<PAGE> 1
THE
HARTFORD
SEMI-ANNUAL REPORT
June 30, 2000
- Manager Discussions
- Financials
<PAGE> 2
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
June 30, 2000:
The Hartford Global Health Fund 16
The Hartford Global Technology Fund 18
The Hartford Small Company Fund 20
The Hartford Capital Appreciation Fund 23
The Hartford MidCap Fund 27
The Hartford International Opportunities Fund 29
The Hartford Global Leaders Fund 33
The Hartford Stock Fund 36
The Hartford Growth and Income Fund 38
The Hartford Dividend and Growth Fund 41
The Hartford Advisers Fund 44
The Hartford High Yield Fund 48
The Hartford Bond Income Strategy Fund 53
The Hartford Money Market Fund 57
Statement of Operations for the Period Ended June 30, 2000 60
Statement of Changes in Net Assets for the Period Ended June 30,
2000 62
Statement of Changes in Net Assets for the Year Ended December 31,
1999 64
Notes to Financial Statements 66
Financial Highlights 86
<PAGE> 3
The Hartford Global Health Fund
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
Vice President
Wellington Management Company, LLP
Kirk J. Mayer
Assistant Vice President
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Global Health Fund returned 19.8% since inception (May 1, 2000)
through the period ending June 30, 2000. The Fund's return exceeded that of the
Goldman Sachs Health Care Index of 14.6%, and was in line with the Lipper
Biotechnology & Health Average of 19.6% over the period.
Q.
Why Did The Fund Perform This Way?
During the second quarter, strength was exhibited throughout the healthcare
sector, with meaningful contributions from essentially all of the sub-sectors.
Health care as a sector significantly outperformed the general stock market
during the second quarter. The Portfolio's current sub-sector emphasis reflects
our opinion as to where growth opportunities are not adequately reflected in
current stock prices.
The Portfolio's sub-sector weightings were in line with the Goldman Sachs Health
Care Index. The analysts remained comparatively optimistic about health care
services and medical product stocks as indicated by the overweight positions.
The pharmaceuticals & biotech sub-sector weighting was moderately below average,
given our view that the recent strong rebound in biotech stocks more than
adequately reflects their bright growth prospects. Finally, the genomics & life
science weighting was essentially in line with the benchmark.
Q.
What Is Your Outlook For The Second Half of 2000?
We believe all of these sub-sectors benefit from aging demographics, technology
breakthroughs, internet and information technology developments, and geographic
expansion. Given future changes in absolute and relative price performance for
stocks in the different sub-sectors, the Portfolio's weights will change
accordingly to exploit developing investment opportunities. There are many
fundamentally attractive companies within the global healthcare sector that are
candidates for future investment. We are very optimistic about the health care
sector's growth outlook.
[Chart]
Performance Overview
5/1/00 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Global Health Fund Goldman Sachs Health
4/30 $ 9,450 starting value $10,000 starting value
5/31 $ 9,620 $10,332
6/30 $11,323 $11,456
Returns (Inception 5/1/00)
non-sales charge adjusted sales charge adjusted
Cumulative Since Inception(1) Cumulative Since Inception(2)
Global Health A 19.82% 13.23%
Global Health B 19.62% 14.62%
Global Health C 19.62% 17.42%
Goldman Sachs Health 14.56%
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 $11,962 on 6/30/00 ($11,462 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 $11,842 on 6/30/00 ($11,742 with a redemption
at the end of the period.)
<PAGE> 4
The Hartford Global Technology Fund
Portfolio Managers
Scott E. Simpson
Vice President
Wellington Management Company, LLP
John F. Averill, CFA
Vice President
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
Q.
How Did The Fund Perform?
The Hartford Global Technology Fund returned 3.8% since inception (May 1, 2000)
through the period ending June 30, 2000. The Fund's return exceeded that of the
Goldman Sachs Technology Composite Index, which returned 1.4% and the Lipper
Science & Technology Average, which returned 1.9% over the period.
Q.
Why Did The Fund Perform This Way?
Over the last three months, all sectors of technology experienced weakness.
However, the software and internet stocks fared the worst. After several months
of strong gains, our investments in the networking & telecommunications
sub-sector also weakened and our holdings in the PC hardware & semiconductors
sub-sector declined modestly. Seeing some incremental opportunities, the team
took advantage of the weakness to add to positions in the telecommunications
equipment, software and internet sectors given their superior growth
characteristics.
Q.
What Is Your Outlook For The Second Half of 2000?
While we continue to believe this 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. In particular, we remain concerned
that rates may need to increase further and that valuations for some leading
technology companies continue to look stretched. In addition, we are seeing some
signs of weakness in the consumer markets and at the margin some easing of
demand for wireless technologies. As a result, we continue to focus our
attention on infrastructure plays where demand remains robust and valuations
look much more attractive.
Performance Overview
5/1/00 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Global Technology Fund Goldman Sachs Technology
4/30 $9,450 starting value $10,000 starting value
5/31 $8,512 $8,780
6/30 $9,812 $9,860
Returns (Inception 5/1/00)
non-sales charge adjusted sales charge adjusted
Cumulative Since Inception(1) Cumulative Since Inception(2)
Global Tech A 3.83% (1.88%)
Global Tech B 3.74% (1.26%)
Global Tech C 3.74% 1.70%
Goldman Sachs Tech (1.40%)
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 $10,374 on 6/30/00 ($9,874 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 $10,270 on 6/30/00 ($10,170 with a redemption
at the end of the period.)
<PAGE> 5
The Hartford Small Company Fund
Portfolio Manager
[photo]
Steve Angeli, CFA
Vice President
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Small Company Fund returned 3.6% for the 6-month period ending June
30, 2000, underperforming the Lipper Small Cap Growth Average return of 9.5%,
but outperforming the Russell 2000 Index return of 3.0% over the period.
Q.
Why Did The Fund Perform This Way?
The first 6-months of the year have been extremely volatile for investors. Until
halfway through March it looked as though we were headed for a down first
quarter in the market in spite of excellent earnings prospects and continued low
inflation. The only game in town seemed to be technology with little or no
attention paid to any other sector of the market. While we had been "cautious
about excessive and unprecedented valuations," the market initially pushed
higher even into the headwind of a tight monetary policy. But in April,
investors woke up to the reality of rising rates and escalating inflation and
the bursting technology bubble that sent stocks spiraling downward.
While we reduced the fund's exposure by trimming positions in the technology
sector, we could not escape the market's turmoil. The Portfolio was negatively
impacted by a correction in technology stocks combined with a few fundamental
disappointments. During the correction, we took advantage of cheaper valuations
by increasing or establishing positions in fundamentally sound companies. The
Portfolio benefited from an overweight position in the energy sector resulting
from a sustainable rise in oil and natural gas prices. Our underweight position
in retail, relative to the Russell 2000, benefited the Portfolio as the Fed's
rate increases had a damaging effect on consumer spending and retail stocks.
Q.
What Is Your Outlook For The Second Half of 2000?
We believe the major rate increases are history, that consumer spending should
stabilize, and most retail stocks are at attractive entry points. In such an
environment we would expect consistent growth companies found in such sectors as
consumer staples, financial services and technology to perform quite well.
Cyclicals, both consumer and industrial, may continue to struggle with little
pricing power and continued excess capacity. We remain cautiously optimistic
about the outlook for the equity markets.
Performance Overview
7/22/96 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Small Company Fund Russell 2000
7/22/96 $9,450 $10,000
7/31/96 $9,422 $10,053
8/31/96 $10,263 $10,523
9/30/96 $10,915 $10,934
10/31/96 $10,612 $10,766
11/30/96 $10,839 $11,209
12/31/96 $10,783 $11,503
1/31/97 $10,773 $11,733
2/29/97 $10,602 $11,449
3/31/97 $10,057 $10,909
4/30/97 $10,117 $10,939
5/31/97 $11,208 $12,156
6/30/97 $11,866 $12,677
7/31/97 $12,442 $13,267
8/31/97 $12,734 $13,570
9/30/97 $13,824 $14,564
10/31/97 $13,259 $13,924
11/30/97 $13,027 $13,834
12/31/97 $12,862 $14,076
1/31/98 $12,545 $13,854
2/28/98 $13,793 $14,877
3/31/98 $14,343 $15,490
4/30/98 $14,534 $15,576
5/31/98 $13,825 $14,736
6/30/98 $14,027 $14,767
7/31/98 $13,536 $13,571
8/31/98 $10,226 $10,935
9/30/98 $11,112 $11,792
10/31/98 $11,997 $12,273
11/30/98 $12,808 $12,916
12/31/98 $14,207 $13,715
1/31/99 $14,827 $13,898
2/28/99 $13,365 $12,772
3/31/99 $14,465 $12,971
4/30/99 $15,649 $14,134
5/31/99 $15,979 $14,340
6/30/99 $17,250 $14,988
7/31/99 $17,229 $14,577
8/31/99 $16,983 $14,038
9/30/99 $17,324 $14,041
10/31/99 $17,922 $14,097
11/30/99 $19,961 $14,939
12/31/99 $23,534 $16,630
1/31/00 $22,845 $16,362
2/28/00 $26,856 $19,063
3/31/00 $26,453 $17,807
4/30/00 $24,062 $16,735
5/31/00 $21,374 $15,759
6/30/00 $24,391 $17,134
Returns (Inception 7/22/96)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD(1) 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Small Co A 3.63% 41.40% 27.19% 33.62% 25.38%
Small Co B 3.27% 40.36% 26.33% 35.36% 25.95%
Small Co C* 3.27% 40.42% 26.38% 38.02% 26.06%
Russell 2000 3.03% 14.31% 14.63%
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 expenses.
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 $25,132 on 6/30/00 ($24,378 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 $24,917 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 6
The Hartford Capital Appreciation Fund
Portfolio Manager
[photo]
Saul J. Pannell, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Capital Appreciation Fund returned 7.4% for the 6-month period
ending June 30, 2000, versus a return of 2.5% for the Lipper Multi Cap Core
Average.
Q.
Why Did The Fund Perform This Way?
The first half of 2000 has proven to be interesting for investors in equities as
the market rotated out of what had been working in the past into some laggard
sectors. We used the overall turmoil in the market to upgrade the portfolio,
which led to strong returns in June. The Fund's performance was helped primarily
by a diverse group of companies within several macroeconomic sectors.
Q.
What Is Your Outlook For The Second Half of 2000?
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.
Performance Overview
7/22/96 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Capital Appreciation Fund S&P 500
7/22/96 $ 9,450 starting value $10,000 starting value
7/31/96 $ 9,667 $10,102
8/31/96 $10,593 $10,317
9/30/96 $11,302 $10,897
10/31/96 $11,671 $11,198
11/30/96 $12,531 $12,043
12/31/96 $13,017 $11,805
1/31/97 $14,118 $12,542
2/28/97 $14,031 $12,641
3/31/67 $13,368 $12,122
4/30/97 $13,485 $12,845
5/31/97 $16,252 $13,630
6/30/97 $17,633 $14,236
7/31/97 $19,319 $15,368
8/31/97 $19,701 $14,507
9/30/97 $21,534 $15,301
10/31/97 $20,367 $14,790
11/30/97 $20,395 $15,475
12/31/97 $20,189 $15,741
1/31/98 $19,713 $15,914
2/28/98 $21,570 $17,061
3/31/98 $22,309 $17,935
4/30/98 $22,432 $18,118
5/31/98 $20,940 $17,806
6/30/98 $21,265 $18,529
7/31/98 $20,376 $18,333
8/31/98 $15,926 $15,684
9/30/98 $16,600 $16,689
10/31/98 $18,243 $18,044
11/30/98 $19,489 $19,138
12/31/98 $20,847 $20,240
1/31/99 $22,388 $21,086
2/28/99 $21,072 $20,430
3/31/99 $22,858 $21,248
4/30/99 $24,154 $22,070
5/31/99 $25,125 $21,549
6/30/99 $26,492 $22,745
7/31/99 $28,808 $22,035
8/31/99 $25,869 $21,925
9/30/99 $25,409 $21,324
10/31/99 $27,022 $22,674
11/30/99 $29,525 $23,134
12/31/99 $34,762 $24,495
1/31/00 $34,369 $23,265
2/29/00 $39,947 $22,825
3/31/00 $39,828 $25,058
4/30/00 $35,674 $24,304
5/31/00 $33,790 $23,805
6/30/00 $37,326 $24,391
Returns (Inception 7/22/96)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD(1) 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Cap App A 7.36% 40.88% 41.68% 33.13% 39.67%
Cap App B 7.00% 39.84% 40.73% 34.84% 40.45%
Cap App C* 7.00% 39.83% 40.72% 37.43% 40.37%
S&P 500 (0.42%) 7.24% 25.38%
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 expenses.
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 $38,456 on 6/30/00 ($37,302 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 $38,068 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 7
The Hartford MidCap Fund
Portfolio Manager
[photo]
Phillip H. Perelmuter
Senior Vice President and Partner
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford MidCap Fund returned 19.9% for the 6-month period ending June 30,
2000. The Fund's return exceeded that of the Lipper MidCap Core Average 11.1%
and the S&P Midcap 400 Index 9.0% over the period.
Q.
Why Did The Fund Perform This Way?
Midcap stocks as measured by the S&P Midcap 400 Index continue to outperform
large-cap stocks (S&P 500 Index) and small-cap stocks (Russell 2000 Index) over
the trailing 1, 2, 3 and 10-year time periods. Year-to-date, the S&P Midcap 400
Index significantly outperformed both the S&P 500 and the Russell 2000 Indices,
9.0%, -0.4%, 3.0%, respectively.
The two strongest sectors were energy and health care. High natural gas and
crude oil prices helped all energy stocks. Health care stocks continued to
remain strong with no cyclical risk due to a slowing economy. During the 6-month
period, we increased our health care positions from 12% to 15% participating in
all segments within health care: biotechnology, medical devices, health care
services and medical products. As of the end of the period, we had the smallest
sector bets vs. the S&P Midcap 400 Index than at any other time during the
Portfolio's life. We do not currently see any areas of the market that are
significantly undervalued across the board.
Q.
What Is Your Outlook For The Second Half of 2000?
For the remainder of the year we expect the economy to continue to slow, the
inflation news to improve as energy prices cool off, and the Fed to hold off on
further interest rate increases. In such an environment we would expect
consistent growth companies found in such sectors as consumer staples, financial
services and technology to perform quite well. Cyclicals, both consumer and
industrial, may continue to struggle with little pricing power and continued
excess capacity. We remain cautiously optimistic about the outlook for the
equity markets.
Performance Overview
12/30/97 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Midcap S&P 400
------- -------
11/30/97 $ 9,450 $10,000
12/31/97 $ 9,441 $10,074
1/31/98 $ 9,138 $ 9,883
2/28/98 $ 9,970 $10,701
3/31/98 $10,443 $11,184
4/30/98 $10,669 $11,389
5/31/98 $10,292 $10,876
6/30/98 $10,849 $10,945
7/31/98 $10,669 $10,520
8/31/98 $ 8,581 $ 8,562
9/30/98 $ 9,111 $ 9,361
10/31/98 $ 9,867 $10,198
11/30/98 $10,482 $10,707
12/31/98 $11,625 $12,000
1/31/99 $11,909 $11,533
2/28/99 $11,380 $10,929
3/31/99 $12,344 $11,235
4/30/99 $13,280 $12,120
5/31/99 $13,440 $12,174
6/30/99 $14,361 $12,824
7/31/99 $13,955 $12,552
8/31/99 $13,756 $12,123
9/30/99 $13,454 $11,748
10/31/99 $14,239 $12,347
11/30/99 $14,996 $12,995
12/31/99 $17,461 $13,767
1/31/00 $17,412 $13,379
2/29/00 $20,132 $14,316
3/31/00 $21,360 $15,514
4/30/00 $20,082 $14,972
5/31/00 $19,032 $14,785
6/30/00 $20,929 $15,003
Returns (Inception 12/30/97)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD(1) 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
MidCap A 19.90% 45.77% 37.42% 37.75% 34.35%
MidCap B 19.44% 44.67% 36.46% 39.67% 35.71%
MidCap C* 19.44% 44.76% 36.50% 42.31% 35.95%
S&P 400 8.97% 16.99% 17.61%
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 expenses.
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 $21,763 on 6/30/00 ($21,110 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 $21,558 on 6/30/00 (a redemption at the end
of the period would result in the same value because the CDSC period expired.)
<PAGE> 8
The Hartford International Opportunities Fund
Portfolio Manager
[photo]
Trond Skramstad
Senior Vice President and Partner
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford International Opportunities Fund returned -5.0% for the first half
of 2000 versus a return of -4.6% for the Lipper International Average over the
same time period.
Q.
Why Did The Fund Perform This Way?
We believe that global economic growth will slow down somewhat as financial
markets are more interested in the directions and rate of change in the economy
rather than its level. Throughout the first half of 2000, we increased our
position in the UK, which is now close to showing an upward inflection point in
its economy. We also consistently added to our holdings in technology and health
care. In the beginning of 2000, we were more optimistic about the prospects of
the Japanese economy and had increased our exposure in that region. However, we
have become a bit more cautious in this area and have reduced our weightings
accordingly.
Q.
What Is Your Outlook For The Second Half of 2000?
As global economic growth is expected to slow from its current pace, we view
health care, as the largest sector overweight, a good defensive play during the
next several months as valuations are still attractive relative to expected
earnings growth rates. In contrast, we expect economically sensitive consumer
areas to fare poorly as economic growth slows, and we thus have our largest
underweight in the consumer discretionary sector. In Europe, the continent is
experiencing a volatile market environment and we increased our exposure to the
UK market, as we believe it to be less exposed to this current environment. In
addition, we expect UK profits to grow better relative to most other markets
over the next year.
Performance Overview
7/22/96 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
International Opportunities MSCI EAFE GDP
7/22/96 $ 9,450 starting value $10,000 starting value
7/31/96 $ 9,469 $10,020
8/31/96 $ 9,507 $10,057
9/30/96 $ 9,658 $10,334
10/31/96 $ 9,686 $10,221
11/30/96 $10,131 $10,657
12/31/96 $10,220 $10,582
1/31/97 $10,114 $10,383
2/28/97 $10,172 $10,456
3/31/97 $10,172 $10,655
4/30/97 $10,115 $10,629
5/31/97 $10,706 $11,183
6/30/97 $11,162 $11,848
7/31/97 $11,487 $12,109
8/31/97 $10,723 $11,239
9/30/97 $11,276 $11,961
10/31/97 $10,483 $11,077
11/30/97 $10,349 $11,031
12/31/97 $10,305 $11,191
1/31/98 $10,451 $11,773
2/28/98 $11,123 $12,450
3/31/98 $11,620 $13,129
4/30/98 $11,864 $13,326
5/31/98 $11,932 $13,515
6/30/98 $11,951 $13,642
7/31/98 $12,059 $13,819
8/31/98 $10,344 $11,998
9/30/98 $10,022 $11,663
10/31/98 $10,675 $12,961
11/30/98 $11,288 $13,634
12/31/98 $11,595 $14,182
1/31/99 $11,936 $14,196
2/28/99 $11,663 $13,751
3/31/99 $12,287 $14,474
4/30/99 $12,745 $15,054
5/31/99 $12,209 $14,265
6/30/99 $12,781 $14,983
7/31/99 $13,103 $15,438
8/31/99 $13,112 $15,539
9/30/99 $13,191 $15,806
10/31/99 $13,630 $16,350
11/30/99 $14,440 $16,935
12/31/99 $16,131 $18,580
1/31/00 $15,273 $17,552
2/29/00 $16,308 $18,198
3/31/00 $16,225 $18,738
4/30/00 $15,378 $17,590
5/31/00 $14,782 $17,198
6/30/00 $15,335 $17,946
Returns (Inception 7/22/96)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD1 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Int'l Opp A (4.96%) 19.95% 13.06% 13.35% 11.45%
Int'l Opp B (5.32%) 19.10% 12.29% 14.10% 11.74%
Int'l Opp C* (5.33%) 18.96% 12.27% 16.77% 11.98%
MSCI EAFE GDP (3.41%) 19.77% 15.99%
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 expenses.
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 $15,791 on 6/30/00 ($15,317 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 $15,623 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 9
The Hartford Global Leaders Fund
Portfolio Managers
[photo]
Rand L. Alexander, CFA
Senior Vice President
and Partner
Wellington Management Company, LLP
[photo]
Andrew S. Offit
Vice President
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Global Leaders Fund returned 3.2% for the 6-month period ending
June 30, 2000, versus a return of -1.2% for the Lipper Global Average over the
same time period.
Q.
Why Did The Fund Perform This Way?
Throughout this period, the markets were subject to exceptional volatility,
particularly in technology, media and telecommunications sectors. However, the
Fund remained focused on its themes and sector weightings, and continued to
emphasize growth in both sectors and individual companies. This strategy
contributed to the Fund's outperformance. The best performing sectors were
health care and consumer staples, two areas that do better when there is a
period of economic slowdown. 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.
Q.
What Is Your Outlook For The Second Half of 2000?
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. Over the long
term, so long as we continue to identify the winning sectors and companies, the
Fund should succeed and outperform.
Performance Overview
9/30/98 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Global Leaders Fund MSCI World
8/31/98 $9,450 $10,000
9/30/98 $10,697 $10,902
10/31/98 $11,482 $11,548
11/30/98 $12,320 $12,111
12/31/98 $12,932 $12,375
1/31/99 $12,572 $12,045
2/28/99 $13,176 $12,544
3/31/99 $13,478 $13,037
4/30/99 $13,011 $12,559
5/31/99 $13,878 $13,143
6/30/99 $14,072 $13,102
7/31/99 $13,995 $13,077
8/31/99 $13,800 $12,949
9/30/99 $14,697 $13,620
10/31/99 $15,775 $14,001
11/30/99 $18,196 $15,132
12/31/99 $17,481 $14,264
1/31/00 $19,461 $14,301
2/29/00 $19,393 $15,288
3/31/00 $18,472 $14,640
4/30/00 $17,962 $14,268
5/31/00 $18,766 $14,746
6/30/00
Returns (Inception 9/30/98)
\Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD1 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Global Leaders A 3.15% 35.23% 47.97% 27.79% 43.27%
Global Leaders B 2.79% 34.37% 46.96% 29.37% 45.24%
Global Leaders C 2.79% 34.28% 46.96% 31.94% 46.12%
MSCI World (2.56%) 12.20% 24.84%
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 $19,621 on 6/30/00 ($19,032 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 $19,425 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 10
The Hartford Stock Fund
Portfolio Manager
[photo]
Rand L. Alexander, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Stock Fund returned 1.6% for the 6-month period ended June 30,
2000. The Fund's return exceeded the return for the S&P 500 Index of -0.4% and
the Lipper Large-Cap Core Average, which returned 1.3% for the same time period.
Q.
Why Did The Fund Perform This Way?
Federal Reserve tightening has been a source of volatility and recurrent
corrections in the US equity market over the last year. Many equity sectors
underperformed during this period with the exception of health care, energy and
technology. The Fund's performance was enhanced through accurate sector
weighting, overweights in health care and energy, and above average stock
selection, particularly in the finance sector. Finally, decreased exposure to
the consumer discretionary spending sector in line with the slowing economy and
increased exposure to consumer staples, financials and technology benefited the
portfolio.
Q.
What Is Your Outlook For The Second Half of 2000?
With expectations for a soft economic landing and continued S&P 500 profit
growth, our outlook on the market overall remains positive. The slowing economy
and possible end of Federal interest rate hikes bode well for interest sensitive
stock and consistent growth companies. Continued robust growth in technology
investment has favorable consequences for the US economy that will be enduring.
Performance Overview
7/22/96 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Stock Fund S&P 500
$9,450 starting value $10,000 starting value
Stock S&P 500
------- -------
7/22/96 $ 9,450 $10,000
7/31/96 $ 9,526 $10,102
8/31/96 $ 9,668 $10,317
9/30/96 $10,178 $10,897
10/31/96 $10,443 $11,198
11/30/96 $11,180 $12,043
12/31/96 $10,915 $11,805
1/31/97 $11,568 $12,542
2/28/97 $11,653 $12,641
3/31/97 $11,313 $12,122
4/30/97 $11,900 $12,845
5/31/97 $12,639 $13,630
6/30/97 $13,267 $14,236
7/31/97 $14,196 $15,368
8/31/97 $13,373 $14,507
9/30/97 $14,055 $15,301
10/31/97 $13,675 $14,790
11/30/97 $14,244 $15,475
12/31/97 $14,387 $15,741
1/31/98 $14,510 $15,914
2/28/98 $15,620 $17,061
3/31/98 $16,522 $17,935
4/30/98 $16,874 $18,118
5/31/98 $16,551 $17,806
6/30/98 $17,500 $18,529
7/31/98 $17,671 $18,333
8/31/98 $15,081 $15,684
9/30/98 $15,706 $16,689
10/31/98 $16,939 $18,044
11/30/98 $17,917 $19,138
12/31/98 $18,895 $20,240
1/31/99 $19,509 $21,086
2/28/99 $19,135 $20,430
3/31/99 $20,074 $21,248
4/30/99 $20,975 $22,070
5/31/99 $20,361 $21,549
6/30/99 $21,694 $22,745
7/31/99 $21,089 $22,035
8/31/99 $20,762 $21,925
9/30/99 $20,187 $21,324
10/31/99 $21,271 $22,674
11/30/99 $21,633 $23,134
12/31/99 $23,108 $24,495
1/31/00 $22,013 $23,265
2/29/00 $22,052 $22,825
3/31/00 $24,183 $25,058
4/30/00 $23,489 $24,304
5/31/00 $22,970 $24,805
6/30/00 $23,469 $24,391
Returns (Inception 7/22/96)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD1 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Stock A 1.57% 8.20% 25.95% 2.25% 24.16%
Stock B 1.26% 7.46% 25.09% 2.46% 24.69%
Stock C* 1.26% 7.46% 25.06% 5.39% 24.74%
S&P 500 (0.42%) 7.24% 25.38%
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 expenses.
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 $24,169 on 6/30/00 ($23,444 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 $23,906 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 11
The Hartford Growth and Income Fund
Portfolio Manager
[photo]
James A. Rullo, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Growth and Income Fund returned 1.1% for the first half of 2000
versus a return of 1.3% for the Lipper Large Cap Core Average over the same time
period.
Q.
Why Did The Fund Perform This Way?
Stock selection in the food, beverage, and tobacco sector positively contributed
to portfolio performance due to recent consolidation activity. We believe this
activity to continue going forward and are therefore slightly overweight in this
area. For the retail sector, our underweight positioning benefited performance
as these stocks have been under pressure due to rising interest rates and
investors' concerns over wage and fuel costs. Stock selection coupled with an
underweight position in banks boosted relative portfolio performance as this
sector suffered due to concerns regarding loan quality.
Q.
What Is Your Outlook For The Second Half of 2000?
The end of Federal Reserve interest rate rises will limit the magnitude of the
slowing in the US economy and provide positive support to US financial markets.
In addition, we anticipate deterioration in the fundamentals of the oil market
going forward as evidenced in the moderation for oil demand. Increased OPEC
production should eventually bring lower energy prices and we therefore have
reduced our overweight positioning in energy sources.
Performance Overview
4/30/98 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Growth and Income Fund S&P 500
3/31/98 $9,450 $10,000
4/30/98 $9,242 $9,828
5/31/98 $9,591 $10,227
6/30/98 $9,591 $10,119
7/31/98 $8,269 $8,656
8/31/98 $8,829 $9,211
9/30/98 $9,625 $9,959
10/31/98 $10,155 $10,563
11/30/98 $10,847 $11,171
12/31/98 $11,197 $11,638
1/31/99 $10,790 $11,276
2/28/99 $11,311 $11,727
3/31/99 $11,652 $12,181
4/30/99 $11,416 $11,894
5/31/99 $12,145 $12,554
6/30/99 $11,889 $12,162
7/31/99 $11,719 $12,101
8/31/99 $11,369 $11,770
9/30/99 $11,861 $12,515
10/31/99 $12,178 $12,769
11/30/99 $13,104 $13,520
12/31/99 $12,359 $12,841
1/31/00 $12,330 $12,598
2/28/00 $13,648 $13,830
3/31/00 $13,104 $13,414
4/30/00 $12,779 $13,139
5/31/00 $13,249 $13,462
6/30/00
Returns (Inception 4/30/98)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD1 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Growth & Inc A 1.11% 9.09% 16.85% 3.09% 13.84%
Growth & Inc B 0.75% 8.28% 16.03% 3.28% 14.86%
Growth & Inc C* 0.82% 8.36% 16.09% 6.28% 15.55%
S&P 500 (0.42%) 7.24% 14.68%
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 expenses.
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 $13,808 on 6/30/00 ($13,394 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 $13,685 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 12
The Hartford Dividend and Growth Fund
Portfolio Manager
[photo]
Laurie A. Gabriel, CFA
Senior Vice President and Managing Partner
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Dividend and Growth Fund returned -1.8% for the first half of 2000.
The Fund's return exceeded that of the Lipper Equity Income Average of -1.9%
over the same time period.
Q.
Why Did The Fund Perform This Way?
Federal Reserve tightening has been a source of volatility and recurrent
corrections in the US equity market over the last year with continued robust
growth in technology investment. In line with our dividend-oriented value style,
we continue to be underweight in the information technology sector. Strong stock
selection, particularly in the health care sector, was the key to outperforming
the benchmark for the first half of 2000.
Q.
What Is Your Outlook For The Second Half of 2000?
Going forward, we expect a deceleration in economic growth and an end to
interest rate tightening. Strong technology spending and gains in productivity
will continue to provide support in the US, moderating the impact of such rate
increases. We continue to search for investment opportunities that produce a
high level of current income coupled with growth of capital to maintain
reasonable investment risk.
Performance Overview
7/22/96 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Dividend and Growth Fund S&P 500
7/22/96 $ 9,450 starting value $10,000 starting value
7/31/96 $ 9,545 $10,102
8/31/96 $ 9,695 $10,317
9/30/96 $10,149 $10,897
10/31/96 $10,423 $11,198
11/30/96 $10,990 $12,043
12/31/96 $10,894 $11,805
1/31/97 $11,409 $12,542
2/28/97 $11,589 $12,641
3/31/97 $11,142 $12,122
4/30/97 $11,504 $12,845
5/31/97 $12,246 $13,630
6/30/97 $12,906 $14,236
7/31/97 $13,652 $15,368
8/31/97 $13,002 $14,507
9/30/97 $13,768 $15,301
10/31/97 $13,356 $14,790
11/30/97 $13,988 $15,475
12/31/97 $14,270 $15,741
1/31/98 $14,454 $15,914
2/28/98 $15,066 $17,061
3/31/98 $15,858 $17,935
4/30/98 $15,771 $18,118
5/31/98 $15,509 $17,806
6/30/98 $15,671 $18,529
7/31/98 $15,553 $18,333
8/31/98 $13,565 $15,684
9/30/98 $14,415 $16,689
10/31/98 $15,434 $18,044
11/30/98 $15,895 $19,138
12/31/98 $16,335 $20,240
1/31/99 $16,179 $21,086
2/28/99 $15,933 $20,430
3/31/99 $16,325 $21,248
4/30/99 $17,330 $22,070
5/31/99 $16,887 $21,549
6/30/99 $17,456 $22,745
7/31/99 $16,913 $22,035
8/31/99 $16,478 $21,925
9/30/99 $16,041 $21,324
10/31/99 $16,962 $22,674
11/30/99 $16,867 $23,134
12/31/99 $17,083 $24,495
1/31/00 $16,393 $23,265
2/29/00 $15,470 $22,825
3/31/00 $17,173 $25,058
4/30/00 $18,960 $24,304
5/31/00 $17,317 $23,805
6/30/00 $16,774 $24,391
Returns (Inception 7/22/96)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD(1) 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Div & Grow A (1.82%) (3.91%) 15.67% (9.19%) 14.02%
Div & Grow B (2.10%) (4.59%) 14.86% (9.59%) 14.35%
Div & Grow C* (2.12%) (4.62%) 14.86% (6.57%) 14.57%
S&P 500 (0.42%) 7.24% 25.38%
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 expenses.
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 $17,267 on 6/30/00 ($16,749 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 $17,094 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 13
The Hartford Advisers Fund
Portfolio Managers
[photo]
Rand L. Alexander, CFA
Senior Vice President
and Partner
Wellington Management Company, LLP
[photo]
Paul D. Kaplan
Senior Vice President and Partner
Wellington Management Company, LLP
Q.
How Did The Fund Perform?
The Hartford Advisers Fund returned 2.0% for the 6-month period ending June 30,
2000, matching the Lipper Flexible Average return over the same time period.
Since inception, the Fund has returned 17.7% versus a return of 14.7% for its
Lipper peer group.
Q.
Why Did The Fund Perform This Way?
Relative performance has been below the historical trend reflecting substantial
turmoil in the equity markets. Interest rate fears and continuing valuation
concerns, particularly in growth stocks, hampered most equity markets. The
equity portion of the Fund's performance benefited from sector weightings and
stock selection through increased exposure to consumer staples, financials and
technology. In the bond market, we continued to find bond yields attractive
given our outlook for economic growth and inflation.
Q.
What Is Your Outlook For The Second Half of 2000?
Federal Reserve tightening has been a source of volatility and recurrent
corrections in the US equity market over the last year. The rise in short-term
interest rates that began one year ago is expected to bring some slowing in US
economic activity during the remainder of 2000. We believe that the Fed rate
cycle and the prospect for stable interest rates will bring improved equity
market performance in the year ahead. From a cyclical standpoint, the end of Fed
tightening, slower US growth and receding inflation pressures should also
provide a positive underpinning to the US bond market.
Performance Overview
7/22/96 - 6/30/00
Growth of a $10,000 investment in
Class A which includes Sales Charge
Advisers Leham
Fund S&P 500 Govt/Corp
------- ------- ---------
7/22/96 $ 9,450 $10,000 $10,000
7/31/96 $ 9,516 $10,102 $10,020
8/31/96 $ 9,583 $10,317 $10,014
9/30/96 $ 9,952 $10,897 $10,192
10/31/96 $10,188 $11,198 $10,430
11/30/96 $10,773 $12,043 $10,622
12/31/96 $10,543 $11,805 $10,504
1/31/97 $10,923 $12,542 $10,517
2/28/97 $10,971 $12,641 $10,539
3/31/97 $10,705 $12,122 $10,413
4/30/97 $11,123 $12,845 $10,565
5/31/97 $11,589 $13,630 $10,664
6/30/97 $12,031 $14,236 $10,792
7/31/97 $12,750 $15,368 $11,122
8/31/97 $12,156 $14,507 $10,997
9/30/97 $12,667 $15,301 $11,170
10/31/97 $12,484 $14,790 $11,349
11/30/97 $12,889 $15,475 $11,409
12/31/97 $13,001 $15,741 $11,529
1/31/98 $13,127 $15,914 $11,691
2/28/98 $13,700 $17,061 $11,668
3/31/98 $14,179 $17,935 $11,704
4/30/98 $14,383 $18,118 $11,762
5/31/98 $14,247 $17,806 $11,888
6/30/98 $14,809 $18,529 $12,009
7/31/98 $14,907 $18,333 $12,019
8/31/98 $13,667 $15,684 $12,253
9/30/98 $14,226 $16,689 $12,604
10/31/98 $14,766 $18,044 $12,514
11/30/98 $15,258 $19,138 $12,590
12/31/98 $15,742 $20,240 $12,621
1/31/99 $16,063 $21,086 $12,711
2/28/99 $15,713 $20,430 $12,408
3/31/99 $16,195 $21,248 $12,470
4/30/99 $16,678 $22,070 $12,501
5/31/99 $16,296 $21,549 $12,373
6/30/99 $16,936 $22,745 $12,334
7/31/99 $16,633 $22,035 $12,300
8/31/99 $16,462 $21,925 $12,290
9/30/99 $16,243 $21,324 $12,400
10/31/99 $16,771 $22,674 $12,433
11/30/99 $16,953 $23,134 $12,425
12/31/99 $17,643 $24,495 $12,349
1/31/00 $17,074 $23,265 $12,346
2/29/00 $17,157 $22,825 $12,500
3/31/00 $18,317 $25,058 $12,681
4/30/00 $17,964 $24,304 $12,619
5/31/00 $17,692 $23,805 $12,608
6/30/00 $17,998 $24,391 $12,865
Returns (Inception 7/22/96)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD(1) 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Advisers A 2.01% 6.27% 17.75% 0.43% 16.07%
Advisers B 1.63% 5.57% 16.94% 0.57% 16.46%
Advisers C* 1.62% 5.54% 16.91% 3.48% 16.62%
S&P 500 (0.42%) 7.24% 25.38%
Lehman Govt/Corp 4.17% 4.30% 6.60%
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 expenses.
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 $18,534 on 6/30/00 ($17,978 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 $18,331 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 14
The Hartford High Yield Fund
Portfolio Manager
[photo]
Alison D. Granger, CFA
Senior Vice President
Hartford Investment
Management Company
Q.
How Did The Fund Perform?
The Fund's Class A shares placed in the 32rd percentile of its Lipper peer group
for the six months ended June 30, 2000, producing a total return of -0.4% versus
the -1.7% return of the Lipper High Current Yield Fixed Income Fund average.
Q.
Why Did The Fund Perform This Way?
There were three major factors that contributed to the Fund's performance in the
first half of this year. First, the Fund's overweight position in BB-rated
issuers, which dramatically outperformed all lower rated securities, boosted
performance. The Fund's overweight of energy-related securities continued to
contribute to the Fund's performance, as the price of oil reached a high toward
the end of June and credit fundamentals improved. Lastly, the Fund's performance
benefited from exposure to euro-denominated high yield securities purchased in
late May. These securities had lagged their dollar-denominated counterparts as
the euro-currency reached a low in early May, but rebounded in June as the
currency gained 7% from its lows. The Fund's underweight position in the gaming
sector, however, hindered the Fund's performance, as these issuers prove
resilient to the rate-tightening environment.
Q.
What Is Your Outlook For The Second Half of 2000?
Looking forward, we are emphasizing three themes in the Fund. The first theme is
to maintain our above average exposure to higher quality issuers, given
heightened default risk and decreased issuer-access to capital markets. The
second theme is to maintain overweight position in energy-related issuers and
acute health providers, believing credit fundamentals will remain positive for
energy-related issuers as they reduce leverage and shore up balance sheets, and
for acute healthcare providers which are beginning to emerge from under
governmental scrutiny. The final theme is to remain cautious on
consumer-sensitive sectors including retailers, consumer products and financial
institutions given the recent Fed action and the signs of slower growth that are
beginning to emerge in the economic data.
Performance Overview
3/90/98 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge High Yield
Fund Lehman High Yield $9,550 starting value $10,000 starting value
High Yield Lehman High Yield
8/31/98 $9,550 $10,000
9/30/98 $9,529 $9,795
10/31/98 $9,857 $10,201
11/30/98 $9,869 $10,212
12/31/98 $10,017 $10,212
1/31/99 $10,008 $10,212
2/28/99 $10,138 $10,401
3/31/99 $10,326 $10,401
4/30/99 $10,124 $10,401
5/31/99 $10,114 $10,436
6/30/99 $10,103 $10,436
7/31/99 $10,027 $10,436
8/31/99 $9,987 $10,288
9/30/99 $10,040 $10,288
10/31/99 $10,168 $10,288
11/30/99 $10,211 $10,456
12/31/99 $10,120 $10,456
1/31/00 $10,106 $10,456
2/28/00 $10,010 $10,211
3/31/00 $10,049 $10,211
4/30/00 $9,913 $10,211
5/31/00 $10,173 $10,329
6/30/00
Returns (Inception 9/30/98)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD(1) 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
High Yield A (0.37%) 0.59% 3.67% (3.94%) 0.98%
High Yield B (0.72%) (0.19%) 2.94% (5.19%) 0.68%
High Yield C (0.72%) (0.08%) 2.95% (2.08%) 2.36%
Lehman High Yield (1.22%) (1.03%) 1.86%
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 $10,520 on 6/30/00 ($10,204 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 $10,417 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 15
The Hartford Bond Income Strategy Fund
Portfolio Manager
[photo]
Alison D. Granger, CFA
Senior Vice President
Hartford Investment
Management Company
Q.
How Did The Fund Perform?
The Hartford Bond Income Strategy Fund Class A shares placed in the 4th
percentile of its Lipper peer group for the six-months ended June 2000,
producing a total return of 4.4% versus the 2.2% return of the Lipper Corporate
Debt "BBB" rated Universe.
Q.
Why Did The Fund Perform This Way?
There were three major factors that contributed to the Fund's performance in the
first half of the year. The first factor was the Fund's position in U.S.
Treasury securities where we continued to benefit from positive supply/demand
factors. Our holdings in Treasury-Inflation-Protected Securities also performed
well during the early spring. The second contributor to positive performance was
the Fund's overweight in mortgage passthroughs, particularly in GNMA issues.
This sector provided a positive contribution relative to its peer group that we
enjoyed throughout the first half of the year. Lastly, we were allowed to invest
in non-US denominated securities as of May 1, 2000. We quickly established the
Fund's positions in German and French government short-term obligations
denominated in Euro (established in mid-May) which contributed to Fund returns
as the Euro rallied off its lows relative to the dollar.
Q.
What Is Your Outlook For The Second Half of 2000?
Given that the Fed has raised interest rates six times in the last 13 months, we
expect to see signs of slowdown in the economy over the coming months. We are
not convinced, however, that the Fed is entirely done with its rate increases
and will remain watchful for signs that indicate the need to slow the economy
further.
Looking ahead, we expect to maintain an overweight in mortgage passthrough
securities for two reasons: the large percentage of the market which is trading
at a discount to par value and the favorable supply/demand balance which our
traders forecast. We favor GNMA issues, as they carry the full faith and credit
of the U.S. government.
While Treasuries do not yield much relative to other fixed income alternatives,
we continue to see opportunity in the Treasury market securities due to the U.S.
government's positive fiscal position and continued focus on debt reduction. We
also expect to be active investors in Treasury-Inflation-Protected Securities,
as we believe that these securities offer attractive real return potential
relative to other U.S. fixed income alternatives. Although yields on corporate
issues are historically high relative to Treasuries, we remain cautious and
selective in our holdings. On average, we favor investment grade over high yield
issues, as we believe that the yield compensation for investing in fundamentally
stable high yield issues is insufficient relative to that offered in
higher-quality issues. We will monitor market offerings for attractive purchase
candidates among stable, large investment-grade companies. Among specific
industries, we favor energy and the acute care providers within the healthcare
sector.
Performance Overview
7/22/96 - 6/30/00
Growth of a $10,000 investment in Class A which includes Sales Charge
Bond Income Strategy Lehman Govt/Corp
7/22/96 $ 9,550 starting value $10,000 starting value
7/31/96 $ 9,589 $10,020
8/31/96 $ 9,562 $10,014
9/30/96 $ 9,751 $10,192
10/31/96 $ 9,958 $10,430
11/30/96 $10,168 $10,622
12/31/96 $10,097 $10,504
1/31/97 $10,153 $10,517
2/28/97 $10,186 $10,539
3/31/97 $10,054 $10,413
4/30/97 $10,205 $10,565
5/31/97 $10,315 $10,664
6/30/97 $10,464 $10,792
7/31/97 $10,811 $11,122
8/31/97 $10,694 $10,997
9/30/97 $10,865 $11,170
10/31/97 $10,960 $11,349
11/30/97 $11,034 $11,409
12/31/97 $11,187 $11,529
1/31/98 $11,339 $11,691
2/28/98 $11,332 $11,668
3/31/98 $11,381 $11,704
4/30/98 $11,419 $11,762
5/31/98 $11,533 $11,888
6/30/98 $11,618 $12,009
7/31/98 $11,618 $12,019
8/31/98 $11,693 $12,253
9/30/98 $12,008 $12,604
10/31/98 $11,871 $12,514
11/30/98 $11,996 $12,590
12/31/98 $12,027 $12,621
1/31/99 $12,122 $12,711
2/28/99 $11,818 $12,408
3/31/99 $11,878 $12,470
4/30/99 $11,940 $12,501
5/31/99 $11,769 $12,373
6/30/99 $11,697 $12,334
7/31/99 $11,655 $12,300
8/31/99 $11,632 $12,290
9/30/99 $11,739 $12,400
10/31/99 $11,766 $12,433
11/30/99 $11,770 $12,425
12/31/99 $11,702 $12,349
1/31/00 $11,673 $12,346
2/29/00 $11,813 $12,500
3/31/00 $11,970 $12,681
4/30/00 $11,951 $12,619
5/31/00 $11,944 $12,608
6/30/00 $12,163 $12,865
Returns (Inception 7/22/96)
Non Sales Charge Adjusted Sales Charge Adjusted
Annualized Annualized
YTD(1) 1 Year(1) Since Incept.(1) 1 Year(2) Since Incept.(2)
Bond A 4.38% 4.42% 6.43% (0.28%) 5.20%
Bond B 3.94% 3.73% 5.67% (1.27%) 5.02%
Bond C* 4.02% 3.73% 5.68% 1.69% 5.4%
Lehman Govt/Corp 4.17% 4.30% 6.60%
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 expenses.
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 $12,429 on 6/30/00 ($12,056 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 $12,309 on 6/30/00 (a redemption at the end of
the period would result in the same value because the CDSC period expired.)
<PAGE> 16
THE HARTFORD GLOBAL HEALTH FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 96.3%
CHEMICALS -- 11.3%
14,500 Aventis S.A. ADR................. $ 1,052,156
56,900 Pharmacia Corp. ................. 2,941,019
-----------
3,993,175
-----------
CONSUMER NON-DURABLES -- 4.4%
9,600 Cardinal Health, Inc. ........... 710,400
40,600 McKesson HBOC, Inc. ............. 850,063
-----------
1,560,463
-----------
DRUGS -- 48.1%
29,400 Abbott Laboratories.............. 1,310,138
37,800 American Home Products Corp. .... 2,220,750
60,300 AstraZeneca Group PLC ADR........ 2,803,950
19,000 Banyu Pharmaceutical Co.,
Ltd. ........................... 466,008
*21,200 BioChem Pharma, Inc. ............ 522,050
5,300 Bristol-Myers Squibb Co. ........ 308,725
*25,400 Connetics Corp. ................. 373,063
20,000 Eisai Co., Ltd. ................. 642,713
*6,300 Forest Laboratories, Inc. ....... 636,300
*14,500 Genzyme Corp. ................... 861,844
*7,000 Gilead Sciences, Inc. ........... 497,875
*2,400 IDEC Pharmaceuticals Corp. ...... 281,550
*22,900 Immunex Corp. ................... 1,132,119
8,300 Nycomed Amersham PLC ADR......... 406,700
*10,700 Regeneron Pharmacy, Inc. ........ 318,994
26,000 SmithKline Beecham PLC ADR,
Class A......................... 1,694,875
10,000 Takeda Chemical Industries
Ltd. ........................... 657,836
45,000 Tanabe Seiyaku Co., Ltd. ........ 344,938
*34,600 Triangle Pharmaceuticals,
Inc. ........................... 313,563
*2,400 Vertex Pharmaceuticals, Inc. .... 252,900
*13,000 ViroPharma, Inc. ................ 203,125
*14,300 Watson Pharmaceuticals, Inc. .... 768,625
-----------
17,018,641
-----------
HEALTH SERVICES -- 9.7%
*10,900 Biovail Corp. ................... 604,269
*13,800 Exelixis, Inc. .................. 460,575
16,400 HCA Healthcare Corp. ............ 498,150
*14,100 Laboratory Corp. of America
Holdings........................ 1,087,463
*28,500 Tenet Healthcare Corp. .......... 769,500
-----------
3,419,957
-----------
MEDICAL INSTRUMENTS &
SUPPLIES -- 16.4%
10,100 Bausch & Lomb, Inc. ............. 781,488
15,000 Baxter International, Inc. ...... 1,054,688
19,700 Becton, Dickinson & Co. ......... 565,144
23,600 Biomet, Inc. .................... 907,125
*25,300 Boston Scientific Corp. ......... 555,019
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<C> <S> <C>
MEDICAL INSTRUMENTS &
SUPPLIES -- (CONTINUED)
61,640 Gambro AB, Class B............... $ 491,955
10,200 Guidant Corp. ................... 504,900
127,252 Smith & Nephew PLC ADR........... 462,352
*10,200 St. Jude Medical, Inc. .......... 467,925
-----------
5,790,596
-----------
RESEARCH & TESTING FACILITIES -- 4.9%
*7,000 CV Therapeutics, Inc. ........... 485,188
*47,900 Quintiles Transnational Corp. ... 676,588
*12,900 Sequenom, Inc. .................. 585,338
-----------
1,747,114
-----------
SOFTWARE & SERVICES -- 1.5%
29,200 IMS Health, Inc. ................ 525,600
-----------
Total common stocks.............. $34,055,546
===========
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 2.8%
REPURCHASE AGREEMENT -- 2.8%
$1,006,000 Interest in $2,066,447,000 joint
repurchase agreement dated
06/30/00 with State Street Bank,
6.598% due 07/03/00; maturity
amount $1,006,553
(Collateralized by $125,835,832
U.S. Treasury Notes
5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29)............ $ 1,006,000
-----------
Total short-term securities...... $ 1,006,000
===========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $30,045,164)................. 96.3% $34,055,546
Total short-term securities
(cost $1,006,000).................. 2.8 1,006,000
----- -----------
Total investment in securities (total
cost $31,051,164).................. 99.1 35,061,546
Cash, receivables and other assets... 4.1 1,440,108
Securities lending collateral........ 3.3 1,162,500
Payable for securities purchased..... (3.2) (1,130,682)
Payable for fund shares redeemed..... (0.0) (12,833)
Securities lending collateral payable
to brokers......................... (3.3) (1,162,500)
Other liabilities.................... (0.0) (1,479)
----- -----------
Net assets........................... 100.0% $35,356,660
===== ===========
</TABLE>
The accompanying notes are an integral part of this financial statement.
16
<PAGE> 17
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 2,956,003
shares outstanding......................... $ 2,956
Paid-in surplus.............................. 30,527,251
Accumulated net investment loss.............. (14,935)
Accumulated undistributed net realized gain
on investments............................. 830,300
Unrealized appreciation of investments....... 4,010,382
Unrealized appreciation of forward foreign
currencies contracts (See Note 2)+......... 171
Unrealized appreciation of other assets and
liabilities in foreign currencies.......... 535
-----------
Net assets................................... $35,356,660
===========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($19,095,446 /
1,595,641 shares outstanding) (125,000,000
shares authorized)............................. $11.97
======
Maximum offering price per share ($11.97 /
94.5%)......................................... $12.67
======
Class B
Net asset value per share and maximum offering
price per share ($6,010,914 / 502,923 shares
outstanding) (75,000,000 shares authorized).... $11.95
======
Class C
Net asset value per share ($8,901,395 / 744,807
shares outstanding) (50,000,000 shares
authorized).................................... $11.95
======
Maximum offering price per share ($11.95 /
99.0%)......................................... $12.07
======
Class Y
Net asset value per share and maximum offering
price per share ($1,348,905 / 112,632 shares
outstanding) (50,000,000 shares authorized).... $11.98
======
</TABLE>
* Non-income producing during the period.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2000
<TABLE>
<CAPTION>
TOTAL CONTRACT DELIVERY UNREALIZED
DESCRIPTION MARKET VALUE AMOUNT DATE APPRECIATION
----------------------------------------- ------------ ---------- -------- --------------
<S> <C> <C> <C> <C>
Japanese Yen (Buy) $65,721 $65,550 07/05/00 $171
====
</TABLE>
17
<PAGE> 18
THE HARTFORD GLOBAL TECHNOLOGY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- -----------
<C> <S> <C>
COMMON STOCKS -- 96.6%
BUSINESS SERVICES -- 1.8%
*14,300 eBay, Inc. ..................... $ 776,669
*500 StorageNetworks, Inc. .......... 45,125
-----------
821,794
-----------
COMMUNICATIONS -- 11.1%
*15,000 Comverse Technology, Inc. ...... 1,395,000
*25,400 Digital Microwave Corp. ........ 968,375
*24,100 Exodus Communications, Inc. .... 1,110,106
15,600 Lucent Technologies, Inc. ...... 924,300
5,600 Nokia Corp. ADR................. 279,647
*6,900 Phone.com, Inc. ................ 449,363
-----------
5,126,791
-----------
COMPUTERS & OFFICE EQUIPMENT -- 26.0%
*66,200 Cisco Systems, Inc. ............ 4,207,838
*47,200 Dell Computer Corp. ............ 2,327,550
*22,100 EMC Corp. ...................... 1,700,319
14,000 Hewlett-Packard Co. ............ 1,748,250
18,100 International Business Machines
Corp. ......................... 1,983,081
-----------
11,967,038
-----------
ELECTRICAL EQUIPMENT -- 1.7%
*14,300 Credence Systems Corp. ......... 789,180
-----------
ELECTRONICS -- 18.8%
*20,900 Analog Devices, Inc. ........... 1,588,400
*17,000 Cypress Semiconductor Corp. .... 718,250
7,300 Intel Corp. .................... 975,918
*18,500 JDS Uniphase Corp. ............. 2,217,688
*49,700 MEMC Electronic Materials,
Inc. .......................... 894,600
*21,600 Micron Technology, Inc. ........ 1,902,150
*8,500 REMEC, Inc. .................... 355,938
-----------
8,652,944
-----------
MACHINERY -- 2.8%
*8,100 Applied Materials, Inc. ........ 734,062
*8,600 Brooks Automation, Inc. ........ 549,863
-----------
1,283,925
-----------
SOFTWARE & SERVICES -- 34.4%
*16,000 3Com Corp. ..................... 922,000
*15,200 America Online, Inc. ........... 801,800
*32,100 Answerthink, Inc. .............. 533,663
*9,500 BMC Software, Inc. ............. 346,602
*59,800 Ceridian Corp. ................. 1,438,938
*18,100 Cognos, Inc. ................... 748,888
21,900 Electronic Data Systems
Corp. ......................... 903,375
*31,200 Informix Corp. ................. 232,050
*14,000 LookSmart, Ltd. ................ 259,000
*9,900 Macromedia, Inc. ............... 957,206
*34,800 Microsoft Corp. ................ 2,784,000
*117,000 Quantum Hard Disk Drive
Corp. ......................... 1,294,313
*15,700 Rational Software Corp. ........ 1,459,117
*10,180 VeriSign, Inc. ................. 1,796,770
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- -----------
<C> <S> <C>
SOFTWARE & SERVICES -- (CONTINUED)
*14,800 Verity, Inc. ................... $ 562,400
*15,900 Vignette Corp. ................. 827,048
-----------
15,867,170
-----------
Total common stocks............. $44,508,842
===========
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 3.7%
REPURCHASE AGREEMENT -- 3.7%
$1,718,000 Interest in $2,066,447,000 joint
repurchase agreement dated
06/30/00 with State Street
Bank, 6.598% due 07/03/00;
maturity amount $1,718,945
(Collateralized by $125,835,832
U.S. Treasury Notes
5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29)........... $ 1,718,000
-----------
Total short-term securities..... $ 1,718,000
===========
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment in securities, at value
(total cost $43,531,086) -- see
accompanying portfolio..................... $46,226,842
Receivable for securities sold............... 2,071,903
Receivable for fund shares sold.............. 1,874,446
Receivable for dividends and interest........ 2,833
Cash and other assets........................ 339
-----------
Total assets................................. 50,176,363
-----------
LIABILITIES
Payable for securities purchased............. 4,005,778
Payable for fund shares redeemed............. 23,366
Other liabilities............................ 32,985
-----------
Total liabilities............................ 4,062,129
-----------
Net assets................................... $46,114,234
===========
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 4,373,734
shares outstanding......................... $ 4,374
Paid-in surplus.............................. 43,019,677
Accumulated net investment loss.............. (69,023)
Accumulated undistributed net realized gain
on investments............................. 463,450
Unrealized appreciation of investments....... 2,695,756
-----------
Net assets................................... $46,114,234
===========
</TABLE>
The accompanying notes are an integral part of this financial statement.
18
<PAGE> 19
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Class A
Net asset value per share
($23,018,717 / 2,182,198 shares outstanding)
(125,000,000 shares authorized)................ $10.56
======
Maximum offering price per share
($10.56 / 94.5%)............................... $11.17
======
Class B
Net asset value per share and maximum offering
price per share ($9,634,295 / 914,358 shares
outstanding) (75,000,000 shares authorized).... $10.55
======
Class C
Net asset value per share
($12,405,858 / 1,177,178 shares outstanding)
(50,000,000 shares authorized)................. $10.55
======
Maximum offering price per
share($10.55 / 99.0%).......................... $10.66
======
Class Y
Net asset value per share and maximum offering
price per share ($1,055,364 / 100,000 shares
outstanding) (50,000,000 shares authorized).... $10.57
======
</TABLE>
* Non-income producing during the period.
19
<PAGE> 20
THE HARTFORD SMALL COMPANY FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ ------------
<C> <S> <C>
COMMON STOCKS -- 91.4%
APPAREL & TEXTILE -- 0.1%
*58,300 Steven Madden, Ltd. .......... $ 382,594
------------
BUSINESS SERVICES -- 5.7%
*199,900 APAC Customer Services,
Inc. ........................ 2,211,394
*258,100 Iron Mountain, Inc. .......... 8,775,400
177,600 Manpower, Inc. ............... 5,683,200
*191,200 NCO Group, Inc. .............. 4,421,500
*3,800 StorageNetworks, Inc. ........ 342,950
------------
21,434,444
------------
COMMUNICATIONS -- 12.1%
*102,500 AirGate PCS, Inc. ............ 5,387,656
*159,800 Andrew Corp. ................. 5,363,288
*39,700 Carrier Access Corp. ......... 2,099,138
*158,100 Digital Microwave Corp. ...... 6,027,563
*135,200 MGC Communications, Inc. ..... 8,103,550
*105,900 Primus Telecommunications
Group, Inc. ................. 2,634,262
*59,300 Rural Cellular Corp., Class
A............................ 4,540,156
*43,900 SBA Communications Corp. ..... 2,280,056
*23,500 SonicWall, Inc. .............. 2,069,469
*127,400 Spectrasite Holdings, Inc. ... 3,614,975
*@31,400 Tecnomen Oyj.................. 270,897
*201,300 US Unwired, Inc., Class A..... 2,616,900
*6,400 Westell Technologies, Inc.,
Class A...................... 96,000
------------
45,103,910
------------
COMPUTERS & OFFICE
EQUIPMENT -- 1.3%
*276,900 Splash Technology Holdings,
Inc. ........................ 2,180,588
*100,000 Visual Networks, Inc. ........ 2,850,000
------------
5,030,588
------------
CONSTRUCTION -- 1.2%
*80,200 Quanta Services, Inc. ........ 4,411,000
------------
DRUGS -- 3.0%
*85,248 Gilead Sciences, Inc. ........ 6,063,264
*40,700 Lynx Therapeutics, Inc. ...... 1,935,794
*2,829 MediGene AG................... 184,405
*16,600 Myriad Genetics, Inc. ........ 2,458,097
*15,400 Visible Genetics, Inc. ....... 694,925
------------
11,336,485
------------
ELECTRICAL EQUIPMENT -- 2.9%
*14,100 Capstone Turbine Corp. ....... 635,381
35,700 Newport Corp. ................ 3,833,288
*86,100 Veeco Instruments, Inc. ...... 6,306,825
------------
10,775,494
------------
ELECTRONICS -- 11.2%
*24,700 Alliance Semiconductor
Corp. ....................... 606,694
*122,800 ASM International N.V. ....... 3,254,200
*50,950 Burr-Brown Corp. ............. 4,416,728
*56,600 Emcore Corp. ................. 6,792,000
*56,500 GSI Lumonics, Inc. ........... 1,984,563
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ ------------
<C> <S> <C>
ELECTRONICS -- (CONTINUED)
*105,000 International Rectifier
Corp. ....................... $ 5,880,000
69,200 Methode Electronics, Inc.,
Class A...................... 2,672,850
*60,800 Plexus Corp. ................. 6,870,400
*87,000 REMEC, Inc. .................. 3,643,125
*51,100 Supertex, Inc. ............... 2,567,775
*74,700 Telcom Semiconductors,
Inc. ........................ 2,992,668
------------
41,681,003
------------
ENERGY & SERVICES -- 4.0%
266,100 Cross Timbers Oil Co. ........ 5,887,463
*151,700 Hanover Compressor Co. ....... 5,764,600
*148,253 Varco International, Inc. .... 3,446,882
------------
15,098,945
------------
FINANCIAL SERVICES -- 4.7%
123,400 Annuity & Life Re (Holdings),
Ltd. ........................ 3,023,300
*113,900 Investment Technology Group,
Inc. ........................ 4,499,050
111,900 Legg Mason, Inc. ............. 5,595,000
103,800 People's Bank................. 1,907,325
*50,900 Trigon Healthcare, Inc. ...... 2,624,531
------------
17,649,206
------------
HEALTH SERVICES -- 3.1%
*555,000 Caremark Rx, Inc. ............ 3,780,937
*67,900 Express Scripts, Inc., Class
A............................ 4,218,287
*281,300 Foundation Health Systems,
Inc., Class A................ 3,656,900
------------
11,656,124
------------
MACHINERY -- 2.0%
*115,300 Brooks Automation, Inc. ...... 7,371,994
------------
MEDIA & ENTERTAINMENT -- 2.2%
*161,800 Cumulus Media, Inc., Class
A............................ 1,476,425
85,800 Pegasus Communications Corp.,
Class A...................... 4,209,562
*284,400 Regent Communications,
Inc. ........................ 2,444,063
------------
8,130,050
------------
MEDICAL INSTRUMENTS
& SUPPLIES -- 0.3%
119,700 Omnicare, Inc. ............... 1,084,781
------------
METALS, MINERALS & MINING -- 2.6%
287,800 Compania de Minas Buenaventura
S.A. ........................ 4,982,538
*167,200 Stillwater Mining Co. ........ 4,660,700
------------
9,643,238
------------
REAL ESTATE -- 1.7%
126,200 Liberty Property Trust
(REIT)....................... 3,273,313
129,800 Reckson Associates Realty
Corp. (REIT)................. 3,082,750
------------
6,356,063
------------
</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)
RESEARCH & TESTING FACILITIES -- 4.9%
*27,300 Aurora Biosciences Corp. ..... $ 1,861,518
*102,600 Gene Logic, Inc. ............. 3,661,538
*137,600 Quest Diagnostics, Inc. ...... 10,285,600
*54,300 Sequenom, Inc. ............... 2,463,862
------------
18,272,518
------------
RETAIL -- 4.3%
112,300 Applebee's International,
Inc. ........................ 3,404,094
*136,350 Cheesecake Factory, Inc.
(The)........................ 3,749,625
*148,950 Pacific Sunwear of California,
Inc. ........................ 2,792,812
*88,800 Whole Foods Market, Inc. ..... 3,668,550
*74,900 Williams-Sonoma, Inc. ........ 2,429,569
------------
16,044,650
------------
SOFTWARE & SERVICES -- 17.5%
*189,200 Affiliated Computer Services,
Inc., Class A................ 6,255,425
*300,600 Brio Technology, Inc. ........ 6,368,962
*134,200 Cognos, Inc. ................. 5,552,525
*99,500 Documentum, Inc. ............. 8,892,812
*74,000 Macromedia, Inc. ............. 7,154,875
*108,300 Mercator Software, Inc. ...... 7,445,625
*171,600 Novadigm, Inc. ............... 3,389,100
*182,600 Peregrine Systems, Inc. ...... 6,333,938
*115,500 Remedy Corp. ................. 6,439,124
*147,500 Verity, Inc. ................. 5,605,000
*31,400 WatchGuard Technologies,
Inc. ........................ 1,725,038
------------
65,162,424
------------
TRANSPORTATION -- 6.6%
*166,150 Atlas Air, Inc. .............. 5,960,631
47,200 Robinson (C.H.) Worldwide,
Inc. ........................ 2,336,400
*125,000 Ryanair Holdings PLC ADR...... 4,562,500
172,200 SkyWest, Inc. ................ 6,382,163
*378,650 Swift Transportation Co.,
Inc. ........................ 5,301,100
------------
24,542,794
------------
Total common stocks........... $341,168,305
============
<CAPTION>
PRINCIPAL
AMOUNT
------------
<C> <S> <C>
SHORT-TERM SECURITIES -- 8.7%
REPURCHASE AGREEMENT -- 8.7%
$32,448,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$32,465,841 (Collateralized
by $125,835,832 U.S. Treasury
Notes 5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29)......... $ 32,448,000
------------
Total short-term securities... $ 32,448,000
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$303,792,366)..................... 91.4% $341,168,305
Total short-term securities (cost
$32,448,000)...................... 8.7 32,448,000
----- ------------
Total investment in securities
(total cost $336,240,366)......... 100.1 373,616,305
Cash, receivables and other
assets............................ 3.8 14,137,583
Securities lending collateral....... 1.3 4,838,200
Payable for securities purchased.... (3.8) (14,348,558)
Payable for fund shares redeemed.... (0.1) (306,813)
Securities lending collateral
payable to brokers................ (1.3) (4,838,200)
Other liabilities................... (0.0) (51,692)
----- ------------
Net assets.......................... 100.0% $373,046,825
===== ============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 18,548,540
shares outstanding........................ $ 18,549
Paid-in surplus............................. 313,838,049
Accumulated net investment loss............. (1,695,368)
Accumulated undistributed net realized gain
on investments............................ 23,508,437
Unrealized appreciation of investments...... 37,375,938
Unrealized appreciation of forward foreign
currency contracts (See Note 2)+.......... 6,043
Unrealized depreciation of other assets and
liabilities in foreign currencies......... (4,823)
------------
Net assets.................................. $373,046,825
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($170,960,460 /
8,419,562 shares outstanding) (125,000,000
shares authorized)............................. $20.30
======
Maximum offering price per share ($20.30 /
94.5%)......................................... $21.48
======
Class B
Net asset value per share and maximum offering
price per share ($74,144,143 / 3,765,017 shares
outstanding) (75,000,000 shares authorized).... $19.69
======
Class C
Net asset value per share ($76,468,681 /
3,881,601 shares outstanding) (50,000,000
shares authorized)............................. $19.70
======
Maximum offering price per share ($19.70 /
99.0%)......................................... $19.90
======
Class Y
Net asset value per share and maximum offering
price per share ($51,473,541 / 2,482,360 shares
outstanding) (50,000,000 shares authorized).... $20.74
======
</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. At June 30, 2000, the market value
of these securities amounted to $270,897 or 0.1% of net assets.
21
<PAGE> 22
THE HARTFORD SMALL COMPANY FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2000
<TABLE>
<CAPTION>
TOTAL CONTRACT UNREALIZED
DESCRIPTION MARKET VALUE AMOUNT DELIVERY DATE APPRECIATION
-------------------------------------- ------------ ---------- ------------- --------------
<S> <C> <C> <C> <C>
EURO (Buy) $255,847 $250,245 07/03/00 $5,602
EURO (Buy) 113,898 113,457 07/03/00 441
------
$6,043
======
</TABLE>
The accompanying notes are an integral part of this financial statement.
22
<PAGE> 23
THE HARTFORD CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ --------------
<C> <S> <C>
COMMON STOCKS -- 94.2%
AEROSPACE & DEFENSE -- 1.0%
*179,950 Anaren Microwave, Inc. ..... $ 23,615,626
--------------
AGRICULTURE & FISHING -- 0.2%
172,200 Delta and Pine Land Co. .... 4,315,763
--------------
APPAREL & TEXTILE -- 0.6%
*200,000 Timberland Co. (The),
Class A.................... 14,162,500
--------------
BUSINESS SERVICES -- 2.7%
*R918,100 BarPoint.com................ 5,061,026
*775,000 iBEAM Broadcasting Corp. ... 13,950,000
759,500 Manpower, Inc. ............. 24,304,000
*1,285,300 Pegasystems, Inc. .......... 6,426,500
*400,000 Profit Recovery Group
International, Inc.
(The)...................... 6,650,000
*24,600 StorageNetworks, Inc. ...... 2,220,150
*408,000 United Rentals (North
America), Inc. ............ 6,987,000
--------------
65,598,676
--------------
CHEMICALS -- 2.2%
1,000,000 Pharmacia Corp. ............ 51,687,500
--------------
COMMUNICATIONS -- 3.8%
*591,100 Digital Microwave Corp. .... 22,535,688
*335,800 Echostar Communications
Corp., Class A............. 11,118,128
*1,150,700 Global Crossing Ltd. ....... 30,277,794
*@805,300 OCI Communications.......... 5,209,526
*152,800 Phone.com, Inc. ............ 9,951,100
*400,000 Primus Telecommunications
Group, Inc. ............... 9,950,000
*77,300 SeaChange International,
Inc. ...................... 2,232,038
*20,000 Teligent, Inc., Class A..... 472,500
--------------
91,746,774
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 4.4%
*248,500 Adept Technology, Inc. ..... 11,617,375
*1,039,400 Auspex Systems, Inc. ....... 5,132,038
1,559,500 Danka Business Systems PLC
ADR........................ 6,043,062
*343,700 Emulex Corp. ............... 22,576,794
*803,500 Ingram Micro, Inc., Class
A.......................... 14,011,030
*1,200,000 Maxtor Corp. ............... 12,675,000
*209,000 Procom Technology, Inc. .... 10,802,688
*471,900 Rainbow Technologies,
Inc. ...................... 22,946,138
--------------
105,804,125
--------------
CONSTRUCTION -- 0.3%
550,000 Chicago Bridge & Iron Co.
N.V. ...................... 8,078,125
--------------
CONSUMER DURABLES -- 0.5%
400,000 Grainger (W.W.), Inc. ...... 12,325,000
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ --------------
<C> <S> <C>
CONSUMER
NON-DURABLES -- 4.5%
*1,069,600 Hexcel Corp. ............... $ 10,161,200
2,389,500 McKesson HBOC, Inc. ........ 50,030,156
*2,927,300 Smurfit-Stone Container
Corp. ..................... 37,688,988
*635,000 United Natural Foods,
Inc. ...................... 8,731,250
--------------
106,611,594
--------------
CONSUMER SERVICES -- 0.6%
*647,500 Bright Horizons Family
Solutions, Inc............. 13,840,313
--------------
DRUGS -- 2.6%
*500,000 Genzyme Corp. .............. 29,718,750
*715,239 Genzyme Surgical Products... 7,107,688
*402,200 Immunex Corp. .............. 19,883,762
*575,000 Triangle Pharmaceuticals,
Inc........................ 5,210,938
--------------
61,921,138
--------------
ELECTRICAL EQUIPMENT -- 2.0%
*98,100 Exfo Electro-Optical
Engineering, Inc........... 4,304,138
6,500 Keithley Instruments,
Inc. ...................... 566,312
164,500 Newport Corp. .............. 17,663,188
*343,300 Veeco Instruments, Inc. .... 25,146,725
--------------
47,680,363
--------------
ELECTRONICS -- 7.9%
*369,500 American Xtal Technology,
Inc........................ 15,980,875
*171,900 Applied Micro Circuits
Corp. ..................... 16,975,125
*1,021,900 Artisan Components, Inc. ... 11,113,162
*330,600 Emcore Corp. ............... 39,672,000
*484,600 GSI Lumonics, Inc. ......... 17,021,575
*520,400 Helix Technology Corp. ..... 20,295,600
*160,000 JDS Uniphase Corp. ......... 19,180,000
*250,000 Koninklijke Philips
Electronics N.V. ADR, NY
Shares..................... 11,875,000
*300,000 Micron Technology, Inc. .... 26,418,750
22,470 Samsung Electronics......... 7,436,339
*93,500 Vishay Intertechnology,
Inc. ...................... 3,547,156
--------------
189,515,582
--------------
ENERGY & SERVICES -- 7.9%
949,500 Cabot Oil & Gas Corp. ...... 20,117,530
413,900 Exxon Mobil Corp. .......... 32,491,150
2,298,920 Gulf Canada Resources
Ltd. ...................... 11,063,553
*2,700,000 Newpark Resources, Inc. .... 25,481,250
*379,700 Precision Drilling Corp. ... 14,665,912
*1,570,300 R&B Falcon Corp. ........... 37,000,194
*700,000 Talisman Energy, Inc. ...... 23,173,176
1,109,100 Union Pacific Resources
Group, Inc................. 24,400,200
--------------
188,392,965
--------------
</TABLE>
23
<PAGE> 24
THE HARTFORD CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
FINANCIAL SERVICES -- 8.5%
2,020,300 Ace Ltd. ................... $ 56,568,400
700,000 Annuity & Life Re
(Holdings), Ltd. .......... 17,150,000
1,400,000 Heller Financial, Inc.,
Class A.................... 28,700,000
*655,400 Investment Technology Group,
Inc. ...................... 25,888,300
*632,400 MetLife, Inc. .............. 13,319,925
205,320 Orix Corp. ................. 30,370,626
696,100 Pacific Century Financial
Corp. ..................... 10,180,463
716,800 Reinsurance Group of
America, Inc. ............. 21,593,600
--------------
203,771,314
--------------
FOOD, BEVERAGE & TOBACCO -- 2.1%
957,300 Nabisco Group Holding
Corp. ..................... 24,829,969
942,500 Philip Morris Co., Inc. .... 25,035,156
--------------
49,865,125
--------------
FOREST & PAPER PRODUCTS -- 0.2%
*1,000,000 Asia Pulp & Paper Company
Ltd. ADR................... 5,062,500
--------------
HEALTH SERVICES -- 0.1%
*1,135,000 Magellan Health Services,
Inc. ...................... 1,418,750
--------------
HOTELS & GAMING -- 0.3%
250,000 Starwood Hotels & Resorts
Worldwide, Inc............. 8,140,625
--------------
MACHINERY -- 0.1%
*250,000 Terex Corp. ................ 3,531,250
--------------
MEDIA & ENTERTAINMENT --2.8%
*334,800 AT&T -- Liberty Media Group,
Class A.................... 8,118,900
*1,199,900 Cumulus Media, Inc., Class
A.......................... 10,949,088
360,000 Pegasus Communications
Corp., Class A............. 17,662,500
*200,000 SFX Entertainment, Inc.,
Class A.................... 9,062,500
*1,015,400 USA Networks, Inc. ......... 21,958,025
--------------
67,751,013
--------------
MEDICAL INSTRUMENTS
& SUPPLIES -- 1.8%
216,300 Bausch & Lomb, Inc. ........ 16,736,213
942,000 Becton, Dickinson & Co. .... 27,023,625
--------------
43,759,838
--------------
METALS, MINERALS & MINING -- 2.7%
370,800 Alcan Aluminum Ltd. ........ 11,494,800
324,500 AngloGold Ltd. ADR.......... 6,672,531
838,000 Engelhard Corp. ............ 14,298,375
*800,000 Freeport-McMoRan Copper &
Gold, Inc., Class B........ 7,400,000
525,000 Precision Castparts
Corp. ..................... 23,756,250
--------------
63,621,956
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ --------------
<C> <S> <C>
METALS, MINERALS &
MINING -- (CONTINUED)
REAL ESTATE -- 2.7%
700,000 LNR Property Corp. ......... $ 13,650,000
816,500 Reckson Associates Realty
Corp. (REIT)............... 19,391,875
*1,897,200 Security Capital Group,
Inc., Class B.............. 32,252,400
--------------
65,294,275
--------------
RESEARCH & TESTING FACILITIES -- 0.1%
*200,000 Quintiles Transnational
Corp. ..................... 2,825,000
--------------
RETAIL -- 5.0%
*1,087,500 American Eagle Outfitters,
Inc. ...................... 15,225,000
*781,600 Brinker International,
Inc. ...................... 22,861,800
*750,000 Cheesecake Factory, Inc.
(The)...................... 20,625,000
288,370 Hennes & Mauritz AB, Class
B.......................... 6,049,680
914,000 Intimate Brands, Inc., Class
A.......................... 18,051,500
*566,200 Pacific Sunwear of
California, Inc. .......... 10,616,250
*624,000 Whole Foods Market, Inc. ... 25,779,000
--------------
119,208,230
--------------
SOFTWARE & SERVICES -- 16.8%
*375,000 America Online, Inc. ....... 19,781,250
*657,100 Avant! Corp. ............... 12,310,358
*250,000 BMC Software, Inc. ......... 9,121,094
*390,600 China Unicom Ltd. ADR....... 8,300,250
*685,300 Cognex Corp. ............... 35,464,275
192,900 Electronic Data Systems
Corp. ..................... 7,957,125
*1,200,000 Excelon Corp. .............. 9,525,000
285,000 First Data Corp. ........... 14,143,125
*659,600 Genuity, Inc. .............. 6,039,463
*390,100 HomeStore.com, Inc. ........ 11,386,044
*1,422,200 Industri-Matematik
International Corp......... 7,644,325
*188,000 Information Resource
Engineering, Inc........... 4,747,000
*1,381,300 Internet Pictures Corp. .... 20,892,162
*753,000 Legato Systems, Inc. ....... 11,389,125
*306,900 LookSmart, Ltd. ............ 5,677,650
*400,000 Manugistics Group, Inc. .... 18,700,000
*150,000 MicroStrategy, Inc., Class
A.......................... 4,500,000
*200,000 Rational Software Corp. .... 18,587,500
*850,000 Sybase, Inc. ............... 19,550,000
R*1,212,500 Tricord Systems, Inc. ...... 19,710,702
*394,095 VeriSign, Inc. ............. 69,557,768
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 25
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
SOFTWARE & SERVICES -- (CONTINUED)
*803,400 Verity, Inc. ............... $ 30,529,200
*671,600 Vignette Corp. ............. 34,933,694
--------------
400,447,110
--------------
TRANSPORTATION -- 5.3%
*634,000 Atlas Air, Inc. ............ 22,744,750
821,600 Bergesen d.y. ASA, Class
A.......................... 16,917,494
400,000 CSX Corp. .................. 8,475,000
1,643,600 Delphi Automotive Systems
Corp. ..................... 23,934,924
*440,100 Peak International Ltd. .... 3,080,700
*283,500 Pegasus Solutions, Inc. .... 3,083,062
*727,100 Ryanair Holdings PLC ADR.... 26,539,150
*900,000 Swift Transportation Co.,
Inc. ...................... 12,600,000
338,500 USFreightways Corp. ........ 8,314,406
--------------
125,689,486
--------------
UTILITIES -- 4.5%
*896,100 Calpine Corp. .............. 58,918,575
825,600 CMS Energy Corp. ........... 18,266,400
1,554,900 Waste Management, Inc. ..... 29,543,100
--------------
106,728,075
--------------
Total common stocks......... $2,252,410,591
==============
<CAPTION>
PRINCIPAL
AMOUNT
------------
<C> <S> <C>
CONVERTIBLE BONDS -- 0.3%
ELECTRONICS -- 0.3%
$ @7,000,000 Candescent Technology Corp.
8.00% due 05/01/03......... $ 5,600,000
--------------
Total convertible bonds..... $ 5,600,000
==============
<CAPTION>
SHARES
------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS -- 0.3%
COMMUNICATIONS -- 0.3%
*@170,030 Optical Switch Corp., Class
B.......................... $ 7,749,967
--------------
Total convertible preferred
stocks..................... $ 7,749,967
==============
PREFERRED STOCKS -- 0.2%
ELECTRONICS -- 0.2%
*@1,204,819 Sensable Technology,
Inc. ...................... $ 3,999,999
--------------
Total preferred stocks...... $ 3,999,999
==============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ --------------
<C> <S> <C>
SHORT-TERM SECURITIES -- 5.0%
REPURCHASE AGREEMENT -- 5.0%
$119,500,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$119,565,706
(Collateralized by
$125,835,832 U.S. Treasury
Notes 5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S.
Treasury Bonds 5.25% -
10.625% due
08/15/15 - 02/15/29)....... $ 119,500,000
--------------
Total short-term
securities................. $ 119,500,000
==============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$2,091,073,317).................. 94.2% $2,252,410,591
Total convertible bonds (cost
$5,709,839)...................... 0.3 5,600,000
Total convertible preferred stocks
(cost $7,749,967)................ 0.3 7,749,967
Total preferred stocks (cost
$3,999,999)...................... 0.2 3,999,999
Total short-term securities (cost
$119,500,000).................... 5.0 119,500,000
----- --------------
Total investment in securities
(total cost $2,228,033,123)...... 100.0 2,389,260,557
Cash, receivables and other
assets........................... 3.1 74,028,954
Securities lending collateral...... 5.2 123,070,100
Payable for securities purchased... (3.1) (74,014,471)
Payable for fund shares redeemed... (0.0) (1,675,686)
Securities lending collateral
payable to brokers............... (5.2) (123,070,100)
Other liabilities.................. (0.0) (830,550)
----- --------------
Net assets......................... 100.0% $2,386,768,804
===== ==============
</TABLE>
25
<PAGE> 26
THE HARTFORD CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized;
74,848,911 shares outstanding........... $ 74,849
Paid-in surplus........................... 1,892,754,945
Accumulated net investment loss........... (8,215,438)
Accumulated undistributed net realized
gain on investments..................... 340,888,751
Unrealized appreciation of investments.... 161,227,434
Unrealized appreciation of forward foreign
currency contracts (See Note 2)+........ 9,866
Unrealized appreciation of other assets
and liabilities in foreign currencies... 28,397
--------------
Net assets................................ $2,386,768,804
==============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($1,142,194,026 / 35,306,914 shares
outstanding) (125,000,000 shares authorized)... $32.35
======
Maximum offering price per share
($32.35 / 94.5%)............................... $34.23
======
Class B
Net asset value per share and maximum offering
price per share ($751,986,179 / 23,961,735
shares outstanding) (75,000,000 shares
authorized).................................... $31.38
======
Class C
Net asset value per share
($410,492,607 / 13,094,525 shares outstanding)
(50,000,000 shares authorized)................. $31.35
======
Maximum offering price per share
($31.35 / 99.0%)............................... $31.67
======
Class Y
Net asset value per share and maximum offering
price per share ($82,095,991 / 2,485,737 shares
outstanding) (50,000,000 shares authorized).... $33.03
======
</TABLE>
* Non-income producing during the period.
@ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally by qualified institutional buyers. As of December 31, 1999, the
market value of these securities amounted to $22,559,492 or 0.9% of net
assets.
R Restricted Security (See Note 2)
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2000
<TABLE>
<CAPTION>
TOTAL CONTRACT DELIVERY UNREALIZED
DESCRIPTION MARKET VALUE AMOUNT DATE APPRECIATION
-------------------------------------------- ------------ ---------- -------- ------------
<S> <C> <C> <C> <C>
Japanese Yen (Buy) $3,791,936 $3,782,070 07/05/00 $9,866
======
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE> 27
THE HARTFORD MIDCAP FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 97.1%
AEROSPACE & DEFENSE -- 0.8%
*113,600 SCI Systems, Inc. ............. $ 4,451,700
------------
APPAREL & TEXTILE -- 0.3%
52,000 Liz Claiborne, Inc. ........... 1,833,000
------------
BUSINESS SERVICES -- 6.2%
68,000 Cintas Corp. .................. 2,494,750
*157,400 Convergys Corp. ............... 8,165,125
*29,700 Critical Path, Inc. ........... 1,731,881
*170,950 Iron Mountain, Inc. ........... 5,812,300
*73,000 Lamar Advertising Co., Class
A............................. 3,161,813
364,700 Manpower, Inc. ................ 11,670,400
------------
33,036,269
------------
CHEMICALS -- 0.8%
94,000 Eastman Chemical Co. .......... 4,488,500
------------
COMMUNICATIONS -- 7.1%
*339,325 American Tower Corp., Class
A............................. 14,145,610
*23,500 Crown Castle International
Corp. ........................ 857,750
*400,700 McLeodUSA, Inc., Class A....... 8,289,480
*164,600 Nextel Partners, Inc. ......... 5,359,788
*75,300 RCN Corp. ..................... 1,910,738
*92,300 TeleCorp PCS, Inc. ............ 3,720,844
*72,700 Western Wireless Corp., Class
A............................. 3,962,150
------------
38,246,360
------------
COMPUTERS & OFFICE
EQUIPMENT -- 2.2%
*129,800 Handspring, Inc. .............. 3,504,600
*163,900 Jabil Circuit, Inc. ........... 8,133,538
------------
11,638,138
------------
CONSUMER DURABLES -- 1.0%
212,400 Herman Miller, Inc. ........... 5,495,850
------------
CONSUMER NON-DURABLES -- 0.9%
224,500 McKesson HBOC, Inc. ........... 4,700,469
------------
DRUGS -- 5.2%
*67,000 Forest Laboratories, Inc. ..... 6,767,000
*87,100 Gilead Sciences, Inc. ......... 6,194,988
*41,700 IDEC Pharmaceuticals Corp. .... 4,891,931
*199,500 Immunex Corp. ................. 9,862,781
------------
27,716,700
------------
EDUCATION -- 0.9%
*186,300 DeVry, Inc. ................... 4,925,306
------------
ELECTRICAL EQUIPMENT -- 5.0%
105,300 Danaher Corp. ................. 5,205,768
80,800 Tektronix, Inc. ............... 5,979,200
*70,300 Teradyne, Inc. ................ 5,167,050
*46,600 Waters Corp. .................. 5,816,262
104,100 White Electronic Designs
Corp. ........................ 4,593,413
------------
26,761,693
------------
ELECTRONICS -- 7.9%
*66,640 Analog Devices, Inc. .......... 5,064,640
*140,200 Flextronics International
Ltd. ......................... 9,629,988
*36,900 Lattice Semiconductor Corp. ... 2,550,712
28,200 Molex, Inc., Class A........... 987,000
*110,000 Novellus Systems, Inc. ........ 6,221,874
*32,400 Rambus, Inc. .................. 3,337,200
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
ELECTRONICS -- (CONTINUED)
*138,000 Sanmina Corp. ................. $ 11,799,000
*39,700 Vitesse Semiconductor Corp. ... 2,920,431
------------
42,510,845
------------
ENERGY & SERVICES -- 8.4%
169,400 Anadarko Petroleum Corp. ...... 8,353,538
*180,600 Global Marine, Inc. ........... 5,090,663
*89,300 Nabors Industries, Inc. ....... 3,711,531
*482,900 R&B Falcon Corp. .............. 11,378,331
248,400 Suncor Energy, Inc. ........... 5,790,825
198,700 Transocean Sedco Forex,
Inc. ......................... 10,618,031
------------
44,942,919
------------
FINANCIAL SERVICES -- 5.7%
433,235 Ace Ltd. ...................... 12,130,580
103,040 Legg Mason, Inc. .............. 5,152,000
108,000 MBIA, Inc. .................... 5,204,250
77,000 State Street Corp. ............ 8,166,813
------------
30,653,643
------------
FOREST & PAPER PRODUCTS -- 1.0%
565,800 Abitibi-Consolidated, Inc. .... 5,304,375
------------
HEALTH SERVICES -- 3.1%
*406,800 Health Management Associates,
Inc., Class A................. 5,313,825
*41,640 Human Genome Sciences, Inc. ... 5,553,735
*218,100 Tenet Healthcare Corp. ........ 5,888,700
------------
16,756,260
------------
HOTELS & GAMING -- 0.8%
136,300 Starwood Hotels & Resorts
Worldwide, Inc. .............. 4,438,269
------------
MACHINERY -- 2.0%
*103,400 Grant Prideco, Inc. ........... 2,585,000
24,000 Harris Corp. .................. 786,000
*127,000 Lam Research Corp. ............ 4,762,500
*34,200 Smith International, Inc. ..... 2,490,188
------------
10,623,688
------------
MEDIA & ENTERTAINMENT -- 4.9%
*136,400 Adelphia Communications Corp.,
Class A....................... 6,393,750
*62,100 Allegiance Telecom, Inc. ...... 3,974,400
149,600 Pegasus Communications Corp.,
Class A....................... 7,339,750
119,700 Scripps (E.W.) Co. (The),
Class A....................... 5,895,225
*25,100 Univision Communications, Inc.,
Class A....................... 2,597,850
------------
26,200,975
------------
MEDICAL INSTRUMENTS &
SUPPLIES -- 3.3%
92,400 Becton, Dickinson & Co. ....... 2,650,725
236,700 Biomet, Inc. .................. 9,098,156
*128,500 St. Jude Medical, Inc. ........ 5,894,938
------------
17,643,819
------------
METALS, MINERALS & MINING -- 0.9%
113,300 Vulcan Materials Co. .......... 4,836,494
------------
</TABLE>
27
<PAGE> 28
THE HARTFORD MIDCAP FUND
STATEMENT OF NET ASSETS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RESEARCH & TESTING FACILITIES -- 1.2%
*83,400 Quest Diagnostics, Inc. ....... $ 6,234,150
------------
RETAIL -- 6.7%
651,487 Dollar General Corp. .......... 12,703,996
219,600 Family Dollar Stores, Inc. .... 4,295,925
411,940 Intimate Brands, Inc., Class
A............................. 8,135,815
137,700 RadioShack Corp. .............. 6,523,538
*111,500 Starbucks Corp. ............... 4,257,906
------------
35,917,180
------------
RUBBER & PLASTICS PRODUCTS -- 1.8%
*138,000 Sealed Air Corp. .............. 7,227,750
*63,700 Weatherford International,
Inc. ......................... 2,536,056
------------
9,763,806
------------
SOFTWARE & SERVICES -- 15.9%
*110,200 Affiliated Computer Services,
Inc., Class A................. 3,643,488
*435,900 Cabletron Systems, Inc. ....... 11,006,474
*450,400 Cadence Design Systems,
Inc. ......................... 9,176,900
*529,860 Ceridian Corp. ................ 12,749,756
*531,600 Gartner Group, Inc., Class A... 6,379,200
*75,100 HomeStore.com, Inc. ........... 2,191,981
*179,100 Intuit, Inc. .................. 7,410,262
*144,900 Keane, Inc. ................... 3,133,463
*19,400 Macromedia, Inc. .............. 1,875,738
*133,400 Rational Software Corp. ....... 12,397,863
*50,395 VeriSign, Inc. ................ 8,894,718
*121,300 Vignette Corp. ................ 6,309,495
------------
85,169,338
------------
TRANSPORTATION -- 2.3%
*130,200 Ryanair Holdings PLC ADR....... 4,752,300
413,955 Southwest Airlines Co. ........ 7,839,273
------------
12,591,573
------------
UTILITIES -- 0.8%
*68,300 Calpine Corp. ................. 4,490,725
------------
Total common stocks............ $521,372,044
============
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 3.8%
REPURCHASE AGREEMENT -- 3.8%
$20,434,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$20,445,235 (Collateralized by
$125,835,832 U.S. Treasury
Notes 5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29).......... $ 20,434,000
------------
Total short-term securities.... $ 20,434,000
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$463,574,732)..................... 97.1% $ 521,372,044
Total short-term securities (cost
$20,434,000)...................... 3.8 20,434,000
----- -------------
Total investment in securities
(total cost $484,008,732)......... 100.9 541,806,044
Cash, receivables and other
assets............................ 1.9 10,323,564
Securities lending collateral....... 10.1 54,401,200
Payable for securities purchased.... (2.8) (14,886,467)
Payable for fund shares redeemed.... (0.0) (538,830)
Securities lending collateral
payable to brokers................ (10.1) (54,401,200)
Other liabilities................... (0.0) (255,577)
----- -------------
Net assets.......................... 100.0% $ 536,448,734
===== =============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 26,239,793
shares outstanding........................ $ 26,240
Paid-in surplus............................. 441,182,304
Accumulated net investment loss............. (2,197,001)
Accumulated undistributed net realized gain
on investments............................ 39,639,879
Unrealized appreciation of investments...... 57,797,312
------------
Net assets.................................. $536,448,734
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($255,623,345 / 12,410,792 shares outstanding)
(125,000,000 shares authorized)................ $20.60
======
Maximum offering price per share
($20.60 / 94.5%)............................... $21.80
======
Class B
Net asset value per share and maximum offering
price per share ($111,343,078 / 5,507,608
shares outstanding) (75,000,000 shares
authorized).................................... $20.22
======
Class C
Net asset value per share
($128,411,684 / 6,350,279 shares outstanding)
(50,000,000 shares authorized)................. $20.22
======
Maximum offering price per share
($20.22 / 99.0%)............................... $20.43
======
Class Y
Net asset value per share and maximum offering
price per share ($41,070,627 / 1,971,114 shares
outstanding) (50,000,000 shares authorized).... $20.84
======
</TABLE>
* Non-income producing during the period.
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 29
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 90.9%
AUSTRALIA -- 1.1%
34,400..... News Corp., Ltd. ADR (Media &
Entertainment)................ $ 1,874,800
------------
BELGIUM -- 0.9%
2,100 Compagnie Luxembourgeoise pour
l'Audio-Visuel et la Finance
(Audiofina) (Media &
Entertainment)................ 271,760
*29,400 Lernout & Hauspie Speech
Products N.V. (Electronics)... 1,295,437
------------
1,567,197
------------
CANADA -- 1.9%
45,100 Alcan Aluminum Ltd. (Metals,
Minerals & Mining)............ 1,400,177
3,600 Nortel Networks Corp.
(Communications).............. 249,529
23,400 Nortel Networks Holdings Corp.
(Communications).............. 1,597,050
------------
3,246,756
------------
CHINA -- 1.4%
*3,500 China Mobile (Hong Kong) Ltd.
(Communications).............. 622,344
*49,300 China Unicom Ltd. ADR (Software
& Services)................... 1,047,625
*35,100 PetroChina Co., Ltd. (Energy &
Services)..................... 734,906
------------
2,404,875
------------
FINLAND -- 2.2%
55,780 Nokia Oyj (Communications)..... 2,857,976
32,370 UPM-Kymmene Group (Forest &
Paper Products)............... 806,768
------------
3,664,744
------------
FRANCE -- 13.4%
10,440 Air Liquids S.A. (Chemicals)... 1,367,049
32,600 Alcatel (Communications)....... 2,146,875
53,158 Aventis S.A. (Drugs)........... 3,895,638
14,950 AXA (Financial Services)....... 2,364,599
19,205 BNP Paribas (Financial
Services)..................... 1,855,698
3,870 Canal Plus (Media &
Entertainment)................ 652,914
3,400 Castorama Dubois Investissement
S.A. (Retail)................. 844,133
4,900 France Telecom S.A.
(Communications).............. 687,653
1,100 L'Oreal (Consumer Non-
Durables)..................... 956,384
10,100 Pinault-Printemps -- Redoute
S.A. (Retail)................. 2,252,943
*3,566 Thomson Multimedia (Media &
Entertainment)................ 231,763
</TABLE>
<TABLE>
<-> FRANCE -- (CONTINUED)
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
24,988 Total Fina S.A., B Shares
(Energy & Services)........... $ 3,846,887
17,800 Vivendi S.A. (Media &
Entertainment)................ 1,577,464
------------
22,680,000
------------
GERMANY -- 6.9%
36,005 BASF AG (Chemicals)............ 1,466,845
37,000 Bayerische Motoren Werke (BMW)
AG (Transportation)........... 1,131,422
18,900 Deutsche Bank AG (Financial
Services)..................... 1,586,172
*9,000 Infineon Technologies AG
(Software & Services)......... 736,772
11,316 Linde AG (Machinery)........... 458,845
44,300 RWE AG (Utilities)............. 1,509,648
2,139 SAP AG (Software & Services)... 401,473
29,017 Siemens AG (Electronics)....... 4,361,451
------------
11,652,628
------------
HONG KONG -- 1.5%
105,000 Cheung Kong (Holdings) Ltd.
(Real Estate)................. 1,161,798
336,400 Hong Kong Telecommunications
(Communications).............. 740,120
86,000 Sun Hung Kai Properties (Real
Estate)....................... 617,829
------------
2,519,747
------------
INDIA -- 0.5%
22,400 ICICI Ltd. ADR (Financial
Services)..................... 420,000
@28,700 Videsh Sanchar Nigam Ltd. GDR
(Communications).............. 448,438
------------
868,438
------------
IRELAND -- 0.2%
38,468 Allied Irish Banks PLC
(Financial Services).......... 346,625
------------
ITALY -- 3.3%
52,807 Mediaset S.p.A. (Media &
Entertainment)................ 809,924
114,000 San Paolo -- IMI S.p.A.
(Financial Services).......... 2,031,499
189,700 Telecom Italia Mobile S.p.A.
(Communications).............. 1,945,734
60,688 Telecom Italia S.p.A.
(Communications).............. 837,718
------------
5,624,875
------------
JAPAN -- 16.9%
108,000 Asahi Glass Co., Ltd. (Consumer
Durables)..................... 1,209,624
27,000 Canon, Inc. (Computers & Office
Equipment).................... 1,347,429
62,000 Dai Nippon Printing Co., Ltd.
(Media & Entertainment)....... 1,095,240
</TABLE>
29
<PAGE> 30
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
44,000 Fujisawa Pharmaceutical Co.
(Drugs)....................... $ 1,784,096
19,000 Hoya Corp. (Medical Instruments
& Supplies)................... 1,706,024
17,000 Matsumotokiyoshi Co., Ltd.
(Retail)...................... 1,786,742
5,000 Matsushita Communication
Industrial Co., Ltd.
(Communications).............. 585,058
25,000 Minebea Co., Ltd.
(Electronics)................. 314,268
80,000 Mitsubishi Electric Corp.
(Electronics)................. 868,041
61,000 NEC Corp. (Electronics)........ 1,919,916
85,000 Nikko Securities Co., Ltd.
(Financial Services).......... 843,561
167 Nippon Telegraph & Telephone
Corp. (Communications)........ 2,225,583
28 NTT Mobile Communication
Network, Inc. (Media &
Entertainment)................ 759,535
60,000 Omron Corp. (Electrical
Equipment).................... 1,633,247
12,800 Promise Co., Ltd. (Financial
Services)..................... 1,013,822
79,000 Ricoh Co., Ltd. (Media &
Entertainment)................ 1,676,299
7,900 Softbank Corp. (Software &
Services)..................... 1,075,221
10,000 Sony Corp. (Media &
Entertainment)................ 935,714
30,000 Takeda Chemical Industries Ltd.
(Drugs)....................... 1,973,507
99,000 Tokyo Style Co., Ltd. (Apparel
& Textile).................... 935,714
146,000 Toshiba Corp. (Computers &
Office Equipment)............. 1,651,791
8,900 Uni-Charm Corp. (Consumer
Non-Durables)................. 540,049
15,000 Yamanouchi Pharmaceuticals Co.,
Ltd. (Drugs).................. 820,877
------------
28,701,358
------------
MEXICO -- 1.6%
*504,800 Cifra S.A. de CV (Retail)...... 1,184,665
18,200 Fomento Economico Mexicano S.A.
de C.V. ADR (Food, Beverage &
Tobacco)...................... 783,738
10,200 Grupo Financiero -- Banacci
(Financial Services).......... 43,522
12,100 Telefonos de Mexico S.A. ADR
(Communications).............. 691,213
------------
2,703,138
------------
NETHERLANDS -- 6.6%
*50,500 Aegon N.V. (Financial
Services)..................... 1,804,194
4,640 Heineken N.V. (Food, Beverage &
Tobacco)...................... 283,551
</TABLE>
<TABLE>
<-> NETHERLANDS -- (CONTINUED)
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
28,366 ING Groep N.V. (Financial
Services)..................... $ 1,925,147
9,600 Koninklijke KPN N.V.
(Communications).............. 431,134
56,828 Koninklijke Philips Electronics
N.V. (Electronics)............ 2,691,050
46,900 Royal Dutch Petroleum Co.
(Energy & Services)........... 2,926,761
5,000 Royal Dutch Petroleum Co. (NY)
(Energy & Services)........... 307,813
9,300 STMicroelectronics N.V.
(Electronics)................. 588,382
*9,900 United Pan-Europe
Communications N.V. ADR (Media
& Entertainment).............. 267,300
------------
11,225,332
------------
SINGAPORE -- 0.5%
77,550 Overseas-Chinese Banking Corp.,
Ltd. (Financial Services)..... 533,752
70,804 Overseas Union Bank Ltd.
(Financial Services).......... 274,374
------------
808,126
------------
SOUTH KOREA -- 1.8%
20,400 Korea Telecom Corp.
(Communications).............. 986,850
@10,900 Samsung Electronics GDR
(Electronics)................. 2,136,400
------------
3,123,250
------------
SPAIN -- 5.5%
42,600 Banco Popular Espanol S.A.
(Financial Services).......... 1,323,083
218,900 Banco Santander Central Hispano
S.A. (Financial Services)..... 2,318,678
110,900 Endesa S.A. (Utilities)........ 2,156,980
13,300 Endesa S.A. ADR (Utilities).... 259,350
*@3,861 Groupo Prisa S.A. (Media &
Entertainment)................ 89,937
64,800 Repsol YPF S.A. (Energy &
Services)..................... 1,295,130
30,757 Telefonica S.A. ADR
(Communications).............. 1,970,370
------------
9,413,528
------------
SWEDEN -- 2.6%
226,650 Skandinaviska Enskilda, Class A
(Financial Services).......... 2,700,453
85,680 Telefonaktiebolaget LM Ericsson
AB (Communications)........... 1,704,666
------------
4,405,119
------------
</TABLE>
The accompanying notes are an integral part of this financial statement.
30
<PAGE> 31
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
SWITZERLAND -- 3.4%
450 Holderbank Financiere Glarus AG
(Bearer) (Consumer
Durables)..................... $ 553,484
2,067 Nestle S.A. (Food, Beverage &
Tobacco)...................... 4,150,360
680 Novartis AG (Drugs)............ 1,080,596
------------
5,784,440
------------
THAILAND -- 0.2%
*9,100 Siam Cement Co. (Consumer
Durables)..................... 170,754
*279,900 Siam Commercial Bank (Financial
Services)..................... 32,822
*258,800 Thai Farmers Bank (Financial
Services)..................... 217,736
------------
421,312
------------
UNITED KINGDOM -- 18.5%
99,000 Abbey National PLC (Financial
Services)..................... 1,184,020
62,800 AstraZeneca Group PLC
(Drugs)....................... 2,933,948
60,000 Barclays PLC (Financial
Services)..................... 1,489,677
373,864 BP Amoco PLC (Energy &
Services)..................... 3,588,392
334,411 British Airways PLC
(Transportation).............. 1,925,070
196,400 British American Tobacco PLC
(Food, Beverage & Tobacco).... 1,314,198
118,575 Cable & Wireless PLC
(Utilities)................... 2,014,109
25,728 Cadbury Schweppes PLC (Food,
Beverage & Tobacco)........... 169,139
*36,264 COLT Telecom Group PLC
(Communications).............. 1,205,056
33,800 III Group PLC (Financial
Services)..................... 693,862
219,400 Invensys PLC (Electrical
Equipment).................... 822,900
41,182 Lloyds TSB Group PLC (Financial
Services)..................... 390,282
80,500 Marconi PLC (Communications)... 1,046,244
130,663 Prudential Corp. PLC (Financial
Services)..................... 1,914,807
84,630 Psion PLC GBP (Software &
Services)..................... 815,492
435,600 Smith & Nephew PLC (Medical
Instruments & Supplies)....... 1,582,691
47,500 SmithKline Beecham PLC
(Drugs)....................... 624,181
23,000 SmithKline Beecham PLC ADR,
Class A (Drugs)............... 1,499,313
155,465 Standard Chartered PLC
(Financial Services).......... 1,933,469
156,000 Tomkins PLC (Food, Beverage &
Tobacco)...................... 503,038
</TABLE>
<TABLE>
<-> UNITED KINGDOM -- (CONTINUED)
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
798,120 Vodafone AirTouch PLC
(Communications).............. $ 3,238,170
95,200 Williams PLC (Business
Services)..................... 551,271
------------
31,439,329
------------
Total common stocks............ $154,475,617
============
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
FOREIGN/YANKEE BONDS & NOTES -- 2.2%
FOREIGN GOVERNMENTS -- 2.2%
$ 3,920,000 Bundesschatzanweisungen
3.25% due 09/15/00............ $ 3,747,334
------------
Total foreign/yankee bonds &
notes......................... $ 3,747,334
============
SHORT-TERM SECURITIES -- 10.8%
U.S. TREASURY BILLS -- 0.4%
100,000 5.45% due 07/20/00 $ 99,743
100,000 5.62% due 07/20/00 99,735
100,000 5.65% due 07/06/00 99,953
100,000 5.66% due 07/20/00 99,733
300,000 5.705% due 07/06/00 299,857
------------
699,021
------------
REPURCHASE AGREEMENT-- 10.4%
17,599,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$17,608,677 (Collateralized by
$125,835,832 U.S. Treasury
Notes 5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29).......... 17,599,000
------------
Total short-term securities.... $ 18,298,021
============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $144,086,351)............... 90.9% $154,475,617
Total foreign/yankee bonds & notes
(cost $3,544,234)................. 2.2 3,747,334
Total short-term securities
(cost $18,298,020)................ 10.8 18,298,021
----- ------------
Total investment in securities
(total cost $165,928,605)......... 103.9 176,520,972
Cash, receivables and other
assets............................ 4.2 7,136,008
Securities lending collateral....... 1.1 1,930,542
Payable for securities purchased.... (8.0) (13,603,389)
Payable for fund shares redeemed.... (0.1) (134,361)
Securities lending collateral
payable to brokers................ (1.1) (1,930,542)
Other liabilities................... (0.0) (32,918)
----- ------------
Net assets.......................... 100.0% $169,886,312
===== ============
</TABLE>
31
<PAGE> 32
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 11,703,034
shares outstanding........................ $ 11,703
Paid-in surplus............................. 151,968,294
Accumulated undistributed net investment
income.................................... 125,714
Accumulated undistributed net realized gain
on investments............................ 7,294,695
Unrealized appreciation of investments...... 10,592,367
Unrealized depreciation of futures
contracts................................. (50,238)
Unrealized appreciation of forward foreign
currency contracts (See Note 2)+.......... 3,239
Unrealized depreciation of other assets and
liabilities in foreign currencies......... (59,462)
------------
Net assets.................................. $169,886,312
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($90,287,562 / 6,183,679 shares outstanding)
(125,000,000 shares authorized)................ $14.60
======
Maximum offering price per share
($14.60 / 94.5%)............................... $15.45
======
Class B
Net asset value per share and maximum offering
price per share ($27,353,508 / 1,912,115 shares
outstanding) (75,000,000 shares authorized).... $14.31
======
Class C
Net asset value per share
($27,793,260 / 1,951,430 shares outstanding)
(50,000,000 shares authorized)................. $14.24
======
Maximum offering price per share
($14.24 / 99.0%)............................... $14.38
======
Class Y
Net asset value per share and maximum offering
price per share ($24,451,982 / 1,655,810 shares
outstanding) (50,000,000 shares authorized).... $14.77
======
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Apparel & Textile.................... 0.6% $ 935,714
Business Services.................... 0.3 551,271
Chemicals............................ 1.7 2,833,892
Communications....................... 15.4 26,217,783
Computer & Office Equipment.......... 1.8 2,999,220
Consumer Durables.................... 1.1 1,933,861
Consumer Non-Durables................ 0.9 1,496,433
Drugs................................ 8.6 14,612,155
Electrical Equipment................. 1.4 2,456,147
Electronics.......................... 8.3 14,174,945
Energy & Services.................... 7.5 12,699,889
Financial Services................... 17.2 29,241,855
Food, Beverage & Tobacco............. 4.2 7,204,023
Forest & Paper Products.............. 0.5 806,768
Machinery............................ 0.3 458,845
Media & Entertainment................ 6.1 10,242,650
Medical Instruments & Supplies....... 1.9 3,288,716
Metals, Minerals & Mining............ 0.8 1,400,177
Real Estate.......................... 1.0 1,779,627
Retail............................... 3.6 6,068,484
Software & Services.................. 2.4 4,076,582
Transportation....................... 1.8 3,056,493
Utilities............................ 3.5 5,940,087
---- ------------
Total common stocks.................. 90.9% $154,475,617
==== ============
</TABLE>
* Non-income producing during the period.
@ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally by qualified institutional buyers. As of June 30, 2000, the market
value of these securities amounted to $2,674,775 or 1.6% of net assets.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2000
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
------------------------------------------ ------------ ---------- ------------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $ 988,241 $ 983,378 07/03/00 $ 4,863
British Pounds (Buy) 213,505 213,301 07/05/00 204
British Pounds (Buy) 922,085 925,436 07/06/00 (3,351)
British Pounds (Buy) 2,086,970 2,091,052 07/07/00 (4,082)
British Pounds (Sell) 174,930 173,162 07/03/00 (1,768)
Canadian Dollars (Buy) 169,484 169,623 07/06/00 (139)
EURO (Buy) 1,742,612 1,723,817 07/31/00 18,795
EURO (Buy) 65,051 64,183 07/31/00 868
EURO (Buy) 2,061,847 2,054,127 07/05/00 7,720
EURO (Buy) 1,460,657 1,457,550 07/31/00 3,107
EURO (Buy) 63,797 63,605 07/17/00 192
EURO (Sell) 395,927 387,423 07/31/00 (8,504)
EURO (Sell) 567,658 557,005 07/03/00 (10,653)
EURO (Sell) 559,791 556,422 07/05/00 (3,369)
Japanese Yen (Buy) 134,638 134,948 07/03/00 (310)
Japanese Yen (Sell) 689,111 694,841 07/05/00 5,730
Japanese Yen (Sell) 883,825 881,526 07/05/00 (2,299)
Mexican Peso (Buy) 70,723 70,839 07/03/00 (116)
Swedish Krona (Buy) 435,888 433,945 07/05/00 1,943
Swedish Krona (Sell) 1,047,577 1,036,811 07/05/00 (10,766)
Swiss Franc (Buy) 690,739 686,964 07/03/00 3,775
Swiss Franc (Buy) 579,499 578,100 07/05/00 1,399
--------
$ 3,239
========
</TABLE>
The accompanying notes are an integral part of this financial statement.
32
<PAGE> 33
THE HARTFORD GLOBAL LEADERS FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 93.3%
AUSTRALIA -- 1.5%
110,700 News Corp., Ltd. ADR (Media &
Entertainment)................ $ 6,033,150
------------
BELGIUM -- 1.8%
*172,300 Lernout & Hauspie Speech
Products N.V. (Electronics)... 7,591,969
------------
FINLAND -- 0.9%
68,680 Nokia Oyj (Communications)..... 3,518,928
------------
FRANCE -- 11.5%
67,400 Alcatel (Communications)....... 4,438,631
124,900 Aventis S.A. (Drugs)........... 9,153,188
56,600 AXA (Financial Services)....... 8,952,263
29,000 Pinault-Printemps -- Redoute
S.A. (Retail)................. 6,468,846
*99,346 Thomson Multimedia (Media &
Entertainment)................ 6,456,728
38,830 Total Fina S.A., B Shares
(Energy & Services)........... 5,977,855
67,000 Vivendi S.A. (Media &
Entertainment)................ 5,937,644
------------
47,385,155
------------
GERMANY -- 4.0%
179,600 Bayerische Motoren Werke (BMW)
AG (Transportation)........... 5,491,987
*35,100 Infineon Technologies AG
(Software & Services)......... 2,873,409
53,780 Siemens AG (Electronics)....... 8,083,497
------------
16,448,893
------------
ITALY -- 1.1%
258,500 San Paolo -- IMI S.p.A.
(Financial Services).......... 4,606,514
------------
JAPAN -- 6.5%
100,000 Fujisawa Pharmaceutical Co.
(Drugs)....................... 4,054,764
60,000 Fujitsu Ltd. (Electronics)..... 2,081,256
501,000 Mitsubishi Electric Corp.
(Electronics)................. 5,436,104
96,000 Ricoh Co., Ltd. (Media &
Entertainment)................ 2,037,022
19,200 Softbank Corp. (Software &
Services)..................... 2,613,195
77,000 Takeda Chemical Industries Ltd.
(Drugs)....................... 5,065,334
497,000 Toshiba Corp. (Computers &
Office Equipment)............. 5,622,878
------------
26,910,553
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
NETHERLANDS -- 4.9%
69,000 ING Groep N.V. (Financial
Services)..................... $ 4,682,898
127,796 Koninklijke Philips Electronics
N.V. (Electronics)............ 6,051,690
154,100 Ricoh Co., Ltd. (Media &
Entertainment)................ 9,616,479
------------
20,351,067
------------
SOUTH KOREA -- 0.8%
@17,700 Samsung Electronics GDR
(Electronics)................. 3,469,200
------------
SPAIN -- 2.1%
63,900 Banco Popular Espanol S.A.
(Financial Services).......... 1,984,624
220,500 Banco Santander Central Hispano
S.A. (Financial Services)..... 2,335,626
*@9,374 Groupo Prisa S.A. (Media &
Entertainment)................ 218,355
*185,910 Telefonica S.A.
(Communications).............. 4,009,754
------------
8,548,359
------------
SWEDEN -- 0.8%
267,520 Skandinaviska Enskilda, Class A
(Financial Services).......... 3,187,404
------------
SWITZERLAND -- 3.2%
14,740 Credit Suisse Group (Financial
Services)..................... 2,941,537
5,120 Nestle S.A. (Food, Beverage &
Tobacco)...................... 10,280,524
------------
13,222,061
------------
UNITED KINGDOM -- 10.9%
145,300 AstraZeneca Group PLC
(Drugs)....................... 6,788,260
683,300 BP Amoco PLC (Energy &
Services)..................... 6,558,395
813,900 British Airways PLC
(Transportation).............. 4,685,298
313,500 Cable & Wireless PLC
(Utilities)................... 5,325,095
68,100 III Group PLC (Financial
Services)..................... 1,397,989
363,100 Marconi PLC (Communications)... 4,719,147
558,100 Psion PLC GBP (Software &
Services)..................... 5,377,834
556,400 SmithKline Beecham PLC
(Drugs)....................... 7,311,454
687,917 Vodafone AirTouch PLC
(Communications).............. 2,791,051
------------
44,954,523
------------
UNITED STATES OF
AMERICA -- 43.3%
*93,200 3Com Corp. (Software &
Services)..................... 5,370,650
113,800 Abbott Laboratories (Drugs).... 5,071,213
*61,800 Akamai Technologies, Inc.
(Software & Services)......... 7,337,784
</TABLE>
33
<PAGE> 34
THE HARTFORD GLOBAL LEADERS FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UNITED STATES OF AMERICA -- (CONTINUED)
112,700 American Home Products Corp.
(Drugs)....................... $ 6,621,125
88,400 Automatic Data Processing, Inc.
(Software & Services)......... 4,734,925
56,800 Baxter International, Inc.
(Medical Instruments &
Supplies)..................... 3,993,750
*70,500 Biogen, Inc. (Drugs)........... 4,547,250
*275,400 Boston Scientific Corp.
(Medical Instruments &
Supplies)..................... 6,041,588
36,200 Cardinal Health, Inc. (Consumer
Non-Durables)................. 2,678,800
*110,480 Cisco Systems, Inc. (Computers
& Office Equipment)........... 7,022,385
100,910 Citigroup, Inc. (Financial
Services)..................... 6,079,828
*122,200 Echostar Communications Corp.,
Class A (Communications)...... 4,045,966
107,700 Exxon Mobil Corp. (Energy &
Services)..................... 8,454,450
*136,500 FedEx Corp. (Transportation)... 5,187,000
128,240 General Electric Co.
(Electronics)................. 6,796,720
*110,700 Genzyme Corp. (Drugs).......... 6,579,731
72,800 Gillette Co. (The)............. 2,543,450
55,400 Goldman Sachs Group, Inc. (The)
(Financial Services).......... 5,256,074
*111,100 Immunex Corp. (Drugs).......... 5,492,506
13,600 Intel Corp. (Electronics)...... 1,818,150
*39,500 Intuit, Inc. (Software &
Services)..................... 1,634,312
*39,500 JDS Uniphase Corp.
(Electronics)................. 4,735,063
*74,500 Micron Technology, Inc.
(Electronics)................. 6,560,656
*105,300 Microsoft Corp. (Software &
Services)..................... 8,424,000
*69,000 NTL, Inc. (Media &
Entertainment)................ 4,131,375
70,200 PepsiCo, Inc. (Food, Beverage &
Tobacco)...................... 3,119,512
126,745 Pharmacia Corp. (Chemicals).... 6,551,132
235,500 Philip Morris Co., Inc. (Food,
Beverage & Tobacco)........... 6,255,469
*60,100 Red Hat, Inc. (Software &
Services)..................... 1,626,456
56,000 Schlumberger Ltd. (Energy &
Services)..................... 4,179,000
76,400 Sprint Corp.
(Communications).............. 3,896,400
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
UNITED STATES OF AMERICA -- (CONTINUED)
*13,100 Sycamore Networks, Inc.
(Communications).............. $ 1,445,913
84,000 Transocean Sedco Forex, Inc.
(Energy & Services)........... 4,488,750
*25,400 VeriSign, Inc. (Software &
Services)..................... 4,483,100
132,000 Walt Disney Co. (The) (Media &
Entertainment)................ 5,123,250
332,700 Waste Management, Inc.
(Utilities)................... 6,321,300
------------
178,649,033
------------
Total common stocks............ $384,876,809
============
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT
-----------
<CAPTION>
<C> <S> <C>
SHORT-TERM SECURITIES -- 8.9%
REPURCHASE AGREEMENT -- 8.9%
$36,815,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$36,835,242 (Collateralized by
$125,835,832 U.S. Treasury
Notes 5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29).......... $ 36,815,000
------------
Total short-term securities.... $ 36,815,000
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $360,165,980).................. 93.3% $384,876,809
Total short-term securities
(cost $36,815,000)................... 8.9 36,815,000
----- ------------
Total investment in securities
(total cost $396,980,980)............ 102.2 421,691,809
Cash, receivables and other assets..... 5.4 22,087,978
Securities lending collateral.......... 2.8 11,665,400
Payable for securities purchased....... (7.3) (30,004,020)
Payable for fund shares redeemed....... (0.2) (722,760)
Securities lending collateral
payable to brokers................... (2.8) (11,665,400)
Other liabilities...................... (0.1) (210,531)
----- ------------
Net assets............................. 100.0% $412,842,476
===== ============
</TABLE>
The accompanying notes are an integral part of this financial statement.
34
<PAGE> 35
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 21,794,554
shares outstanding........................ $ 21,795
Paid-in surplus............................. 378,428,346
Accumulated net investment loss............. (67,443)
Accumulated undistributed net realized gain
on investments............................ 9,397,567
Unrealized appreciation of investments...... 24,710,829
Unrealized appreciation of futures
contracts................................. 331,262
Unrealized appreciation of forward foreign
currency contracts (See Note 2)+.......... 52,410
Unrealized depreciation of other assets and
liabilities in foreign currencies......... (32,290)
------------
Net assets.................................. $412,842,476
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($209,162,598 /
10,979,945 shares outstanding) (125,000,000
shares authorized)............................. $19.05
======
Maximum offering price per share ($19.05 /
94.5%)......................................... $20.16
======
Class B
Net asset value per share and maximum offering
price per share ($67,706,292 / 3,598,478 shares
outstanding) (75,000,000 shares authorized).... $18.82
======
Class C
Net asset value per share ($127,541,076 /
6,777,287 shares outstanding) (50,000,000
shares authorized)............................. $18.82
======
Maximum offering price per share ($18.82 /
99.0%)......................................... $19.01
======
Class Y
Net asset value per share and maximum offering
price per share ($8,432,510 / 438,844 shares
outstanding) (50,000,000 shares authorized).... $19.21
======
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Chemicals........................... 1.6% $ 6,551,132
Communications...................... 7.0 28,865,790
Computers & Office Equipment........ 3.1 12,645,263
Consumer Non-Durables............... 1.3 5,222,250
Drugs............................... 14.7 60,684,824
Electronics......................... 12.7 52,624,304
Energy & Services................... 7.2 29,658,451
Financial Services.................. 10.0 41,424,758
Food, Beverage & Tobacco............ 4.8 19,655,505
Media & Entertainment............... 9.6 39,554,003
Media Instruments & Supplies........ 2.4 10,035,338
Retail.............................. 1.6 6,468,846
Software & Services................. 10.8 44,475,666
Transportation...................... 3.7 15,364,284
Utilities........................... 2.8 11,646,395
----- ------------
Total common stocks........ 93.3% $384,876,809
===== ============
</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. At June 30, 2000, the market value
of these securities amounted to $3,687,555 or 0.9% of net assets.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2000
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
----------------------------------------- ------------ ---------- -------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $ 860,165 $ 855,932 07/03/00 $ 4,233
British Pounds (Buy) 2,605,511 2,579,180 07/03/00 26,331
British Pounds (Sell) 486,243 488,009 07/06/00 1,766
EURO (Buy) 382,669 378,542 07/31/00 4,127
EURO (Buy) 519,721 512,787 07/31/00 6,934
EURO (Buy) 2,064,351 2,056,622 07/05/00 7,729
EURO (Sell) 1,491,216 1,482,242 07/05/00 (8,974)
EURO (Sell) 1,383,132 1,377,088 07/31/00 (6,044)
Japanese Yen (Sell) 859,524 866,671 07/05/00 7,147
Swiss Franc (Buy) 1,676,503 1,667,342 07/03/00 9,161
-------
$52,410
=======
</TABLE>
35
<PAGE> 36
THE HARTFORD STOCK FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- 96.2%
AEROSPACE & DEFENSE -- 1.8%
*181,100 General Motors, Class H...... $ 15,891,525
350,200 United Technologies Corp. ... 20,618,025
--------------
36,509,550
--------------
BUSINESS SERVICES -- 0.1%
214,150 ServiceMaster Co. (The)...... 2,435,956
--------------
CHEMICALS -- 3.0%
600,000 Dow Chemical Co. (The)....... 18,112,500
565,800 Pharmacia Corp. ............. 29,244,788
359,100 Praxair, Inc. ............... 13,443,806
--------------
60,801,094
--------------
COMMUNICATIONS -- 13.3%
*250,000 American Tower Corp.,
Class A..................... 10,421,875
552,000 AT&T Corp. .................. 17,457,000
*617,200 Global Crossing Ltd. ........ 16,240,075
622,900 Lucent Technologies, Inc. ... 36,906,825
235,400 Motorola, Inc. .............. 6,841,313
520,000 Nokia Corp. ADR.............. 25,967,500
480,000 Nortel Networks Holdings
Corp. ...................... 32,760,000
962,900 SBC Communications, Inc. .... 41,645,425
*100,000 Tellabs, Inc. ............... 6,843,750
466,100 Verizon Communications ...... 23,683,706
*1,080,367 Worldcom, Inc. .............. 49,561,836
--------------
268,329,305
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 10.0%
*1,086,800 Cisco Systems, Inc. ......... 69,079,724
*430,000 Dell Computer Corp. ......... 21,204,375
*279,400 EMC Corp. ................... 21,496,338
180,000 Hewlett-Packard Co. ......... 22,477,500
327,100 International Business
Machines Corp. ............. 35,837,893
*738,800 Solectron Corp. ............. 30,937,250
--------------
201,033,080
--------------
CONSUMER NON-DURABLES -- 5.6%
413,400 Cardinal Health, Inc. ....... 30,591,600
600,000 Gillette Co. (The)........... 20,962,500
351,700 Procter & Gamble Co. (The)... 20,134,825
*565,900 Safeway, Inc. ............... 25,536,238
330,000 Tyco International Ltd. ..... 15,633,750
--------------
112,858,913
--------------
DRUGS -- 7.0%
500,300 Abbott Laboratories.......... 22,294,619
550,000 American Home Products
Corp. ...................... 32,312,500
340,000 Bristol-Myers Squibb Co. .... 19,805,000
*198,900 Immunex Corp. ............... 9,833,119
332,800 Merck & Co., Inc. ........... 25,500,800
659,900 Pfizer, Inc. ................ 31,675,200
--------------
141,421,238
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
ELECTRICAL EQUIPMENT -- 1.2%
*330,700 Teradyne, Inc. .............. $ 24,306,450
--------------
ELECTRONICS -- 9.7%
*22,800 Broadcom Corp., Class A...... 4,991,774
1,229,700 General Electric Co. ........ 65,174,100
516,500 Intel Corp. ................. 69,049,594
*339,800 Micron Technology, Inc. ..... 29,923,638
308,600 Texas Instruments, Inc. ..... 21,196,962
*70,000 Vitesse Semiconductor
Corp. ...................... 5,149,375
--------------
195,485,443
--------------
ENERGY & SERVICES -- 5.5%
664,800 Exxon Mobil Corp. ........... 52,186,800
284,400 Royal Dutch Petroleum Co. ... 17,508,375
259,700 Schlumberger Ltd. ........... 19,380,113
409,500 Texaco, Inc. ................ 21,805,875
--------------
110,881,163
--------------
FINANCIAL SERVICES -- 11.3%
250,437 American International Group,
Inc. ....................... 29,426,347
1,011,300 Associates First Capital
Corp., Class A.............. 22,564,631
597,598 Citigroup, Inc. ............. 36,005,280
560,000 Fleet Boston Financial
Corp. ...................... 19,040,000
409,500 Franklin Resources, Inc. .... 12,438,562
235,000 Goldman Sachs Group, Inc.
(The)....................... 22,295,624
380,200 Marsh & McLennan Cos.,
Inc. ....................... 39,707,138
171,400 Merrill Lynch & Co., Inc. ... 19,711,000
240,800 State Street Corp. .......... 25,539,850
--------------
226,728,432
--------------
FOOD, BEVERAGE & TOBACCO -- 2.3%
200,000 Coca-Cola Co. (The).......... 11,487,500
764,400 PepsiCo, Inc. ............... 33,968,025
--------------
45,455,525
--------------
FOREST & PAPER PRODUCTS -- 1.9%
350,000 Kimberly-Clark Corp. ........ 20,081,250
430,000 Weyerhaeuser Co. ............ 18,490,000
--------------
38,571,250
--------------
MACHINERY -- 0.8%
450,000 Caterpillar, Inc. ........... 15,243,750
--------------
MEDIA & ENTERTAINMENT -- 4.1%
*900,000 AT&T -- Liberty Media Group,
Class A..................... 21,825,000
590,000 Gannett Co., Inc. ........... 35,289,375
*384,632 Viacom, Inc., Class B........ 26,227,095
--------------
83,341,470
--------------
MEDICAL INSTRUMENTS &
SUPPLIES -- 2.3%
422,200 Guidant Corp. ............... 20,898,900
250,000 Johnson & Johnson Co. ....... 25,468,750
--------------
46,367,650
--------------
</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)
METALS, MINERALS & MINING -- 1.9%
700,000 Alcoa, Inc. ................. $ 20,300,000
300,000 Illinois Tool Works, Inc. ... 17,100,000
--------------
37,400,000
--------------
RETAIL -- 5.3%
397,600 CVS Corp. ................... 15,904,000
400,000 Home Depot, Inc. (The)....... 19,975,000
1,110,000 McDonald's Corp. ............ 36,560,625
580,500 Wal-Mart Stores, Inc. ....... 33,451,313
--------------
105,890,938
--------------
SOFTWARE & SERVICES -- 9.1%
*96,300 3Com Corp. .................. 5,549,288
*500,000 America Online, Inc. ........ 26,375,000
300,000 Automatic Data Processing,
Inc. ....................... 16,068,750
*337,100 China Unicom Ltd. ADR........ 7,163,375
*180,000 Computer Sciences Corp. ..... 13,443,750
260,000 Electronic Data Systems
Corp. ...................... 10,725,000
*1,044,400 Microsoft Corp. ............. 83,552,000
*113,750 VeriSign, Inc. .............. 20,076,875
--------------
182,954,038
--------------
Total common stocks.......... $1,936,015,245
==============
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 3.2%
REPURCHASE AGREEMENT -- 3.2%
$63,485,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$63,519,907 (Collateralized
by $125,835,832 U.S.
Treasury Notes 5.50% -
7.875% due 08/31/01 -
11/15/04, $1,943,730,718
U.S. Treasury Bonds
5.25% - 10.625% due
08/15/15 - 02/15/29)........ $ 63,485,000
--------------
Total short-term
securities.................. $ 63,485,000
==============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $1,744,736,841)............ 96.2% $1,936,015,245
Total short-term securities
(cost $63,485,000)............... 3.2 63,485,000
----- --------------
Total investment in securities
(total cost $1,808,221,841)...... 99.4 1,999,500,245
Cash, receivables and other
assets........................... 0.8 15,260,795
Securities lending collateral...... 2.6 52,185,300
Payable for securities purchased... 0.0 (27,073)
Payable for fund shares redeemed... (0.1) (1,678,684)
Securities lending collateral
payable to brokers............... (2.6) (52,185,300)
Other liabilities.................. (0.1) (542,061)
----- --------------
Net assets......................... 100.0% $2,012,513,222
===== ==============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized;
85,741,022 shares outstanding........... $ 85,741
Paid-in surplus........................... 1,747,399,408
Accumulated net investment loss........... (4,368,926)
Accumulated undistributed net realized
gain on investments..................... 78,118,595
Unrealized appreciation of investments.... 191,278,404
--------------
Net assets................................ $2,012,513,222
==============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($975,249,975 /
40,967,120 shares outstanding) (125,000,000
shares authorized)............................. $23.80
======
Maximum offering price per share ($23.80 /
94.5%)......................................... $25.19
======
Class B
Net asset value per share and maximum offering
price per share ($553,938,182 / 23,941,211
shares outstanding) (75,000,000 shares
authorized).................................... $23.14
======
Class C
Net asset value per share ($449,844,559 /
19,450,654 shares outstanding) (50,000,000
shares authorized)............................. $23.13
======
Maximum offering price per share($23.13 /
99.0%)......................................... $23.36
======
Class Y
Net asset value per share and maximum offering
price per share ($33,480,506 / 1,382,037 shares
outstanding) (50,000,000 shares authorized).... $24.23
======
</TABLE>
* Non-income producing during the period.
37
<PAGE> 38
THE HARTFORD GROWTH AND INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 97.8%
AEROSPACE & DEFENSE -- 2.2%
*10,957 General Motors, Class H........ $ 961,468
24,200 Honeywell International,
Inc. ......................... 815,237
61,700 United Technologies Corp. ..... 3,632,588
------------
5,409,293
------------
BUSINESS SERVICES -- 0.5%
*22,931 eBay, Inc. .................... 1,245,440
------------
CHEMICALS -- 2.6%
23,800 du Pont (E.I.) de Nemours &
Co. .......................... 1,041,250
*73,400 Grace (W.R.) & Co. ............ 889,975
86,253 Pharmacia Corp. ............... 4,458,202
------------
6,389,427
------------
COMMUNICATIONS -- 10.7%
*19,700 American Tower Corp., Class
A............................. 821,244
48,250 AT&T Corp. .................... 1,525,906
*22,900 Comverse Technology, Inc. ..... 2,129,700
*19,700 Echostar Communications Corp.,
Class A....................... 652,255
*26,300 Global Crossing Ltd. .......... 692,019
54,000 Lucent Technologies, Inc. ..... 3,199,500
48,500 Nortel Networks Holdings
Corp. ........................ 3,310,125
*15,800 Phone.com, Inc. ............... 1,028,975
41,309 SBC Communications, Inc. ...... 1,786,614
55,000 Sprint Corp. .................. 2,805,000
*24,800 Sprint PCS Group............... 1,475,600
65,300 Verizon Communications......... 3,318,056
*7,900 VoiceStream Wireless Corp. .... 918,745
*45,600 Worldcom, Inc. ................ 2,091,900
------------
25,755,639
------------
COMPUTERS & OFFICE
EQUIPMENT -- 11.2%
*137,200 Cisco Systems, Inc. ........... 8,720,774
*76,000 Dell Computer Corp. ........... 3,747,750
*38,900 EMC Corp. ..................... 2,992,869
*26,100 Handspring, Inc. .............. 704,700
30,300 Hewlett-Packard Co. ........... 3,783,713
45,500 International Business Machines
Corp. ........................ 4,985,092
*49,300 Solectron Corp. ............... 2,064,438
------------
26,999,336
------------
CONSUMER DURABLES -- 0.7%
6,700 Corning, Inc. ................. 1,808,163
------------
CONSUMER NON-DURABLES -- 2.6%
22,200 Cardinal Health, Inc. ......... 1,642,800
16,100 Procter & Gamble Co. (The)..... 921,725
*26,900 Safeway, Inc. ................. 1,213,862
53,300 Tyco International Ltd. ....... 2,525,088
------------
6,303,475
------------
DRUGS -- 7.4%
58,800 Abbott Laboratories............ 2,620,275
38,400 American Home Products
Corp. ........................ 2,256,000
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
DRUGS -- (CONTINUED)
19,100 Bristol-Myers Squibb Co. ...... $ 1,112,575
*18,300 Forest Laboratories, Inc. ..... 1,848,300
*42,800 Genzyme Corp. ................. 2,543,925
*34,000 Immunex Corp. ................. 1,680,875
32,600 Merck & Co., Inc. ............. 2,497,975
70,475 Pfizer, Inc. .................. 3,382,800
------------
17,942,725
------------
ELECTRICAL EQUIPMENT -- 0.7%
*23,400 Teradyne, Inc. ................ 1,719,900
------------
ELECTRONICS -- 10.6%
*18,100 Analog Devices, Inc. .......... 1,375,600
12,900 Eaton Corp. ................... 864,300
182,200 General Electric Co. .......... 9,656,600
66,300 Intel Corp. ................... 8,863,480
*10,300 JDS Uniphase Corp. ............ 1,234,713
*33,800 Micron Technology, Inc. ....... 2,976,512
*6,800 RF Micro Devices, Inc. ........ 595,850
------------
25,567,055
------------
ENERGY & SERVICES -- 5.3%
79,900 Conoco, Inc., Class B.......... 1,962,544
11,000 Enron Corp. ................... 709,500
78,800 Exxon Mobil Corp. ............. 6,185,800
28,900 Helmerich & Payne, Inc. ....... 1,080,138
23,500 Kerr-McGee Corp. .............. 1,385,031
63,700 Union Pacific Resources Group,
Inc. ......................... 1,401,400
------------
12,724,413
------------
FINANCIAL SERVICES -- 13.3%
40,225 American International Group,
Inc. ......................... 4,726,438
16,100 CIGNA Corp. ................... 1,505,350
90,500 Citigroup, Inc. ............... 5,452,625
52,900 Cullen/Frost Bankers, Inc. .... 1,391,931
48,200 Edwards (A.G.) & Sons, Inc. ... 1,879,800
27,300 Fannie Mae..................... 1,424,719
11,700 Goldman Sachs Group,
Inc. (The).................... 1,110,037
97,400 KeyCorp........................ 1,716,675
24,800 Marsh & McLennan Cos., Inc. ... 2,590,050
37,600 Merrill Lynch & Co., Inc. ..... 4,324,000
29,600 Morgan Stanley Dean Witter &
Co. .......................... 2,464,200
95,600 Pacific Century Financial
Corp. ........................ 1,398,150
37,900 Wachovia Corp. ................ 2,056,075
------------
32,040,050
------------
FOOD, BEVERAGE & TOBACCO -- 4.0%
24,400 Anheuser-Busch Cos., Inc. ..... 1,822,374
12,400 Coca-Cola Co. (The)............ 712,225
51,800 Nabisco Group Holding Corp. ... 1,343,563
73,400 PepsiCo, Inc. ................. 3,261,712
91,100 Philip Morris Co., Inc. ....... 2,419,844
------------
9,559,718
------------
</TABLE>
The accompanying notes are an integral part of this financial statement.
38
<PAGE> 39
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
FOREST & PAPER PRODUCTS -- 1.5%
48,800 Kimberly-Clark Corp. .......... $ 2,799,900
22,400 Temple-Inland, Inc. ........... 940,800
------------
3,740,700
------------
HEALTH SERVICES -- 0.4%
*36,300 Tenet Healthcare Corp. ........ 980,100
------------
MACHINERY -- 0.6%
19,400 Black & Decker Corp. .......... 762,663
31,500 Pall Corp. .................... 582,750
------------
1,345,413
------------
MEDIA & ENTERTAINMENT -- 1.8%
*85,200 AT&T -- Liberty Media Group,
Class A....................... 2,066,100
29,800 Gannett Co., Inc. ............. 1,782,413
9,200 Pegasus Communications Corp.,
Class A....................... 451,375
------------
4,299,888
------------
MEDICAL INSTRUMENTS &
SUPPLIES -- 1.5%
63,500 Becton, Dickinson & Co. ....... 1,821,656
*36,100 Boston Scientific Corp. ....... 791,944
9,900 Johnson & Johnson Co. ......... 1,008,563
------------
3,622,163
------------
METALS, MINERALS & MINING -- 1.4%
23,800 Alcoa, Inc. ................... 690,200
75,600 Engelhard Corp. ............... 1,289,925
77,800 Freeport-McMoRan Copper & Gold,
Inc., Class A................. 709,925
10,700 Illinois Tool Works, Inc. ..... 609,900
------------
3,299,950
------------
RETAIL -- 3.9%
*12,900 Best Buy Co., Inc. ............ 815,925
42,200 Dollar General Corp. .......... 822,900
16,400 Home Depot, Inc. (The)......... 818,975
28,400 Target Corp. .................. 1,647,200
91,100 Wal-Mart Stores, Inc. ......... 5,249,638
------------
9,354,638
------------
SOFTWARE & SERVICES -- 10.7%
*17,100 3Com Corp. .................... 985,388
*46,800 America Online, Inc. .......... 2,468,700
*18,900 BMC Software, Inc. ............ 689,555
*53,500 Cabletron Systems, Inc. ....... 1,350,875
15,800 Computer Associates
International, Inc. .......... 808,762
36,100 First Data Corp. .............. 1,791,463
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
SOFTWARE & SERVICES -- (CONTINUED)
84,300 IMS Health, Inc. .............. $ 1,517,400
*115,900 Microsoft Corp. ............... 9,272,000
*38,100 Oracle Corp. .................. 3,202,780
*26,000 Sun Microsystems, Inc. ........ 2,364,375
*7,995 VeriSign, Inc. ................ 1,411,118
------------
25,862,416
------------
TRANSPORTATION -- 1.6%
*27,900 AMR Corp. ..................... 737,606
58,278 Delphi Automotive Systems
Corp. ........................ 848,673
39,300 Ford Motor Co. ................ 1,689,900
21,900 USFreightways Corp. ........... 537,919
*4,858 Visteon Corp. ................. 58,899
------------
3,872,997
------------
UTILITIES -- 2.6%
*19,400 Calpine Corp. ................. 1,275,550
30,800 El Paso Energy Corp. .......... 1,568,875
34,000 Pinnacle West Capital Corp. ... 1,151,750
61,000 Unicom Corp. .................. 2,359,938
------------
6,356,113
------------
Total common stocks............ $236,199,012
============
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 6.0%
REPURCHASE AGREEMENT -- 6.0%
$14,486,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$14,493,965 (Collateralized by
$125,835,832 U.S. Treasury
Notes 5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29).......... $ 14,486,000
------------
Total short-term securities.... $ 14,486,000
============
</TABLE>
39
<PAGE> 40
THE HARTFORD GROWTH AND INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment in securities, at value (total
cost $241,336,913) - see accompanying
portfolio................................. $250,685,012
Receivable for securities sold.............. 9,689,045
Receivable for fund shares sold............. 4,001,184
Receivable for dividends and interest....... 230,705
Securities lending collateral............... 5,260,200
Cash and other assets....................... 619,193
------------
Total assets................................ 270,485,339
------------
LIABILITIES
Payable for securities purchased............ 23,080,222
Payable for fund shares sold................ 225,418
Securities lending collateral payable to
brokers................................... 5,260,200
Other liabilities........................... 107,876
------------
Total liabilities........................... 28,673,716
------------
Net assets.................................. $241,811,623
============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 17,657,116
shares outstanding........................ $ 17,657
Paid-in surplus............................. 224,927,459
Accumulated net investment loss............. (365,158)
Accumulated undistributed net realized gain
on investments............................ 7,888,727
Unrealized appreciation of investments...... 9,348,099
Unrealized depreciation of futures contracts
++........................................ (5,161)
------------
Net assets.................................. $241,811,623
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($152,991,049 / 11,115,171 shares outstanding)
(125,000,000 shares authorized)................ $13.76
======
Maximum offering price per share
($13.76 / 94.5%)............................... $14.56
======
Class B
Net asset value per share and maximum offering
price per share ($34,677,957 / 2,554,553 shares
outstanding) (75,000,000 shares authorized).... $13.57
======
Class C
Net asset value per share
($53,652,604 / 3,952,147 shares outstanding)
(50,000,000 shares authorized)................. $13.58
======
Maximum offering price per share ( $13.58 / 99.0%
).............................................. $13.72
======
Class Y
Net asset value per share and maximum offering
price per share ($490,013 / 35,245 shares
outstanding) (50,000,000 shares authorized).... $13.90
======
</TABLE>
* Non-income producing during the period.
++ The Fund had 6 Standard & Poor's 500 September 2000 Futures contracts open as
of June 30, 2000. These contracts had a value of $2,202,150 as of June 30,
2000 and were collateralized by $112,500 of cash.
The accompanying notes are an integral part of this financial statement.
40
<PAGE> 41
THE HARTFORD DIVIDEND AND GROWTH FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 95.8%
AEROSPACE & DEFENSE -- 4.2%
56,600 Honeywell International,
Inc. ......................... $ 1,906,713
282,000 United Technologies Corp. ..... 16,602,750
------------
18,509,463
------------
CHEMICALS -- 3.8%
23,200 Akzo Nobel N.V. ADR............ 975,850
67,764 du Pont (E.I.) de Nemours &
Co............................ 2,964,675
15,400 Eastman Chemical Co. .......... 735,350
193,580 Pharmacia Corp. ............... 10,005,666
15,600 PPG Industries, Inc. .......... 691,275
32,900 Rohm & Haas Co. ............... 1,135,050
------------
16,507,866
------------
COMMUNICATIONS -- 10.0%
382,950 AT&T Corp. .................... 12,110,793
67,700 Broadwing, Inc. ............... 1,755,969
108,100 Lucent Technologies, Inc. ..... 6,404,925
109,350 SBC Communications, Inc. ...... 4,729,388
54,800 US West, Inc. ................. 4,699,100
279,834 Verizon Communications ........ 14,219,065
------------
43,919,240
------------
COMPUTERS & OFFICE
EQUIPMENT -- 1.1%
20,600 International Business Machines
Corp.......................... 2,256,988
32,000 Minnesota Mining &
Manufacturing Co.............. 2,640,000
------------
4,896,988
------------
CONSUMER DURABLES -- 2.6%
42,700 Corning, Inc. ................. 11,523,663
------------
CONSUMER NON-DURABLES -- 3.6%
60,200 Cardinal Health, Inc. ......... 4,454,800
48,000 Clorox Co. (The)............... 2,151,000
18,600 Eastman Kodak Co. ............. 1,106,700
62,400 Gillette Co. (The)............. 2,180,100
107,500 Procter & Gamble Co. (The)..... 6,154,375
------------
16,046,975
------------
DRUGS -- 6.9%
80,000 Abbott Laboratories............ 3,565,000
100,900 American Home Products
Corp. ........................ 5,927,875
130,200 AstraZeneca Group PLC ADR...... 6,054,300
57,300 Bristol-Myers Squibb Co. ...... 3,337,725
56,100 Eli Lilly & Co. ............... 5,602,988
78,800 Merck & Co., Inc. ............. 6,038,050
------------
30,525,938
------------
ELECTRICAL EQUIPMENT -- 0.2%
21,700 White Electronic Designs
Corp. ........................ 957,513
------------
ELECTRONICS -- 5.4%
41,100 Eaton Corp. ................... 2,753,700
319,200 General Electric Co. .......... 16,917,600
29,200 Intel Corp. ................... 3,903,675
------------
23,574,975
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
ENERGY & SERVICES -- 10.4%
67,700 Ashland, Inc. ................. $ 2,373,731
126,696 Conoco, Inc., Class B.......... 3,111,971
59,200 Enron Corp. ................... 3,818,400
201,260 Exxon Mobil Corp. ............. 15,798,910
567,700 Repsol YPF S.A. ADR............ 11,247,556
399,600 Suncor Energy, Inc. ........... 9,315,675
------------
45,666,243
------------
FINANCIAL SERVICES -- 17.2%
129,800 Associates First Capital Corp.,
Class A....................... 2,896,162
30,400 CIGNA Corp. ................... 2,842,400
213,625 Citigroup, Inc. ............... 12,870,905
86,400 Fannie Mae..................... 4,509,000
86,900 Marsh & McLennan Cos., Inc. ... 9,075,619
55,300 MBIA, Inc. .................... 2,664,769
66,000 Merrill Lynch & Co., Inc. ..... 7,590,000
26,600 Morgan Stanley Dean Witter &
Co. .......................... 2,214,450
21,600 National Commerce
Bancorporation................ 346,950
206,600 Pacific Century Financial
Corp. ........................ 3,021,525
200,300 People's Bank.................. 3,680,511
360,100 U.S. Bancorp................... 6,931,925
76,800 UnionBanCal Corp. ............. 1,425,600
143,100 Wachovia Corp. ................ 7,763,175
176,300 Washington Mutual, Inc. ....... 5,090,663
52,900 XL Capital Ltd., Class A....... 2,863,213
------------
75,786,867
------------
FOOD, BEVERAGE & TOBACCO -- 7.2%
36,600 Coca-Cola Co. (The)............ 2,102,212
263,000 McCormick & Co., Inc........... 8,547,500
136,200 PepsiCo, Inc................... 6,052,388
145,200 Philip Morris Co., Inc......... 3,856,875
70,700 Reynolds (R.J) Tobacco
Holdings, Inc................. 1,975,180
471,600 Sara Lee Corp.................. 9,107,775
------------
31,641,930
------------
FOREST & PAPER PRODUCTS -- 2.6%
119,600 Abitibi-Consolidated, Inc...... 1,121,250
104,200 Kimberly-Clark Corp............ 5,978,475
49,600 Temple-Inland, Inc............. 2,083,200
53,000 Weyerhaeuser Co................ 2,279,000
------------
11,461,925
------------
HOTELS & GAMING -- 0.3%
35,600 Starwood Hotels & Resorts
Worldwide, Inc................ 1,159,225
------------
MACHINERY -- 0.4%
51,500 Caterpillar, Inc............... 1,744,563
16,100 CNH Global N.V................. 148,925
------------
1,893,488
------------
MEDIA & ENTERTAINMENT -- 1.8%
91,400 Gannett Co., Inc............... 5,466,863
42,800 Knight-Ridder, Inc............. 2,276,425
------------
7,743,288
------------
</TABLE>
41
<PAGE> 42
THE HARTFORD DIVIDEND AND GROWTH FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MEDICAL INSTRUMENTS &
SUPPLIES -- 1.8%
112,300 Baxter International, Inc...... $ 7,896,094
------------
METALS, MINERALS & MINING -- 0.8%
126,000 Alcoa, Inc..................... 3,654,000
------------
REAL ESTATE -- 2.5%
108,200 Archstone Communities Trust
(REIT)........................ 2,278,962
91,400 Equity Office Properties Trust
(REIT)........................ 2,519,213
56,400 Kimco Realty Corp. (REIT)...... 2,312,400
97,600 Liberty Property Trust
(REIT)........................ 2,531,500
34,100 Spieker Properties, Inc.
(REIT)........................ 1,568,600
------------
11,210,675
------------
RETAIL -- 2.8%
131,400 Family Dollar Stores, Inc. .... 2,570,512
407,250 Intimate Brands, Inc., Class
A............................. 8,043,188
67,450 May Department Stores Co. ..... 1,618,800
------------
12,232,500
------------
SOFTWARE & SERVICES -- 1.7%
84,700 Electronic Data Systems
Corp. ........................ 3,493,875
81,300 First Data Corp. .............. 4,034,513
*901 Microsoft Corp. ............... 72,080
------------
7,600,468
------------
TRANSPORTATION -- 1.9%
85,500 Ford Motor Co. ................ 3,676,500
91,900 Genuine Parts Co. ............. 1,838,000
26,100 TRW, Inc. ..................... 1,132,087
72,500 USFreightways Corp. ........... 1,780,780
*11,195 Visteon Corp. ................. 135,737
------------
8,563,104
------------
UTILITIES -- 6.6%
39,200 Dominion Resources, Inc. ...... 1,680,700
105,100 DQE, Inc. ..................... 4,151,450
36,500 Duke Energy Corp. ............. 2,057,687
32,200 Edison International........... 660,100
104,200 El Paso Energy Corp. .......... 5,307,688
93,000 Endesa S.A. ADR................ 1,813,500
59,500 Montana Power Co. (The)........ 2,101,094
71,300 PECO Energy Co. ............... 2,874,281
112,000 Pinnacle West Capital Corp. ... 3,794,000
97,300 Unicom Corp. .................. 3,764,294
32,200 UtiliCorp United, Inc. ........ 639,975
------------
28,844,769
------------
Total common stocks............ $421,817,197
============
CONVERTIBLE PREFERRED STOCKS -- 1.1%
COMMUNICATIONS -- 0.5%
@1,200,000 American Tower Corp.
6.25% due 10/15/09............. $ 2,209,500
------------
MEDIA & ENTERTAINMENT -- 0.6%
21,800 Tribune Co.
2.00% due 05/15/29............. 2,512,450
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<C> <S> <C>
UTILITIES -- 0.1%
7,400 Texas Utilities Co.
9.25% due 08/16/02............. $ 287,675
------------
Total convertible preferred
stocks........................ $ 5,009,625
============
EQUITY LINKED NOTES -- 0.6%
FINANCIAL SERVICES -- 0.6%
20,000 Salomon Smith Barney Holdings,
Inc. (ELKS) 3.25% due
10/06/00...................... $ 2,634,200
------------
Total equity linked notes...... $ 2,634,200
============
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 4.0%
REPURCHASE AGREEMENT -- 4.0%
$17,387,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$17,396,560 (Collateralized
by $125,835,832 U.S. Treasury
Notes 5.50% - 7.875% due
08/31/01 - 11/15/04,
$1,943,730,718 U.S. Treasury
Bonds 5.25% - 10.625% due
08/15/15 - 02/15/29).......... $ 17,387,000
------------
Total short-term securities.... $ 17,387,000
============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $409,973,407)............... 95.8% $421,817,197
Total convertible preferred stocks
(cost $4,895,950)................. 1.1 5,009,625
Total equity linked securities (cost
$1,909,100)....................... 0.6 2,634,200
Total short-term securities (cost
$17,387,000)...................... 4.0 17,387,000
----- ------------
Total investment in securities
(total cost $434,165,457)......... 101.5 446,848,022
Cash, receivables and other
assets............................ 1.3 5,537,685
Securities lending collateral....... 13,308,400
Payable for securities purchased.... (2.6) (11,398,109)
Payable for fund shares redeemed.... (0.1) (589,180)
Dividend payable.................... (0.0) (50)
Securities lending collateral
payable to brokers................ (13,308,400)
Other liabilities................... (0.1) (226,181)
----- ------------
Net assets.......................... 100.0% $440,172,187
===== ============
</TABLE>
The accompanying notes are an integral part of this financial statement.
42
<PAGE> 43
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 26,924,797
shares outstanding........................ $ 26,925
Paid-in surplus............................. 414,406,132
Accumulated undistributed net investment
income.................................... 138,720
Accumulated undistributed net realized gain
on investments............................ 12,839,256
Unrealized appreciation of investments...... 12,761,214
Unrealized depreciation of other assets and
liabilities in foreign currencies......... (60)
------------
Net assets.................................. $440,172,187
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($253,582,582 /
15,457,688 shares outstanding) (125,000,000
shares authorized)............................. $16.40
======
Maximum offering price per share ($16.40 /
94.5%)......................................... $17.36
======
Class B
Net asset value per share and maximum offering
price per share ($111,480,994 / 6,861,039
shares outstanding) (75,000,000 shares
authorized).................................... $16.25
======
Class C
Net asset value per share ($53,924,284 /
3,324,594 shares outstanding) (50,000,000
shares authorized)............................. $16.22
======
Maximum offering price per share ($16.22 /
99.0%)......................................... $16.38
======
Class Y
Net asset value per share and maximum offering
price per share ( $21,184,327 / 1,281,476
shares outstanding) (50,000,000 shares
authorized).................................... $16.53
======
</TABLE>
* Non-income producing during the period.
@ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally by qualified institutional buyers. As of June 30, 2000, the market
value of these securities amounted to $2,209,500 or 0.5% of net assets.
43
<PAGE> 44
THE HARTFORD ADVISERS FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- 60.6%
AEROSPACE & DEFENSE -- 1.2%
*110,600 General Motors, Class H...... $ 9,705,150
209,600 United Technologies Corp. ... 12,340,200
--------------
22,045,350
--------------
BUSINESS SERVICES -- 0.1%
123,750 ServiceMaster Co. (The)...... 1,407,655
--------------
CHEMICALS -- 1.9%
300,000 Dow Chemical Co. (The)....... 9,056,250
330,100 Pharmacia Corp. ............. 17,062,044
227,900 Praxair, Inc. ............... 8,532,006
--------------
34,650,300
--------------
COMMUNICATIONS -- 8.0%
*160,000 American Tower Corp.,
Class A..................... 6,670,000
362,050 AT&T Corp. .................. 11,449,831
*308,300 Global Crossing Ltd. ........ 8,112,144
344,500 Lucent Technologies, Inc. ... 20,411,625
98,900 Motorola, Inc. .............. 2,874,281
400,000 Nokia Corp. ADR.............. 19,975,000
285,000 Nortel Networks Holdings
Corp. ...................... 19,451,250
452,900 SBC Communications, Inc. .... 19,587,925
*100,000 Tellabs, Inc. ............... 6,843,750
180,000 Verizon Communications....... 9,146,250
*549,267 Worldcom, Inc. .............. 25,197,624
--------------
149,719,680
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 6.2%
*617,000 Cisco Systems, Inc. ......... 39,218,062
*250,000 Dell Computer Corp. ......... 12,328,125
*179,600 EMC Corp. ................... 13,817,975
100,000 Hewlett-Packard Co. ......... 12,487,500
189,400 International Business
Machines Corp. ............. 20,751,137
*427,700 Solectron Corp. ............. 17,909,938
--------------
116,512,737
--------------
CONSUMER NON-DURABLES -- 3.7%
230,000 Cardinal Health, Inc. ....... 17,020,000
330,000 Gillette Co. (The)........... 11,529,375
229,200 Procter & Gamble Co. (The)... 13,121,700
*408,900 Safeway, Inc. ............... 18,451,613
200,000 Tyco International Ltd. ..... 9,475,000
--------------
69,597,688
--------------
DRUGS -- 4.5%
320,000 Abbott Laboratories.......... 14,260,000
366,200 American Home Products
Corp. ...................... 21,514,250
160,000 Bristol-Myers Squibb Co. .... 9,320,000
*50,000 Immunex Corp. ............... 2,471,875
220,800 Merck & Co., Inc. ........... 16,918,800
418,200 Pfizer, Inc. ................ 20,073,600
--------------
84,558,525
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
ELECTRICAL EQUIPMENT -- 0.7%
*188,800 Teradyne, Inc. .............. $ 13,876,800
--------------
ELECTRONICS -- 5.5%
*13,600 Broadcom Corp., Class A...... 2,977,550
650,700 General Electric Co. ........ 34,487,100
277,500 Intel Corp. ................. 37,098,281
*151,000 Micron Technology, Inc. ..... 13,297,438
182,000 Texas Instruments, Inc. ..... 12,501,125
*40,000 Vitesse Semiconductor
Corp. ...................... 2,942,500
--------------
103,303,994
--------------
ENERGY & SERVICES -- 3.5%
340,500 Exxon Mobil Corp. ........... 26,729,250
200,000 Royal Dutch Petroleum Co. ... 12,312,500
148,300 Schlumberger Ltd. ........... 11,066,888
274,700 Texaco, Inc. ................ 14,627,775
--------------
64,736,413
--------------
FINANCIAL SERVICES -- 7.5%
132,187 American International Group,
Inc. ....................... 15,531,973
702,800 Associates First Capital
Corp., Class A.............. 15,681,225
342,875 Citigroup, Inc. ............. 20,658,218
320,000 Fleet Boston Financial
Corp. ...................... 10,880,000
320,000 Franklin Resources, Inc. .... 9,720,000
130,000 Goldman Sachs Group, Inc.
(The)....................... 12,333,750
229,300 Marsh & McLennan Cos.,
Inc. ....................... 23,947,519
120,700 Merrill Lynch & Co., Inc. ... 13,880,500
170,000 State Street Corp. .......... 18,030,625
--------------
140,663,810
--------------
FOOD, BEVERAGE & TOBACCO -- 1.7%
200,000 Coca-Cola Co. (The).......... 11,487,500
438,900 PepsiCo, Inc. ............... 19,503,619
--------------
30,991,119
--------------
FOREST & PAPER
PRODUCTS -- 1.2%
200,000 Kimberly-Clark Corp. ........ 11,475,000
260,000 Weyerhaeuser Co. ............ 11,180,000
--------------
22,655,000
--------------
MACHINERY -- 0.5%
250,000 Caterpillar, Inc. ........... 8,468,750
--------------
MEDIA & ENTERTAINMENT -- 2.6%
*520,000 AT&T -- Liberty Media Group,
Class A..................... 12,610,000
340,000 Gannett Co., Inc. ........... 20,336,250
*238,700 Viacom, Inc., Class B........ 16,276,356
--------------
49,222,606
--------------
MEDICAL INSTRUMENTS &
SUPPLIES -- 1.3%
190,000 Guidant Corp. ............... 9,405,000
140,000 Johnson & Johnson Co. ....... 14,262,500
--------------
23,667,500
--------------
</TABLE>
The accompanying notes are an integral part of this financial statement.
44
<PAGE> 45
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
METALS, MINERALS & MINING -- 1.1%
380,400 Alcoa, Inc. ................. $ 11,031,600
180,000 Illinois Tool Works, Inc. ... 10,260,000
--------------
21,291,600
--------------
RETAIL -- 3.6%
303,300 CVS Corp. ................... 12,132,000
291,000 Home Depot, Inc. (The)....... 14,531,812
635,000 McDonald's Corp. ............ 20,915,313
342,200 Wal-Mart Stores, Inc. ....... 19,719,275
--------------
67,298,400
--------------
SOFTWARE & SERVICES -- 5.8%
*59,200 3Com Corp. .................. 3,411,400
*280,000 America Online, Inc. ........ 14,770,000
250,000 Automatic Data Processing,
Inc. ....................... 13,390,625
*192,000 China Unicom Ltd. ADR........ 4,080,000
*130,000 Computer Sciences Corp. ..... 9,709,375
161,900 Electronic Data Systems
Corp. ...................... 6,678,375
*569,000 Microsoft Corp. ............. 45,520,000
*67,250 VeriSign, Inc. .............. 11,869,625
--------------
109,429,400
--------------
Total common stocks.......... $1,134,097,327
==============
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
CORPORATE NOTES -- 11.1%
CHEMICALS -- 0.3%
$ 500,000 ICI Wilmington, Inc.
6.95% due 09/15/04.......... $ 482,133
1,000,000 Praxair Inc.
6.15% due 04/15/03.......... 960,465
4,000,000 Rohm & Haas Co.
7.40% due 07/15/09.......... 3,977,724
--------------
5,420,322
--------------
COMMUNICATIONS -- 0.1%
3,000,000 AT&T Corp.
6.50% due 03/15/29.......... 2,512,527
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 0.4%
5,000,000 Hewlett-Packard Co.
7.15% due 06/15/05.......... 5,018,210
2,000,000 Pitney Bowes, Inc.
5.50% due 04/15/04.......... 1,908,418
--------------
6,926,628
--------------
CONSUMER NON-DURABLES -- 0.5%
2,500,000 Alberto Culver Co.
8.25% due 11/01/05.......... 2,520,545
2,000,000 Colgate-Palmolive Co.
5.58% due 11/06/08.......... 1,804,698
4,000,000 Tosco Corp.
9.625% due 03/15/02......... 4,138,116
--------------
8,463,359
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- --------------
<C> <S> <C>
DRUGS -- 0.1%
$ 2,000,000 American Home Products Corp.
7.25% due 03/01/23.......... $ 1,907,080
--------------
ELECTRICAL EQUIPMENT -- 0.1%
2,000,000 Danaher Corp.
6.00% due 10/15/08.......... 1,799,924
--------------
ELECTRONICS -- 0.4%
5,000,000 Eaton Corp.
6.95% due 11/15/04.......... 4,857,305
2,000,000 Motorola, Inc.
7.60% due 01/01/07.......... 2,045,604
--------------
6,902,909
--------------
ENERGY & SERVICES -- 0.1%
1,150,000 Northern Border Pipeline
7.75% due 09/01/09.......... 1,104,176
--------------
FINANCIAL SERVICES -- 5.5%
3,000,000 ACE INA Holdings
8.30% due 08/15/06.......... 3,021,612
2,000,000 Allmerica Financial Corp.
7.625% due 10/15/25......... 1,741,232
1,900,000 Allstate Corp. (The)
6.75% due 06/15/03.......... 1,859,006
2,000,000 Allstate Corp. (The)
6.75% due 05/15/18.......... 1,724,084
1,420,000 Amerus Life Holdings
6.95% due 06/15/05.......... 1,299,331
3,000,000 Apache Finance Property Ltd.
7.00% due 03/15/09.......... 2,850,351
2,000,000 Associates Corp. of North
America
6.00% due 07/15/05.......... 1,857,574
3,000,000 Bank One Corp.
6.875% due 08/01/06......... 2,874,987
500,000 BankAmerica Corp.
7.875% due 12/01/02......... 504,671
2,000,000 Bayerische Landesbank
Girozentrale (NY)
5.65% due 02/01/09.......... 1,764,230
1,000,000 CIGNA Corp.
6.375% due 01/15/06......... 920,280
1,260,000 CIGNA Corp.
7.40% due 05/15/07.......... 1,198,205
@2,370,000 Developement Bank of
Singapore
7.875% due 08/10/09......... 2,351,284
2,000,000 Equitable Cos., Inc.
7.00% due 04/01/28.......... 1,754,126
20,000,000 Fannie Mae
7.25% due 01/15/10.......... 20,163,280
10,000,000 Financing Corp.
9.80% due 04/06/18.......... 12,576,030
500,000 Finova Capital Corp.
6.39% due 10/08/02.......... 439,494
1,000,000 First Union National Bank
5.80% due 12/01/08.......... 855,913
1,000,000 Fleet Financial Group, Inc.
6.875% due 01/15/28......... 852,501
</TABLE>
45
<PAGE> 46
THE HARTFORD ADVISERS FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- --------------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL
SERVICES -- (CONTINUED)
$ 500,000 Heller Financial, Inc.
6.382% due 11/10/00......... $ 498,855
@2,000,000 Jackson National Life
Insurance Co.
8.15% due 03/15/27.......... 1,848,294
@2,000,000 John Hancock
7.375% due 02/15/24......... 1,819,848
2,755,000 Key Bank N.A.
5.80% due 04/01/04.......... 2,607,594
1,000,000 Liberty Financial Co.
6.75% due 11/15/08.......... 913,088
@5,000,000 Liberty Mutual Insurance
8.20% due 05/04/07.......... 4,915,715
1,000,000 MBIA, Inc.
7.00% due 12/15/25.......... 870,095
1,000,000 Nationsbank Corp.
7.80% due 09/15/16.......... 969,379
@2,000,000 New England Mutual Life
Insurance
7.875% due 02/15/24......... 1,963,832
@2,000,000 Prudential Funding Corp.
6.75% due 09/15/23.......... 1,699,034
2,055,000 Sprint Capital Corp.
6.125% due 11/15/08......... 1,831,056
2,000,000 Torchmark Corp.
8.25% due 08/15/09.......... 2,015,338
2,000,000 Toyota Motor Credit Corp.
5.50% due 12/15/08.......... 1,760,075
2,000,000 Transamerica Financial Corp.
6.125% due 11/01/01......... 1,967,730
4,000,000 TXU Eastern Funding Co.
6.45% due 05/15/05.......... 3,729,420
@5,000,000 USAA Capital Corp.
6.90% due 11/01/02.......... 4,931,320
3,000,000 Wachovia Corp.
5.625% due 12/15/08......... 2,587,650
5,000,000 Wells Fargo & Co.
6.50% due 09/03/02.......... 4,928,450
--------------
102,464,964
--------------
FOOD, BEVERAGE & TOBACCO -- 0.4%
2,000,000 Archer-Daniels-Midland Co.
8.125% due 06/01/12......... 2,060,456
2,000,000 Hershey Foods Corp.
7.20% due 08/15/27.......... 1,885,274
3,000,000 Whitman Corp.
6.375% due 05/01/09......... 2,760,720
--------------
6,706,450
--------------
HEALTH SERVICES -- 0.1%
1,000,000 United Healthcare Corp.
6.60% due 12/01/03.......... 954,220
--------------
MACHINERY -- 0.1%
2,000,000 Parker Hannifin Corp.
5.65% due 09/15/03.......... 1,904,894
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- --------------
<C> <S> <C>
MEDIA & ENTERTAINMENT -- 0.3%
$ 2,000,000 Rockwell International Corp.
6.70% due 01/15/28.......... $ 1,754,678
500,000 Scripps (E.W.) Co. (The)
6.375% due 10/15/02......... 493,661
3,000,000 Washington Post Co. (The)
5.50% due 02/15/09.......... 2,693,220
--------------
4,941,559
--------------
MEDICAL INSTRUMENTS &
SUPPLIES -- 0.1%
2,000,000 Becton, Dickinson & Co.
6.70% due 08/01/28.......... 1,751,454
--------------
METALS, MINERALS & MINING -- 0.3%
2,000,000 Alcan Aluminum Ltd.
7.25% due 11/01/28.......... 1,893,362
4,000,000 Vulcan Materials Co.
5.75% due 04/01/04.......... 3,834,776
--------------
5,728,138
--------------
RETAIL -- 1.0%
4,000,000 Albertson's, Inc.
6.55% due 08/01/04.......... 3,866,204
1,345,000 Dayton Hudson Corp.
5.875% due 11/01/08......... 1,192,712
2,000,000 Gap, Inc. (The)
6.90% due 09/15/07.......... 1,932,906
5,000,000 Home Depot, Inc. (The)
6.50% due 09/15/04.......... 4,953,215
6,000,000 Wal-Mart Stores, Inc.
6.875% due 08/10/09......... 5,867,160
--------------
17,812,197
--------------
SOFTWARE & SERVICES -- 0.0%
1,000,000 Computer Associates
International, Inc.
6.50% due 04/15/08.......... 901,638
--------------
TRANSPORTATION -- 0.8%
6,000,000 Burlington Northern Santa Fe
Corp.
7.875% due 04/15/07......... 6,070,410
5,000,000 DaimlerChrysler North America
Holding Corp.
7.125% due 04/10/03......... 4,976,310
3,000,000 Ford Motor Co.
6.625% due 10/01/28......... 2,532,426
2,000,000 General Motors Corp.
6.75% due 05/01/28.......... 1,736,294
--------------
15,315,440
--------------
UTILITIES -- 0.8%
4,000,000 Alabama Power Co.
7.125% due 08/15/04......... 3,964,476
4,000,000 Duke Energy Corp.
5.375% due 01/01/09......... 3,465,456
</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)
UTILITIES -- (CONTINUED)
$ 3,000,000 Monsanto Co.
6.85% due 12/01/28.......... $ 2,654,709
4,000,000 National Fuel & Gas
6.00% due 03/01/09.......... 3,535,824
1,000,000 New York Telephone
6.00% due 04/15/08.......... 892,728
500,000 Williams Cos., Inc. (The)
6.50% due 11/15/02.......... 490,919
--------------
15,004,112
--------------
Total corporate notes........ $ 208,521,991
==============
U.S. TREASURIES & FEDERAL AGENCIES -- 22.1%
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 3.2%
28,307,841 6.00% due
06/15/28 - 01/15/29......... $ 26,071,070
34,450,170 6.50% due
04/15/26 - 06/15/29......... 32,695,688
1,018,784 7.00% due
07/15/23 - 04/15/26......... 993,157
--------------
59,759,915
--------------
U.S. TREASURY BONDS -- 15.0%
9,500,000 4.625% due 12/31/00.......... 9,413,911
21,000,000 5.25% due 05/31/01........... 20,770,323
30,000,000 5.75% due 04/30/03........... 29,540,640
14,750,000 5.875 due 11/15/05........... 14,496,492
100,000,000 6.25% due 08/15/23........... 100,625,000
24,550,000 6.375% due 08/15/02.......... 24,511,653
21,000,000 6.50% due 08/15/05........... 21,223,125
58,250,000 7.50% due 11/15/01 -
02/15/05.................... 59,211,979
--------------
279,793,123
--------------
U.S. TREASURY NOTES -- 3.9%
16,300,000 4.875% due 03/31/01.......... 16,101,352
33,000,000 5.75% due 06/30/01........... 32,762,829
25,000,000 5.875% due 11/30/01.......... 24,781,250
--------------
73,645,431
--------------
Total U.S. treasuries &
federal agencies............ $ 413,198,469
==============
SHORT-TERM SECURITIES -- 5.2%
REPURCHASE AGREEMENT -- 5.2%
97,119,000 Interest in $2,066,447,000
joint repurchase agreement
dated 06/30/00 with State
Street Bank, 6.598% due
07/03/00; maturity amount
$97,172,400 (Collateralized
by $125,835,832 U.S.
Treasury Notes 5.50% -
7.875% due 08/31/01 -
11/15/04, $1,943,730,718
U.S. Treasury Bonds
5.25% - 10.625% due
08/15/15 - 02/15/29)........ $ 97,119,000
--------------
Total short-term
securities.................. $ 97,119,000
==============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS
Total common stocks (cost
$1,002,108,398).................. 60.6% $1,134,097,327
Total corporate notes (cost
$220,478,597).................... 11.4 208,521,991
Total U.S. treasuries & federal
agencies (cost $417,762,935)..... 22.1 413,198,469
Total short-term securities (cost
$97,119,000)..................... 5.2 97,119,000
--------------
Total investment in securities
(total cost $1,737,468,930)...... 99.3 1,852,936,787
Cash, receivables and other
assets........................... 1.0 20,647,312
Securities lending collateral...... 61,621,750
Payable for fund shares redeemed... (0.2) (2,318,147)
Securities lending collateral
payable to brokers............... (61,621,750)
Other liabilities.................. (0.1) (570,156)
----- --------------
Net assets......................... 100.0% $1,870,695,796
===== ==============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
400,000,000 shares authorized;
109,994,538 shares outstanding.......... $ 109,995
Paid-in surplus........................... 1,701,267,040
Accumulated undistributed net investment
income.................................. 525,140
Accumulated undistributed net realized
gain on investments..................... 53,325,764
Unrealized appreciation of investments.... 115,467,857
--------------
Net assets................................ $1,870,695,796
==============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($806,699,930 / 47,296,171 shares outstanding)
(175,000,000 shares authorized)................ $17.06
======
Maximum offering price per share
($17.06 / 94.5%)............................... $18.05
======
Class B
Net asset value per share and maximum offering
price per share ($605,615,819 / 35,845,288
shares outstanding) (75,000,000 shares
authorized).................................... $16.90
======
Class C
Net asset value per share
($392,492,622 / 23,024,807 shares outstanding)
(50,000,000 shares authorized)................. $17.05
======
Maximum offering price per share
($17.05 / 99.0%)............................... $17.22
======
Class Y
Net asset value per share and maximum offering
price per share ($65,887,425 / 3,828,272 shares
outstanding) (100,000,000 shares authorized)... $17.21
======
</TABLE>
* Non-income producing during the period.
@Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally by qualified institutional buyers. As of June 30, 2000, the market
value of these securities amounted to $19,529,327 or 1.0% of net assets.
47
<PAGE> 48
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATION -- 0.2%
$ 100,000 DLJ Commercial Mortgage Corp.,
Series 1998-CF1, Class B2
7.33% due 01/15/10............ $ 88,721
===========
CORPORATE NOTES -- 86.0%
APPAREL & TEXTILE -- 0.3%
130,000 Levi Straus & Co.
7.00% due 11/01/06............ 98,800
-----------
CHEMICALS -- 4.6%
225,000 ARCO Chemical Co.
9.80% due 02/01/20............ 207,955
350,000 Equistar Chemicals L.P.
8.50% due 02/15/04............ 344,820
100,000 General Chemical Industrial
Products, Inc.
10.625% due 05/01/09.......... 87,000
170,000 Georgia Gulf Corp.
7.625% due 11/15/05........... 162,779
20,000 Georgia Gulf Corp.
10.375% due 11/01/07.......... 20,800
@300,000 Huntsman Corp.
9.50% due 07/01/07............ 273,000
@200,000 Huntsman Corp.
13.00% due 06/01/10........... 206,000
390,000 Huntsman ICI Chemicals LLC
10.125% due 07/01/09.......... 392,926
50,000 Lyondell Chemical Co.
9.625% due 05/01/07........... 49,250
-----------
1,744,530
-----------
COMMUNICATIONS -- 13.5%
200,000 Centennial Communications
10.75% due 12/15/08........... 194,250
7,000 Global Crossing Holdings Ltd.
9.50% due 11/15/09............ 6,754
575,000 Global Crossing Holdings Ltd.
9.625% due 05/15/08........... 557,750
@625,000 Level 3 Communications
11.25% 03/15/10............... 560,633
250,000 Loral Space & Communications
Ltd.
9.50% due 01/15/06............ 181,250
100,000 McLeodUSA, Inc.
8.125% due 02/15/09........... 90,250
100,000 McLeodUSA, Inc.
9.25% due 07/15/07............ 96,500
300,000 McLeodUSA, Inc.
9.50% due 11/01/08............ 293,250
400,000 Metromedia Fiber Network, Inc.
10.00% due 11/15/08........... 394,000
500,000 NEXTEL Communications, Inc.
9.375% due 11/15/09........... 477,500
300,000 NEXTLINK Communications, Inc.
10.75% due 11/15/08........... 295,500
150,000 NEXTLINK Communications, Inc.
12.50% due 04/15/06........... 156,750
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
COMMUNICATIONS -- (CONTINUED)
$ 650,000 Primus Telecommunications
Group, Inc.
11.25% due 01/15/09........... $ 507,000
@250,000 Rhythms Netconnections, Inc.
14.00% due 02/15/10........... 181,250
100,000 Teligent, Inc.
11.50% due 12/01/07........... 77,500
410,000 Time Warner Telecom, Inc.
9.75% due 07/15/08............ 396,675
585,000 Williams Communications Group,
Inc.
10.875% due 10/01/09.......... 571,838
@100,000 Winstar Communications, Inc.
12.75% due 04/15/10........... 93,250
-----------
5,131,900
-----------
CONSTRUCTION -- 1.8%
50,000 Del Webb Corp.
9.375% due 05/01/09........... 41,500
50,000 Del Webb Corp.
10.25% due 02/15/10........... 43,375
200,000 Kaufman & Broad Home Corp.
9.625% due 11/15/06........... 190,500
100,000 MDC Holdings, Inc.
8.375% due 02/01/08........... 88,500
100,000 Newport News Shipbuilding, Inc.
8.625% due 12/01/06........... 98,500
125,000 Toll Corp.
7.75% due 09/15/07............ 111,875
100,000 Toll Corp.
8.75% due 11/15/06............ 95,750
-----------
670,000
-----------
CONSUMER DURABLES -- 1.9%
100,000 Federal-Mogul Corp.
7.375% due 01/15/06........... 72,726
400,000 Federal-Mogul Corp.
7.50% due 01/15/09............ 274,341
75,000 Hayes Lemmerz International,
Inc.
8.25% due 12/15/08............ 63,375
200,000 HMH Properties, Inc.
8.45% due 12/01/08............ 185,250
162,000 Owens-Illinois, Inc.
7.80% due 05/15/18............ 131,692
-----------
727,384
-----------
CONSUMER NON-DURABLES -- 2.6%
100,000 American Standard Co., Inc.
7.375% due 04/15/05........... 93,625
400,000 American Standard Co., Inc.
7.375% due 02/01/08........... 362,000
500,000 Polaroid Corp.
11.50% due 02/15/06........... 520,000
-----------
975,625
-----------
</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)
CONSUMER SERVICES -- 1.8%
$ 300,000 Service Corp. International
7.875% due 02/01/13........... $ 150,000
360,000 Service Corp. International
6.50% due 03/15/08............ 183,600
125,000 Simmons Co.
10.25% due 03/15/09........... 110,938
250,000 Six Flags Entertainment Corp.
8.875% due 04/01/06........... 238,750
-----------
683,288
-----------
DRUGS -- 1.3%
540,000 Watson Pharmaceuticals, Inc.
7.125% due 05/15/08........... 482,217
-----------
ELECTRONICS -- 0.9%
@450,000 Condor Systems, Inc.
11.875% due 05/01/09.......... 217,125
125,000 Lenfest Communications, Inc.
10.50% due 06/15/06........... 139,507
-----------
356,632
-----------
ENERGY & SERVICES -- 12.4%
150,000 Belco Oil & Gas Corp.
8.875% due 09/15/07........... 138,750
100,000 Clark Refining & Marketing,
Inc.
8.375% due 11/15/07........... 78,500
75,000 Clark Refining & Marketing,
Inc.
8.625% due 08/15/08........... 58,875
50,000 CODA Energy, Inc.
10.50% due 04/01/06........... 50,312
50,000 Cross Timbers Oil Co.
8.75% due 11/01/09............ 47,500
50,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05........... 49,500
100,000 Gulf Canada Resources Ltd.
9.625% due 07/01/05........... 101,750
100,000 Newpark Resources, Inc.
8.625% due 12/15/07........... 87,250
103,000 Nuevo Energy Co.
9.50% due 06/01/08............ 101,713
475,000 Pioneer Natural Resources Co.
6.50% due 01/15/08............ 409,195
@450,000 Plains Resources, Inc.
10.25% due 03/15/06........... 453,375
650,000 Pogo Producing Co.
10.375% due 02/15/09.......... 666,250
150,000 R&B Falcon Corp.
6.50% due 04/15/03............ 138,750
100,000 R&B Falcon Corp.
7.375% due 04/15/18........... 81,000
525,000 R&B Falcon Corp.
11.375% due 03/15/09.......... 569,625
425,000 Seagull Energy Corp.
7.50% due 09/15/27............ 352,659
200,000 Snyder Oil Corp.
8.75% due 06/15/07............ 201,000
475,000 Tesoro Petroleum Corp.
9.00% due 07/01/08............ 451,250
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
ENERGY &
SERVICES -- (CONTINUED)
$ 400,000 Tuboscope, Inc.
7.50% due 02/15/08............ $ 352,000
200,000 Valero Energy Corp.
8.75% due 06/15/30............ 207,138
125,000 Vintage Petroleum, Inc.
9.75% due 06/30/09............ 127,188
-----------
4,723,580
-----------
FINANCIAL SERVICES -- 1.7%
@400,000 Dresdner Bank Funding Trust
8.151% due 06/30/31........... 348,292
75,000 Interpool, Inc.
7.35% due 08/01/07............ 61,129
250,000 Sumitomo Bank International
Finance N.V.
8.50% due 06/15/09............ 252,751
-----------
662,172
-----------
FOOD, BEVERAGE & TOBACCO -- 1.0%
400,000 Canandaigua Brands, Inc.
8.50% due 03/01/09............ 364,000
-----------
FOREST & PAPER PRODUCTS -- 3.0%
350,000 Boise Cascade Corp.
7.35% due 02/01/16............ 296,777
175,000 Container Corp. of America
11.25% due 05/01/04........... 176,750
145,000 Domtar, Inc.
8.75% due 08/01/06............ 149,712
150,000 Stone Container Corp.
10.75% due 10/01/02........... 152,063
125,000 Stone Container Corp.
12.58% due 08/01/16........... 128,750
250,000 Tembec Industries, Inc.
8.625% due 06/30/09........... 240,000
-----------
1,144,052
-----------
HEALTH SERVICES -- 10.1%
300,000 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27............ 220,842
250,000 Columbia/HCA Healthcare Corp.
9.00% due 12/15/14............ 238,799
480,000 HEALTHSOUTH Corp.
6.875% due 06/15/05........... 411,356
340,000 HEALTHSOUTH Corp.
7.00% due 06/15/08............ 274,931
800,000 IASIS Healthcare Corp.
13.00% due 10/15/09........... 796,000
600,000 Manor Care, Inc.
7.50% due 06/15/06............ 488,513
200,000 Owens & Minor, Inc.
10.875% due 06/01/06.......... 205,000
315,000 Quorum Health Group, Inc.
8.75% due 11/01/05............ 299,250
200,000 Tenet Healthcare Corp.
7.625% due 06/01/08........... 183,250
300,000 Tenet Healthcare Corp.
8.00% due 01/15/05............ 288,000
</TABLE>
49
<PAGE> 50
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
HEALTH SERVICES -- (CONTINUED)
$ 100,000 Tenet Healthcare Corp.
8.625% due 12/01/03........... $ 98,942
350,000 Universal Health Services, Inc.
8.75% due 08/15/05............ 346,431
-----------
3,851,314
-----------
HOTELS & GAMING -- 2.6%
80,000 Harrah's Operating Co., Inc.
7.875% due 12/15/05........... 75,200
200,000 MGM Grand, Inc.
6.875% due 02/06/08........... 179,461
600,000 Park Place Entertainment
9.375% due 02/15/07........... 600,000
25,000 Starwood Hotels & Resorts
Worldwide, Inc.
6.75% due 11/15/05............ 22,613
150,000 Starwood Hotels & Resorts
Worldwide, Inc.
7.375% due 11/15/15........... 126,388
-----------
1,003,662
-----------
MACHINERY -- 0.2%
*955,000 Grove Holdings LLC
0.00% due 05/01/09............ 70,431
-----------
MEDIA & ENTERTAINMENT -- 12.3%
175,000 Adelphia Business Solutions,
Inc.
12.00% due 11/01/07........... 164,500
100,000 Adelphia Communications Corp.
7.75% due 01/15/09............ 84,000
200,000 Adelphia Communications Corp.
8.375% due 02/01/08........... 176,750
500,000 Charter Communications Holdings
LLC
8.625% due 04/01/09........... 439,375
150,000 Comcast Corp.
10.25% due 10/15/01........... 154,572
250,000 CSC Holdings, Inc.
8.125% due 07/15/09........... 243,293
250,000 CSC Holdings, Inc.
9.875% due 02/15/13........... 256,250
250,000 Echostar DBS Corp.
9.375% due 02/01/09........... 240,000
375,000 Fox Kids Worldwide, Inc.
9.25% due 11/01/07............ 337,500
150,000 Fox/Liberty Networks LLC
8.875% due 08/15/07........... 148,875
225,000 Hollinger International
Publishing, Inc.
9.25% due 02/01/06............ 221,906
300,000 Liberty Media Group
8.25% due 02/01/30............ 275,479
156,000 News America Holdings
8.25% due 10/17/96............ 139,027
100,000 PRIMEDIA, Inc.
7.625% due 04/01/08........... 89,000
250,000 PRIMEDIA, Inc.
10.25% due 06/01/04........... 250,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
MEDIA & ENTERTAINMENT -- (CONTINUED)
$ 195,000 Rogers Cablesystems, Inc.
10.00% due 12/01/07........... $ 199,388
242,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.......... 247,445
250,000 Telewest Communications PLC
11.25% due 11/01/08........... 250,000
*640,000 Telewest Communications PLC
0.00% 10/01/07................ 606,976
175,000 World Color Press, Inc.
7.75% due 02/15/09............ 162,018
-----------
4,686,354
-----------
MEDICAL INSTRUMENTS &
SUPPLIES -- 1.2%
87,000 Fisher Scientific
International, Inc.
9.00% due 02/01/08............ 79,605
415,000 Fisher Scientific
International, Inc.
9.00% due 02/01/08............ 379,725
-----------
459,330
-----------
METALS, MINERALS & MINING -- 4.0%
300,000 AK Steel Corp.
7.875% due 02/15/09........... 266,250
100,000 Bethlehem Steel Corp.
7.625% due 08/01/04........... 90,526
600,000 Inco Ltd.
9.60% due 06/15/22............ 588,203
400,000 LTV Corp.
11.75% due 11/15/09........... 336,000
100,000 Placer Dome, Inc.
7.125% due 06/15/07........... 91,518
170,000 WHX Corp.
10.50% due 04/15/05........... 132,600
-----------
1,505,097
-----------
REAL ESTATE -- 0.6%
150,000 Crescent Real Estate Equities
Ltd.
7.00% due 09/15/02............ 138,126
100,000 Trizec Finance Ltd.
10.875% due 10/15/05.......... 100,500
-----------
238,626
-----------
RESEARCH & TESTING FACILITIES -- 0.7%
275,000 Sequa Corp.
9.00% due 08/01/09............ 264,000
-----------
RETAIL -- 0.6%
275,000 Duane Reade, Inc.
9.25% due 02/15/08............ 243,375
-----------
TRANSPORTATION -- 1.5%
500,000 Teekay Shipping Corp.
8.32% due 02/01/08............ 460,000
100,000 United Air Lines, Inc.
9.125% due 01/15/12........... 95,540
-----------
555,540
-----------
</TABLE>
The accompanying notes are an integral part of this financial statement.
50
<PAGE> 51
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
UTILITIES -- 5.4%
$ 425,000 AES Corp. (The)
9.50% due 06/01/09............ $ 416,500
75,000 AES Corp. (The)
10.25% due 07/15/06........... 74,813
240,000 Allied Waste North American,
Inc.
10.00% due 08/01/09........... 200,400
285,000 Browning-Ferris Industries,
Inc.
7.40% due 09/15/35............ 198,516
225,000 CMS Energy Corp.
6.75% due 01/15/04............ 208,302
150,000 CMS Energy Corp.
7.50% due 01/15/09............ 134,181
350,000 Cogentrix Energy, Inc.
8.75% due 10/15/08............ 334,688
125,000 El Paso Electric Co.
9.40% due 05/01/11............ 131,243
175,000 Waste Management, Inc.
6.875% due 05/15/09........... 154,231
265,000 Waste Management, Inc.
7.375% due 05/15/29........... 214,366
-----------
2,067,240
-----------
Total corporate notes.......... $32,709,149
===========
FOREIGN/YANKEE BONDS & NOTES -- 5.9%
FOREIGN CORPORATIONS -- 4.2%
400,000 British Sky Broadcasting Group
PLC
8.20% due 07/15/09............ $ 375,186
415,000 Kappa Beheer BV
10.625% 07/15/09.............. 406,764
500,000 Petroleos Mexicanos
9.50% due 09/15/27............ 505,000
300,000 United Mexican States
9.875% due 02/01/10........... 310,500
-----------
1,597,450
-----------
FOREIGN GOVERNMENTS -- 1.7%
500,000 Republic of Brazil
12.75% 01/15/20............... 476,300
100,000 Republic of Colombia
8.375% due 02/15/27........... 63,500
250,000 Republic of Ecuador
6.75% 02/28/25................ 97,500
-----------
637,300
-----------
Total foreign/yankee bonds &
notes......................... $ 2,234,750
===========
PREFERRED STOCKS -- 2.0%
ENERGY & SERVICES -- 1.0%
16,000 Coastal Finance Corp........... $ 363,000
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ -----------
<C> <S> <C>
METALS, MINERALS & MINING -- 1.0%
21,000 Rio Algom, Ltd................. $ 372,750
-----------
Total preferred stocks......... $ 735,750
===========
<CAPTION>
PRINCIPAL
AMOUNT
------------
<C> <S> <C>
SHORT-TERM SECURITIES -- 2.1%
REPURCHASE AGREEMENT -- 2.1%
$ 802,000 Interest in $320,669,000 joint
repurchase agreement dated
06/30/00 with State Street
Bank, 6.436% due 07/03/00;
maturity amount $802,430
(Collateralized by
$151,504,351 U.S. Treasury
Bonds 8.125% due 05/15/21,
$171,295,551 U.S. Treasury
Inflation-Indexed Securities
3.625% due 05/15/02).......... $ 802,000
-----------
Total short-term securities.... $ 802,000
===========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total collateralized mortgage
obligations (cost $94,004)............ 0.2% $ 88,721
Total corporate notes
(cost $34,083,406).................... 86.0 32,709,149
Total foreign/yankee bonds & notes
(cost $2,320,907)..................... 5.9 2,234,750
Total preferred stock
(cost $753,000)....................... 2.0 735,750
Total short-term securities
(cost $802,000)....................... 2.1 802,000
----- -----------
Total investment in securities
(total cost $38,053,317).............. 96.2 36,570,370
Cash, receivables and other assets...... 4.7 1,797,488
Payable for securities purchased........ (0.8) (301,965)
Payable for fund shares redeemed........ (0.0) (54,128)
Dividend payable........................ (0.0) (630)
Other liabilities....................... (0.1) (61,190)
----- -----------
Net assets.............................. 100.0% $37,949,945
===== ===========
</TABLE>
51
<PAGE> 52
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 4,076,346
shares outstanding......................... $ 4,076
Paid-in surplus.............................. 40,784,687
Accumulated undistributed net investment
income..................................... 60,059
Accumulated net realized loss on
investments................................ (1,409,714)
Unrealized depreciation of investments....... (1,489,114)
Unrealized depreciation of other assets and
liabilities in foreign currencies.......... (49)
-----------
Net assets................................... $37,949,945
===========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($20,266,639 / 2,176,236 shares outstanding)
(125,000,000 shares authorized)................ $9.31
=====
Maximum offering price per share($9.31 /95.5%)... $9.75
=====
Class B
Net asset value per share and maximum offering
price per share ($7,170,510 / 770,902 shares
outstanding) (75,000,000 shares authorized).... $9.30
=====
Class C
Net asset value per share ($8,231,585 / 885,069
shares outstanding) (50,000,000 shares
authorized).................................... $9.30
=====
Maximum offering price per share
($9.30 / 99.0%)................................ $9.39
=====
Class Y
Net asset value per share and maximum offering
price per share ($2,281,211 / 244,139 shares
outstanding) (50,000,000 shares authorized).... $9.34
=====
</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. At June 30, 2000, the market value
of these securities amounted to $2,332,925 or 6.1% of net assets.
The accompanying notes are an integral part of this financial statement.
52
<PAGE> 53
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 1.2%
$ 250,000 California Infrastructure
Southern California Edison
Co., Series 1997-1, Class A5
6.28% due 09/25/05............ $ 245,005
1,000,000 California Infrastructure
Pacific Gas & Electric, Series
1997-1, Class A6
6.38% due 09/25/08............ 969,320
-----------
Total asset-backed
securities.................... $ 1,214,325
===========
COLLATERALIZED MORTGAGE-BACKED
SECURITIES -- 1.1%
44,392 Capital Lease Funding
Securitization, Series
1997-CTL1, Class A1
7.421% due 06/22/24........... $ 44,327
600,000 Comed Transitional Funding
Trust, Series 1998-1, Class A5
5.44% due 03/25/07............ 562,896
575,000 DLJ Commercial Mortgage Corp.,
Series 1998-CF1, Class B2
7.33% due 01/15/10............ 510,145
12,850 Premier Auto Trust, Series
1998-5, Class A2
5.07% due 04/09/01............ 12,845
-----------
Total collateralized mortgage-
backed securities............. $ 1,130,213
===========
CORPORATE NOTES -- 37.7%
CHEMICALS -- 0.3%
300,000 du Pont (E.I.) de Nemours & Co.
6.75% due 09/01/07............ $ 291,237
-----------
COMMUNICATIONS -- 1.3%
1,000,000 AT&T Corp.
6.50% due 03/15/29............ 837,509
500,000 Williams Communications Group,
Inc.
10.875% due 10/01/09.......... 488,750
-----------
1,326,259
-----------
CONSUMER DURABLES -- 0.2%
100,000 Federal-Mogul Corp.
7.375% due 01/15/06........... 72,725
100,000 Mark IV Industries, Inc.
7.50% due 09/01/07............ 76,518
100,000 Owens-Illinois, Inc.
8.10% due 05/15/07............ 92,383
-----------
241,626
-----------
CONSUMER SERVICES -- 0.2%
400,000 Service Corp. International
7.875% due 02/01/13........... 200,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
EDUCATION -- 1.7%
$ 1,300,000 Massachusetts Institute of
Technology
7.25% due 11/02/2096.......... $ 1,228,659
500,000 Yale University
7.375% due 04/15/2096......... 458,234
-----------
1,686,893
-----------
ENERGY & SERVICES -- 1.0%
1,150,000 Amoco Co.
6.00% due 06/09/08............ 1,045,741
-----------
ENERGY & SERVICES -- 9.1%
400,000 CMS Panhandle Holding Co.
6.125% due 03/15/04........... 374,650
550,000 Enterprise Oil PLC
6.50% due 05/01/05............ 519,151
800,000 Enterprise Oil PLC
6.70% due 09/15/07............ 751,003
100,000 Gulf Canada Resources Ltd.
8.25% due 03/15/17............ 92,000
200,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05........... 198,000
300,000 LASMO PLC
8.375% due 06/01/23........... 296,322
650,000 Noble Drilling Corp.
7.50% due 03/15/19............ 614,842
650,000 Occidental Petroleum Corp.
7.375% due 11/15/08........... 628,566
500,000 Ocean Energy, Inc.
7.625% due 07/01/05........... 475,000
500,000 Phillips Petroleum Co.
9.00% due 06/01/01............ 505,373
450,000 Pioneer Natural Resources Co.
6.50% due 01/15/08............ 387,659
175,000 Pioneer Natural Resources Co.
7.20% due 01/15/28............ 136,283
180,000 R&B Falcon Corp.
6.75% due 04/15/05............ 162,000
200,000 R&B Falcon Corp.
7.375% due 04/15/18........... 162,000
1,000,000 R&B Falcon Corp.
11.375% due 03/15/09.......... 1,085,000
1,150,000 Seagull Energy, Inc.
7.50% due 09/15/27............ 954,254
500,000 Sonat, Inc.
9.00% due 05/01/01............ 505,869
100,000 Tesoro Petroleum Corp.
9.00% due 07/01/08............ 95,000
250,000 Tuboscope, Inc.
7.50% due 02/15/08............ 220,000
500,000 Valero Energy Corp.
8.75% due 06/15/30............ 517,849
500,000 Vaster Resources, Inc.
6.50% due 04/01/09............ 475,599
-----------
9,156,420
-----------
</TABLE>
53
<PAGE> 54
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL SERVICES -- 7.9%
$ 850,000 Allstate Corp. (The)
7.875% due 05/01/05........... $ 856,890
500,000 Bayerische Landesbank
Girozentrale (NY)
6.375% due 10/15/05........... 474,064
500,000 CIT Group, Inc. (The)
7.125% due 06/17/02........... 495,704
500,000 Ford Motor Credit Co.
7.375% due 10/28/09........... 483,760
1,500,000 Ford Motor Credit Co.
7.75% due 11/15/02............ 1,509,708
500,000 General Electric Capital Corp.
6.52% due 10/08/02............ 493,079
200,000 General Motors Acceptance Corp.
6.19% due 08/18/03............ 199,129
550,000 Golden State Holdings, Inc.
6.75% due 08/01/01............ 534,317
300,000 Inter-American Development Bank
8.50% due 05/01/01............ 303,770
700,000 Inter-American Development Bank
8.875% due 06/01/09........... 774,515
120,000 Interpool, Inc.
7.20% due 08/01/07............ 96,924
300,000 Trenwick Group, Inc.
6.70% due 04/01/03............ 290,987
1,500,000 TXU Eastern Funding Co.
6.15% due 05/15/02............ 1,451,279
-----------
7,964,126
-----------
FOREST & PAPER PRODUCTS -- 0.8%
180,000 Domtar, Inc.
9.50% due 08/01/16............ 187,425
700,000 Weyerhaeuser Co.
7.25% due 07/01/13............ 664,805
-----------
852,230
-----------
HEALTH SERVICES -- 3.5%
250,000 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27............ 184,035
100,000 Columbia/HCA Healthcare Corp.
7.50% due 12/15/23............ 81,709
200,000 Columbia/HCA Healthcare Corp.
7.50% due 11/15/95............ 150,494
1,100,000 HEALTHSOUTH Corp.
6.875% due 06/15/05........... 942,691
430,000 HEALTHSOUTH Corp.
7.00% due 06/15/08............ 347,707
685,000 Manor Care, Inc.
7.50% due 06/15/06............ 557,719
1,360,000 Tenet Healthcare Corp.
8.00% due 01/15/05............ 1,305,600
-----------
3,569,955
-----------
MEDIA & ENTERTAINMENT -- 3.7%
$ @1,500,000 Hughes Electronics Corp.
7.472% due 10/23/00........... $ 1,499,362
500,000 Liberty Media Group
8.25% due 02/01/30............ 459,131
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
MEDIA & ENTERTAINMENT --
(CONTINUED)
$ 113,000 Paramount Communications, Inc.
7.50% due 07/15/23............ $ 100,070
200,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.......... 204,500
420,000 Shaw Communications, Inc.
8.25% due 04/11/10............ 424,758
1,250,000 Time Warner, Inc.
6.625% due 05/15/29........... 1,051,183
-----------
3,739,004
-----------
METALS, MINERALS & MINING -- 0.9%
400,000 Placer Dome, Inc.
7.125% due 05/15/03........... 387,314
600,000 Placer Dome, Inc.
7.125% due 06/15/07........... 549,115
-----------
936,429
-----------
REAL ESTATE -- 0.2%
250,000 Duke Realty LP
7.25% due 09/22/02............ 247,260
-----------
RETAIL -- 0.9%
100,000 Kmart Corp.
7.55% due 07/27/04............ 93,704
825,000 Stop & Shop Cos., Inc. (The)
9.75% due 02/01/02............ 845,649
-----------
939,353
-----------
TRANSPORTATION -- 1.0%
1,000,000 DaimlerChrysler North America
Holding Corp.
7.75% due 06/15/05............ 1,008,597
-----------
UTILITIES -- 5.0%
250,000 AES Corp. (The)
9.50% due 06/01/09............ 245,000
1,000,000 Browning-Ferris Industries,
Inc.
7.40% due 09/15/35............ 696,550
250,000 Cleveland Electric Illuminating
Co.
7.13% due 07/01/07............ 235,049
100,000 CMS Energy Corp.
7.50% due 01/15/09............ 89,454
@1,000,000 Entergy Gulf States, Inc.
8.04% due 06/02/03............ 999,793
550,000 Illinois Power Co.
6.25% due 07/15/02............ 537,566
226,829 Niagara Mohawk Power Corp.
7.25% due 10/01/02............ 223,780
525,000 Niagara Mohawk Power Corp.
6.875% due 03/01/01........... 522,115
250,000 Pacific Gas & Electric Co.
7.25% due 03/01/26............ 221,957
200,000 PacifiCorp
6.12% due 01/15/06............ 185,484
</TABLE>
The accompanying notes are an integral part of this financial statement.
54
<PAGE> 55
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 460,000 Philadelphia Electric Co.
5.625% due 11/01/01........... $ 449,717
125,000 Public Service Electric & Gas
Co.
7.00% due 09/01/24............ 110,998
500,000 U.S. West Capital Funding, Inc.
6.875% due 08/15/01........... 497,587
-----------
5,015,050
-----------
Total corporate notes.......... $38,220,180
===========
ENHANCED EQUIPMENT TRUST
CERTIFICATES -- 0.1%
85,846 NorthWest Airlines Corp. Trust,
Series 2, Class C
11.30% due 06/21/14........... $ 101,099
-----------
Total enhanced equipment trust
certificates.................. $ 101,099
===========
FOREIGN/YANKEE BONDS & NOTES -- 6.4%
FOREIGN CORPORATIONS -- 2.2%
1,750,000 Deutsche Telekom International
Finance AG
7.75% due 06/15/05............ $ 1,761,943
200,000 Hydro-Quebec
8.40% due 01/15/22............ 211,420
250,000 Southern Investments UK PLC
6.80% due 12/01/06............ 230,738
-----------
2,204,101
-----------
FOREIGN GOVERNMENTS -- 4.2%
4,200,000 Bundesobligation
5.125% 11/21/00............... 4,032,918
200,000 Province of Quebec
7.50% due 09/15/29............ 196,118
-----------
4,229,036
-----------
Total foreign/yankee bonds &
notes......................... $ 6,433,137
===========
<CAPTION>
SHARES
------------
<C> <S> <C>
PREFERRED STOCKS -- 0.2%
ENERGY & SERVICES -- 0.2%
10,997 Coastal Finance Corp........... $ 249,494
-----------
Total preferred stocks......... $ 249,494
===========
<CAPTION>
PRINCIPAL
AMOUNT
------------
<C> <S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- 44.3%
FEDERAL HOME LOAN MORTGAGE
ASSOCIATION -- 1.4%
$ 1,490,754 7.00% due 10/01/29............. $ 1,440,632
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 9.1%
$ 7,729,679 6.00% due
02/01/13 - 06/01/28........... $ 7,312,610
220,065 6.50% due 09/01/28............. 207,865
1,689,793 7.50% due
04/01/30 - 05/01/30........... 1,665,382
-----------
9,185,857
-----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 15.5%
16,923,681 6.00% due 01/15/29 - 08/15/29.. 15,575,418
-----------
U.S. TREASURY BONDS -- 10.7%
300,000 6.375% due 08/15/27............ 308,531
2,130,000 6.875% due 08/15/25............ 2,315,710
1,300,000 7.875% due 02/15/21............ 1,543,750
1,480,000 8.75% due 05/15/20............. 1,895,788
655,000 8.875% due 08/15/17............ 833,078
900,000 10.375% due 11/15/09........... 1,031,343
1,000,000 10.625% due 08/15/15........... 1,421,875
420,000 11.875% due 11/15/03........... 489,169
680,000 13.875% due 05/15/11........... 923,950
-----------
10,763,196
-----------
U.S. TREASURY INFLATION-INDEXED
SECURITIES -- 4.3%
486,275 3.375% due 01/15/07............ 466,671
2,967,272 3.625% due 01/15/08............ 2,877,328
1,017,600 4.25% due 01/15/10............. 1,032,547
-----------
4,376,546
-----------
U.S. TREASURY NOTES -- 3.3%
2,800,000 6.125% due 12/31/01............ 2,784,250
500,000 6.50% due 10/15/06............. 505,625
-----------
3,289,875
-----------
Total U.S. treasuries & federal
agencies...................... $44,631,529
===========
SHORT-TERM SECURITIES -- 9.4%
REPURCHASE AGREEMENT -- 9.4%
9,425,000 Interest in $320,669,000 joint
repurchase agreement dated
06/30/00 with State Street
Bank,
6.436% due 07/03/00; maturity
amount $9,430,055
(Collateralized by
$151,504,351 U.S. Treasury
Bonds 8.125% due 05/15/21,
$171,295,551 U.S. Treasury
Inflation-Indexed Securities
3.625% due 05/15/02).......... $ 9,425,000
-----------
Total short-term securities.... $ 9,425,000
===========
</TABLE>
55
<PAGE> 56
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total asset-backed securities
(cost $1,262,334)................. 1.2% $ 1,214,325
Total collateralized mortgage-backed
securities (cost $1,198,206)...... 1.1 1,130,213
Total corporate notes
(cost $39,626,098)................ 37.7 38,220,180
Total enhanced equipment trust
certificates (cost $103,812)...... 0.1 101,099
Total foreign/yankee bonds & notes
(cost $6,213,309)................. 6.4 6,433,137
Total preferred stocks
(cost $246,058)................... 0.2 249,494
Total U.S. treasuries & federal
agencies (cost $44,520,014)....... 44.3 44,631,529
Total short-term securities
(cost $9,425,000)................. 9.4 9,425,000
----- ------------
Total investment in securities
(total cost $102,594,831)......... 100.4 101,404,977
Cash, receivables and other
assets............................ 2.9 2,858,913
Payable for securities purchased.... (3.3) (3,303,420)
Payable for fund shares redeemed.... (0.0) (148,069)
Other liabilities................... 0.0 (38,390)
----- ------------
Net assets.......................... 100.0% $100,774,011
===== ============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 10,003,585
shares outstanding........................ $ 10,004
Paid-in surplus............................. 105,942,636
Accumulated undistributed net investment
income.................................... 148,975
Accumulated net realized loss on
investments............................... (3,988,129)
Unrealized depreciation of investments...... (1,360,082)
Unrealized appreciation of futures contracts
sec....................................... 12,976
Unrealized appreciation of other assets and
liabilities in foreign currencies......... 7,631
------------
Net assets.................................. $100,774,011
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($36,964,694 /
3,673,483 shares outstanding) (125,000,000
shares authorized)............................. $10.06
======
Maximum offering price per share
($10.06 / 95.5%)............................... $10.53
======
Class B
Net asset value per share and maximum offering
price per share ($20,929,277 / 2,088,058 shares
outstanding) (75,000,000 shares authorized).... $10.02
======
Class C
Net asset value per share ($14,656,733 /
1,457,284 shares outstanding) (50,000,000
shares authorized)............................. $10.06
======
Maximum offering price per share ($10.06 /
99.0%)......................................... $10.16
======
Class Y
Net asset value per share and maximum offering
price per share ($28,223,307 / 2,784,760 shares
outstanding) (50,000,000 shares authorized).... $10.13
======
</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. At June 30, 2000, the market value
of these securities amounted to $2,499,155 or 2.5% of net assets.
sec. The Fund had 39 10 year U.S. Treasury Notes September 2000 Index Futures
contracts open as of June 30, 2000. These contracts had a value of
$3,840,891 as of June 30, 2000 and were collateralized by Entergy Gulf
States, Inc., 8.04% 06/02/03 and Hughes Electronics Corp., 7.472% 10/23/00
Corporate Notes.
The accompanying notes are an integral part of this financial statement.
56
<PAGE> 57
THE HARTFORD MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
COMMERCIAL PAPER -- 73.0%
$ 2,000,000 7-Eleven, Inc.
6.58% due 07/11/00............ $ 1,997,076
2,000,000 Abbey National North America
PLC
6.58% due 09/12/00............ 1,974,046
1,000,000 American Honda Finance Corp.
6.19% due 07/12/00............ 998,453
2,000,000 ANZ (Delaware), Inc.
6.02% due 08/25/00............ 1,982,274
2,000,000 AT&T Corp.
6.51% due 07/26/00............ 1,991,682
2,000,000 Bradford & Bingley Building
Society
6.56% due 07/10/00............ 1,997,449
2,000,000 CAFCO
6.62% due 08/01/00............ 1,989,334
2,000,000 CIESCO L.P.
6.14% due 07/18/00............ 1,994,883
2,000,000 Coca-Cola Co. (The)
6.52% due 08/14/00............ 1,984,787
1,000,000 Emerson Electric Co.
6.46% due 07/06/00............ 999,462
1,000,000 Fleet Financial Group, Inc.
6.707% due 03/13/01........... 999,497
2,000,000 Ford Motor Credit Co.
6.59% due 08/03/00............ 1,988,651
1,000,000 General Electric Capital Corp.
6.00% due 08/21/00............ 991,833
1,000,000 General Electric Capital Corp.
6.59% due 09/18/00............ 985,905
1,000,000 General Motors Acceptance Corp.
6.00% due 08/14/00............ 993,000
1,000,000 Goldman Sachs Group, Inc. (The)
6.58% due 07/24/00............ 996,162
2,000,000 GTE Corp.
6.64% due 07/13/00............ 1,996,311
2,000,000 International Lease Finance
Corp.
6.50% due 07/24/00............ 1,992,417
1,001,000 Market Street Funding Corp.
6.55% due 07/10/00............ 999,725
1,000,000 Market Street Funding Corp.
6.63% due 09/11/00............ 987,108
2,000,000 Merita Bank North America, Inc.
6.14% due 12/04/00............ 1,947,469
2,000,000 Merrill Lynch & Co., Inc.
6.14% due 07/17/00............ 1,995,224
2,000,000 Morgan Stanley Dean Witter &
Co.
6.00% due 07/05/00............ 1,999,333
2,000,000 Motorola, Inc.
6.57% due 07/26/00............ 1,991,605
1,625,000 National Rural Utilities
Cooperative Finance Corp.
6.52% due 08/21/00............ 1,610,579
2,000,000 Nationwide Building Society
6.59% due 10/18/00............ 1,960,826
1,000,000 Old Line Funding Corp.
6.54% due 07/11/00............ 998,547
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<C> <S> <C>
$ 1,000,000 Old Line Funding Corp.
6.58% due 08/01/00............ $ 994,699
2,000,000 Pfizer, Inc.
6.58% due 08/07/00............ 1,987,206
1,000,000 Salomon Smith Barney Holdings,
Inc.
6.60% due 09/18/00............ 985,883
1,000,000 Salomon Smith Barney Holdings,
Inc.
6.61% due 09/18/00............ 985,862
2,000,000 Sara Lee Corp.
6.49% due 07/06/00............ 1,998,918
2,000,000 Sherman-Williams Co. (The)
6.55% due 07/03/00............ 2,000,000
1,000,000 Swedbank, Inc.
6.19% due 11/28/00............ 974,552
2,000,000 Toronto-Dominion Holdings
6.24% due 10/23/00............ 1,961,173
2,000,000 Wood Street Funding Corp.
6.61% due 07/21/00............ 1,993,390
-----------
Total commercial paper......... $57,225,321
===========
CORPORATE NOTES -- 16.6%
2,000,000 First Union National Bank
6.80% due 02/22/01............ $ 2,000,000
1,000,000 Fleet National Bank
6.91% due 03/27/01............ 1,000,880
2,000,000 General Mills, Inc.
6.161% due 07/17/00........... 1,999,925
@1,000,000 Goldman Sachs Group, Inc. (The)
6.713% due 01/16/01........... 1,002,153
2,000,000 Key Bank N.A.
6.76% due 05/25/01............ 1,999,356
2,000,000 Nationsbank Corp.
5.75% due 03/15/01............ 1,986,320
1,000,000 Toyota Motor Credit Corp.
6.181% due 01/09/01........... 999,641
2,000,000 Wachovia Bank
6.82% due 09/14/00............ 1,999,923
-----------
Total corporate notes.......... $12,988,198
===========
REPURCHASE AGREEMENT -- 10.2%
8,028,000 Interest in $320,669,000 joint
repurchase agreement dated
06/30/00 with State Street
Bank, 6.436% due 07/03/00;
maturity amount $8,032,306
(Collateralized by
$151,504,351 U.S. Treasury
Bonds 8.125% due 05/15/21,
$171,295,551 U.S. Treasury
Inflation-Indexed Securities
3.625% due 05/15/02).......... $ 8,028,000
-----------
Total repurchase agreement..... $ 8,028,000
===========
</TABLE>
57
<PAGE> 58
THE HARTFORD MONEY MARKET FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total commercial paper (cost
$57,225,321)....................... 73.0% $57,225,321
Total corporate notes (cost
$12,988,198)....................... 16.6 12,988,198
Total short-term securities (cost
$8,028,000)........................ 10.2 8,028,000
----- -----------
Total investment in securities (total
cost $78,241,519).................. 99.8 78,241,519
Cash, receivables and other assets... 1.8 1,342,035
Payable for fund shares redeemed..... (1.1) (870,238)
Payable for dividends................ (0.5) (371,381)
----- -----------
Net assets........................... 100.0% $78,341,935
===== ===========
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
800,000,000 shares authorized; 78,341,935
shares outstanding......................... $ 78,342
Paid-in surplus.............................. 78,263,593
-----------
Net assets................................... $78,341,935
===========
</TABLE>
<TABLE>
<S> <C>
Class A
Shares of benefical interest outstanding,
$0.001 par value 400,000,000 shares
authorized (Net assets $40,674,060)...... 40,674,060
===========
Net asset value and offering price per
share....................................
$1.00
===========
Class B
Shares of benefical interest outstanding,
$0.001 par value 200,000,000 shares
authorized (Net assets $14,956,694)...... 14,956,694
===========
Net asset value and offering price per
share....................................
$1.00
===========
Class C
Shares of benefical interest outstanding,
$0.001 par value 100,000,000 shares
authorized (Net assets $8,976,938)....... 8,976,938
===========
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 100,000,000 shares
authorized (Net assets $13,734,243)...... 13,734,243
===========
Net asset value and 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. At June 30, 2000, the market value
of these securities amounted to $1,002,153 or 1.3% of net assets.
The accompanying notes are an integral part of this financial statement.
58
<PAGE> 59
(This page intentionally left blank)
59
<PAGE> 60
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<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........................................ $ 27,556 $ 2,858 $ 195,357 $ 5,767,364 $ 714,944
Interest......................................... 28,003 20,931 731,777 3,364,232 352,975
Securities lending............................... 257 3 188 16,721 5,848
Less: Foreign tax withheld....................... (1,213) -- -- (155,643) (12,996)
---------- ---------- ------------ ------------- -----------
Total investment income, net................... 54,603 23,792 927,322 8,992,674 1,060,771
---------- ---------- ------------ ------------- -----------
EXPENSES:
Investment advisory fees......................... 39,773 51,942 1,352,418 7,269,594 1,613,028
Transfer agent fees.............................. 6,473 7,715 315,555 2,163,476 388,278
Distribution fees
Class A........................................ 7,958 9,793 256,233 1,755,034 318,490
Class B........................................ 5,975 9,270 321,983 3,423,285 401,952
Class C........................................ 9,057 12,917 301,369 1,592,039 441,915
Custodian fees, gross............................ 5,035 2,625 10,094 41,476 7,126
Custodian fees expense offset.................... (3,036) (625) (4,118) (36,719) (2,407)
Accounting services.............................. 580 763 23,866 156,156 28,477
Registration and filing fees..................... 3,061 4,270 46,163 281,864 68,272
Board of Directors fees.......................... 14 18 983 6,430 1,174
Amortization of deferred organizational costs.... -- -- 6,014 -- --
Other expenses................................... 567 869 33,735 215,569 39,918
---------- ---------- ------------ ------------- -----------
Total expenses, (before reimbursements)........ 75,457 99,557 2,664,295 16,868,204 3,306,223
Expense reimbursements........................... (4,782) (5,343) (5,000) -- (2,952)
Class A distribution fees waived................. (1,137) (1,399) (36,605) (250,719) (45,499)
---------- ---------- ------------ ------------- -----------
Total expenses, net.............................. 69,538 92,815 2,622,690 16,617,485 3,257,772
---------- ---------- ------------ ------------- -----------
Net investment (loss) income..................... (14,935) (69,023) (1,695,368) (7,624,811) (2,197,001)
---------- ---------- ------------ ------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on investments.......... 833,207 463,450 23,837,336 342,059,537 41,162,011
Net realized (loss) gain on forward foreign
currency contracts............................. (7,742) -- 1,172 1,595,439 --
Net realized gain on option contracts............ -- -- -- -- --
Net realized gain (loss) on futures contracts.... -- -- -- -- --
Net realized gain (loss) on foreign currency
transactions................................... 4,835 -- (107) (1,102,134) 312
Net unrealized appreciation (depreciation) of
investments.................................... 4,010,382 2,695,756 (15,449,052) (212,385,883) 22,622,118
Net unrealized (depreciation) appreciation of
future contracts............................... -- -- -- -- --
Net unrealized appreciation of foreign forward
currency contracts............................. 171 -- 6,043 142,075 --
Net unrealized appreciation (depreciation) on
translation of other assets and liabilities in
foreign currencies............................. 535 -- (4,823) 24,081 --
---------- ---------- ------------ ------------- -----------
Net realized and unrealized gain (loss) on
investments.................................... 4,841,388 3,159,206 8,390,569 130,333,115 63,784,441
---------- ---------- ------------ ------------- -----------
Net increase (decrease) in net assets resulting
from operations................................ $4,826,453 $3,090,183 $ 6,695,201 $ 122,708,304 $61,587,440
========== ========== ============ ============= ===========
</TABLE>
* From inception May 1, 2000 to June 30, 2000.
The accompanying notes are an integral part of these financial statements.
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>
$ 1,263,441 $ 1,927,799 $ 7,329,279 $ 847,347 $ 4,622,810 $ 4,588,281 $ 16,750 $ 11,512
654,094 846,022 2,764,037 261,713 383,490 21,001,165 1,795,017 3,488,246
2,501 8,380 1,829 257 217 2,338 -- 97
(164,988) (191,602) (48,019) (152) (30,540) (34,732) -- --
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
1,755,048 2,590,599 10,047,126 1,109,165 4,975,977 25,557,052 1,811,767 3,499,855
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
636,673 1,244,390 6,273,050 714,569 1,602,872 5,724,398 136,760 329,818
148,614 313,925 1,871,561 184,171 439,556 1,710,963 36,568 85,116
136,488 261,841 1,503,311 193,129 426,237 1,300,989 32,928 67,185
125,223 236,835 2,537,708 135,309 570,833 2,880,244 35,611 104,622
110,544 445,973 1,885,091 203,730 240,999 1,779,803 41,786 72,093
71,424 59,827 6,177 5,419 5,258 8,046 3,009 5,635
(1,941) (12,210) (1,741) (201) (809) (1,749) (339) --
11,237 20,927 133,159 13,398 32,058 130,539 2,735 7,612
21,201 61,975 227,437 32,724 44,278 189,707 3,876 8,622
462 906 5,475 552 1,315 5,367 113 313
6,014 -- 6,013 -- -- -- -- 6,014
16,097 30,832 183,570 19,113 44,537 180,035 3,893 11,142
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
1,282,036 2,665,221 14,630,811 1,501,913 3,407,134 13,908,342 296,940 698,172
-- -- -- -- -- -- -- (637)
(19,498) (37,406) (214,759) (27,590) (60,891) (185,856) (4,704) (9,598)
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
1,262,538 2,627,815 14,416,052 1,474,323 3,346,243 13,722,486 292,236 687,937
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
492,510 (37,216) (4,368,926) (365,158) 1,629,734 11,834,566 1,519,531 2,811,918
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
8,126,844 10,334,937 78,088,365 7,082,866 13,156,924 53,325,258 (1,220,816) (1,744,149)
(495,523) (46,655) -- -- 17,686 -- (8,486) 117,925
-- -- -- -- 3,892 -- -- --
215,932 -- -- 953,569 -- -- -- (38,084)
(102,133) (188,468) 1,352 -- (19,670) 951 8,063 (88,301)
(14,827,215) (4,351,787) (43,237,227) (3,639,318) (23,570,007) (32,749,218) (475,808) 2,965,656
(453,362) 331,262 -- (40,530) -- -- -- 43,939
7,602 62,892 -- -- -- -- -- --
(42,955) (37,862) -- -- (1,089) -- 396 7,631
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
(7,570,810) 6,104,319 34,852,490 4,356,587 (10,412,264) 20,576,991 (1,696,651) 1,264,617
------------ ----------- ------------ ----------- ------------ ------------ ----------- -----------
$ (7,078,300) $ 6,067,103 $ 30,483,564 $ 3,991,429 $ (8,782,530) $ 32,411,557 $ (177,120) $ 4,076,535
============ =========== ============ =========== ============ ============ =========== ===========
<CAPTION>
THE HARTFORD
MONEY MARKET
FUND
------------
<S> <C>
$ --
2,345,308
--
--
----------
2,345,308
----------
190,753
93,886
69,266
88,759
45,307
1,820
(44)
5,723
7,622
237
6,013
8,375
----------
517,717
(55,027)
(9,895)
----------
452,795
----------
1,892,513
----------
(1,139)
--
--
--
--
--
--
--
--
----------
(1,139)
----------
$1,891,374
==========
</TABLE>
61
<PAGE> 62
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<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 (loss) income.............. $ (14,935) $ (69,023) $ (1,695,368) $ (7,624,811) $ (2,197,001)
Net realized gain (loss) on investments... 830,300 463,450 23,838,401 342,552,842 41,162,323
Net unrealized appreciation (depreciation)
of investments.......................... 4,011,088 2,695,756 (15,447,832) (212,219,727) 22,622,118
----------- ----------- ------------ -------------- ------------
Net increase (decrease) in net assets
resulting from operations............... 4,826,453 3,090,183 6,695,201 122,708,304 61,587,440
----------- ----------- ------------ -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................. -- -- -- -- --
Class B................................. -- -- -- -- --
Class C................................. -- -- -- -- --
Class Y................................. -- -- -- -- --
From net realized gain on investments
Class A................................. -- -- (7,132,203) (55,487,891) (8,248,344)
Class B................................. -- -- (3,188,648) (37,768,564) (3,682,808)
Class C................................. -- -- (3,275,190) (20,538,847) (4,227,479)
Class Y................................. -- -- (2,104,136) (3,920,485) (1,321,206)
----------- ----------- ------------ -------------- ------------
Total distributions..................... -- -- (15,700,177) (117,715,787) (17,479,837)
----------- ----------- ------------ -------------- ------------
CAPITAL SHARE TRANSACTIONS:
Class A................................. 16,405,307 21,501,707 65,159,406 337,788,567 115,460,866
Class B................................. 5,254,344 9,046,605 23,019,591 179,554,476 51,978,659
Class C................................. 7,738,161 11,475,785 40,994,571 225,065,762 70,445,992
Class Y................................. 1,132,395 999,954 12,753,193 16,355,280 19,652,800
----------- ----------- ------------ -------------- ------------
Net increase (decrease) from capital
share transactions.................... 30,530,207 43,024,051 141,926,761 758,764,085 257,538,317
----------- ----------- ------------ -------------- ------------
Net increase (decrease) in net assets... 35,356,660 46,114,234 132,921,785 763,756,602 301,645,920
NET ASSETS:
Beginning of period....................... -- -- 240,125,040 1,623,012,202 234,802,814
----------- ----------- ------------ -------------- ------------
End of period............................. $35,356,660 $46,114,234 $373,046,825 $2,386,768,804 $536,448,734
=========== =========== ============ ============== ============
Accumulated undistributed net investment
(loss) income........................... $ (14,935) $ (69,023) $ (1,695,368) $ (8,215,438) $ (2,197,001)
=========== =========== ============ ============== ============
</TABLE>
* From inception May 1, 2000 to June 30, 2000.
The accompanying notes are an integral part of these financial statements.
62
<PAGE> 63
--------------------------------------------------------------------------------
<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>
$492,510..... $ (37,216) $ (4,368,926) $ (365,158) $ 1,629,734 $ 11,834,566 $ 1,519,531 $ 2,811,918
7,745,120... 10,099,814 78,089,717 8,036,435 13,158,832 53,326,209 (1,221,239) (1,752,609)
(15,315,930) (3,995,495) (43,237,227) (3,679,848) (23,571,096) (32,749,218) (475,412) 3,017,226
------------ ------------ -------------- ------------ ------------ -------------- ----------- ------------
(7,078,300) 6,067,103 30,483,564 3,991,429 (8,782,530) 32,411,557 (177,120) 4,076,535
------------ ------------ -------------- ------------ ------------ -------------- ----------- ------------
(32,044) -- -- -- (1,029,500) (6,299,965) (800,653) (1,123,060)
(5,637) -- -- -- (102,273) (2,859,561) (272,432) (551,793)
(8,225) -- -- -- (65,717) (1,817,182) (324,490) (375,782)
(10,136) -- -- -- (114,765) (611,649) (94,078) (857,269)
(306,171) (1,333,480) (8,435,372) (1,199,270) (1,159,810) (7,469,005) -- --
(95,198) (328,644) (4,941,594) (278,015) (517,078) (5,678,593) -- --
(95,944) (618,748) (3,997,597) (432,125) (249,100) (3,636,108) -- --
(83,488) (40,282) (286,320) (3,879) (95,926) (605,420) -- --
------------ ------------ -------------- ------------ ------------ -------------- ----------- ------------
(636,843) (2,321,154) (17,660,883) (1,913,289) (3,334,169) (28,977,483) (1,491,653) (2,907,904)
------------ ------------ -------------- ------------ ------------ -------------- ----------- ------------
30,847,483.. 122,238,244 214,599,982 76,745,944 18,238,367 112,015,491 3,648,393 (20,701,672)
5,927,752... 42,624,103 89,216,062 14,061,253 (7,010,332) 49,256,622 59,975 (784,238)
15,516,284.. 83,771,579 142,041,614 24,035,567 12,360,554 68,104,926 59,486 (3,637,485)
275,835..... 3,807,653 2,056,100 7,602 (1,815,268) (2,353,024) 62,425 (221,419)
------------ ------------ -------------- ------------ ------------ -------------- ----------- ------------
52,567,354.. 252,441,579 447,913,758 114,850,366 21,773,321 227,024,015 3,830,279 (25,344,814)
------------ ------------ -------------- ------------ ------------ -------------- ----------- ------------
44,852,211.. 256,187,528 460,736,439 116,928,506 9,656,622 230,458,089 2,161,506 (24,176,183)
125,034,101.. 156,654,948 1,551,776,783 124,883,117 430,515,565 1,640,237,707 35,788,439 124,950,194
------------ ------------ -------------- ------------ ------------ -------------- ----------- ------------
$169,886,312.. $412,842,476 $2,012,513,222 $241,811,623 $440,172,187 $1,870,695,796 $37,949,945 $100,774,011
============ ============ ============== ============ ============ ============== =========== ============
$125,714..... $ (67,443) $ (4,368,926) $ (365,158) $ 138,720 $ 525,140 $ 60,059 $ 148,975
============ ============ ============== ============ ============ ============== =========== ============
<CAPTION>
THE HARTFORD
MONEY
MARKET FUND
------------
<S> <C>
$ 1,892,248
(1,139)
--
------------
1,891,109
------------
(1,023,267)
(387,921)
(199,936)
(279,985)
--
--
--
--
------------
(1,891,109)
------------
(3,988,539)
(10,804,988)
(927,239)
4,781,695
------------
(10,939,071)
------------
(10,939,071)
89,281,006
------------
$ 78,341,935
============
$ --
============
</TABLE>
63
<PAGE> 64
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
--------------------------------------------------------------------------------
<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 (loss) income.......................... $ (1,225,256) $ (8,514,255) $ (939,410) $ 407,773
Net realized gain (loss).............................. 32,432,282 220,244,826 22,596,988 8,591,549
Net unrealized appreciation (depreciation) of
investments......................................... 42,030,413 338,188,361 30,403,220 20,928,247
------------ -------------- ------------ ------------
Net increase (decrease) in net assets resulting from
operations.......................................... 73,237,439 549,918,932 52,060,798 29,927,569
------------ -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................................. -- -- -- (559,087)
Class B............................................. -- -- -- (85,278)
Class C............................................. -- -- -- (88,196)
Class Y............................................. -- -- -- (270,239)
From net realized gain on investments
Class A............................................. (5,265,328) (39,852,408) (2,912,392) (2,811,591)
Class B............................................. (2,703,900) (30,192,527) (1,225,939) (1,047,478)
Class C............................................. (1,538,384) (7,467,929) (1,010,823) (534,746)
Class Y............................................. (1,965,227) (3,099,014) (506,412) (1,243,410)
------------ -------------- ------------ ------------
Total distributions................................. (11,472,839) (80,611,878) (5,655,566) (6,640,025)
------------ -------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Class A............................................. 42,872,851 194,440,831 69,284,533 19,101,077
Class B............................................. 20,781,794 104,187,245 32,020,392 6,749,070
Class C............................................. 27,086,592 138,335,017 39,377,277 10,297,825
Class Y............................................. 15,882,519 18,103,377 10,190,594 9,577,997
------------ -------------- ------------ ------------
Net increase from capital share transactions.......... 106,623,756 455,066,470 150,872,796 45,725,969
------------ -------------- ------------ ------------
Net increase in net assets............................ 168,388,356 924,373,524 197,278,028 69,013,513
NET ASSETS:
Beginning of period................................... 71,736,684 698,638,678 37,524,786 56,020,588
------------ -------------- ------------ ------------
End of period......................................... $240,125,040 $1,623,012,202 $234,802,814 $125,034,101
============ ============== ============ ============
Accumulated undistributed net investment (loss)
income.............................................. $ -- $ (590,627) $ -- $ (310,754)
============ ============== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
64
<PAGE> 65
--------------------------------------------------------------------------------
<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>
$ (178,320) $ (3,763,884) $ (138,334) $ 2,672,980 $ 16,387,716 $ 2,025,923 $ 5,607,972 $ 2,937,448
2,265,867 46,125,393 2,742,435 10,148,305 43,410,466 (191,057) (2,195,431) (625)
28,235,324 159,950,778 10,681,115 2,924,874 77,986,686 (1,182,640) (5,948,696) --
------------ -------------- ------------ ------------ -------------- ----------- ------------ -----------
30,322,871 202,312,287 13,285,216 15,746,159 137,784,868 652,226 (2,536,155) 2,936,823
------------ -------------- ------------ ------------ -------------- ----------- ------------ -----------
-- -- -- (2,217,864) (8,482,818) (1,063,399) (2,843,575) (1,707,551)
-- -- -- (382,254) (4,171,375) (342,908) (919,185) (666,138)
-- -- -- (136,215) (2,283,710) (431,010) (571,650) (186,160)
-- -- -- (291,465) (1,151,512) (175,288) (1,089,441) (376,974)
(331,261) (11,670,258) (403,638) (4,806,895) (11,395,300) -- (106,002) --
(91,292) (7,679,531) (116,131) (2,531,359) (9,401,481) -- (40,029) --
(124,062) (4,543,766) (172,393) (747,184) (5,104,272) -- (22,706) --
(21,340) (315,841) (3,386) (473,768) (1,207,369) -- (30,397) --
------------ -------------- ------------ ------------ -------------- ----------- ------------ -----------
(567,955) (24,209,396) (695,548) (11,587,004) (43,197,837) (2,012,605) (5,622,985) (2,936,823)
------------ -------------- ------------ ------------ -------------- ----------- ------------ -----------
63,895,442 393,153,938 56,058,326 57,117,490 335,483,478 9,630,199 14,564,913 15,238,736
19,489,249 220,769,684 14,712,149 12,180,404 285,272,939 5,356,515 6,302,222 13,826,003
35,320,411 241,716,387 22,738,057 33,237,122 252,748,046 6,628,845 13,685,113 8,700,755
3,029,207 20,645,139 14,639 6,202,735 4,953,954 1,391,975 18,456,771 3,632,116
------------ -------------- ------------ ------------ -------------- ----------- ------------ -----------
121,734,309 876,285,148 93,523,171 108,737,751 878,458,417 23,007,534 53,009,019 41,397,610
------------ -------------- ------------ ------------ -------------- ----------- ------------ -----------
151,489,225 1,054,388,039 106,112,839 112,896,906 973,045,448 21,647,155 44,849,879 41,397,610
5,165,723 497,388,744 18,770,278 317,618,659 667,192,259 14,141,284 80,100,315 47,883,396
------------ -------------- ------------ ------------ -------------- ----------- ------------ -----------
$156,654,948 $1,551,776,783 $124,883,117 $430,515,565 $1,640,237,707 $35,788,439 $124,950,194 $89,281,006
============ ============== ============ ============ ============== =========== ============ ===========
$ (30,227) $ -- $ -- $ (178,759) $ 278,931 $ 45,916 $ 244,961 $ --
============ ============== ============ ============ ============== =========== ============ ===========
</TABLE>
65
<PAGE> 66
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
--------------------------------------------------------------------------------
1. ORGANIZATION:
The Hartford Mutual Funds, Inc. (the Company) is an open-end management
investment company comprised of fourteen portfolios (each a "Fund" or
together the "Funds"). The Funds 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 goals 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>
66
<PAGE> 67
--------------------------------------------------------------------------------
<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 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
amortized 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.
67
<PAGE> 68
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
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 are reported as
net realized gain (loss) on foreign currency transactions and net
unrealized appreciation (depreciation) on translation of other assets
and liabilities in foreign currencies, respectively.
d) Securities Lending--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,
the Advisers Fund and the Bond Income Strategy 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 June 30, 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........................................ $ 1,138,174 $ 1,162,500
Small Company Fund........................................ 4,506,516 4,838,200
Capital Appreciation Fund................................. 119,129,634 123,070,100
MidCap Fund............................................... 52,955,761 54,401,200
International Opportunities Fund.......................... 1,860,656 1,930,542
Global Leaders Fund....................................... 11,234,411 11,665,400
Stock Fund................................................ 50,677,061 52,185,300
Growth and Income Fund.................................... 5,174,156 5,260,200
Dividend and Growth Fund.................................. 12,612,396 13,308,400
Advisers Fund............................................. 59,921,181 61,621,750
</TABLE>
e) 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.
f) 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.
g) Futures, Options on Futures and Options Transactions--The Funds enter
into futures contracts to retain their cash balance and yet be exposed
to the market, thereby providing the liquidity necessary to accommodate
redemptions while at the same time providing shareholders with the
investment return of a fully invested portfolio. 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 debt 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
68
<PAGE> 69
--------------------------------------------------------------------------------
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 Funds' 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 purchased as of the end of the reporting period. If an option,
which a Fund has purchased, expires on its stipulated expiration date,
the Fund realizes a loss in the amount of the cost of the option. If
the Fund enters into a closing transaction, it realizes a gain or loss,
depending on whether the proceeds from the sale are greater or less
than 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, 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 its 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 was as follows as of June 30, 2000:
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........................................... 139 15,821
Expired during the period................................... -- --
Closed during the period.................................... (139) (15,821)
Exercised during the period................................. -- --
---- --------
Balance at the end of period................................ -- --
==== ========
</TABLE>
h) Forward Foreign Currency Contracts--As of June 30, 2000, the Global
Health Fund, the Small Company Fund, 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.
69
<PAGE> 70
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
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.
k) Fund Share Valuation and Dividend Distributions to Shareholders--Orders
for the Funds' 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 data 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 fund 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.
l) Organizational Costs--Costs incurred by the Funds in connection with
their organization have been deferred and are being amortized on a
straight line basis over five years. The unamortized deferred
organizational costs of each Fund as of June 30, 2000 are included in
the excess of cash, receivables and other assets over liabilities or
the excess of liabilities cash, receivables and other assets, as
applicable, in each Fund's Statement of Net Assets.
70
<PAGE> 71
--------------------------------------------------------------------------------
m) Use of Estimates--The preparation of financial statements in conformity
with generally accepted accounting principles 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.
n) 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.
At June 30, 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.... Tricord Systems, Inc 04/13/00 $ 9,700,000 $19,710,703 0.83%
Capital Appreciation Fund.... BarPoint.com 03/29/00 $11,017,201 $ 5,061,026 0.21%
</TABLE>
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 Fund.
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 may be used to compensate Wellington or HIMCO.
The schedule below reflects the rates of compensation paid to HIFSCO
for 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>
71
<PAGE> 72
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
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
solely 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. As of June 30, 2000, the
following revenues were received by HIFSCO:
<TABLE>
<CAPTION>
FRONT-END CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
-------------- -------------------
<S> <C> <C>
HIFSCO $44,195,782 $2,685,041
</TABLE>
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 Rule 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
72
<PAGE> 73
--------------------------------------------------------------------------------
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. For Class C shares, some or
the entire fee may be re-allocated to broker-dealers for distribution
and/or shareholder account services. Under the Class C Plan, the Fund
pays the Distributor 1.00% of the average daily net 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. 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. The Hartford has 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 Bond 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.
Amounts incurred which exceed the above limits are deducted from
expenses and are reported as expense waivers and reimbursements on the
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.
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 fees expense offset.
73
<PAGE> 74
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
4. AFFILIATE HOLDINGS:
a) As of June 30, 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.................................... 700,000 100,000 100,000 100,000
Global Technology Fund................................ 700,000 100,000 100,000 100,000
Growth and Income Fund................................ -- -- -- 30,585
High Yield Fund....................................... 800,120 113,009 113,022 114,866
Bond Income Strategy Fund............................. -- 328,117 1,031 223,271
</TABLE>
5. INVESTMENT TRANSACTIONS:
For the year ended June 30, 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.......................................... $ 32,810,978 $ 3,599,021
Global Technology Fund...................................... 47,773,206 6,423,569
Small Company Fund.......................................... 382,422,384 263,674,769
Capital Appreciation Fund................................... 2,378,220,852 1,757,067,629
MidCap Fund................................................. 509,398,184 281,854,982
International Opportunities Fund............................ 147,807,526 95,142,509
Global Leaders Fund......................................... 820,252,376 581,879,423
Stock Fund.................................................. 826,030,545 376,649,764
Growth and Income Fund...................................... 174,996,134 63,949,926
Dividend and Growth Fund.................................... 174,730,483 149,845,154
Advisers Fund............................................... 550,136,706 342,489,276
High Yield Fund............................................. 18,667,555 15,110,972
Bond Income Strategy Fund................................... 75,481,478 102,343,707
</TABLE>
74
<PAGE> 75
--------------------------------------------------------------------------------
6. TAX COST AND UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:
As of June 30, 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
UNREALIZED UNREALIZED NET UNREALIZED
FUND TAX COST APPRECIATION DEPRECIATION APPRECIATION
---------------------------------------- -------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C>
Global Health Fund...................... $ 31,053,153 $ 4,209,151 $ (200,759) $ 4,008,392
Global Technology Fund.................. 43,621,775 3,973,265 (1,368,196) 2,605,069
Small Company Fund...................... 337,218,122 58,700,283 (22,302,101) 36,398,182
Capital Appreciation Fund............... 2,230,539,875 409,151,545 (250,430,862) 158,720,683
MidCap Fund............................. 489,370,673 76,737,274 (23,566,737) 53,170,537
International Opportunities Fund........ 166,532,987 17,820,904 (7,832,918) 9,987,986
Global Leaders Fund..................... 401,324,676 31,423,153 (10,199,728) 21,223,424
Stock Fund.............................. 1,808,230,068 332,125,556 (140,855,379) 191,270,177
Growth and Income Fund.................. 241,812,971 25,780,908 (16,923,763) 8,857,145
Dividend and Growth Fund................ 434,950,286 57,918,437 (46,020,701) 11,897,736
Advisers Fund........................... 1,737,469,071 217,116,244 (101,648,528) 115,467,716
High Yield Fund......................... 38,060,406 336,581 (1,832,784) (1,496,203)
Bond Income Strategy Fund............... 102,597,858 913,625 (2,106,506) (1,192,881)
</TABLE>
7. CAPITAL SHARE TRANSACTIONS:
The following information is for the six months ended June 30, 2000:
<TABLE>
<CAPTION>
GLOBAL HEALTH FUND GLOBAL TECHNOLOGY FUND SMALL COMPANY FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold........... 1,606,120 $ 16,517,241 2,197,063 $ 21,676,416 3,629,351 $ 76,845,060
Shares issued on
reinvestment of
distributions....... -- -- -- -- 353,020 6,901,527
Shares redeemed....... (10,395) (111,934) (16,954) (174,709) (901,245) (18,587,181)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,595,725 $ 16,405,307 2,180,109 $ 21,501,707 3,081,126 $ 65,159,406
========== ============ ============ ============= ============ =============
</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........... 10,901,056 $364,748,565 5,985,343 $ 119,356,005 4,044,117 $ 59,873,993
Shares issued on
reinvestment of
distributions....... 1,716,426 54,220,154 398,626 8,016,793 22,941 332,641
Shares redeemed....... (2,457,065) (81,180,152) (621,414) (11,911,932) (1,985,490) (29,359,151)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 10,160,417 $337,788,567 5,762,555 $ 115,460,866 2,081,568 $ 30,847,483
========== ============ ============ ============= ============ =============
</TABLE>
75
<PAGE> 76
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL LEADERS FUND STOCK FUND GROWTH AND INCOME FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold........... 7,459,702 $141,896,948 11,410,435 $ 268,237,919 6,207,751 $ 84,044,403
Shares issued on
reinvestment of
distributions....... 51,629 975,314 350,843 8,269,395 87,177 1,191,724
Shares redeemed....... (1,086,508) (20,634,018) (2,642,425) (61,907,332) (629,714) (8,490,183)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 6,424,823 $122,238,244 9,118,853 $ 214,599,982 5,665,214 $ 76,745,944
========== ============ ============ ============= ============ =============
</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........... 2,945,225 $ 48,408,086 9,885,944 $ 168,255,924 643,394 $ 6,086,946
Shares issued on
reinvestment of
distributions....... 130,708 2,158,794 788,472 13,441,435 81,621 765,552
Shares redeemed....... (1,984,714) (32,328,513) (4,101,578) (69,681,868) (339,084) (3,204,105)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,091,219 $ 18,238,367 6,572,838 $ 112,015,491 385,931 $ 3,648,393
========== ============ ============ ============= ============ =============
</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........... 1,561,139 $ 15,545,971 131,741,741 $ 131,741,741
Shares issued on
reinvestment of
distributions....... 106,542 1,055,756 923,292 923,292
Shares redeemed....... (3,765,057) (37,303,399) (136,653,572) (136,653,572)
---------- ------------ ------------ -------------
Net (Decrease)........ (2,097,376) $(20,701,672) (3,988,539) $ (3,988,539)
========== ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
GLOBAL HEALTH FUND GLOBAL TECHNOLOGY FUND SMALL COMPANY FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold........... 504,428 $ 5,267,169 916,650 $ 9,071,610 1,490,904 $ 31,135,689
Shares issued on
reinvestment of
distributions....... -- -- -- -- 154,253 2,924,438
Shares redeemed....... (1,243) (12,825) (2,659) (25,005) (553,547) (11,040,536)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 503,185 $ 5,254,344 913,991 $ 9,046,605 1,091,610 $ 23,019,591
========== ============ ============ ============= ============ =============
</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........... 5,412,362 $177,198,360 2,698,258 $ 52,999,327 619,094 $ 9,140,341
Shares issued on
reinvestment of
distributions....... 1,161,902 35,612,234 178,677 3,527,059 6,919 98,240
Shares redeemed....... (1,018,895) (33,256,118) (239,257) (4,547,727) (219,680) (3,310,829)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 5,555,369 $179,554,476 2,637,678 $ 51,978,659 406,333 $ 5,927,752
========== ============ ============ ============= ============ =============
</TABLE>
76
<PAGE> 77
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL LEADERS FUND STOCK FUND GROWTH AND INCOME FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold........... 2,382,658 $ 44,864,588 5,336,748 $ 122,146,162 1,274,373 $ 16,982,718
Shares issued on
reinvestment of
distributions....... 16,705 311,896 204,992 4,698,241 19,981 269,327
Shares redeemed....... (135,037) (2,552,381) (1,649,964) (37,628,341) (239,010) (3,190,792)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 2,264,326 $ 42,624,103 3,891,776 $ 89,216,062 1,055,344 $ 14,061,253
========== ============ ============ ============= ============ =============
</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........... 769,786 $ 12,503,180 5,668,166 $ 95,307,036 248,815 $ 2,356,331
Shares issued on
reinvestment of
distributions....... 35,750 584,864 478,559 8,066,931 21,149 198,352
Shares redeemed....... (1,250,505) (20,098,376) (3,225,477) (54,117,345) (262,191) (2,494,708)
---------- ------------ ------------ ------------- ------------ -------------
Net (Decrease)
Increase............ (444,969) $ (7,010,332) 2,921,248 $ 49,256,622 7,773 $ 59,975
========== ============ ============ ============= ============ =============
</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........... 350,941 $ 3,469,729 12,088,134 $ 12,088,134
Shares issued on
reinvestment of
distributions....... 48,382 478,138 348,923 348,923
Shares redeemed....... (477,811) (4,732,105) (23,242,045) (23,242,045)
---------- ------------ ------------ -------------
Net (Decrease)........ (78,488) $ (784,238) (10,804,988) $ (10,804,988)
========== ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
GLOBAL HEALTH FUND GLOBAL TECHNOLOGY FUND SMALL COMPANY FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold........... 766,934 $ 7,959,949 1,182,272 $ 11,529,230 2,030,706 $ 42,056,914
Shares issued on
reinvestment of
distributions....... -- -- -- -- 168,340 3,193,245
Shares redeemed....... (22,243) (221,788) (5,168) (53,445) (210,747) (4,255,588)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 744,691 $ 7,738,161 1,177,104 $ 11,475,785 1,988,299 $ 40,994,571
========== ============ ============ ============= ============ =============
</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........... 6,682,592 $219,240,224 3,553,710 $ 69,616,222 1,207,968 $ 17,710,634
Shares issued on
reinvestment of
distributions....... 644,145 19,723,491 207,222 4,092,708 7,091 100,255
Shares redeemed....... (431,226) (13,897,953) (167,013) (3,262,938) (158,717) (2,294,605)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 6,895,511 $225,065,762 3,593,919 $ 70,445,992 1,056,342 $ 15,516,284
========== ============ ============ ============= ============ =============
</TABLE>
77
<PAGE> 78
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL LEADERS FUND STOCK FUND GROWTH AND INCOME FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold........... 4,586,669 $ 86,641,800 7,383,339 $ 169,028,629 2,041,104 $ 27,241,787
Shares issued on
reinvestment of
distributions....... 31,919 595,918 170,710 3,910,622 31,101 419,555
Shares redeemed....... (183,446) (3,466,139) (1,359,622) (30,897,637) (274,974) (3,625,775)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 4,435,142 $ 83,771,579 6,194,427 $ 142,041,614 1,797,231 $ 24,035,567
========== ============ ============ ============= ============ =============
</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........... 1,216,720 $ 19,824,836 6,266,466 $ 106,296,488 463,131 $ 4,379,559
Shares issued on
reinvestment of
distributions....... 18,853 307,871 304,314 5,174,628 25,816 242,208
Shares redeemed....... (482,725) (7,772,153) (2,565,573) (43,366,190) (483,466) (4,562,281)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 752,848 $ 12,360,554 4,005,207 $ 68,104,926 5,481 $ 59,486
========== ============ ============ ============= ============ =============
</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............ 512,353 $ 5,090,048 13,060,704 $ 13,060,704
Shares issued on
reinvestment of
distributions........ 34,098 338,084 185,799 185,799
Shares redeemed........ (915,894) (9,065,617) (14,173,742) (14,173,742)
---------- ------------ ----------- -------------
Net (Decrease)......... (369,443) $ (3,637,485) (927,239) $ (927,239)
========== ============ =========== =============
</TABLE>
<TABLE>
<CAPTION>
GLOBAL HEALTH FUND GLOBAL TECHNOLOGY FUND SMALL COMPANY FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold........... 112,691 $ 1,132,395 99,996 $ 999,954 780,549 $ 17,046,490
Shares issued on
reinvestment of
distributions....... -- -- -- -- 105,417 2,104,129
Shares redeemed....... -- -- -- -- (301,366) (6,397,426)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 112,691 $ 1,132,395 99,996 $ 999,954 584,600 $ 12,753,193
========== ============ ============ ============= ============ =============
</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........... 579,494 $ 19,876,489 1,135,235 $ 22,862,235 618,659 $ 9,226,125
Shares issued on
reinvestment of
distributions....... 121,565 3,920,482 64,956 1,321,204 6,386 93,624
Shares redeemed....... (219,789) (7,441,691) (232,366) (4,530,639) (597,992) (9,043,914)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 481,270 $ 16,355,280 967,825 $ 19,652,800 27,053 $ 275,835
========== ============ ============ ============= ============ =============
</TABLE>
78
<PAGE> 79
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL LEADERS FUND STOCK FUND GROWTH AND INCOME FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold........... 273,589 $ 5,175,267 86,573 $ 2,004,699 1,383 $ 19,125
Shares issued on
reinvestment of
distributions....... 2,113 40,282 11,935 286,320 281 3,879
Shares redeemed....... (73,767) (1,407,896) (9,698) (234,919) (1,114) (15,402)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 201,935 $ 3,807,653 88,810 $ 2,056,100 550 $ 7,602
========== ============ ============ ============= ============ =============
</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........... 158,994 $ 2,660,404 283,417 $ 4,893,056 46,583 $ 435,845
Shares issued on
reinvestment of
distributions....... 12,619 209,890 70,675 1,217,068 9,998 94,076
Shares redeemed....... (285,254) (4,685,562) (497,184) (8,463,148) (49,073) (467,496)
---------- ------------ ------------ ------------- ------------ -------------
Net (Decrease)
Increase............ (113,641) $ (1,815,268) (143,092) $ (2,353,024) 7,508 $ 62,425
========== ============ ============ ============= ============ =============
</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........... 143,969 $ 1,435,911 14,696,109 $ 14,696,109
Shares issued on
reinvestment of
distributions....... 85,853 857,230 277,810 277,810
Shares redeemed....... (252,184) (2,514,560) (10,192,224) (10,192,224)
---------- ------------ ------------ -------------
Net (Decrease)
Increase............ (22,362) $ (221,419) 4,781,695 $ 4,781,695
========== ============ ============ =============
</TABLE>
The following information is for the year ended December 31, 1999:
<TABLE>
<CAPTION>
CAPITAL
SMALL COMPANY FUND APPRECIATION FUND MIDCAP FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold........... 3,760,588 $ 61,444,712 17,132,657 $ 429,550,559 4,944,632 $ 72,887,120
Shares issued on
reinvestment of
distributions....... 303,001 5,141,928 1,500,335 38,948,633 194,216 2,854,626
Shares redeemed....... (1,539,996) (23,713,789) (11,359,493) (274,058,361) (465,538) (6,457,213)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 2,523,593 $ 42,872,851 7,273,499 $ 194,440,831 4,673,310 $ 69,284,533
========== ============ ============ ============= ============ =============
</TABLE>
79
<PAGE> 80
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
<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........... 2,753,214 $ 37,033,274 4,365,844 $ 65,439,185 20,851,634 $ 449,994,973
Shares issued on
reinvestment of
distributions....... 244,037 3,309,439 21,470 324,914 526,097 11,447,827
Shares redeemed....... (1,587,489) (21,241,636) (125,375) (1,868,657) (3,145,626) (68,288,862)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,409,762 $ 19,101,077 4,261,939 $ 63,895,442 18,232,105 $ 393,153,938
========== ============ ============ ============= ============ =============
</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 A
Shares sold........... 4,727,628 $ 59,180,028 5,320,164 $ 89,834,374 23,551,776 $ 384,202,292
Shares issued on
reinvestment of
distributions....... 32,196 401,479 417,081 6,939,042 1,195,139 19,491,912
Shares redeemed....... (281,891) (3,523,181) (2,352,256) (39,655,926) (4,159,552) (68,210,726)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 4,477,933 $ 56,058,326 3,384,989 $ 57,117,490 20,587,363 $ 335,483,478
========== ============ ============ ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD FUND BOND INCOME STRATEGY FUND MONEY MARKET FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold........... 1,125,938 $ 11,343,018 5,113,032 $ 52,408,089 272,100,330 $ 272,100,330
Shares issued on
reinvestment of
distributions....... 103,149 1,026,544 278,056 2,845,516 1,715,898 1,715,898
Shares redeemed....... (276,835) (2,739,363) (4,001,435) (40,688,692) (258,577,492) (258,577,492)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 952,252 $ 9,630,199 1,389,653 $ 14,564,913 15,238,736 $ 15,238,736
========== ============ ============ ============= ============ =============
</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 B
Shares sold........... 1,369,679 $ 21,996,970 5,486,383 $ 137,531,439 2,256,776 $ 33,109,904
Shares issued on
reinvestment of
distributions....... 149,956 2,483,264 1,125,768 28,526,980 81,856 1,187,643
Shares redeemed....... (248,006) (3,698,440) (2,686,297) (61,871,174) (158,315) (2,277,155)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,271,629 $ 20,781,794 3,925,854 $ 104,187,245 2,180,317 $ 32,020,392
========== ============ ============ ============= ============ =============
</TABLE>
80
<PAGE> 81
--------------------------------------------------------------------------------
<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........... 574,658 $ 7,647,789 1,324,892 $ 19,897,765 11,838,413 $ 249,542,118
Shares issued on
reinvestment of
distributions....... 84,354 1,112,399 5,948 89,328 342,909 7,286,837
Shares redeemed....... (157,042) (2,011,118) (33,054) (497,844) (1,699,047) (36,059,271)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 501,970 $ 6,749,070 1,297,786 $ 19,489,249 10,482,275 $ 220,769,684
========== ============ ============ ============= ============ =============
</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........... 1,245,828 $ 15,412,853 1,876,535 $ 31,365,499 19,762,562 $ 319,268,158
Shares issued on
reinvestment of
distributions....... 9,109 112,585 166,646 2,745,631 790,072 12,760,975
Shares redeemed....... (64,745) (813,289) (1,315,125) (21,930,726) (2,885,720) (46,756,194)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,190,192 $ 14,712,149 728,056 $ 12,180,404 17,666,914 $ 285,272,939
========== ============ ============ ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD FUND BOND INCOME STRATEGY FUND MONEY MARKET FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold........... 682,871 $ 6,833,458 1,541,126 $ 15,918,417 38,057,968 $ 38,057,968
Shares issued on
reinvestment of
distributions....... 23,655 234,662 79,765 812,776 663,634 663,634
Shares redeemed....... (172,326) (1,711,605) (1,018,256) (10,428,971) (24,895,599) (24,895,599)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 534,200 $ 5,356,515 602,635 $ 6,302,222 13,826,003 $ 13,826,003
========== ============ ============ ============= ============ =============
</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........... 2,060,942 $ 30,851,414 7,560,679 $ 157,604,569 2,840,054 $ 41,227,293
Shares issued on
reinvestment of
distributions....... 90,138 1,492,691 283,934 7,186,383 67,209 974,487
Shares redeemed....... (455,873) (5,257,513) (2,186,627) (26,455,935) (233,253) (2,824,503)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,695,207 $ 27,086,592 5,657,986 $ 138,335,017 2,674,010 $ 39,377,277
========== ============ ============ ============= ============ =============
</TABLE>
81
<PAGE> 82
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
<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........... 2,306,225 $ 29,954,252 2,319,757 $ 35,679,872 17,711,133 $ 305,194,693
Shares issued on
reinvestment of
distributions....... 45,938 609,023 7,880 118,665 207,044 4,399,676
Shares redeemed....... (1,566,374) (20,265,450) (31,067) (478,126) (5,752,627) (67,877,982)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 785,789 $ 10,297,825 2,296,570 $ 35,320,411 12,165,550 $ 241,716,387
========== ============ ============ ============= ============ =============
</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........... 2,347,004 $ 28,680,724 3,555,785 $ 49,109,987 29,104,382 $ 384,854,870
Shares issued on
reinvestment of
distributions....... 13,060 161,417 52,183 859,191 427,920 6,978,120
Shares redeemed....... (530,873) (6,104,084) (1,507,127) (16,732,056) (12,322,395) (139,084,944)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,829,191 $ 22,738,057 2,100,841 $ 33,237,122 17,209,907 $ 252,748,046
========== ============ ============ ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD FUND BOND INCOME STRATEGY FUND MONEY MARKET FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold........... 2,788,222 $ 27,549,111 3,004,947 $ 30,503,048 21,617,714 $ 21,617,714
Shares issued on
reinvestment of
distributions....... 37,104 368,399 53,721 545,179 182,163 182,163
Shares redeemed....... (2,170,050) (21,288,665) (1,721,039) (17,363,114) (13,099,122) (13,099,122)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 655,276 $ 6,628,845 1,337,629 $ 13,685,113 8,700,755 $ 8,700,755
========== ============ ============ ============= ============ =============
</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 Y
Shares sold........... 1,105,654 $ 18,224,158 834,468 $ 22,250,544 826,147 $ 12,004,963
Shares issued on
reinvestment of
distributions....... 113,860 1,965,221 117,431 3,099,008 34,177 506,426
Shares redeemed....... (288,098) (4,306,860) (288,266) (7,246,175) (160,502) (2,320,795)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 931,416 $ 15,882,519 663,633 $ 18,103,377 699,822 $ 10,190,594
========== ============ ============ ============= ============ =============
</TABLE>
82
<PAGE> 83
--------------------------------------------------------------------------------
<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........... 934,516 $ 12,264,296 258,999 $ 3,774,659 1,194,960 $ 26,955,705
Shares issued on
reinvestment of
distributions....... 110,289 1,513,560 1,414 21,340 14,304 315,839
Shares redeemed....... (319,867) (4,199,859) (54,462) (766,792) (309,807) (6,626,405)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 724,938 $ 9,577,997 205,951 $ 3,029,207 899,457 $ 20,645,139
========== ============ ============ ============= ============ =============
</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........... 1,959 $ 26,413 613,422 $ 10,405,590 722,914 $ 11,856,528
Shares issued on
reinvestment of
distributions....... 270 3,385 45,713 764,949 143,674 2,358,739
Shares redeemed....... (1,184) (15,159) (290,783) (4,967,804) (558,143) (9,261,313)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 1,045 $ 14,639 368,352 $ 6,202,735 308,445 $ 4,953,954
========== ============ ============ ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD FUND BOND INCOME STRATEGY FUND MONEY MARKET FUND
------------------------- ---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold........... 248,643 $ 2,536,732 2,414,390 $ 24,739,714 18,583,186 $ 18,583,186
Shares issued on
reinvestment of
distributions....... 17,526 175,285 109,446 1,119,836 385,914 385,914
Shares redeemed....... (131,314) (1,320,042) (712,868) (7,402,779) (15,336,984) (15,336,984)
---------- ------------ ------------ ------------- ------------ -------------
Net Increase.......... 134,855 $ 1,391,975 1,810,968 $ 18,456,771 3,632,116 $ 3,632,116
========== ============ ============ ============= ============ =============
</TABLE>
8. CAPITAL LOSS CARRYOVER:
At December 31, 1999 (tax year-end), the following Funds had capital loss
forwards for U.S. federal tax purposes of:
<TABLE>
<CAPTION>
YEAR OF
FUND AMOUNT EXPIRATION
------------------------------------------------------------ ---------- ----------
<S> <C> <C>
High Yield Fund............................................. $ 151,377 2007
Bond Income Strategy Fund................................... 1,559,112 2007
</TABLE>
9. 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 June 30, 2000, the Funds did not have any
borrowings under these facilities.
83
<PAGE> 84
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
10. 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>
84
<PAGE> 85
(This page intentionally left blank)
85
<PAGE> 86
THE HARTFORD MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- SELECTED PER-SHARE DATA (a) --
---------------------------------------------------------------------------------------------------
NET REALIZED DISTRIBUTIONS
NET ASSET NET AND TOTAL DIVIDENDS FROM
VALUE AT INVESTMENT UNREALIZED FROM FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME GAIN 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 June 30,
2000 (Unaudited)
Class A.................. $10.00 $ -- $ 1.97 $ 1.97 $ -- $ -- $ --
Class B.................. 10.00 (0.01) 1.96 1.95 -- -- --
Class C.................. 10.00 (0.01) 1.96 1.95 -- -- --
Class Y.................. 10.00 0.01 1.96 1.97 -- -- --
THE HARTFORD GLOBAL
TECHNOLOGY FUND
From inception May 1,
2000, through June 30,
2000 (Unaudited)
Class A.................. 10.00 (0.01) 0.57 0.56 -- -- --
Class B.................. 10.00 (0.02) 0.57 0.55 -- -- --
Class C.................. 10.00 (0.02) 0.57 0.55 -- -- --
Class Y.................. 10.00 (0.01) 0.58 0.57 -- -- --
THE HARTFORD SMALL COMPANY
FUND
For the Six Months Ended
June 30, 2000
(Unaudited)
Class A.................. 20.48 0.05 0.66 0.71 -- (0.89) --
Class B.................. 19.96 0.01 0.61 0.62 -- (0.89) --
Class C.................. 19.97 -- 0.62 0.62 -- (0.89) --
Class Y.................. 20.84 0.05 0.74 0.79 -- (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 Six Months Ended
June 30, 2000
(Unaudited)
Class A.................. 31.72 0.01 2.28 2.29 -- (1.66) --
Class B.................. 30.92 (0.04) 2.16 2.12 -- (1.66) --
Class C.................. 30.89 (0.07) 2.19 2.12 -- (1.66) --
Class Y.................. 32.27 0.03 2.39 2.42 -- (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 share outstanding
throughout the indicated period.
(b) Annualized.
(c) Does not reflect the impact of sales charges.
(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 12).
The accompanying notes are an integral part of these financial statements.
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>
$ -- $ 1.97 $11.97 19.82% $ 19,095 1.85%(b)
-- 1.95 11.95 19.62 6,011 2.69(b)
-- 1.95 11.95 19.62 8,901 2.62(b)
-- 1.97 11.97 19.92 1,349 1.31(b)
-- 0.56 10.56 3.83 23,019 1.83(b)
-- 0.55 10.55 3.74 9,634 2.61(b)
-- 0.55 10.55 3.74 12,406 2.57(b)
-- 0.57 10.57 3.93 1,055 1.30(b)
(0.89) (0.18) 20.30 3.63 170,961 1.50(b)
(0.89) (0.27) 19.69 3.27 74,144 2.16(b)
(0.89) (0.27) 19.70 3.27 76,469 2.16(b)
(0.89) (0.10) 20.74 3.96 51,474 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) 0.63 32.35 7.36 1,142,194 1.33(b)
(1.66) 0.46 31.38 7.00 751,986 1.99(b)
(1.66) 0.46 31.35 7.00 410,493 2.00(b)
(1.66) 0.76 33.03 7.64 82,096 0.81(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) (0.07)%(b) 19.89%
2.35(b) (0.49)(b) --
2.35(b) (0.58)(b) --
1.20(b) 0.49(b) --
1.65(b) (0.60)(b) 26.85
2.35(b) (1.02)(b) --
2.35(b) (1.03)(b) --
1.20(b) (0.38)(b) --
1.45(b) (0.87)(b) 91.06
2.15(b) (1.57)(b) --
2.15(b) (1.57)(b) --
0.96(b) (0.38)(b) --
1.45 (0.92) 176.74
2.15 (1.62) --
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) --
1.28(b) (0.41)(b) 89.29
1.99(b) (1.12)(b) --
2.00(b) (1.13)(b) --
0.81(b) 0.07(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>
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 MIDCAP FUND
For the Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... $17.78 $(0.03) $ 3.55 $ 3.52 $ -- $(0.70) $ --
Class B..................... 17.54 (0.05) 3.43 3.38 -- (0.70) --
Class C..................... 17.53 (0.07) 3.46 3.39 -- (0.70) --
Class Y..................... 17.94 (0.01) 3.61 3.60 -- (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 Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... 15.43 0.01 (0.78) (0.77) (0.01) (0.05) --
Class B..................... 15.17 (0.05) (0.76) (0.81) -- (0.05) --
Class C..................... 15.10 0.03 (0.84) (0.81) -- (0.05) --
Class Y..................... 15.56 0.02 (0.75) (0.73) (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 Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... 18.56 0.03 0.55 0.58 -- (0.09) --
Class B..................... 18.40 -- 0.51 0.51 -- (0.09) --
Class C..................... 18.40 -- 0.51 0.51 -- (0.09) --
Class Y..................... 18.68 0.04 0.58 0.62 -- (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 share outstanding
throughout the indicated period.
(b) Annualized.
(c) Does not reflect the impact of sales charges.
(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 12).
The accompanying notes are an integral part of these financial statements.
88
<PAGE> 89
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
-----------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSET NET ASSETS TO AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS OF PERIOD RETURN(c) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- --------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.70) $ 2.82 $20.60 19.90% $ 255,623 1.49%(b)
(0.70) 2.68 20.22 19.44 111,343 2.16(b)
(0.70) 2.69 20.22 19.44 128,412 2.15(b)
(0.70) 2.90 20.84 20.17 41,071 0.97(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) (0.83) 14.60 (4.96) 90,288 1.59(b)
(0.05) (0.86) 14.31 (5.32) 27,354 2.28(b)
(0.05) (0.86) 14.24 (5.33) 27,793 2.26(b)
(0.06) (0.79) 14.77 (4.71) 24,452 1.05(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) 0.49 19.05 3.15 209,163 1.53(b)
(0.09) 0.42 18.82 2.79 67,706 2.21(b)
(0.09) 0.42 18.82 2.79 127,541 2.19(b)
(0.09) 0.53 19.21 3.34 8,433 1.00(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>
1.44%(b) (0.88)%(b) 76.30%
2.15(b) (1.60)(b) --
2.15(b) (1.59)(b) --
0.97(b) (0.41)(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) --
1.54(b) 0.81(b) 73.77
2.28(b) 0.07(b) --
2.26(b) 0.09(b) --
1.05(b) 1.30(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) 0.30(b) 221.04
2.21(b) (0.44)(b) --
2.19(b) (0.41)(b) --
1.00(b) 0.78(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>
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 STOCK FUND
For the Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... $23.64 $(0.01) $ 0.38 $ 0.37 $ -- $(0.21) $ --
Class B..................... 23.06 (0.07) 0.36 0.29 -- (0.21) --
Class C..................... 23.05 (0.05) 0.34 0.29 -- (0.21) --
Class Y..................... 23.99 0.03 0.42 0.45 -- (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 Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... 13.72 (0.01) 0.16 0.15 -- (0.11) --
Class B..................... 13.58 (0.03) 0.13 0.10 -- (0.11) --
Class C..................... 13.58 (0.03) 0.14 0.11 -- (0.11) --
Class Y..................... 13.83 0.02 0.16 0.18 -- (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 Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... 16.85 0.07 (0.38) (0.31) (0.06) (0.08) --
Class B..................... 16.69 0.01 (0.36) (0.35) (0.01) (0.08) --
Class C..................... 16.67 0.04 (0.39) (0.35) (0.02) (0.08) --
Class Y..................... 16.96 0.12 (0.38) (0.26) (0.09) (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 share outstanding
throughout the indicated period.
(b) Annualized.
(c) Does not reflect the impact of sales charges.
(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 12).
The accompanying notes are an integral part of these financial statements.
90
<PAGE> 91
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
-----------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSET NET ASSETS TO AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS OF PERIOD RETURN(c) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- --------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.21) $ 0.16 $23.80 1.57% $ 975,250 1.34%(b)
(0.21) 0.08 23.14 1.26 553,938 2.00(b)
(0.21) 0.08 23.13 1.26 449,845 2.00(b)
(0.21) 0.24 24.23 1.88 33,481 0.81(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) 0.04 13.76 1.11 152,991 1.43(b)
(0.11) (0.01) 13.57 0.75 34,678 2.11(b)
(0.11) -- 13.58 0.82 53,653 2.09(b)
(0.11) 0.07 13.90 1.31 490 0.94(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)
(0.14) (0.45) 16.40 (1.82) 253,583 1.37(b)
(0.09) (0.44) 16.25 (2.10) 111,481 2.04(b)
(0.10) (0.45) 16.22 (2.12) 53,925 2.04(b)
(0.17) (0.43) 16.53 (1.56) 21,184 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>
1.29%(b) (0.15)%(b) 22.57%
2.00(b) (0.86)(b) --
2.00(b) (0.86)(b) --
0.81(b) 0.33(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) (0.14)(b) 37.85
2.11(b) (0.87)(b) --
2.09(b) (0.85)(b) --
0.94(b) 0.30(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) --
1.32(b) 1.02(b) 36.32
2.04(b) 0.30(b) --
2.04(b) 0.30(b) --
0.85(b) 1.49(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>
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 ADVISERS FUND
For the Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... $17.02 $ 0.14 $ 0.20 $ 0.34 $(0.14) $(0.16) $ --
Class B..................... 16.87 0.08 0.19 0.27 (0.08) (0.16) --
Class C..................... 17.02 0.08 0.19 0.27 (0.08) (0.16) --
Class Y..................... 17.16 0.20 0.18 0.38 (0.17) (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 Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... 9.75 0.41 (0.45) (0.04) (0.40) -- --
Class B..................... 9.74 0.39 (0.46) (0.07) (0.37) -- --
Class C..................... 9.74 0.38 (0.45) (0.07) (0.37) -- --
Class Y..................... 9.78 0.43 (0.46) (0.03) (0.41) -- --
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 Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... 9.93 0.30 0.13 0.43 (0.30) -- --
Class B..................... 9.90 0.25 0.13 0.38 (0.26) -- --
Class C..................... 9.93 0.25 0.14 0.39 (0.26) -- --
Class Y..................... 9.99 0.31 0.14 0.45 (0.31) -- --
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 share outstanding
throughout the indicated period.
(b) Annualized.
(c) Does not reflect the impact of sales charges.
(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 12).
The accompanying notes are an integral part of these financial statements.
92
<PAGE> 93
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
-----------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSET NET ASSETS TO AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS OF PERIOD RETURN(c) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- --------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.30) $ 0.04 $17.06 2.01% $ 806,700 1.27%(b)
(0.24) 0.03 16.90 1.63 605,616 1.93(b)
(0.24) 0.03 17.05 1.62 392,493 1.93(b)
(0.33) 0.05 17.21 2.20 65,887 0.76(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)
(0.40) (0.44) 9.31 (0.37) 20,267 1.38(b)
(0.37) (0.44) 9.30 (0.72) 7,171 2.05(b)
(0.37) (0.44) 9.30 (0.72) 8,232 2.04(b)
(0.41) (0.44) 9.34 (0.22) 2,281 0.86(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)
(0.30) 0.13 10.06 4.38 36,965 1.29(b)
(0.26) 0.12 10.02 3.94 20,929 1.96(b)
(0.26) 0.13 10.06 4.02 14,657 1.94(b)
(0.31) 0.14 10.13 4.61 28,223 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>
1.22%(b) 1.73%(b) 21.28%
1.93(b) 1.02(b) --
1.93(b) 1.02(b) --
0.76(b) 2.20(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) 8.65(b) 44.13
2.05(b) 7.94(b) --
2.04(b) 7.94(b) --
0.86(b) 9.12(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) 5.70(b) 78.81
1.95(b) 4.99(b) --
1.94(b) 4.99(b) --
0.77(b) 6.17(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>
93
<PAGE> 94
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 Six Months Ended
June 30, 2000 (Unaudited)
Class A..................... $ 1.00 $ 0.03 $ -- $0.03 $(0.03) $ -- $ --
Class B..................... 1.00 0.02 -- 0.02 (0.02) -- --
Class C..................... 1.00 0.02 -- 0.02 (0.02) -- --
Class Y..................... 1.00 0.03 -- 0.03 (0.03) -- --
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 B..................... 1.00 0.01 -- 0.01 (0.01) -- --
Class Y..................... 1.00 0.05 -- 0.05 (0.05) -- --
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 share outstanding
throughout the indicated period.
(b) Annualized.
(c) Does not reflect the impact of sales charges.
(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 12).
The accompanying notes are an integral part of these financial statements.
94
<PAGE> 95
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
-----------------------------------------------------------------------------------------------
RATIO OF
EXPENSES
NET ASSET NET ASSETS TO AVERAGE
NET INCREASE VALUE AT AT END OF NET ASSETS
TOTAL (DECREASE) IN END TOTAL PERIOD BEFORE WAIVERS AND
DISTRIBUTIONS NET ASSETS OF PERIOD RETURN(c) (IN THOUSANDS) REIMBURSEMENTS
------------- ------------- --------- --------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.03) $ -- $ 1.00 2.58% $ 40,674 1.21%(b)
(0.02) -- 1.00 2.22 14,957 1.85(b)
(0.02) -- 1.00 2.22 8,977 1.85(b)
(0.03) -- 1.00 2.81 13,734 0.63(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
(0.01) -- 1.00 1.45(d) 4,449 3.63(b)
(0.05) -- 1.00 5.23 2,638 0.82
(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) 5.17%(b) N/A%
1.70(b) 4.46(b) --
1.70(b) 4.46(b) --
0.55(b) 5.62(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
1.70(b) 3.92(b) --
0.55 5.13 --
1.00(b) 4.49(b) N/A
0.55(b) 4.56(b) --
</TABLE>
95
