, our positions benefited the Fund. Overall, good stock
selection helped the Fund outpace its benchmark.
Q. What Is Your Outlook For The Coming Year?
We continue to believe our current positioning is appropriate, and our long-term
favorable outlook is unwavering. We are concerned about the near-term and expect
that the recent volatility will continue as valuations for some leading
technology companies continue to look stretched. As a result, we continue to
focus our attention on infrastructure opportunities where demand remains robust
and valuations look much more attractive. The continued shift in the market,
from speculation to sound fundamental analysis, plays to the portfolio
management team's strength.
We are confident that long-term technology spending will have very favorable
consequences for the U.S. economy. We remain prepared and well positioned to
take advantage of these changes over the near-term and the long-term.
<PAGE> 4
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The Hartford
Small Company Fund
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PORTFOLIO MANAGER
[PHOTO OF STEVE ANGELI]
STEVE ANGELI,CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
7/22/96 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
7/96 10/00
<S> <C> <C>
SMALL COMPANY FUND $ 9,450 $21,723
$9,450 starting value
RUSSELL 2000 $10,000 $16,550
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Small Co A (7.70)% 21.21% 21.47% 14.54% 19.88%
Small Co B (8.26)% 20.34% 20.64% 15.34% 20.39%
Small Co C* (8.21)% 20.48% 20.70% 18.28% 20.42%
Russell 2000 (0.47)% 17.41% 12.49%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Small Company
Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
7/22/96 would have been valued at $22,324 on 10/31/00 ($21,654 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
7/22/96 would have been valued at $22,147 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
Hartford Small Company Fund returned (7.70%) (for Class A shares) for the
ten-month period ending October 31, 2000. The Fund underperformed its benchmark,
the Russell 2000 Index, which returned (0.47%), and the Lipper Small Cap Growth
Average, which returned 4.3%, for the same time period.
Q. Why Did The Fund Perform This Way?
Small cap stocks have been extremely volatile this year. Year-to-date, through
10/31/00, the NASDAQ Composite Index return is -17.2%, versus 35.3% over the
same time period last year. The difference between the high and low was very
large from January - October 2000, 1,974 points, versus 758 points over the same
time period in 1999. From January 2000 - March 2000, the market was reaching new
highs and companies were appreciating quickly. In April 2000, the technology
bubble "burst" and has struggled ever since.
From May 2000 - July 2000, we suffered an unusual amount of fundamental
shortfalls, particularly in technology and telecommunications companies.
Shortfalls within the technology and telecommunications sectors stem primarily
from slowing demand and unusually high expectations. Small, one-product
companies have a tough time masking slowing demand relative to large companies
with multiple products. We believed that the fundamental disappointments we were
seeing in small cap stocks would eventually affect large cap stocks.
Q. What Is Your Outlook For The Coming Year?
We feel much better about the quality of earnings. In the third quarter we saw
fewer shortfalls than in the second quarter, and we are beginning to see some
stabilization in earnings numbers. Meanwhile, the economic outlook bodes well
for a soft landing that can continue to support small companies. I continue to
maintain my investment strategy that focuses on stocks that meet my investment
criteria (i.e. strong fundamentals and forward thinking management teams).
<PAGE> 5
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The Hartford
Capital Appreciation Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO OF SAUL PANNELL]
SAUL J. PANNELL, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
7/22/96 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
7/96 10/00
<S> <C> <C>
CAPITAL APPRECIATION FUND $ 9,450 $24,054
$9,450 starting value
S&P 500 $10,000 $38,307
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Cap App A 10.18% 41.74% 38.69% 33.94% 36.87%
Cap App B 9.59% 40.74% 37.76% 35.74% 37.60%
Cap App C* 9.56% 40.69% 37.75% 38.28% 37.42%
S&P 500 (1.81)% 6.08% 22.76%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Capital
Appreciation Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
7/22/96 would have been valued at $39,388 on 10/31/00 ($38,206 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
7/22/96 would have been valued at $38,979 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
The Hartford Capital Appreciation Fund returned 10.18% (for Class A shares) for
the ten-month period ending October 31, 2000. The Fund's return exceeded that of
the Lipper MultiCap Core Average, which returned 2.9% for the same time period.
Q. Why Did The Fund Perform This Way?
With the negative return of (1.8%) for the S&P 500 year-to-date, this Fund's
strategy of "performance is where you find" is certainly true. The Fund's
outperformance resulted from strong stock selection though a diverse group of
companies within several macroeconomic sectors: Emulex (communications
controllers), Magellan Health Services (behavioral health management), American
Eagle Outfitters (apparel retailer), Manugustics Group (commercial software),
Anaren Microwave (communications equipment), and Cheesecake Factory
(restaurants). Throughout the ten-month period, we reduced our exposure to
information technology but took advantage of the good technology stocks that
investors had thrown out during the sentiment change that engulfed technology.
This sector continues to represent the largest absolute weight in the Fund.
Energy and consumer staples were increased during this period and we used the
overall volatility in the market to upgrade the Fund's upside price potential.
Q. What Is Your Outlook For The Coming Year?
Our overall strategy for the Fund remains dual faceted: an emphasis on smaller
companies with dynamic earnings growth prospects, and an opportunistic trading
approach to larger-cap stocks where we typically see a catalyst for
outperformance. We will continue to roam off the beaten path where we believe
the most upside potential resides. This approach, if executed well, should
provide positive absolute and relative results over a reasonable time frame. We
cannot predict the course of the overall market from here but believe that the
valuation parameters of the portfolios themselves are compelling.
<PAGE> 6
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The Hartford
MidCap Fund
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PORTFOLIO MANAGER
[PHOTO OF PHILIP PERELMUTTER]
PHILLIP H. PERELMUTER
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
12/30/97 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
12/97 10/00
<S> <C> <C>
MIDCAP FUND
$9,450 starting value $ 9,450 $16,256
S&P 400
$10,000 starting value $10,000 $22,779
</TABLE>
================================================================================
RETURNS (Inception 12/30/97)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
MidCap A 30.50% 60.01% 36.34% 51.21% 33.65%
MidCap B 29.72% 58.91% 35.4% 53.91% 34.79%
MidCap C* 29.72% 59.02% 35.43% 56.43% 34.95%
S&P 400 18.07% 31.65% 18.67%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford MidCap Fund. Past
performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
12/30/97 would have been valued at $23,636 on 10/31/00 ($22,927 with a
redemption at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
12/30/97 would have been valued at $23,414 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
Hartford MidCap Fund returned 30.50% (for Class A shares) for the ten-month
period ending October 31, 2000. The Fund outperformed its benchmark, the S&P
Midcap 400 Index, which returned 18.07%. The Fund also outperformed the Lipper
MidCap Core Average, which returned 12.4% for the same time period.
Q. Why Did The Fund Perform This Way?
Our strongest sector was health care, which contributed 37% of the total return
for the period. These companies participate in different areas within the health
care sector including hospital management, drug distribution, biotechnology, and
medical equipment. The stock market rewarded consistent growth companies with
little economic sensitivity or technology risk during the period.
Our most significant sector weight change was decreasing our technology holdings
to 25% from a high of 42% at the end of January. From a top down perspective, it
appears that several of the pillars of technology are showing slowing growth
including wireless, internet infrastructure, and personal computers. From a
bottom up perspective, several of our technology holdings exceeded our price
targets.
Q. What Is Your Outlook For The Coming Year?
Technology, telecommunications and media ("TTM") stocks remain problematic
near-term with many positive and negative cross currents. We have reduced our
overall exposure to these sectors, but we continue to seek opportunities if and
when they arise. The biggest positive on the horizon is the possibility that the
Federal Reserve may cut U.S. interest rates as evidence continues to mount that
the U.S. economy is in fact slowing. However, the political considerations and
continual upward revisions in the U.S. Consumer Price Index may deter the
Federal Reserve's easing hand until early next year. We continue to search for
investment opportunities in all areas of the market but do not currently see any
areas that appear significantly undervalued across the board. Overall, we remain
cautiously optimistic about the U.S. equity markets.
<PAGE> 7
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The Hartford
International Opportunities Fund
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PORTFOLIO MANAGER
[PHOTO OF TROND SKRAMSTAD]
TROND SKRAMSTAD
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
7/22/96 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
7/96 10/00
<S> <C> <C>
INTERNATIONAL OPPORTUNITIES $ 9,450 $13,685
$9,450 starting value
EAFE GDP $10,000 $15,958
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Int'l Opp A (15.18)% 0.38% 9.04% (5.14)% 7.61%
Int'l Opp B (15.70)% (0.32)% 8.29% (5.32)% 7.92%
Int'l Opp C* (15.70)% (0.34)% 8.27% (2.34)% 8.02%
MSCI EAFE GDP (14.11)% (2.40)% 11.54%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford International
Opportunities Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
7/22/96 would have been valued at $14,059 on 10/31/00 ($13,637 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
7/22/96 would have been valued at $13,911 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
Hartford International Opportunities Fund returned (15.18%) (for Class A shares)
for the ten-month period ending October 31, 2000. The Fund underperformed its
benchmark, the MSCI EAFE GDP Net Index, which returned (14.11%), and the Lipper
International Average, which returned (14.8%) for the same time period.
Q. Why Did The Fund Perform This Way?
The Fund benefited from being underweight in Japan and the other developed
markets in Asia but, except for China, was hurt by investments in emerging Asia,
especially India, Korea and Thailand. The Fund also benefited from good stock
selection in continental Europe, although this was outweighed by weak stock
selection in the UK and Japan. From a sector point of view, the Fund's
overweight positioning in health care and energy helped performance while
overweights in the technology and media sectors hurt performance after these
sectors peaked early in the year.
Q. What Is Your Outlook For The Coming Year?
We continue to believe that global economic growth is slowing in the wake of
coordinated interest rate increases in most major economies and the additional
drag from higher energy prices. While we believe that central banks are already
at or near the end of their interest rate increases, there maybe more negative
effects on growth to come. Recent weakness in global markets will provide an
additional braking element to global GDP growth, as a reduced "wealth effect"
and higher cost of capital ripple through to slow consumer spending and capital
expenditure, especially in the U.S. As a result, we have positioned the Fund
more defensively at the margin, and are overweight in the health care and energy
sectors. We are underweight in the more cyclical industrial & commercial and
consumer discretionary sectors and are unlikely to add to these until we see
some signs of bottoming in the global slowdown. We are, however, looking at some
other sectors, such as technology and telecom, that have fallen far from their
highs and are beginning to look attractive again on a fundamental basis.
<PAGE> 8
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The Hartford
Global Leaders Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGERS
RAND L. ALEXANDER, CFA
Senior Vice President [PHOTO OF RAND ALEXANDER]
and Partner
Wellington Management
Company, LLP
ANDREW S. OFFIT
[PHOTO OF ANDREW OFFIT] Senior Vice President
and Partner
Wellington Management
Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
9/30/98 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
9/98 10/00
<S> <C> <C>
GLOBAL LEADERS FUND $ 9,450 $13,767
$9,450 starting value
MSCI WORLD $10,000 $17,288
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 9/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Global Leaders A (4.98)% 17.64% 33.55% 11.17% 29.98
Global Leaders B (5.56)% 16.84% 32.61% 11.84% 31.55
Global Leaders C (5.51)% 16.83% 32.65% 14.66% 32.01
MSCI World (9.01)% 1.09% 16.55%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Global Leaders
Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
9/30/98 would have been valued at $18,026 on 10/31/00 ($17,485 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
9/30/98 would have been valued at $17,856 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
The Hartford Global Leaders Fund returned (4.98%) (for Class A shares) for the
ten-month period ending October 31, 2000. The Fund's return exceeded that of the
Lipper Global Average, which returned (6.9%) for the same time period.
Q. Why Did The Fund Perform This Way?
Throughout this period, the Fund's outperformance resulted from its continued
focus on its themes and sector strategies, and its emphasis on growth in both
sectors and individual companies. The best performing sectors were energy and
health care. Energy was the largest sector overweight within the fund and one of
the biggest contributors to performance for the period. Oil stocks today present
the perfect stock for the current investment environment - offensive due to
anticipated higher commodity prices and defensive in the case of further market
correction. Integrated oil stocks such as Exxon Mobil, BP Amoco and Royal Dutch
are representative holdings. The health care sector was the greatest contributor
to outperformance, and was enhanced further due to strong selection within the
sector. Despite the extreme volatility and higher valuations in information
technology, superior stock selection helped the fund and we believe that this
area represents some of the best growth prospects in the world.
Q. What Is Your Outlook For The Coming Year?
Global economic growth is clearly slowing in the wake of interest rate increases
in most major economies, higher energy prices and slowing technology spending.
We learned that slowing growth effects all sectors, most notably technology,
which, for the first time in several years showed its cyclical vulnerability.
The market environment continues to be both interesting and challenging for
global investors. While volatility can cause periods of dislocation, overall
this is good news for The Hartford Global Leaders portfolio. By their very
nature, global leaders have superior products, market share and management,
making them desirable investments, especially in turbulent times. We continue to
remain committed to our research and sector strategy by investing in what we
believe to be the best companies, regardless of where they are located.
<PAGE> 9
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The Hartford
Stock Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO OF RAND ALEXANDER]
RAND L. ALEXANDER, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
7/22/96 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
7/96 10/00
<S> <C> <C>
STOCK FUND $ 9,450 $23,075
$9,450 starting value
S&P 500 $10,000 $24,054
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Stock A (0.14)% 8.49% 23.2% 2.52% 21.58%
Stock B (0.71)% 7.75% 22.34% 2.75% 22.10%
Stock C* (0.71)% 7.70% 22.31% 5.62% 22.03%
S&P 500 (1.81)% 6.08% 22.76%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Stock Fund. Past
performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
7/22/96 would have been valued at $23,699 on 10/31/00 ($22,988 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
7/22/96 would have been valued at $23,440 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
The Hartford Stock Fund returned (0.14%) (for Class A shares) for the ten-month
period ending October 31, 2000. The Fund outperformed its benchmark, the S&P 500
Index, which returned (1.81%), and the Lipper Large-Cap Core Average which
returned (0.9%) for the same time period.
Q. Why Did The Fund Perform This Way?
The Fund's overweight position in the health care sector combined with strong
stock selection contributed most significantly to the Fund's performance. Two of
the strongest performers were Cardinal Health and American Home Products. Stock
selection in the finance sector also helped performance as Marsh & McLennan and
State Street were strong. The Fund was hurt by an overweight position and poor
stock selection within the information and entertainment sector. Over the last
10 months we reduced the Fund's weighting in the technology sector where
valuations are stretched and earnings disappointments have been common. Relative
to the S&P 500 Index, the Fund continues to be overweight in health care,
consumer staples and energy and underweight in telecom, technology and media.
Q. What Is Your Outlook For The Coming Year?
Higher energy prices and tighter liquidity conditions should produce a slowing
in U.S. economic growth. Therefore, it seems appropriate to tilt the Fund
towards relatively stable and predictable growth sectors such as health care,
food and beverages, and household products. We expect consumer spending to
moderate from the very strong rates of increase of the past two years.
Decelerating corporate earnings gains should translate into weakness in business
investment. Inflation estimates have been boosted yet again to reflect
stubbornly high oil prices. We believe that the Federal Reserve tightening cycle
is over, and that the next change in monetary policy could well be towards a
more accommodative stance. In the meantime, liquidity remains high; the dollar
continues as the currency of choice and while valuations in some sectors are
stretched, we remain cautiously optimistic about equities.
<PAGE> 10
--------------------------------------------------------------------------------
The Hartford
Growth and Income Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO OF JAMES RULLO]
JAMES A. RULLO, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
4/30/98 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
4/98 10/00
<S> <C> <C>
GROWTH AND INCOME FUND $ 9,450 $13,124
$9,450 starting value
S&P 500 $10,000 $13,276
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 4/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Growth & Inc A 0.15% 10.64% 14.00% 4.55% 11.45%
Growth & Inc B (0.51)% 9.76% 13.16% 4.76% 12.16%
Growth & Inc C* (0.44)% 9.84% 13.22% 7.74% 12.76%
S&P 500 (1.81)% 6.08% 11.97%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Growth and Income
Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
4/30/98 would have been valued at $13,634 on 10/31/00 ($13,225 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
4/30/98 would have been valued at $13,514 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
The Hartford Growth and Income Fund returned 0.15% (for Class A shares) or the
ten-month period ended in October 31, 2000. The Fund's return exceeded that of
the S&P 500 Index, which returned (1.81%), and outperformed the Lipper Large Cap
Core, which returned (0.9%) during the same time period.
Q. Why Did The Fund Perform This Way?
The Fund's overweight position in health care was the biggest contributor to the
Fund's performance for the period ended in October 31, 2000. The strongest
contributors in the health care sector were Immunex and Pharmacia. Technology
finally showed some signs of weakness in the period. However, the Fund benefited
from strong stock selection here, and was able to take profits in such tech
names as Corning and 3Com.
Q. What Is Your Outlook For The Coming Year?
The technology sector will remain the largest sector in the Fund as we expect
the semiconductor industry cycle to stabilize. We continue to have a positive
outlook for the electric utility industry. In the telephone utility sector, we
are negative on the prospects concerning the growth of voice transmission but we
are excited about the fundamentals of data.
Higher energy prices and tighter liquidity conditions should produce a slowing
in U.S. economic growth. We expect consumer spending to moderate from the very
strong rates of increase of the past two years. Inflation estimates have been
boosted yet again to reflect stubbornly high oil prices. We believe that the
Federal Reserve tightening cycle may be over, and that the next change in
monetary policy could be towards a more accommodative stance.
<PAGE> 11
--------------------------------------------------------------------------------
The Hartford
Dividend and Growth Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO OF LAURIE GABRIEL]
LAURIE A. GABRIEL, CFA
Senior Vice President and Managing Partner
Wellington Management Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
7/22/96 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
7/96 10/00
<S> <C> <C>
DIVIDEND AND GROWTH FUND $ 9,450 $18,242
$9,450 starting value
S&P 500 $10,000 $24,054
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Div & Grow A 6.77% 7.53% 16.61% 1.62% 15.08%
Div & Grow B 6.17% 6.76% 15.79% 1.76% 15.50%
Div & Grow C* 6.17% 6.79% 15.79% 4.72% 15.52%
S&P 500 (1.81)% 6.08% 22.76%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Dividend and
Growth Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
7/22/96 would have been valued at $18,726 on 10/31/00 ($18,164 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
7/22/96 would have been valued at $18,543 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
The Hartford Dividend & Growth Fund returned 6.77% (for Class A shares) for the
ten-month period ending October 31, 2000. The Fund out-performed its benchmark,
the S&P 500 Index, which returned (1.81%), and outperformed the Lipper Equity
Income Average, which returned 5.5% for the same time period.
Q. Why Did The Fund Perform This Way?
Overweight positions in finance, health care and utilities contributed to the
Fund's outperformance of the S&P. The Fund continues to be significantly
underweight in the weakening information technology sector, which remains the
largest sector weighting of the S&P 500 Index. Despite the weakness seen in this
sector overall in the second half of the year, the Fund has been able to take
profits in Corning, the Fund's top performing stock in the period. Our
persistent overweight in Utilities also paid off handsomely this year-to-date,
with Duke Energy, Enron, and Pinnacle West especially strong. Other strong
contributors include a trio of finance companies: Washington Mutual, Merrill
Lynch, and Marsh & McLennan. The Fund's small exposure to a strong REIT sector
also helped performance in the period.
Q. What Is Your Outlook For The Coming Year?
The Fund will remain committed to its conservative value style. As more
speculative New Economy stocks falter, the market should favor more established
sectors such as health care and utilities. Within these sectors the Fund's focus
will be on those companies that are poised to benefit from better-than-expected
fundamental results combined with upward re-valuation. As always, the Fund will
seek the security and stability of value stocks that pay dividends.
<PAGE> 12
--------------------------------------------------------------------------------
The Hartford
Advisers Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGERS
RAND L. ALEXANDER, CFA
Senior Vice President [PHOTO OF RAND ALEXANDER]
and Partner
Wellington Management
Company, LLP
PAUL D. KAPLAN
[PHOTO OF PAUL KAPLAN] Senior Vice President and
Partner
Wellington Management
Company, LLP
PERFORMANCE OVERVIEW
[LINE GRAPH]
7/22/96 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
7/96 10/00
<S> <C> <C>
ADVISERS FUND $ 9,450 $18,086
$9,450 starting value
S&P 500 $10,000 $24,054
$10,000
LEHMAN GOVT/CORP $10,000 $13,318
$10,000
</TABLE>
================================================================================
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Advisers A 2.52% 7.86% 16.38% 1.93% 14.85%
Advisers B 1.89% 7.08% 15.58% 2.08% 15.29%
Advisers C* 1.89% 7.04% 15.55% 4.97% 15.28%
S&P 500 (1.81)% 6.08% 22.76%
Lehman govt/corp 7.84% 7.13% 6.93%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford Advisers Fund.
Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
7/22/96 would have been valued at $18,582 on 10/31/00 ($18,025 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
7/22/96 would have been valued at $18,378 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
Hartford Advisers Fund returned 2.52% (for Class A shares) for the ten-month
period ending October 31, 2000. The Fund's return exceeded the 2.3% return for
the Lipper Flexible Mutual Fund Average for the same time period.
Q. Why Did The Fund Perform This Way?
The Fund's overweight position in the health care sector combined with strong
stock selection contributed most significantly to the Fund's performance. Two of
the strongest performers were Cardinal Health and American Home Products. Stock
selection in the finance sector also helped performance as Marsh & McLennan and
State Street were strong. The Fund was hurt by an overweight position and poor
stock selection within the information and entertainment sector. Over the last
10 months we reduced the Fund's weighting in the technology sector where
valuations are stretched and earnings disappointments have been common. Relative
to the S&P 500 Index, the Fund continues to be overweight in health care and
consumer staples and underweight in telecom, technology and media. The
performance of the fixed income portion of the Fund benefited from a slightly
longer duration than the benchmark.
Q. What Is Your Outlook For The Coming Year?
We anticipate a slowing in U.S. economic growth; therefore, it seems appropriate
to tilt the equity portion of the Fund towards relatively stable and predictable
growth sectors such as health care, food and beverages, and household products.
We expect consumer spending to moderate from the very strong rates of increase
of the past two years. We believe that the Federal Reserve tightening cycle is
over, and that the next change in monetary policy could be well towards a more
accommodative stance.
Bond market conditions remain unique in the context of the past thirty years.
Low inflation, a Treasury budget surplus, shrinking Treasury security supply, a
very low unemployment rate with a tight labor market, and poor liquidity in the
corporate bond market all combine to produce an environment which investors have
never seen before. Given the anticipated slowing in the U.S. economy and the
possibility of an easier Fed, we expect the interest rate environment to be
benign, with stable to lower yields.
<PAGE> 13
--------------------------------------------------------------------------------
The Hartford
High Yield Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO OF ALISON GRANGER]
ALISON D. GRANGER, CFA
Senior Vice President
Hartford Investment
Management Company
PERFORMANCE OVERVIEW
[LINE GRAPH]
3/90/98 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
9/98 10/00
<S> <C> <C>
HIGH YIELD FUND $ 9,550 $10,176
$9,550 starting value
LEHMAN HIGH YIELD $10,000 $10,057
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 9/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
High Yield A (0.35)% 1.35% 3.09% (3.21)% 0.84
High Yield B (0.92)% 0.66% 2.36% (4.34)% 0.95
High Yield C (0.90)% 0.69% 2.37% (1.32)% 1.88
Lehman High Yield (3.84)% (1.61)% 0.27%
</TABLE>
================================================================================
The chart represents a hypothetical investment in The Hartford High Yield Fund.
Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
9/30/98 would have been valued at $10,499 on 10/31/00 ($10,184 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
9/30/98 would have been valued at $10,397 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
The Hartford High Yield Fund returned (0.35%) (for Class A shares) for the
ten-month period ending October 31, 2000. The Fund outperformed The Lipper High
Yield peer group which returned (5.5%) for the same time period.
Q. Why Did The Fund Perform This Way?
The Fund maintains a significant overweight to BB-rated securities, which
continue to outperform their lower rated counterparts. This trend has been in
place since the first quarter of 2000, and is a trend we believe will persist
for the foreseeable future given the increasingly difficult credit environment.
The Fund's overweight to energy-related issuers and acute healthcare providers
also continues to benefit performance. Regarding energy, the rise in oil over
the past year and a half has led to improved credit fundamentals for the sector,
contributing to positive rating action. The acute healthcare sector has produced
strong earnings reports and rising admissions trends, leading to strong
performance in both the stock and bond markets. Finally, the Fund's underweight
to the telecommunications sector boosted performance in the past month as the
sector posted a dismal return on rising liquidity concerns. We have begun to
increase our exposure to that sector given the poor performance and deeply
reduced dollar prices.
The Fund's underweight to the gaming sector was a negative for the performance
during October as these issuers prove resilient to the rate tightening
environment.
Q. What Is Your Outlook For The Coming Year?
The current yield offered by the high yield market today is approaching 10.17%,
offering income-seeking investors an attractive investment complement to higher
quality fixed income securities or equities.
Looking forward, we are emphasizing the following themes in the high yield
funds.
The first theme is quality. Given heightened default risk and decreased
issuer-access to capital markets, we will maintain our above average exposure to
higher quality issuers.
Secondly, we believe that the credit fundamentals remain positive for
energy-related issuers and acute healthcare. We will maintain our overweight
positions to both sectors.
Thirdly, we will maintain an opportunistic approach to the telecommunications
sector as we expect continued volatility and event risk.
Finally, we remain cautious on consumer-sensitive sectors including retailers,
consumer products and financial institutions given the potential for further Fed
action in the coming quarters.
<PAGE> 14
--------------------------------------------------------------------------------
The Hartford
Bond Income Strategy Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGER
[PHOTO OF ALISON GRANGER]
ALISON D. GRANGER, CFA
Senior Vice President
Hartford Investment
Management Company
PERFORMANCE OVERVIEW
[LINE GRAPH]
7/22/96 - 10/31/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
<TABLE>
<CAPTION>
7/96 10/00
<S> <C> <C>
BOND INCOME STRATEGY $ 9,550 $12,537
$9,550 starting value
LEHMAN GOVT/CORP $10,000 $13,318
$10,000 starting value
</TABLE>
================================================================================
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
ANNUALIZED ANNUALIZED
YTD(1) 1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C> <C>
Bond A 7.17% 6.58% 6.57% 1.78% 5.43%
Bond B 6.48% 5.77% 5.80% 0.77% 5.41%
Bond C* 6.55% 5.86% 5.81% 3.80% 5.56%
Lehman govt/corp 7.84% 7.13% 6.93%
</TABLE>
The chart represents a hypothetical investment in The Hartford Bond Income
Strategy Fund. Past performance does not guarantee future results.
The value of shares will fluctuate so that when redeemed, shares may be worth
more or less than their original cost.
(1) Performance results do not reflect sales charge.
(2) The initial investment in Class A and C shares reflects the maximum sales
charge and B shares reflect a CDSC.
* Class C Shares commenced operations on 8/1/98. Performance prior to 8/1/98
reflects Class B performance less Class C sales charges where applicable.
A $10,000 investment in the fund's Class B shares at the Fund's inception on
7/22/96 would have been valued at $12,731 on 10/31/00 ($12,349 with a redemption
at the end of the period.)
A $10,000 investment in the fund's Class C shares at the Fund's inception on
7/22/96 would have been valued at $12,608 on 10/31/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
Q. How Did The Fund Perform?
The Hartford Bond Income Strategy Fund returned 7.17% (for Class A shares) for
the ten months ended October 31, 2000. The fund outperformed the Lipper
Corporate Debt "BBB" rated peer group which returned 4.8% for the same time
period.
Q. Why Did The Fund Perform This Way?
The Fund's high average portfolio credit quality produced outperformance this
year. It's significant allocation to US Treasury bonds and Treasury
Inflation-Indexed Securities helped performance throughout the year, as these
issues produced double-digit returns.
The Fund's emphasis on mortgage passthrough securities in lieu of corporate
bonds continued to contribute positively to portfolio returns as longer-dated
corporate issues underperformed the mortgage sector.
Within the corporate bond market, the Fund's overweighted position to the oil
and gas-related and health care industries helped performance throughout the
year. The underweight to consumer-dependent industries such as retail also
helped performance.
The Fund's small percentage allocation to euro-denominated securities hindered
performance during the third quarter, as the currency did not keep pace with
performance of the U.S. dollar.
Q. What Is Your Outlook For The Coming Year?
While Treasuries have performed extremely well relative to other fixed income
alternatives this year, our outlook toward these securities is trending from
positive to neutral. Much of the U.S. government's positive fiscal position and
continued focus on debt reduction appears to be priced into these issues. Within
the Treasury market, we continue to have a positive outlook toward Treasury
Inflation-Indexed Securities, as we believe that these securities offer
attractive real return potential relative to other US fixed income alternatives.
We expect to maintain a substantial position in mortgage passthrough securities
for the foreseeable future. While they performed well in 2000, they continue to
provide attractive yield and provide a greater opportunity for liquidity than is
currently available in the corporate market.
The corporate bond market has experienced a very difficult year. We do not
expect a broad recovery in the near future. However, we do see opportunity to
earn attractive yield with reasonable risk in certain long-maturity investment
grade issues. Our analysts' opinions will play a critical role here, as
individual company performance remains highly divergent.
In spite of its underperformance during the third quarter, we will maintain the
position the Fund holds in Euro-denominated securities. Our view is that the
dollar is significantly overbought and that fundamentals and technical dynamics
are very slowly turning in favor of the Euro.
<PAGE> 15
THE HARTFORD MUTUAL FUNDS, INC.
TABLE
OF
CONTENTS
Manager Discussions 3
The Hartford Mutual Funds, Inc. Financial Statements
Statements of Net Assets or Statements of Assets and Liabilities as of
October 31, 2000:
The Hartford Global Health Fund 16
The Hartford Global Technology Fund 18
The Hartford Small Company Fund 20
The Hartford Capital Appreciation Fund 22
The Hartford MidCap Fund 25
The Hartford International Opportunities Fund 27
The Hartford Global Leaders Fund 31
The Hartford Stock Fund 34
The Hartford Growth and Income Fund 36
The Hartford Dividend and Growth Fund 39
The Hartford Advisers Fund 42
The Hartford High Yield Fund 46
The Hartford Bond Income Strategy Fund 51
The Hartford Money Market Fund 55
Statement of Operations for the Period Ended October 31, 2000* 58
Statement of Changes in Net Assets for the Period Ended October 31,
2000* 60
Statement of Changes in Net Assets for the Year Ended December 31,
1999 62
Notes to Financial Statements 64
Financial Highlights 84
Report of Independent Public Accountants 94
Tax Information Notice 95
* The Hartford Mutual Funds, Inc. changed its fiscal year-end from
December 31 to October 31. As a result, these financial statements are
for a ten-month period ending October 31, 2000. (See Note 2(n)in Notes
to Financial Statements)
<PAGE> 16
THE HARTFORD GLOBAL HEALTH FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- -------
<C> <S> <C>
COMMON STOCKS -- 96.3%
CHEMICALS -- 12.0%
70 Aventis S.A., ADR..................... $ 5,044
115 Pharmacia Corp. ...................... 6,347
-------
11,391
-------
CONSUMER NON-DURABLES -- 4.1%
19 Cardinal Health, Inc. ................ 1,819
74 McKesson HBOC, Inc. .................. 2,074
-------
3,893
-------
DRUGS -- 46.7%
87 Abbott Laboratories................... 4,574
85 American Home Products Corp. ......... 5,385
105 AstraZeneca Group PLC, ADR............ 5,021
47 Banyu Pharmaceutical Co., Ltd. ....... 1,007
*84 BioChem Pharma, Inc. ................. 2,077
39 Eisai Co., Ltd. ...................... 1,200
49 Eli Lilly & Co. ...................... 4,370
*12 Forest Laboratories, Inc. ............ 1,603
23 Fujisawa Pharmaceutical Co., Ltd. .... 723
*26 Genzyme Corp. ........................ 1,874
*12 Gilead Sciences, Inc. ................ 1,032
*37 Immunex Corp. ........................ 1,579
*11 Medicines Co. (The)................... 340
30 Mylan Laboratories.................... 834
33 Nycomed Amersham PLC, ADR............. 1,516
78 Schering-Plough Corp. ................ 4,047
1 Serono S.A., B Shares................. 741
44 SmithKline Beecham PLC, ADR, A
Shares............................... 2,894
22 Takeda Chemical Industries Ltd. ...... 1,449
73 Tanabe Seiyaku Co., Ltd. ............. 546
*41 Triangle Pharmaceuticals, Inc. ....... 344
*56 Versicor, Inc. ....................... 736
*17 ViroPharma, Inc. ..................... 408
-------
44,300
-------
ELECTRICAL EQUIPMENT -- 1.4%
*45 Thermo Electron Corp. ................ 1,308
-------
FINANCIAL SERVICES -- 0.3%
2 CIGNA Corp. .......................... 244
-------
HEALTH SERVICES -- 9.0%
*27 Caremark Rx, Inc. .................... 338
*70 Connectics Corp. ..................... 367
*40 Exelixis, Inc. ....................... 871
*70 Foundation Health Systems, Inc., Class
A.................................... 1,403
42 HCA -- The Healthcare Co. ............ 1,657
*20 Immunomedics, Inc. ................... 463
23 King Pharmaceuticals, Inc. ........... 1,013
*62 Tenet Healthcare Corp. ............... 2,449
-------
8,561
-------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- -------
<C> <S> <C>
MEDICAL INSTRUMENTS &
SUPPLIES -- 15.3%
30 Bard (C.R.), Inc. .................... $ 1,244
35 Bausch & Lomb, Inc. .................. 1,330
33 Baxter International, Inc. ........... 2,696
17 Beckman Coulter, Inc. ................ 1,205
75 Becton, Dickinson & Co. .............. 2,513
41 Biomet, Inc. ......................... 1,480
143 Gambro AB, B Shares................... 1,122
207 Smith & Nephew PLC.................... 864
*38 St. Jude Medical, Inc. ............... 2,085
-------
14,539
-------
RESEARCH & TESTING FACILITIES -- 3.7%
*13 Aurora Biosciences Corp. ............. 762
*6 CV Therapeutics, Inc. ................ 465
*37 Gene Logic, Inc. ..................... 798
*30 Monsanto Co. ......................... 762
*22 Sequenom, Inc. ....................... 699
-------
3,486
-------
RETAIL -- 1.5%
*52 Regeneron Pharmacy, Inc. ............. 1,380
-------
SOFTWARE & SERVICES -- 2.3%
94 IMS Health, Inc. ..................... 2,223
-------
Total common stocks................... $91,325
=======
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 1.7%
REPURCHASE AGREEMENT -- 1.7%
$1,626 Joint Repurchase Agreement
(See Note 2(f))
6.551% due 11/01/00.................. $ 1,626
-------
Total short-term securities........... $ 1,626
=======
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost $80,186)....... 96.3% $91,325
Total short-term securities (cost
$1,626)................................ 1.7 1,626
----- -------
Total investment in securities
(total cost $81,812)................... 98.0 92,951
Cash, receivables and other assets....... 3.5 3,290
Security lending collateral.............. 5.9 5,560
Payable for securities purchased......... (1.3) (1,279)
Payable for Fund shares redeemed......... (0.1) (92)
Security lending collateral payable to
brokers................................ (5.9) (5,560)
Other liabilities........................ (0.1) (42)
----- -------
Net assets............................... 100.0% $94,828
===== =======
</TABLE>
The accompanying notes are an integral part of this financial statement.
16
<PAGE> 17
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
-------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 6,852 shares
outstanding................................... $ 7
Paid-in surplus................................. 79,986
Accumulated undistributed net realized gain on
investments................................... 3,860
Unrealized appreciation of investments.......... 10,978
Unrealized depreciation of other assets and
liabilities in foreign currencies............. (3)
-------
Net assets...................................... $94,828
=======
</TABLE>
<TABLE>
<CAPTION>
Class A
<S> <C>
Net asset value per share ($44,917 / 3,240
shares outstanding) (125,000 shares
authorized)................................. $ 13.86
=======
Maximum offering price per share ($13.86 /
94.5%)...................................... $ 14.67
=======
Class B
Net asset value and maximum offering price per
share ($20,574 / 1,490 shares outstanding)
(75,000 shares authorized).................. $ 13.81
=======
Class C
Net asset value per share ($26,830 / 1,942
shares outstanding)(50,000 shares
authorized)................................. $ 13.81
=======
Maximum offering price per share($13.81 /
99.0%)...................................... $ 13.95
=======
Class Y
Net asset value and maximum offering price per
share ($2,507 / 180 shares outstanding)
(50,000 shares authorized).................. $ 13.89
=======
</TABLE>
* Non-income producing during the period.
17
<PAGE> 18
THE HARTFORD GLOBAL TECHNOLOGY FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- -------
<C> <S> <C>
COMMON STOCKS -- 98.3%
COMMUNICATIONS -- 16.7%
*44 Advanced Fibre Communications,
Inc. ................................ $ 1,429
*16 CIENA Corp. .......................... 1,629
*50 Exodus Communications, Inc. .......... 1,665
*1 Inrange Technologies Corp. ........... 29
*4 Juniper Networks, Inc. ............... 741
26 Nortel Networks Holdings Corp. ....... 1,178
*16 ONI Systems Corp. .................... 1,265
*18 Research in Motion Ltd. .............. 1,770
*5 SDL, Inc. ............................ 1,167
*49 Sonus Networks, Inc. ................. 1,691
-------
12,564
-------
COMPUTERS & OFFICE EQUIPMENT -- 20.6%
*128 Cisco Systems, Inc. .................. 6,912
90 Compaq Computer Corp. ................ 2,728
*47 Dell Computer Corp. .................. 1,372
31 International Business Machines
Corp. ............................... 3,073
*26 Palm, Inc. ........................... 1,398
-------
15,483
-------
ELECTRICAL EQUIPMENT -- 7.1%
*29 Credence Systems Corp. ............... 542
*64 Teradyne, Inc. ....................... 2,009
*42 Veeco Instruments, Inc. .............. 2,800
-------
5,351
-------
ELECTRONICS -- 13.8%
*31 Analog Devices, Inc. ................. 1,989
*8 Applied Micro Circuits Corp. ......... 580
*39 Cypress Semiconductor Corp. .......... 1,468
*21 JDS Uniphase Corp. ................... 1,684
*69 MEMC Electronic Materials, Inc. ...... 690
*44 Micron Technology, Inc. .............. 1,526
*7 OmniVision Technologies, Inc. ........ 222
*65 United Microelectronics Corp., ADR.... 734
*22 Vitesse Semiconductor Corp. .......... 1,518
-------
10,411
-------
MACHINERY -- 5.5%
*17 Applied Materials, Inc. .............. 887
*18 Brooks Automation, Inc. .............. 464
*72 Lam Research Corp. ................... 1,387
*58 Ultratech Stepper, Inc. .............. 1,370
-------
4,108
-------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- -------
<C> <S> <C>
SOFTWARE & SERVICES -- 34.3%
*15 America Online, Inc. ................. $ 751
*96 Ceridian Corp. ....................... 2,403
28 Electronic Data Systems Corp. ........ 1,319
*33 Macromedia, Inc. ..................... 2,543
*71 Microsoft Corp. ...................... 4,876
*173 Quantum Hard Disk Drive Corp. ........ 1,975
*53 Rational Software Corp. .............. 3,169
*26 Sun Microsystems, Inc. ............... 2,872
*19 SunGard Data Systems, Inc. ........... 982
*19 VeriSign, Inc. ....................... 2,479
*43 Verity, Inc. ......................... 1,013
*46 Vignette Corp. ....................... 1,377
-------
25,759
-------
TRANSPORTATION -- 0.3%
*7 Sabre Group Corp. .................... 237
-------
Total common stocks................... $73,913
=======
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 2.3%
REPURCHASE AGREEMENT -- 2.3%
$1,726 Joint Repurchase Agreement
(See Note 2(f))
6.551% due 11/01/00.................. $ 1,726
-------
Total short-term securities........... $ 1,726
=======
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost $83,731)....... 98.3% $73,913
Total short-term securities (cost
$1,726)................................ 2.3 1,726
----- -------
Total investment in securities
(total cost $85,457)................... 100.6 75,639
Cash, receivables and other assets....... 3.6 2,692
Security lending collateral.............. 5.8 4,347
Payable for securities purchased......... (4.0) (3,050)
Payable for Fund shares redeemed......... (0.1) (41)
Security lending collateral payable to
brokers................................ (5.8) (4,347)
Other liabilities........................ (0.1) (31)
----- -------
Net assets............................... 100.0% $75,209
===== =======
</TABLE>
The accompanying notes are an integral part of this financial statement.
18
<PAGE> 19
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
-------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 8,642 shares
outstanding................................... $ 9
Paid-in surplus................................. 85,314
Accumulated net realized loss on investments.... (296)
Unrealized depreciation of investments.......... (9,818)
-------
Net assets...................................... $75,209
=======
</TABLE>
<TABLE>
<CAPTION>
Class A
<S> <C>
Net asset value per share ($33,221 / 3,811
shares outstanding) (125,000 shares
authorized)................................. $ 8.72
=======
Maximum offering price per share
($8.72 / 94.5%)............................. $ 9.23
=======
Class B
Net asset value and maximum offering price per
share ($15,676 / 1,805 shares outstanding)
(75,000 shares authorized).................. $ 8.68
=======
Class C
Net asset value per share ($21,615 / 2,490
shares outstanding) (50,000 shares
authorized)................................. $ 8.68
=======
Maximum offering price per share
($8.68 / 99.0%)............................. $ 8.77
=======
Class Y
Net asset value and maximum offering price per
share ($4,677 / 536 shares outstanding)
(50,000 shares authorized).................. $ 8.73
=======
</TABLE>
* Non-income producing during the period.
19
<PAGE> 20
THE HARTFORD SMALL COMPANY FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- 85.1%
BUSINESS SERVICES -- 5.4%
*317 Iron Mountain, Inc. ................. $ 10,705
238 Manpower, Inc. ...................... 8,285
*4 StorageNetworks, Inc. ............... 273
--------
19,263
--------
COMMUNICATIONS -- 9.5%
*79 Advanced Fibre Communications,
Inc. ............................... 2,576
*229 Andrew Corp. ........................ 6,023
*73 DMC Stratex Networks................. 1,697
*48 Efficient Networks, Inc. ............ 2,022
*427 Mpower Communications Corp. ......... 2,777
*31 Proxim, Inc. ........................ 1,904
*116 SBA Communications Corp. ............ 5,815
*235 Spectrasite Holdings, Inc. .......... 4,641
*142 Tekelec.............................. 5,238
*184 US Unwired, Inc., Class A............ 1,289
--------
33,982
--------
COMPUTERS & OFFICE EQUIPMENT -- 0.5%
*94 Concurrent Computer Corp. ........... 1,662
--------
CONSUMER NON-DURABLES -- 1.5%
50 Bindley Western Industries, Inc. .... 1,786
*58 Kenneth Cole Productions, Inc., Class
A................................... 2,640
*17 Priority Healthcare Corp., Class B... 908
--------
5,334
--------
DRUGS -- 2.6%
*77 Albany Molecular Research, Inc. ..... 4,447
*30 Gilead Sciences, Inc. ............... 2,576
*70 ImmunoGen, Inc. ..................... 2,410
--------
9,433
--------
ELECTRICAL EQUIPMENT -- 0.7%
*25 Bruker Daltonics, Inc. .............. 846
*25 Veeco Instruments, Inc. ............. 1,668
--------
2,514
--------
ELECTRONICS -- 10.0%
*101 Actel Corp. ......................... 3,692
*140 AXT, Inc. ........................... 5,378
*126 Emcore Corp. ........................ 5,158
*23 International Rectifier Corp. ....... 1,022
*127 Oak Technology, Inc. ................ 3,567
*60 Plexus Corp. ........................ 3,803
*225 REMEC, Inc. ......................... 6,702
*83 Semtech Corp. ....................... 2,674
*139 Supertex, Inc. ...................... 3,955
--------
35,951
--------
ENERGY & SERVICES -- 4.9%
376 Cross Timbers Oil Co. ............... 7,066
*116 Evergreen Resources, Inc. ........... 3,179
*230 Hanover Compressor Co. .............. 7,494
--------
17,739
--------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
FINANCIAL SERVICES -- 5.6%
169 Legg Mason, Inc. .................... $ 8,777
140 Metris Companies, Inc. .............. 4,523
112 People's Bank........................ 2,276
*15 Telecom Holders Trust................ 982
*49 Trigon Healthcare, Inc. ............. 3,491
--------
20,049
--------
HEALTH SERVICES -- 8.9%
*876 Caremark Rx, Inc. ................... 10,951
*14 Connectics Corp. .................... 72
*38 Exelixis, Inc. ...................... 834
*52 Express Scripts, Inc., Class A....... 3,460
*468 Foundation Health Systems, Inc.,
Class A............................. 9,448
*158 Quorum Health Group, Inc. ........... 2,117
*101 Varian Medical Systems, Inc. ........ 4,941
--------
31,823
--------
MACHINERY -- 0.7%
*79 Grant Prideco, Inc. ................. 1,459
*71 Varco International, Inc. ........... 1,217
--------
2,676
--------
MANUFACTURING -- 0.0%
*1 Doncasters PLC, ADR.................. 16
--------
MEDIA & ENTERTAINMENT -- 1.4%
*155 Harrah's Entertainment, Inc. ........ 4,440
15 Pegasus Communications Corp., Class
A................................... 530
--------
4,970
--------
MEDICAL INSTRUMENTS & SUPPLIES -- 0.7%
*3 I-STAT Corp. ........................ 51
*96 North American Scientific, Inc. ..... 2,605
--------
2,656
--------
METALS, MINERALS & MINING -- 2.2%
46 Minas BuenaVentura, Class B, ADR..... 595
*249 Stillwater Mining Co. ............... 7,233
--------
7,828
--------
REAL ESTATE -- 2.7%
184 Liberty Property Trust (REIT)........ 4,867
184 Reckson Associates Realty Corp.
(REIT).............................. 4,152
*25 Regus PLC, ADR....................... 567
--------
9,586
--------
RESEARCH & TESTING FACILITIES -- 2.1%
*36 Aurora Biosciences Corp. ............ 2,200
*252 Core Laboratories N.V. .............. 5,440
--------
7,640
--------
</TABLE>
The accompanying notes are an integral part of this financial statement.
20
<PAGE> 21
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- 7.1%
*66 American Eagle Outfitters, Inc. ..... $ 2,256
*128 Ann Taylor Store..................... 3,852
*136 Cheesecake Factory, Inc. (The)....... 6,042
169 Pier 1 Imports, Inc. ................ 2,243
*259 Venator Group, Inc. ................. 3,658
*81 Whole Foods Market, Inc. ............ 3,756
*172 Williams-Sonoma, Inc. ............... 3,581
--------
25,388
--------
SOFTWARE & SERVICES -- 10.6%
*204 Affiliated Computer Services, Inc.,
Class A............................. 11,338
*133 Brio Technolgy, Inc. ................ 1,091
*158 Broadbase Software, Inc. ............ 1,695
*147 Cognos, Inc. ........................ 6,105
*159 DigitalThink, Inc. .................. 5,613
*180 HomeStore.com, Inc. ................. 6,106
*7 Interwoven, Inc. .................... 685
*3 Intranet Solutions, Inc. ............ 153
*229 Verity, Inc. ........................ 5,386
--------
38,172
--------
TRANSPORTATION -- 7.6%
*235 Atlas Air, Inc. ..................... 8,506
*216 Ryanair Holdings PLC, ADR............ 8,691
108 Skywest, Inc. ....................... 5,454
*327 Swift Transportation Co., Inc. ...... 4,655
--------
27,306
--------
UTILITIES -- 0.5%
*316 Apac Teleservices, Inc. ............. 1,696
--------
Total common stocks (cost
$295,266)........................... $305,684
========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 10.0%
REPURCHASE AGREEMENT -- 10.0%
$35,922 Joint Repurchase Agreement
(See Note 2(f))
6.551% due 11/01/00................. $ 35,922
--------
Total short-term securities (cost
$35,922)............................ $ 35,922
========
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment in securities, at value (total cost
$331,188) -- see accompanying portfolio...... $341,606
Receivable for securities sold................. 19,534
Receivable for Fund shares sold................ 1,502
Receivable for dividends and interest.......... 54
Security lending collateral.................... 38,772
Cash and other assets.......................... 2
--------
Total assets................................... 401,470
--------
LIABILITIES
Payable for securities purchased............... 3,140
Payable for Fund shares redeemed............... 281
Security lending collateral payable to
brokers...................................... 38,772
Other liabilities.............................. 132
--------
Total liabilities.............................. 42,325
--------
Net assets..................................... $359,145
========
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 20,080 shares
outstanding.................................. $ 20
Paid-in surplus................................ 340,380
Accumulated undistributed net realized gain on
investments.................................. 8,327
Unrealized appreciation of investments......... 10,418
--------
Net assets..................................... $359,145
========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($164,280 / 9,087
shares outstanding) (125,000 shares
authorized).................................... $18.08
======
Maximum offering price per share ($18.08 /
94.5%)......................................... $19.13
======
Class B
Net asset value and maximum offering price per
share ($71,323 / 4,078 shares outstanding)
(75,000 shares authorized)..................... $17.49
======
Class C
Net asset value per share ($77,337 / 4,418 shares
outstanding) (50,000 shares authorized)........ $17.51
======
Maximum offering price per share ($17.51 /
99.0%)......................................... $17.69
======
Class Y
Net asset value and maximum offering price per
share ($46,205 / 2,497 shares outstanding)
(50,000 shares authorized)..................... $18.50
======
</TABLE>
* Non-income producing during the period.
21
<PAGE> 22
THE HARTFORD CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS -- 97.8%
BUSINESS SERVICES -- 1.9%
*975 iBEAM Broadcasting Corp. .......... $ 5,484
850 Manpower, Inc. .................... 29,591
*1,285 Pegasystems, Inc. ................. 6,989
*408 United Rentals (North America),
Inc. ............................. 8,772
----------
50,836
----------
CHEMICALS -- 3.4%
*1,317 Cytec Industries, Inc. ............ 45,612
850 Pharmacia Corp. ................... 46,750
----------
92,362
----------
COMMUNICATIONS -- 3.8%
*700 Advanced Fibre Communications,
Inc. ............................. 22,794
*445 Exodus Communications, Inc. ....... 14,922
*117 Global Crossing Ltd. .............. 2,759
*850 Nextel Partners, Inc. ............. 20,825
*389 Sonus Networks, Inc. .............. 13,407
*1,182 Worldcom, Inc. .................... 28,080
----------
102,787
----------
COMPUTERS & OFFICE EQUIPMENT --1.9%
*388 Adept Technology, Inc. ............ 10,816
*804 Ingram Micro, Inc., Class A........ 13,710
*1,041 Rainbow Technologies, Inc. ........ 25,905
----------
50,431
----------
CONSTRUCTION -- 1.0%
550 Chicago Bridge & Iron Co. N.V. .... 8,697
2,541 Foster Wheeler Corp. .............. 18,736
----------
27,433
----------
CONSUMER DURABLES -- 0.1%
121 Grainger (W.W.), Inc. ............. 3,874
----------
CONSUMER NON-DURABLES -- 4.4%
*557 Hexcel Corp. ...................... 6,095
2,390 McKesson HBOC, Inc. ............... 67,055
*2,927 Smurfit-Stone Container Corp. ..... 39,519
*635 United Natural Foods, Inc. ........ 7,977
----------
120,646
----------
CONSUMER SERVICES -- 0.9%
*806 Bright Horizons Family Solutions,
Inc. ............................. 20,150
*124 Edison Schools, Inc. .............. 3,394
----------
23,544
----------
DRUGS -- 2.2%
*715 Genzyme Surgical Products.......... 5,342
*122 Gilead Sciences, Inc. ............. 10,458
675 Teva Pharmaceutical Industries
Ltd., ADR......................... 39,909
*575 Triangle Pharmaceuticals, Inc. .... 4,834
----------
60,543
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
ELECTRICAL EQUIPMENT -- 1.1%
*375 Credence Systems Corp. ............ $ 7,031
*333 Veeco Instruments, Inc. ........... 22,052
----------
29,083
----------
ELECTRONICS -- 8.4%
*800 Altera Corp. ...................... 32,750
*741 American Xtal Technology, Inc. .... 28,532
*241 Applied Micro Circuits Corp. ...... 18,391
*275 Elantec Semiconductor, Inc. ....... 30,538
*400 Emcore Corp. ...................... 16,400
*700 GSI Lumonics, Inc. ................ 8,838
600 Helix Technology Corp. ............ 16,725
*220 Micron Technology, Inc. ........... 7,645
*604 National Semiconductor Corp. ...... 15,704
*492 Plexus Corp. ...................... 31,027
*1,046 Read-Rite Corp. ................... 7,783
*1,264 United Microelectronics Corp.,
ADR............................... 14,375
----------
228,708
----------
ENERGY & SERVICES -- 7.9%
701 Burlington Resources, Inc. ........ 25,236
1,123 Cabot Oil & Gas Corp. ............. 22,039
*955 China Petroleum and Chemical Corp.,
H Shares, ADR..................... 18,746
200 Exxon Mobil Corp. ................. 17,838
1,386 Gulf Canada Resources Ltd. ........ 5,888
*2,700 Newpark Resources, Inc. ........... 24,300
*380 Precision Drilling Corp. .......... 10,869
*1,812 R&B Falcon Corp. .................. 45,305
3,061 Sasol Ltd., ADR.................... 23,150
*700 Talisman Energy Corp. ............. 21,978
----------
215,349
----------
FINANCIAL SERVICES -- 8.8%
2,285 Ace Ltd. .......................... 89,686
813 Annuity & Life Re (Holdings),
Ltd. ............................. 22,397
1,200 Heller Financial, Inc., Class A.... 35,100
350 Morgan Stanley Dean Witter &
Co. .............................. 28,085
260 Orix Corp. ........................ 27,265
999 Pacific Century Financial Corp. ... 12,677
667 Reinsurance Group of America,
Inc. ............................. 24,922
----------
240,132
----------
FOOD, BEVERAGE & TOBACCO -- 3.6%
3,075 Archer-Daniels-Midland Co. ........ 33,824
1,000 Nabisco Group Holdings Corp. ...... 28,875
943 Philip Morris Co., Inc. ........... 34,519
----------
97,218
----------
FOREST & PAPER PRODUCTS -- 0.1%
*1,000 Asia Pulp & Paper Company Ltd.,
ADR............................... 1,750
----------
HEALTH SERVICES -- 0.2%
*1,135 Magellan Health Services, Inc. .... 4,540
----------
</TABLE>
The accompanying notes are an integral part of this financial statement.
22
<PAGE> 23
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MACHINERY -- 0.6%
*200 ATS Automation Tooling Systems..... $ 3,549
*1,100 Axcelis Technologies, Inc. ........ 11,825
*105 Hydril Co. ........................ 1,832
----------
17,206
----------
MANUFACTURING -- 1.1%
*396 Doncasters PLC, ADR................ 7,130
*1,003 PRI Automation, Inc. .............. 22,695
----------
29,825
----------
MEDIA & ENTERTAINMENT -- 2.5%
*500 Allegiance Telecom, Inc. .......... 15,719
*1,500 AMC Entertainment, Inc. ........... 3,000
*720 AT&T -- Liberty Media Group, Class
A................................. 12,953
*2,266 Six Flags, Inc. ................... 35,403
----------
67,075
----------
MEDICAL INSTRUMENTS &
SUPPLIES -- 2.3%
1,869 Becton, Dickinson & Co. ........... 62,598
----------
METALS, MINERALS & MINING -- 4.3%
1,021 Alcoa, Inc. ....................... 29,276
838 Engelhard Corp. ................... 17,493
*154 Freeport-McMoRan Copper & Gold,
Inc., Class B..................... 1,225
*100 McMoRan Exploration Co. ........... 1,200
900 Petroleo Brasileiro S.A., ADR...... 26,156
1,101 Precision Castparts Corp. ......... 41,555
----------
116,905
----------
REAL ESTATE -- 3.7%
700 LNR Property Corp. ................ 15,138
*1,680 Pinnacle Holdings, Inc. (REIT)..... 26,454
817 Reckson Associates Realty Corp.
(REIT)............................ 18,473
*2,200 Security Capital Group, Inc., Class
B................................. 41,938
----------
102,003
----------
RESEARCH & TESTING
FACILITIES -- 0.1%
*190 Variagenics, Inc. ................. 3,127
----------
RETAIL -- 8.9%
*650 American Eagle Outfitters, Inc. ... 22,384
*1,343 Bell Microproducts, Inc. .......... 34,928
*782 Brinker International, Inc. ....... 30,678
*750 Cheesecake Factory, Inc. (The)..... 33,234
914 Intimate Brands, Inc., Class A..... 21,822
*566 Pacific Sunwear of California,
Inc. ............................. 11,607
*2,396 Staples, Inc. ..................... 34,143
1,100 Target Corp. ...................... 30,382
*500 Whole Foods Market, Inc. .......... 23,125
----------
242,303
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
SOFTWARE & SERVICES -- 8.6%
*250 America Online, Inc. .............. $ 12,608
*386 AremisSoft Corp. .................. 16,519
*657 Avant! Corp. ...................... 11,047
*1,100 China Unicom Ltd., ADR............. 22,550
*950 Cognex Corp. ...................... 31,825
285 First Data Corp. .................. 14,286
*188 Information Resource Engineering,
Inc. ............................. 7,896
*2,450 Internet Pictures Corp. ........... 5,245
*364 Rational Software Corp. ........... 21,696
*R1,000 Tricord Systems, Inc. ............. 16,500
*200 VeriSign, Inc. .................... 26,400
*630 Verity, Inc. ...................... 14,805
*1,103 Vignette Corp. .................... 32,871
----------
234,248
----------
TRANSPORTATION -- 10.9%
*400 Atlas Air, Inc. ................... 14,500
482 Boeing Co. (The)................... 32,679
606 Canadian Pacific Ltd. ............. 17,693
1,088 CSX Corp. ......................... 27,532
1,644 Delphi Automotive Systems Corp. ... 25,784
940 Empresa Brasileira de Aeronautica
S.A., ADR......................... 27,190
1,013 Honeywell International, Inc. ..... 54,523
*722 NorthWest Airlines Corp., Class
A................................. 20,586
*440 Peak International Ltd. ........... 3,383
*1,214 Ryanair Holdings PLC, ADR.......... 48,923
*1,111 Swift Transportation Co., Inc. .... 15,833
339 USFreightways Corp. ............... 8,716
----------
297,342
----------
UTILITIES -- 5.1%
*825 Calpine Corp. ..................... 65,123
1,500 CMS Energy Corp. .................. 40,500
*107 Southern Energy, Inc. ............. 2,916
1,555 Waste Management, Inc. ............ 31,098
----------
139,637
----------
Total common stocks................ $2,661,505
==========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
CONVERTIBLE BONDS -- 0.6%
BUSINESS SERVICES -- 0.4%
@$ 12,000 Kestrel Solutions
5.50% due 07/15/05................ $ 11,880
----------
ELECTRONICS -- 0.2%
@7,000 Candescent Technology
8.00% due 05/01/03................ 4,760
----------
Total convertible bonds............ $ 16,640
==========
</TABLE>
23
<PAGE> 24
THE HARTFORD CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS -- 0.3%
COMMUNICATIONS -- 0.3%
*R170 Optical Switch Corp., Class B...... $ 7,750
----------
Total convertible preferred
stocks............................ $ 7,750
==========
PREFERRED STOCKS -- 0.1%
ELECTRONICS -- 0.1%
*R1,205 Sensable Technology, Inc. ......... $ 4,000
----------
Total preferred stocks............. $ 4,000
==========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 1.3%
REPURCHASE AGREEMENT -- 1.3%
$ 34,930 Joint Repurchase Agreement (See
Note 2(f))
6.551% due 11/01/00............... $ 34,930
----------
Total short-term securities........ $ 34,930
==========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$2,439,559)......................... 97.8% $2,661,505
Total convertible bonds (cost
$18,088)............................ 0.6 16,640
Total convertible preferred stock
(cost $7,750)....................... 0.3 7,750
Total preferred stock (cost $4,000)... 0.1 4,000
Total short-term securities (cost
$34,930)............................ 1.3 34,930
----- ----------
Total investment in securities (total
cost $2,504,327).................... 100.1 2,724,825
Cash, receivables and other assets.... 2.8 74,810
Security lending collateral........... 6.5 175,820
Payable for securities purchased...... (2.8) (76,556)
Payable for Fund shares redeemed...... (0.1) (2,062)
Security lending collateral payable to
brokers............................. (6.5) (175,820)
Other liabilities..................... (0.0) (818)
----- ----------
Net assets............................ 100.0% $2,720,199
===== ==========
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
----------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 83,204 shares
outstanding................................. $ 83
Paid-in surplus............................... 2,167,958
Accumulated undistributed net realized gain on
investments................................. 331,669
Unrealized appreciation of investments........ 220,498
Unrealized depreciation of forward foreign
currency contracts (See Note 2(h))+......... (3)
Unrealized depreciation of other assets and
liabilities in foreign currencies........... (6)
----------
Net assets.................................... $2,720,199
==========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($1,309,836 / 39,448
shares outstanding) (125,000 shares
authorized).................................... $33.20
======
Maximum offering price per share
($33.20 / 94.5%)............................... $35.13
======
Class B
Net asset value and maximum offering price per
share ($826,495 / 25,719 shares outstanding)
(75,000 shares authorized)..................... $32.14
======
Class C
Net asset value per share ($494,391 / 15,401
shares outstanding) (50,000 shares
authorized).................................... $32.10
======
Maximum offering price per share
($32.10 / 99.0%)............................... $32.42
======
Class Y
Net asset value and maximum offering price per
share ($89,477 / 2,636 shares outstanding)
(50,000 shares authorized)..................... $33.94
======
</TABLE>
* Non-income producing during the period.
@ Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. As of October 31,
2000, the market value of these securities amounted to $16,640 or 0.6% of net
assets.
R Restricted Securities (See Note 2(m))
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
TOTAL CONTRACT DELIVERY UNREALIZED
DESCRIPTION MARKET VALUE AMOUNT DATE DEPRECIATION
--------------------------------------------- ------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Canadian Dollars (Sell) $2,414 $2,411 11/01/00 $ (3)
======
</TABLE>
The accompanying notes are an integral part of this financial statement.
24
<PAGE> 25
THE HARTFORD MIDCAP FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- 90.0%
AEROSPACE & DEFENSE -- 2.4%
*501 SCI Systems, Inc. ................... $ 21,556
--------
APPAREL & TEXTILE -- 0.8%
163 Liz Claiborne, Inc. ................. 6,932
--------
BUSINESS SERVICES -- 4.4%
259 Cintas Corp. ........................ 12,006
*224 Iron Mountain, Inc. ................. 7,569
*102 Lamar Advertising Co., Class A....... 4,915
424 Manpower, Inc. ...................... 14,774
--------
39,264
--------
COMMUNICATIONS -- 7.0%
*326 American Tower Corp., Class A........ 13,338
210 Broadwing, Inc. ..................... 5,927
*1,163 McLeodUSA, Inc., Class A............. 22,388
*222 Nextel Partners, Inc. ............... 5,434
*113 RCN Corp. ........................... 2,004
*277 Western Wireless Corp., Class A...... 13,177
--------
62,268
--------
COMPUTERS & OFFICE EQUIPMENT -- 3.0%
*70 Handspring, Inc. .................... 5,033
*120 Jabil Circuit, Inc. ................. 6,842
*117 Palm, Inc. .......................... 6,278
*87 Qlogic Corp. ........................ 8,408
--------
26,561
--------
CONSUMER DURABLES -- 0.5%
193 Herman Miller, Inc. ................. 5,050
--------
CONSUMER NON-DURABLES -- 0.9%
291 McKesson HBOC, Inc. ................. 8,155
--------
DRUGS -- 4.0%
*103 Forest Laboratories, Inc. ........... 13,581
*123 Gilead Sciences, Inc. ............... 10,595
*23 IDEC Pharmaceuticals Corp. .......... 4,570
*159 Immunex Corp. ....................... 6,780
--------
35,526
--------
EDUCATION -- 0.6%
*162 DeVry, Inc. ......................... 5,969
--------
ELECTRICAL EQUIPMENT -- 3.1%
169 Danaher Corp. ....................... 10,662
63 Tektronix, Inc. ..................... 4,517
*264 Teradyne, Inc. ...................... 8,234
*64 Veeco Instruments, Inc. ............. 4,211
--------
27,624
--------
ELECTRONICS -- 4.3%
*44 Applied Micro Circuits Corp. ........ 3,330
*267 Flextronics International Ltd. ...... 10,161
*36 Integrated Device Technology,
Inc. ............................... 1,999
*107 Novellus Systems, Inc. .............. 4,368
*110 Sanmina Corp. ....................... 12,517
*83 Vitesse Semiconductor Corp. ......... 5,798
--------
38,173
--------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
ENERGY & SERVICES -- 5.3%
160 Anadarko Petroleum Corp. ............ $ 10,267
*181 Nabors Industries, Inc. ............. 9,228
*595 R&B Falcon Corp. .................... 14,868
284 Suncor Energy, Inc. ................. 5,593
138 Transocean Sedco Forex, Inc. ........ 7,325
--------
47,281
--------
FINANCIAL SERVICES -- 8.7%
437 Ace Ltd. ............................ 17,165
118 AMBAC Financial Group, Inc. ......... 9,410
137 Bear Stearns Cos., Inc. (The)........ 8,312
133 Legg Mason, Inc. .................... 6,931
162 MBIA, Inc. .......................... 11,797
116 State Street Corp. .................. 14,407
441 UnionBanCal Corp. ................... 9,269
--------
77,291
--------
FOREST & PAPER PRODUCTS -- 1.5%
608 Abitibi-Consolidated, Inc. .......... 5,322
149 White Electronic Designs Corp. ...... 8,043
--------
13,365
--------
HEALTH SERVICES -- 3.0%
*644 Health Management Associates, Inc.,
Class A............................. 12,759
*40 Human Genome Sciences, Inc. ......... 3,543
*264 Tenet Healthcare Corp. .............. 10,367
--------
26,669
--------
HOTELS & GAMING -- 0.3%
99 Starwood Hotels & Resorts Worldwide,
Inc. ............................... 2,930
--------
MACHINERY -- 2.1%
*347 Grant Prideco, Inc. ................. 6,449
217 Harris Corp. ........................ 6,870
*316 Varco International, Inc. ........... 5,454
--------
18,773
--------
MEDIA & ENTERTAINMENT -- 5.0%
*250 Adelphia Communications Corp., Class
A................................... 8,304
*302 Allegiance Telecom, Inc. ............ 9,494
335 Pegasus Communications Corp., Class
A................................... 11,917
155 Scripps (E.W.) Co. (The), Class A.... 9,058
*154 Univision Communications, Inc., Class
A................................... 5,894
--------
44,667
--------
MEDICAL INSTRUMENTS & SUPPLIES -- 5.6%
479 Becton, Dickinson & Co. ............. 16,047
404 Biomet, Inc. ........................ 14,634
*348 St. Jude Medical, Inc. .............. 19,124
--------
49,805
--------
METALS, MINERALS & MINING -- 2.4%
395 Lockheed Martin Corp. ............... 14,154
180 Vulcan Materials Co. ................ 7,560
--------
21,714
--------
</TABLE>
25
<PAGE> 26
THE HARTFORD MIDCAP FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RESEARCH & TESTING FACILITIES -- 0.5%
*47 Quest Diagnostics, Inc. ............. $ 4,495
--------
RETAIL -- 7.2%
719 Dollar General Corp. ................ 11,143
*243 Dollar Tree Stores, Inc. ............ 9,523
665 Family Dollar Stores, Inc. .......... 12,932
692 Intimate Brands, Inc., Class A....... 16,511
163 RadioShack Corp. .................... 9,743
*90 Starbucks Corp. ..................... 4,035
--------
63,887
--------
RUBBER & PLASTICS PRODUCTS -- 1.7%
*215 Sealed Air Corp. .................... 10,323
*135 Weatherford International, Inc. ..... 4,917
--------
15,240
--------
SOFTWARE & SERVICES -- 12.0%
*226 Affiliated Computer Services, Inc.,
Class A............................. 12,585
*125 Agile Software Corp. ................ 9,429
*440 Cabletron Systems, Inc. ............. 11,940
*169 Cadence Design Systems, Inc. ........ 4,351
*491 Ceridian Corp. ...................... 12,267
*821 Gartner Group, Inc., Class A......... 7,802
*224 HomeStore.com, Inc. ................. 7,613
*245 Intuit, Inc. ........................ 15,071
*132 Macromedia, Inc. .................... 10,157
*178 Rational Software Corp. ............. 10,624
*125 Wind River Systems, Inc. ............ 5,114
--------
106,953
--------
TRANSPORTATION -- 2.4%
*191 Ryanair Holdings PLC, ADR............ 7,712
476 Southwest Airlines Co. .............. 13,570
--------
21,282
--------
UTILITIES -- 1.3%
*144 Calpine Corp. ....................... 11,343
--------
Total common stocks.................. $802,773
========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 9.3%
REPURCHASE AGREEMENT -- 9.3%
$83,283 Joint Repurchase Agreement
(See Note 2(f))
6.551% due 11/01/00................. $ 83,283
--------
Total short-term securities.......... $ 83,283
========
</TABLE>
<TABLE>
MARKET
VALUE
--------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost $724,640 ).... 90.0% $802,773
Total short-term securities (cost
$83,283).............................. 9.3 83,283
----- --------
Total investment in securities (total
cost $807,923)........................ 99.3 886,056
Cash, receivables and other assets...... 1.4 12,941
Security lending collateral............. 10.9 97,392
Payable for securities purchased........ (0.6) (6,021)
Payable for Fund shares redeemed........ (0.1) (733)
Security lending collateral payable to
brokers............................... (10.9) (97,392)
Other liabilities....................... (0.0) (419)
----- --------
Net assets.............................. 100.0% $891,824
===== ========
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 40,114 shares
outstanding.................................. $ 40
Paid-in surplus................................ 742,691
Accumulated undistributed net realized gain on
investments.................................. 70,960
Unrealized appreciation of investments......... 78,133
--------
Net assets..................................... $891,824
========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($425,686 / 18,984
shares outstanding) (125,000 shares
authorized).................................... $22.42
======
Maximum offering price per
share($22.42 / 94.5%).......................... $23.72
======
Class B
Net asset value and maximum offering price per
share ($185,830 / 8,462 shares outstanding)
(75,000 shares authorized)..................... $21.96
======
Class C
Net asset value per share ($217,965 / 9,924
shares outstanding) (50,000 shares
authorized).................................... $21.96
======
Maximum offering price per share
($21.96 / 99.0%)............................... $22.18
======
Class Y
Net asset value and maximum offering price per
share ($62,343 / 2,744 shares outstanding)
(50,000 shares authorized)..................... $22.72
======
</TABLE>
* Non-income producing during the period.
The accompanying notes are an integral part of this financial statement.
26
<PAGE> 27
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- 91.0%
AUSTRALIA -- 1.1%
41 News Corp., Ltd., ADR (Media &
Entertainment)...................... $ 1,776
--------
BELGIUM -- 0.1%
2 RTL Group (Media & Entertainment).... 166
--------
BRAZIL -- 0.1%
5 Empresa Brasileira de Aeronautica
S.A., ADR (Transportation).......... 142
--------
CANADA -- 1.6%
45 Alcan Aluminum Ltd. (Metals, Minerals
& Mining)........................... 1,419
25 Nortel Networks Holdings Corp.
(Communications).................... 1,133
--------
2,552
--------
CHINA -- 0.6%
*49 China Unicom Ltd., ADR (Software &
Services)........................... 1,011
--------
FINLAND -- 1.2%
27 Nokia Oyj (Communications)........... 1,092
32 UPM-Kymmene Group (Forest & Paper
Products)........................... 915
--------
2,007
--------
FRANCE -- 13.3%
16 Air Liquids S.A. (Chemicals)......... 1,941
15 Alcatel (Communications)............. 890
9 Alcatel S.A., ADR (Communications)... 580
53 Aventis S.A. (Chemicals)............. 3,844
7 AXA (Financial Services)............. 972
21 BNP Paribas (Financial Services)..... 1,766
32 Carrefour S.A. (Retail).............. 2,159
8 France Telecom S.A.
(Communications).................... 794
11 L'Oreal (Consumer Non-Durables)...... 839
9 Pechiney S.A., A Shares (Metals,
Minerals & Mining).................. 351
5 Pinault-Printemps-Redoute S.A.
(Retail)............................ 891
*33 Thomson Multimedia (Media &
Entertainment)...................... 1,503
26 Total Fina S.A., B Shares (Energy &
Services)........................... 3,714
22 Vivendi S.A. (Media &
Entertainment)...................... 1,565
--------
21,809
--------
GERMANY -- 4.1%
31 BASF AG (Chemicals).................. 1,193
25 Bayerische Motoren Werke (BMW) AG
(Transportation).................... 825
72 Deutsche Telekom AG
(Communications).................... 2,588
56 RWE AG (Utilities)................... 2,220
--------
6,826
--------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
HONG KONG -- 1.7%
155 Cheung Kong (Holdings) Ltd. (Real
Estate)............................. $ 1,714
126 Sun Hung Kai Properties (Real
Estate)............................. 1,042
--------
2,756
--------
INDIA -- 0.1%
16 ICICI Ltd., ADR (Financial
Services)........................... 151
--------
IRELAND -- 0.2%
38 Allied Irish Banks PLC (Financial
Services)........................... 391
--------
ITALY -- 3.4%
40 Alleanza Assicurazioni (Financial
Services)........................... 533
16 Assicurazioni Generali S.p.A.
(Financial Services)................ 516
26 Banca Fideuram S.p.A. (Financial
Services)........................... 405
70 Mediaset S.p.A. (Media &
Entertainment)...................... 1,006
*296 Telecom Italia Mobile S.p.A.
(Communications).................... 2,512
61 Telecom Italia S.p.A.
(Communications).................... 702
--------
5,674
--------
JAPAN -- 17.0%
6 Advantest Corp. (Electronics)........ 834
83 Asahi Bank Ltd. (Financial
Services)........................... 327
108 Asahi Glass Co., Ltd. (Consumer
Durables)........................... 1,108
72 Dai Nippon Printing Co., Ltd. (Media
& Entertainment).................... 1,128
2 Fast Retailing Co., Inc. (Retail).... 541
4 Fuji Soft ABC, Inc. (Computers &
Office Equipment)................... 263
48 Fujisawa Pharmaceutical Co.
(Drugs)............................. 1,508
20 Hoya Corp. (Medical Instruments &
Supplies)........................... 1,652
17 KAO Corp. (Consumer Non-Durables).... 509
11 Konami Co., Ltd. (Software &
Services)........................... 927
7 Kyocera Corp. (Electronics).......... 858
18 Matsumotokiyoshi Co., Ltd.
(Retail)............................ 1,424
6 Matsushita Communication Industrial
Co., Ltd. (Retail).................. 799
74 Matsushita Electric Industrial Co.,
Ltd. (Electronics).................. 2,148
70 NEC Corp. (Electronics).............. 1,334
193 Nikko Securities Co., Ltd. (Financial
Services)........................... 1,665
2 Nintendo Co., Ltd. (Consumer Non-
Durables)........................... 380
#0 Nippon Telegraph & Telephone Corp.
(Communications).................... 1,128
</TABLE>
27
<PAGE> 28
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
#0 NTT DoCoMo, Inc. (Media &
Entertainment)...................... $ 764
55 Omron Corp. (Electrical Equipment)... 1,355
13 Pioneer Corp. (Media &
Entertainment)...................... 402
22 Promise Co., Ltd. (Financial
Services)........................... 1,680
43 Ricoh Co., Ltd. (Media &
Entertainment)...................... 662
16 Softbank Corp. (Software &
Services)........................... 984
14 Sony Corp. (Media & Entertainment)... 1,142
6 Tokyo Electron Ltd. (Electronics).... 438
114 Tokyo Style Co., Ltd. (Apparel &
Textile)............................ 939
140 Toshiba Corp. (Computers & Office
Equipment).......................... 1,000
2 Uni-Charm Corp. (Consumer Non-
Durables)........................... 103
--------
28,002
--------
NETHERLANDS -- 8.8%
58 Aegon N.V. (Financial Services)...... 2,305
*33 ASM Lithography Holdings
(Electronics)....................... 912
16 Heineken N.V. (Food, Beverage &
Tobacco)............................ 868
30 ING Groep N.V. (Financial
Services)........................... 2,083
62 Koninklijke KPN N.V.
(Communications).................... 1,259
*26 KPNQwest N.V. (Utilities)............ 620
54 Royal Dutch Petroleum Co. (Energy &
Services)........................... 3,211
5 Royal Dutch Petroleum Co., NY Shares
(Energy & Services)................. 297
12 STMicroelectronics (Electronics)..... 600
11 STMicroelectronics, NY Shares
(Electronics)....................... 545
34 Unilever N.V., NY Shares (Consumer
Non-Durables)....................... 1,738
--------
14,438
--------
SOUTH KOREA -- 2.5%
20 Korea Telecom Corp., ADR
(Communications).................... 752
13 Samsung Electronics (Electronics).... 1,667
@10 Samsung Electronics GDR
(Electronics)....................... 730
2 SK Telecom Co., Ltd. (Media &
Entertainment)...................... 335
25 SK Telecom Co., Ltd., ADR (Media &
Entertainment)...................... 622
--------
4,106
--------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
SPAIN -- 4.8%
60 Banco Popular Espanol S.A. (Financial
Services)........................... $ 1,778
203 Banco Santander Central Hispano S.A.
(Financial Services)................ 1,969
88 Endesa S.A. (Utilities).............. 1,434
13 Endesa S.A., ADR (Utilities)......... 222
34 Repsol YPF S.A. (Energy &
Services)........................... 546
33 Telefonica S.A., ADR
(Communications).................... 1,898
--------
7,847
--------
SWEDEN -- 3.3%
88 ForeningsSparbanken AB (Swedbank)
(Financial Services)................ 1,254
263 Skandinaviska Enskilda, A Shares
(Financial Services)................ 3,097
82 Telefonaktiebolaget LM Ericsson AB, B
Shares (Communications)............. 1,086
--------
5,437
--------
SWITZERLAND -- 4.7%
7 Credit Suisse Group (Financial
Services)........................... 1,237
2 Nestle S.A. (Food, Beverage &
Tobacco)............................ 3,909
2 Novartis AG (Drugs).................. 2,593
--------
7,739
--------
TAIWAN -- 0.8%
*42 Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (Electronics)........ 962
*28 United Microelectronics Corp., ADR
(Electronics)....................... 323
--------
1,285
--------
UNITED KINGDOM -- 21.6%
82 Astrazeneca Group PLC (Drugs)........ 3,843
80 Barclays PLC (Financial Services).... 2,300
158 Billiton PLC (Metals, Minerals &
Mining)............................. 604
415 BP Amoco PLC (Energy & Services)..... 3,519
400 British Airways PLC
(Transportation).................... 1,792
*152 Cable & Wireless PLC (Utilities)..... 2,164
*46 COLT Telecom Group PLC
(Communications).................... 1,467
82 III Group PLC (Financial Services)... 1,874
121 Lloyds TSB Group PLC (Financial
Services)........................... 1,236
119 Marconi PLC (Communications)......... 1,506
137 Prudential Corp. PLC (Financial
Services)........................... 1,845
95 Psion PLC GBP (Software &
Services)........................... 570
96 Reed International PLC (Media &
Entertainment)...................... 891
225 Rentokil Initial PLC (Business
Services)........................... 522
</TABLE>
The accompanying notes are an integral part of this financial statement.
28
<PAGE> 29
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UNITED KINGDOM -- (CONTINUED)
65 Royal Bank of Scotland Group
(Financial Services)................ $ 1,462
117 Safeway PLC (Retail)................. 486
356 Smith & Nephew PLC (Medical
Instruments & Supplies)............. 1,488
48 SmithKline Beecham PLC (Drugs)....... 615
24 SmithKline Beecham PLC, ADR, A Shares
(Drugs)............................. 1,565
147 Tesco PLC (Consumer Durables)........ 563
1,096 Vodafone AirTouch PLC
(Communications).................... 4,570
139 Williams PLC (Business Services)..... 663
--------
35,545
--------
Total common stocks (cost
$157,016).......................... $149,660
========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 6.3%
REPURCHASE AGREEMENT -- 6.3%
$10,397 Joint Repurchase Agreement (See Note
2(f)) 6.551% due 11/01/00........... $ 10,397
--------
Total short-term securities (cost
$10,397)........................... $ 10,397
========
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment in securities, at value (total cost
$167,413) -- see accompanying portfolio...... $160,057
Receivable for securities sold................. 6,437
Receivable for Fund shares sold................ 1,792
Receivable for dividends and interest.......... 524
Security lending collateral.................... 11,459
Cash and other assets.......................... 549
--------
Total assets................................... 180,818
--------
LIABILITIES
Payable for securities purchased............... 4,576
Payable for Fund shares sold................... 196
Security lending collateral payable to
brokers...................................... 11,459
Other liabilities.............................. 40
--------
Total liabilities.............................. 16,271
--------
Net assets..................................... $164,547
========
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 12,710 shares
outstanding.................................. $ 13
Paid-in surplus................................ 165,892
Distribution in excess of net investment
income....................................... (51)
Accumulated undistributed net realized gain on
investments.................................. 6,099
Unrealized depreciation of investments......... (7,356)
Unrealized appreciation of forward foreign
currency contracts (See Note 2(h))+.......... 3
Unrealized depreciation of other assets and
liabilities in foreign currencies............ (53)
--------
Net assets..................................... $164,547
========
Class A
Net asset value per share ($89,309 / 6,854
shares outstanding) (125,000 shares
authorized)................................ $ 13.03
========
Maximum offering price per share ($13.03 /
94.5%)..................................... $ 13.79
========
Class B
Net asset value and maximum offering price
per share ($25,872 / 2,031 shares
outstanding) (75,000 shares authorized).... $ 12.74
========
Class C
Net asset value per share ($26,912 / 2,123
shares outstanding)(50,000 shares
authorized)................................ $ 12.68
========
Maximum offering price per share ($12.68 /
99.0%)..................................... $ 12.81
========
Class Y
Net asset value and maximum offering price
per share ($22,454 / 1,702 shares
outstanding) (50,000 shares authorized).... $ 13.19
========
</TABLE>
29
<PAGE> 30
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Apparel & Textile........................ 0.6% $ 939
Business Services........................ 0.7 1,185
Chemicals................................ 4.2 6,978
Communications........................... 14.6 23,957
Computers & Office Equipment............. 0.8 1,263
Consumer Durables........................ 1.0 1,671
Consumer Non-Durables.................... 2.2 3,569
Drugs.................................... 6.2 10,124
Electrical Equipment..................... 0.8 1,355
Electronics.............................. 6.9 11,351
Energy & Services........................ 6.9 11,287
Financial Services....................... 18.7 30,846
Food, Beverage & Tobacco................. 2.9 4,777
Forest & Paper Products.................. 0.6 915
Media & Entertainment.................... 7.3 11,962
Medical Instruments & Supplies........... 1.9 3,140
Metals, Minerals & Mining................ 1.4 2,374
Real Estate.............................. 1.7 2,756
Retail................................... 3.8 6,300
Software & Services...................... 2.1 3,492
Transportation........................... 1.7 2,759
Utilities................................ 4.0 6,660
---- --------
Total common stocks............. 91.0% $149,660
==== ========
</TABLE>
* Non-income producing during the period.
@ Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. As of October 31, 2000, the market
value of these securities amounted to $730 or 0.4% of net assets.
# Due to the presentation of the financial statements in thousands, the number
of shares round to zero.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
-------------------------------------- ------------ ---------- ------------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) 151 149 11/01/00 $ 2
British Pounds (Buy) 351 347 11/02/00 4
British Pounds (Buy) 343 342 11/07/00 1
British Pounds (Sell) 425 425 11/03/00 --
Canadian Dollars (Sell) 150 150 11/03/00 --
EURO (Buy) 140 139 11/01/00 1
EURO (Sell) 475 472 11/02/00 (3)
EURO (Sell) 676 677 11/03/00 1
EURO (Sell) 1,430 1,433 11/06/00 3
EURO (Sell) 16 16 11/15/00 --
Japanese Yen (Buy) 699 703 11/01/00 (4)
Japanese Yen (Sell) 28 29 11/01/00 1
Japanese Yen (Sell) 346 346 11/02/00 --
Japanese Yen (Sell) 643 643 11/06/00 --
Swiss Franc (Sell) 369 367 11/01/00 (2)
Swiss Franc (Sell) 196 195 11/02/00 (1)
------
$ 3
======
</TABLE>
The accompanying notes are an integral part of this financial statement.
30
<PAGE> 31
THE HARTFORD GLOBAL LEADERS FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- 92.2%
AUSTRALIA -- 1.1%
119 News Corp., Ltd., ADR (Media &
Entertainment)...................... $ 5,100
--------
FINLAND -- 0.3%
34 Nokia Oyj (Communications)........... 1,401
--------
FRANCE -- 9.4%
19 Air Liquide S.A. (Chemicals)......... 2,279
125 Aventis S.A. (Chemicals)............. 8,999
35 AXA (Financial Services)............. 4,575
108 Carrefour S.A. (Retail).............. 7,248
24 Pinault-Printemps-Redoute S.A.
(Retail)............................ 4,189
130 Thomson CSF (Electronics)............ 5,846
*103 Thomson Multimedia (Media &
Entertainment)...................... 4,735
28 Total Fina S.A., B Shares (Energy &
Services)........................... 3,992
52 Vivendi S.A. (Media &
Entertainment)...................... 3,697
--------
45,560
--------
GERMANY -- 2.6%
141 Bayerische Motoren Werke (BMW) AG
(Transportation).................... 4,712
180 Deutsche Telekom AG
(Communications).................... 6,466
12 Siemens AG (Electronics)............. 1,529
--------
12,707
--------
ITALY -- 2.4%
213 Mediaset S.p.A. (Media &
Entertainment)...................... 3,073
155 San Paolo -- IMI S.p.A. (Financial
Services)........................... 2,511
*704 Telecom Italia Mobile S.p.A.
(Communications).................... 5,983
--------
11,567
--------
JAPAN -- 4.8%
44 Konami Co., Ltd. (Software &
Services)........................... 3,741
215 Matsushita Electric Industrial Co.,
Ltd. (Electronics).................. 6,242
#0 NTT DoCoMo, Inc. (Media &
Entertainment)...................... 2,587
33 Promise Co., Ltd. (Financial
Services)........................... 2,483
86 Softbank Corp. (Software &
Services)........................... 5,171
35 Sony Corp. (Media & Entertainment)... 2,795
--------
23,019
--------
NETHERLANDS -- 3.9%
69 ING Groep N.V. (Financial
Services)........................... 4,733
135 Royal Dutch Petroleum Co. (Energy &
Services)........................... 7,986
118 Unilever N.V., NY Shares (Consumer
Non-Durables)....................... 5,970
--------
18,689
--------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
SPAIN -- 2.2%
192 Banco Popular Espanol S.A. (Financial
Services)........................... $ 5,731
496 Banco Santander Central Hispano S.A.
(Financial Services)................ 4,805
--------
10,536
--------
SWEDEN -- 1.3%
538 Skandinaviska Enskilda, A Shares
(Financial Services)................ 6,340
--------
SWITZERLAND -- 2.4%
6 Nestle S.A. (Food, Beverage &
Tobacco)............................ 11,415
--------
UNITED KINGDOM -- 15.2%
232 Astrazeneca Group PLC (Drugs)........ 10,926
236 Barclays PLC (Financial Services).... 6,757
802 BP Amoco PLC (Energy & Services)..... 6,810
1,135 British Airways PLC
(Transportation).................... 5,082
*444 Cable & Wireless PLC (Utilities)..... 6,303
*184 COLT Telecom Group PLC
(Communications).................... 5,863
174 III Group PLC (Financial Services)... 3,954
274 Lloyds TSB Group PLC (Financial
Services)........................... 2,793
336 Marconi PLC (Communications)......... 4,244
511 Psion PLC GBP (Software &
Services)........................... 3,069
614 Reed International PLC (Media &
Entertainment)...................... 5,672
425 SmithKline Beecham PLC (Drugs)....... 5,493
1,646 Vodafone AirTouch PLC
(Communications).................... 6,864
--------
73,830
--------
UNITED STATES OF AMERICA -- 46.7%
185 Ace Ltd. (Financial Services)........ 7,265
*106 Akamai Technologies, Inc. (Software &
Services)........................... 5,401
182 Alcoa, Inc. (Metals, Minerals &
Mining)............................. 5,221
*158 America Online, Inc. (Software &
Services)........................... 7,953
127 American Home Products Corp.
(Drugs)............................. 8,065
76 American International Group, Inc.
(Financial Services)................ 7,428
*26 Applied Micro Circuits Corp.
(Electronics)....................... 1,948
*29 Ariba, Inc. (Software & Services).... 3,627
88 Automatic Data Processing, Inc.
(Software & Services)............... 5,774
63 Bank One Corp. (Financial
Services)........................... 2,292
63 Baxter International, Inc. (Medical
Instruments & Supplies)............. 5,211
37 Cardinal Health, Inc. (Consumer Non-
Durables)........................... 3,468
*33 Cisco Systems, Inc. (Computers &
Office Equipment)................... 1,771
</TABLE>
31
<PAGE> 32
THE HARTFORD GLOBAL LEADERS FUND
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UNITED STATES OF
AMERICA -- (CONTINUED)
156 Citigroup, Inc. (Financial
Services)........................... $ 8,217
*101 Dell Computer Corp. (Computers &
Office Equipment)................... 2,988
39 Emerson Electric Co. (Electronics)... 2,893
57 Enron Corp. (Energy & Services)...... 4,686
80 Ensco International, Inc. (Energy &
Services)........................... 2,660
164 Exxon Mobil Corp. (Energy &
Services)........................... 14,582
*63 FedEx Corp. (Transportation)......... 2,947
153 General Electric Co. (Electronics)... 8,372
70 Goldman Sachs Group, Inc. (The)
(Financial Services)................ 6,947
*97 Intuit, Inc. (Software & Services)... 5,959
139 Limited, Inc. (The) (Retail)......... 3,520
25 Marsh & McLennan Cos., Inc.
(Financial Services)................ 3,282
*184 Micron Technology, Inc.
(Electronics)....................... 6,404
*84 Microsoft Corp. (Software &
Services)........................... 5,792
*73 Nabors Industries, Inc. (Energy &
Services)........................... 3,726
*140 Noble Drilling Corp. (Energy &
Services)........................... 5,823
*86 Palm, Inc. (Computers & Office
Equipment).......................... 4,617
135 PepsiCo, Inc. (Food, Beverage &
Tobacco)............................ 6,520
137 Pharmacia Corp. (Chemicals).......... 7,559
127 Philip Morris Co., Inc. (Food,
Beverage & Tobacco)................. 4,644
37 State Street Corp. (Financial
Services)........................... 4,653
*14 Sun Microsystems, Inc. (Software &
Services)........................... 1,530
147 Texas Instruments, Inc.
(Electronics)....................... 7,202
117 Transocean Sedco Forex, Inc. (Energy
& Services)......................... 6,217
121 Unocal Corp. (Energy & Services)..... 4,133
*34 Viacom, Inc., Class A (Media &
Entertainment)...................... 1,941
*120 Vignette Corp. (Software &
Services)........................... 3,589
159 Walt Disney Co. (The) (Media &
Entertainment)...................... 5,701
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
UNITED STATES OF
AMERICA -- (CONTINUED)
491 Waste Management, Inc. (Utilities)... $ 9,810
*159 Worldcom, Inc. (Communications)...... 3,773
--------
226,111
--------
Total common stocks (cost
$446,338)........................... $446,275
========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 6.4%
REPURCHASE AGREEMENT -- 6.4%
$31,088 Joint Repurchase Agreement (See Note
2(f))
6.551% due 11/01/00................. $ 31,088
--------
Total short-term securities (cost
$31,088)........................... $ 31,088
========
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment in securities, at value (total cost
$477,426) -- see accompanying portfolio...... $477,363
Receivable for securities sold................. 43,031
Receivable for Fund shares sold................ 5,706
Receivable for dividends and interest.......... 661
Security lending collateral.................... 35,342
Cash and other assets.......................... 8
--------
Total assets................................... 562,111
--------
LIABILITIES
Payable for securities purchased............... 41,373
Payable for Fund shares redeemed............... 891
Security lending collateral payable to
brokers...................................... 35,342
Other liabilities.............................. 294
--------
Total liabilities.............................. 77,900
--------
Net assets..................................... $484,211
========
</TABLE>
The accompanying notes are an integral part of this financial statement.
32
<PAGE> 33
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
--------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 27,767 shares
outstanding.................................. $ 28
Paid-in surplus................................ 488,761
Distribution in excess of net investment
income....................................... (109)
Accumulated net realized loss on investments... (4,394)
Unrealized depreciation of investments......... (63)
Unrealized appreciation of forward foreign
currency contracts (See Note 2(h))+.......... 14
Unrealized depreciation of other assets and
liabilities in foreign currencies............ (26)
--------
Net assets..................................... $484,211
========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($255,957 / 14,583
shares outstanding) (125,000 shares
authorized).................................... $17.55
======
Maximum offering price per share
($17.55 / 94.5%)............................... $18.57
======
Class B
Net asset value and maximum offering price per
share ($75,702 / 4,378 shares outstanding)
(75,000 shares authorized)..................... $17.29
======
Class C
Net asset value per share ($142,549 / 8,242
shares outstanding) (50,000 shares
authorized).................................... $17.30
======
Maximum offering price per share
($17.30 / 99.0%)............................... $17.47
======
Class Y
Net asset value and maximum offering price per
share ($10,003 / 564 shares outstanding)
(50,000 shares authorized)..................... $17.73
======
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Chemicals................................ 3.9% $ 18,837
Communications........................... 7.1 34,594
Computers & Office Equipment............. 1.9 9,376
Consumer Non-Durables.................... 1.9 9,438
Drugs.................................... 5.1 24,484
Electronics.............................. 8.4 40,436
Energy & Services........................ 12.5 60,615
Financial Services....................... 17.5 84,766
Food, Beverage & Tobacco................. 4.7 22,579
Media & Entertainment.................... 7.3 35,301
Medical Instruments & Supplies........... 1.1 5,211
Metals, Minerals & Mining................ 1.1 5,221
Retail................................... 3.1 14,957
Software & Services...................... 10.7 51,606
Transportation........................... 2.6 12,741
Utilities................................ 3.3 16,113
---- --------
Total common stocks............. 92.2% $446,275
==== ========
</TABLE>
* Non-incoming producing during the period.
# Due to the presentation of the financial statements in thousands, the number
of shares round to zero.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
----------------------------------------- ------------ ---------- -------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $ 662 $ 654 11/01/00 $ 8
British Pounds (Buy) 1,540 1,522 11/02/00 18
British Pounds (Buy) 3,792 3,795 11/03/00 (3)
British Pounds (Buy) 2,237 2,235 11/07/00 2
EURO (Buy) 488 484 11/01/00 4
EURO (Sell) 2,169 2,151 11/02/00 (18)
EURO (Sell) 1,760 1,763 11/03/00 3
Japanese Yen (Sell) 1,910 1,910 11/06/00 --
-------
$ 14
=======
</TABLE>
33
<PAGE> 34
THE HARTFORD STOCK FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS -- 94.4%
AEROSPACE & DEFENSE -- 2.3%
*543 General Motors, Class H............ $ 17,603
475 United Technologies Corp. ......... 33,168
----------
50,771
----------
CHEMICALS -- 2.3%
600 Dow Chemical Co. (The)............. 18,375
566 Pharmacia Corp. ................... 31,119
----------
49,494
----------
COMMUNICATIONS -- 8.1%
*52 Avaya, Inc. ....................... 698
*617 Global Crossing Ltd. .............. 14,581
623 Lucent Technologies, Inc. ......... 14,521
580 Nortel Networks Holdings Corp. .... 26,390
763 SBC Communications Corp. .......... 44,010
*424 Tellabs, Inc. ..................... 21,169
466 Verizon Communications, Inc. ...... 26,946
*1,180 Worldcom, Inc. .................... 28,031
----------
176,346
----------
COMPUTERS & OFFICE EQUIPMENT -- 9.9%
*1,287 Cisco Systems, Inc. ............... 69,326
*750 Dell Computer Corp. ............... 22,125
*394 EMC Corp. ......................... 35,126
360 Hewlett-Packard Co. ............... 16,718
327 International Business Machines
Corp. ............................ 32,219
200 Minnesota Mining & Manufacturing
Co. .............................. 19,325
*469 Solectron Corp. ................... 20,627
----------
215,466
----------
CONSUMER NON-DURABLES -- 4.1%
343 Cardinal Health, Inc. ............. 32,537
150 Gillette Co. (The)................. 5,231
462 Procter & Gamble Co. (The)......... 33,004
330 Tyco International Ltd. ........... 18,707
----------
89,479
----------
DRUGS -- 9.9%
500 Abbott Laboratories................ 26,422
710 American Home Products Corp. ...... 45,085
400 Bristol-Myers Squibb Co. .......... 24,375
150 Eli Lilly & Co. ................... 13,406
543 Merck & Co., Inc. ................. 48,818
880 Pfizer, Inc. ...................... 38,001
350 Schering-Plough Corp. ............. 18,091
----------
214,198
----------
ELECTRICAL EQUIPMENT -- 0.8%
*536 Teradyne, Inc. .................... 16,741
----------
ELECTRONICS -- 8.5%
150 Emerson Electric Co. .............. 11,016
1,130 General Electric Co. .............. 61,922
1,133 Intel Corp. ....................... 50,985
*230 JDS Uniphase Corp. ................ 18,716
*440 Micron Technology, Inc. ........... 15,283
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
ELECTRONICS -- (CONTINUED)
309 Texas Instruments, Inc. ........... $ 15,141
*170 Vitesse Semiconductor Corp. ....... 11,889
----------
184,952
----------
ENERGY & SERVICES -- 6.3%
400 Conoco, Inc., Class B.............. 10,875
755 Exxon Mobil Corp. ................. 67,319
260 Schlumberger Ltd. ................. 19,770
560 Texaco, Inc. ...................... 33,045
50 Transocean Sedco Forex, Inc. ...... 2,650
100 Unocal Corp. ...................... 3,413
----------
137,072
----------
FINANCIAL SERVICES -- 14.8%
421 American International Group,
Inc. ............................. 41,224
961 Associates First Capital Corp.,
Class A........................... 35,688
100 Chase Manhattan Corp. (The)........ 4,550
797 Citigroup, Inc. ................... 41,931
560 Fleet Boston Financial Corp. ...... 21,280
569 Franklin Resources, Inc. .......... 24,355
115 Goldman Sachs Group, Inc. (The).... 11,498
450 Marsh & McLennan Cos., Inc. ....... 58,864
343 Merrill Lynch & Co., Inc. ......... 23,996
210 Morgan Stanley Dean Witter &
Co. .............................. 16,866
331 State Street Corp. ................ 41,264
----------
321,516
----------
FOOD, BEVERAGE & TOBACCO -- 3.2%
540 Coca-Cola Co. (The)................ 32,603
764 PepsiCo, Inc. ..................... 37,026
----------
69,629
----------
FOREST & PAPER PRODUCTS -- 1.9%
630 Kimberly-Clark Corp. .............. 41,580
----------
MEDIA & ENTERTAINMENT -- 3.6%
*1,400 AT&T -- Liberty Media Group, Class
A................................. 25,200
670 Gannett Co., Inc. ................. 38,860
*232 Viacom, Inc., Class B.............. 13,220
----------
77,280
----------
MEDICAL INSTRUMENTS & SUPPLIES -- 1.7%
159 Baxter International, Inc. ........ 13,101
250 Johnson & Johnson Co. ............. 23,031
----------
36,132
----------
METALS, MINERALS & MINING -- 0.8%
300 Illinois Tool Works, Inc. ......... 16,669
----------
RETAIL -- 7.6%
498 CVS Corp. ......................... 26,342
600 Home Depot, Inc. (The)............. 25,800
1,410 McDonald's Corp. .................. 43,710
*566 Safeway, Inc. ..................... 30,948
847 Wal-Mart Stores, Inc. ............. 38,446
----------
165,246
----------
</TABLE>
The accompanying notes are an integral part of this financial statement.
34
<PAGE> 35
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
SOFTWARE & SERVICES -- 6.6%
*626 America Online, Inc. .............. $ 31,569
300 Automatic Data Processing, Inc. ... 19,594
*147 Computer Sciences Corp. ........... 9,230
*1,194 Microsoft Corp. ................... 82,264
----------
142,657
----------
TRANSPORTATION -- 1.1%
232 Boeing Co. (The)................... 15,705
150 Honeywell International, Inc. ..... 8,072
----------
23,777
----------
UTILITIES -- 0.9%
300 FPL Group, Inc. ................... 19,800
----------
Total common stocks................ $2,048,805
==========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 6.1%
REPURCHASE AGREEMENT -- 6.1%
$132,889 Joint Repurchase Agreement
(See Note 2(f))
6.551% due 11/01/00............... $ 132,889
----------
Total short-term securities........ $ 132,889
==========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$1,924,698)......................... 94.4% $2,048,805
Total short-term securities (cost
$132,889)........................... 6.1 132,889
----- ----------
Total investment in securities (total
cost $2,057,587).................... 100.5 2,181,694
Cash, receivables and other assets.... 0.7 14,259
Security lending collateral........... 5.0 109,634
Payable for securities purchased...... (1.0) (22,082)
Payable for Fund shares redeemed...... (0.1) (1,757)
Security lending collateral payable to
brokers............................. (5.0) (109,634)
Other liabilities..................... (0.1) (623)
----- ----------
Net assets............................ 100.0% $2,171,491
===== ==========
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
----------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 94,205 shares
outstanding................................. $ 94
Paid-in surplus............................... 1,945,221
Accumulated undistributed net realized gain on
investments................................. 102,069
Unrealized appreciation of investments........ 124,107
----------
Net assets.................................... $2,171,491
==========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($1,067,970 / 45,636
shares outstanding) (125,000 shares
authorized).................................... $23.40
======
Maximum offering price per share
($23.40 / 94.5%)............................... $24.76
======
Class B
Net asset value and maximum offering price per
share ($578,402 / 25,488 shares outstanding)
(75,000 shares authorized)..................... $22.69
======
Class C
Net asset value per share ($492,996 / 21,734
shares outstanding) (50,000 shares
authorized).................................... $22.68
======
Maximum offering price per share
($22.68 / 99.0%)............................... $22.91
======
Class Y
Net asset value and maximum offering price per
share ($32,123 / 1,347 shares outstanding)
(50,000 shares authorized)..................... $23.85
======
</TABLE>
* Non-income producing during the period.
35
<PAGE> 36
THE HARTFORD GROWTH AND INCOME FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- 97.4%
AEROSPACE & DEFENSE -- 1.9%
*33 General Motors, Class H.............. $ 1,065
68 United Technologies Corp. ........... 4,740
--------
5,805
--------
CHEMICALS -- 2.1%
24 du Pont (E.I.) de Nemours & Co. ..... 1,080
94 Pharmacia Corp. ..................... 5,156
--------
6,236
--------
COMMUNICATIONS -- 8.6%
#0 Avaya, Inc. ......................... 0
*20 Echostar Communications Corp.,
Class A............................. 891
*44 Exodus Communications, Inc. ......... 1,490
*49 Global Crossing Ltd. ................ 1,155
46 Lucent Technologies, Inc. ........... 1,079
57 Nortel Networks Holdings Corp. ...... 2,612
*56 Qwest Communications
International ...................... 2,718
48 SBC Communications Corp. ............ 2,746
*33 Sonus Networks, Inc. ................ 1,128
30 Sprint Corp. ........................ 765
*38 Tekelec.............................. 1,410
95 Verizon Communications, Inc. ........ 5,492
*10 VoiceStream Wireless Corp. .......... 1,328
*135 Worldcom, Inc. ...................... 3,195
--------
26,009
--------
COMPUTERS & OFFICE EQUIPMENT -- 10.0%
*199 Cisco Systems, Inc. ................. 10,737
*121 Dell Computer Corp. ................. 3,555
*42 EMC Corp. ........................... 3,723
85 Hewlett-Packard Co. ................. 3,966
63 International Business Machines
Corp. .............................. 6,225
*44 Solectron Corp. ..................... 1,936
--------
30,142
--------
CONSUMER DURABLES -- 0.4%
16 Corning, Inc. ....................... 1,193
--------
CONSUMER NON-DURABLES -- 2.0%
16 Procter & Gamble Co. (The)........... 1,150
87 Tyco International Ltd. ............. 4,943
--------
6,093
--------
DRUGS -- 8.4%
98 Abbott Laboratories.................. 5,176
49 American Home Products Corp. ........ 3,118
35 Eli Lilly & Co. ..................... 3,155
*14 Forest Laboratories, Inc. ........... 1,802
*53 Genzyme Corp. ....................... 3,791
65 Merck & Co., Inc. ................... 5,810
62 Pfizer, Inc. ........................ 2,659
--------
25,511
--------
ELECTRICAL EQUIPMENT -- 0.6%
*61 Teradyne, Inc. ...................... 1,903
--------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
ELECTRONICS -- 9.5%
*55 Altera Corp. ........................ $ 2,243
*16 Analog Devices, Inc. ................ 1,034
*12 Applied Micro Circuits Corp. ........ 901
13 Eaton Corp. ......................... 878
206 General Electric Co. ................ 11,308
151 Intel Corp. ......................... 6,782
*34 JDS Uniphase Corp. .................. 2,775
*51 Micron Technology, Inc. ............. 1,758
*12 Novellus Systems, Inc. .............. 495
9 Texas Instruments, Inc. ............. 456
--------
28,630
--------
ENERGY & SERVICES -- 6.5%
32 Anadarko Petroleum Corp. ............ 2,074
23 Chevron Corp. ....................... 1,856
102 Conoco, Inc., Class B................ 2,762
11 Enron Corp. ......................... 903
91 Exxon Mobil Corp. ................... 8,134
40 Helmerich & Payne, Inc. ............. 1,258
*51 Rowan Companies, Inc. ............... 1,292
16 Texaco, Inc. ........................ 963
12 Unocal Corp. ........................ 416
--------
19,658
--------
FINANCIAL SERVICES -- 15.2%
25 AMBAC Financial Group, Inc. ......... 2,011
44 American International Group,
Inc. ............................... 4,306
28 CIGNA Corp. ......................... 3,366
138 Citigroup, Inc. ..................... 7,252
36 Fannie Mae........................... 2,741
36 Freddie Mac.......................... 2,148
18 Goldman Sachs Group, Inc. (The)...... 1,837
122 KeyCorp.............................. 3,022
26 Marsh & McLennan Cos., Inc. ......... 3,400
51 Merrill Lynch & Co., Inc. ........... 3,542
37 Morgan Stanley Dean Witter & Co. .... 2,980
154 Pacific Century Financial Corp. ..... 1,953
121 UnionBanCal Corp. ................... 2,533
48 Wachovia Corp. ...................... 2,614
50 Washington Mutual, Inc. ............. 2,204
--------
45,909
--------
FOOD, BEVERAGE & TOBACCO -- 3.1%
12 Coca-Cola Co. (The).................. 749
6 Keebler Foods Co. ................... 239
103 PepsiCo, Inc. ....................... 4,970
93 Philip Morris Co., Inc. ............. 3,402
--------
9,360
--------
FOREST & PAPER PRODUCTS -- 1.7%
61 Kimberly-Clark Corp. ................ 4,026
22 Temple-Inland, Inc. ................. 1,002
--------
5,028
--------
HEALTH SERVICES -- 0.5%
*36 Tenet Healthcare Corp. .............. 1,427
--------
</TABLE>
The accompanying notes are an integral part of this financial statement.
36
<PAGE> 37
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MACHINERY -- 1.3%
*30 Applied Materials, Inc. ............. $ 1,588
19 Black & Decker Corp. ................ 730
72 Pall Corp. .......................... 1,553
--------
3,871
--------
MEDIA & ENTERTAINMENT -- 2.4%
*171 AT&T -- Liberty Media Group,
Class A............................. 3,069
45 Gannett Co., Inc. ................... 2,610
43 Walt Disney Co. (The)................ 1,551
--------
7,230
--------
MEDICAL INSTRUMENTS & SUPPLIES --1.1%
71 Becton, Dickinson & Co. ............. 2,389
10 Johnson & Johnson Co. ............... 912
--------
3,301
--------
METALS, MINERALS & MINING -- 1.4%
24 Alcoa, Inc. ......................... 683
76 Engelhard Corp. ..................... 1,578
133 Freeport-McMoRan Copper & Gold, Inc.,
Class A............................. 1,032
16 Illinois Tool Works, Inc. ........... 883
--------
4,176
--------
RETAIL -- 4.2%
*18 Best Buy Co., Inc. .................. 898
33 Dollar General Corp. ................ 516
16 Home Depot, Inc. (The)............... 705
*60 Kroger Co. (The)..................... 1,354
*44 Safeway, Inc. ....................... 2,395
63 Target Corp. ........................ 1,743
111 Wal-Mart Stores, Inc. ............... 5,014
--------
12,625
--------
SOFTWARE & SERVICES -- 10.2%
*82 America Online, Inc. ................ 4,130
*19 BMC Software, Inc. .................. 384
42 First Data Corp. .................... 2,085
98 IMS Health, Inc. .................... 2,322
*178 Microsoft Corp. ..................... 12,225
*88 Oracle Corp. ........................ 2,901
*20 Rational Software Corp. ............. 1,212
*31 Sun Microsystems, Inc. .............. 3,448
*17 VeriSign, Inc. ...................... 2,191
--------
30,898
--------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
TRANSPORTATION -- 3.1%
51 Boeing Co. (The)..................... $ 3,438
81 Ford Motor Co. ...................... 2,119
47 Honeywell International, Inc. ....... 2,524
50 USFreightways Corp. ................. 1,285
--------
9,366
--------
UTILITIES -- 3.4%
*29 Calpine Corp. ....................... 2,297
37 El Paso Energy Corp. ................ 2,326
67 Exelon Corp. ........................ 4,053
36 Pinnacle West Capital Corp. ......... 1,559
--------
10,235
--------
Total common stocks.................. $294,606
========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
SHORT-TERM SECURITIES -- 1.8%
REPURCHASE AGREEMENT -- 1.8%
$5,487 Joint Repurchase Agreement (See Note
2(f)) 6.551% due 11/01/00........... $5,487...
--------
Total short-term securities.......... $ 5,487
========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost $292,731)..... 97.4% $294,606
Total short-term securities (cost
$5,487)............................... 1.8 5,487
----- --------
Total investment in securities (total
cost $298,218)........................ 99.2 300,093
Cash, receivables and other assets...... 1.1 3,036
Security lending collateral............. 7.2 21,690
Payable for securities purchased........ (0.1) (353)
Payable for Fund shares redeemed........ (0.1) (170)
Security lending collateral payable to
brokers............................... (7.2) (21,690)
Other liabilities....................... (0.1) (164)
----- --------
Net assets.............................. 100.0% $302,442
===== ========
</TABLE>
37
<PAGE> 38
THE HARTFORD GROWTH AND INCOME FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
--------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 22,322 shares
outstanding.................................. $ 22
Paid-in surplus................................ 289,436
Distribution in excess of net investment
income....................................... (138)
Accumulated undistributed net realized gain on
investments.................................. 11,074
Unrealized appreciation of investments......... 1,875
Unrealized appreciation of futures contracts
++........................................... 173
--------
Net assets..................................... $302,442
========
Class A
Net asset value per share ($197,176 / 14,470
shares outstanding) (125,000 shares
authorized)................................ $13.63
------
------
Maximum offering price per share
($13.63 / 94.5%)........................... $14.42
------
------
Class B
Net asset value and maximum offering price
per share ($41,126 / 3,069 shares
outstanding) (75,000 shares authorized).... $13.40
------
------
Class C
Net asset value per share ($63,650 / 4,747
shares outstanding) (50,000 shares
authorized)................................ $13.41
------
------
Maximum offering price per share
($13.41 / 99.0%)........................... $13.55
------
------
Class Y
Net asset value and maximum offering price
per share ($490 / 36 shares outstanding)
(50,000 shares authorized)................. $13.78
------
------
</TABLE>
* Non-income producing during the period.
++ The Fund had 15 Standard & Poor's 500 December 2000 Futures contracts open as
of October 31, 2000. These contracts had a value of $5,401 as of October 31,
2000 and were collateralized by $281 of cash.
# Due to the presentation of the financial statements in thousands, the number
of shares and market value round to zero.
The accompanying notes are an integral part of this financial statement.
38
<PAGE> 39
THE HARTFORD DIVIDEND AND GROWTH FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- 95.0%
AEROSPACE & DEFENSE -- 3.1%
221 United Technologies Corp. ........... $ 15,401
--------
CHEMICALS -- 3.6%
23 Akzo Nobel N.V., ADR................. 1,053
14 Avery Dennison Corp. ................ 697
68 du Pont (E.I.) de Nemours & Co. ..... 3,075
15 Eastman Chemical Co. ................ 660
205 Pharmacia Corp. ..................... 11,257
46 Rohm & Haas Co. ..................... 1,377
--------
18,119
--------
COMMUNICATIONS -- 9.2%
186 AT&T Corp. .......................... 4,314
68 Broadwing, Inc. ..................... 1,913
52 Lucent Technologies, Inc. ........... 1,201
92 Nortel Networks Holdings Corp. ...... 4,168
*129 Qwest Communications International... 6,295
140 SBC Communications Corp. ............ 8,085
347 Verizon Communications, Inc. ........ 20,069
--------
46,045
--------
COMPUTERS & OFFICE EQUIPMENT -- 2.3%
49 Compaq Computer Corp. ............... 1,487
56 Hewlett-Packard Co. ................. 2,610
48 International Business Machines
Corp. .............................. 4,738
27 Minnesota Mining & Manufacturing
Co. ................................ 2,648
--------
11,483
--------
CONSUMER DURABLES -- 0.5%
30 Corning, Inc. ....................... 2,303
--------
CONSUMER NON-DURABLES -- 3.1%
48 Clorox Co. (The)..................... 2,142
32 Eastman Kodak Co. ................... 1,423
94 McKesson HBOC, Inc. ................. 2,629
131 Procter & Gamble Co. (The)........... 9,323
--------
15,517
--------
DRUGS -- 6.7%
80 Abbott Laboratories.................. 4,225
104 American Home Products Corp. ........ 6,572
140 AstraZeneca Group PLC, ADR........... 6,662
57 Bristol-Myers Squibb Co. ............ 3,492
56 Eli Lilly & Co. ..................... 5,014
85 Merck & Co., Inc. ................... 7,600
--------
33,565
--------
ELECTRONICS -- 4.8%
41 Eaton Corp. ......................... 2,797
337 General Electric Co. ................ 18,494
58 Intel Corp. ......................... 2,628
--------
23,919
--------
ENERGY & SERVICES -- 9.6%
143 Ashland, Inc. ....................... 4,683
61 Chevron Corp. ....................... 5,001
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
ENERGY & SERVICES -- (CONTINUED)
127 Conoco, Inc., Class B................ $ 3,445
59 Enron Corp. ......................... 4,858
89 Exxon Mobil Corp. ................... 7,979
294 Repsol YPF S.A., ADR................. 4,687
419 Suncor Energy, Inc. ................. 8,253
9 Texaco, Inc. ........................ 514
249 Unocal Corp. ........................ 8,494
--------
47,914
--------
FINANCIAL SERVICES -- 19.6%
30 Bear Stearns Cos., Inc. (The)........ 1,819
56 CIGNA Corp. ......................... 6,793
301 Citigroup, Inc. ..................... 15,845
103 Fannie Mae........................... 7,916
93 Marsh & McLennan Cos., Inc. ......... 12,186
55 MBIA, Inc. .......................... 4,020
89 Merrill Lynch & Co., Inc. ........... 6,195
61 Morgan Stanley Dean Witter & Co. .... 4,859
207 Pacific Century Financial Corp. ..... 2,621
218 People's Bank........................ 4,417
386 U.S. Bancorp......................... 9,344
77 UnionBanCal Corp. ................... 1,613
154 Wachovia Corp. ...................... 8,289
184 Washington Mutual, Inc. ............. 8,109
53 XL Capital Ltd., Class A............. 4,058
--------
98,084
--------
FOOD, BEVERAGE & TOBACCO -- 7.2%
263 McCormick & Co., Inc. ............... 8,334
125 PepsiCo, Inc. ....................... 6,069
185 Philip Morris Co., Inc. ............. 6,768
71 Reynolds (R.J.) Tobacco Holdings,
Inc. ............................... 2,528
506 Sara Lee Corp. ...................... 10,906
48 UST, Inc. ........................... 1,207
--------
35,812
--------
FOREST & PAPER PRODUCTS -- 2.9%
120 Abitibi-Consolidated, Inc. .......... 1,047
112 Kimberly-Clark Corp. ................ 7,372
50 Temple-Inland, Inc. ................. 2,220
53 Weyerhaeuser Co. .................... 2,488
22 White Electronic Designs Corp. ...... 1,175
--------
14,302
--------
MACHINERY -- 0.4%
52 Caterpillar, Inc. ................... 1,806
--------
MEDIA & ENTERTAINMENT -- 1.6%
98 Gannett Co., Inc. ................... 5,690
43 Knight-Ridder, Inc. ................. 2,151
--------
7,841
--------
MEDICAL INSTRUMENTS & SUPPLIES --2.0%
120 Baxter International, Inc. .......... 9,895
--------
</TABLE>
39
<PAGE> 40
THE HARTFORD DIVIDEND AND GROWTH FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
METALS, MINERALS & MINING -- 1.2%
126 Alcoa, Inc. ......................... $ 3,615
54 Phelps Dodge Corp. .................. 2,539
--------
6,154
--------
REAL ESTATE -- 2.2%
67 Archstone Communities Trust (REIT)... 1,574
152 Equity Office Properties Trust....... 4,591
56 Kimco Realty Corp. (REIT)............ 2,270
98 Liberty Property Trust (REIT)........ 2,580
--------
11,015
--------
RETAIL -- 2.9%
202 Family Dollar Stores, Inc. .......... 3,919
437 Intimate Brands, Inc., Class A....... 10,430
--------
14,349
--------
SOFTWARE & SERVICES -- 1.7%
85 Electronic Data Systems Corp. ....... 3,976
87 First Data Corp. .................... 4,346
*1 Microsoft Corp. ..................... 62
--------
8,384
--------
TRANSPORTATION -- 3.5%
82 Boeing Co. (The)..................... 5,547
149 Ford Motor Co. ...................... 3,905
92 Genuine Parts Co. ................... 1,959
57 Honeywell International, Inc. ....... 3,046
26 TRW, Inc. ........................... 1,096
73 USFreightways Corp. ................. 1,867
11 Visteon Corp. ....................... 198
--------
17,618
--------
UTILITIES -- 7.0%
39 Dominion Resources, Inc. ............ 2,335
54 DQE, Inc. ........................... 1,897
37 Duke Energy Corp. ................... 3,155
112 El Paso Energy Corp. ................ 7,008
162 Exelon Corp. ........................ 9,724
55 FPL Group, Inc. ..................... 3,623
60 Montana Power Co. (The).............. 1,681
112 Pinnacle West Capital Corp. ......... 4,865
32 UtiliCorp United, Inc. .............. 855
--------
35,143
--------
Total common stocks.................. $474,669
========
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- --------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS -- 0.5%
COMMUNICATIONS -- 0.4%
@1,200 American Tower Corp.
6.25% due 10/15/09................... $ 2,177
--------
UTILITIES -- 0.1%
7 Texas Utilities Co.
9.25% due 08/16/02................... 326
--------
Total convertible preferred stock.... $ 2,503
========
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
EQUITY LINKED NOTES -- 0.5%
MEDIA & ENTERTAINMENT -- 0.5%
$ 22 Tribune Co. 2.00% due 05/15/29....... $ 2,424
--------
Total equity linked notes............ $ 2,424
========
SHORT-TERM SECURITIES -- 3.6%
REPURCHASE AGREEMENT -- 3.6%
17,874 Joint Repurchase Agreement (See Note
2(f)) 6.551% due 11/01/00........... $ 17,874
--------
Total short-term securities.......... $ 17,874
========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost $431,243)..... 95.0% $474,669
Total convertible preferred stocks (cost
$1,574)............................... 0.5 2,503
Total equity linked notes (See Note
2(i)) (cost $3,633)................... 0.5 2,424
Total short-term securities (cost
$17,874).............................. 3.6 17,874
----- --------
Total investment in securities (total
cost $454,324)........................ 99.6 497,470
Cash, receivables and other assets...... 0.6 2,891
Security lending collateral............. 2.6 12,993
Payable for securities purchased........ (0.0) (24)
Payable for Fund shares redeemed........ (0.1) (479)
Security lending collateral payable to
brokers............................... (2.6) (12,993)
Other liabilities....................... (0.1) (75)
----- --------
Net assets.............................. 100.0% $499,783
===== ========
</TABLE>
The accompanying notes are an integral part of this financial statement.
40
<PAGE> 41
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
--------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 28,210 shares
outstanding.................................. $ 28
Paid-in surplus................................ 436,368
Accumulated undistributed net investment
income....................................... 363
Accumulated undistributed net realized gain on
investments.................................. 19,878
Unrealized appreciation of investments......... 43,146
--------
Net assets..................................... $499,783
========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($294,903 / 16,588
shares outstanding) (125,000 shares
authorized).................................... $17.78
======
Maximum offering price per share
($17.78 / 94.5%)............................... $18.81
======
Class B
Net asset value and maximum offering price per
share ($118,936 / 6,758 shares outstanding)
(75,000 shares authorized)..................... $17.60
======
Class C
Net asset value per share ($63,503 / 3,615 shares
outstanding) (50,000 shares authorized)........ $17.57
======
Maximum offering price per share
($17.57 / 99.0%)............................... $17.75
======
Class Y
Net asset value and maximum offering price per
share ($22,441 / 1,249 shares outstanding)
(50,000 shares authorized)..................... $17.96
======
</TABLE>
* Non-income producing during the period.
@ Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. As of October 31,
2000, the market value of these securities amounted to $2,177 or 0.4% of net
assets.
41
<PAGE> 42
THE HARTFORD ADVISERS FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS -- 58.7%
AEROSPACE & DEFENSE -- 1.6%
*417 General Motors, Class H............ $ 13,511
272 United Technologies Corp. ......... 18,996
----------
32,507
----------
CHEMICALS -- 1.4%
300 Dow Chemical Co. (The)............. 9,188
330 Pharmacia Corp. ................... 18,156
----------
27,344
----------
COMMUNICATIONS -- 4.5%
*29 Avaya, Inc. ....................... 386
*308 Global Crossing Ltd. .............. 7,284
345 Lucent Technologies, Inc. ......... 8,031
335 Nortel Networks Holdings Corp. .... 15,243
403 SBC Communications Corp. .......... 23,242
*230 Tellabs, Inc. ..................... 11,481
180 Verizon Communications, Inc. ...... 10,406
*649 Worldcom, Inc. .................... 15,421
----------
91,494
----------
COMPUTERS & OFFICE EQUIPMENT -- 6.0%
*756 Cisco Systems, Inc. ............... 40,713
*428 Dell Computer Corp. ............... 12,617
*219 EMC Corp. ......................... 19,469
200 Hewlett-Packard Co. ............... 9,288
189 International Business Machines
Corp. ............................ 18,656
100 Minnesota Mining & Manufacturing
Co. .............................. 9,663
*268 Solectron Corp. ................... 11,779
----------
122,185
----------
CONSUMER NON-DURABLES -- 2.6%
190 Cardinal Health, Inc. ............. 18,003
110 Gillette Co. (The)................. 3,836
261 Procter & Gamble Co. (The)......... 18,609
200 Tyco International Ltd. ........... 11,338
----------
51,786
----------
DRUGS -- 6.4%
320 Abbott Laboratories................ 16,900
390 American Home Products Corp. ...... 24,778
220 Bristol-Myers Squibb Co. .......... 13,406
80 Eli Lilly & Co. ................... 7,150
313 Merck & Co., Inc. ................. 28,150
488 Pfizer, Inc. ...................... 21,084
359 Schering-Plough Corp. ............. 18,556
----------
130,024
----------
ELECTRICAL EQUIPMENT -- 0.5%
*294 Teradyne, Inc. .................... 9,181
----------
ELECTRONICS -- 5.0%
80 Emerson Electric Co. .............. 5,875
581 General Electric Co. .............. 31,830
645 Intel Corp. ....................... 29,025
*129 JDS Uniphase Corp. ................ 10,497
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
ELECTRONICS -- (CONTINUED)
*251 Micron Technology, Inc. ........... $ 8,722
182 Texas Instruments, Inc. ........... 8,929
*100 Vitesse Semiconductor Corp. ....... 6,994
----------
101,872
----------
ENERGY & SERVICES -- 3.8%
250 Conoco, Inc., Class B.............. 6,797
411 Exxon Mobil Corp. ................. 36,611
148 Schlumberger Ltd................... 11,289
315 Texaco, Inc. ...................... 18,587
25 Transocean Sedco Forex, Inc. ...... 1,325
40 Unocal Corp. ...................... 1,365
----------
75,974
----------
FINANCIAL SERVICES -- 9.4%
228 American International Group,
Inc. ............................. 22,371
653 Associates First Capital Corp.,
Class A........................... 24,235
100 Chase Manhattan Corp. (The)........ 4,550
457 Citigroup, Inc. ................... 24,058
320 Fleet Boston Financial Corp. ...... 12,160
293 Franklin Resources, Inc. .......... 12,531
64 Goldman Sachs Group, Inc. (The).... 6,378
249 Marsh & McLennan Cos., Inc. ....... 32,596
241 Merrill Lynch & Co., Inc. ......... 16,898
137 Morgan Stanley Dean Witter &
Co. .............................. 10,995
190 State Street Corp. ................ 23,701
----------
190,473
----------
FOOD, BEVERAGE & TOBACCO -- 2.1%
336 Coca-Cola Co. (The)................ 20,292
439 PepsiCo, Inc. ..................... 21,259
----------
41,551
----------
FOREST & PAPER PRODUCTS -- 1.2%
360 Kimberly-Clark Corp. .............. 23,760
----------
MEDIA & ENTERTAINMENT -- 2.1%
*775 AT&T -- Liberty Media Group,
Class A........................... 13,950
370 Gannett Co., Inc. ................. 21,460
*129 Viacom, Inc., Class B.............. 7,337
----------
42,747
----------
MEDICAL INSTRUMENTS & SUPPLIES -- 1.0%
88 Baxter International, Inc. ........ 7,265
140 Johnson & Johnson Co. ............. 12,898
----------
20,163
----------
METALS, MINERALS & MINING -- 0.5%
180 Illinois Tool Works, Inc. ......... 10,001
----------
RETAIL -- 5.1%
323 CVS Corp. ......................... 17,115
366 Home Depot, Inc. (The)............. 15,738
865 McDonald's Corp. .................. 26,815
</TABLE>
The accompanying notes are an integral part of this financial statement.
42
<PAGE> 43
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
*409 Safeway, Inc. ..................... $ 22,362
469 Wal-Mart Stores, Inc. ............. 21,285
----------
103,315
----------
SOFTWARE & SERVICES -- 4.2%
*347 America Online, Inc. .............. 17,479
250 Automatic Data Processing, Inc. ... 16,328
*103 Computer Sciences Corp. ........... 6,483
*659 Microsoft Corp. ................... 45,389
----------
85,679
----------
TRANSPORTATION -- 0.8%
173 Boeing Co. (The)................... 11,732
80 Honeywell International, Inc. ..... 4,305
----------
16,037
----------
UTILITIES -- 0.6%
180 FPL Group, Inc. ................... 11,880
----------
Total common stocks................ $1,187,973
==========
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
CORPORATE NOTES -- 9.8%
CHEMICALS -- 0.3%
$ 500 ICI Wilmington
6.95% due 09/15/04................ $ 488
1,000 Praxair, Inc.
6.15% due 04/15/03................ 970
4,000 Rohm & Haas Co.
7.40% due 07/15/09................ 3,962
----------
5,420
----------
COMMUNICATIONS -- 0.2%
3,000 AT&T Corp.
6.50% due 03/15/29................ 2,356
1,000 New York Telephone
6.00% due 04/15/08................ 920
----------
3,276
----------
COMPUTERS & OFFICE EQUIPMENT --0.3%
5,000 Hewlett-Packard Co.
7.15% due 06/15/05................ 5,008
2,000 Pitney Bowes, Inc.
5.50% due 04/15/04................ 1,923
----------
6,931
----------
CONSUMER NON-DURABLES -- 0.2%
2,500 Alberto-Culver Co.
8.25% due 11/01/05................ 2,570
2,000 Colgate-Palmolive Co.
5.58% due 11/06/08................ 1,811
----------
4,381
----------
DRUGS -- 0.1%
2,000 American Home Products Corp.
7.25% due 03/01/23................ 1,911
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<C> <S> <C>
ELECTRICAL EQUIPMENT -- 0.1%
$ 2,000 Danaher Corp.
6.00% due 10/15/08................ $ 1,839
----------
ELECTRONICS -- 0.3%
5,000 Eaton Corp.
6.95% due 11/15/04................ 4,949
2,000 Motorola, Inc.
7.60% due 01/01/07................ 2,062
----------
7,011
----------
ENERGY & SERVICES -- 0.1%
1,150 Northern Border Pipeline
7.75% due 09/01/09................ 1,107
----------
FINANCIAL SERVICES -- 4.8%
3,000 ACE INA Holdings
8.30% due 08/15/06................ 3,105
2,000 Allmerica Financial Corp.
7.625% due 10/15/25............... 1,781
1,900 Allstate Corp. (The)
6.75% due 06/15/03................ 1,886
2,000 Allstate Corp. (The)
6.75% due 05/15/18................ 1,777
2,005 American Express Co.
6.875% due 11/01/05............... 1,990
1,420 Amerus Life Holdings
6.95% due 06/15/05................ 1,332
3,000 Apache Finance Property Ltd.
7.00% due 03/15/09................ 2,934
2,000 Associates Corp. of North America
6.00% due 07/15/05................ 1,907
3,000 Bank One Corp.
6.875% due 08/01/06............... 2,935
500 BankAmerica Corp.
7.875% due 12/01/02............... 508
1,000 CIGNA Corp.
6.375% due 01/15/06............... 952
1,260 CIGNA Corp.
7.40% due 05/15/07................ 1,233
2,000 Equitable Life Cos., Inc.
7.00% due 04/01/28................ 1,776
20,000 Fannie Mae
7.25% due 01/15/10................ 20,724
10,000 Financing Corp.
9.80% due 04/06/18................ 12,915
545 First Union National Bank
5.80% due 12/01/08................ 481
@2,000 Jackson National Life Insurance
8.15% due 03/15/27................ 1,913
@2,000 John Hancock
7.375% due 02/15/24............... 1,865
2,755 Key Bank N.A.
5.80% due 04/01/04................ 2,647
@1,000 Liberty Financial Co.
6.75% due 11/15/08................ 916
5,000 Liberty Mutual Insurance
8.20% due 05/04/07................ 4,973
1,000 MBIA, Inc.
7.00% due 12/15/25................ 889
</TABLE>
43
<PAGE> 44
THE HARTFORD ADVISERS FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
@$2,000 New England Mutual Life Insurance
7.875% due 02/15/24............... $ 1,945
@2,000 Prudential Funding Corp.
6.75% due 09/15/23................ 1,746
2,055 Sprint Capital Corp.
6.125% due 11/15/08............... 1,832
2,000 Torchmark Corp.
8.25% due 08/15/09................ 2,036
2,000 Transamerica Financial Corp.
6.125% due 11/01/01............... 1,985
4,000 TXU Eastern Funding Co.
6.45% due 05/15/05................ 3,774
@5,000 USAA Capital Corp.
6.90% due 11/01/02................ 5,004
3,000 Wachovia Corp.
5.625% due 12/15/08............... 2,660
5,000 Wells Fargo & Co.
6.50% due 09/03/02................ 4,979
----------
97,400
----------
FOOD, BEVERAGE & TOBACCO -- 0.3%
2,000 Archer-Daniels-Midland Co.
8.125% due 06/01/12............... 2,061
2,000... Hershey Foods Corp.
7.20% due 08/15/27................ 1,897
3,000 Whitman Corp.
6.375% due 05/01/09............... 2,691
----------
6,649
----------
HEALTH SERVICES -- 0.0%
1,000 United Healthcare Corp.
6.60% due 12/01/03................ 968
----------
MACHINERY -- 0.1%
2,000 Parker-Hannifin Corp.
5.65% due 09/15/03................ 1,929
----------
MEDIA & ENTERTAINMENT -- 0.2%
2,000 Rockwell International Corp.
6.70% due 01/15/28................ 1,696
500 Scripps (E.W.) Co. (The), Class A
6.375% due 10/15/02............... 498
3,000 Washington Post Co. (The)
5.50% due 02/15/09................ 2,681
----------
4,875
----------
MEDICAL INSTRUMENTS &
SUPPLIES -- 0.1%
2,000 Becton, Dickinson & Co.
6.70% due 08/01/28................ 1,711
----------
METALS, MINERALS & MINING -- 0.2%
4,000 Vulcan Materials Co.
5.75% due 04/01/04................ 3,835
----------
RESEARCH & TESTING
FACILITIES -- 0.1%
3,000 Monsanto Co.
6.60% due 12/01/28................ 2,651
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<C> <S> <C>
RETAIL -- 0.9%
$ 4,000 Albertson's, Inc.
6.55% due 08/01/04................ $ 3,880
1,345 Dayton Hudson Corp.
5.875% due 11/01/08............... 1,202
2,000 Gap, Inc.
6.90% due 09/15/07................ 1,852
5,000 Home Depot, Inc. (The)
6.50% due 09/15/04................ 4,953
6,000 Wal-Mart Stores, Inc.
6.875% due 08/10/09............... 5,959
----------
17,846
----------
SOFTWARE & SERVICES -- 0.0%
1,000 Computer Associates International,
Inc.
6.50% due 04/15/08................ 877
----------
TRANSPORTATION -- 0.8%
6,000 Burlington Northern Santa Fe Corp.
7.875% due 04/15/07............... 6,165
5,000 DaimlerChrysler North America Hold-
ing Corp.
7.125% due 04/10/03............... 4,999
3,000 Ford Motor Co.
6.625% due 10/01/28............... 2,484
2,000 General Motors Corp.
6.75% due 05/01/28................ 1,738
----------
15,386
----------
UTILITIES -- 0.6%
4,000 Alabama Power Co.
7.125% due 08/15/04............... 3,986
4,000 Duke Energy Corp.
5.375% due 01/01/09............... 3,531
4,000 National Fuel & Gas
6.00% due 03/01/09................ 3,607
500 Williams Cos., Inc. (The)
6.50% due 11/15/02................ 496
----------
11,620
----------
Total corporate notes.............. $ 197,623
==========
FOREIGN/YANKEE BONDS & NOTES -- 0.3%
FOREIGN CORPORATIONS -- 0.3%
2,000 Alcan Aluminum Ltd.
7.25% due 11/01/28................ $ 1,808
2,000 Bayerische Landesbank Girozentrale
(NY)
5.65% due 02/01/09................ 1,795
2,000 Toyota Motor Credit Corp.
5.50% due 12/15/08................ 1,812
----------
Total foreign/yankee bonds &
notes............................. $ 5,415
==========
</TABLE>
The accompanying notes are an integral part of this financial statement.
44
<PAGE> 45
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<C> <S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- 24.6%
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 6.3%
$42,408 6.00% due 11/20/23 - 06/20/30...... $ 39,918
33,347 6.50% due 04/15/26 - 06/15/29...... 32,203
40,987 7.00% due 07/15/23 - 11/15/30...... 40,414
14,887 8.00% due 11/15/29 - 08/15/30...... 15,134
----------
127,669
----------
U.S. TREASURY BONDS -- 17.0%
30,000 5.75% due 04/30/03................. 29,880
44,750 5.875% due 11/15/05................ 44,910
15,000 6.00% due 08/15/09................. 15,156
100,000 6.25% due 08/15/23................. 103,154
24,550 6.375% due 08/15/02................ 24,702
66,000 6.50% due 08/15/05................. 67,829
58,250 7.50% due 11/15/01 - 02/15/05...... 59,227
----------
344,858
----------
U.S. TREASURY NOTES -- 1.2%
25,000 5.875% due 11/30/01................ 24,891
----------
Total U.S. treasuries & federal
agencies.......................... $ 497,418
==========
SHORT-TERM SECURITIES -- 8.5%
CORPORATE NOTES -- 0.0%
500 Heller Financial, Inc.
6.382% due 11/10/00............... $ 500
----------
REPURCHASE AGREEMENT -- 8.5%
172,025 Joint Repurchase Agreement (See
Note 2(f))
6.551% due 11/01/00............... 172,025
----------
Total short-term securities........ $ 172,525
==========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$1,090,906)......................... 58.7% $1,187,973
Total corporate notes (cost
$206,381)........................... 9.8 197,623
Total foreign/yankee bonds & notes
(cost $5,964)....................... 0.3 5,415
Total U.S. treasuries & federal
agencies
(cost $494,391)..................... 24.6 497,418
Total short-term securities (cost
$172,525)........................... 8.5 172,525
----- ----------
Total investment in securities
(total cost $1,970,167)............. 101.9 2,060,954
Cash, receivables and other assets.... 1.0 19,743
Security lending collateral........... 17.0 343,337
Payable for securities purchased...... (2.7) (55,313)
Payable for Fund shares redeemed...... (0.1) (1,938)
Security lending collateral payable to
brokers............................. (17.0) (343,337)
Other liabilities..................... (0.1) (502)
----- ----------
Net assets............................ 100.0% $2,022,944
===== ==========
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
----------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
400,000 shares authorized; 118,874 shares
outstanding................................. $ 119
Paid-in surplus............................... 1,853,008
Accumulated undistributed net investment
income...................................... 3,044
Accumulated undistributed net realized gain on
investments................................. 75,986
Unrealized appreciation of investments........ 90,787
----------
Net assets.................................... $2,022,944
==========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($893,954 / 52,372
shares outstanding) (175,000 shares
authorized).................................... $17.07
======
Maximum offering price per share
($17.07 / 94.5%)............................... $18.06
======
Class B
Net asset value and maximum offering price per
share ($631,930 / 37,393 shares outstanding)
(75,000 shares authorized)..................... $16.90
======
Class C
Net asset value per share ($432,171 / 25,345
shares outstanding) (50,000 shares
authorized).................................... $17.05
======
Maximum offering price per share
($17.05 / 99.0%)............................... $17.22
======
Class Y
Net asset value and maximum offering price per
share ($64,889 / 3,764 shares outstanding)
(100,000 shares authorized).................... $17.24
======
</TABLE>
* Non-income producing during the period.
@Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. As of October 31, 2000, the market
value of these securities amounted to $13,389 or 0.7% of net assets.
45
<PAGE> 46
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
COLLATERALIZED MORTGAGE-BACKED SECURITIES -- 0.2%
$ 100 DLJ Commercial Mortgage Corp., Series
1998-CF1, Class B2
7.33% due 01/15/10................... $ 94
-------
Total collateralized mortgage-backed
securities........................... $ 94
=======
CORPORATE NOTES -- 74.2%
APPAREL & TEXTILE -- 0.2%
130 Levi Strauss & Co.
7.00% due 11/01/06................... $ 95
-------
CHEMICALS -- 4.1%
225 ARCO Chemical Co.
9.80% due 02/01/20................... 220
@300 CP Kelko APS Capital Corp.
11.875% due 09/15/10................. 254
350 Equistar Chemicals L.P.
8.50% due 02/15/04................... 341
100 General Chemical Industrial Products,
Inc.
10.625% due 05/01/09................. 66
170 Georgia Gulf Corp.
7.625% due 11/15/05.................. 165
20 Georgia Gulf Corp.
10.375% due 11/01/07................. 20
@300 Huntsman Corp.
9.50% due 07/01/07................... 174
@200 Huntsman Corp.
13.00% due 06/01/10.................. 150
390 Huntsman ICI Chemicals LLC
10.125% due 07/01/09................. 371
50 Lyondell Chemical Co.
9.625% due 05/01/07.................. 49
-------
1,810
-------
COMMUNICATIONS -- 13.4%
200 Asia Global Crossing Ltd.
13.375% due 10/15/10................. 185
200 Centennial Communications
10.75% due 12/15/08.................. 188
7 Global Crossing Holdings Ltd.
9.50% due 11/15/09................... 7
575 Global Crossing Holdings Ltd.
9.625% due 05/15/08.................. 549
400 ICG Services, Inc.
0.00% due 05/01/08................... 48
400 Level 3 Communications
0.00% due 03/15/10................... 197
825 Level 3 Communications
11.25% due 03/15/10.................. 601
100 McLeodUSA, Inc.
8.125% due 02/15/09.................. 87
100 McLeodUSA, Inc.
9.25% due 07/15/07................... 93
300 McLeodUSA, Inc.
9.50% due 11/01/08................... 279
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
COMMUNICATIONS -- (CONTINUED)
$ 400 Metromedia Fiber Network, Inc.
10.00% due 11/15/08.................. $ 354
500 NEXTEL Communications, Inc.
9.375% due 11/15/09.................. 483
360 NEXTLINK Communications, Inc.
10.75% due 11/15/08.................. 315
150 NEXTLINK Communications, Inc.
12.50% due 04/15/06.................. 141
@200 NTL Communications Corp.
11.875% due 10/01/10................. 185
650 Primus Telecommunications Group, Inc.
11.25% due 01/15/09.................. 319
250 RCN Corp.
10.125% due 01/15/10................. 170
250 Rhythms Netconnections, Inc.
14.00% due 02/15/10.................. 120
200 Spectrasite Holdings, Inc.
10.75% due 03/15/10.................. 184
100 Telecorp PCS, Inc.
10.625% due 07/15/10................. 100
410 Time Warner Telecom, Inc.
9.75% due 07/15/08................... 363
785 Williams Communications Group, Inc.
10.875% due 10/01/09................. 661
300 Winstar Communications, Inc.
12.75% due 04/15/10.................. 212
-------
5,841
-------
CONSTRUCTION -- 2.4%
50 Del Webb Corp.
9.375% due 05/01/09.................. 45
220 Kaufman & Broad Home Corp.
7.75% due 10/15/04................... 205
200 Kaufman & Broad Home Corp.
9.625% due 11/15/06.................. 197
100 MDC Holdings, Inc.
8.375% due 02/01/08.................. 92
100 Newport News Shipbuilding, Inc.
8.625% due 12/01/06.................. 100
200 Newport News Shipbuilding, Inc.
9.25% due 12/01/06................... 203
125 Toll Corp.
7.75% due 09/15/07................... 116
100 Toll Corp.
8.75% due 11/15/06................... 99
-------
1,057
-------
CONSUMER DURABLES -- 0.8%
75 Hayes Lemmerz International, Inc.
8.25% due 12/15/08................... 56
200 HMH Properties, Inc.
8.45% due 12/01/08................... 190
162 Owens-Illinois, Inc.
7.80% due 05/15/18................... 100
-------
346
-------
</TABLE>
The accompanying notes are an integral part of this financial statement.
46
<PAGE> 47
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
CONSUMER NON-DURABLES -- 2.0%
$ 100 American Standard Co., Inc.
7.375% due 04/15/05.................. $ 95
400 American Standard Co., Inc.
7.375% due 02/01/08.................. 372
500 Polaroid Corp.
11.50% due 02/15/06.................. 390
-------
857
-------
CONSUMER SERVICES -- 0.5%
85 Service Corp. International
6.50% due 03/15/08................... 45
300 Service Corp. International
7.875% due 02/01/13.................. 159
-------
204
-------
DRUGS -- 1.1%
540 Watson Pharmaceuticals, Inc.
7.125% due 05/15/08.................. 487
-------
ELECTRONICS -- 1.0%
@450 Condor Systems, Inc.
11.875% due 05/01/09................. 297
125 Lenfest Communications, Inc.
10.50% due 06/15/06.................. 141
-------
438
-------
ENERGY & SERVICES -- 10.5%
150 Belco Oil & Gas Corp.
8.875% due 09/15/07.................. 141
75 Clark Refining & Marketing, Inc.
8.625% due 08/15/08.................. 62
50 CODA Energy, Inc.
10.50% due 04/01/06.................. 51
50 Cross Timbers Oil Co.
8.75% due 11/01/09................... 48
100 Newpark Resources, Inc.
8.625% due 12/15/07.................. 93
103 Nuevo Energy Co.
9.50% due 06/01/08................... 103
475 Pioneer Natural Resources Co.
6.50% due 01/15/08................... 421
@450 Plains Resources, Inc.
10.25% due 03/15/06.................. 452
650 Pogo Producing Co.
10.375% due 02/15/09................. 676
150 R&B Falcon Corp.
6.50% due 04/15/03................... 143
100 R&B Falcon Corp.
7.375% due 04/15/18.................. 89
525 R&B Falcon Corp.
11.375% due 03/15/09................. 599
425 Seagull Energy Corp.
7.50% due 09/15/27................... 359
200 Snyder Oil Corp.
8.75% due 06/15/07................... 205
475 Tesoro Petroleum Corp.
9.00% due 07/01/08................... 457
400 Tuboscope, Inc.
7.50% due 02/15/08................... 356
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
ENERGY & SERVICES -- (CONTINUED)
$ 200 Valero Energy Corp.
8.75% due 06/15/30................... $ 209
125 Vintage Petroleum, Inc.
9.75% due 06/30/09................... 131
-------
4,595
-------
FINANCIAL SERVICES -- 1.5%
@400 Dresdner Bank Funding Trust
8.151% due 06/30/31.................. 351
75 Interpool, Inc.
7.35% due 08/01/07................... 54
250 Sumitomo Bank International Finance
N.V.
8.50% due 06/15/09................... 253
-------
658
-------
FOOD, BEVERAGE & TOBACCO -- 0.9%
400 Canandaigua Brands, Inc.
8.50% due 03/01/09................... 386
-------
FOREST & PAPER PRODUCTS -- 1.7%
350 Boise Cascade Corp.
7.35% due 02/01/16................... 278
175 Container Corp. of America
11.25% due 05/01/04.................. 175
150 Stone Container Corp. 10.75% due
10/01/02............................. 152
125 Stone Container Corp. 12.58% due
08/01/16............................. 127
-------
732
-------
HEALTH SERVICES -- 9.7%
300 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27................... 226
250 Columbia/HCA Healthcare Corp.
9.00% due 12/15/14................... 245
110 HEALTH SOUTH Corp.
3.25% due 04/01/03................... 93
360 HEALTH SOUTH Corp.
6.875% due 06/15/05.................. 319
340 HEALTH SOUTH Corp.
7.00% due 06/15/08................... 290
@150 HEALTH SOUTH Corp.
10.75% due 10/01/08.................. 151
800 IASIS Healthcare Corp.
13.00% due 10/15/09.................. 736
600 Manor Care, Inc.
7.50% due 06/15/06................... 500
315 Quorum Health Group, Inc.
8.75% due 11/01/05................... 312
200 Tenet Healthcare Corp.
7.625% due 06/01/08.................. 190
300 Tenet Healthcare Corp.
8.00% due 01/15/05................... 295
100 Tenet Healthcare Corp.
8.625% due 12/01/03.................. 101
400 Triad Hospitals Holdings, Inc.
11.00% due 05/15/09.................. 416
</TABLE>
47
<PAGE> 48
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
HEALTH SERVICES -- (CONTINUED)
$ 350 Universal Health Services, Inc.
8.75% due 08/15/05................... $ 350
-------
4,224
-------
HOTELS & GAMING -- 2.3%
80 Harrah's Operating Co., Inc.
7.875% due 12/15/05.................. 78
200 MGM Grand, Inc.
6.875% due 02/06/08.................. 181
600 Park Place Entertainment
9.375% due 02/15/07.................. 605
25 Starwood Hotels & Resorts Worldwide,
Inc.
6.75% due 11/15/05................... 23
150 Starwood Hotels & Resorts Worldwide,
Inc.
7.375% due 11/15/15.................. 133
-------
1,020
-------
MACHINERY -- 0.0%
955 Grove Holdings LLC
0.00% due 05/01/09................... 10
-------
MANUFACTURING -- 1.2%
430 ConAgra, Inc.
9.75% due 03/01/21................... 502
-------
MEDIA & ENTERTAINMENT -- 7.7%
175 Adelphia Business Solutions, Inc.
12.00% due 11/01/07.................. 103
100 Adelphia Communications Corp.
7.75% due 01/15/09................... 78
200 Adelphia Communications Corp. 8.375%
due 02/01/08......................... 164
500 Charter Communications Holdings LLC
8.625% due 04/01/09.................. 450
150 Comcast Corp.
10.25% due 10/15/01.................. 153
250 CSC Holdings, Inc.
8.125% due 07/15/09.................. 243
250 CSC Holdings, Inc.
9.875% due 02/15/13.................. 254
375 Fox Kids Worldwide, Inc.
9.25% due 11/01/07................... 355
150 Fox/Liberty Networks LLC
8.875% due 08/15/07.................. 151
425 Hollinger International Publishing,
Inc.
9.25% due 02/01/06................... 421
300 Liberty Media Group
8.25% due 02/01/30................... 271
100 PRIMEDIA, Inc.
7.625% due 04/01/08.................. 90
250 PRIMEDIA, Inc.
10.25% due 06/01/04.................. 248
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
MEDIA & ENTERTAINMENT -- (CONTINUED)
$ 250 Six Flags Entertainment Corp.
8.875% due 04/01/06.................. $ 230
175 World Color Press, Inc.
7.75% due 02/15/09................... 157
-------
3,368
-------
MEDICAL INSTRUMENTS & SUPPLIES -- 0.5%
200 Owens & Minor, Inc.
10.875% due 06/01/06................. 206
-------
METALS, MINERALS & MINING -- 0.8%
50 AK Steel Corp.
7.875% due 02/15/09.................. 45
100 Bethlehem Steel Corp.
7.625% due 08/01/04.................. 92
280 LTV Corp.
11.75% due 11/15/09.................. 112
170 WHX Corp.
10.50% due 04/15/05.................. 105
-------
354
-------
REAL ESTATE -- 0.2%
100 Trizec Finance Ltd.
10.875% due 10/15/05................. 101
-------
RESEARCH & TESTING FACILITIES -- 1.5%
675 Sequa Corp.
9.00% due 08/01/09................... 655
-------
RETAIL -- 0.5%
275 Duane Reade, Inc.
9.25% due 02/15/08................... 234
-------
SOFTWARE & SERVICES -- 0.4%
400 PSINet, Inc.
10.00% due 02/15/05.................. 191
-------
TRANSPORTATION -- 1.3%
500 Teekay Shipping Corp.
8.32% due 02/01/08................... 473
100 United Air Lines, Inc.
9.125% due 01/15/12.................. 97
-------
570
-------
UTILITIES -- 7.8%
425 AES Corp. (The)
9.50% due 06/01/09................... 432
75 AES Corp. (The)
10.25% due 07/15/06.................. 76
800 Allied Waste North American, Inc.
7.875% due 01/01/09.................. 690
285 Browning-Ferris Industries, Inc.
7.40% due 09/15/35................... 196
245 CMS Energy Corp.
6.75% due 01/15/04................... 226
150 CMS Energy Corp.
7.50% due 01/15/09................... 131
130 CMS Energy Corp.
9.875% due 10/15/07.................. 131
350 Cogentrix Energy, Inc.
8.75% due 10/15/08................... 353
</TABLE>
The accompanying notes are an integral part of this financial statement.
48
<PAGE> 49
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 125 El Paso Electric Co.
9.40% due 05/01/11................... $ 132
175 Waste Management, Inc.
6.875% due 05/15/09.................. 159
265 Waste Management, Inc.
7.375% due 05/15/29.................. 227
800 Western Resources, Inc.
7.65% due 04/15/23................... 672
-------
3,425
-------
Total corporate notes................. $32,366
=======
FOREIGN/YANKEE BONDS & NOTES -- 12.3%
FOREIGN CORPORATIONS -- 10.2%
400 British Sky Broadcasting Group PLC
8.20% due 07/15/09................... $ 370
400 Deutsche Telekom International Finance
AG
8.25% due 06/15/30................... 409
145 Domtar, Inc.
8.75% due 08/01/06................... 151
400 Flowserve Finance B.V.
12.25% due 08/15/10.................. 339
50 Gulf Canada Resources Ltd.
8.375% due 11/15/05.................. 51
100 Gulf Canada Resources Ltd.
9.625% due 07/01/05.................. 103
600 Inco Ltd.
9.60% due 06/15/22................... 593
415 Kappa Beheer BV
10.625% due 07/15/09................. 357
500 Petroleos Mexicanos
9.50% due 09/15/27................... 505
100 Placer Dome, Inc.
7.125% due 06/15/07.................. 94
195 Rogers Cablesystems, Inc.
10.00% due 12/01/07.................. 203
242 Rogers Cablesystems, Inc.
10.125% due 09/01/12................. 253
640 Telewest Communications PLC
11.00% due 10/01/07.................. 563
250 Telewest Communications PLC
11.25% due 11/01/08.................. 218
250 Tembec Industries, Inc.
8.625% due 06/30/09.................. 244
-------
4,453
-------
FOREIGN GOVERNMENTS -- 2.0%
500 Republic of Brazil
12.75% due 01/15/20.................. 460
100 Republic of Colombia
8.375% due 02/15/27.................. 62
145 Republic of Ecuador
4.00% due 08/15/30................... 55
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
FOREIGN GOVERNMENTS -- (CONTINUED)
$ 8 Republic of Ecuador
12.00% due 11/15/12.................. $ 5
300 United Mexican States
9.875% due 02/01/10.................. 312
-------
894
-------
Total foreign/yankee bonds & notes.... $ 5,347
=======
<CAPTION>
SHARES
---------
<C> <S> <C>
PREFERRED STOCKS -- 1.9%
ENERGY & SERVICES -- 0.9%
16 Coastal Finance Corp. ................ $ 378
-------
METALS, MINERALS & MINING -- 1.0%
21 Rio Algom Ltd. ....................... 440
-------
Total preferred stocks................ $ 818
=======
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- 3.1%
U.S. TREASURY -- 3.1%
INFLATION-INDEXED SECURITIES
$1,348 3.625% due 07/15/02................... $ 1,350
-------
Total U.S. treasuries & federal
agencies............................. $ 1,350
=======
SHORT-TERM SECURITIES -- 5.0%
REPURCHASE AGREEMENT -- 5.0%
2,172 Joint Repurchase Agreement (See Note
2(f))
6.54% due 11/01/00................... $ 2,172
-------
Total short-term securities........... $ 2,172
=======
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total collateralized mortgage-backed
securities (cost $94).................. 0.2% $ 94
Total corporate notes (cost $34,453)..... 74.2 32,366
Total foreign/yankee bonds & notes (cost
$5,592)................................ 12.3 5,347
Total preferred stocks (cost $753)....... 1.9 818
Total U.S. Treasuries & Federal Agencies
(cost $1,358).......................... 3.1 1,350
Total short-term securities (cost
$2,172)................................ 5.0 2,172
----- -------
Total investment in securities
(total cost $44,422)................... 96.7 42,147
Cash, receivables and other assets....... 3.6 1,652
Payable for Fund shares redeemed......... (0.3) (147)
Other liabilities........................ -- (20)
----- -------
Net assets............................... 100.0% $43,632
===== =======
</TABLE>
49
<PAGE> 50
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
-------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 4,815 shares
outstanding................................... $ 5
Paid-in surplus................................. 47,683
Accumulated undistributed net investment
income........................................ 66
Distribution in excess of net realized income on
investments................................... (1,839)
Unrealized depreciation of investments.......... (2,275)
Unrealized depreciation of other assets and
liabilities in foreign currencies............. (8)
-------
Net assets...................................... $43,632
=======
Class A
Net asset value per share ($23,214 / 2,561
shares outstanding) (125,000 shares
authorized)................................. $ 9.06
=======
Maximum offering price per share
($9.06 / 95.5%)............................. $ 9.49
=======
Class B
Net asset value and maximum offering price per
share ($7,929 / 876 shares outstanding)
(75,000 shares authorized).................. $ 9.05
=======
Class C
Net asset value per share ($9,534 / 1,053
shares outstanding) (50,000 shares
authorized)................................. $ 9.05
=======
Maximum offering price per share
($9.05 / 99.0%)............................. $ 9.14
=======
Class Y
Net asset value and maximum offering price per
share ($2,955 / 325 shares outstanding)
(50,000 shares authorized).................. $ 9.09
=======
</TABLE>
@ Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. As of October 31, 2000, the market
value of these securities amounted to $2,014 or 4.6% of net assets.
The accompanying notes are an integral part of this financial statement.
50
<PAGE> 51
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 1.8%
$ 1,000 California Infrastructure Pacific Gas
& Electric, Series 1997-1,
6.38% due 09/25/08................... $ 980
250 California Infrastructure Southern
California Edison Co., Series 1997-1,
Class A5
6.28% due 09/25/05................... 248
600 Comed Transitional Funding Trust,
Series 1998-1, Class A5
5.44% due 03/25/07................... 572
86 NorthWest Airlines Corp. Trust, Series
2, Class C
11.30% due 06/21/14.................. 97
-------
Total asset-backed securities......... $ 1,897
=======
COLLATERALIZED MORTGAGE-BACKED SECURITIES -- 0.5%
575 DLJ Commercial Mortgage Corp., Series
1998-CF1, Class B2
7.33% due 01/15/10................... $ 539
-------
Total collateralized mortgage-backed
securities........................... $ 539
=======
CORPORATE NOTES -- 25.6%
CHEMICALS -- 0.3%
300 du Pont (E.I.) de Nemours & Co.
6.75% due 09/01/07................... $ 295
-------
COMMUNICATIONS -- 0.4%
500 Williams Communications Group, Inc.
10.875% due 10/01/09................. 421
-------
EDUCATION -- 1.2%
800 Massachusetts Institute of Technology
7.25% due 11/02/2096................. 771
500 Yale University
7.375% due 04/15/2096................ 468
-------
1,239
-------
ENERGY & SERVICES -- 8.5%
1,150 Amoco Co.
6.00% due 06/09/08................... 1,083
400 CMS Panhandle Holding Co.
6.125% due 03/15/04.................. 378
800 Enterprise Oil PLC
6.70% due 09/15/07................... 753
500 Lasmo (USA), Inc.
7.125% due 06/01/03.................. 498
300 Lasmo (USA), Inc.
8.375% due 06/01/23.................. 304
650 Noble Drilling Corp.
7.50% due 03/15/19................... 616
650 Occidental Petroleum Corp.
7.375% due 11/15/08.................. 644
500 Ocean Energy, Inc.
7.625% due 07/01/05.................. 484
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
ENERGY & SERVICES -- (CONTINUED)
$ 450 Pioneer Natural Resources Co.
6.50% due 01/15/08................... $ 398
175 Pioneer Natural Resources Co.
7.20% due 01/15/28................... 140
180 R&B Falcon Corp.
6.75% due 04/15/05................... 168
200 R&B Falcon Corp.
7.375% due 04/15/18.................. 177
1,000 R&B Falcon Corp.
11.375% due 03/15/09................. 1,140
1,150 Seagull Energy Corp.
7.50% due 09/15/27................... 971
100 Tesoro Petroleum Corp.
9.00% due 07/01/08................... 96
250 Tuboscope, Inc.
7.50% due 02/15/08................... 223
500 Valero Energy Corp.
8.75% due 06/15/30................... 522
500 Vaster Resources, Inc.
6.50% due 04/01/09................... 483
-------
9,078
-------
FINANCIAL SERVICES -- 4.3%
850 Allstate Corp. (The)
7.875% due 05/01/05.................. 871
500 Ford Motor Credit Co.
7.375% due 10/28/09.................. 487
1,000 Ford Motor Credit Co.
7.875% due 06/15/10.................. 1,008
200 General Motors Acceptance Corp.
6.79% due 08/18/03................... 199
550 Golden State Holdings, Inc.
6.75% due 08/01/01................... 543
300 Inter-American Development Bank
8.50% due 05/01/01................... 303
700 Inter-American Development Bank
8.875% due 06/01/09.................. 797
120 Interpool, Inc.
7.20% due 08/01/07................... 87
300 Trenwick Group, Inc.
6.70% due 04/01/03................... 296
-------
4,591
-------
FOOD, BEVERAGE & TOBACCO -- 1.7%
500 ConAgra Foods, Inc.
8.25% due 09/15/30................... 511
435 ConAgra Foods, Inc.
9.75% due 03/01/21................... 507
825 Stop & Shop Cos., Inc. (The)
9.75% due 02/01/02................... 841
-------
1,859
-------
FOREST & PAPER PRODUCTS -- 0.6%
700 Weyerhaeuser Co.
7.25% due 07/01/13................... 664
-------
</TABLE>
51
<PAGE> 52
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
HEALTH SERVICES -- 2.7%
$ 250 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27................... $ 188
100 Columbia/HCA Healthcare Corp.
7.50% due 12/15/23................... 82
200 Columbia/HCA Healthcare Corp.
7.50% due 11/15/95................... 156
405 HEALTH SOUTH Corp.
6.875% due 06/15/05.................. 359
30 HEALTH SOUTH Corp.
7.00% due 06/15/08................... 26
@200 HEALTH SOUTH Corp.
10.75% due 10/01/08.................. 201
685 Manor Care, Inc.
7.50% due 06/15/06................... 571
1,360 Tenet Healthcare Corp.
8.00% due 01/15/05................... 1,338
-------
2,921
-------
MEDIA & ENTERTAINMENT -- 0.9%
1,000 Liberty Media Group
8.25% due 02/01/30................... 902
113 Paramount Communications, Inc.
7.50% due 07/15/23................... 100
-------
1,002
-------
METALS, MINERALS & MINING -- 1.5%
1,500 Lockheed Martin Corp.
8.50% due 12/02/29................... 1,605
-------
TRANSPORTATION -- 0.5%
@500 TTX Co.
6.935% due 03/15/02.................. 500
-------
UTILITIES -- 2.9%
250 AES Corp. (The)
9.50% due 06/01/09................... 254
1,000 Browning-Ferris Industries, Inc.
7.40% due 09/15/35................... 689
250 Cleveland Electric Illuminating Co.
7.13% due 07/01/07................... 245
120 CMS Energy Corp.
6.75% due 01/15/04................... 111
100 CMS Energy Corp.
7.50% due 01/15/09................... 87
200 CMS Energy Corp.
9.875% due 10/15/07.................. 202
@1,000 Entergy Gulf States, Inc.
8.04% due 06/02/03................... 1,000
250 Pacific Gas & Electric Co.
7.25% due 03/01/26................... 221
200 PacifiCorp
6.12% due 01/15/06................... 187
125 Public Service Electric & Gas Co.
7.00% due 09/01/24................... 112
-------
3,108
-------
Total corporate notes................. $27,283
=======
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
FOREIGN/YANKEE BONDS & NOTES -- 12.4%
FOREIGN CORPORATIONS -- 7.0%
$ 500 Bayerische Landesbank Girozentrale (NY)
6.375% due 10/15/05................... $ 484
900 British Sky Broadcasting Group
8.20% due 07/15/09................... 834
1,750 Deutsche Telekom International
Finance AG
8.25% due 06/15/30................... 1,791
550 Enterprise Oil PLC
6.50% due 05/01/05................... 527
100 Gulf Canada Resources Ltd.
8.25% due 03/15/17................... 101
200 Gulf Canada Resources Ltd.
8.375% due 11/15/05.................. 203
400 Koninklijke KPN N.V.
8.00% due 10/01/10................... 393
1,350 Marconi PLC
8.375% due 09/15/30.................. 1,286
400 Placer Dome, Inc.
7.125% due 05/15/03.................. 391
600 Placer Dome, Inc.
7.125% due 06/15/07.................. 563
200 Rogers Cablesystems, Inc.
10.125% due 09/01/12................. 209
420 Shaw Communications, Inc.
8.25% due 04/11/10................... 428
250 Southern Investments UK PLC
6.80% due 12/01/06................... 232
-------
7,442
-------
FOREIGN GOVERNMENTS -- 5.4%
2,820 Bundesobligation
5.125% due 11/21/00.................. 2,390
3,560 France BTAN
3.00% due 07/12/01................... 2,973
200 Hydro-Quebec
8.40% due 01/15/22................... 217
200 Province of Quebec
7.50% due 09/15/29................... 202
-------
5,782
-------
Total foreign/yankee bonds & notes.... $13,224
=======
</TABLE>
The accompanying notes are an integral part of this financial statement.
52
<PAGE> 53
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- -------
<C> <S> <C>
PREFERRED STOCKS -- 0.2%
ENERGY & SERVICES -- 0.2%
11 Coastal Finance Corp.................. $ 260
-------
Total preferred stocks................ $ 260
=======
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
U.S. TREASURIES & FEDERAL
AGENCIES -- 49.5%
FEDERAL HOME LOAN BANK -- 0.2%
$ 250 7.688% due 02/20/07................... $ 234
-------
FEDERAL HOME LOAN MORTGAGE
ASSOCIATION -- 1.4%
1,470 7.00% due 10/01/29.................... 1,442
-------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 7.5%
8,252 6.00% due 02/01/13 - 11/25/30......... 7,829
217 6.50% due 09/01/28.................... 209
-------
8,038
-------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 9.6%
10,827 6.00% due 10/15/28 - 04/15/29......... 10,201
-------
U.S. TREASURY BONDS -- 13.7%
200 5.50% due 08/15/28.................... 188
1,500 5.625% due 05/15/08................... 1,479
2,000 6.00% due 08/15/09.................... 2,021
200 6.125% due 11/15/27................... 204
750 6.25% due 05/15/30.................... 799
1,400 6.375% due 08/15/27................... 1,477
1,900 6.75% due 08/15/26.................... 2,091
685 6.875% due 08/15/25................... 763
200 7.875% due 02/15/21................... 243
480 8.75% due 05/15/20.................... 630
655 8.875% due 08/15/17................... 851
900 10.375% due 11/15/09.................. 1,039
1,000 10.625% due 08/15/15.................. 1,449
420 11.875% due 11/15/03.................. 488
680 13.875% due 05/15/11.................. 929
-------
14,651
-------
U.S. TREASURY INFLATION-INDEXED
SECURITIES -- 7.2%
491 3.375% due 01/15/07................... 478
5,150 3.625% due 07/15/02 - 01/15/08........ 5,106
1,051 3.875% due 04/15/29................... 1,055
1,026 4.25% due 01/15/10.................... 1,058
-------
7,697
-------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
U.S. TREASURY NOTES -- 9.9%
$ 2,570 5.875% due 11/15/04................... $ 2,571
500 6.00% due 09/30/02.................... 500
2,800 6.125% due 12/31/01................... 2,796
860 6.50% due 10/15/06.................... 887
3,700 6.75% due 05/15/05.................... 3,836
-------
10,590
-------
Total U.S. treasuries & federal
agencies............................. $52,853
=======
</TABLE>
<TABLE>
<S> <C> <C>
SHORT-TERM SECURITIES -- 11.1%
REPURCHASE AGREEMENT -- 11.1%
11,897 Joint Repurchase Agreement
(See Note 2(f))
6.54% due 11/01/00.................... $11,897
-------
Total short-term securities........... $11,897
=======
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total asset-backed securities (cost
$1,966)............................... 1.8% $ 1,897
Total collateralized mortgage-backed
securities (cost $541)................ 0.5 539
Total corporate notes (cost $27,880).... 25.6 27,283
Total foreign/yankee bonds & notes
(cost $13,566)........................ 12.4 13,224
Total preferred stocks (cost $246)...... 0.2 260
Total U.S. treasuries & federal agencies
(cost $52,330)........................ 49.5 52,853
Total short-term securities (cost
$11,897 )............................. 11.1 11,897
----- --------
Total investment in securities
(total cost $108,426)................. 101.1 107,953
Cash, receivables and other assets...... 5.1 5,452
Security lending collateral............. 2.6 2,738
Payable for securities purchased........ (6.1) (6,572)
Payable for Fund shares redeemed........ (0.1) (121)
Security lending collateral payable to
brokers............................... (2.6) (2,738)
Other liabilities....................... (0.0) (5)
----- --------
Net assets.............................. 100.0% $106,707
===== ========
</TABLE>
53
<PAGE> 54
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
--------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000 shares authorized; 10,510 shares
outstanding.................................. $ 11
Paid-in surplus................................ 111,075
Accumulated undistributed net investment
income....................................... 119
Distribution in excess of net realized income
on investments............................... (4,033)
Unrealized depreciation of investments......... (473)
Unrealized appreciation of futures contracts
sec.......................................... 33
Unrealized depreciation of other assets and
liabilities in foreign currencies............ (25)
--------
Net assets..................................... $106,707
========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($37,290 / 3,678 shares
outstanding) (125,000 shares authorized)....... $10.14
======
Maximum offering price per share ($10.14 /
95.5%)......................................... $10.62
======
Class B
Net asset value and maximum offering price per
share ($22,197 / 2,198 shares outstanding)
(75,000 shares authorized)..................... $10.10
======
Class C
Net asset value per share ($16,886 / 1,666 shares
outstanding) (50,000 shares authorized)........ $10.14
======
Maximum offering price per share ($10.14 /
99.0%)......................................... $10.24
======
Class Y
Net asset value and maximum offering price per
share ($30,334 / 2,968 shares outstanding)
(50,000 shares authorized)..................... $10.22
======
</TABLE>
@ Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. As of October 31, 2000, the market
value of these securities amounted to $1,701 or 1.6% of net assets.
sec. The Fund had 4 U.S. 5 year U.S. Treasury Notes December 2000 Index Futures
contracts open and 26 U.S. 10 year U.S. Treasury Notes December 2000 Index
Futures contracts open as of October 31, 2000. These contracts had a value
of $3,021 as of October 31, 2000 and were collateralized by 100 U.S.
Treasury Bonds 11.875% due 11/15/03.
The accompanying notes are an integral part of this financial statement.
54
<PAGE> 55
THE HARTFORD MONEY MARKET FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
COMMERCIAL PAPER -- 78.3%
$2,000 Abbey National North America PLC
6.47% due 02/20/01................... $ 1,960
2,000 American Express Credit Corp.
6.48% due 11/20/00................... 1,993
1,120 ANZ (Delware), Inc.
6.51% due 11/28/00................... 1,115
2,000 Bemis Co., Inc.
6.48% due 11/10/00................... 1,997
2,000 Bradford & Bingley Building
6.60% due 01/08/01................... 1,975
2,000 CAFCO
6.50% due 11/08/00................... 1,997
1,000 Christiania Capital Corp.
6.605% due 01/18/01.................. 986
1,010 CIESCO L.P.
6.49% due 12/04/00................... 1,004
1,000 CIESCO L.P.
6.53% due 01/10/01................... 987
1,600 DaimlerChrysler North America Holding
Corp.
6.55% due 11/15/00................... 1,596
1,000 du Pont (E.I.) de Nemours & Co.
6.45% due 02/12/01................... 982
1,000 du Pont (E.I.) de Nemours & Co.
6.49% due 12/18/00................... 992
902 Emerson Electric Co.
6.46% due 11/21/00................... 899
1,110 Emerson Electric Co.
6.47% due 12/14/00................... 1,101
1,000 ForeningsSparbanken AB (Swedbank)
6.19% due 11/28/00................... 995
925 ForeningsSparbanken AB (Swedbank)
6.57% due 01/19/01................... 912
1,800 Gannett Co., Inc.
6.51% due 11/08/00................... 1,798
1,000 General Electric Capital Corp.
6.46% due 12/18/00................... 992
1,000 General Electric Capital Corp.
6.47% due 03/19/01................... 975
1,000 General Motors Acceptance Corp.
6.50% due 11/15/00................... 997
1,070 General Motors Acceptance Corp.
6.53% due 11/27/00................... 1,065
2,000 Gillette Co. (The)
6.45% due 12/11/00................... 1,986
1,000 Goldman Sachs Group, Inc. (The)
6.52% due 02/13/01................... 981
2,000 Halifax PLC
6.46% due 03/01/01................... 1,957
2,000 Honeywell International, Inc.
6.45% due 03/05/01................... 1,956
2,000 International Lease Finance Corp.
6.45% due 02/15/01................... 1,962
2,000 KFW International Finance
6.49% due 01/25/01................... 1,969
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
$1,000 Market Street Funding Corp.
6.49% due 12/12/00................... $ 993
2,000 Merita Bank North America, Inc.
6.14% due 12/04/00................... 1,989
2,000 Merrill Lynch & Co., Inc.
6.45% due 03/27/01................... 1,948
1,000 Morgan Stanley Dean Witter & Co.
6.48% due 11/13/00................... 998
2,000 Motorola, Inc.
6.53% due 12/11/00................... 1,985
2,000 National Rural Utilities Cooperative
Finance Corp.
6.48% due 11/16/00................... 1,995
2,000 Old Line Funding Corp.
6.48% due 12/15/00................... 1,984
1,900 Procter & Gamble Co. (The)
6.47% due 11/29/00................... 1,890
2,000 Salomon Smith Barney
6.48% due 12/04/00................... 1,988
1,000 Stanley Works
6.49% due 11/15/00................... 997
1,000 Toyota Motor Credit Corp.
6.50% due 01/23/01................... 985
1,000 Triple A One Funding
6.51% due 11/07/00................... 999
1,000 Triple A One Funding
6.55% due 01/09/01................... 987
2,000 Verizon Global
6.50% due 12/19/00................... 1,983
2,000 Wal-Mart Stores, Inc.
6.46% due 11/21/00................... 1,993
2,000 Washington Post Co. (The)
6.391% due 04/16/01.................. 1,941
1,000 Wood Street Funding Corp.
6.50% due 11/21/00................... 995
1,000 Wood Street Funding Corp.
6.52% due 11/01/00................... 1,000
-------
Total commercial paper................ $65,779
=======
CORPORATE NOTES -- 11.9%
2,000 First Union National Bank
6.80% due 02/22/01................... $ 2,000
1,000 Fleet Financial Group, Inc.
6.557% due 03/13/01.................. 1,000
1,000 Fleet National Bank
6.80% due 03/27/01................... 1,000
@1,000 Goldman Sachs Group, Inc. (The)
7.228% due 01/16/01.................. 1,001
2,000 Key Bank N.A.
6.63% due 05/25/01................... 2,000
2,000 Nationsbank Corp.
5.75% due 03/15/01................... 1,993
1,000.. Toyota Motor Credit Corp.
6.021% due 01/09/01.................. 1,000
-------
Total corporate notes................. $ 9,994
=======
</TABLE>
55
<PAGE> 56
THE HARTFORD MONEY MARKET FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
<C> <S> <C>
REPURCHASE AGREEMENT -- 10.9%
$9,200 Joint Repurchase Agreement
(See Note 2 (f))
6.54% due 11/01/00................... $ 9,200
-------
Total repurchase agreement............ $ 9,200
=======
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total commercial paper (cost $65,779)... 78.3% $65,779
Total corporate notes (cost $9,994)..... 11.9 9,994
Total short-term securities (cost
$9,200)............................... 10.9 9,200
------ -------
Total investment in securities
(total cost $84,973).................. 101.1 84,973
Cash, receivables and other assets...... 4.8 4,119
Payable for Fund shares redeemed........ (5.4) (4,631)
Payable for dividends................... (0.5) (386)
Other liabilities....................... (0.0) (37)
------ -------
Net assets.............................. 100.0% $84,038
====== =======
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
-------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
800,000 shares authorized; 84,038 shares
outstanding................................... $ 84
Paid-in surplus................................. 83,954
-------
Net assets...................................... $84,038
=======
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
-------
<S> <C>
Class A
Shares of benefical interest outstanding,
$0.001 par value, 400,000 shares authorized
(Net assets $43,897)........................
43,897
=======
Net asset value and maximum offering price per
share.......................................
$1.00
=======
Class B
Shares of benefical interest outstanding,
$0.001 par value, 200,000 shares authorized
(Net assets $14,974)........................
14,974
=======
Net asset value and maximum offering price per
share.......................................
$1.00
=======
Class C
Shares of benefical interest outstanding,
$0.001 par value, 100,000 shares authorized
(Net assets $6,842).........................
6,842
=======
Net asset value and offering price per
share.......................................
$1.00
=======
Maximum offering price per share
($1.00 / 99.0%).............................
$1.01
=======
Class Y
Shares of benefical interest outstanding,
$0.001 par value, 100,000 shares authorized
(Net assets $18,325)........................
18,325
=======
Net asset value and maximum offering price per
share.......................................
$1.00
=======
</TABLE>
@ Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. As of October 31, 2000, the market
value of these securities amounted to $1,001 or 1.2% of net assets.
The accompanying notes are an integral part of this financial statement.
56
<PAGE> 57
(This page intentionally left blank)
57
<PAGE> 58
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED OCTOBER 31, 2000*
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD
THE HARTFORD GLOBAL THE HARTFORD CAPITAL THE HARTFORD
GLOBAL HEALTH TECHNOLOGY SMALL COMPANY APPRECIATION MIDCAP
FUND* FUND* FUND FUND FUND
------------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends......................................... $ 253 $ 13 $ 511 $ 10,958 $ 1,336
Interest.......................................... 89 57 1,521 5,210 1,295
Securities lending................................ 7 4 12 207 67
Less: Foreign tax withheld........................ (16) -- -- (170) (22)
------- -------- -------- -------- --------
Total investment income (loss), net............. 333 74 2,044 16,205 2,676
------- -------- -------- -------- --------
EXPENSES:
Investment advisory fees.......................... 254 259 2,385 13,181 3,525
Transfer agent fees............................... 54 60 549 3,813 834
Distribution fees
Class A......................................... 47 43 450 3,199 706
Class B......................................... 47 54 563 6,076 881
Class C......................................... 66 72 558 3,114 1,007
Custodian fees, gross............................. 9 13 17 119 15
Custodian fees expense offset..................... (4) (2) (9) (63) (10)
Accounting services............................... 4 4 42 285 63
Registration and filing fees...................... 27 29 100 632 232
Board of Directors fees........................... -- -- 2 11 2
Amortization of deferred organizational costs..... -- -- 12 -- --
Other expenses.................................... 6 7 62 422 90
------- -------- -------- -------- --------
Total expenses, (before reimbursements and
waivers)...................................... 510 539 4,731 30,789 7,345
Expense reimbursements............................ (9) (21) (13) -- (2)
Class A distribution fees waived.................. (7) (6) (64) (457) (101)
------- -------- -------- -------- --------
Total expenses, net............................... 494 512 4,654 30,332 7,242
------- -------- -------- -------- --------
Net investment income (loss)...................... (161) (438) (2,610) (14,127) (4,566)
------- -------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on investments........... 3,865 142 8,657 347,612 77,047
Net realized gain (loss) on forward foreign
currency contracts.............................. (3) -- 7 1,822 --
Net realized gain (loss) on option contracts...... -- -- -- -- --
Net realized gain (loss) on futures contracts..... -- -- -- -- --
Net realized gain (loss) on foreign currency
transactions.................................... (2) -- (6) (1,385) 3
Net unrealized appreciation (depreciation) of
investments..................................... 11,139 (9,818) (42,407) (153,115) 42,958
Net unrealized appreciation (depreciation) of
futures contracts............................... -- -- -- -- --
Net unrealized appreciation (depreciation) of
foreign forward currency contracts.............. -- -- -- 129 --
Net unrealized appreciation (depreciation) on
translation of other assets and liabilities in
foreign currencies.............................. (3) -- -- (10) --
------- -------- -------- -------- --------
Net realized and unrealized gain (loss) on
investments..................................... 14,996 (9,676) (33,749) 195,053 120,008
------- -------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations................................. $14,835 $(10,114) $(36,359) $180,926 $115,442
======= ======== ======== ======== ========
</TABLE>
* Results are for the period January 1, 2000, through October 31, 2000, except
for The Hartford Global Health Fund and The Hartford Global Technology Fund
which are for the period May 1, 2000, through October 31, 2000. (See Note
2(n))
The accompanying notes are an integral part of this financial statement.
58
<PAGE> 59
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE HARTFORD
INTERNATIONAL THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
OPPORTUNITIES GLOBAL LEADERS THE HARTFORD GROWTH AND DIVIDEND AND THE HARTFORD HIGH YIELD BOND INCOME
FUND FUND STOCK FUND INCOME FUND GROWTH FUND ADVISERS FUND FUND STRATEGY FUND
------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 2,157 $ 3,006 $ 12,886 $ 1,709 $ 7,740 $ 7,741 $ 37 $ 17
957 1,421 4,186 466 1,088 37,179 3,126 6,110
13 66 65 9 7 89 -- 1
(255) (269) (50) -- (62) (36) -- --
-------- -------- --------- -------- ------- -------- ------- -------
2,872 4,224 17,087 2,184 8,773 44,973 3,163 6,128
-------- -------- --------- -------- ------- -------- ------- -------
1,112 2,526 11,108 1,445 2,763 9,925 240 560
255 626 3,205 356 720 2,862 63 139
242 533 2,687 399 743 2,287 58 113
215 479 4,414 262 951 4,931 61 176
203 905 3,450 402 435 3,145 72 125
138 131 11 10 9 15 5 9
(3) (33) (4) (1) (1) (7) (1) --
20 45 237 27 55 227 5 13
46 160 495 87 90 402 10 18
1 2 9 1 2 9 -- --
12 -- 12 -- -- -- -- 12
29 66 352 39 81 336 7 20
-------- -------- --------- -------- ------- -------- ------- -------
2,270 5,440 25,976 3,027 5,848 24,132 520 1,185
-- -- -- -- -- -- -- --
(35) (76) (384) (57) (106) (327) (8) (16)
-------- -------- --------- -------- ------- -------- ------- -------
2,235 5,364 25,592 2,970 5,742 23,805 512 1,169
-------- -------- --------- -------- ------- -------- ------- -------
637 (1,140) (8,505) (786) 3,031 21,168 2,651 4,959
-------- -------- --------- -------- ------- -------- ------- -------
6,674 (2,863) 110,545 11,838 20,191 75,976 (1,651) (2,161)
(440) (506) -- -- 18 -- (10) 141
-- -- -- -- 4 -- -- --
168 -- -- 32 -- -- -- 94
(172) 406 1 -- (24) 1 3 (117)
(32,776) (29,126) (110,409) (11,112) 6,815 (57,430) (1,262) 3,853
(403) -- -- 138 -- -- -- 64
7 24 -- -- -- -- -- --
(36) (32) -- -- (1) -- (8) (25)
-------- -------- --------- -------- ------- -------- ------- -------
(26,978) (32,097) 137 896 27,003 18,547 (2,928) 1,849
-------- -------- --------- -------- ------- -------- ------- -------
$(26,341) $(33,237) $ (8,368) $ 110 $30,034 $ 39,715 $ (277) $ 6,808
======== ======== ========= ======== ======= ======== ======= =======
<CAPTION>
THE HARTFORD
MONEY MARKET
FUND
------------
<S> <C>
$ --
4,227
--
--
------
4,227
------
333
151
123
135
70
4
--
10
17
--
12
15
------
870
(92)
(18)
------
760
------
3,467
------
(1)
--
--
--
--
--
--
--
--
------
(1)
------
$3,466
======
</TABLE>
59
<PAGE> 60
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED OCTOBER 31, 2000*
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD
THE HARTFORD GLOBAL THE HARTFORD CAPITAL
GLOBAL HEALTH TECHNOLOGY SMALL COMPANY APPRECIATION THE HARTFORD
FUND* FUND* FUND FUND MIDCAP FUND
------------- ------------ ------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................. $ (161) $ (438) $ (2,610) $ (14,127) $ (4,566)
Net realized gain (loss) on investments...... 3,860 142 8,658 348,049 77,050
Net unrealized appreciation (depreciation) of
investments................................ 11,136 (9,818) (42,407) (152,996) 42,958
------- -------- -------- ---------- --------
Net increase (decrease) in net assets
resulting from operations.................. 14,835 (10,114) (36,359) 180,926 115,442
------- -------- -------- ---------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A.................................... -- -- -- -- --
Class B.................................... -- -- -- -- --
Class C.................................... -- -- -- -- --
Class Y.................................... -- -- -- -- --
From net realized gain on investments
Class A.................................... -- -- (7,133) (55,488) (8,249)
Class B.................................... -- -- (3,189) (37,768) (3,683)
Class C.................................... -- -- (3,275) (20,538) (4,227)
Class Y.................................... -- -- (2,104) (3,920) (1,322)
------- -------- -------- ---------- --------
Total distributions........................ -- -- (15,701) (117,714) (17,481)
------- -------- -------- ---------- --------
CAPITAL SHARE TRANSACTIONS:
Class A.................................... 37,134 37,616 77,944 476,289 259,600
Class B.................................... 17,878 17,997 28,894 236,605 115,438
Class C.................................... 23,007 24,469 51,080 299,735 147,319
Class Y.................................... 1,974 5,241 13,162 21,346 36,703
------- -------- -------- ---------- --------
Net increase (decrease) from capital share
transactions............................... 79,993 85,323 171,080 1,033,975 559,060
------- -------- -------- ---------- --------
Net increase (decrease) in net assets........ 94,828 75,209 119,020 1,097,187 657,021
NET ASSETS:
Beginning of period.......................... -- -- 240,125 1,623,012 234,803
------- -------- -------- ---------- --------
End of period................................ $94,828 $ 75,209 $359,145 $2,720,199 $891,824
======= ======== ======== ========== ========
Accumulated undistributed net investment
income (Distribution in excess of net
investment income)......................... $ -- $ -- $ -- $ -- $ --
======= ======== ======== ========== ========
</TABLE>
* Results are for the period January 1, 2000, through October 31, 2000, except
for The Hartford Global Health Fund and The Hartford Global Technology Fund
which are for the period May 1, 2000, through October 31, 2000. (See Note
2(n))
The accompanying notes are an integral part of this financial statement.
60
<PAGE> 61
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE HARTFORD
INTERNATIONAL THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
OPPORTUNITIES GLOBAL LEADERS THE HARTFORD GROWTH AND DIVIDEND AND THE HARTFORD HIGH YIELD BOND INCOME
FUND FUND STOCK FUND INCOME FUND GROWTH FUND ADVISERS FUND FUND STRATEGY FUND
------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
63$7....... $ (1,140) $ (8,505) $ (786) $ 3,031 $ 21,168 $ 2,651 $ 4,959
6,230..... (2,963) 110,546 11,870 20,189 75,977 (1,658) (2,043)
(33,208).. (29,134) (110,409) (10,974) 6,814 (57,430) (1,270) 3,892
-------- -------- ---------- -------- -------- ---------- ------- --------
(26,341).. (33,237) (8,368) 110 30,034 39,715 (277) 6,808
-------- -------- ---------- -------- -------- ---------- ------- --------
(32).. -- -- -- (1,886) (10,080) (1,415) (1,883)
(6).. -- -- -- (250) (4,464) (468) (899)
(8).. -- -- -- (149) (2,913) (559) (634)
(10).. -- -- -- (195) (936) (168) (1,424)
(306).. (1,002) (8,436) (1,200) (1,160) (7,469) -- --
(96).. (329) (4,942) (278) (517) (5,679) -- --
(96).. (619) (3,998) (432) (249) (3,636) -- --
(84).. (40) (286) (4) (96) (605) -- --
-------- -------- ---------- -------- -------- ---------- ------- --------
(638).. (1,990) (17,662) (1,914) (4,502) (35,782) (2,610) (4,840)
-------- -------- ---------- -------- -------- ---------- ------- --------
40,089.... 188,869 325,161 123,307 37,504 198,946 7,245 (20,657)
7,583..... 56,939 124,764 21,060 (8,746) 75,441 1,039 323
17,906.... 110,799 194,679 34,984 17,270 107,885 1,628 (1,528)
914....... 6,176 1,140 12 (2,293) (3,499) 819 1,651
-------- -------- ---------- -------- -------- ---------- ------- --------
66,492.... 362,783 645,744 179,363 43,735 378,773 10,731 (20,211)
-------- -------- ---------- -------- -------- ---------- ------- --------
39,513.... 327,556 619,714 177,559 69,267 382,706 7,844 (18,243)
125,034... 156,655 1,551,777 124,883 430,516 1,640,238 35,788 124,950
-------- -------- ---------- -------- -------- ---------- ------- --------
16$4,547... $484,211 $2,171,491 $302,442 $499,783 $2,022,944 $43,632 $106,707
======== ======== ========== ======== ======== ========== ======= ========
$ (51).. $ (109) $ -- $ (138) $ 363 $ 3,044 $ 66 $ 119
======== ======== ========== ======== ======== ========== ======= ========
<CAPTION>
THE HARTFORD
MONEY
MARKET FUND
------------
<S> <C>
$ 3,467
(1)
--
---------
3,466
---------
(1,285)
(405)
(204)
(528)
(595)
(213)
(118)
(119)
---------
(3,467)
---------
(766)
(10,787)
(3,062)
9,373
---------
(5,242)
---------
(5,243)
89,281
---------
$ 84,038
=========
$ --
=========
</TABLE>
61
<PAGE> 62
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
(000'S OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD
SMALL CAPITAL THE HARTFORD INTERNATIONAL
COMPANY FUND APPRECIATION FUND MIDCAP FUND OPPORTUNITIES FUND
------------ ----------------- ------------ ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ (1,225) $ (8,514) $ (939) $ 408
Net realized gain (loss).............................. 32,432 220,245 22,597 8,592
Net unrealized appreciation (depreciation) of
investments......................................... 42,030 338,188 30,403 20,928
-------- ---------- -------- --------
Net increase (decrease) in net assets resulting from
operations.......................................... 73,237 549,919 52,061 29,928
-------- ---------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................................. -- -- -- (559)
Class B............................................. -- -- -- (85)
Class C............................................. -- -- -- (88)
Class Y............................................. -- -- -- (270)
From net realized gain on investments
Class A............................................. (5,265) (39,852) (2,912) (2,812)
Class B............................................. (2,704) (30,193) (1,226) (1,048)
Class C............................................. (1,538) (7,468) (1,011) (535)
Class Y............................................. (1,966) (3,099) (507) (1,244)
-------- ---------- -------- --------
Total distributions................................. (11,473) (80,612) (5,656) (6,641)
-------- ---------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Class A............................................. 42,873 194,441 69,285 19,101
Class B............................................. 20,782 104,187 32,020 6,749
Class C............................................. 27,087 138,335 39,377 10,298
Class Y............................................. 15,882 18,103 10,191 9,578
-------- ---------- -------- --------
Net increase from capital share transactions.......... 106,624 455,066 150,873 45,726
-------- ---------- -------- --------
Net increase in net assets............................ 168,388 924,373 197,278 69,013
NET ASSETS:
Beginning of year..................................... 71,737 698,639 37,525 56,021
-------- ---------- -------- --------
End of year........................................... $240,125 $1,623,012 $234,803 $125,034
======== ========== ======== ========
Accumulated undistributed net investment income
(Distribution in excess of net investment income)... $ -- $ (591) $ -- $ (311)
======== ========== ======== ========
</TABLE>
The accompanying notes are an integral part of this financial statement.
62
<PAGE> 63
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
GLOBAL LEADERS THE HARTFORD GROWTH AND DIVIDEND AND THE HARTFORD HIGH YIELD BOND INCOME MONEY
FUND STOCK FUND INCOME FUND GROWTH FUND ADVISERS FUND FUND STRATEGY FUND MARKET FUND
-------------- ------------ ------------ ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ (178).. $ (3,764) $ (138) $ 2,673 $ 16,388 $ 2,026 $ 5,608 $ 2,938
2,266...... 46,125 2,742 10,148 43,410 (191) (2,196) (1)
28,235..... 159,952 10,682 2,925 77,987 (1,183) (5,949) 0
-------- ---------- -------- -------- ---------- ------- -------- -------
30,323..... 202,312 13,286 15,746 137,785 652 (2,536) 2,937
-------- ---------- -------- -------- ---------- ------- -------- -------
--......... -- -- (2,218) (8,483) (1,064) (2,844) (1,708)
--......... -- -- (382) (4,171) (343) (919) (666)
--......... -- -- (136) (2,284) (431) (572) (186)
--......... -- -- (292) (1,152) (175) (1,089) (377)
(331).. (11,670) (404) (4,807) (11,395) -- (106) --
(91).. (7,680) (116) (2,531) (9,401) -- (40) --
(124).. (4,544) (173) (747) (5,104) -- (23) --
(22).. (315) (3) (474) (1,207) -- (30) --
-------- ---------- -------- -------- ---------- ------- -------- -------
(568).. (24,209) (696) (11,587) (43,197) (2,013) (5,623) (2,937)
-------- ---------- -------- -------- ---------- ------- -------- -------
63,896..... 393,154 56,058 57,118 335,483 9,630 14,565 15,239
19,489..... 220,770 14,712 12,180 285,273 5,357 6,302 13,826
35,320..... 241,716 22,738 33,237 252,748 6,629 13,685 8,701
3,029...... 20,645 15 6,203 4,954 1,392 18,457 3,632
-------- ---------- -------- -------- ---------- ------- -------- -------
121,734.... 876,285 93,523 108,738 878,458 23,008 53,009 41,398
-------- ---------- -------- -------- ---------- ------- -------- -------
151,489.... 1,054,388 106,113 112,897 973,046 21,647 44,850 41,398
5,166...... 497,389 18,770 317,619 667,192 14,141 80,100 47,883
-------- ---------- -------- -------- ---------- ------- -------- -------
156$,655.... $1,551,777 $124,883 $430,516 $1,640,238 $35,788 $124,950 $89,281
======== ========== ======== ======== ========== ======= ======== =======
$ (30).. $ -- $ -- $ (179) $ 279 $ 46 $ 245 $ --
======== ========== ======== ======== ========== ======= ======== =======
</TABLE>
63
<PAGE> 64
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
1. ORGANIZATION:
The Hartford Mutual Funds, Inc. (the Company) is an open-end management
investment company comprised of seventeen portfolios (each a "Fund" or
together the "Funds"). The Funds included in these financial statements are
The Hartford Global Health Fund, The Hartford Global Technology Fund, The
Hartford Small Company Fund, The Hartford Capital Appreciation Fund, The
Hartford MidCap Fund, The Hartford International Opportunities Fund, The
Hartford Global Leaders Fund, The Hartford Stock Fund, The Hartford Growth
and Income Fund, The Hartford Dividend and Growth Fund, The Hartford
Advisers Fund, The Hartford High Yield Fund, The Hartford Bond Income
Strategy Fund and The Hartford Money Market Fund. The Company was organized
under the laws of the State of Maryland and was registered with the
Securities and Exchange Commission (SEC) under the Investment Company Act
of 1940, as amended, as a diversified open-end management investment
company, except for The Hartford Global Health Fund and The Hartford Global
Technology Fund which are non-diversified.
The Funds and their investment objectives are listed below:
<TABLE>
<S> <C> <C>
The Hartford Global Health Fund -- Seeks long-term capital appreciation by investing
(Global Health Fund) at least 80% of its total assets in the equity
securities of health care companies worldwide.
The Hartford Global Technology Fund -- Seeks long-term capital appreciation by investing
(Global Technology Fund) at least 80% of its total assets in the equity
securities of technology companies worldwide.
The Hartford Small Company Fund -- Seeks maximum capital appreciation by investing at
(Small Company Fund) least 65% of its total assets in common stocks of
companies with market capitalization within the
range represented by the Russell 2000 Index.
The Hartford Capital Appreciation Fund -- Seeks maximum capital appreciation by investing in
(Capital Appreciation Fund) stocks of small, medium and large companies.
The Hartford MidCap Fund -- Seeks to achieve long-term capital growth through
(MidCap Fund) capital appreciation by investing primarily in
equity securities.
The Hartford International Opportunities Fund -- Seeks growth of capital by investing primarily in
(International Opportunities Fund) equity securities issued by non-U.S. companies.
The Hartford Global Leaders Fund -- Seeks growth of capital by investing primarily in
(Global Leaders Fund) high-quality U.S. and non-U.S. companies.
The Hartford Stock Fund -- Seeks long-term growth of capital with income as a
(Stock Fund) secondary consideration by investing primarily in
equity securities.
The Hartford Growth and Income Fund -- Seeks growth of capital and current income by
(Growth and Income Fund) investing primarily in equity securities with
earnings growth potential and steady or rising
dividends.
The Hartford Dividend and Growth Fund -- Seeks a high level of current income consistent
(Dividend and Growth Fund) with growth of capital by investing primarily in
equity securities.
The Hartford Advisers Fund -- Seeks maximum long-term total rate of return by
(Advisers Fund) investing in common stocks and other equity
securities, bonds and other debt securities and
money market instruments.
The Hartford High Yield Fund -- Seeks high current income, growth of capital is a
(High Yield Fund) secondary objective.
</TABLE>
64
<PAGE> 65
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
The Hartford Bond Income Strategy Fund -- Seeks a high level of current income consistent
(Bond Income Strategy Fund) with a competitive total return, as compared to
bond funds with similar investment objectives and
policies, by investing primarily in debt
securities.
The Hartford Money Market Fund -- Seeks maximum current income consistent with
(Money Market Fund) liquidity and preservation of capital.
</TABLE>
Each Fund is divided into Class A, Class B, Class C and Class Y shares.
Class A shares are sold with a front-end sales charge of up to 5.50%. Class
B shares are sold with a contingent deferred sales charge which is assessed
on the lesser of the net asset value of the shares at the time of
redemption or the original purchase price, and declines from 5.00% to zero
depending on the period of time the shares are held. Class C Shares are
sold with a front-end sales charge of up to 1% and a contingent deferred
sales charge of up to 1%. Class Y shares are sold to certain eligible
institutional investors without a sales charge. All classes of shares have
identical voting, redemption, dividend, liquidation and other rights and
the same terms and conditions, except that each class may have different
expenses, which may affect performance.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Funds,
which are in accordance with generally accepted accounting principles in
the investment company industry:
a) Security Transactions--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.
b) Security Valuation--Equity securities are valued at the last sales
price reported on the principal securities exchange on which such
securities are traded (domestic or foreign) or on the principal
over-the-counter market on which such securities are traded, as of the
close of business on the day the securities are being valued. If no
sale took place on a particular day then such securities are valued at
the mean between the bid and asked prices. The difference between cost
and market value for debt and equity securities is recorded in the
Statement of Operations and accumulated in shareholders equity.
Debt securities (other than short-term obligations) are valued on the
basis of valuations furnished by an unaffiliated pricing service which
determines valuations for normal institutional size trading units of
debt securities. Mortgage securities are valued at the bid price.
Short-term securities held in the Money Market Fund are valued at
amortized cost or original cost plus accrued interest receivable, both
of which approximate market value. In the remaining Funds, short-term
investments with a maturity of 60 days or less when purchased are
valued at amortized cost, which approximates market value. Short-term
investments purchased with a maturity of more than 60 days when
purchased are valued based on market quotations until the remaining
days to maturity becomes less than 61 days. From such time until
maturity, the investments are valued at amortized cost.
Securities quoted in foreign currencies are translated into U.S.
dollars at the exchange rates at the end of each business day. Options
are valued at the last sales price. If no sale took place on such day,
then options are valued at the mean between the bid and asked prices.
Securities for which market quotations are not readily available and
all other assets are valued in good faith at fair value by, or under
the direction of, the Funds' Board of Directors. (See Note 2(g))
c) Foreign Currency Transactions--The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially
expressed in foreign currencies are converted into U.S. dollars at
prevailing exchange rates. Purchases and sales of investment
securities, dividend and interest income and certain expenses are
translated at the rates of exchange prevailing on the respective dates
of such transactions.
The Funds do not isolate that portion of portfolio security valuation
resulting from fluctuations in foreign currency exchange rates on
portfolio securities from the fluctuations arising from changes in the
market prices of securities held. Such fluctuations are included with
the net realized and unrealized gain or loss on investments in the
accompanying financial statements.
65
<PAGE> 66
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
Net realized and unrealized foreign exchange gains or losses arise from
sales of foreign currencies and the difference between asset and
liability amounts initially stated in foreign currencies and the U.S.
dollar value of the amounts actually received or paid. Net unrealized
foreign exchange gains or losses arise from changes in the value of
other assets and liabilities at the end of the reporting period,
resulting from changes in the exchange rates.
d) Securities Lending--The Funds, except for the Money Market Fund, may
lend their securities to certain qualified brokers who pay these Funds
negotiated lender fees. The loans are collateralized at all times with
cash or securities with a market value at least equal to the market
value of the securities on loan. As with other extensions of credit,
these Funds may bear the risk of delay of the loaned securities in
recovery or even loss of rights in the collateral should the borrower
of the securities fail financially. As of October 31, 2000, the market
value of the securities loaned and the market value of the collateral
were as follows:
<TABLE>
<CAPTION>
VALUE OF SECURITIES LOANED VALUE OF COLLATERAL
-------------------------- -------------------
<S> <C> <C>
Global Health Fund.......................................... $ 5,423 $ 5,560
Global Technology Fund...................................... 4,087 4,347
Small Company Fund.......................................... 37,523 38,772
Capital Appreciation Fund................................... 168,943 175,820
MidCap Fund................................................. 94,355 97,392
International Opportunities Fund............................ 10,993 11,459
Global Leaders Fund......................................... 33,988 35,342
Stock Fund.................................................. 106,894 109,634
Growth and Income Fund...................................... 20,970 21,690
Dividend and Growth Fund.................................... 12,729 12,993
Advisers Fund............................................... 332,515 343,337
Bond Income Strategy Fund................................... 2,671 2,738
</TABLE>
e) Joint Trading Account--Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Funds may transfer uninvested
cash balances into a joint trading account managed by The Hartford
Investment Management Company (HIMCO) or Wellington Management Company
LLP (Wellington). These balances may be invested in one or more
repurchase agreements and/or short-term money market instruments.
f) Repurchase Agreements--A repurchase agreement is an agreement by which
the seller of a security agrees to repurchase the security sold at a
mutually agreed upon time and price. At the time the Funds enter into a
repurchase agreement, the value of the underlying collateral
security(ies), including accrued interest, will be equal to or exceed
the value of the repurchase agreement and, in the case of repurchase
agreements exceeding one day, the value of the underlying
security(ies), including accrued interest, is required during the term
of the agreement to be equal to or exceed the value of the repurchase
agreement. Securities which serve to collateralize the repurchase
agreement are held by each Fund's custodian in book entry or physical
form in the custodial account of the Fund. Repurchase agreements are
valued at cost plus accrued interest receivable. All repurchase
agreements are executed through the Fund's custodian State Street Bank.
The Global Health Fund, the Global Technology Fund, the Small Company
Fund, the Capital Appreciation Fund, the MidCap Fund, the International
Opportunities Fund, the Global Leaders Fund, the Stock Fund, the Growth
and Income Fund, the Dividend and Growth Fund and the Advisers Fund
together with other investment management companies having investment
advisory agreements with Wellington have an interest in a $2,276,476
joint repurchase agreement dated 10/31/00 with State Street Bank,
6.551% due 11/01/00. This joint repurchase agreement is collateralized
by $1,905,140 U.S. Treasury Bonds 6.875% - 13.25% due
11/15/03 - 08/15/25,
66
<PAGE> 67
--------------------------------------------------------------------------------
$4,282 U.S. Treasury Notes 5.75% due 11/30/02 and $415,835 U.S.
Treasury Strips 0.00% due 08/15/13 - 08/15/22. The maturity amounts are
as follows:
<TABLE>
<CAPTION>
MATURITY
FUND AMOUNT
--------------------------------------------------------- -------------
<S> <C>
Global Health Fund....................................... $ 1,626
Global Technology Fund................................... 1,726
Small Company Fund....................................... 35,929
Capital Appreciation Fund................................ 34,936
MidCap Fund.............................................. 83,298
International Opportunities Fund......................... 10,399
Global Leaders Fund...................................... 31,094
Stock Fund............................................... 132,913
Growth and Income Fund................................... 5,488
Dividend and Growth Fund................................. 17,877
Advisers Fund............................................ 172,056
</TABLE>
The High Yield Fund, the Bond Income Strategy Fund and the Money Market
Fund together with other investment management companies having
investment advisory agreements with HIMCO have an interest in $215,856
joint repurchase agreement dated 10/31/00 with State Street Bank, 6.54%
due 11/01/00. This joint repurchase agreement is collateralized by
$219,597 U.S. Treasury Notes 5.75% - 6.125% due 04/30/03 - 08/15/07. The
maturity amounts are as follows:
<TABLE>
<CAPTION>
MATURITY
FUND AMOUNT
----------------------------------------------------------- --------
<S> <C>
High Yield Fund............................................ $ 2,172
Bond Income Strategy Fund.................................. 11,899
Money Market Fund.......................................... 9,202
</TABLE>
g) Futures, Options on Futures and Options Transactions--A futures
contract is an agreement between two parties to buy and sell a security
at a set price on a future date. When the Funds enter into such
contracts, they are required to deposit with their custodian an amount
of "initial margin" of cash, commercial paper or U.S. Treasury Bills.
Subsequent payments, called maintenance margin, to and from the broker,
are made on a daily basis as the price of the underlying security
fluctuates, making the long and short positions in the futures contract
more or less valuable (i.e., mark-to-market), which results in an
unrealized gain or loss to the Funds. The market value of a traded
futures contract is the last sale price. In the absence of a last sale
price, the last offering price is used. In the absence of either of
these prices, fair value is determined according to procedures
established by the Funds' Board of Directors.
At any time prior to expiration of the futures contract, the Funds may
close the position by taking an opposite position, which would operate
to terminate the position in the futures contract. A final
determination of maintenance margin is then made, additional cash is
required to be paid by or released to the Funds and the Funds realize a
gain or loss.
The use of futures contracts involve elements of market and counter
party risk, which may exceed the amounts recognized in the Statements
of Net Assets. Change in the value of the futures contracts may
decrease the effectiveness of the Fund's strategies and potentially
result in loss.
The premium paid by the Fund for the purchase of a call or put option
is included in the Fund's Statement of Net Assets as an investment and
subsequently "marked-to-market" through net unrealized appreciation
(depreciation) of options to reflect the current market value of the
option as of the end of the reporting period. If purchased options
expires on its stipulated expiration date, the Fund realizes a loss in
the amount of the cost of the option. If the Fund exercises a put
option, it realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale will be decreased by the
premium originally paid. If the Fund exercises a call option,
67
<PAGE> 68
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
the cost of the security, which the Fund purchases upon exercise will be
increased by the premium originally paid to buy the call.
The Funds may write covered options. "Covered" means that so long as the Fund is
obligated as the writer of an option, it will own either the underlying
securities or currency or the option to purchase or sell the same
underlying securities or currency having the expiration date of the
covered option and an exercise price equal to or less than the exercise
price of the covered option, or will establish or maintain with it's
custodian for the term of the option a "segregated account" consisting
of cash or other liquid securities having a value equal to the
fluctuating market value of the option securities or currencies. The
Fund receives a premium for writing a call or put option, recorded as a
component of other liabilities on the Statement of Net Assets, which
increases the Funds' return, recorded as a realized gain, if the option
expires unexercised or is closed out at a net profit. Any loss realized
from the covered option is offset by the gain realized on the sale of
the underlying securities or currency. Covered options, at times before
exercise or close out, are marked-to-market through net unrealized
appreciation (depreciation) of options. There is a risk of loss from a
change in value of such options, which may exceed the related premiums
received.
The Fund's option activity for the ten months ended October 31, 2000,
was as follows:
THE HARTFORD DIVIDEND AND GROWTH FUND
OPTIONS CONTRACTS WRITTEN DURING THE PERIOD
<TABLE>
<CAPTION>
NUMBER OF DOLLAR
WRITTEN CALLS CONTRACTS AMOUNTS
------------------------------------------------------------ --------- -------
<S> <C> <C>
Beginning of Period......................................... -- $ --
During the Period........................................... #-- 76
Expired during the period................................... #-- (60)
Closed during the period.................................... #-- (16)
Exercised during the period................................. -- --
---- ----
Balance at the end of period................................ -- --
==== ====
</TABLE>
# Due to the presentation of the financial statements in thousands, the
number of contracts round to zero.
h) Forward Foreign Currency Contracts--For the ten months ended October
31, 2000, the Capital Appreciation Fund, the International
Opportunities Fund and the Global Leaders Fund entered into forward
foreign currency exchange contracts that obligate the Fund to
repurchase/replace or sell currencies at specified future dates. The
Fund enters into forward foreign currency contracts to hedge against
adverse fluctuations in exchange rates between currencies.
Forward contracts involve elements of market risk in excess of the
amount reflected in the Statement of Net Assets. In addition, risks may
arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of the contract and from
unanticipated movement in the value of foreign currencies relative to
the U.S. dollar.
i) Indexed Securities--The Funds may invest in indexed securities whose
values are linked to changes in interest rates, indices, or other
underlying instruments. The Funds use these securities to increase or
decrease their exposure to different underlying instruments and to gain
exposure to markets that might be difficult to invest through
conventional securities. Indexed securities may be more volatile than
their underlying instruments, but any loss is limited to the amount of
the original investment and there is a limit to the potential
appreciation of the investment.
j) Federal Income Taxes--For federal income tax purposes, the Funds intend
to continue to qualify as regulated investment companies under
Subchapter M of the Internal Revenue Code by distributing substantially
all of their taxable net investment income and net realized capital
gains to their shareholders or otherwise complying with the
requirements of regulated investment companies. Accordingly, no
provision for federal income taxes has been made in the accompanying
financial statements.
68
<PAGE> 69
--------------------------------------------------------------------------------
k) Fund Share Valuation and Dividend Distributions to Shareholders--Orders
for the Fund's shares are executed in accordance with the investment
instructions of the shareholders. Dividend income is accrued as of the
ex-dividend date, except that certain dividends for foreign securities
where the ex-dividend date may have passed are recorded as soon as the
Fund is informed of the dividend in the exercise of reasonable
diligence. Interest income and expenses are accrued on a daily basis.
The net asset value of each Fund's shares is determined as of the close
of each business day of the New York Stock Exchange (the Exchange). The
net asset value per share is determined separately for each class of
each fund by dividing the Fund's net assets attributable to that class
by the number of shares of the class outstanding. Orders for the
purchase of a Fund's shares received prior to the close of the Exchange
on any day on which the Exchange is open for business are priced at the
per-share net asset value determined as of the close of the Exchange.
Orders received after the close of the Exchange, or on a day on which
the Exchange and/or the Fund is not open for business, are priced at
the per-share net asset value next determined.
Each Fund intends to distribute substantially all of its net investment
income and net realized capital gains to shareholders no less
frequently than once a year. Normally, dividends from net investment
income of the Global Health Fund, the Global Technology Fund, the Small
Company Fund, the Capital Appreciation Fund, the MidCap Fund, the
International Opportunities Fund, the Global Leaders Fund and the Stock
Fund will be declared and paid annually; dividends from net investment
income of the Growth and Income Fund, the Dividend and Growth Fund and
the Advisers Fund will be declared and paid quarterly; dividends from
the net investment income of the High Yield Fund and the Bond Income
Strategy 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.
Net investment income and net realized capital gains available for
distribution are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting
principles. These differences include the treatment of non-taxable
dividends, expiring capital loss carryforwards, foreign currency gains
and losses; losses deferred due to wash sales and excise tax
regulations. Permanent book and federal income tax basis differences
relating to shareholder distributions will result in reclassifications
to certain of the Funds' capital accounts (see Note 8).
l) Use of Estimates--The preparation of financial statements in conformity
with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities as of the date of the
financial statements and the reported amounts of income and expenses
during the period. Operating results in the future could vary from the
amounts derived from management's estimates.
m) Restricted Securities--Each Fund is permitted to invest up to 15% of its
net assets in illiquid securities, except for the Money Market Fund,
which may invest up to 10% in such securities. "Illiquid Securities" are
those that may not be sold or disposed of in the ordinary course of
business, at approximately the price used to determine a Fund's net
asset value per share. Each Fund may also purchase certain restricted
securities, commonly known as Rule 144A securities, that can be resold
to institutions and which may be determined to be liquid pursuant to
policies and guidelines established by the Funds' Board of Directors.
As of October 31, 2000, the Funds held the following restricted
securities (excluding 144A issues):
<TABLE>
<CAPTION>
PERCENTAGE OF
ACQUISITION ACQUISITION MARKET FUND'S
FUND SECURITY DATE COST VALUE NET ASSETS
---------------------------- ----------------------------- ----------- ----------- ------- -------------
<S> <C> <C> <C> <C> <C>
Capital Appreciation Fund... Optical Switch Corp., Class B 03/02/00 $7,750 $ 7,750 0.28%
Capital Appreciation Fund... Sensable Technology, Inc. 04/05/00 4,000 4,000 0.15
Capital Appreciation Fund... Tricord Systems, Inc. 04/13/00 9,700 16,500 0.61
</TABLE>
n) Change in Fiscal Year End--During the fiscal year 2000, the Company
changed their fiscal year end from December 31 to October 31.
69
<PAGE> 70
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
3. EXPENSES:
a) Investment Management and Advisory Agreements--Hartford Investment
Financial Services Company (HIFSCO), a wholly-owned indirect subsidiary
of The Hartford Financial Services Group, Inc. (The Hartford), serves
as investment manager to each Fund pursuant to an Investment Advisory
Agreement dated March 3, 1997. As investment manager, HIFSCO has
overall investment supervisory responsibility for each Fund. In
addition HIFSCO provides administrative personnel, services, equipment
and facilities and office space for proper operation of the Funds.
HIFSCO has contracted with Wellington for the provision of day to day
investment management services to the Global Health Fund, Global
Technology Fund, 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 in accordance with each Fund's investment objective and policies.
In addition, HIFSCO has contracted with HIMCO, a wholly owned
subsidiary of The Hartford, for the provision of day to day investment
management services for the High Yield Fund, Bond Income Strategy Fund
and Money Market Fund. Each Fund pays a fee to HIFSCO, a portion of
which is used to compensate Wellington or HIMCO.
The schedule below reflects the rates of compensation paid to HIFSCO
for investment advisory services rendered:
MONEY MARKET FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------------ ----------
<S> <C>
On first $500 million .50%
On next $500 million .45%
Over $1 billion .40%
</TABLE>
BOND INCOME STRATEGY FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------------ ----------
<S> <C>
On first $500 million .65%
On next $500 million .55%
Over $1 billion .50%
</TABLE>
DIVIDEND AND GROWTH FUND,
ADVISERS FUND AND HIGH YIELD FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------------ ----------
<S> <C>
On first $500 million .75%
On next $500 million .65%
Over $1 billion .60%
</TABLE>
CAPITAL APPRECIATION FUND, STOCK FUND AND
GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
-------------------------------------- ----------
<S> <C>
On first $500 million .80%
On next $500 million .70%
Over $1 billion .65%
</TABLE>
SMALL COMPANY FUND, MIDCAP FUND, INTERNATIONAL
OPPORTUNITIES FUND AND GLOBAL LEADERS FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
-------------------------------------- ----------
<S> <C>
On first $500 million .85%
On next $500 million .75%
Over $1 billion .70%
</TABLE>
GLOBAL HEALTH FUND AND GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL FEE
-------------------------------------- ----------
<S> <C>
On first $500 million 1.00%
On next $500 million .95%
Over $1 billion .90%
</TABLE>
b) Distribution and Service Plan for Class A, B and C Shares--HIFSCO is
the principal underwriter and distributor of the Funds. HIFSCO is
engaged in distribution activities which include marketing,
distribution and clearing of shares through broker-dealers, financing
distribution costs, supervising the activities of the transfer agent
and maintaining financial books and records. For the ten months ended
October 31, 2000, the following revenues were received by HIFSCO
(excluding investment advisory):
<TABLE>
<CAPTION>
FRONT-END LOAD CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
-------------- -------------------
<S> <C> <C>
HIFSCO $72,757 $4,289
</TABLE>
70
<PAGE> 71
--------------------------------------------------------------------------------
The Funds have adopted Distribution and Service Plans in accordance with
Rule 12b-1 of the Investment Company Act of 1940, as amended, to
compensate the Distributor (HIFSCO) for the distribution of Class A,
Class B and Class C shares and servicing the accounts of Class A, Class
B and Class C shareholders. The Class A plan provides for periodic
payments to brokers who provide services to accounts that hold Class A
shares and for promotional and other sales related costs. The
Distributor is compensated at an annual rate that may not exceed 0.35%
of the average daily net asset value of Class A shares of the Fund, some
or all of which may be remitted to brokers. Up to 0.25% of the fee may
be used for shareholder servicing expenses with the remainder used for
distribution expenses. The Class A 12b-1 fee for each Fund has been
voluntarily capped at 0.30%. The cap may be removed at any time. Some or
the entire 12b-1 fee for Class B shares may be paid to broker-dealers
for distribution and/or shareholder account services. Under the Class B
Plan, the Fund pays the Distributor 1.00% of the average daily net
assets of Class B shares that are outstanding for 8 years or less, 0.25%
of which is intended as a fee for service provided to existing
shareholders with the remainder used for distribution expenses. After
eight years, Class B shares convert to Class A shares. Upon conversion
to Class A shares the Class A plan described above will apply to those
shares. Under the Class C Plan, the Fund pays the Distributor 1.00% of
the average daily new assets of Class C shares outstanding, 0.25% of
which is intended as a fee for services provided to existing
shareholders with the remainder used for distribution expenses. For
Class C shares, some or the entire fee may be re-allocated to
broker-dealers for distribution and/or shareholder account services.
There is no distribution plan for Class Y shares.
c) Operating Expenses--Allocable expenses incurred by the Funds are
allocated to each Fund in proportion to the average daily net assets of
each Fund, except where allocation of certain expenses is more fairly
made directly to the Fund or to specific classes within a fund. The
Hartford has voluntarily agreed to limit the total operating expenses
of the Class A, B, C and Y shares of all the Funds, exclusive of taxes,
interest, brokerage commissions, certain distribution expenses and
extraordinary expenses, until at least April 30, 2001 as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS B CLASS C CLASS Y
------------------------------------------------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C>
Global Health Fund..................................... 1.65% 2.35% 2.35% 1.20%
Global Technology Fund................................. 1.65% 2.35% 2.35% 1.20%
Small Company Fund..................................... 1.45% 2.15% 2.15% 1.00%
Capital Appreciation Fund.............................. 1.45% 2.15% 2.15% 1.00%
MidCap Fund............................................ 1.45% 2.15% 2.15% 1.00%
International Opportunities Fund....................... 1.65% 2.35% 2.35% 1.20%
Global Leaders Fund.................................... 1.65% 2.35% 2.35% 1.20%
Stock Fund............................................. 1.45% 2.15% 2.15% 1.00%
Growth and Income Fund................................. 1.45% 2.15% 2.15% 1.00%
Dividend and Growth Fund............................... 1.40% 2.10% 2.10% 0.95%
Advisers Fund.......................................... 1.40% 2.10% 2.10% 0.95%
High Yield Fund........................................ 1.40% 2.10% 2.10% 0.95%
Bond Income Strategy Fund.............................. 1.25% 1.95% 1.95% 0.80%
Money Market Fund...................................... 1.00% 1.70% 1.70% 0.55%
</TABLE>
The Hartford may terminate such voluntary and temporary fee waivers and
expense limitation arrangements at any time after April 30, 2001 without
notice.
Amounts incurred which exceed the above limits, are deducted from
expenses and are reported as expense reimbursements or waivers on the
accompanying Statement of Operations.
d) Other Related Party Transactions--The Hartford and its subsidiaries
provide facilities and office equipment, as well as perform certain
other services, including fund accounting and financial reporting, for
the Funds. Certain officers of the Funds are directors and/or officers
of HIFSCO, HIMCO and/or The Hartford or its subsidiaries. No officer of
the Funds receives any compensation directly from the Funds.
71
<PAGE> 72
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
e) Expense Offset--The Funds have entered into certain expense offset
arrangements with the custodian bank. The amount of the Funds' expense
reductions is shown on the accompanying Statement of Operations as
custodian fee expense offset.
4. AFFILIATE HOLDINGS:
As of October 31, 2000, affiliates of The Hartford had ownership of shares
in the Funds as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS B CLASS C CLASS Y
------------------------------------------------------ --------- --------- ------- -------
<S> <C> <C> <C> <C>
Global Health Fund.................................... #-- #-- #-- #--
Global Technology Fund................................ 700 100 100 100
Growth and Income Fund................................ -- -- -- 31
High Yield Fund....................................... 822 116 116 118
Bond Income Strategy Fund............................. -- 333 1 228
</TABLE>
# Due to the presentation of the financial statements in thousands, the
number of shares held round to zero.
5. INVESTMENT TRANSACTIONS:
For the ten months ended October 31, 2000, aggregate purchases and sales of
investment securities (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
PROCEEDS FROM
FUND COST OF PURCHASES SALES
------------------------------------------------------------ ----------------- -------------
<S> <C> <C>
Global Health Fund.......................................... $ 104,390 $ 28,069
Global Technology Fund...................................... 133,208 49,619
Small Company Fund.......................................... 606,348 480,946
Capital Appreciation Fund................................... 3,834,351 2,857,999
MidCap Fund................................................. 996,610 543,888
International Opportunities Fund............................ 230,930 167,459
Global Leaders Fund......................................... 1,289,110 951,368
Stock Fund.................................................. 1,341,381 744,496
Growth and Income Fund...................................... 302,554 130,383
Dividend and Growth Fund.................................... 278,885 241,587
Advisers Fund............................................... 995,360 651,070
High Yield Fund............................................. 29,245 20,532
Bond Income Strategy Fund................................... 133,692 155,840
</TABLE>
72
<PAGE> 73
--------------------------------------------------------------------------------
6. TAX COST AND UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:
As of October 31, 2000, the aggregate gross unrealized appreciation and
depreciation of all investments, based on cost for federal income tax
purposes, was as follows:
<TABLE>
<CAPTION>
AGGREGATE GROSS AGGREGATE GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
FUND TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
----------------------------------------- ---------- ---------------- --------------- --------------
<S> <C> <C> <C> <C>
Global Health Fund....................... $ 82,041 $ 12,401 $ (1,491) $ 10,910
Global Technology Fund................... 86,460 2,743 (13,564) (10,821)
Small Company Fund....................... 334,645 37,939 (30,978) 6,961
Capital Appreciation Fund................ 2,508,361 463,359 (246,895) 216,464
MidCap Fund.............................. 815,865 126,678 (56,487) 70,191
International Opportunities Fund......... 168,943 7,460 (16,346) (8,886)
Global Leaders Fund...................... 486,036 23,104 (31,777) (8,673)
Stock Fund............................... 2,057,595 334,557 (210,458) 124,099
Growth and Income Fund................... 298,789 33,585 (32,281) 1,304
Dividend and Growth Fund................. 456,293 79,161 (37,984) 41,177
Advisers Fund............................ 1,970,167 218,857 (128,070) 90,787
High Yield Fund.......................... 44,465 525 (2,843) (2,318)
Bond Income Strategy Fund................ 108,430 1,134 (1,611) (477)
</TABLE>
7. CAPITAL SHARE TRANSACTIONS:
The following information is for the period ended October 31, 2000:
<TABLE>
<CAPTION>
GLOBAL
GLOBAL HEALTH FUND TECHNOLOGY FUND SMALL COMPANY FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 4,050 $ 47,852 4,023 $ 39,760 5,223 $ 107,566
Shares issued on reinvestment of
distributions........................... -- -- -- -- 353 6,910
Shares redeemed........................... (810) (10,718) (212) (2,144) (1,839) (36,532)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 3,240 $ 37,134 3,811 $ 37,616 3,737 $ 77,944
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
CAPITAL INTERNATIONAL
APPRECIATION FUND MIDCAP FUND OPPORTUNITIES FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 16,709 $ 559,112 13,319 $ 279,977 6,925 $ 99,977
Shares issued on reinvestment of
distributions........................... 1,717 54,241 399 8,017 23 332
Shares redeemed........................... (4,126) (137,064) (1,382) (28,394) (4,195) (60,220)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 14,300 $ 476,289 12,336 $ 259,600 2,753 $ 40,089
====== ========= ======== ========= ======== =========
</TABLE>
73
<PAGE> 74
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND
GLOBAL LEADERS FUND STOCK FUND INCOME FUND
-------------------- -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 13,917 $ 261,458 17,531 $ 413,116 9,961 $ 136,117
Shares issued on reinvestment of
distributions........................... 52 975 351 8,267 87 1,191
Shares redeemed........................... (3,945) (73,564) (4,095) (96,222) (1,027) (14,001)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 10,024 $ 188,869 13,787 $ 325,161 9,021 $ 123,307
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND AND
GROWTH FUND ADVISERS FUND HIGH YIELD FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 4,922 $ 82,124 17,230 $ 294,079 1,224 $ 11,516
Shares issued on reinvestment of
distributions........................... 180 3,003 1,007 17,136 145 1,354
Shares redeemed........................... (2,880) (47,623) (6,588) (112,269) (598) (5,625)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 2,222 $ 37,504 11,649 $ 198,946 771 $ 7,245
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME
STRATEGY FUND MONEY MARKET FUND
------------------ --------------------
SHARES AMOUNT SHARES AMOUNT
------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 6,358 $ 64,219 244,226 $ 244,226
Shares issued on reinvestment of
distributions........................... 168 1,682 1,687 1,687
Shares redeemed........................... (8,619) (86,558) (246,679) (246,679)
------ --------- -------- ---------
Net Increase (Decrease)................... (2,093) $ (20,657) (766) $ (766)
====== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
GLOBAL HEALTH FUND TECHNOLOGY FUND SMALL COMPANY FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 1,618 $ 19,573 1,842 $ 18,359 2,013 $ 40,860
Shares issued on reinvestment of
distributions........................... -- -- -- -- 154 2,925
Shares redeemed........................... (128) (1,695) (37) (362) (762) (14,891)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,490 $ 17,878 1,805 $ 17,997 1,405 $ 28,894
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
CAPITAL INTERNATIONAL
APPRECIATION FUND MIDCAP FUND OPPORTUNITIES FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 7,829 $ 255,521 5,810 $ 119,788 815 $ 11,838
Shares issued on reinvestment of
distributions........................... 1,162 35,611 179 3,530 7 99
Shares redeemed........................... (1,678) (54,527) (395) (7,880) (296) (4,354)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 7,313 $ 236,605 5,594 $ 115,438 526 $ 7,583
====== ========= ======== ========= ======== =========
</TABLE>
74
<PAGE> 75
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND
GLOBAL LEADERS FUND STOCK FUND INCOME FUND
-------------------- -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 3,281 $ 61,403 7,798 $ 178,634 1,916 $ 25,745
Shares issued on reinvestment of
distributions........................... 17 312 205 4,702 20 269
Shares redeemed........................... (256) (4,776) (2,564) (58,572) (367) (4,954)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 3,042 $ 56,939 5,439 $ 124,764 1,569 $ 21,060
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND AND
GROWTH FUND ADVISERS FUND HIGH YIELD FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 1,074 $ 17,655 8,680 $ 146,388 402 $ 3,778
Shares issued on reinvestment of
distributions........................... 44 723 568 9,580 36 337
Shares redeemed........................... (1,666) (27,124) (4,782) (80,527) (325) (3,076)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... (548) $ (8,746) 4,466 $ 75,441 113 $ 1,039
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME
STRATEGY FUND MONEY MARKET FUND
------------------ --------------------
SHARES AMOUNT SHARES AMOUNT
------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 577 $ 5,748 20,036 $ 20,037
Shares issued on reinvestment of
distributions........................... 78 773 561 561
Shares redeemed........................... (623) (6,198) (31,385) (31,385)
------ --------- -------- ---------
Net Increase (Decrease)................... 32 $ 323 (10,788) $ (10,787)
====== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
GLOBAL HEALTH FUND TECHNOLOGY FUND SMALL COMPANY FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 2,135 $ 25,482 2,558 $ 25,138 2,823 $ 56,814
Shares issued on reinvestment of
distributions........................... -- -- -- -- 165 3,144
Shares redeemed........................... (193) (2,475) (68) (669) (457) (8,878)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,942 $ 23,007 2,490 $ 24,469 2,531 $ 51,080
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
CAPITAL INTERNATIONAL
APPRECIATION FUND MIDCAP FUND OPPORTUNITIES FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 9,465 $ 309,241 7,347 $ 151,203 1,623 $ 23,373
Shares issued on reinvestment of
distributions........................... 644 19,726 207 4,095 8 100
Shares redeemed........................... (906) (29,232) (386) (7,979) (403) (5,567)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 9,203 $ 299,735 7,168 $ 147,319 1,228 $ 17,906
====== ========= ======== ========= ======== =========
</TABLE>
75
<PAGE> 76
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND
GLOBAL LEADERS FUND STOCK FUND INCOME FUND
-------------------- -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 6,343 $ 118,829 10,500 $ 240,753 3,014 $ 40,620
Shares issued on reinvestment of
distributions........................... 32 597 170 3,898 31 420
Shares redeemed........................... (470) (8,627) (2,193) (49,972) (453) (6,056)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 5,905 $ 110,799 8,477 $ 194,679 2,592 $ 34,984
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND AND
GROWTH FUND ADVISERS FUND HIGH YIELD FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 1,693 $ 27,856 10,045 $ 171,008 778 $ 7,321
Shares issued on reinvestment of
distributions........................... 24 387 365 6,212 44 407
Shares redeemed........................... (673) (10,973) (4,085) (69,335) (649) (6,100)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,044 $ 17,270 6,325 $ 107,885 173 $ 1,628
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME
STRATEGY FUND MONEY MARKET FUND
------------------ --------------------
SHARES AMOUNT SHARES AMOUNT
------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 909 $ 9,083 20,662 $ 20,662
Shares issued on reinvestment of
distributions........................... 56 563 298 298
Shares redeemed........................... (1,122) (11,174) (24,022) (24,022)
------ --------- -------- ---------
Net Increase (Decrease)................... (157) $ (1,528) (3,062) $ (3,062)
====== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
GLOBAL HEALTH FUND TECHNOLOGY FUND SMALL COMPANY FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 308 $ 3,687 641 $ 6,169 1,084 $ 23,085
Shares issued on reinvestment of
distributions........................... -- -- -- -- 105 2,104
Shares redeemed........................... (128) (1,713) (105) (928) (589) (12,027)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 180 $ 1,974 536 $ 5,241 600 $ 13,162
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
CAPITAL INTERNATIONAL
APPRECIATION FUND MIDCAP FUND OPPORTUNITIES FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 962 $ 32,957 2,192 $ 46,197 808 $ 11,905
Shares issued on reinvestment of
distributions........................... 122 3,920 65 1,321 7 93
Shares redeemed........................... (453) (15,531) (516) (10,815) (746) (11,084)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 631 $ 21,346 1,741 $ 36,703 69 $ 914
====== ========= ======== ========= ======== =========
</TABLE>
76
<PAGE> 77
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL GROWTH AND
LEADERS FUND STOCK FUND INCOME FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 440 $ 8,310 162 $ 3,894 2 $ 26
Shares issued on reinvestment of
distributions........................... 2 40 12 286 -- 4
Shares redeemed........................... (115) (2,174) (124) (3,040) (1) (18)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 327 $ 6,176 50 $ 1,140 1 $ 12
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND AND
GROWTH FUND ADVISERS FUND HIGH YIELD FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 285 $ 4,854 492 $ 8,480 137 $ 1,284
Shares issued on reinvestment of
distributions........................... 17 290 89 1,541 18 168
Shares redeemed........................... (446) (7,437) (788) (13,520) (67) (633)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... (144) $ (2,293) (207) $ (3,499) 88 $ 819
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME
STRATEGY FUND MONEY MARKET FUND
------------------ --------------------
SHARES AMOUNT SHARES AMOUNT
------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 339 $ 3,429 27,666 $ 27,667
Shares issued on reinvestment of
distributions........................... 141 1,424 645 645
Shares redeemed........................... (319) (3,202) (18,939) (18,939)
------ --------- -------- ---------
Net Increase (Decrease)................... 161 $ 1,651 9,372 $ 9,373
====== ========= ======== =========
</TABLE>
The following information is for the year ended December 31, 1999:
<TABLE>
<CAPTION>
SMALL CAPITAL
COMPANY FUND APPRECIATION FUND MIDCAP FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 3,761 $ 61,445 17,133 $ 429,550 4,945 $ 72,887
Shares issued on reinvestment of
distributions........................... 303 5,142 1,500 38,949 194 2,855
Shares redeemed........................... (1,540) (23,714) (11,360) (274,058) (466) (6,457)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 2,524 $ 42,873 7,273 $ 194,441 4,673 $ 69,285
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES FUND GLOBAL LEADERS FUND STOCK FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 2,753 $ 37,033 4,366 $ 65,440 20,852 $ 449,995
Shares issued on reinvestment of
distributions........................... 244 3,310 21 325 526 11,448
Shares redeemed........................... (1,587) (21,242) (125) (1,869) (3,146) (68,289)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,410 $ 19,101 4,262 $ 63,896 18,232 $ 393,154
====== ========= ======== ========= ======== =========
</TABLE>
77
<PAGE> 78
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND DIVIDEND AND
INCOME FUND GROWTH FUND ADVISERS FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 4,728 $ 59,180 5,320 $ 89,835 23,552 $ 384,202
Shares issued on reinvestment of
distributions........................... 32 401 417 6,939 1,195 19,492
Shares redeemed........................... (282) (3,523) (2,352) (39,656) (4,160) (68,211)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 4,478 $ 56,058 3,385 $ 57,118 20,587 $ 335,483
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME
HIGH YIELD FUND STRATEGY FUND MONEY MARKET FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............................... 1,126 $ 11,343 5,113 $ 52,408 272,100 $ 272,100
Shares issued on reinvestment of
distributions........................... 103 1,027 278 2,846 1,716 1,716
Shares redeemed........................... (277) (2,740) (4,001) (40,689) (258,577) (258,577)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 952 $ 9,630 1,390 $ 14,565 15,239 $ 15,239
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAPITAL
COMPANY FUND APPRECIATION FUND MIDCAP FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 1,370 $ 21,997 5,486 $ 137,531 2,256 $ 33,110
Shares issued on reinvestment of
distributions........................... 150 2,483 1,126 28,527 82 1,187
Shares redeemed........................... (248) (3,698) (2,686) (61,871) (158) (2,277)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,272 $ 20,782 3,926 $ 104,187 2,180 $ 32,020
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES FUND GLOBAL LEADERS FUND STOCK FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 575 $ 7,648 1,325 $ 19,898 11,838 $ 249,542
Shares issued on reinvestment of
distributions........................... 84 1,112 6 89 343 7,287
Shares redeemed........................... (157) (2,011) (33) (498) (1,699) (36,059)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 502 $ 6,749 1,298 $ 19,489 10,482 $ 220,770
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND DIVIDEND AND
INCOME FUND GROWTH FUND ADVISERS FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 1,246 $ 15,413 1,877 $ 31,365 19,763 $ 319,268
Shares issued on reinvestment of
distributions........................... 9 112 166 2,746 790 12,761
Shares redeemed........................... (65) (813) (1,315) (21,931) (2,886) (46,756)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,190 $ 14,712 728 $ 12,180 17,667 $ 285,273
====== ========= ======== ========= ======== =========
</TABLE>
78
<PAGE> 79
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND INCOME
HIGH YIELD FUND STRATEGY FUND MONEY MARKET FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............................... 683 $ 6,834 1,541 $ 15,918 38,058 $ 38,058
Shares issued on reinvestment of
distributions........................... 23 235 80 813 664 664
Shares redeemed........................... (172) (1,712) (1,018) (10,429) (24,896) (24,896)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 534 $ 5,357 603 $ 6,302 13,826 $ 13,826
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
CAPITAL
SMALL COMPANY FUND APPRECIATION FUND MIDCAP FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 2,061 $ 30,851 7,561 $ 157,605 2,840 $ 41,227
Shares issued on reinvestment of
distributions........................... 90 1,493 284 7,186 67 975
Shares redeemed........................... (456) (5,257) (2,187) (26,456) (233) (2,825)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,695 $ 27,087 5,658 $ 138,335 2,674 $ 39,377
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES FUND GLOBAL LEADERS FUND STOCK FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 2,306 $ 29,954 2,320 $ 35,680 17,712 $ 305,195
Shares issued on reinvestment of
distributions........................... 46 609 8 119 207 4,399
Shares redeemed........................... (1,566) (20,265) (31) (479) (5,753) (67,878)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 786 $ 10,298 2,297 $ 35,320 12,166 $ 241,716
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND DIVIDEND AND
INCOME FUND GROWTH FUND ADVISERS FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 2,347 $ 28,681 3,556 $ 49,110 29,104 $ 384,855
Shares issued on reinvestment of
distributions........................... 13 161 52 859 428 6,978
Shares redeemed........................... (531) (6,104) (1,507) (16,732) (12,322) (139,085)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1,829 $ 22,738 2,101 $ 33,237 17,210 $ 252,748
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME
HIGH YIELD FUND STRATEGY FUND MONEY MARKET FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............................... 2,788 $ 27,549 3,005 $ 30,503 21,618 $ 21,618
Shares issued on reinvestment of
distributions........................... 37 369 54 545 182 182
Shares redeemed........................... (2,170) (21,289) (1,721) (17,363) (13,099) (13,099)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 655 $ 6,629 1,338 $ 13,685 8,701 $ 8,701
====== ========= ======== ========= ======== =========
</TABLE>
79
<PAGE> 80
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAPITAL
COMPANY FUND APPRECIATION FUND MIDCAP FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 1,106 $ 18,224 834 $ 22,250 826 $ 12,005
Shares issued on reinvestment of
distributions........................... 113 1,965 118 3,099 35 507
Shares redeemed........................... (288) (4,307) (288) (7,246) (161) (2,321)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 931 $ 15,882 664 $ 18,103 700 $ 10,191
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES FUND GLOBAL LEADERS FUND STOCK FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 935 $ 12,264 259 $ 3,775 1,195 $ 26,956
Shares issued on reinvestment of
distributions........................... 110 1,514 1 21 14 315
Shares redeemed........................... (320) (4,200) (54) (767) (310) (6,626)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 725 $ 9,578 206 $ 3,029 899 $ 20,645
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND DIVIDEND AND
INCOME FUND GROWTH FUND ADVISERS FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 2 $ 26 613 $ 10,406 723 $ 11,856
Shares issued on reinvestment of
distributions........................... -- 4 46 765 143 2,359
Shares redeemed........................... (1) (15) (291) (4,968) (558) (9,261)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 1 $ 15 368 $ 6,203 308 $ 4,954
====== ========= ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
BOND INCOME
HIGH YIELD FUND STRATEGY FUND MONEY MARKET FUND
------------------ -------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ --------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............................... 249 $ 2,537 2,415 $ 24,740 18,583 $ 18,583
Shares issued on reinvestment of
distributions........................... 17 175 109 1,120 386 386
Shares redeemed........................... (131) (1,320) (713) (7,403) (15,337) (15,337)
------ --------- -------- --------- -------- ---------
Net Increase (Decrease)................... 135 $ 1,392 1,811 $ 18,457 3,632 $ 3,632
====== ========= ======== ========= ======== =========
</TABLE>
8. RECLASSIFICATION OF CAPITAL ACCOUNTS:
In accordance with American Institute of Certified Public Accountants
Statement of Position 93-2, Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies, the Funds have recorded several
reclassifications in their capital accounts. These reclassifications had no
impact on the net asset value of the Funds and are designed generally to
present accumulated undistributed (distribution in excess of) net
investment income and realized gain on investments on a tax basis, which is
considered to be more informative to the shareholder. The reclassifications
are a result of permanent differences between Generally Accepted Accounting
Principles and tax accounting for such items as foreign currency and
passive foreign investment company (PFIC) income classifications, and net
operating losses that reduce capital gain distribution requirements.
Adjustments are made to reflect the impact these items have on current and
future distributions to shareholders. Therefore the source of the Funds'
distributions may be shown in the accompanying Statement of Changes in Net
Assets as from investment income, from net realized gains on investments or
from
80
<PAGE> 81
--------------------------------------------------------------------------------
capital depending on the type of book and tax differences that exist. For
the ten months ended October 31, 2000, the Funds recorded the following
reclassifications to increase (decrease) the accounts listed below.
<TABLE>
<CAPTION>
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTED (DISTRIBUTIONS
(DISTRIBUTIONS IN EXCESS OF)
IN EXCESS OF) NET REALIZED
NET INVESTMENT GAIN ON PAID-IN
INCOME INVESTMENTS SURPLUS
-------------- -------------- ------------
<S> <C> <C> <C>
Global Health Fund.................................... $ 161 $ (161) $ --
Global Technology Fund................................ 438 438 --
Small Company Fund.................................... 2,610 -- (2,610)
Capital Appreciation Fund............................. 14,718 (14,718) --
MidCap Fund........................................... 4,566 (4,566) --
International Opportunities Fund...................... (321) 321 --
Global Leaders Fund................................... 1,061 (1,061) --
Stock Fund............................................ 8,505 (8,505) --
Growth and Income Fund................................ 786 (786) --
Dividend and Growth Fund.............................. (9) 9 --
Advisers Fund......................................... (30) 30 --
High Yield Fund....................................... (7) 7 --
Bond Income Strategy Fund............................. (245) 245 --
</TABLE>
9. CAPITAL LOSS CARRYOVER:
As of October 31, 2000 (tax year-end), the following Funds had capital loss
forwards for U.S. federal tax purposes of approximately:
<TABLE>
<CAPTION>
YEAR OF
FUND AMOUNT EXPIRATION
------------------------------------------------------------ ------- ----------
<S> <C> <C>
High Yield Fund............................................. $ 151 2007
High Yield Fund............................................. 1,611 2008
Bond Income Strategy Fund................................... 1,559 2007
Bond Income Strategy Fund................................... 2,440 2008
</TABLE>
10. LINE OF CREDIT:
The Funds participate in a $500,000,000 committed revolving line of credit
facility. The facility is to be used for temporary or emergency purposes.
Under the arrangement, the Funds are required to own securities having a
market value in excess of 300% of the total bank borrowings. The interest
rate on borrowings varies depending on the nature of the loan. The facility
also requires a fee to be paid based on the amount of the commitment, which
has not been utilized.
As of October 31, 2000, the Funds did not have any borrowings under these
facilities.
81
<PAGE> 82
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
11. REVERSE STOCK SPLIT FOR CLASS C:
On February 11, 1999, a reverse stock split was declared for Class C of
each of the following Funds, using the following reverse split percentages:
<TABLE>
<CAPTION>
REVERSE SPLIT
FUND PERCENTAGES
--------------------------------------------------------- -------------
<S> <C>
Small Company Fund....................................... 80.784331%
Capital Appreciation Fund................................ 50.849102
MidCap Fund.............................................. 89.020270
International Opportunities Fund......................... 81.545064
Stock Fund............................................... 53.974026
Growth and Income Fund................................... 98.582817
Dividend and Growth Fund................................. 62.727844
Advisers Fund............................................ 64.258312
Bond Income Strategy Fund................................ 93.451824
</TABLE>
82
<PAGE> 83
(This page intentionally left blank)
83
<PAGE> 84
THE HARTFORD MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A) --
-----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD GLOBAL HEALTH FUND
From inception May 1, 2000,
through October 31, 2000
Class A...................... $10.00 $(0.01) $ 3.87 $ 3.86 $ -- $ -- $ --
Class B...................... 10.00 (0.04) 3.85 3.81 -- -- --
Class C...................... 10.00 (0.04) 3.85 3.81 -- -- --
Class Y...................... 10.00 0.01 3.88 3.89 -- -- --
THE HARTFORD GLOBAL TECHNOLOGY
FUND
From inception May 1, 2000,
through October 31, 2000
Class A...................... 10.00 (0.05) (1.23) (1.28) -- -- --
Class B...................... 10.00 (0.07) (1.25) (1.32) -- -- --
Class C...................... 10.00 (0.06) (1.26) (1.32) -- -- --
Class Y...................... 10.00 (0.02) (1.25) (1.27) -- -- --
THE HARTFORD SMALL COMPANY FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 20.48 (0.04) (1.47) (1.51) -- (0.89) --
Class B...................... 19.96 (0.11) (1.47) (1.58) -- (0.89) --
Class C...................... 19.97 (0.12) (1.45) (1.57) -- (0.89) --
Class Y...................... 20.84 (0.02) (1.43) (1.45) -- (0.89) --
For the Year Ended December
31, 1999
Class A...................... 13.31 (0.05) 8.52 8.47 -- (1.30) --
Class B...................... 13.09 (0.09) 8.26 8.17 -- (1.30) --
Class C...................... 13.09(f) (0.08)(f) 8.26(f) 8.18(f) --(f) (1.30)(f) --(f)
Class Y...................... 13.47 (0.03) 8.70 8.67 -- (1.30) --
For the Year Ended December
31, 1998
Class A...................... 12.16 (0.06) 1.33 1.27 -- (0.12) --
Class B...................... 12.04 (0.12) 1.29 1.17 -- (0.12) --
Class Y...................... 12.24 (0.03) 1.38 1.35 -- (0.12) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 12.49(f) (0.02)(f) 0.62(f) 0.60(f) --(f) --(f) --(f)
For the Year Ended December
31, 1997
Class A...................... 10.68 (0.02) 2.05 2.03 -- (0.55) --
Class B...................... 10.65 (0.03) 1.97 1.94 -- (0.55) --
Class Y...................... 10.71 (0.01) 2.09 2.08 -- (0.55) --
From inception July 1, 1996
to December 31, 1996
Class A...................... 10.00 (0.02) 1.42 1.40 -- (0.72) --
Class B...................... 10.00 (0.02) 1.39 1.37 -- (0.72) --
Class Y...................... 10.00 -- 1.43 1.43 -- (0.72) --
THE HARTFORD CAPITAL
APPRECIATION FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 31.72 (0.01) 3.15 3.14 -- (1.66) --
Class B...................... 30.92 (0.12) 3.00 2.88 -- (1.66) --
Class C...................... 30.89 (0.15) 3.02 2.87 -- (1.66) --
Class Y...................... 32.27 0.03 3.30 3.33 -- (1.66) --
For the Year Ended December
31, 1999
Class A...................... 20.42 (0.07) 13.28 13.21 -- (1.91) --
Class B...................... 20.08 (0.19) 12.94 12.75 -- (1.91) --
Class C...................... 20.08(f) (0.12)(f) 12.84(f) 12.72(f) --(f) (1.91)(f) --(f)
Class Y...................... 20.66 -- 13.52 13.52 -- (1.91) --
For the Year Ended December
31, 1998
Class A...................... 19.90 (0.10) 0.75 0.65 -- (0.13) --
Class B...................... 19.71 (0.21) 0.71 0.50 -- (0.13) --
Class Y...................... 20.05 (0.06) 0.80 0.74 -- (0.13) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 19.67(f) (0.06)(f) 0.47(f) 0.41(f) --(f) --(f) --(f)
For the Year Ended December
31, 1997
Class A...................... 13.36 (0.03) 7.34 7.31 -- (0.77) --
Class B...................... 13.32 (0.06) 7.22 7.16 -- (0.77) --
Class Y...................... 13.38 (0.03) 7.47 7.44 -- (0.77) --
From inception July 1, 1996
to December 31, 1996
Class A...................... 10.00 (0.03) 3.80 3.77 -- (0.41) --
Class B...................... 10.00 (0.02) 3.75 3.73 -- (0.41) --
Class Y...................... 10.00 -- 3.79 3.79 -- (0.41) --
</TABLE>
---------------
(a) Information presented relates to a share of capital outstanding throughout
the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999 (See Note 11).
The accompanying notes are an integral part of this financial statement.
84
<PAGE> 85
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSETS TO AVERAGE
NET INCREASE NET ASSET AT END OF NET ASSETS
TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- ------------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$ -- $ 3.86 $13.86 38.74%(d) $ 44,917 1.72%(b)
-- 3.81 13.81 38.24(d) 20,574 2.43(b)
-- 3.81 13.81 38.24(d) 26,830 2.40(b)
-- 3.89 13.89 39.04(d) 2,507 1.20(b)
-- (1.28) 8.72 (14.26)(d) 33,221 1.77(b)
-- (1.32) 8.68 (14.65)(d) 15,676 2.46(b)
-- (1.32) 8.68 (14.65)(d) 21,615 2.43(b)
-- (1.27) 8.73 (14.16)(d) 4,677 1.32(b)
(0.89) (2.40) 18.08 (7.70)(d) 164,280 1.50(b)
(0.89) (2.47) 17.49 (8.26)(d) 71,323 2.16(b)
(0.89) (2.46) 17.51 (8.21)(d) 77,337 2.16(b)
(0.89) (2.34) 18.50 (7.27)(d) 46,205 0.96(b)
(1.30) 7.17 20.48 65.66 109,559 1.51
(1.30) 6.87 19.96 64.46 53,358 2.15
(1.30)(f) 6.88(f) 19.97(f) 64.58 37,672 2.20
(1.30) 7.37 20.84 66.37 39,536 0.99
(0.12) 1.15 13.31 10.46 37,623 1.57
(0.12) 1.05 13.09 9.73 18,345 2.22
(0.12) 1.23 13.47 11.05 13,004 1.02
--(f) 0.60(f) 13.09(f) 4.80(d) 2,765 2.46(b)
(0.55) 1.48 12.16 19.28 19,391 1.82
(0.55) 1.39 12.04 18.49 9,694 2.53
(0.55) 1.53 12.24 19.69 9,062 1.30
(0.72) 0.68 10.68 14.11(d) 4,673 4.29(b)
(0.72) 0.65 10.65 13.81(d) 241 20.03(b)
(0.72) 0.71 10.71 14.41(d) 72 115.33(b)
(1.66) 1.48 33.20 10.18(d) 1,309,836 1.32(b)
(1.66) 1.22 32.14 9.59(d) 826,495 1.97(b)
(1.66) 1.21 32.10 9.56(d) 494,391 1.99(b)
(1.66) 1.67 33.94 10.60(d) 89,477 0.80(b)
(1.91) 11.30 31.72 66.76 797,656 1.38
(1.91) 10.84 30.92 65.58 569,201 2.02
(1.91)(f) 10.81(f) 30.89(f) 65.44 191,466 2.09
(1.91) 11.61 32.27 67.49 64,688 0.87
(0.13) 0.52 20.42 3.26 364,951 1.49
(0.13) 0.37 20.08 2.52 290,756 2.15
(0.13) 0.61 20.66 3.68 27,700 0.96
--(f) 0.41(f) 20.08(f) 2.10(d) 15,231 2.29(b)
(0.77) 6.54 19.90 55.11 233,601 1.69
(0.77) 6.39 19.71 54.15 174,392 2.38
(0.77) 6.67 20.05 56.00 26,693 1.13
(0.41) 3.36 13.36 37.75(d) 9,028 4.15(b)
(0.41) 3.32 13.32 37.35(d) 889 9.05(b)
(0.41) 3.38 13.38 37.95(d) 107 93.64(b)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--- ------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- ---------- ---------
<S> <C> <C> <C>
1.65%(b) (0.33)%(b) 92.0%
2.35(b) (1.03)(b) --
2.35(b) (1.03)(b) --
1.20(b) 0.12(b) --
1.66(b) (1.37)(b) 103.69
2.35(b) (2.07)(b) --
2.35(b) (2.07)(b) --
1.20(b) (0.92)(b) --
1.45(b) (0.72)(b) 158.15
2.15(b) (1.42)(b) --
2.15(b) (1.42)(b) --
0.96(b) (0.23)(b) --
1.45 (0.92) 176.74
2.15 (1.61) --
2.15 (1.61) --
0.99 (0.46) --
1.45 (0.79) 266.82
2.15 (1.49) --
1.00 (0.33) --
2.15(b) (1.49)(b) --
1.45 (0.61) 255.37
2.15 (1.30) --
1.00 (0.14) --
1.45(b) (0.60)(b) 69.92
2.15(b) (1.30)(b) --
1.00(b) 0.03(b) --
1.27(b) (0.42)(b) 129.79
1.97(b) (1.12)(b) --
1.99(b) (1.14)(b) --
0.80(b) 0.05(b) --
1.33 (0.61) 168.97
2.02 (1.31) --
2.09 (1.37) --
0.87 (0.16) --
1.44 (0.70) 123.42
2.15 (1.39) --
0.96 (0.27) --
2.15(b) (1.34)(b) --
1.45 (0.80) 119.62
2.15 (1.46) --
1.00 (0.35) --
1.45(b) (0.70)(b) 149.99
2.15(b) (1.53)(b) --
1.00(b) 0.04(b) --
</TABLE>
85
<PAGE> 86
THE HARTFORD MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A) --
-----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD MIDCAP FUND
For the Ten Months Ended
October 31, 2000
Class A...................... $17.78 $(0.03) $ 5.37 $ 5.34 $ -- $(0.70) $ --
Class B...................... 17.54 (0.07) 5.19 5.12 -- (0.70) --
Class C...................... 17.53 (0.10) 5.23 5.13 -- (0.70) --
Class Y...................... 17.94 (0.01) 5.49 5.48 -- (0.70) --
For the Year Ended December
31, 1999
Class A...................... 12.30 (0.03) 6.08 6.05 -- (0.57) --
Class B...................... 12.22 (0.03) 5.92 5.89 -- (0.57) --
Class C...................... 12.21(f) (0.04)(f) 5.93(f) 5.89(f) --(f) (0.57)(f) --(f)
Class Y...................... 12.35 (0.02) 6.18 6.16 -- (0.57) --
For the Year Ended December
31, 1998
Class A...................... 10.00 (0.05) 2.35 2.30 -- -- --
Class B...................... 10.00 (0.10) 2.32 2.22 -- -- --
Class Y...................... 10.00 (0.02) 2.37 2.35 -- -- --
From inception August 1,
1998, through December 31,
1998
Class C...................... 11.23(f) (0.03)(f) 1.01(f) 0.98(f) --(f) --(f) --(f)
THE HARTFORD INTERNATIONAL
OPPORTUNITIES FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 15.43 0.08 (2.42) (2.34) (0.01) (0.05) --
Class B...................... 15.17 0.01 (2.39) (2.38) -- (0.05) --
Class C...................... 15.10 0.07 (2.44) (2.37) -- (0.05) --
Class Y...................... 15.56 0.12 (2.43) (2.31) (0.01) (0.05) --
For the Year Ended December
31, 1999
Class A...................... 11.89 0.06 4.46 4.52 (0.15) (0.83) --
Class B...................... 11.73 0.01 4.32 4.33 (0.06) (0.83) --
Class C...................... 11.74(f) (0.02)(f) 4.33(f) 4.31(f) (0.12)(f) (0.83)(f) --(f)
Class Y...................... 11.97 0.09 4.51 4.60 (0.18) (0.83) --
For the Year Ended December
31, 1998
Class A...................... 10.58 0.07 1.26 1.33 (0.02) -- --
Class B...................... 10.49 0.01 1.23 1.24 -- -- --
Class Y...................... 10.62 0.12 1.27 1.39 (0.04) -- --
From inception August 1,
1998, through December 31,
1998
Class C...................... 12.26(f) (0.01)(f) (0.49)(f) (0.50)(f) (0.03)(f) --(f) --(f)
For the Year Ended December
31, 1997
Class A...................... 10.72 0.09 (0.01) 0.08 (0.05) (0.17) --
Class B...................... 10.69 0.07 (0.06) 0.01 (0.04) (0.17) --
Class Y...................... 10.73 0.15 (0.02) 0.13 (0.07) (0.17) --
From inception July 1, 1996
to December 31, 1996
Class A...................... 10.00 0.02 0.79 0.81 (0.06) (0.03) --
Class B...................... 10.00 (0.01) 0.80 0.79 (0.07) (0.03) --
Class Y...................... 10.00 -- 0.84 0.84 (0.08) (0.03) --
THE HARTFORD GLOBAL LEADERS FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 18.56 -- (0.92) (0.92) -- (0.09) --
Class B...................... 18.40 (0.06) (0.96) (1.02) -- (0.09) --
Class C...................... 18.40 (0.06) (0.95) (1.01) -- (0.09) --
Class Y...................... 18.68 0.03 (0.89) (0.86) -- (0.09) --
For the Year Ended December
31, 1999
Class A...................... 12.67 -- 6.01 6.01 -- (0.12) --
Class B...................... 12.65 (0.02) 5.89 5.87 -- (0.12) --
Class C...................... 12.65 (0.02) 5.89 5.87 -- (0.12) --
Class Y...................... 12.69 0.03 6.08 6.11 -- (0.12) --
From inception September 30,
1998, through December 31,
1998
Class A...................... 10.00 (0.01) 3.03 3.02 -- (0.35) --
Class B...................... 10.00 (0.02) 3.02 3.00 -- (0.35) --
Class C...................... 10.00 (0.02) 3.02 3.00 -- (0.35) --
Class Y...................... 10.00 0.01 3.03 3.04 -- (0.35) --
</TABLE>
---------------
(a) Information presented relates to a share of capital outstanding throughout
the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999 (See Note 11).
The accompanying notes are an integral part of this financial statement.
86
<PAGE> 87
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSETS TO AVERAGE
NET INCREASE NET ASSET AT END OF NET ASSETS
TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- ------------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.70) $ 4.64 $22.42 30.50%(d) $ 425,686 1.48%(b)
(0.70) 4.42 21.96 29.72(d) 185,830 2.15(b)
(0.70) 4.43 21.96 29.72(d) 217,965 2.14(b)
(0.70) 4.78 22.72 31.01(d) 62,343 0.96(b)
(0.57) 5.48 17.78 50.17 118,194 1.51
(0.57) 5.32 17.54 49.10 50,301 2.17
(0.57)(f) 5.32(f) 17.53(f) 49.22 48,310 2.22
(0.57) 5.59 17.94 50.87 17,997 0.97
-- 2.30 12.30 23.12 24,294 1.62
-- 2.22 12.22 22.32 8,403 2.31
-- 2.35 12.35 23.62 3,750 1.12
--(f) 0.98(f) 12.21(f) 8.70(d) 1,077 2.57(b)
(0.06) (2.40) 13.03 (15.18)(d) 89,309 1.60(b)
(0.05) (2.43) 12.74 (15.70)(d) 25,872 2.29(b)
(0.05) (2.42) 12.68 (15.70)(d) 26,912 2.27(b)
(0.06) (2.37) 13.19 (14.91)(d) 22,454 1.06(b)
(0.98) 3.54 15.43 39.13 63,281 1.61
(0.89) 3.44 15.17 38.11 22,835 2.26
(0.95)(f) 3.36(f) 15.10(f) 37.98 13,514 2.31
(1.01) 3.59 15.56 39.63 25,403 1.11
(0.02) 1.31 11.89 12.53 32,014 1.89
-- 1.24 11.73 11.82 11,767 2.56
(0.04) 1.35 11.97 13.11 10,860 1.36
(0.03)(f) (0.53)(f) 11.74(f) (4.05)(d) 1,379 2.83(b)
(0.22) (0.14) 10.58 0.84 15,701 2.30
(0.21) (0.20) 10.49 0.12 7,188 3.03
(0.24) (0.11) 10.62 1.31 6,422 1.76
(0.09) 0.72 10.72 8.14(d) 4,294 5.40(b)
(0.10) 0.69 10.69 7.86(d) 163 32.61(b)
(0.11) 0.73 10.73 8.36(d) 64 126.52(b)
(0.09) (1.01) 17.55 (4.98)(d) 255,959 1.53(b)
(0.09) (1.11) 17.29 (5.56)(d) 75,702 2.22(b)
(0.09) (1.10) 17.30 (5.51)(d) 142,549 2.19(b)
(0.09) (0.95) 17.73 (4.62)(d) 10,001 1.01(b)
(0.12) 5.89 18.56 47.68 84,632 1.62
(0.12) 5.75 18.40 46.64 24,588 2.29
(0.12) 5.75 18.40 46.64 43,012 2.33
(0.12) 5.99 18.68 48.39 4,423 1.10
(0.35) 2.67 12.67 30.36(d) 3,771 2.71(b)
(0.35) 2.65 12.65 30.16(d) 486 3.55(b)
(0.35) 2.65 12.65 30.16(d) 517 3.57(b)
(0.35) 2.69 12.69 30.57(d) 392 2.46(b)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--- ------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- ---------- ---------
<S> <C> <C> <C>
1.43%(b) (0.80)%(b) 110.37%
2.15(b) (1.52)(b) --
2.14(b) (1.51)(b) --
0.96(b) (0.33)(b) --
1.45 (0.79) 122.52
2.15 (1.48) --
2.15 (1.48) --
0.97 (0.31) --
1.45 (0.78) 139.02
2.15 (1.48) --
1.00 (0.33) --
2.15(b) (1.45)(b) --
1.55(b) 0.64(b) 120.85
2.29(b) (0.09)(b) --
2.27(b) (0.07)(b) --
1.06(b) 1.13(b) --
1.56 0.61 128.26
2.26 (0.09) --
2.31 (0.13) --
1.11 1.07 --
1.65 0.69 148.58
2.35 0.01 --
1.20 1.17 --
2.35(b) (0.71)(b) --
1.65 0.88 59.16
2.35 (0.05) --
1.20 1.33 --
1.65(b) 0.51(b) 21.51
2.35(b) (0.86)(b) --
1.20(b) 0.57(b) --
1.48(b) (0.06)(b) 290.04
2.22(b) (0.80)(b) --
2.19(b) (0.77)(b) --
1.01(b) 0.41(b) --
1.57 (0.15) 203.74
2.29 (0.86) --
2.33 (0.89) --
1.10 0.32 --
1.65(b) (0.19)(b) 49.04
2.35(b) (0.92)(b) --
2.35(b) (0.90)(b) --
1.20(b) 0.31(b) --
</TABLE>
87
<PAGE> 88
THE HARTFORD MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A) --
-----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD STOCK FUND
For the Ten Months Ended
October 31, 2000
Class A...................... $23.64 $(0.03) $ -- $(0.03) $ -- $(0.21) $ --
Class B...................... 23.06 (0.12) (0.04) (0.16) -- (0.21) --
Class C...................... 23.05 (0.11) (0.05) (0.16) -- (0.21) --
Class Y...................... 23.99 0.05 0.02 0.07 -- (0.21) --
For the Year Ended December
31, 1999
Class A...................... 19.70 -- 4.36 4.36 -- (0.42) --
Class B...................... 19.36 (0.07) 4.19 4.12 -- (0.42) --
Class C...................... 19.36(f) (0.08)(f) 4.19(f) 4.11(f) --(f) (0.42)(f) --(f)
Class Y...................... 19.89 (0.01) 4.53 4.52 -- (0.42) --
For the Year Ended December
31, 1998
Class A...................... 15.16 (0.01) 4.75 4.74 -- (0.19) (0.01)
Class B...................... 15.01 (0.05) 4.60 4.55 -- (0.19) (0.01)
Class Y...................... 15.25 0.06 4.78 4.84 -- (0.19) (0.01)
From inception August 1,
1998, through December 31,
1998
Class C...................... 18.53(f) (0.02)(f) 1.22(f) 1.20(f) --(f) (0.35)(f) (0.02)(f)
For the Year Ended December
31, 1997
Class A...................... 11.53 -- 3.66 3.66 -- (0.03) --
Class B...................... 11.50 (0.02) 3.56 3.54 -- (0.03) --
Class Y...................... 11.55 0.03 3.70 3.73 -- (0.03) --
From inception July 1, 1996
to December 31, 1996
Class A...................... 10.00 0.02 1.53 1.55 (0.02) -- --
Class B...................... 10.00 -- 1.52 1.52 (0.02) -- --
Class Y...................... 10.00 0.01 1.57 1.58 (0.03) -- --
THE HARTFORD GROWTH AND INCOME
FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 13.72 (0.02) 0.04 0.02 -- (0.11) --
Class B...................... 13.58 (0.06) (0.01) (0.07) -- (0.11) --
Class C...................... 13.58 (0.06) -- (0.06) -- (0.11) --
Class Y...................... 13.83 0.02 0.04 0.06 -- (0.11) --
For the Year Ended December
31, 1999
Class A...................... 11.45 0.01 2.36 2.37 -- (0.10) --
Class B...................... 11.41 (0.02) 2.29 2.27 -- (0.10) --
Class C...................... 11.41(f) (0.03)(f) 2.30(f) 2.27(f) --(f) (0.10)(f) --(f)
Class Y...................... 11.48 0.06 2.39 2.45 -- (0.10) --
From inception April 30,
1998, through December 31,
1998
Class A...................... 10.00 0.02 1.45 1.47 -- -- (0.02)
Class B...................... 10.00 (0.01) 1.43 1.42 -- -- (0.01)
Class Y...................... 10.00 0.05 1.46 1.51 -- -- (0.03)
From inception August 1,
1998, through December 31,
1998
Class C...................... 10.14(f) 0.01(f) 1.29(f) 1.30(f) --(f) --(f) (0.03)(f)
THE HARTFORD DIVIDEND AND GROWTH
FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 16.85 0.15 0.98 1.13 (0.12) (0.08) --
Class B...................... 16.69 0.04 0.98 1.02 (0.04) (0.08) --
Class C...................... 16.67 0.07 0.95 1.02 (0.04) (0.08) --
Class Y...................... 16.96 0.22 1.01 1.23 (0.16) (0.08) --
For the Year Ended December
31, 1999
Class A...................... 16.62 0.15 0.60 0.75 (0.17) (0.35) --
Class B...................... 16.47 0.04 0.58 0.62 (0.05) (0.35) --
Class C...................... 16.48(f) 0.04(f) 0.58(f) 0.62(f) (0.08)(f) (0.35)(f) --(f)
Class Y...................... 16.69 0.21 0.63 0.84 (0.22) (0.35) --
For the Year Ended December
31, 1998
Class A...................... 14.72 0.15 1.97 2.12 (0.15) (0.07) --
Class B...................... 14.61 0.06 1.92 1.98 (0.05) (0.07) --
Class Y...................... 14.77 0.24 1.94 2.18 (0.19) (0.07) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 15.94(f) 0.05(f) 0.70(f) 0.75(f) (0.10)(f) (0.11)(f) --(f)
For the Year Ended December
31, 1997
Class A...................... 11.45 0.13 3.40 3.53 (0.12) (0.14) --
Class B...................... 11.40 0.13 3.30 3.43 (0.08) (0.14) --
Class Y...................... 11.46 0.21 3.39 3.60 (0.15) (0.14) --
From inception July 1, 1996
to December 31, 1996
Class A...................... 10.00 0.07 1.46 1.53 (0.06) (0.02) --
Class B...................... 10.00 0.01 1.48 1.49 (0.07) (0.02) --
Class Y...................... 10.00 0.02 1.53 1.55 (0.07) (0.02) --
</TABLE>
---------------
(a) Information presented relates to a share of capital outstanding throughout
the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999 (See Note 11).
The accompanying notes are an integral part of this financial statement.
88
<PAGE> 89
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSETS TO AVERAGE
NET INCREASE NET ASSET AT END OF NET ASSETS
TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- ------------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.21) $(0.24) $23.40 (0.14)%(d) $1,067,970 1.32%(b)
(0.21) (0.37) 22.69 (0.71)(d) 578,402 1.99(b)
(0.21) (0.37) 22.68 (0.71)(d) 492,996 1.98(b)
(0.21) (0.14) 23.85 0.28(d) 32,123 0.80(b)
(0.42) 3.94 23.64 22.31 752,763 1.38
(0.42) 3.70 23.06 21.46 462,318 2.03
(0.42)(f) 3.69(f) 23.05(f) 21.40 305,566 2.07
(0.42) 4.10 23.99 22.91 31,129 0.91
(0.20) 4.54 19.70 31.33 268,226 1.49
(0.20) 4.35 19.36 30.38 185,205 2.16
(0.20) 4.64 19.89 31.80 7,919 0.96
(0.37)(f) 0.83(f) 19.36(f) 6.60(d) 36,039 2.24(b)
(0.03) 3.63 15.16 31.78 65,763 1.69
(0.03) 3.51 15.01 30.82 35,294 2.38
(0.03) 3.70 15.25 32.33 5,510 1.11
(0.02) 1.53 11.53 15.50(d) 6,273 4.01(b)
(0.02) 1.50 11.50 15.20(d) 1,254 7.76(b)
(0.03) 1.55 11.55 15.80(d) 44 133.50(b)
(0.11) (0.09) 13.63 0.15(d) 197,176 1.43(b)
(0.11) (0.18) 13.40 (0.51)(d) 41,126 2.11(b)
(0.11) (0.17) 13.41 (0.44)(d) 63,650 2.09(b)
(0.11) (0.05) 13.78 0.44(d) 490 0.95(b)
(0.10) 2.27 13.72 20.80 74,764 1.49
(0.10) 2.17 13.58 20.00 20,375 2.13
(0.10)(f) 2.17(f) 13.58(f) 19.98 29,265 2.16
(0.10) 2.35 13.83 21.45 480 0.93
(0.02) 1.45 11.45 14.78(d) 11,120 1.63(b)
(0.01) 1.41 11.41 14.21(d) 3,538 2.32(b)
(0.03) 1.48 11.48 15.18(d) 386 1.20(b)
(0.03)(f) 1.27(f) 11.41(f) 12.80(d) 3,726 2.38(b)
(0.20) 0.93 17.78 6.77(d) 294,903 1.36(b)
(0.11) 0.91 17.60 6.17(d) 118,936 2.03(b)
(0.12) 0.90 17.57 6.17(d) 63,503 2.03(b)
(0.23) 1.00 17.96 7.37(d) 22,441 0.85(b)
(0.52) 0.23 16.85 4.57 242,054 1.38
(0.40) 0.22 16.69 3.82 121,977 2.02
(0.43)(f) 0.19(f) 16.67(f) 3.76 42,869 2.07
(0.57) 0.27 16.96 5.10 23,616 0.87
(0.22) 1.90 16.62 14.47 182,495 1.43
(0.12) 1.86 16.47 13.62 108,344 2.10
(0.26) 1.92 16.69 14.86 17,098 0.91
(0.21)(f) 0.54(f) 16.48(f) 4.82(d) 9,682 2.20(b)
(0.26) 3.27 14.72 30.99 67,861 1.64
(0.22) 3.21 14.61 30.20 33,730 2.34
(0.29) 3.31 14.77 31.59 13,236 1.09
(0.08) 1.45 11.45 15.29(d) 6,083 4.17(b)
(0.09) 1.40 11.40 14.82(d) 33,741 12.97(b)
(0.09) 1.46 11.46 15.49(d) 13,241 141.53(b)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--- ------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- ---------- ---------
<S> <C> <C> <C>
1.27%(b) (0.19)%(b) 37.85%
1.99(b) (0.90)(b) --
1.98(b) (0.90)(b) --
0.80(b) 0.28(b) --
1.33 (0.06) 33.62
2.03 (0.75) --
2.07 (0.78) --
0.91 0.36 --
1.44 (0.07) 37.03
2.15 (0.77) --
0.96 0.36 --
2.15(b) (0.76)(b) --
1.45 0.06 42.83
2.15 (0.66) --
1.00 0.53 --
1.45(b) 0.71(b) 11.87
2.15(b) (0.12)(b) --
1.00(b) 1.37(b) --
1.38(b) (0.17)(b) 62.61
2.11(b) (0.90)(b) --
2.09(b) (0.88)(b) --
0.95(b) 0.26(b) --
1.44 0.01 52.98
2.13 (0.68) --
2.15 (0.69) --
0.93 0.51 --
1.45(b) 0.23(b) 35.10
2.15(b) (0.47)(b) --
1.00(b) 0.76(b) --
2.15(b) (0.53)(b) --
1.31(b) 0.99(b) 56.24
2.03(b) 0.27(b) --
2.03(b) 0.27(b) --
0.85(b) 1.45(b) --
1.33 0.94 50.21
2.02 0.25 --
2.07 0.21 --
0.87 1.42 --
1.38 1.08 46.43
2.10 0.39 --
0.91 1.53 --
2.10(b) 0.23(b) --
1.40 1.42 28.75
2.10 0.69 --
0.95 1.83 --
1.40(b) 1.95(b) 29.80
2.10(b) 0.82(b) --
0.95(b) 2.41(b) --
</TABLE>
89
<PAGE> 90
THE HARTFORD MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A) --
-----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD ADVISERS FUND
For the Ten Months Ended
October 31, 2000
Class A...................... $17.02 $ 0.24 $ 0.19 $ 0.43 $(0.22) $(0.16) $ --
Class B...................... 16.87 0.15 0.17 0.32 (0.13) (0.16) --
Class C...................... 17.02 0.15 0.17 0.32 (0.13) (0.16) --
Class Y...................... 17.16 0.33 0.16 0.49 (0.25) (0.16) --
For the Year Ended December
31, 1999
Class A...................... 15.71 0.27 1.60 1.87 (0.25) (0.31) --
Class B...................... 15.59 0.16 1.58 1.74 (0.15) (0.31) --
Class C...................... 15.73(f) 0.17(f) 1.58(f) 1.75(f) (0.15)(f) (0.31)(f) --(f)
Class Y...................... 15.80 0.35 1.61 1.96 (0.29) (0.31) --
For the Year Ended December
31, 1998
Class A...................... 13.41 0.23 2.58 2.81 (0.25) (0.26) --
Class B...................... 13.33 0.15 2.54 2.69 (0.17) (0.26) --
Class Y...................... 13.46 0.29 2.59 2.88 (0.28) (0.26) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 15.56(f) 0.16(f) 0.64(f) 0.80(f) (0.22)(f) (0.40)(f) --(f)
For the Year Ended December
31, 1997
Class A...................... 11.08 0.16 2.41 2.57 (0.17) (0.07) --
Class B...................... 11.05 0.16 2.31 2.47 (0.12) (0.07) --
Class Y...................... 11.10 0.31 2.32 2.63 (0.20) (0.07) --
From inception July 1, 1996
to December 31, 1996
Class A...................... 10.00 0.09 1.07 1.16 (0.08) -- --
Class B...................... 10.00 0.02 1.11 1.13 (0.08) -- --
Class Y...................... 10.00 0.03 1.16 1.19 (0.09) -- --
THE HARTFORD HIGH YIELD FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 9.75 0.66 (0.69) (0.03) (0.66) -- --
Class B...................... 9.74 0.62 (0.71) (0.09) (0.60) -- --
Class C...................... 9.74 0.61 (0.70) (0.09) (0.60) -- --
Class Y...................... 9.78 0.69 (0.69) -- (0.68) -- --
For the Year Ended December
31, 1999
Class A...................... 10.15 0.75 (0.40) 0.35 (0.75) -- --
Class B...................... 10.14 0.68 (0.40) 0.28 (0.68) -- --
Class C...................... 10.14 0.68 (0.40) 0.28 (0.68) -- --
Class Y...................... 10.16 0.78 (0.39) 0.39 (0.77) -- --
From inception September 30,
1998, through December 31,
1998
Class A...................... 10.00 0.19 0.13 0.32 (0.17) -- --
Class B...................... 10.00 0.16 0.14 0.30 (0.16) -- --
Class C...................... 10.00 0.16 0.14 0.30 (0.16) -- --
Class Y...................... 10.00 0.21 0.13 0.34 (0.18) -- --
THE HARTFORD BOND INCOME
STRATEGY FUND
For the Ten Months Ended
October 31, 2000
Class A...................... 9.93 0.50 0.19 0.69 (0.48) -- --
Class B...................... 9.90 0.43 0.20 0.63 (0.43) -- --
Class C...................... 9.93 0.44 0.20 0.64 (0.43) -- --
Class Y...................... 9.99 0.54 0.20 0.74 (0.51) -- --
For the Year Ended December
31, 1999
Class A...................... 10.76 0.54 (0.83) (0.29) (0.52) (0.02) --
Class B...................... 10.72 0.47 (0.82) (0.35) (0.45) (0.02) --
Class C...................... 10.76(f) 0.47(f) (0.82)(f) (0.35)(f) (0.46)(f) (0.02)(f) --(f)
Class Y...................... 10.81 0.55 (0.80) (0.25) (0.55) (0.02) --
For the Year Ended December
31, 1998
Class A...................... 10.61 0.54 0.23 0.77 (0.54) (0.08) --
Class B...................... 10.58 0.47 0.22 0.69 (0.47) (0.08) --
Class Y...................... 10.64 0.58 0.24 0.82 (0.57) (0.08) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 10.70(f) 0.19(f) 0.15(f) 0.34(f) (0.21)(f) (0.07)(f) --(f)
For the Year Ended December
31, 1997
Class A...................... 10.26 0.57 0.50 1.07 (0.56) (0.16) --
Class B...................... 10.25 0.53 0.46 0.99 (0.50) (0.16) --
Class Y...................... 10.27 0.58 0.54 1.12 (0.59) (0.16) --
From inception July 1, 1996
to December 31, 1996
Class A...................... 10.00 0.26 0.31 0.57 (0.25) (0.06) --
Class B...................... 10.00 0.20 0.34 0.54 (0.23) (0.06) --
Class Y...................... 10.00 0.28 0.31 0.59 (0.26) (0.06) --
</TABLE>
---------------
(a) Information presented relates to a share of capital outstanding throughout
the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999 (See Note 11).
The accompanying notes are an integral part of this financial statement.
90
<PAGE> 91
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSETS TO AVERAGE
NET INCREASE NET ASSET AT END OF NET ASSETS
TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- ------------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.38) $ 0.05 $17.07 2.52%(d) $ 893,954 1.26%(b)
(0.29) 0.03 16.90 1.89(d) 631,930 1.92(b)
(0.29) 0.03 17.05 1.89(d) 432,171 1.92(b)
(0.41) 0.08 17.24 2.90(d) 64,889 0.75(b)
(0.56) 1.31 17.02 12.08 693,136 1.31
(0.46) 1.28 16.87 11.29 555,338 1.97
(0.46)(f) 1.29(f) 17.02(f) 11.29 323,631 1.99
(0.60) 1.36 17.16 12.62 68,133 0.79
(0.51) 2.30 15.71 21.09 316,435 1.43
(0.43) 2.26 15.59 20.27 237,959 2.11
(0.54) 2.34 15.80 21.62 57,891 0.90
(0.62)(f) 0.17(f) 15.73(f) 5.25(d) 54,907 2.18(b)
(0.24) 2.33 13.41 23.30 98,633 1.60
(0.19) 2.28 13.33 22.44 39,334 2.31
(0.27) 2.36 13.46 23.80 39,773 1.03
(0.08) 1.08 11.08 11.56(d) 14,347 2.99(b)
(0.08) 1.05 11.05 11.28(d) 1,499 6.71(b)
(0.09) 1.10 11.10 11.88(d) 34 144.82(b)
(0.66) (0.69) 9.06 (0.35)(d) 23,214 1.38(b)
(0.60) (0.69) 9.05 (0.92)(d) 7,929 2.04(b)
(0.60) (0.69) 9.05 (0.90)(d) 9,534 2.04(b)
(0.68) (0.68) 9.10 0.02(d) 2,955 0.89(b)
(0.75) (0.40) 9.75 3.47 17,465 1.41
(0.68) (0.40) 9.74 2.80 7,436 2.08
(0.68) (0.40) 9.74 2.81 8,573 2.09
(0.77) (0.38) 9.78 3.98 2,314 0.90
(0.17) 0.15 10.15 3.33(d) 8,507 1.58(b)
(0.16) 0.14 10.14 3.09(d) 2,322 2.31(b)
(0.16) 0.14 10.14 3.08(d) 2,278 2.31(b)
(0.18) 0.16 10.16 3.51(d) 1,034 1.17(b)
(0.48) 0.21 10.14 7.17(d) 37,290 1.29(b)
(0.43) 0.20 10.10 6.48(d) 22,197 1.95(b)
(0.43) 0.21 10.14 6.55(d) 16,886 1.94(b)
(0.51) 0.23 10.22 7.60(d) 30,334 0.77(b)
(0.54) (0.83) 9.93 (2.71) 57,320 1.29
(0.47) (0.82) 9.90 (3.30) 21,442 1.94
(0.48)(f) (0.83)(f) 9.93(f) (3.36) 18,136 1.97
(0.57) (0.82) 9.99 (2.31) 28,052 0.80
(0.62) 0.15 10.76 7.48 47,143 1.32
(0.55) 0.14 10.72 6.70 16,772 2.01
(0.65) 0.17 10.81 7.98 10,766 0.84
(0.27)(f) 0.06(f) 10.76(f) 3.19(d) 5,420 2.13(b)
(0.72) 0.35 10.61 10.80 28,589 1.49
(0.66) 0.33 10.58 9.96 5,745 2.19
(0.75) 0.37 10.64 11.30 5,756 1.01
(0.31) 0.26 10.26 5.73(d) 10,925 2.77(b)
(0.29) 0.25 10.25 5.38(d) 124 22.36(b)
(0.32) 0.27 10.27 5.95(d) 5 185.34(b)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--- ------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- ---------- ---------
<S> <C> <C> <C>
1.21%(b) 1.76%(b) 38.37%
1.92(b) 1.05(b) --
1.92(b) 1.05(b) --
0.75(b) 2.22(b) --
1.26 1.72 34.63
1.97 1.00 --
1.99 0.99 --
0.79 2.18 --
1.38 1.67 40.24
2.10 0.98 --
0.90 2.09 --
2.10(b) 1.06(b) --
1.40 1.54 38.62
2.10 0.80 --
0.95 2.08 --
1.40(b) 2.13(b) 19.75
2.10(b) 1.24(b) --
0.95(b) 2.75(b) --
1.33(b) 8.55(b) 57.19
2.04(b) 7.84(b) --
2.04(b) 7.83(b) --
0.89(b) 8.99(b) --
1.36 7.74 52.96
2.08 7.03 --
2.09 7.01 --
0.90 8.20 --
1.40(b) 7.06(b) 10.85
2.10(b) 6.50(b) --
2.10(b) 6.49(b) --
0.95(b) 7.48(b) --
1.24(b) 5.88(b) 139.94
1.95(b) 5.17(b) --
1.94(b) 5.18(b) --
0.77(b) 6.34(b) --
1.24 5.32 113.37
1.94 4.62 --
1.95 4.62 --
0.80 5.77 --
1.25 5.04 135.01
1.95 4.32 --
0.80 5.48 --
1.95(b) 4.13(b) --
1.25 5.59 220.45
1.95 4.85 --
0.80 5.98 --
1.25(b) 5.72(b) 75.52
1.95(b) 5.22(b) --
0.80(b) 6.17(b) --
</TABLE>
91
<PAGE> 92
THE HARTFORD MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA(A) --
-----------------------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET UNREALIZED TOTAL DIVIDENDS FROM
VALUE AT NET GAIN FROM FROM NET REALIZED DISTRIBUTIONS
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT CAPITAL FROM
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD MONEY MARKET FUND
For the Ten Months Ended
October 31, 2000
Class A...................... $ 1.00 $ 0.04 $ -- $ 0.04 $(0.04) $ -- $ --
Class B...................... 1.00 0.04 -- 0.04 (0.04) -- --
Class C...................... 1.00 0.04 -- 0.04 (0.04) -- --
Class Y...................... 1.00 0.05 -- 0.05 (0.05) -- --
For the Year Ended December
31, 1999
Class A...................... 1.00 0.04 -- 0.04 (0.04) -- --
Class B...................... 1.00 0.04 -- 0.04 (0.04) -- --
Class C...................... 1.00 0.04 -- 0.04 (0.04) -- --
Class Y...................... 1.00 0.05 -- 0.05 (0.05) -- --
For the Year Ended December
31, 1998
Class A...................... 1.00 0.05 -- 0.05 (0.05) -- --
Class B...................... 1.00 0.04 -- 0.04 (0.04) -- --
Class Y...................... 1.00 0.05 -- 0.05 (0.05) -- --
From inception August 1,
1998, through December 31,
1998
Class C...................... 1.00 0.02 -- 0.02 (0.02) -- --
For the Year Ended December
31, 1997
Class A...................... 1.00 0.05 -- 0.05 (0.05) -- --
Class Y...................... 1.00 0.05 -- 0.05 (0.05) -- --
From inception August 22,
1997 to December 31, 1997
Class B...................... 1.00 0.01 -- 0.01 (0.01) -- --
From inception July 1, 1996
to December 31, 1996
Class A...................... 1.00 0.02 -- 0.02 (0.02) -- --
Class Y...................... 1.00 0.02 -- 0.02 (0.02) -- --
</TABLE>
---------------
(a) Information presented relates to a share of capital outstanding throughout
the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999 (See Note 11).
The accompanying notes are an integral part of this financial statement.
92
<PAGE> 93
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
---------------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSETS TO AVERAGE
NET INCREASE NET ASSET AT END OF NET ASSETS
TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN(C) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- ------------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.04) $ -- $ 1.00 4.54%(d) $ 43,897 1.20%(b)
(0.04) -- 1.00 3.94(d) 14,974 1.85(b)
(0.04) -- 1.00 3.93(d) 6,842 1.85(b)
(0.05) -- 1.00 4.94(d) 18,325 0.65(b)
(0.04) -- 1.00 4.32 44,663 1.15
(0.04) -- 1.00 3.59 25,762 1.81
(0.04) -- 1.00 3.59 9,904 1.84
(0.05) -- 1.00 4.80 8,953 0.64
(0.05) -- 1.00 4.69 29,424 1.25
(0.04) -- 1.00 3.97 11,936 1.86
(0.05) -- 1.00 5.16 5,320 0.71
(0.02) -- 1.00 1.58(d) 1,203 2.02(b)
(0.05) -- 1.00 4.73 22,578 1.28
(0.05) -- 1.00 5.23 2,638 0.82
(0.01) -- 1.00 1.45(d) 4,449 3.63(b)
(0.02) -- 1.00 2.01(d) 10,754 2.75(b)
(0.02) -- 1.00 2.34(d) 0.30 3,496.38(b)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
--- ------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS INCOME PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(E)
----------------- ---------- ---------
<S> <C> <C> <C>
1.00%(b) 5.35%(b) N/A%
1.70(b) 4.65(b) --
1.70(b) 4.65(b) --
0.55(b) 5.80(b) --
1.00 4.25 N/A
1.70 3.55 --
1.70 3.56 --
0.55 4.70 --
1.00 4.57 N/A
1.70 3.83 --
0.55 4.99 --
1.70(b) 3.57(b) --
1.00 4.67 N/A
0.55 5.13 --
1.70(b) 3.92(b) --
1.00(b) 4.49(b) N/A
0.55(b) 4.56(b) --
</TABLE>
93
<PAGE> 94
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
THE HARTFORD MUTUAL FUNDS, INC.:
--------------------------------------------------------------------------------
We have audited the accompanying statements of net assets, including the
statements of assets and liabilities, where presented, of The Hartford Mutual
Funds, Inc. (a Maryland Corporation) (consisting of The Hartford Global Health,
The Hartford Global Technology, The Hartford Small Company, The Hartford Capital
Appreciation, The Hartford MidCap, The Hartford International Opportunities, The
Hartford Global Leaders, The Hartford Stock, The Hartford Growth and Income, The
Hartford Dividend and Growth, The Hartford Advisers, The Hartford High Yield,
The Hartford Bond Income Strategy and The Hartford Money Market Funds) (the
Funds) as of October 31, 2000, and the related statements of operations for the
periods presented in the ten months ended October 31, 2000, the statements of
changes in net assets for the periods presented in the ten months ended October
31, 2000 and the year ended December 31, 1999 and the financial highlights for
the periods presented in the four years and ten months ended October 31, 2000.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 2000, by correspondence with the custodian bank. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds comprising The Hartford Mutual Funds, Inc. as of October
31, 2000 and the results of their operations, the changes in their net assets
and their financial highlights for the periods presented in conformity with
accounting principles generally accepted in the United States.
Hartford, Connecticut
December 8, 2000 ARTHUR ANDERSEN LLP
94
<PAGE> 95
THE HARTFORD MUTUAL FUNDS, INC.
FOR THE TEN MONTHS ENDED OCTOBER 31, 2000
($000 OMITTED)
--------------------------------------------------------------------------------
TAX INFORMATION NOTICE: (UNAUDITED)
For the ten months ended October 31, 2000, the following Funds distributed
long-term capital gain dividends as follows:
<TABLE>
<S> <C>
Small Company Fund.......................................... $ 1,171
Capital Appreciation Fund................................... 1,635
MidCap Fund................................................. 3,235
International Opportunities Fund............................ 346
Stock Fund.................................................. 15,007
Growth and Income Fund...................................... 909
Dividend and Growth Fund.................................... 2,022
Advisers Fund............................................... 16,122
</TABLE>
The following Funds designated a percent of their ordinary dividends paid
during the ten months ended October 31, 2000 (including short-term capital
gains distributions) as eligible for the dividends received deductions for
corporate shareholders as follows:
<TABLE>
<CAPTION>
PERCENT OF DIVIDENDS PAID
ELIGIBLE FOR THE DIVIDENDS
RECEIVED DEDUCTION
--------------------------
<S> <C>
Global Leaders Fund......................................... 14.29%
Growth and Income Fund...................................... 30.17
Dividend and Growth Fund.................................... 100.00
Advisers Fund............................................... 39.13
</TABLE>
95
