<PAGE> 1
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THE
HARTFORD
[GRAPHIC OF STAG]
- ----------------------
1999
ANNUAL REPORT
- Manager Discussions
- Financials
[GRAPHIC OF STAG]
<PAGE> 2
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THE HARTFORD
SMALL COMPANY FUND
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Portfolio Manager
[Steve Angeli photo]
Vice President
Wellington Management Company, LLP
Q. How Did The Fund Perform?
The Hartford Small Company Fund returned 35.9% in the fourth quarter bringing
the return for the 1-Year period ending December 31, 1999 to 65.7% versus a
return of 33.4% for the Lipper Small Cap MF Average over the same period.
Q. Why Did The Fund Perform This Way?
Led by the fastest growth companies, the Russell 2000 Index outperformed the
S&P 500 during the year. In fact, 1999 marks the first time in five years
that small cap stocks have outperformed large cap stocks. For the one-year
period ended December 31, 1999, the Russell 2000 Index advanced 21.3% while
the S&P 500 increased 21.0%. This type of relative outperformance was long
overdue and makes sense as the valuations for small cap stocks are very
attractive and the earnings prospects remain strong. During the year,
relative returns were positively impacted by strong stock selection within
the technology and healthcare sectors.
Q. What Is Your Outlook For 2000?
Supported by powerful consumer spending trends, the US economy should post
relatively strong growth in 2000. Labor markets will be tight, but inflation
will remain benign due to above-average productivity and moderating oil
prices. In an environment of solid economic growth and stable inflation,
smaller companies should outperform due to their strong earnings prospects
and higher growth potential. However, substantially higher rates could lead
to multiple compression, as valuations of small company stocks are sensitive
to changes in interest rates. While Technology is unlikely to lead the
market after last year's stellar performance, we remain very bullish on the
sector's long-term prospects.
Performance Overview
7/22/96 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
SMALL COMPANY FUND RUSSELL 2000
9,450 starting value 10,000 starting value
10,915 10,934
10,783 10,503
10,057 10,909
11,866 12,677
13,824 14,564
12,862 14,076
14,343 15,490
14,027 14,767
11,112 11,792
14,027 13,715
14,465 12,971
17,250 14,988
17,324 14,041
24,907 16,630
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Small Co "A" 65.66% 30.34% 56.55% 28.22%
Small Co "B" 64.46% 29.46% 59.46% 29.00%
Small Co "C"* 64.58% 29.52% 61.93% 29.14%
Russell 2000 21.25% 15.91%
</TABLE>
The chart represents a hypothetical investment in the 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 $24,335 on 12/31/99 ($23,605 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 $24,371 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 3
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THE HARTFORD
CAPITAL APPRECIATION FUND
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Portfolio Manager
[Saul J. Pannell photo]
Saul J. Pannell, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
Q. How Did The Fund Perform?
For the 1-year period ended December 31,1999, The Hartford Capital Appreciation
Fund outpaced the Lipper Capital Appreciation MF Average, 66.7% versus 41.1%,
respectively.
Q. Why Did The Fund Perform This Way?
The market continued to broaden, particularly relative to market capitalization.
Smaller companies' relative price-to-earnings ratios remain below the overall
market's, while relative growth prospects are probably better. The historic
disparity in both relative performance and valuations should lead to a further
broadening of the market. World economic growth appears stronger than it has
been for some time. The leverage in the cyclical sectors of the economy should
be substantial, and we suspect that existing earnings estimates for these stocks
will have to be revised upward as the year progresses. The technology sector was
the star performer for the year as Internet mania infected all sectors of the
market. The Fund's performance was again helped by a diverse group of companies,
most of these were in the information technology sector.
Q. What Is Your Outlook For 2000?
Higher interest rates and obvious speculation have increased the overall level
of market risk. Flows into equity funds, however, have remained strong, so the
current uptrend may continue for a while longer. 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. This approach, if
executed well, should provide positive absolute and relative results over a
reasonable time frame.
Performance Overview
7/22/96 -12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
SMALL COMPANY FUND RUSSELL 2000
9,450 starting value 10,000 starting value
11,302 10,897
13,017 11,805
13,368 12,122
17,633 14,236
21,534 15,301
20,189 15,741
22,309 17,935
21,265 18,529
16,600 16,689
20,847 20,240
22,858 21,248
26,492 22,745
25,409 21,324
36,791 24,495
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Cap Ap "A" 66.76% 45.97% 57.59% 43.60%
Cap Ap "B" 65.58% 44.99% 60.58% 44.64%
Cap Ap "C"* 65.44% 44.98% 62.79% 44.56%
S&P 500 21.04% 29.71%
</TABLE>
The chart represents a hypothetical investment in the 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 $35.942 on 12/31/99 ($34,864 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 $35,936 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 4
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THE HARTFORD
MIDCAP FUND
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Portfolio Manager
[Phillip H. Perelmuter photo]
Phillip H. Perelmuter
Senior Vice President and Partner
Wellington Management Company, LLP
Q. How Did The Fund Perform?
The Hartford MidCap Fund returned 50.2% for the 12-month period ending December
31, 1999 versus the Lipper Mid Cap Core Average return of 38.3% over the same
time period. Since inception, the Fund has returned 35.9% versus a return of
28.9% for its Lipper peer group.
Q. Why Did The Fund Perform This Way?
In 1999, mid-cap stocks outperformed large cap stocks by just under 2%.
Historically, mid-cap stocks have outperformed large cap stocks during times of
accelerating economic growth. Within the mid-cap universe, the best performing
sectors were technology and biotechnology. The Fund's performance benefited from
good participation in the better performing sectors such as technology and from
an underweight position in poorer performing sectors such as finance.
Q. What Is Your Outlook For 2000?
We believe the outlook for the types of mid-cap companies we seek is positive.
These high quality, market-leading companies should fare relatively well during
a period of economic growth. The relative valuations of the stocks are near
10-year lows. The Fund should continue to fare well given our commitment and
focus on maintaining the investment strategies used thus far.
Performance Overview
12/30/97 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
MIDCAP FUND S&P 400
9,450 starting value 10,000 starting value
9,441 10,074
10,443 11,184
10,849 10,945
9,111 9,361
11,625 12,000
12,344 11,235
14,361 12,824
13,454 11,748
18,471 13,767
RETURNS (Inception 12/30/97)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
MidCap "A" 50.17% 35.85% 41.91% 32.07%
MidCap "B" 49.10% 34.93% 44.10% 33.81%
MidCap "C"* 49.22% 34.97% 46.73% 34.29%
S&P 400 14.73% 17.31%
</TABLE>
The chart represents a hypothetical investment in the 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 $18.220 on 12/31/99 ($17,673 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 $18.232 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 5
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THE HARTFORD
INTERNATIONAL OPPORTUNITIES FUND
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Portfolio Manager
[Trond Skramstad photo]
Trond Skramstad
Senior Vice President and Partner
Wellington Management Company, LLP
Q. How Did The Fund Perform?
In the fourth quarter, the Hartford International Opportunities Fund returned
22.3% bringing the return for the 1-Year period ending December 31, 1999 to
39.1% versus a return of 40.8% for the Lipper International MF Average over the
same time period.
Q. Why Did The Fund Perform This Way?
Global equities delivered extraordinary performance during the year, despite
rising interest rates. The MSCI EAFE Index led the way with strong European
returns. Within Europe, Finland rose a phenomenal 153.3%, while Germany was up a
more modest though still strong 20.5%. The UK rose 12.4% for the year.
Elsewhere, Japan was up 61.8% on strength in technology and telecom issues.
Emerging markets also advanced, led by the Pacific Rim. We continue to favor
countries within the Euro area and increased our exposure to these countries
over the course of the year. Most of the Euro area countries stand to benefit
from economic growth that we expect will surprise on the upside. In Japan, we
trimmed our position due to the lack of any recent initiatives by the government
to further accelerate the process of change of the economy.
We added selectively to our emerging markets exposure, as these markets should
continue to perform well in an environment of improving global growth.
Q. What Is Your Outlook For 2000?
We will continue to focus on areas that have demonstrated growth or growth
acceleration. Continental Europe remains the Fund's largest regional exposure,
within which we continue to favor France and Germany. While we continue to like
the longer-term outlook for continental Europe, for both cyclical and secular
reasons, we believe that emerging markets will benefit the most from an economic
upturn and have increased our exposure to selected markets in this area. In
addition to favoring the faster growing economies of the world, we also favor
some of the faster growing sectors such as information technology,
telecommunications, and the internet, which are experiencing strong secular
growth trends around the globe. In Japan, we have adopted a cautious stance as
we await further evidence of corporate restructuring and continued economic
recovery.
Performance Overview
7/22/96 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
INTERNATIONAL OPPORTUNITIES EAFE GDP
9,450 starting value 10,000 starting value
9,658 10,334
10,220 10,582
10,172 10,655
11,162 11,848
11,276 11,961
10,305 11,191
11,620 13,129
11,951 13,642
10,022 11,663
11,595 14,182
12,287 14,474
12,781 14,983
13,191 15,806
17,073 18,580
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Int'l Opp "A" 39.13% 16.80% 31.48% 14.90%
Int'l Opp "B" 38.11% 16.01% 33.11% 15.40%
Int'l Opp "C"* 37.98% 16.00% 35.60% 15.66%
EAFE GDP** 31.01% 19.71%
</TABLE>
The chart represents a hypothetical investment in the 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 $16,678 on 12/31/99 ($16,178 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 $16,670 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
** The Morgan Stanley Europe Australia Far East GDP - Net index
<PAGE> 6
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THE HARTFORD
GLOBAL LEADERS FUND
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Portfolio Managers
[Rand L. Alexander photo]
Rand L. Alexander, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
[Andrew S. Offit photo]
Andrew S. Offit
Vice President
Wellington Management Company, LLP
Q. How Did The Fund Perform?
The Hartford Global Leaders Fund returned 47.7% for the 12-month period ending
December 31, 1999 versus 36.1% for the Lipper Global Average over the same time
period. Since inception, the Fund has returned 68.7% versus a return of 23.9%
for its Lipper peer group.
Q. Why Did The Fund Perform This Way?
December 31st marked one of the most dramatic stock markets we have seen in some
time. Around the globe, all forces were in sync to help produce stellar returns
in the equity market. There were two important keys to the Fund's performance:
sector allocation (most of the Fund's assets were in the better performing
sectors) and stock selection (we added to the sector returns in all categories).
The Fund remained focused on its themes and sector strategies, and continued to
emphasize growth in both sectors and individual companies.
Q. What Is Your Outlook For 2000?
The market environment continues to be challenging to global investors. The only
cautionary winds are interest rate increases around the world, a trend that we
will closely monitor in the coming months. We have conviction in our company
research and are committed to our sector strategy and will continue to seek to
invest in the best companies in the world. We believe that as long as we
continue to maintain this strategy, the Fund can continue to outperform its
peers.
Performance Overview
9/30/98 - 12/31/99
Growth of a $10,000 Investment in Class A which includes Sales Charge
[LINE CHART]
GLOBAL LEADERS FUND MSCI WORLD
9,450 starting value 10,000 starting value
12,320 12,111
13,176 12,544
13,878 13,143
13,800 12,949
19,252 15,132
RETURNS (Inception 9/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Global Leaders "A" 47.68% 68.74% 39.56% 61.28%
Global Leaders "B" 46.64% 67.59% 41.64% 64.78%
Global Leaders "C"* 46.64% 67.59% 44.17% 65.54%
MSCI World** 24.95% 417.34%
</TABLE>
The chart represents a hypothetical investment in the 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 $19,088 on 12/31/99 ($18,324 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 $19,088 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
** The Morgan Stanley World Index
<PAGE> 7
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THE HARTFORD
STOCK FUND
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Portfolio Manager
[Rand L. Alexander 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 22.3% for the 12-month period ending December
31, 1999. The Fund's return exceeded that of the S&P 500 Index, 21.0%, and
matched the Lipper Large-Cap Core Average, 22.3%. Since inception, the Fund has
returned 29.7% relative to its Lipper peer group average of 22.4% over the same
time period.
Q. Why Did The Fund Perform This Way?
In 1999, large capitalization growth stocks performed well, as did small and
mid-cap growth stocks. Initial public offerings soared to record levels and
takeovers reached new heights. Additionally, the Federal Reserve raised interest
rates three times in an effort to slow down the pace of the US economy. Somewhat
hidden within this euphoria was the fact that once again, only about 30% of the
stocks in the S&P 500 outperformed the index. Strong sectors included:
electronics, communications equipment, metals and minerals, computer software,
oil service and media. The Fund's performance benefited from overweight
positions in semiconductors, communications equipment, computer software, oil
and service and media and underweight positions in banks and food and beverages.
In general, we added value versus the index through both accurate sector
weightings and above average stock selection.
Q. What Is Your Outlook For 2000?
The US economy continues to roll along. Unemployment is at record lows, the
Federal budget is in surplus and the political arena seems benign. The major
economic regions of the World seem to be recovering from the stagnant period of
the last few years. Rising world interest rates could put a damper on further
multiple expansion in many of the market's favorite growth names. Given the
economic outlook and high valuation levels of growth companies, we believe that
a shift to more cyclically oriented stocks at the margin makes sense. We
continue to remain cautiously optimistic about the equity market.
Performance Overview
7/22/96 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
<TABLE>
<CAPTION>
Stock Fund S&P 5000
<S> <C>
$ 9,450 $10,000
$10,178 $10,897
$10,915 $11,805
$11,313 $12,122
$13,267 $14,236
$14,055 $15,301
$14,387 $15,741
$16,522 $17,935
$17,500 $18,529
$15,706 $16,689
$18,895 $20,240
$20,074 $21,248
$21,694 $22,745
$20,187 $21,324
$24,452 $24,495
</TABLE>
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Stock "A" 22.31% 29.65% 15.58% 27.53%
Stock "B" 21.46% 28.74% 16.46% 28.27%
Stock "C"* 21.40% 28.70% 19.19% 28.33%
S&P 500 21.04% 29.71%
</TABLE>
The chart represents a hypothetical investment in the 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 $23,868 on 12/31/99 ($23,153 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 $23,846 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 8
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THE HARTFORD
GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Portfolio Manager
[James A. Rullo photo]
James A. Rullo, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
Q. How Did The Fund Perform?
Over the past year, The Hartford Growth and Income Fund has returned 20.8%, well
ahead of the 13.8% return of the Lipper Growth and Income MF Average.
Q. Why Did The Fund Perform This Way?
Equity markets were very strong around the globe. In the US, the S&P 500 was up
21% and small cap stocks rallied over 21%. As expected, the Federal Reserve
raised rates for a third time during the year, but the market was unfazed. Y2K
concerns proved to be a non-event, as corporations seemed to be extraordinarily
well prepared. The Fed was on hand with extra liquidity if needed, and this may
have played a role in the year-end rally. Once again, technology issues carried
the year. Some of the strongest performing sectors during the year were
communications equipment and software. Our stocks in the technology sector-
Cisco and Motorola contributed to the strong performance of the Fund. Large cap
drug stocks languished towards the end of the year, but the smaller stocks that
we owned in their place did very well. For example, Immunex reported that sales
of their arthritis drug was gaining popularity and sales rose faster than
expected, and Genentech responded positively to the news that majority owner
Roche would be offering more of their shares through a secondary offering.
Q. What Is Your Outlook For 2000?
We expect further Fed tightening and foresee interest rate pressures. However,
it appears that the market still favors technology issues. We will continue to
maintain our position in this sector, but will try to buy some less expensive
hardware makers as we begin the next quarter. We continue to have faith in the
higher yielding sectors like utilities and energy and will maintain our
weighting in these sectors. The consumer stock sector is beginning to look more
attractive and we will look to increase our weighting in this area as
opportunities present themselves.
Performance Overview
4/30/98 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
GROWTH AND INCOME FUND S&P 500
9,450 starting value 10,000 starting value
9,591 10,227
8,829 9,211
10,847 11,171
11,311 11,727
12,145 12,554
11,369 11,770
13,866 13,520
RETURNS (Inception 4/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Grow & Inc "A" 20.80% 21.60% 14.16% 17.55%
Grow & Inc "B 20.00% 20.75% 15.00% 18.63%
Grow & Inc "C"* 19.98% 20.78% 17.78% 20.06%
S&P 500 21.04% 29.71%
</TABLE>
The chart represents a hypothetical investment in the Growth & 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 $13,705 on 12/31/99 ($13,157 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 $13,710 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 9
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THE HARTFORD
DIVIDEND AND GROWTH FUND
- --------------------------------------------------------------------------------
Portfolio Manager
[Laurie A. Gabriel photo]
Laurie A. Gabriel, CFA
Senior Vice President and Partner
Wellington Management Company, LLP
Q. How Did The Fund Perform?
The Hartford Dividend and Growth Fund returned 4.6% for the 12-month period
ending December 31, 1999 versus the Lipper Equity Income Average return of 3.3%
over the same time period. Since inception, the Fund has returned 18.8% versus a
return of 12.7% for its Lipper peer group.
Q. Why Did The Fund Perform This Way?
With the strength in the technology sector, it's not surprising that growth
again outperformed value (Russell 1000 Growth Index total return 25% versus the
Russell 1000 Value Index total return 5%). Our long-term positions within the
Health Care, Finance and Industrial/Commercial sectors were strong contributors
to the Fund's performance.
Q. What Is Your Outlook For 2000?
We will continue to maintain a long-term view on stock selection and sector
representation. In line with our dividend-oriented style, we continue to be
underweighted in the information technology sector. Our stock positions have an
above-average yield and below average P/E and beta. Relative to the market, the
Fund should continue to exhibit these value-oriented characteristics over time.
Performance Overview
7/22/96 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
DIVIDEND AND GROWTH FUND S&P 500
9,450 starting value 10,000 starting value
10,149 10,897
10,894 11,805
11,142 12,122
12,906 14,236
13,768 15,301
14,270 15,741
15,858 17,935
15,671 18,529
14,415 16,689
16,335 20,240
16,325 21,248
17,456 22,745
16,041 21,324
18,079 24,495
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Div & Grow "A" 4.57% 18.76% -1.18% 16.83%
Div & Grow "B" 3.82% 17.91% -1.18% 17.33%
Div & Grow "C"* 3.76% 17.92% 1.72% 17.58%
S&P 500 21.04% 29.71%
</TABLE>
The chart represents a hypothetical investment in the 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 $17,637 on 12/31/99 ($17,108 with a redemption
at the end of the period.)
A $10,000 investment in the fund's class C shares at the Fund's inception on
7/22/96 would have been valued at $17,642 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 10
- --------------------------------------------------------------------------------
THE HARTFORD
ADVISERS FUND
- --------------------------------------------------------------------------------
Portfolio Managers
[Rand L. Alexander photo]
Rand L. Alexander, CFA
Senior Vice President
and Partner
Wellington Management
Company, LLP
[Paul D. Kaplan photo]
Paul D. Kaplan
Senior Vice President and Partner
Wellington Management Company, LLP
Q. How Did The Fund Perform?
The Hartford Advisers Fund returned 12.1% for the 12-month period ending
December 31, 1999 versus the Lipper Flexible Average return of 12.5% over the
same time period. Since inception, the Fund has returned 19.9% versus a return
of 14.1% for its Lipper peer group.
Q. Why Did The Fund Perform This Way?
We have gradually increased our equity exposure in response to favorable
fundamentals; however, we remain cautious to the possible negative effects
resulting from more interest rate hikes. The equity portion of the Fund's
performance benefited from overweight positions in semiconductors,
communications equipment, computer software, oil and service and media and
underweight positions in banks and food and beverages. In general, we added
value versus the index through both accurate sector weightings and above average
stock selection. The bond market provided mixed results in 1999 with the
corporate and mortgage backed sectors leading the way. We continue to maintain
substantial positions in both corporate and mortgage backed bonds, positions
that clearly helped performance during 1999.
Q. What Is Your Outlook For 2000?
For 2000, the critical issue for the direction of interest rates is precisely
the same as it was during 1999, the pace of the US economy. It is likely that
the Fed will continue to pay primary attention to real growth. We do not believe
a radical upward move in the Fed Funds rate is either necessary or desirable and
that a peak in long-term interest rates is not far off. We will likely begin to
slowly add longer bond positions to the portfolio in anticipation to an end to
the current round of Fed tightening. By gradually adjusting the weighting
between stocks, bonds, and cash we will continue to use our expectations of
market developments to produce attractive returns.
Performance Overview
7/22/96 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
Advisers Fund S&P 500 Lehman Govt/Corp
9,450 starting value 10,000 10,000
9,952 10,897 10,192
10,543 11,805 10,504
10,705 12,122 10,413
12,031 14,236 10,792
12,667 15,301 11,170
13,001 15,741 11,529
14,179 17,935 11,704
14,809 18,529 12,009
14,226 16,689 12,604
15,742 20,240 12,621
16,195 21,248 12,470
16,936 22,745 12,334
16,243 21,324 12,400
18,669 24,495 12,349
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Advisers "A" 12.08% 19.87% 5.92% 17.92%
Advisers "B" 11.29% 19.06% 6.92% 18.49%
Advisers "C"* 11.29% 19.03% 9.18% 18.69%
S&P 500 21.04% 29.71%
Lehman G/C -2.15% 6.32%
</TABLE>
The chart represents a hypothetical investment in the 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 $18,238 on 12/31/99 ($17,691 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 $18,221 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 11
- --------------------------------------------------------------------------------
THE HARTFORD
HIGH YIELD FUND
- --------------------------------------------------------------------------------
Portfolio Manager
[Alison D. Granger photo]
Alison D. Granger, CFA
Senior Vice President
The Hartford Investment
Management Company (HIMCO)
Q. How Did The Fund Perform?
The Hartford High Yield Fund commenced operations on September 30, 1998. The
Fund's Class A shares placed in the 58th percentile of its Lipper peer group for
the six months ended December 31, 1999, producing a total return of 3.47% versus
the 4.55% return of the Lipper High Current Yield Fixed Income Fund average.
Q. Why Did The Fund Perform This Way?
* The Fund's high average credit quality contributed to the Fund's
performance as BB rated high yield securities significantly outperformed
the lower-rated B and CCC universe of high yield issues.
* The Fund's overweight of the commodity-related industries, such as oil
exploration and chemicals, provided additional performance at the margin.
Q. What Is Your Outlook For 2000?
The current yield offered by the high yield market today averages 9.75%,
offering income-seeking investors an attractive investment complement to higher
quality fixed income securities or equities. As we enter the new year, we are
emphasizing three themes in the high yield funds. The first theme reflects our
belief that there are opportunities for outperformance in high yield securities
that will benefit from rising global economic growth. The commodity-related
issues we have been emphasizing in the portfolio are reflective of this view.
Secondly, we have overweighted issues of select health care providers to reflect
our view that the worst is behind this segment of the healthcare industry, and
that their securities are attractively valued. Finally, the Fund carries an
underweighted position in securities that could be adversely impacted by rising
interest rates and/or an enthusiastic US consumer.
Performance Overview
9/30/98 - 12/31/99
Growth of a $10,000 Investment in Class A which includes Sales Charge
[LINE CHART]
HIGH YIELD FUND LEHMAN HIGH YIELD
9,550 starting value 10,000 starting value
9,869 10,213
10,138 10,402
10,114 10,438
9,987 10,290
10,692 10,459
RETURNS (Inception 9/30/98)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(1) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
High Yield "A" 3.47% 5.49% -1.19% 1.68%
High Yield "B" 2.79% 4.73% -2.21% 1.56%
High Yield "C" 2.81% 4.75% 0.78% 3.12%
Lehman High Yield 2.41% 19.47%
</TABLE>
The chart represents a hypothetical investment in the 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.
*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
9/30/98 would have been valued at $10,596 on 12/31/99 ($10,172 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 $10,598 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 12
- --------------------------------------------------------------------------------
THE HARTFORD
BOND INCOME STRATEGY FUND
- --------------------------------------------------------------------------------
Portfolio Manager
[Alison D. Granger photo]
Alison D. Granger, CFA
Senior Vice President
The Hartford Investment
Management Company (HIMCO)
Q. How Did The Fund Perform?
The Hartford Bond Income Strategy Fund Class A shares placed in the 68th
percentile of its Lipper peer group for the 12 months ended December 31, 1999,
producing a total return of -2.71% versus the -1.72% return of the Lipper
Corporate Debt "BBB" rated Mutual Fund Universe.
Q. Why Did The Fund Perform This Way?
* The Fund's increased weightings in mortgage passthroughs contributed
positively to its performance relative to the market, as these securities
outperformed the corporate market during the third and fourth quarters.
* The Fund's overweighted position in commodity-related fixed income
securities had a positive impact on Fund performance, as many of these
companies staged a comeback from their 1998 lows.
* The Fund's holdings in short-dated corporate issues acquired during the
height of the market's Y2K concern aided portfolio performance during the
second half of the year when concerns about the transition into the new
year abated.
Q. What Is Your Outlook For 2000?
With the domestic economy firing on all cylinders and the isolated events of
1998's Russian default and last year's Y2K apprehension now behind us, we
believe that the Federal Reserve will tighten more aggressively this year. Our
portfolio positioning as we enter 2000 includes a shorter average maturity than
the market. We will increase our emphasis on the mortgage sector 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 currently
forecast. Among investment grade and high yield corporate issues, we will
continue to emphasize those securities that will benefit from rising global
economic growth, including the commodity-related issues mentioned above. We
underweight most consumer and financial-related issues, as these industries are
likely to experience greater fundamental challenges in a rising rate
environment.
Performance Overview
7/22/96 - 12/31/99
Growth of a $10,000 investment in Class A which includes Sales Charge
[LINE CHART]
BOND INCOME STRATEGY LEHMAN GOVT/CORP
9,550 starting value 10,000 starting value
9,751 10,192
10,097 10,504
10,054 10,413
10,464 10,792
10,865 11,170
11,187 11,529
11,381 11,704
11,618 12,009
12,008 12,604
12,027 12,621
11,878 12,470
11,697 12,334
11,739 12,400
12,250 12,349
RETURNS (Inception 7/22/96)
<TABLE>
<CAPTION>
Non Sales Charge Adjusted Sales Charge Adjusted
------------------------- ---------------------
ANNUALIZED ANNUALIZED
1 YEAR(1) SINCE INCEPT.(1) 1 YEAR(2) SINCE INCEPT.(2)
<S> <C> <C> <C> <C>
Bond "A" -2.71% 6.07% -7.09% 4.66%
Bond "B" -3.30% 5.33% -8.30% 4.55%
Bond "C"* -3.36% 5.31% -5.33% 5.01%
Lehman G/C -2.15% 7.40%
</TABLE>
The chart represents a hypothetical investment in the Bond Income Strategy. 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 $11,957 on 12/31/99 ($11,598 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 $11,952 on 12/31/99 (with a redemption at the
end of the period the value would remain the same because the CDSC period has
expired.)
<PAGE> 13
THE HARTFORD MUTUAL FUNDS, INC.
TABLE
OF
CONTENTS
<TABLE>
<S> <C>
Investment Review 3
The Hartford Mutual Funds, Inc. Financial Statements
Statement of Net Assets as of December 31, 1999:
The Hartford Small Company Fund 14
The Hartford Capital Appreciation Fund 16
The Hartford MidCap Fund 19
The Hartford International Opportunities Fund 21
The Hartford Global Leaders Fund 25
The Hartford Stock Fund 28
The Hartford Growth and Income Fund 30
The Hartford Dividend and Growth Fund 33
The Hartford Advisers Fund 36
The Hartford High Yield Fund 40
The Hartford Bond Income Strategy Fund 45
The Hartford Money Market Fund 50
Statement of Operations for the Year Ended December
31, 1999 52
Statement of Changes in Net Assets for the Year Ended
December 31, 1999 54
Statement of Changes in Net Assets for the Year Ended
December 31, 1998 56
Notes to the Financial Statements 58
Financial Highlights 74
Report of Independent Public Accountants 82
</TABLE>
<PAGE> 14
THE HARTFORD SMALL COMPANY FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 89.1%
AEROSPACE & DEFENSE -- 0.8%
96,400 Primex Technologies, Inc. ..... $ 2,000,300
------------
BUSINESS SERVICES -- 5.2%
*127,900 Iron Mountain, Inc. ........... 5,028,068
46,700 Manpower, Inc. ................ 1,757,087
82,500 Penton Media, Inc. ............ 1,980,000
*79,900 Pilot Network Services,
Inc. ......................... 1,917,600
*38,900 Plexus Corp. .................. 1,711,600
------------
12,394,355
------------
COMMUNICATIONS EQUIPMENT -- 8.1%
*116,500 Andrew Corp. .................. 2,206,218
*100,450 Burr-Brown Corp. .............. 3,628,756
*113,400 Cirrus Logic, Inc. ............ 1,509,637
*8,500 Digital Lightwave, Inc. ....... 544,000
*27,200 Gilat Satellite Networks
Ltd. ......................... 3,230,000
*41,700 Netro Corp. ................... 2,126,700
*22,300 Network Peripherals, Inc. ..... 1,053,675
*63,700 Visual Networks, Inc. ......... 5,048,225
------------
19,347,211
------------
COMPUTERS & OFFICE EQUIPMENT -- 7.4%
*22,000 Affiliated Computer Services,
Inc., Class A................. 1,012,020
*315,200 Concurrent Computer Corp. ..... 5,890,300
*354,000 Danka Business Systems PLC
ADR........................... 4,491,375
*289,800 Maxtor Corp. .................. 2,101,050
*74,250 SeaChange International,
Inc. ......................... 2,626,593
*42,400 Silicon Storage Technology,
Inc. ......................... 1,749,000
------------
17,870,338
------------
CONSUMER DURABLES -- 1.5%
*163,500 Brightpoint, Inc. ............. 2,145,937
*102,800 UNOVA, Inc. ................... 1,336,400
------------
3,482,337
------------
CONSUMER NON-DURABLES -- 0.6%
*144,300 Ivex Packaging Corp. .......... 1,443,000
------------
CONSUMER SERVICES -- 0.6%
*60,800 Dollar Thrifty Automotive
Group......................... 1,455,400
------------
ELECTRONICS -- 16.4%
*137,100 Advanced Fibre Communications,
Inc. ......................... 6,126,656
*131,400 Alliance Semiconductor
Corp. ........................ 2,192,737
*45,300 ANADIGICS, Inc. ............... 2,137,593
*140,000 Benchmark Electronics, Inc. ... 3,211,250
*34,000 Cognex Corp. .................. 1,326,000
*42,500 DII Group, Inc. (The).......... 3,016,171
*28,800 Electro Scientific Industries,
Inc. ......................... 2,102,400
*121,900 Excel Technology, Inc. ........ 2,186,581
*43,500 Galileo Technology Ltd. ....... 1,049,437
*50,100 GaSonics International
Corp. ........................ 989,475
*59,800 Kulicke and Soffa Industries,
Inc. ......................... 2,545,237
*56,900 Maker Communications, Inc. .... 2,432,475
*42,500 Micrel, Inc. .................. 2,419,843
*96,100 Photronics, Inc. .............. 2,750,862
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
ELECTRONICS -- (CONTINUED)
*96,100 Quanta Services, Inc. ......... $ 2,714,825
*66,400 Varian Semiconductor Equipment
Associates, Inc. ............. 2,257,600
------------
39,459,142
------------
ENERGY & SERVICES -- 2.3%
*40,700 BJ Services Co. ............... 1,701,768
30,700 Coflexip S.A. ADR.............. 1,166,600
*74,500 Marine Drilling Co., Inc. ..... 1,671,593
51,700 Pogo Producing Co. ............ 1,059,850
------------
5,599,811
------------
FINANCIAL SERVICES -- 5.5%
97,000 Annuity & Life Re (Holdings),
Ltd. ......................... 2,534,125
59,900 Legg Mason, Inc. .............. 2,171,375
*108,000 NCO Group, Inc. ............... 3,253,500
*70,200 Neuberger Berman, Inc. ........ 1,746,225
*28,400 NextCard, Inc. ................ 820,050
*37,600 Profit Recovery Group
International, Inc. (The) .... 998,750
60,394 Reinsurance Group of America,
Inc. ......................... 1,675,933
------------
13,199,958
------------
HEALTH CARE -- 5.1%
*74,200 Aurora Biosciences Corp. ...... 1,966,300
*20,748 Gilead Sciences, Inc. ......... 1,122,985
*20,500 Human Genome Sciences, Inc. ... 3,128,812
*32,650 King Pharmaceuticals, Inc. .... 1,830,440
*6,000 PE Corp. -- Celera Genomics
Group......................... 894,000
*106,000 Quest Diagnostics, Inc. ....... 3,239,625
------------
12,182,162
------------
INDUSTRIAL MATERIALS -- 1.1%
38,100 Minerals Technologies, Inc. ... 1,526,381
*36,200 Stillwater Mining Co. ......... 1,153,875
------------
2,680,256
------------
MANUFACTURING -- 0.4%
*22,900 Veeco Instruments, Inc. ....... 1,072,006
------------
MEDIA & SERVICES -- 4.5%
*64,700 Cumulus Media, Inc., Class A... 3,283,525
*69,800 SFX Entertainment, Inc., Class
A............................. 2,525,887
*30,500 Spanish Broadcasting System,
Inc., Class A................. 1,227,625
*82,600 Speedway Motorsports, Inc. .... 2,297,312
*81,700 World Wrestling Federation
Entertainment, Inc., Class
A............................. 1,409,325
------------
10,743,674
------------
RETAIL -- 4.7%
45,700 Ethan Allen Interiors, Inc. ... 1,465,256
*65,400 Linens 'n Things, Inc. ........ 1,937,475
*90,450 Pacific Sunwear of California,
Inc. ......................... 2,911,359
*71,200 Papa John's International,
Inc. ......................... 1,855,650
*3,200 Steven Madden, Ltd. ........... 61,000
*65,800 Whole Foods Market, Inc. ...... 3,051,475
------------
11,282,215
------------
</TABLE>
The accompanying notes are an integral part of this financial statement.
14
<PAGE> 15
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
SOFTWARE & SERVICES -- 15.3%
*21,800 Aspect Development, Inc. ...... $ 1,493,300
*58,500 Brio Technolgy, Inc. .......... 2,457,000
*122,500 Cambridge Technology Partners,
Inc. ......................... 3,215,625
*25,500 Creo Products, Inc. ........... 980,156
*47,200 Digex, Inc. ................... 3,245,000
*17,700 Digital Insight Corp. ......... 643,837
*46,500 Digital River, Inc. ........... 1,549,031
*67,700 Documentum, Inc. .............. 4,053,537
*54,600 Genesys Telecommunications
Laboratories, Inc. ........... 2,948,400
*53,800 Globix Corp. .................. 3,228,000
*16,000 HNC Software, Inc. ............ 1,692,000
*39,400 Insight Enterprises, Inc. ..... 1,600,625
*40,400 Macromedia, Inc. .............. 2,954,250
*8,700 Marimba, Inc. ................. 400,743
*26,500 Netegrity, Inc. ............... 1,508,843
*31,100 Novadigm, Inc. ................ 645,325
*55,300 Object Design, Inc. ........... 801,850
*40,100 Peregrine Systems, Inc. ....... 3,375,918
------------
36,793,440
------------
TRANSPORTATION -- 3.9%
*115,450 Atlas Air, Inc. ............... 3,167,659
*1,400 Raynair Holdings PLC ADR....... 77,175
43,500 Robinson (C.H.) Worldwide,
Inc. ......................... 1,729,125
48,600 Skywest, Inc. ................. 1,360,800
*68,650 Swift Transportation Co.,
Inc. ......................... 1,209,956
39,800 USFreightways Corp. ........... 1,905,425
------------
9,450,140
------------
UTILITIES -- 5.7%
*179,200 PairGain Technologies, Inc. ... 2,542,400
*161,600 Primus Telecommunications
Group, Inc. .................. 6,181,200
*90,500 Viatel, Inc. .................. 4,853,062
------------
13,576,662
------------
Total common stocks............ $214,032,407
============
PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 11.7%
REPURCHASE AGREEMENT -- 11.7%
$28,073,000 Interest in $1,811,499,000
joint repurchase agreement
dated 12/31/99 with State
Street Bank 2.578% due
01/03/00; maturity amount
$28,079,033 (Collateralized by
$728,431,000 U.S. Treasury
Notes 4.875% - 8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due
05/15/10 - 05/15/20).......... $ 28,073,000
------------
Total short-term securities.... $ 28,073,000
============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $161,207,417)............... 89.1% $214,032,407
Total short-term securities
(cost $28,073,000)................ 11.7 28,073,000
----- ------------
Total investment in securities
(total cost $189,280,417)......... 100.8 242,105,407
Cash, receivables and other
assets............................ 3.7 8,780,879
Payable for securities purchased.... (4.5) (10,617,886)
Payable for Fund shares redeemed.... (0.0) (66,003)
Other liabilities................... (0.0) (77,357)
----- ------------
Net assets.......................... 100.0% $240,125,040
===== ============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 11,806,532
shares outstanding........................ $ 11,807
Paid-in surplus............................. 171,918,030
Accumulated undistributed net realized gain
on investments............................ 15,370,213
Unrealized appreciation of investments...... 52,824,990
------------
Net assets.................................. $240,125,040
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share ($109,559,186 /
5,349,739 shares outstanding) (125,000,000
shares authorized)............................. $20.48
======
Maximum offering price per share($20.48 /
94.5%)......................................... $21.67
======
Class B
Net asset value per share and maximum offering
price per share ($53,357,682 / 2,673,282 shares
outstanding) (75,000,000 shares authorized).... $19.96
======
Class C
Net asset value per share ($37,672,298 /
1,886,783 shares outstanding) (50,000,000
shares authorized)............................. $19.97
======
Maximum offering price per share ($19.97 /
99.0%)......................................... $20.17
======
Class Y
Net asset value per share and maximum offering
price per share ($39,535,874 / 1,896,728 shares
outstanding) (50,000,000 shares authorized).... $20.84
======
</TABLE>
* Non-income producing during the period.
15
<PAGE> 16
THE HARTFORD CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<C> <S> <C>
COMMON STOCKS -- 93.0%
AEROSPACE & DEFENSE -- 0.6%
*571,700 Howmet International,
Inc. ...................... $ 10,326,331
--------------
BUSINESS SERVICES -- 5.0%
*647,500 Bright Horizons Family
Solutions, Inc. ........... 12,140,625
550,000 Chicago Bridge & Iron
Co. N.V. .................. 7,562,500
250,000 Comdisco, Inc. ............. 9,312,500
700,000 Manpower, Inc. ............. 26,337,500
*558,700 Pilot Network Services,
Inc. ...................... 13,408,800
*75,000 Vignette Corp. ............. 12,225,000
--------------
80,986,925
--------------
COMMUNICATIONS EQUIPMENT -- 7.5%
*50,000 Broadcom Corp., Class A..... 13,618,750
147,100 Burr-Brown Corp. ........... 5,313,987
*245,000 CIENA Corp. ................ 14,087,500
*145,000 Exodus Communications,
Inc. ...................... 12,877,812
*200,000 Gilat Satellite Networks
Ltd. ...................... 23,750,000
*1,000,000 Marconi PLC................. 17,631,994
*88,800 VeriSign, Inc. ............. 16,955,250
*220,000 Visual Networks, Inc. ...... 17,435,000
--------------
121,670,293
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 7.9%
*900,000 Concurrent Computer
Corp. ..................... 16,818,767
*1,450,000 Danka Business Systems PLC
ADR........................ 18,396,875
*1,200,000 Maxtor Corp. ............... 8,700,000
132,686 Psion PLC................... 5,534,437
*140,000 SanDisk Corp. .............. 13,475,000
*525,000 SeaChange International,
Inc. ...................... 18,571,875
*327,300 Seagate Technology, Inc. ... 15,239,906
*487,700 Silicon Storage
Technology, Inc. .......... 20,117,625
*182,500 Sybase, Inc. ............... 3,102,500
123,500 Symbol Technologies,
Inc. ...................... 7,849,968
--------------
127,806,953
--------------
CONSUMER NON-DURABLES -- 1.2%
*759,000 Ivex Packaging Corp. ....... 7,590,000
*235,000 Timberland Co. (The), Class
A.......................... 12,425,625
--------------
20,015,625
--------------
CONSUMER SERVICES -- 4.0%
*156,500 Anchor Gaming............... 6,797,968
*500,000 Cheesecake Factory, Inc.
(The)...................... 17,500,000
*300,000 Harrah's Entertainment,
Inc. ...................... 7,931,250
*350,600 Pegasus Systems, Inc. ...... 21,145,562
*552,900 Station Casinos, Inc. ...... 12,405,693
--------------
65,780,473
--------------
ELECTRICAL EQUIPMENT -- 0.9%
*2,836,000 Fuji Electric Co., Ltd. .... 14,878,917
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<C> <S> <C>
ELECTRONICS -- 8.6%
*275,600 ANADIGICS, Inc. ............ $ 13,004,875
*717,500 Artisan Components, Inc. ... 14,809,648
*300,000 Ibis Technology Corp. ...... 14,887,500
190,800 Koninklijke Philips
Electronics N.V., NY
Shares..................... 25,758,000
*220,000 Kopin Corp. ................ 9,240,000
*250,000 Micron Technology, Inc. .... 19,437,500
*440,100 Peak International Ltd. .... 4,511,025
*237,600 Quanta Services, Inc. ...... 6,712,200
*842,600 Sensormatic Electronics
Corp. ..................... 14,692,837
*525,000 Vishay Intertechnology,
Inc. ...................... 16,603,125
--------------
139,656,710
--------------
ENERGY & SERVICES -- 0.9%
*760,000 Newpark Resources, Inc. .... 4,655,000
*379,700 Precision Drilling Corp. ... 9,753,543
--------------
14,408,543
--------------
FINANCIAL SERVICES -- 4.5%
520,000 ACE Ltd. ................... 8,677,500
700,000 Annuity & Life Re
(Holdings), Ltd. .......... 18,287,500
300,000 Citigroup, Inc. ............ 16,668,750
*112,100 Investment Technology Group,
Inc. ...................... 3,222,875
400,000 Nichiei Co., Ltd. .......... 8,675,685
*315,000 Profit Recovery Group
International, Inc.
(The)...................... 8,367,187
351,000 Reinsurance Group of
America, Inc. ............. 9,740,250
--------------
73,639,747
--------------
FOOD, BEVERAGE & TOBACCO -- 0.9%
*849,700 General Cigar Holdings,
Inc., Class A.............. 7,063,131
*565,000 United Natural Foods,
Inc. ...................... 6,780,000
--------------
13,843,131
--------------
HEALTH CARE -- 6.2%
*168,700 Boston Scientific Corp. .... 3,690,312
*401,000 Genzyme Corp. .............. 18,045,000
*650,239 Genzyme Surgical Products... 3,779,514
*160,000 Gilead Sciences, Inc. ...... 8,660,000
*1,000,000 HealthSouth Corp. .......... 5,375,000
*160,000 Immunex Corp. .............. 17,520,000
578,300 McKesson HBOC, Inc. ........ 13,047,893
*72,200 Millennium Pharmaceuticals,
Inc. ...................... 8,808,400
140,000 Pharmacia & Upjohn, Inc. ... 6,300,000
*922,000 Repligen Corp. ............. 2,881,250
*575,000 Triangle Pharmaceuticals,
Inc. ...................... 7,367,187
*606,333 Ventiv Health, Inc. ........ 5,570,684
--------------
101,045,240
--------------
</TABLE>
The accompanying notes are an integral part of this financial statement.
16
<PAGE> 17
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
500,000 AngloGold Ltd. ADR.......... $ 12,843,750
*600,000 Asia Pulp & Paper Company
Ltd. ADR................... 4,725,000
600,000 Engelhard Corp. ............ 11,325,000
*705,900 Freeport-McMoRan Copper &
Gold, Inc., Class B........ 14,912,137
200,000 Monsanto Co. ............... 7,125,000
*1,300,000 Smurfit-Stone Container
Corp. ..................... 31,850,000
--------------
82,780,887
--------------
MANUFACTURING -- 4.7%
*300,000 C-Cube Microsystems,
Inc. ...................... 18,675,000
600,000 Delphi Automotive Systems
Corp. ..................... 9,450,000
560,000 Helix Technology Corp. ..... 25,095,000
*1,069,600 Hexcel Corp. ............... 5,949,650
*200,000 Quintiles Transnational
Corp. ..................... 3,737,500
*250,000 Terex Corp. ................ 6,937,500
*150,000 Veeco Instruments, Inc. .... 7,021,875
--------------
76,866,525
--------------
MEDIA & SERVICES -- 9.9%
*150,000 America Online, Inc. ....... 11,315,625
*456,000 Cumulus Media, Inc., Class
A.......................... 23,142,000
696,000 Dai Nippon Printing Co.,
Ltd. ...................... 11,083,773
*180,000 Pegasus Communications
Corp., Class A............. 17,595,000
*517,900 SFX Entertainment, Inc.,
Class A.................... 18,741,506
126,000 Sony Corp. ADR.............. 35,878,500
2,000,000 Telecom Italia Mobile
S.p.A. .................... 22,231,036
*292,800 TV Guide, Inc. ............. 12,590,400
*143,600 ValueVision International,
Inc., Class A.............. 8,230,075
--------------
160,807,915
--------------
REAL ESTATE -- 1.6%
*@300,000 Beacon Properties Corp.
(REIT)..................... 3,600,000
475,000 LNR Property Corp. ......... 9,440,625
250,000 Starwood Hotels & Resorts
Worldwide, Inc. ........... 5,875,000
225,000 Storage USA, Inc. (REIT).... 6,806,250
--------------
25,721,875
--------------
RETAIL -- 3.7%
*175,000 Calico Commerce, Inc. ...... 9,275,000
357,000 Intimate Brands, Inc., Class
A.......................... 15,395,625
292,600 Tandy Corp. ................ 14,392,262
*408,000 United Rentals (North
America), Inc. ............ 6,987,000
*300,000 Whole Foods Market, Inc. ... 13,912,500
--------------
59,962,387
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<C> <S> <C>
SOFTWARE & SERVICES -- 10.0%
*364,500 Avant! Corp. ............... $ 5,467,500
*180,000 BMC Software, Inc. ......... 14,388,750
*251,900 Cambridge Technology
Partners, Inc. ............ 6,612,375
285,000 First Data Corp. ........... 14,054,062
*560,000 Manugistics Group, Inc. .... 18,095,000
*300,000 New Era of Networks,
Inc. ...................... 14,287,500
*777,200 Object Design, Inc. ........ 11,269,400
*1,004,200 Pegasystems, Inc. .......... 11,297,250
*399,900 Rational Software Corp. .... 19,645,087
*454,300 Sterling Software, Inc. .... 14,310,450
*376,100 Unigraphics Solutions, Inc.,
Class A.................... 10,154,700
*551,900 Verity, Inc. ............... 23,490,243
--------------
163,072,317
--------------
TRANSPORTATION -- 3.8%
*487,500 Atlas Air, Inc. ............ 13,375,781
*265,000 Ryanair Holdings PLC ADR.... 14,608,125
300,000 Robinson (C.H.) Worldwide,
Inc. ...................... 11,925,000
*291,900 Swift Transportation Co.,
Inc. ...................... 5,144,737
338,500 USFreightways Corp. ........ 16,205,687
--------------
61,259,330
--------------
UTILITIES -- 4.2%
*225,000 Calpine Corp. .............. 14,400,000
535,000 Dynegy, Inc. ............... 13,007,187
*800,000 PairGain Technologies,
Inc. ...................... 11,350,000
*499,400 Primus Telecommunications
Group, Inc. ............... 19,102,050
*200,000 Viatel, Inc. ............... 10,725,000
--------------
68,584,237
--------------
WASTE MANAGEMENT -- 1.6%
1,554,900 Waste Management, Inc. ..... 26,724,843
--------------
Total common stocks......... $1,509,839,204
==============
CONVERTIBLE PREFERRED STOCKS -- 0.1%
CONSUMER SERVICES -- 0.1%
@13,758 Wyndham International, Inc.,
Class B 9.75% due
06/30/05................... $ 1,347,952
--------------
Total convertible preferred
stocks..................... $ 1,347,952
==============
<CAPTION>
PRINCIPAL
AMOUNT
- ------------
<C> <S> <C>
INDUSTRIAL MATERIALS -- 0.4%
$ 7,000,000 Globalstar Capital Corp. LP
11.375% due 02/15/04....... $ 4,865,000
3,550,000 Globalstar Capital Corp. LP
10.75% due 11/01/04........ 2,378,500
--------------
Total corporate notes....... $ 7,243,500
==============
</TABLE>
17
<PAGE> 18
THE HARTFORD CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ --------------
<C> <S> <C>
SHORT-TERM SECURITIES -- 5.6%
REPURCHASE AGREEMENT -- 5.6%
$ 91,323,000 Interest in $1,811,499,000
joint repurchase agreement
dated 12/31/99 with State
Street Bank 2.578% due
01/03/00; maturity amount
$91,342,626 (Collateralized
by $728,431,000 U.S.
Treasury Notes
4.875% - 8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due 05/15/10 -
05/15/20).................. $ 91,323,000
--------------
Total short-term
securities................. $ 91,323,000
==============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$1,136,639,528).................. 93.0% $1,509,839,204
Total convertible preferred stocks
(cost $1,348,880)................ 0.1 1,347,952
Total corporate notes (cost
$6,828,931)...................... 0.4 7,243,500
Total short-term securities (cost
$91,323,000)..................... 5.6 91,323,000
----- --------------
Total investment in securities
(total cost $1,236,140,339)...... 99.1 1,609,753,656
Cash, receivables and other
assets........................... 3.8 61,637,919
Payable for securities purchased... (2.8) (46,997,118)
Payable for Fund shares redeemed... (0.1) (1,017,607)
Other liabilities.................. (0.0) (364,648)
----- --------------
Net assets......................... 100.0% $1,623,012,202
===== ==============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized;
51,756,027 shares outstanding........... $ 51,756
Paid-in surplus........................... 1,134,013,953
Distribution in excess of net investment
income.................................. (590,627)
Accumulated undistributed net realized
gain on investments..................... 116,051,696
Unrealized appreciation of investments.... 373,613,317
Unrealized depreciation of forward foreign
currency contracts (See Note 2)+........ (132,209)
Unrealized appreciation of other assets
and liabilities in foreign currencies... 4,316
--------------
Net assets................................ $1,623,012,202
==============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($797,656,381 / 25,148,338 shares outstanding)
(125,000,000 shares authorized)................ $31.72
======
Maximum offering price per share
($31.72 / 94.5%)............................... $33.56
======
Class B
Net asset value per share and maximum offering
price per share ($569,201,047 / 18,405,628
shares outstanding) (75,000,000 shares
authorized).................................... $30.92
======
Class C
Net asset value per share
($191,466,387 / 6,197,473 shares outstanding)
(50,000,000 shares authorized)................. $30.89
======
Maximum offering price per share
($30.89 / 99.0%)............................... $31.21
======
Class Y
Net asset value per share and maximum offering
price per share ($64,688,387 / 2,004,588 shares
outstanding) (50,000,000 shares authorized).... $32.27
======
</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 to qualified institutional buyers. As of December 31, 1999, the
market value of these securities amounted to $4,947,952 or 0.3% of net assets.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------------------------------------- ------------ ------------ -------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $ 1,397,017 $ 1,392,597 01/04/00 $ 4,420
British Pounds (Buy) 2,047,362 2,054,731 01/05/00 (7,369)
British Pounds (Buy) 1,329,469 1,335,738 01/07/00 (6,269)
British Pounds (Buy) 456,688 458,318 01/10/00 (1,630)
Japanese Yen (Sell) 12,114,013 11,992,652 03/21/00 (121,361)
---------
$(132,209)
=========
</TABLE>
The accompanying notes are an integral part of this financial statement.
18
<PAGE> 19
THE HARTFORD MIDCAP FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<C> <S> <C>
COMMON STOCKS -- 98.0%
BUSINESS SERVICES -- 9.4%
*113,950 Iron Mountain, Inc.............. $ 4,479,659
149,800 Manpower, Inc. ................. 5,636,225
111,000 Viad Corp. ..................... 3,094,125
*7,800 Vignette Corp. ................. 1,271,400
*91,200 Waters Corp. ................... 4,833,600
39,100 Young & Rubicam, Inc. .......... 2,766,325
------------
22,081,334
------------
COMMUNICATIONS EQUIPMENT -- 5.3%
*6,600 Broadcom Corp., Class A......... 1,797,675
*42,500 CIENA Corp. .................... 2,443,750
*11,200 Exodus Communications, Inc. .... 994,700
*18,600 Network Appliance, Inc. ........ 1,544,962
*5,100 SDL, Inc. ...................... 1,111,800
*56,500 TeleCorp PCS, Inc. ............. 2,147,000
*13,100 VeriSign, Inc. ................. 2,501,281
------------
12,541,168
------------
COMPUTERS & OFFICE EQUIPMENT -- 3.8%
*47,500 Affiliated Computer Services,
Inc., Class A.................. 2,185,000
*12,700 ASM Lithography Holding N.V. ... 1,444,645
102,500 Steelcase, Inc., Class A........ 1,230,000
*68,400 UNISYS Corp. ................... 2,184,525
*39,000 Xilinx, Inc. ................... 1,773,281
------------
8,817,451
------------
CONSUMER DURABLES -- 1.5%
40,155 Hertz Corp. (The), Class A...... 2,012,769
*116,000 UNOVA, Inc. .................... 1,508,000
------------
3,520,769
------------
CONSUMER NON-DURABLES -- 1.1%
111,800 Herman Miller, Inc. ............ 2,571,400
------------
CONSUMER SERVICES -- 1.6%
*124,200 DeVry, Inc. .................... 2,313,225
111,100 ServiceMaster Co. (The)......... 1,367,918
------------
3,681,143
------------
ELECTRONICS -- 13.7%
*56,020 Analog Devices, Inc. ........... 5,209,860
104,900 Broadwing, Inc. ................ 3,868,187
*23,600 CheckFree Holding Corp. ........ 2,466,200
*46,200 Flextronics International
Ltd. .......................... 2,125,200
47,600 Molex, Inc., Class A............ 2,153,900
*19,100 PMC-Sierra, Inc. ............... 3,061,968
*20,500 Sanmina Corp. .................. 2,047,437
*64,200 Smith International, Inc. ...... 3,189,937
*55,600 Teradyne, Inc. ................. 3,669,600
*45,300 Vitesse Semiconductor Corp. .... 2,375,418
*38,300 White Electronic Designs
Corp. ......................... 2,080,168
------------
32,247,875
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<C> <S> <C>
ENERGY & SERVICES -- 3.9%
84,500 Anadarko Petroleum Corp. ....... $ 2,883,562
71,700 Suncor Energy, Inc. ............ 2,993,475
98,900 Transocean Sedco Forex, Inc. ... 3,331,693
------------
9,208,730
------------
FINANCIAL SERVICES -- 7.4%
136,435 ACE Ltd. ....................... 2,276,759
56,090 City National Corp. ............ 1,847,464
119,870 Franklin Resources, Inc. ....... 3,843,331
53,040 Legg Mason, Inc. ............... 1,922,700
41,700 Lincoln National Corp. ......... 1,668,000
87,800 MBIA, Inc. ..................... 4,636,937
34,887 Old Kent Financial Corp. ....... 1,234,127
------------
17,429,318
------------
FOOD, BEVERAGE & TOBACCO -- 1.0%
*81,700 Keebler Foods Co. .............. 2,297,812
------------
HEALTH CARE -- 9.6%
94,800 Biomet, Inc. ................... 3,792,000
*42,000 Forest Laboratories, Inc. ...... 2,580,375
*55,800 Gilead Sciences, Inc. .......... 3,020,175
*17,770 Human Genome Sciences, Inc. .... 2,712,146
*44,400 Immunex Corp. .................. 4,861,800
97,700 McKesson HBOC, Inc. ............ 2,204,356
*17,000 Millennium Pharmaceuticals,
Inc. .......................... 2,074,000
10,900 PE Corp -- PE Biosystems
Group ......................... 1,311,406
------------
22,556,258
------------
INDUSTRIAL MATERIALS -- 3.9%
235,300 Abitibi-Consolidated, Inc. ..... 2,794,187
42,800 Eastman Chemical Co. ........... 2,041,025
30,500 Phelps Dodge Corp. ............. 2,047,312
*44,200 Sealed Air Corp. ............... 2,290,112
------------
9,172,636
------------
MANUFACTURING -- 3.3%
43,300 Danaher Corp. .................. 2,089,225
175,400 Mattel, Inc. ................... 2,302,125
*85,000 Weatherford International,
Inc. .......................... 3,394,687
------------
7,786,037
------------
MEDIA & SERVICES -- 8.8%
*190,225 American Tower Corp., Class A... 5,813,751
*12,400 Echostar Communications Corp.,
Class A........................ 1,209,000
*30,800 Lamar Advertising Co., Class
A.............................. 1,865,325
53,400 Scripps (E.W.) Co. (The), Class
A.............................. 2,392,987
*52,500 SFX Entertainment, Inc., Class
A.............................. 1,899,843
*34,600 Teligent, Inc., Class A......... 2,136,550
*23,100 Univision Communications, Inc.,
Class A........................ 2,360,531
*43,000 Western Wireless Corp., Class
A.............................. 2,870,250
------------
20,548,237
------------
RETAIL -- 6.9%
58,900 Circuit City Stores Group....... 2,654,181
200,250 Dollar General Corp. ........... 4,555,687
*48,900 Dollar Tree Stores, Inc. ....... 2,368,593
</TABLE>
19
<PAGE> 20
THE HARTFORD MIDCAP FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
92,800 Family Dollar Stores, Inc. ..... $ 1,513,800
57,520 Intimate Brands, Inc., Class
A.............................. 2,480,550
*55,500 Starbucks Corp. ................ 1,345,875
*68,400 Webvan Group, Inc. ............. 1,128,600
------------
16,047,286
------------
SOFTWARE & SERVICES -- 11.6%
*7,000 Agile Software Corp. ........... 1,520,640
*13,000 Ariba, Inc. .................... 2,305,875
*90,700 Cambridge Technology Partners,
Inc. .......................... 2,380,875
*124,660 Ceridan Corp. .................. 2,687,981
*55,500 Covad Communications Group,
Inc. .......................... 3,104,531
296,800 Gartner Group, Inc., Class A.... 4,526,200
*51,100 Intuit, Inc. ................... 3,062,806
*84,600 Parametric Technology Corp. .... 2,289,487
*57,500 Rational Software Corp. ........ 2,824,687
*29,500 Siebel Systems, Inc. ........... 2,478,000
------------
27,181,082
------------
TRANSPORTATION -- 2.1%
*41,300 Raynair Holdings PLC ADR........ 2,276,662
168,455 Southwest Airlines Co. ......... 2,726,865
------------
5,003,527
------------
UTILITIES -- 3.1%
*74,800 McLeodUSA, Inc., Class A........ 4,403,850
*60,800 RCN Corp. ...................... 2,948,800
------------
7,352,650
------------
Total common stocks............. $230,044,713
============
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 1.1%
REPURCHASE AGREEMENT -- 1.1%
$2,550,000 Interest in $1,811,499,000 joint
repurchase agreement dated
12/31/99 with State Street Bank
2.578% due 01/03/00; maturity
amount $2,550,548
(Collateralized by $728,431,000
U.S. Treasury Notes
4.875% - 8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due
05/15/10 - 05/15/20)........... $ 2,550,000
------------
Total short-term securities..... $ 2,550,000
============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment in securities, at value (total
cost $197,419,519) - see accompanying
portfolio................................. $232,594,713
Receivable for securities sold.............. 14,142,583
Receivable for Fund shares sold............. 4,721,270
Receivable for dividends and interest....... 97,484
Cash and other assets....................... 417
------------
Total assets................................ 251,556,467
------------
LIABILITIES
Payable for securities purchased............ 16,512,876
Payable for Fund shares sold................ 154,613
Other liabilities........................... 86,164
------------
Total liabilities........................... 16,753,653
------------
Net assets.................................. $234,802,814
============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 13,275,295
shares outstanding........................ $ 13,275
Paid-in surplus............................. 183,656,952
Accumulated undistributed net realized gain
on investments............................ 15,957,393
Unrealized appreciation of investments...... 35,175,194
------------
Net assets.................................. $234,802,814
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($118,194,422 / 6,647,765 shares outstanding)
(125,000,000 shares authorized)................ $17.78
======
Maximum offering price per
share($17.78 / 94.5%).......................... $18.81
======
Class B
Net asset value per share and maximum offering
price per share ($50,300,722 / 2,867,984 shares
outstanding) (75,000,000 shares authorized).... $17.54
======
Class C
Net asset value per share
($48,310,470 / 2,756,189 shares outstanding)
(50,000,000 shares authorized)................. $17.53
======
Maximum offering price per
share($17.53 / 99.0%).......................... $17.71
======
Class Y
Net asset value per share and maximum offering
price per share ($17,997,200 / 1,003,357 shares
outstanding) (50,000,000 shares authorized).... $17.94
======
</TABLE>
* Non-income producing during the period.
The accompanying notes are an integral part of this financial statement.
20
<PAGE> 21
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 89.8%
AUSTRALIA -- 0.9%
39,224 Broken Hill Proprietary Co.,
Ltd. (Industrial Materials)... $ 513,340
*249,250 M.I.M. Holdings Ltd.
(Industrial Materials)........ 256,057
345,716 Pasminco Ltd. (Industrial
Materials).................... 377,779
------------
1,147,176
------------
BRAZIL -- 2.1%
16,200 Embratel Participacoes S.A. ADR
(Utilities)................... 442,063
1,505,700 Petroleo Brasileiro S.A.
(Energy & Services)........... 386,182
15,200 Tele Norte Leste Participacoes
S.A. ADR (Utilities).......... 387,600
10,500 Telecomunicacoes Brasileiras
S.A. ADR (Utilities).......... 1,349,250
------------
2,565,095
------------
CANADA -- 0.9%
27,800 Alcan Aluminum Ltd. (Industrial
Materials).................... 1,137,801
------------
CHINA -- 0.8%
*96,200 China Telecom (Hong Kong) Ltd.
(Media & Services)............ 601,440
*3,400 China Telecom (Hong Kong) Ltd.
ADR (Media & Services)........ 437,112
------------
1,038,552
------------
DENMARK -- 0.1%
1,990 Tele Danmark AS (Utilities).... 147,152
------------
FINLAND -- 3.3%
18,345 Oy Nokia (Communications
Equipment).................... 3,309,698
21,070 UPM-Kymmene Group (Energy &
Services)..................... 844,739
------------
4,154,437
------------
FRANCE -- 12.2%
6,200 Air Liquids S.A. (Industrial
Materials).................... 1,032,811
*23,553 Aventis S.A. (Health Care)..... 1,350,316
13,150 AXA (Financial Services)....... 1,824,147
10,905 Banque National de Paris
(BNP)(Financial Services)..... 1,001,196
5,100 Carrefour S.A. (Retail)........ 935,958
5,000 Compagnie de Saint-Gobain S.A.
(Industrial Materials)........ 935,647
13,300 Compagnie Generale des
Etablissements Michelin, Class
B (Consumer Durables)......... 519,893
5,900 France Telecom S.A.
(Utilities)................... 776,452
1,700 L'Oreal (Consumer Non-
Durables)..................... 1,357,165
3,000 Pinault-Printemps-Redoute S.A.
(Retail)...................... 787,808
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
FRANCE -- (CONTINUED)
8,400 Societe Generale S.A.
(Financial Services).......... $ 1,944,864
4,150 Suez Lyonnaise des Eaux S.A.
(Utilities)................... 661,784
16,288 Total Fina S.A., B Shares
(Energy & Services)........... 2,163,125
------------
15,291,166
------------
GERMANY -- 8.4%
14,200 BASF AG (Industrial
Materials).................... 738,675
2,400 Bayerische Vereinsbank AG
(Financial Services).......... 163,094
10,100 Deutsche Bank AG (Financial
Services)..................... 852,882
11,000 Deutsche Telekom AG
(Utilities)................... 770,117
3,300 Dresdner Bank AG (Financial
Services)..................... 178,279
11,316 Linde AG (Manufacturing)....... 621,543
13,004 Mannesmann AG (Media &
Services)..................... 3,133,354
4,939 Muenchener Rueckversicherungs-
Gesellschaft AG (Financial
Services)..................... 1,252,442
18,720 Siemens AG (Communications
Equipment).................... 2,382,910
9,200 Veba AG (Utilities)............ 447,226
------------
10,540,522
------------
HONG KONG -- 1.0%
81,000 Cheung Kong (Holdings) Ltd.
(Business Services)........... 1,028,972
31,000 Swire Pacific Ltd. (Real
Estate)....................... 183,044
------------
1,212,016
------------
INDIA -- 0.9%
6,200 Gujarat Ambuja Cements Ltd.
(Industrial Materials)........ 48,670
@5,100 Hindalco Industries Ltd., GDR
(Industrial Materials)........ 121,125
@8,100 Larsen & Toubro Ltd., GDR
(Business Services)........... 269,325
@25,600 State Bank of India GDR
(Financial Services).......... 312,320
@16,300 Videsh Sanchar Nigam Ltd.
(Utilities)................... 400,980
------------
1,152,420
------------
IRELAND -- 0.5%
56,840 Allied Irish Banks PLC
(Financial Services).......... 643,769
------------
ITALY -- 3.9%
82,700 Mediaset S.p.A. (Media &
Services)..................... 1,279,826
*69,000 San Paolo -- IMI S.p.A.
(Financial Services).......... 932,951
</TABLE>
21
<PAGE> 22
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ITALY -- (CONTINUED)
155,400 Telecom Italia Mobile S.p.A.
(Media & Services)............ $ 1,727,351
58,988 Telecom Italia S.p.A.
(Utilities)................... 827,732
------------
4,767,860
------------
JAPAN -- 21.9%
64,000 Bank of Yokohama Ltd. (The)
(Financial Services).......... 294,504
88,000 Dai Nippon Printing Co., Ltd.
(Media & Services)............ 1,401,396
130,000 Daiwa Bank Ltd. (The)
(Financial Services).......... 381,026
12,000 Eisai Co., Ltd. (Health
Care)......................... 230,374
5,300 Fuji Machine Manufacturing Co.,
Ltd. (Manufacturing).......... 426,671
31,000 Fujisawa Pharmaceutical Co.
(Health Care)................. 751,111
1,000 Fujitsu Support and Service,
Inc. (Computers & Office
Equipment).................... 489,472
129,000 Hitachi Ltd. (Electronics)..... 2,066,923
20,000 Hoya Corp. (Health Care)....... 1,572,956
*7,700 Internet Initiative Japan, Inc.
ADR (Software & Services)..... 748,343
3,000 Ito-Yokado Co., Ltd.
(Retail)...................... 325,338
400 Itochu Techno-Science Co.
(Communications Equipment).... 248,937
*198,000 Marubeni Corp. (Business
Services)..................... 829,876
8,800 Matsumotokiyoshi Co., Ltd.
(Retail)...................... 680,064
48,000 Minebea Co., Ltd.
(Electronics)................. 822,079
10,300 Nichiei Co., Ltd. (Financial
Services)..................... 223,398
102,000 Nikko Securities Co., Ltd.
(Financial Services).......... 1,288,515
83 Nippon Telegraph & Telephone
Corp. (Utilities)............. 1,419,080
48 NTT Mobile Communication
Network, Inc. (Media &
Services)..................... 1,842,996
69,000 Omron Corp. (Communications
Equipment).................... 1,587,562
22,000 Sharp Corp. (Computers & Office
Equipment).................... 562,063
3,000 Softbank Corp. (Software &
Services)..................... 2,866,493
11,600 Sony Corp. (Media &
Services)..................... 3,433,929
9,000 Takeda Chemical Industries Ltd.
(Health Care)................. 444,042
5,300 Takefuji Corp. (Financial
Services)..................... 662,273
44,000 Tokyo Style Co., Ltd.
(Retail)...................... 361,096
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
JAPAN -- (CONTINUED)
1,200 Trans Cosmos, Inc. (Computers &
Office Equipment)............. $ 511,161
15,500 Uni-Charm Corp. (Consumer
Non-Durables)................. 891,944
------------
27,363,622
------------
MEXICO -- 1.3%
7,500 Fomento Economico Mexicano S.A.
de C.V. (Food, Beverage &
Tobacco)...................... 333,750
8,500 Grupo Televisa S.A. (Media &
Services)..................... 580,125
6,500 Telefonos de Mexico S.A. ADR
(Utilities)................... 731,250
------------
1,645,125
------------
NETHERLANDS -- 6.9%
29,800 Fortis Netherlands N.V.
(Financial Services).......... 1,067,801
20,766 ING Groep N.V. (Financial
Services)..................... 1,247,578
22,815 Koninklijke KPN N.V.
(Utilities)................... 2,215,860
11,957 Koninklijke Philips Electronics
N.V. (Electronics)............ 1,617,909
*10,100 KPNQwest N.V., Class C
(Utilities)................... 643,875
11,500 Royal Dutch Petroleum Co.
(Energy & Services)........... 701,385
*4,700 United Pan-Europe
Communications N.V. (Media &
Services)..................... 598,273
*4,000 United Pan-Europe
Communications N.V. ADR, Class
A (Media & Services).......... 510,000
------------
8,602,681
------------
SINGAPORE -- 0.7%
53,550 Overseas-Chinese Banking Corp.,
Ltd. (Financial Services)..... 491,784
70,804 Overseas Union Bank Ltd., Class
B (Financial Services)........ 414,367
------------
906,151
------------
SOUTH KOREA -- 1.6%
12,000 Korea Telecom Corp.
(Utilities)................... 897,000
@12,500 Samsung Electronics GDR
(Electronics)................. 987,500
1,200 Samsung Electronics GDR
(Electronics)................. 143,850
------------
2,028,350
------------
SPAIN -- 3.9%
10,300 Banco Popular Espanol S.A.
(Financial Services).......... 668,459
37,500 Endesa S.A. (Utilities)........ 740,825
16,300 Repsol YPF S.A. (Energy &
Services)..................... 376,089
</TABLE>
The accompanying notes are an integral part of this financial statement.
22
<PAGE> 23
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
SPAIN -- (CONTINUED)
24,257 Telefonica S.A. ADR
(Utilities)................... 1,911,810
------------
4,858,007
------------
SWEDEN -- 2.1%
*16,630 Hennes & Mauritz AB, Class B
(Retail)...................... 554,785
32,670 Telefonaktiebolaget LM Ericsson
(Communications Equipment).... 2,091,821
------------
2,646,606
------------
SWITZERLAND -- 3.9%
5,680 Credit Suisse Group (Financial
Services)..................... 1,123,061
935 Holderbank Financiere Glarus AG
(Bearer) (Industrial
Materials).................... 1,273,354
767 Nestle S.A. (Food, Beverage &
Tobacco)...................... 1,397,697
90 Roche Holdings, Inc. (Health
Care)......................... 1,062,638
------------
4,856,750
------------
THAILAND -- 0.1%
*279,900 Siam Commercial Bank Warrants
(Financial Services).......... 130,337
------------
UNITED KINGDOM -- 12.3%
25,900 Abbey National PLC (Financial
Services)..................... 413,255
*7,400 Anglo American PLC (Industrial
Materials).................... 486,008
8,300 AstraZeneca Group PLC (Health
Care)......................... 343,524
3,900 AstraZeneca Group PLC ADR
(Health Care)................. 162,825
25,600 Barclays PLC (Financial
Services)..................... 736,894
192,064 BP Amoco PLC (Energy &
Services)..................... 1,930,041
137,300 British Airways PLC
(Transportation).............. 891,784
49,950 British Telecommunications PLC
(Utilities)................... 1,207,565
*15,900 China.com Corp. (Media &
Services)..................... 1,250,137
60,600 Imperial Chemical Industries
PLC (Industrial Materials).... 640,708
236,900 Invensys PLC (Communications
Equipment).................... 1,279,069
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
UNITED KINGDOM -- (CONTINUED)
34,300 National Westminster Bank PLC
(Financial Services).......... $ 736,899
30,600 Peninsular and Oriental Steam
Navigation Co., (The)
(Transportation).............. 506,989
53,700 Prudential Corp. PLC (Financial
Services)..................... 1,051,561
70,500 Scottish Power PLC
(Utilities)................... 531,764
286,300 Smith & Nephew PLC (Health
Care)......................... 969,002
91,547 SmithKline Beecham PLC (Health
Care)......................... 1,161,189
28,965 Standard Chartered PLC
(Financial Services).......... 450,489
112,500 Tomkins PLC (Food, Beverage &
Tobacco)...................... 364,445
62,720 Vodafone AirTouch PLC (Media &
Services)..................... 308,564
------------
15,422,712
------------
Total common stocks............ $112,258,307
============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
U.S. TREASURY BILLS -- 0.3%
$ 150,000 4.665% due 01/06/00............ $ 149,902
100,000 4.75% due 01/06/00............. 99,934
75,000 4.95% due 03/30/00............. 74,082
------------
323,918
------------
REPURCHASE AGREEMENT -- 9.0%
11,260,000 Interest in $1,811,499,000
joint repurchase agreement
dated 12/31/99 with State
Street Bank 2.578% due
01/03/00; maturity amount
$11,262,420 (Collateralized by
$728,431,000 U.S. Treasury
Notes 4.875% - 8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due
05/15/10 - 05/15/20).......... 11,260,000
------------
Total short-term securities.... $ 11,583,918
============
</TABLE>
23
<PAGE> 24
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Business Services.................... 1.7% $ 2,128,173
Communications Equipment............. 8.7 10,899,997
Computers & Office Equipment......... 1.2 1,562,696
Consumer Durables.................... 0.4 519,893
Consumer Non-Durables................ 1.8 2,249,109
Electronics.......................... 4.5 5,638,261
Energy & Services.................... 5.1 6,401,561
Financial Services................... 16.5 20,488,145
Food, Beverage & Tobacco............. 1.7 2,095,892
Health Care.......................... 6.4 8,047,977
Industrial Materials................. 6.0 7,561,975
Manufacturing........................ 0.8 1,048,214
Media & Services..................... 13.8 17,104,503
Real Estate.......................... 0.1 183,044
Retail............................... 2.9 3,645,049
Software & Services.................. 2.9 3,614,836
Transportation....................... 1.1 1,398,773
Utilities............................ 14.2 17,670,209
---- ------------
Total common stocks.................. 89.8% $112,258,307
==== ============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$86,838,725)...................... 89.8% $112,258,307
Total short-term securities
(cost $11,583,918)................ 9.3 11,583,918
----- ------------
Total investment in securities
(total cost $98,422,643).......... 99.1 123,842,225
Cash, receivables and other
assets............................ 1.6 1,967,245
Payable for securities purchased.... (0.2) (188,149)
Payable for Fund shares redeemed.... (0.5) (587,220)
----- ------------
Net assets.......................... 100.0% $125,034,101
===== ============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 8,134,152
shares outstanding........................ $ 8,134
Paid-in surplus............................. 99,404,509
Distribution in excess of net investment
income.................................... (310,754)
Accumulated undistributed net realized gain
on investments............................ 130,376
Unrealized appreciation of investments...... 25,419,582
Unrealized appreciation of futures contracts
#......................................... 403,124
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
Unrealized depreciation of forward foreign
currency contracts (See Note 2)+.......... (4,363)
Unrealized depreciation of other assets and
liabilities in foreign currencies......... (16,507)
------------
Net assets.................................. $125,034,101
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($63,281,468 / 4,101,416 shares outstanding)
(125,000,000 shares authorized)................ $15.43
======
Maximum offering price per share
($15.42 / 94.5%)............................... $16.33
======
Class B
Net asset value per share and maximum offering
price per share ($22,835,362 / 1,505,198 shares
outstanding) (75,000,000 shares authorized).... $15.17
======
Class C
Net asset value per share ($13,513,934 / 895,025
shares outstanding) (50,000,000 shares
authorized).................................... $15.10
======
Maximum offering price per share
($15.10 / 99.0%)............................... $15.25
======
Class Y
Net asset value per share and maximum offering
price per share ($25,403,337 / 1,632,513 shares
outstanding) (50,000,000 shares authorized).... $15.56
======
</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 to qualified institutional buyers. As of December 31, 1999, the
market value of these securities amounted to $2,091,250 or 1.7% of net assets.
# The fund had 9 March 2000 NEW FTSE 100 Index Futures contracts, 10 March 2000
CAC 40, 10 Euro Index Futures contracts, 6 March 2000 ASX All Ordinaries Share
Price Index futures contracts, 4 January 2000 IBEX 35 Index Futures contracts,
9 March 2000 TOPIX Index Futures contracts, 56 January 2000 OMX Index Futures
contracts, 3 March 2000 MIB 30 Index Futures contracts, 2 March 2000 DTB DAX
Index Futures contracts, 1 January 2000 Hang Seng Index Futures contracts open
as of December 31, 1999. These contracts had a market value of $5,803,390 as
of December 31, 1999, and were collateralized by various U.S. Treasury
obligations with a market value of $308,750.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------------------------------------------- ------------ ---------- -------- --------------
<S> <C> <C> <C> <C>
Australian Dollars (Buy) $ 306,926 $ 297,279 03/31/00 $ 9,647
British Pounds (Buy) 969,934 967,146 03/17/00 2,788
British Pounds (Buy) 61,480 61,285 01/04/00 195
Euro (Buy) 456,788 457,150 01/21/00 (362)
Euro (Buy) 919,216 919,760 03/17/00 (544)
Euro (Buy) 579,356 579,869 03/31/00 (513)
Japanese Yen (Buy) 1,421,170 1,423,032 03/09/00 (1,862)
Japanese Yen (Sell) 63,118 63,245 01/04/00 127
Swedish Krona (Buy) 674,772 688,611 01/28/00 (13,839)
--------
$ (4,363)
========
</TABLE>
The accompanying notes are an integral part of this financial statement.
24
<PAGE> 25
THE HARTFORD GLOBAL LEADERS FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 89.7%
AUSTRALIA -- 0.9%
64,667 Rio Tinto PLC (Industrial
Materials).................... $ 1,384,559
------------
BRAZIL -- 1.5%
18,300 Telecomunicacoes Brasileiras
S.A. (Utilities).............. 2,351,550
------------
CHINA -- 1.1%
*276,000 China Telecom (Hong Kong) Ltd.
(Media & Services)............ 1,725,547
------------
DENMARK -- 0.7%
14,200 Tele Danmark AS (Utilities).... 1,050,033
------------
FINLAND -- 2.6%
15,220 Oy Nokia (Communications
Equipment).................... 2,745,903
32,749 UPM-Kymmene Group (Energy &
Services)..................... 1,312,974
------------
4,058,877
------------
FRANCE -- 7.1%
*20,105 Aventis S.A. (Health Care)..... 1,152,653
20,700 AXA (Financial Services)....... 2,871,472
9,600 Carrefour S.A. (Retail)........ 1,761,804
2,600 L'Oreal (Consumer Non-
Durables)..................... 2,075,665
7,600 Societe Generale S.A.
(Financial Services).......... 1,759,639
11,030 Total Fina S.A., B Shares
(Energy & Services)........... 1,464,837
------------
11,086,070
------------
GERMANY -- 6.5%
38,500 BASF AG (Industrial
Materials).................... 2,002,747
11,353 Deutsche Bank AG (Financial
Services)..................... 958,691
29,000 Deutsche Telekom AG
(Utilities)................... 2,030,311
12,610 Mannesmann AG (Media &
Services)..................... 3,038,419
17,480 Siemens AG (Communications
Equipment).................... 2,225,068
------------
10,255,236
------------
ITALY -- 1.1%
154,100 Telecom Italia Mobile S.p.A.
(Media & Services)............ 1,712,901
------------
JAPAN -- 9.5%
16,000 Hoya Corp. (Health Care)....... 1,258,365
11,000 Ito-Yokado Co., Ltd.
(Retail)...................... 1,192,906
72,000 Minebea Co., Ltd.
(Electronics)................. 1,233,119
98,000 Nikko Securities Co., Ltd.
(Financial Services).......... 1,237,985
46 NTT Mobile Communication
Network, Inc. (Media &
Services)..................... 1,766,205
48,000 Omron Corp. (Communications
Equipment).................... 1,104,391
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
JAPAN -- (CONTINUED)
3,600 Softbank Corp. (Software &
Services)..................... $ 3,439,791
12,170 Sony Corp. (Media &
Services)..................... 3,602,666
------------
14,835,428
------------
MEXICO -- 0.8%
19,400 Grupo Televisa S.A. (Media &
Services)..................... 1,324,050
------------
NETHERLANDS -- 4.5%
27,800 ING Groep N.V. (Financial
Services)..................... 1,670,166
13,449 Koninklijke Philips Electronics
N.V. (Electronics)............ 1,819,792
24,200 Royal Dutch Petroleum Co.
(Energy & Services)........... 1,475,958
*15,900 United Pan-Europe
Communications N.V. ADR (Media
& Services)................... 2,027,250
------------
6,993,166
------------
SOUTH KOREA -- 1.3%
16,900 Samsung Electronics GDR
(Electronics)................. 2,025,887
------------
SPAIN -- 1.5%
91,710 Telefonica S.A. (Utilities).... 2,279,641
------------
SWEDEN -- 1.0%
24,640 Telefonaktiebolaget LM Ericsson
(Communications Equipment).... 1,577,669
------------
SWITZERLAND -- 0.8%
100 Roche Holdings, Inc. (Health
Care)......................... 1,180,709
------------
TAIWAN -- 1.2%
*41,700 Taiwan Semiconductor
Manufacturing Co., Ltd. ADR
(Electronics)................. 1,876,500
------------
UNITED KINGDOM -- 5.9%
231,300 BP Amoco PLC (Energy &
Services)..................... 2,324,321
*25,600 China.com Corp. (Media &
Services)..................... 2,012,800
*39,700 COLT Telecom Group PLC
(Utilities)................... 2,044,304
87,500 Prudential Corp. PLC (Financial
Services)..................... 1,713,438
722 Psion PLC (Computers & Office
Equipment).................... 30,115
340,200 Smith & Nephew PLC (Health
Care)......................... 1,151,430
------------
9,276,408
------------
UNITED STATES OF
AMERICA -- 41.7%
*21,700 3Com Corp. (Communications
Equipment).................... 1,019,900
*14,600 America Online, Inc. (Media &
Services)..................... 1,101,387
</TABLE>
25
<PAGE> 26
THE HARTFORD GLOBAL LEADERS FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UNITED STATES OF AMERICA -- (CONTINUED)
18,200 American Express Co. (Financial
Services)..................... $ 3,025,750
11,000 American International Group,
Inc. (Financial Services)..... 1,189,375
*21,600 Amgen, Inc. (Health Care)...... 1,297,350
*23,600 AMR Corp. (Transportation)..... 1,581,200
*43,600 AT&T -- Liberty Media Group,
Class A (Media & Services).... 2,474,300
*2,100 Broadcom Corp., Class A
(Communications Equipment).... 571,987
*14,440 Cisco Systems, Inc.
(Communications Equipment).... 1,546,885
34,710 Citigroup, Inc. (Financial
Services)..................... 1,928,574
*5,700 CMGI, Inc. (Media &
Services)..................... 1,578,187
40,500 Colgate-Palmolive Co. (Consumer
Non-Durables)................. 2,632,500
*13,700 Computer Sciences Corp.
(Software & Services)......... 1,296,362
12,900 Corning, Inc.
(Manufacturing)............... 1,663,293
*16,300 Echostar Communications Corp.,
Class A (Media & Services).... 1,589,250
19,000 Exxon Mobil Corp. (Energy &
Services)..................... 1,530,687
19,100 Gannett Co., Inc. (Media &
Services)..................... 1,557,843
21,980 General Electric Co.
(Electronics)................. 3,401,405
10,500 Goldman Sachs Group, Inc.
(Financial Services).......... 988,968
24,750 Home Depot, Inc. (The)
(Retail)...................... 1,696,921
*24,800 Immunex Corp. (Health Care).... 2,715,600
34,100 Intel Corp. (Electronics)...... 2,806,856
11,300 International Business Machines
Corp. (Computers & Office
Equipment).................... 1,220,400
23,800 Kimberly-Clark Corp. (Consumer
Non-Durables)................. 1,552,950
20,590 Marsh & McLennan Cos., Inc.
(Financial Services).......... 1,970,205
40,780 McDonald's Corp. (Retail)...... 1,643,943
35,600 McGraw-Hill Cos., Inc. (The)
(Media & Services)............ 2,193,876
*15,270 MCI WorldCom, Inc.
(Utilities)................... 810,264
*34,600 McLeodUSA, Inc., Class A
(Utilities)................... 2,037,075
*16,000 Microsoft Corp. (Software &
Services)..................... 1,868,000
8,700 Morgan Stanley Dean Witter &
Co. (Financial Services)...... 1,241,925
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
UNITED STATES OF AMERICA -- (CONTINUED)
*8,400 NTL, Inc. (Utilities).......... $ 1,047,900
*18,500 Oracle Corp. (Software &
Services)..................... 2,073,156
25,600 Phelps Dodge Corp. (Industrial
Materials).................... 1,718,400
28,160 Wal-Mart Stores, Inc.
(Retail)...................... 1,946,560
57,300 Walt Disney Co. (The) (Media &
Services)..................... 1,676,025
14,100 Warner-Lambert Co. (Health
Care)......................... 1,155,318
30,300 Weyerhaeuser Co. (Industrial
Materials).................... 2,175,918
------------
65,526,495
------------
Total common stocks............ $140,520,726
============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 8.5%
REPURCHASE AGREEMENT -- 8.5%
$13,356,000 Interest in $1,811,499,000
joint repurchase agreement
dated 12/31/99 with State
Street Bank
2.578% due 01/03/00; maturity
amount $13,358,870
(Collateralized by
$728,431,000 U.S. Treasury
Notes 4.875% - 8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due
05/15/10 - 05/15/20).......... $ 13,356,000
------------
Total short-term securities.... $ 13,356,000
============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$111,458,110)..................... 89.7% $140,520,726
Total short-term securities (cost
$13,356,000)...................... 8.5 13,356,000
----- ------------
Total investment in securities
(total cost $124,814,110)......... 98.2 153,876,726
Cash, receivables and other
assets............................ 3.6 5,696,860
Payable for securities purchased.... (1.8) (2,825,199)
Payable for Fund shares redeemed.... (0.0) (47,092)
Other liabilities................... (0.0) (46,347)
----- ------------
Net assets.......................... 100.0% $156,654,948
===== ============
</TABLE>
The accompanying notes are an integral part of this financial statement.
26
<PAGE> 27
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 8,469,910
shares outstanding........................ $ 8,470
Paid-in surplus............................. 126,000,092
Distribution in excess of net investment
income.................................... (30,227)
Accumulated undistributed net realized gain
on investments............................ 1,618,907
Unrealized appreciation of investments...... 29,062,616
Unrealized depreciation of forward foreign
currency contracts (See Note 2)+.......... (10,482)
Unrealized appreciation of other assets and
liabilities in foreign currencies......... 5,572
------------
Net assets.................................. $156,654,948
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($84,632,247 / 4,559,491 shares outstanding)
(125,000,000 shares authorized)................ $18.56
======
Maximum offering price per share
($18.56 / 94.5%)............................... $19.64
======
Class B
Net asset value per share and maximum offering
price per share ($24,587,561 / 1,336,197 shares
outstanding) (75,000,000 shares authorized).... $18.40
======
Class C
Net asset value per share
($43,012,361 / 2,337,404 shares outstanding)
(50,000,000 shares authorized)................. $18.40
======
Maximum offering price per share
($18.40 / 99.0%)............................... $18.59
======
Class Y
Net asset value per share and maximum offering
price per share ($4,422,779 / 236,818 shares
outstanding) (50,000,000 shares authorized).... $18.68
======
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Communications Equipment............ 6.9% $ 10,791,803
Computers & Office Equipment........ 0.8 1,250,515
Consumer Non-Durables............... 4.0 6,261,115
Electronics......................... 8.4 13,163,559
Energy & Services................... 5.2 8,108,777
Financial Services.................. 13.1 20,556,188
Health Care......................... 6.3 9,911,425
Industrial Materials................ 4.6 7,281,624
Manufacturing....................... 1.1 1,663,293
Media & Services.................... 18.8 29,380,706
Retail.............................. 5.3 8,242,134
Software & Services................. 5.5 8,677,309
Transportation...................... 1.0 1,581,200
Utilities........................... 8.7 13,651,078
----- ------------
Total common stocks........ 89.7% $140,520,726
===== ============
</TABLE>
* Non-income producing during the period.
+FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY (DEPRECIATION)
DESCRIPTION MARKET VALUE AMOUNT DATE APPRECIATION
- ------------------------------------------- ------------ ---------- -------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $1,657,255 $1,663,219 01/05/00 $ (5,964)
British Pounds (Buy) 30,451 30,560 01/10/00 (109)
Euro (Buy) 375,395 380,938 01/31/00 (5,543)
Japanese Yen (Sell) 358,558 359,278 01/04/00 720
Japanese Yen (Sell) 95,747 96,161 01/05/00 414
--------
$(10,482)
========
</TABLE>
27
<PAGE> 28
THE HARTFORD STOCK FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 93.6%
AEROSPACE & DEFENSE -- 1.2%
275,200 United Technologies Corp. ... $ 17,888,000
--------------
COMMUNICATIONS EQUIPMENT -- 10.6%
*50,000 Broadcom Corp., Class A...... 13,618,750
*376,800 Cisco Systems, Inc. ......... 40,364,700
*168,400 Global Crossing Ltd. ........ 8,420,000
*65,400 JDS Uniphase Corp. .......... 10,549,837
438,400 Lucent Technologies, Inc. ... 32,797,800
231,200 Motorola, Inc. .............. 34,044,200
130,000 Nokia Corp. ADR.............. 24,700,000
--------------
164,495,287
--------------
COMPUTERS & OFFICE EQUIPMENT -- 2.5%
258,200 International Business
Machines Corp. ............. 27,885,614
450,000 Xerox Corp. ................. 10,209,375
--------------
38,094,989
--------------
CONSUMER NON-DURABLES -- 1.1%
100,000 Gillette Co. (The)........... 4,118,750
120,000 Procter & Gamble Co. (The)... 13,147,500
--------------
17,266,250
--------------
CONSUMER SERVICES -- 0.2%
214,150 ServiceMaster Co. (The) ..... 2,636,721
--------------
ELECTRONICS -- 6.2%
309,900 General Electric Co. ........ 47,957,025
266,500 Intel Corp. ................. 21,936,281
*67,400 PMC-Sierra, Inc. ............ 10,805,062
154,300 Texas Instruments, Inc. ..... 14,947,812
--------------
95,646,180
--------------
ENERGY & SERVICES -- 7.1%
327,300 Anadarko Petroleum Corp. .... 11,169,112
514,800 Exxon Mobil Corp. ........... 41,473,575
254,400 Royal Dutch Petroleum Co. ... 15,375,300
310,000 Schlumberger Ltd. ........... 17,437,500
309,500 Texaco, Inc.................. 16,809,718
60,016 Transocean Sedco Forex,
Inc. ....................... 2,021,789
193,200 Unocal Corp.................. 6,484,275
--------------
110,771,269
--------------
FINANCIAL SERVICES -- 11.4%
220,000 American General Corp. ...... 16,692,500
170,437 American International Group,
Inc. ....................... 18,428,500
711,300 Associates First Capital
Corp., Class A.............. 19,516,293
427,598 Citigroup, Inc. ............. 23,758,413
200,900 Fannie Mae................... 12,543,693
409,500 Franklin Resources, Inc. .... 13,129,593
350,000 Marsh & McLennan Cos.,
Inc. ....................... 33,490,625
171,400 Merrill Lynch & Co., Inc. ... 14,311,900
240,800 State Street Corp. .......... 17,593,450
223,700 U.S. Bancorp................. 5,326,856
--------------
174,791,823
--------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
FOOD, BEVERAGE & TOBACCO -- 3.1%
564,400 PepsiCo, Inc. ............... $ 19,895,100
450,800 Philip Morris Co., Inc. ..... 10,452,925
*515,900 Safeway, Inc. ............... 18,346,693
--------------
48,694,718
--------------
HEALTH CARE -- 9.9%
390,300 Abbott Laboratories.......... 14,172,768
500,000 American Home Products
Corp. ...................... 19,718,750
200,000 Baxter International,
Inc. ....................... 12,562,500
190,000 Bristol-Myers Squibb Co. .... 12,195,625
299,300 Cardinal Health, Inc. ....... 14,328,987
163,200 Guidant Corp. ............... 7,670,400
180,000 Johnson & Johnson Co. ....... 16,762,500
302,800 Merck & Co., Inc. ........... 20,306,525
609,900 Pfizer, Inc. ................ 19,783,631
202,400 Warner-Lambert Co. .......... 16,584,150
--------------
154,085,836
--------------
INDUSTRIAL MATERIALS -- 4.5%
200,000 Alcoa, Inc. ................. 16,600,000
50,000 Dow Chemical Co. (The)....... 6,681,250
170,000 du Pont (E.I.) de Nemours &
Co. ........................ 11,198,750
175,000 Monsanto Co. ................ 6,234,375
229,100 Praxair, Inc. ............... 11,526,593
240,000 Weyerhaeuser Co.............. 17,235,000
--------------
69,475,968
--------------
MANUFACTURING -- 3.8%
300,000 Caterpillar, Inc. ........... 14,118,750
170,000 Corning, Inc. ............... 21,919,375
200,000 Illinois Tool Works, Inc. ... 13,512,500
260,000 Tyco International Ltd. ..... 10,107,500
--------------
59,658,125
--------------
MEDIA & SERVICES -- 6.8%
*250,000 America Online, Inc. ........ 18,859,375
*350,000 American Tower Corp., Class
A........................... 10,696,875
*450,000 AT&T -- Liberty Media Group,
Class A..................... 25,537,500
*354,500 CBS Corp. ................... 22,665,843
340,000 Gannett Co., Inc. ........... 27,731,250
--------------
105,490,843
--------------
RETAIL -- 6.1%
397,600 CVS Corp. ................... 15,879,150
315,000 Home Depot, Inc. (The)....... 21,597,187
580,000 McDonald's Corp. ............ 23,381,250
500,000 Wal-Mart Stores, Inc. ....... 34,562,500
--------------
95,420,087
--------------
SOFTWARE & SERVICES -- 8.9%
250,000 Automatic Data Processing,
Inc. ....................... 13,468,750
*180,000 Computer Sciences Corp. ..... 17,032,500
210,000 Electronic Data Systems
Corp. ...................... 14,056,875
*462,700 Microsoft Corp. ............. 54,020,225
*260,100 Oracle Corp. ................ 29,147,456
*73,350 VERITAS Software Corp. ...... 10,498,218
--------------
138,224,024
--------------
</TABLE>
The accompanying notes are an integral part of this financial statement.
28
<PAGE> 29
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
TRANSPORTATION -- 2.2%
*317,900 AMR Corp. ................... $ 21,299,300
430,000 CSX Corp. ................... 13,491,250
--------------
34,790,550
--------------
UTILITIES -- 8.0%
482,000 AT&T Corp. .................. 24,461,500
366,100 Bell Atlantic Corp. ......... 22,538,031
*830,367 MCI WorldCom, Inc. .......... 44,061,348
682,900 SBC Communications, Inc. .... 33,291,375
--------------
124,352,254
--------------
Total common stocks.......... $1,451,782,924
==============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 5.4%
$84,374,000 Interest in $1,811,499,000
joint
repurchase agreement dated
12/31/99 with State Street
Bank 2.578% due 01/03/00;
maturity amount $84,392,133
(Collateralized by
$728,431,000 U.S. Treasury
Notes 4.875% - 8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due 05/15/10 -
05/15/20)................... $ 84,374,000
--------------
Total short-term
securities.................. $ 84,374,000
==============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$1,217,267,293).................. 93.6% $1,451,782,924
Total short-term securities (cost
$84,374,000)..................... 5.4 84,374,000
----- --------------
Total investment in securities
(total cost $1,301,641,293)...... 99.0 1,536,156,924
Cash, receivables and other
assets........................... 1.1 17,666,840
Payable for Fund shares redeemed... (0.1) (1,459,176)
Other liabilities.................. (0.0) (587,805)
----- --------------
Net assets......................... 100.0% $1,551,776,783
===== ==============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized;
66,452,340 shares outstanding........... $ 66,452
Paid-in surplus........................... 1,299,504,939
Accumulated undistributed net realized
gain on investments..................... 17,689,761
Unrealized appreciation of investments.... 234,515,631
--------------
Net assets................................ $1,551,776,783
==============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($752,763,394 / 31,849,086 shares outstanding)
(125,000,000 shares authorized)................ $23.64
======
Maximum offering price per share
($23.64 / 94.5%)............................... $25.01
======
Class B
Net asset value per share and maximum offering
price per share ($462,318,437 / 20,048,768
shares outstanding) (75,000,000 shares
authorized).................................... $23.06
======
Class C
Net asset value per share
($305,566,162 / 13,256,995 shares outstanding)
(50,000,000 shares authorized)................. $23.05
======
Maximum offering price per share
($23.05 / 99.0%)............................... $23.28
======
Class Y
Net asset value per share and maximum offering
price per share ($31,128,790 / 1,297,487 shares
outstanding) (50,000,000 shares authorized).... $23.99
======
</TABLE>
* Non-income producing during the period.
29
<PAGE> 30
THE HARTFORD GROWTH AND INCOME FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<C> <S> <C>
COMMON STOCKS -- 97.5%
AEROSPACE & DEFENSE -- 2.9%
17,500 Honeywell International,
Inc. .......................... $ 1,009,531
40,100 United Technologies Corp. ...... 2,606,500
------------
3,616,031
------------
COMMUNICATIONS EQUIPMENT -- 8.6%
*16,900 3Com Corp....................... 794,300
*3,000 Broadcom Corp., Class A......... 817,125
*28,600 Cisco Systems, Inc. ............ 3,063,775
*10,100 Global Crossing Ltd. ........... 505,000
*2,800 JDS Uniphase Corp. ............. 451,675
20,200 Lucent Technologies, Inc. ...... 1,511,212
19,100 Motorola, Inc. ................. 2,812,475
*7,050 Sprint Corp. (PCS Group)........ 722,625
------------
10,678,187
------------
COMPUTERS & OFFICE EQUIPMENT -- 6.8%
*24,300 Adaptec, Inc. .................. 1,211,985
*1,500 Dell Computer Corp. ............ 76,500
*18,000 EMC Corp. ...................... 1,966,500
18,000 Hewlett-Packard Co. ............ 2,050,875
30,000 International Business
Machines Corp. ................ 3,240,000
------------
8,545,860
------------
CONSUMER NON-DURABLES -- 3.1%
38,100 Kimberly-Clark Corp. ........... 2,486,025
12,900 Procter & Gamble Co. (The)...... 1,413,356
------------
3,899,381
------------
ELECTRONICS -- 5.6%
*10,100 Analog Devices, Inc. ........... 939,300
23,000 General Electric Co. ........... 3,559,250
24,800 Intel Corp. .................... 2,041,350
*5,200 Micron Technology, Inc. ........ 404,300
------------
6,944,200
------------
ENERGY & SERVICES -- 4.0%
6,100 Atlantic Richfield Co. ......... 527,650
35,100 Conoco, Inc., Class B........... 873,112
6,900 Exxon Mobil Corp. .............. 555,881
9,000 Kerr-McGee Corp. ............... 558,000
18,300 Noble Affiliates, Inc. ......... 392,306
17,000 Royal Dutch Petroleum Co. ...... 1,027,437
8,700 Texaco, Inc. ................... 472,518
47,000 Union Pacific Resources
Group, Inc. ................... 599,250
------------
5,006,154
------------
FINANCIAL SERVICES -- 11.3%
6,825 American International Group,
Inc. .......................... $ 737,953
27,100 Associates First Capital Corp.,
Class A........................ 743,556
4,700 Chase Manhattan Corp. (The)..... 365,131
8,300 CIGNA Corp. .................... 668,668
66,000 Citigroup, Inc. ................ 3,667,125
18,700 Conseco, Inc. .................. 334,262
38,100 Cullen/Frost Bankers, Inc. ..... 981,075
22,600 Edwards (A.G.) & Sons, Inc. .... 724,612
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<C> <S> <C>
FINANCIAL
SERVICES -- (CONTINUED)
23,400 Fannie Mae...................... $ 1,461,037
10,500 Lincoln National Corp. ......... 420,000
9,000 Merrill Lynch & Co., Inc. ...... 751,500
5,200 Morgan Stanley Dean Witter &
Co. ........................... 742,300
35,100 Pacific Century Financial
Corp. ......................... 655,931
20,800 U.S. Bancorp.................... 495,300
16,100 UnionBanCal Corp. .............. 634,943
10,100 Wachovia Corp. ................. 686,800
------------
14,070,193
------------
FOOD, BEVERAGE & TOBACCO -- 4.3%
22,200 Anheuser-Busch Companies,
Inc. .......................... 1,573,425
10,100 Bestfoods....................... 530,881
7,800 Coca-Cola Co. (The)............. 454,350
28,400 PepsiCo, Inc. .................. 1,001,100
53,200 Philip Morris Co., Inc. ........ 1,233,575
*17,000 Safeway, Inc. .................. 604,562
------------
5,397,893
------------
HEALTH CARE -- 8.5%
27,500 Abbott Laboratories............. 998,593
14,100 American Home Products Corp. ... 556,068
10,200 Baxter International, Inc. ..... 640,687
*4,400 Biogen, Inc. ................... 371,800
*16,900 Boston Scientific Corp. ........ 369,687
11,300 Bristol-Myers Squibb Co. ....... 725,318
22,000 Cardinal Health, Inc. .......... 1,053,250
*3,500 Genentech, Inc. ................ 470,750
*21,400 Genzyme Corp. .................. 963,000
*7,200 Gilead Sciences, Inc. .......... 389,700
*8,700 Immunex Corp. .................. 952,650
15,600 Johnson & Johnson Co. .......... 1,452,750
9,500 Merck & Co., Inc. .............. 637,093
9,000 United HealthCare Corp. ........ 478,125
6,000 Warner-Lambert Co. ............. 491,625
------------
10,551,096
------------
INDUSTRIAL MATERIALS -- 5.3%
7,000 Alcoa, Inc. .................... 581,000
39,200 Engelhard Corp. ................ 739,900
*52,200 Freeport-McMoRan Copper & Gold,
Inc., Class A.................. 968,962
*42,600 Grace (W.R.) & Co. ............. 591,075
11,000 International Paper Co. ........ 620,812
36,800 Monsanto Co. ................... 1,311,000
12,200 Sigma-Aldrich Corp. ............ 366,762
7,000 Temple-Inland, Inc. ............ 461,562
13,200 Weyerhaeuser Co. ............... 947,925
------------
6,588,998
------------
MANUFACTURING -- 4.4%
18,000 Corning, Inc. .................. $ 2,320,875
35,778 Delphi Automotive Systems
Corp. ......................... 563,503
5,200 Eaton Corp. .................... 377,650
6,100 Illinois Tool Works, Inc. ...... 412,131
10,100 Parker-Hannifin Corp. .......... 518,256
32,900 Tyco International Ltd. ........ 1,278,987
------------
5,471,402
------------
</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)
MEDIA & SERVICES -- 5.2%
*23,800 America Online, Inc. ........... $ 1,795,412
*11,800 American Tower Corp., Class A... 360,637
*23,400 AT&T -- Liberty Media Group,
Class A........................ 1,327,950
*7,300 Echostar Communications Corp.,
Class A........................ 711,750
18,000 Gannett Co., Inc. .............. 1,468,125
6,000 Knight-Ridder, Inc. ............ 357,000
10,500 Scripps (E.W.) Co. (The), Class
A.............................. 470,531
------------
6,491,405
------------
RETAIL -- 7.1%
30,100 Darden Restaurants, Inc. ....... 545,562
14,900 Dayton-Hudson Corp. ............ 1,094,218
42,900 Home Depot, Inc. (The).......... 2,941,331
20,000 May Department Stores Co. ...... 645,000
53,600 Wal-Mart Stores, Inc. .......... 3,705,100
------------
8,931,211
------------
SOFTWARE & SERVICES -- 9.9%
*12,200 BISYS Group, Inc. (The)......... 796,050
*9,000 BMC Software, Inc. ............. 719,437
14,000 First Data Corp. ............... 690,375
*62,900 Microsoft Corp. ................ 7,343,575
*20,100 Oracle Corp. ................... 2,252,456
*16,500 Sterling Software, Inc. ........ 519,750
------------
12,321,643
------------
TRANSPORTATION -- 1.0%
*10,100 AMR Corp. ...................... 676,700
12,200 USFreightways Corp. ............ 584,075
------------
1,260,775
------------
UTILITIES -- 9.2%
53,950 AT&T Corp. ..................... 2,737,962
14,700 Bell Atlantic Corp. ............ 904,968
9,500 BellSouth Corp. ................ 444,718
27,500 El Paso Energy Corp. ........... 1,067,343
14,800 Enron Corp. .................... 656,750
*42,900 MCI WorldCom, Inc. ............. 2,276,381
33,309 SBC Communications, Inc. ....... 1,623,823
6,100 Sprint Corp. (FON Group)........ 410,606
42,400 Unicom Corp. ................... 1,420,400
------------
11,542,951
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<C> <S> <C>
WASTE MANAGEMENT -- 0.3%
22,800 Waste Management, Inc. ......... $ 391,875
------------
Total common stocks............. $121,709,255
============
<CAPTION>
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 3.1%
$3,843,000 Interest in $1,811,499,000 joint
repurchase agreement dated
12/31/99 with State Street Bank
2.578% due 01/03/00; maturity
amount $3,843,826
(Collateralized by $728,431,000
U.S. Treasury Notes
4.875% - 8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due
05/15/10 - 05/15/20)........... $ 3,843,000
------------
Total short-term securities..... $ 3,843,000
============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $108,721,838)............... 97.5% $121,709,255
Total short-term securities
(cost $3,843,000)................. 3.1 3,843,000
----- ------------
Total investment in securities
(total cost $112,564,838)......... 100.6 125,552,255
Cash, receivables and other
assets............................ 2.1 2,580,395
Payable for securities purchased.... (2.6) (3,133,644)
Payable for Fund shares redeemed.... (0.0) (45,249)
Other liabilities................... (0.1) (70,640)
----- ------------
Net assets.......................... 100.0% $124,883,117
===== ============
</TABLE>
31
<PAGE> 32
THE HARTFORD GROWTH AND INCOME FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 9,139,121
shares outstanding........................ $ 9,139
Paid-in surplus............................. 110,085,611
Accumulated undistributed net realized gain
on investments............................ 1,765,581
Unrealized appreciation of investments...... 12,987,417
Unrealized appreciation of futures contracts
++........................................ 35,369
------------
Net assets.................................. $124,883,117
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($74,764,276 / 5,449,296 shares outstanding)
(125,000,000 shares authorized)................ $13.72
======
Maximum offering price per share
($13.72 / 94.5%)............................... $14.52
======
Class B
Net asset value per share and maximum offering
price per share ($20,374,643 / 1,500,183 shares
outstanding) (75,000,000 shares authorized).... $13.58
======
Class C
Net asset value per share
($29,264,506 / 2,154,944 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 ($479,692 / 34,698 shares
outstanding) (50,000,000 shares authorized).... $13.83
======
</TABLE>
* Non-income producing during the period.
++ The Fund had 3 March 2000 Standard & Poor's 500 Futures contracts open as of
December 31, 1999. These contracts had a value of $1,113,150 as of December
31, 1999 and were collateralized by $56,250 of cash.
The accompanying notes are an integral part of this financial statement.
32
<PAGE> 33
THE HARTFORD DIVIDEND AND GROWTH FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 93.7%
AEROSPACE & DEFENSE -- 5.1%
53,700 Honeywell International,
Inc. ......................... $ 3,097,818
286,900 United Technologies Corp. ..... 18,648,500
------------
21,746,318
------------
BUSINESS SERVICES -- 0.2%
26,000 Viad Corp. .................... 724,750
------------
COMPUTERS & OFFICE EQUIPMENT -- 1.7%
44,100 International Business Machines
Corp. ........................ 4,762,824
35,000 Pitney Bowes, Inc. ............ 1,690,937
41,100 Xerox Corp. ................... 932,456
------------
7,386,217
------------
CONSUMER DURABLES -- 1.4%
50,900 Ford Motor Co. ................ 2,719,968
27,200 General Motors Corp. .......... 1,977,100
26,100 TRW, Inc. ..................... 1,355,568
------------
6,052,636
------------
CONSUMER NON-DURABLES -- 5.0%
25,800 Avon Products, Inc. ........... 851,400
65,800 Clorox Co. (The)............... 3,314,675
61,800 Colgate-Palmolive Co. ......... 4,017,000
92,300 Kimberly-Clark Corp. .......... 6,022,575
53,600 Procter & Gamble Co. (The)..... 5,872,550
52,300 Stanley Works (The)............ 1,575,537
------------
21,653,737
------------
CONSUMER SERVICES -- 0.3%
20,000 Eastman Kodak Co. ............. 1,325,000
------------
ELECTRONICS -- 4.5%
117,600 General Electric Co. .......... 18,198,600
*21,700 White Electronic Designs
Corp. ........................ 1,178,581
------------
19,377,181
------------
ENERGY & SERVICES -- 9.8%
79,900 Chevron Corp. ................. 6,921,337
115,396 Conoco, Inc., Class B.......... 2,870,475
125,960 Exxon Mobil Corp. ............. 10,147,652
320,500 Repsol YPF S.A. ADR............ 7,451,625
149,100 Suncor Energy, Inc. ........... 6,224,925
121,200 Total Fina S.A. ADR............ 8,393,100
------------
42,009,114
------------
FINANCIAL SERVICES -- 18.2%
57,700 Bank One Corp. ................ 1,850,006
38,535 Bear Stearns Cos., Inc.
(The)......................... 1,647,371
48,400 CIGNA Corp. ................... 3,899,225
339,325 Citigroup, Inc. ............... 18,853,745
93,900 Edwards (A.G.) & Sons, Inc. ... 3,010,668
145,100 Fannie Mae..................... 9,059,681
105,200 Marsh & McLennan Cos., Inc. ... 10,066,325
156,000 National Commerce
Bancorporation................ 3,539,250
181,900 Pacific Century Financial
Corp. ........................ 3,399,256
68,400 People's Bank.................. 1,444,950
108,500 Pinnacle West Capital Corp. ... 3,316,031
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
FINANCIAL
SERVICES -- (CONTINUED)
325,300 U.S. Bancorp................... $ 7,746,206
76,800 UnionBanCal Corp. ............. 3,028,800
72,300 Wachovia Corp. ................ 4,916,400
47,200 XL Capital Ltd., Class A....... 2,448,500
------------
78,226,414
------------
FOOD, BEVERAGE & TOBACCO --5.3%
77,700 Heinz (H.J.) Co. .............. 3,093,431
67,400 Hershey Foods Corp. ........... 3,201,500
181,500 McCormick & Co., Inc. ......... 5,399,625
140,500 PepsiCo, Inc. ................. 4,952,625
203,600 Philip Morris Co., Inc. ....... 4,720,975
426,399 Southcorp Ltd. ................ 1,498,278
------------
22,866,434
------------
HEALTH CARE -- 8.5%
70,800 Abbott Laboratories............ 2,570,925
86,200 American Home Products
Corp. ........................ 3,399,512
54,500 AstraZeneca Group PLC ADR...... 2,275,375
99,600 Baxter International, Inc. .... 6,256,125
28,900 Bristol-Myers Squibb Co. ...... 1,855,018
54,700 Cardinal Health, Inc. ......... 2,618,762
34,800 Merck & Co., Inc. ............. 2,333,775
139,900 Pharmacia & Upjohn, Inc. ...... 6,295,500
109,600 Warner-Lambert Co. ............ 8,980,350
------------
36,585,342
------------
INDUSTRIAL MATERIALS -- 4.5%
119,600 Abitibi-Consolidated, Inc. .... 1,420,250
28,500 Air Products & Chemicals,
Inc. ......................... 956,531
23,200 Akzo Nobel N.V. ADR............ 1,154,200
55,700 Alcoa, Inc. ................... 4,623,100
28,800 Cabot Corp. ................... 586,800
50,364 du Pont (E.I.) de Nemours &
Co. .......................... 3,317,728
17,500 Eastman Chemical Co. .......... 834,531
14,600 International Paper Co. ....... 823,987
43,900 Temple-Inland, Inc. ........... 2,894,656
37,700 Weyerhaeuser Co. .............. 2,707,331
------------
19,319,114
------------
MANUFACTURING -- 5.2%
27,600 Caterpillar, Inc. ............. 1,298,925
*139,200 CNH Global N.V. ............... 1,853,100
98,600 Corning, Inc. ................. 12,713,237
36,500 Eaton Corp. ................... 2,650,812
37,600 Minnesota Mining &
Manufacturing Co. ............ 3,680,100
------------
22,196,174
------------
MEDIA & SERVICES -- 1.5%
81,100 Gannett Co., Inc. ............. 6,614,718
------------
REAL ESTATE -- 2.1%
95,300 Archstone Communities Trust
(REIT)........................ 1,953,650
67,300 Equity Office Properties Trust
(REIT)........................ 1,657,262
52,700 Kimco Realty Corp. (REIT)...... 1,785,212
</TABLE>
33
<PAGE> 34
THE HARTFORD DIVIDEND AND GROWTH FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
REAL ESTATE -- (CONTINUED)
74,600 Liberty Property Trust
(REIT)........................ $ 1,809,050
24,600 Spieker Properties, Inc.
(REIT)........................ 896,362
35,600 Starwood Hotels & Resorts
Worldwide, Inc. .............. 836,600
------------
8,938,136
------------
RETAIL -- 2.6%
171,825 Intimate Brands, Inc., Class
A............................. 7,409,953
121,350 May Department Stores Co. ..... 3,913,537
------------
11,323,490
------------
SOFTWARE & SERVICES -- 0.9%
55,000 Electronic Data Systems
Corp. ........................ 3,681,562
*901 Microsoft Corp. ............... 105,191
------------
3,786,753
------------
TRANSPORTATION -- 0.7%
66,300 USFreightways Corp. ........... 3,174,112
------------
UTILITIES -- 16.2%
259,050 AT&T Corp. .................... 13,146,787
204,834 Bell Atlantic Corp. ........... 12,610,093
33,750 Columbia Energy Group.......... 2,134,687
39,200 Dominion Resources, Inc. ...... 1,538,600
95,500 DQE, Inc. ..................... 3,306,687
34,100 Duke Energy Corp. ............. 1,709,262
32,200 Edison International........... 843,237
89,800 El Paso Energy Corp. .......... 3,485,362
83,700 Endesa S.A. ADR................ 1,689,693
50,500 Enron Corp. ................... 2,240,937
48,000 GPU, Inc. ..................... 1,437,000
*46,134 MCI WorldCom, Inc. ............ 2,447,985
50,600 Montana Power Co. (The)........ 1,824,762
62,800 Peco Energy Co. ............... 2,182,300
234,350 SBC Communications, Inc. ...... 11,424,562
61,200 Sprint Corp. (FON Group)....... 4,119,525
83,100 Unicom Corp. .................. 2,783,850
47,500 UtiliCorp United, Inc. ........ 923,281
------------
69,848,610
------------
Total common stocks............ $403,154,250
============
CONVERTIBLE PREFERRED STOCKS -- 1.7%
MEDIA & SERVICES -- 1.1%
@1,200,000 American Tower Corp.
6.25% due 10/15/09............ $ 1,683,000
1,830,000 Tribune Co.
2.00% due 05/15/29............ 2,909,700
------------
4,592,700
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
UTILITIES -- 0.6%
@36,000 Qwest TrENDS Trust
5.75% due 11/17/03............ $ 2,547,000
7,400 Texas Utilities Co.
9.25% due 08/16/02............ 322,825
------------
2,869,825
------------
Total convertible preferred
stocks........................ $ 7,462,525
============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
FINANCIAL SERVICES -- 1.0%
$ 286,500 Morgan Stanley Dean Witter &
Co. (Reset PERQS)
6.00% due 03/15/01............ $ 2,292,000
20,000 Salomon Smith Barney Holdings,
Inc. (ELKS)
3.25% due 10/06/00............ 2,080,000
------------
Total equity linked notes...... $ 4,372,000
============
SHORT-TERM SECURITIES -- 3.1%
REPURCHASE AGREEMENT -- 3.1%
13,404,000 Interest in $1,811,499,000
joint repurchase agreement
dated 12/31/99 with State
Street Bank 2.578% due
01/03/00; maturity amount
$13,406,881 (Collateralized by
$728,431,000 U.S. Treasury
Notes 4.875% -
8.00% due 02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips
0.00% due
05/15/10 -05/15/20)........... $ 13,404,000
------------
Total short-term securities.... $ 13,404,000
============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $368,466,910)............... 93.7% $403,154,250
Total convertible preferred stocks
(cost $5,871,591)................. 1.7 7,462,525
Total equity linked notes (See Note
2(h))
(cost $4,319,053)................. 1.0 4,372,000
Total short-term securities
(cost $13,404,000)................ 3.1 13,404,000
----- ------------
Total investment in securities
(total cost $392,061,554)......... 99.5 428,392,775
Cash, receivables and other
assets............................ 0.7 2,949,654
Payable for Fund shares redeemed.... (0.2) (672,270)
Other liabilities................... (0.0) (154,594)
----- ------------
Net assets.......................... 100.0% $430,515,565
===== ============
</TABLE>
The accompanying notes are an integral part of this financial statement.
34
<PAGE> 35
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 25,636,700
shares outstanding........................ $ 25,637
Paid-in surplus............................. 392,634,099
Distribution in excess of net investment
income.................................... (178,759)
Accumulated undistributed net realized gain
on investments............................ 1,702,338
Unrealized appreciation of investments...... 36,331,221
Unrealized appreciation of other assets and
liabilities in foreign currencies......... 1,029
------------
Net assets.................................. $430,515,565
============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($242,053,703 / 14,366,432 shares outstanding)
(125,000,000 shares authorized)................ $16.85
======
Maximum offering price per share
($16.85 / 94.5%)............................... $17.83
======
Class B
Net asset value per share and maximum offering
price per share ($121,977,135 / 7,306,288
shares outstanding) (75,000,000 shares
authorized).................................... $16.69
======
Class C
Net asset value per share
($42,868,749 / 2,571,469 shares outstanding)
(50,000,000 shares authorized)................. $16.67
======
Maximum offering price per share
($16.67 / 99.0%)............................... $16.84
======
Class Y
Net asset value per share and maximum offering
price per share ($23,615,978 / 1,392,511 shares
outstanding) (50,000,000 shares authorized).... $16.96
======
</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 to qualified institutional buyers. As of December 31, 1999, the
market value of these securities amounted to $4,230,000 or 1.0% of net assets.
35
<PAGE> 36
THE HARTFORD ADVISERS FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 62.0%
AEROSPACE & DEFENSE -- 0.8%
209,600 United Technologies Corp. ... $ 13,624,000
--------------
13,624,000
--------------
COMMUNICATIONS EQUIPMENT -- 7.1%
*40,000 Broadcom Corp., Class A...... 10,895,000
*243,450 Cisco Systems, Inc. ......... 26,079,581
*111,400 Global Crossing Ltd. ........ 5,570,000
*46,800 JDS Uniphase Corp. .......... 7,549,425
310,200 Lucent Technologies, Inc. ... 23,206,837
163,600 Motorola, Inc. .............. 24,090,100
100,000 Nokia Corp. ADR.............. 19,000,000
--------------
116,390,943
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 1.6%
172,500 International Business
Machines Corp. ............. 18,630,025
331,800 Xerox Corp. ................. 7,527,712
--------------
26,157,737
--------------
CONSUMER NON-DURABLES -- 0.8%
50,000 Gillette Co. (The)........... 2,059,375
95,900 Procter & Gamble Co. (The)... 10,507,043
--------------
12,566,418
--------------
CONSUMER SERVICES -- 0.1%
123,750 ServiceMaster Co. (The)...... 1,523,671
--------------
ELECTRONICS -- 3.9%
216,900 General Electric Co. ........ 33,565,275
177,500 Intel Corp. ................. 14,610,468
*46,200 PMC-Sierra, Inc. ............ 7,406,437
91,000 Texas Instruments, Inc. ..... 8,815,625
--------------
64,397,805
--------------
ENERGY & SERVICES -- 4.8%
260,000 Anadarko Petroleum Corp. .... 8,872,500
340,500 Exxon Mobil Corp. ........... 27,431,531
200,000 Royal Dutch Petroleum Co. ... 12,087,500
220,000 Schlumberger Ltd. ........... 12,375,000
204,700 Texaco, Inc. ................ 11,117,768
42,592 Transocean Sedco Forex,
Inc. ....................... 1,434,818
165,800 Unocal Corp. ................ 5,564,662
--------------
78,883,779
--------------
FINANCIAL SERVICES -- 7.5%
160,000 American General Corp. ...... 12,140,000
132,187 American International Group,
Inc. ....................... 14,292,719
502,800 Associates First Capital
Corp., Class A.............. 13,795,575
312,875 Citigroup, Inc. ............. 17,384,117
148,000 Fannie Mae................... 9,240,750
320,000 Franklin Resources, Inc. .... 10,260,000
217,500 Marsh & McLennan Cos.,
Inc. ....................... 20,812,031
120,700 Merrill Lynch & Co., Inc. ... 10,078,450
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
FINANCIAL
SERVICES -- (CONTINUED)
170,000 State Street Corp. .......... $ 12,420,625
100,500 U.S. Bancorp................. 2,393,156
--------------
122,817,423
--------------
FOOD, BEVERAGE & TOBACCO -- 2.2%
388,900 PepsiCo, Inc. ............... 13,708,725
320,500 Philip Morris Co., Inc. ..... 7,431,593
*408,900 Safeway, Inc. ............... 14,541,506
--------------
35,681,824
--------------
HEALTH CARE -- 6.9%
270,000 Abbott Laboratories.......... 9,804,375
366,200 American Home Products
Corp. ...................... 14,442,012
150,000 Baxter International,
Inc. ....................... 9,421,875
160,000 Bristol-Myers Squibb Co. .... 10,270,000
230,000 Cardinal Health, Inc. ....... 11,011,250
123,700 Guidant Corp. ............... 5,813,900
140,000 Johnson & Johnson Co. ....... 13,037,500
220,800 Merck & Co., Inc. ........... 14,807,400
418,200 Pfizer, Inc. ................ 13,565,362
143,800 Warner-Lambert Co. .......... 11,782,612
--------------
113,956,286
--------------
INDUSTRIAL MATERIALS -- 3.3%
140,200 Alcoa, Inc. ................. 11,636,600
70,000 Dow Chemical Co. (The)....... 9,353,750
100,000 du Pont (E.I.) de Nemours &
Co. ........................ 6,587,500
130,000 Monsanto Co. ................ 4,631,250
197,900 Praxair, Inc. ............... 9,956,843
160,000 Weyerhaeuser Co. ............ 11,490,000
--------------
53,655,943
--------------
MANUFACTURING -- 2.4%
200,000 Caterpillar, Inc. ........... 9,412,500
100,000 Corning, Inc. ............... 12,893,750
140,000 Illinois Tool Works, Inc. ... 9,458,750
200,000 Tyco International Ltd. ..... 7,775,000
--------------
39,540,000
--------------
MEDIA & SERVICES -- 3.9%
*140,000 America Online, Inc. ........ 10,561,250
*260,000 American Tower Corp., Class
A........................... 7,946,250
*260,000 AT&T -- Liberty Media Group,
Class A..................... 14,755,000
*220,000 CBS Corp. ................... 14,066,250
210,000 Gannett Co., Inc. ........... 17,128,125
--------------
64,456,875
--------------
RETAIL -- 4.4%
303,300 CVS Corp. ................... 12,113,043
291,000 Home Depot, Inc. (The)....... 19,951,687
400,000 McDonald's Corp. ............ 16,125,000
342,200 Wal-Mart Stores, Inc. ....... 23,654,575
--------------
71,844,305
--------------
</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)
SOFTWARE & SERVICES -- 6.1%
200,000 Automatic Data Processing,
Inc. ....................... $ 10,775,000
*130,000 Computer Sciences Corp. ..... 12,301,250
161,900 Electronic Data Systems
Corp. ...................... 10,837,181
*331,500 Microsoft Corp. ............. 38,702,625
*173,300 Oracle Corp. ................ 19,420,431
*52,500 VERITAS Software Corp. ...... 7,514,062
--------------
99,550,549
--------------
TRANSPORTATION -- 1.5%
*212,400 AMR Corp. ................... 14,230,800
320,000 CSX Corp. ................... 10,040,000
--------------
24,270,800
--------------
UTILITIES -- 4.7%
332,050 AT&T Corp. .................. 16,851,537
180,000 Bell Atlantic Corp. ......... 11,081,250
*549,267 MCI WorldCom, Inc. .......... 29,145,480
422,900 SBC Communications, Inc. .... 20,616,375
--------------
77,694,642
--------------
Total common stocks.......... $1,017,013,000
==============
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
CORPORATE NOTES -- 9.8%
COMMUNICATIONS EQUIPMENT -- 0.1%
$ 2,000,000 Motorola, Inc.
7.60% due 01/01/07.......... $ 2,006,092
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 0.1%
2,000,000 Pitney Bowes, Inc.
5.50% due 04/15/04.......... 1,887,976
--------------
CONSUMER DURABLES -- 0.3%
3,000,000 Ford Motor Co.
6.625% due 10/01/28......... 2,609,064
2,000,000 General Motors Corp.
6.75% due 05/01/28.......... 1,771,284
--------------
4,380,348
--------------
CONSUMER NON-DURABLES -- 0.1%
2,000,000 Colgate-Palmolive Co.
5.58% due 11/06/08.......... 1,777,108
--------------
ENERGY & SERVICES -- 0.3%
1,360,000 Conoco, Inc.
5.90% due 04/15/04.......... 1,296,732
4,000,000 Tosco Corp.
9.625% due 03/15/02......... 4,160,440
--------------
5,457,172
--------------
FINANCIAL SERVICES -- 4.3%
3,000,000 ACE INA Holdings
8.30% due 08/15/06.......... 2,995,611
2,000,000 Allmerica Financial Corp.
7.625% due 10/15/25......... 1,878,890
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
FINANCIAL
SERVICES -- (CONTINUED)
$ 2,000,000 Allstate Corp. (The)
6.75% due 05/15/18.......... $ 1,787,448
1,900,000 Allstate Corp. (The)
6.75% due 06/15/03.......... 1,854,846
1,420,000 Amerus Life Holdings
6.95% due 06/15/05.......... 1,290,784
3,000,000 Apache Finance Property Ltd.
7.00% due 03/15/09.......... 2,830,578
2,000,000 Associated Corp. of North
America
6.00% due 07/15/05.......... 1,872,328
3,000,000 Bank One Corp.
6.875% due 08/01/06......... 2,905,896
500,000 BankAmerica Corp.
7.875% due 12/01/02......... 509,864
2,000,000 Bayerische Landesbank (NY)
5.65% due 02/01/09.......... 1,755,322
1,000,000 CIGNA Corp.
6.375% due 01/15/06......... 925,223
1,260,000 CIGNA Corp.
7.40% due 05/15/07.......... 1,218,656
@2,370,000 Development Bank of Singapore
7.875% due 08/10/09......... 2,333,056
2,000,000 Equitable Cos., Inc.
7.00% due 04/01/28.......... 1,788,920
500,000 Finova Capital Corp.
6.39% due 10/08/02.......... 486,353
1,000,000 First Union National Bank
5.80% due 12/01/08.......... 882,640
1,000,000 Fleet Financial Group
6.875% due 01/15/28......... 879,911
500,000 Heller Financial
6.382% due 11/10/00......... 497,744
@2,000,000 Jackson National Life
Insurance Co.
8.15% due 03/15/27.......... 1,958,558
@2,000,000 John Hancock Surplus Notes
7.375% due 02/15/24......... 1,848,706
2,755,000 Key Bank N.A.
5.80% due 04/01/04.......... 2,585,663
1,000,000 Liberty Financial Co.
6.75% due 11/15/08.......... 921,425
@5,000,000 Liberty Mutual Insurance
8.20% due 05/04/07.......... 5,029,065
1,000,000 MBIA, Inc.
7.00% due 12/15/25.......... 893,195
1,000,000 NationsBank Corp.
7.80% due 09/15/16.......... 1,000,049
@2,000,000 New England Mutual Life
Insurance
7.875% due 02/15/24......... 1,943,716
@2,000,000 Prudential Funding Corp.
6.75% due 09/15/23.......... 1,719,360
2,055,000 Sprint Capital Corp.
6.125% due 11/15/08......... 1,863,071
2,000,000 Torchmark Corp.
8.25% due 08/15/09.......... 1,997,094
</TABLE>
37
<PAGE> 38
THE HARTFORD ADVISERS FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL
SERVICES -- (CONTINUED)
$ 2,000,000 Toyota Motor Credit Corp.
5.50% due 12/15/08.......... $ 1,740,360
2,000,000 Transamerica Financial
6.125% due 11/01/01......... 1,961,436
4,000,000 TXU Eastern Funding
6.45% due 05/15/05.......... 3,767,548
@5,000,000 USAA Capital Corp.
6.90% due 11/01/02.......... 4,961,835
3,000,000 Wachovia Corp.
5.625% due 12/15/08......... 2,611,530
5,000,000 Wells Fargo & Co.
6.50% due 09/03/02.......... 4,943,700
--------------
70,440,381
--------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
2,000,000 Hershey Foods Corp.
7.20% due 08/15/27.......... 1,862,922
3,000,000 Whitman Corp.
6.375% due 05/01/09......... 2,751,567
--------------
4,614,489
--------------
HEALTH CARE -- 0.3%
2,000,000 American Home Products Corp.
7.25% due 03/01/23.......... 1,874,956
2,000,000 Becton, Dickinson & Co.
6.70% due 08/01/28.......... 1,736,760
1,000,000 United HealthCare Corp.
6.60% due 12/01/03.......... 964,519
--------------
4,576,235
--------------
INDUSTRIAL MATERIALS -- 1.4%
2,000,000 Alcan Aluminum Ltd.
7.25% due 11/01/28.......... 1,818,088
2,000,000 Archer-Daniels-Midland Co.
8.125% due 06/01/12......... 2,063,366
500,000 ICI Wilmington
6.95% due 09/15/04.......... 487,332
@3,000,000 Monsanto Co.
6.60% due 12/01/28 ......... 2,578,203
1,000,000 Praxair, Inc.
6.15% due 04/15/03 ......... 963,953
2,000,000 Rockwell International Corp.
6.70% due 01/15/28.......... 1,754,016
4,000,000 Rohm & Haas Co.
7.40% due 07/15/09.......... 3,969,848
2,500,000 USX Corp.
6.65% due 02/01/06.......... 2,366,007
4,000,000 Vulcan Materials Co.
5.75% due 04/01/04.......... 3,810,076
3,000,000 Washington Post Co.
5.50% due 02/15/09.......... 2,637,573
500,000 Williams Cos., Inc. (The)
6.50% due 11/15/02.......... 489,748
--------------
22,938,210
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
MANUFACTURING -- 0.5%
$ 2,000,000 Danaher Corp.
6.00% due 10/15/08.......... $ 1,798,602
5,000,000 Eaton Corp.
6.95% due 11/15/04.......... 4,890,030
2,000,000 Parker Hannifin Corp.
5.65% due 09/15/03.......... 1,897,680
--------------
8,586,312
--------------
MEDIA & SERVICES -- 0.0%
500,000 Scripps (E.W.) Co. (The)
6.375% due 10/15/02......... 491,924
--------------
RETAIL -- 1.1%
4,000,000 Albertson's, Inc.
6.55% due 08/01/04.......... 3,897,456
1,345,000 Dayton-Hudson Corp.
5.875% due 11/01/08......... 1,214,245
2,000,000 Gap, Inc. (The)
6.90% due 09/15/07.......... 1,933,412
@5,000,000 Home Depot, Inc. (The)
6.50% due 09/15/04.......... 4,901,750
6,000,000 Wal-Mart Stores, Inc.
6.875% due 08/10/09......... 5,840,748
--------------
17,787,611
--------------
SOFTWARE & SERVICES -- 0.1%
1,000,000 Computer Associates
International, Inc.
6.50% due 04/15/08.......... 902,753
--------------
UTILITIES -- 0.9%
4,000,000 Alabama Power Co.
7.125% due 08/15/04......... 3,973,416
3,000,000 AT&T Corp.
6.50% due 03/15/29.......... 2,568,466
4,000,000 Duke Energy Corp.
5.375% due 01/01/09......... 3,447,604
4,000,000 National Fuel & Gas
6.00% due 03/01/09.......... 3,512,736
1,000,000 New York Telephone Co.
6.00% due 04/15/08.......... 901,482
@1,150,000 Northern Border Pipeline
7.75% due 09/01/09.......... 1,124,551
--------------
15,528,257
--------------
Total corporate notes........ $ 161,374,868
==============
U.S. TREASURIES & FEDERAL AGENCIES -- 21.3%
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 1.9%
$28,990,631 6.00% due
06/15/28 - 01/15/29......... $ 26,396,730
4,815,805 6.50% due
04/15/26 - 12/15/28......... 4,523,846
1,065,419 7.00% due
07/15/23 - 04/15/26......... 1,034,686
--------------
31,955,262
--------------
U.S. TREASURY BONDS -- 3.0%
53,000,000 6.25% due 08/15/23........... 49,985,625
--------------
U.S. TREASURY NOTES -- 16.4%
9,500,000 4.625% due 12/31/00.......... 9,363,437
16,300,000 4.875% due 03/31/01.......... 16,045,312
</TABLE>
The accompanying notes are an integral part of this financial statement.
38
<PAGE> 39
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED)
U.S. TREASURY
NOTES -- (CONTINUED)
$21,000,000 5.25% due 05/31/01........... $ 20,737,500
20,000,000 5.625% due 05/15/08.......... 18,812,500
63,000,000 5.75% due
06/30/01 - 04/30/03......... 62,240,640
24,750,000 5.875% due 11/15/05.......... 24,030,715
19,800,000 6.125% due 08/15/07.......... 19,298,822
24,550,000 6.375% due 08/15/02.......... 24,596,031
50,550,000 6.50% due
08/15/05 - 10/15/06......... 50,466,905
21,750,000 7.50% due
11/15/01 - 02/15/05......... 22,353,281
--------------
267,945,143
--------------
Total U.S. treasuries &
federal agencies............ $ 349,886,030
==============
SHORT-TERM SECURITIES -- 5.9%
REPURCHASE AGREEMENT -- 5.9%
97,056,000 Interest in $1,811,499,000
joint repurchase agreement
dated 12/31/99 with State
Street Bank 2.578% due
01/03/00; maturity amount
$97,076,858 (Collateralized
by $728,431,000 U.S.
Treasury Notes 4.875% -
8.00% due
02/15/01 - 05/15/07,
$791,479,000 U.S. Treasury
Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21,
$465,787,000 U.S. Treasury
Strips 0.00% due 05/15/10 -
05/15/20)................... $ 97,056,000
--------------
Total short-term
securities.................. $ 97,056,000
==============
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$842,860,707).................... 62.0% $1,017,013,000
Total corporate notes (cost
$173,612,219).................... 9.8 161,374,868
Total U.S. treasuries & federal
agencies (cost $363,583,897)..... 21.3 349,886,030
Total short-term securities (cost
$97,056,000)..................... 5.9 97,056,000
----- --------------
Total investment in securities
(total cost $1,477,112,823)...... 99.0 1,625,329,898
Cash, receivables and other
assets........................... 1.1 17,905,660
Payable for Fund shares redeemed... (0.1) (2,402,593)
Other liabilities.................. (0.0) (595,258)
----- --------------
Net assets......................... 100.0% $1,640,237,707
===== ==============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
400,000,000 shares authorized;
96,641,770 shares outstanding........... $ 96,642
Paid-in surplus........................... 1,474,256,378
Accumulated undistributed net investment
income.................................. 278,931
Accumulated undistributed net realized
gain on investments..................... 17,388,681
Unrealized appreciation of investments.... 148,217,075
--------------
Net assets................................ $1,640,237,707
==============
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($693,135,747 / 40,723,334 shares outstanding)
(175,000,000 shares authorized)................ $17.02
======
Maximum offering price per
share($17.02 / 94.5%).......................... $18.01
======
Class B
Net asset value per share and maximum offering
price per share ($555,337,645 / 32,927,308
shares outstanding) (75,000,000 shares
authorized).................................... $16.87
======
Class C
Net asset value per share
($323,631,470 / 19,019,796 shares outstanding)
(50,000,000 shares authorized)................. $17.02
======
Maximum offering price per
share($17.02 / 99.0%).......................... $17.19
======
Class Y
Net asset value per share and maximum offering
price per share ($68,132,845 / 3,971,332 shares
outstanding) (100,000,000 shares authorized)... $17.16
======
</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 to qualified institutional buyers. As of December 31, 1999, the market
value of these securities amounted to $28,398,800 or 1.7% of net assets.
39
<PAGE> 40
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.2%
$ 100,000 DLJ Commercial Mortgage Corp.,
Series 1998-CF1, Class B2
7.33% due 01/15/10............ $ 86,014
-----------
Total collateralized mortgage
obligations................... $ 86,014
===========
CORPORATE NOTES -- 88.2%
AEROSPACE & DEFENSE -- 0.9%
@$450,000 Condor Systems, Inc.
11.875% due 05/01/09.......... 338,062
-----------
COMMUNICATIONS EQUIPMENT -- 1.4%
@207,000 Global Crossing Ltd.
9.50% due 11/15/09............ 203,895
175,000 Global Crossing Ltd.
9.625% due 05/15/08........... 175,000
100,000 Jones Intercable, Inc.
10.50% due 03/01/08........... 105,578
-----------
484,473
-----------
COMPUTERS & OFFICE EQUIPMENT -- 1.3%
422,000 UNISYS Corp.
12.00% due 04/15/03........... 450,485
-----------
CONSUMER DURABLES -- 1.5%
125,000 Simmons Co.
10.25% due 03/15/09........... 118,281
@400,000 Tenneco Automotive, Inc.
11.625% due 10/15/09.......... 408,000
-----------
526,281
-----------
CONSUMER SERVICES -- 1.1%
200,000 Regal Cinemas, Inc.
9.50% due 06/01/08............ 151,000
250,000 Six Flags Entertainment Corp.
8.875% due 04/01/06........... 244,062
-----------
395,062
-----------
ELECTRONICS -- 0.3%
100,000 Advanced Micro Devices, Inc.
11.00% due 08/01/03........... 99,750
-----------
ENERGY & SERVICES -- 11.4%
150,000 Belco Oil & Gas Corp.
8.875% due 09/15/07........... 143,250
175,000 Clark Refining & Marketing,
Inc.
8.375% due 11/15/07........... 108,500
150,000 Clark Refining & Marketing,
Inc.
8.625% due 08/15/08........... 93,000
225,000 CMS Energy Corp.
6.75% due 01/15/04............ 208,621
50,000 CODA Energy, Inc.
10.50% due 04/01/06........... 51,250
325,000 Cogentrix Energy, Inc.
8.75% due 10/15/08............ 309,968
50,000 Cross Timbers Oil Co.
8.75% due 11/01/09............ 47,750
50,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05........... 48,500
100,000 Gulf Canada Resources Ltd.
9.625% due 07/01/05........... 102,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
ENERGY &
SERVICES -- (CONTINUED)
$ 100,000 Newpark Resources, Inc.
8.625% due 12/15/07........... $ 93,000
103,000 Nuevo Energy Co.
9.50% due 06/01/08............ 102,227
@450,000 Plains Resources, Inc.
10.25% due 03/15/06........... 436,500
650,000 Pogo Producing Co.
10.375% due 02/15/09.......... 669,500
150,000 R&B Falcon Corp.
6.50% due 04/15/03............ 137,250
100,000 R&B Falcon Corp.
7.375% due 04/15/18........... 77,500
525,000 R&B Falcon Corp.
11.375% due 03/15/09.......... 561,750
425,000 Seagull Energy Corp.
7.50% due 09/15/27............ 349,196
100,000 Tesoro Petroleum Corp.
9.00% due 07/01/08............ 95,500
400,000 Tuboscope, Inc.
7.50% due 02/15/08............ 332,000
125,000 Vintage Petroleum, Inc.
9.75% due 06/30/09............ 127,812
-----------
4,095,574
-----------
FINANCIAL SERVICES -- 0.7%
250,000 Sumitomo Bank International
Finance N.V.
8.50% due 06/15/09............ 254,152
-----------
FOOD, BEVERAGE & TOBACCO --2.2%
240,000 Canandaigua Brands, Inc.
8.625% due 08/01/06........... 239,100
200,000 Chiquita Brands International,
Inc.
10.00% due 06/15/09........... 144,500
200,000 Chiquita Brands International,
Inc.
10.25% due 11/01/06........... 145,000
150,000 Keebler Foods Co.
10.75% due 07/01/06........... 161,070
100,000 New World Pasta Co.
9.25% due 02/15/09............ 90,000
-----------
779,670
-----------
HEALTH CARE -- 8.8%
300,000 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27............ 220,992
250,000 Columbia/HCA Healthcare Corp.
9.00% due 12/15/14............ 241,223
800,000 Genesis Health Ventures, Inc.
9.25% due 10/01/06............ 328,000
250,000 HealthSouth Corp.
6.875% due 06/15/05........... 218,701
340,000 HealthSouth Corp.
7.00% due 06/15/08............ 279,719
@800,000 Iasis Healthcare Corp.
13.00% due 10/15/09........... 824,000
200,000 Owens & Minor, Inc.
10.875% due 06/01/06.......... 206,000
125,000 Quorum Health Group, Inc.
8.75% due 11/01/05............ 119,687
</TABLE>
The accompanying notes are an integral part of this financial statement.
40
<PAGE> 41
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
$ 300,000 Tenet Healthcare Corp.
8.00% due 01/15/05............ $ 287,250
100,000 Tenet Healthcare Corp.
8.625% due 12/01/03........... 98,705
350,000 Universal Health Services, Inc.
8.75% due 08/15/05............ 344,253
-----------
3,168,530
-----------
HOME BUILDING -- 1.1%
50,000 Del Webb Corp.
9.375% due 05/01/09........... 45,687
50,000 Del Webb Corp.
10.25% due 02/15/10........... 48,625
100,000 MDC Holdings, Inc.
8.375% due 02/01/08........... 92,000
125,000 Toll Corp.
7.75% due 09/15/07............ 114,531
100,000 Toll Corp.
8.75% due 11/15/06............ 98,250
-----------
399,093
-----------
HOTELS & GAMING -- 2.8%
80,000 Harrah's Operating Co., Inc.
7.875% due 12/15/05........... 77,300
200,000 HMH Properties, Inc.
8.45% due 12/01/08............ 185,000
25,000 La Quinta Inns, Inc.
7.25% due 03/15/04............ 21,943
100,000 La Quinta Inns, Inc.
7.40% due 09/15/05............ 84,242
280,000 Mandalau Resort Group
7.625% due 07/15/13........... 243,600
200,000 MGM Grand, Inc.
6.875% due 02/06/08........... 177,167
25,000 Starwood Hotels & Resorts
Worldwide, Inc.
6.75% due 11/15/05............ 21,439
250,000 Starwood Hotels & Resorts
Worldwide, Inc.
7.375% due 11/15/15........... 191,184
-----------
1,001,875
-----------
INDUSTRIAL -- 14.8%
300,000 AK Steel Corp.
7.875% due 02/15/09........... 283,500
100,000 American Standard Co., Inc.
7.375% due 04/15/05........... 94,625
225,000 ARCO Chemical Co.
9.80% due 02/01/20............ 225,067
100,000 Bethlehem Steel Corp.
7.625% due 08/01/04........... 92,680
285,000 Browning-Ferris Industries,
Inc.
7.40% due 09/15/35............ 201,606
200,000 Call-Net Enterprises, Inc.
8.00% due 08/15/08............ 154,500
150,000 CSC Holdings, Inc.
8.125% due 07/15/09........... 149,812
250,000 CSC Holdings, Inc.
9.875% due 02/15/13........... 261,875
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
INDUSTRIAL -- (CONTINUED)
$ 125,000 Equistar Chemicals LP
8.75% due 02/15/09............ $ 123,178
100,000 Federal-Mogul Corp.
7.375% due 01/15/06........... 91,625
200,000 Federal-Mogul Corp.
7.50% due 01/15/09............ 178,152
275,000 Fisher Scientific
International, Inc.
9.00% due 02/01/08............ 263,656
87,000 Fisher Scientific
International, Inc.
9.00% due 02/01/08............ 83,411
100,000 General Chemical Industrial
Products, Inc.
10.625% due 05/01/09.......... 99,000
170,000 Georgia Gulf Corp.
7.625% due 11/15/05........... 156,016
@20,000 Georgia Gulf Corp.
10.375% due 11/01/07.......... 20,875
@300,000 Huntsman Corp.
9.50% due 07/01/07............ 284,250
@390,000 Huntsman ICI Chemicals LLC
10.125% due 07/01/09.......... 403,650
200,000 Inco Ltd.
9.60% due 06/15/22............ 194,075
125,000 ISP Holdings, Inc.
9.00% due 10/15/03............ 121,875
@400,000 LTV Corp.
11.75% due 11/15/09........... 416,000
50,000 Lyondell Chemical Co.
9.625% due 05/01/07........... 51,125
200,000 Pioneer Natural Resources Co.
6.50% due 01/15/08............ 169,712
275,000 Pioneer Natural Resources Co.
7.20% due 01/15/28............ 208,428
100,000 Placer Dome, Inc.
7.125% due 06/15/07........... 91,743
450,000 Polaroid Corp.
11.50% due 02/15/06........... 445,500
275,000 Sequa Corp.
9.00% due 08/01/09............ 266,062
170,000 WHX Corp.
10.50% due 04/15/05........... 166,175
-----------
5,298,173
-----------
MANUFACTURING -- 0.8%
75,000 Hayes Lemmerz International,
Inc.
8.25% due 12/15/08............ 69,000
200,000 Kaufman and Broad Home Corp.
9.625% due 11/15/06........... 202,000
-----------
271,000
-----------
MEDIA & SERVICES -- 5.7%
150,000 Comcast Corp.
10.25% due 10/15/01........... 156,750
200,000 Echostar Communications Corp.
9.375% due 02/01/09........... 201,000
375,000 Fox Kids Worldwide, Inc.
9.25% due 11/01/07............ 345,937
150,000 Fox/Liberty Networks LLC
8.875% due 08/15/07........... 153,000
</TABLE>
41
<PAGE> 42
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
$ 225,000 Hollinger International
Publishing, Inc.
9.25% due 02/01/06............ $ 222,750
250,000 PRIMEDIA, Inc.
10.25% due 06/01/04........... 260,000
450,000 Teligent, Inc.
11.50% due 12/01/07........... 434,250
100,000 Time Warner Telecom, Inc.
9.75% due 07/15/08............ 103,000
175,000 World Color Press, Inc.
7.75% due 02/15/09............ 166,250
-----------
2,042,937
-----------
PACKAGING & CONTAINERS -- 3.7%
175,000 Container Corp. of America
11.25% due 05/01/04........... 182,875
145,000 Domtar, Inc.
8.75% due 08/01/06............ 147,900
300,000 Domtar, Inc.
9.50% due 08/01/16............ 321,000
162,000 Owens-Illinois, Inc.
7.80% due 05/15/18............ 139,031
250,000 Packaging Corp. of America
9.625% due 04/01/09........... 255,312
150,000 Stone Container Corp.
10.75% due 10/01/02........... 155,250
125,000 Stone Container Corp.
12.58% due 08/01/16........... 132,968
-----------
1,334,336
-----------
REAL ESTATE -- 1.3%
400,000 Crescent Real Estate Equities
Co. (REIT)
7.00% due 09/15/02............ 362,960
100,000 Trizec Finance Ltd.
10.875% due 10/15/05........... 102,250
-----------
465,210
-----------
RETAIL -- 4.0%
225,000 Ahold Finance USA, Inc.
11.875% due 11/01/08.......... 226,125
400,000 Ames Department Stores, Inc.
10.00% due 04/15/06........... 392,000
275,000 Duane Reade, Inc.
9.25% due 02/15/08............ 269,156
50,000 Kmart Corp.
7.75% due 10/01/12............ 44,239
475,000 Kmart Corp.
7.95% due 02/01/23............ 412,779
72,000 Kmart Corp.
12.50% due 03/01/05........... 81,087
-----------
1,425,386
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
SHIPBUILDING -- 0.7%
$ 100,000 Newport News Shipbuilding, Inc.
8.625% due 12/01/06........... $ 98,750
150,000 Newport News Shipbuilding, Inc.
9.25% due 12/01/06............ 149,625
-----------
248,375
-----------
TELECOMMUNICATIONS -- 15.2%
200,000 Adelphia Communications Corp.
8.375% due 02/01/08........... 185,500
147,000 Adelphia Communications Corp.
9.25% due 10/01/02............ 146,265
175,000 Adelphia Business Solutions,
Inc.
12.00% due 11/01/07........... 186,375
500,000 Charter Communications
Holdings LLC
8.625% due 04/01/09........... 461,875
150,000 Flag Ltd.
8.25% due 01/30/08............ 138,000
125,000 Lanfest Communications, Inc.
10.50% due 06/15/06........... 140,000
650,000 Level 3 Communications, Inc.
0.00% due 12/01/08............ 393,250
250,000 Loral Space & Communications
Ltd.
9.50% due 01/15/06............ 225,000
100,000 McLeodUSA, Inc.
8.125% due 02/15/09........... 93,250
100,000 McLeodUSA, Inc.
9.25% due 07/15/07............ 99,875
100,000 McLeodUSA, Inc.
9.50% due 11/01/08............ 101,250
400,000 Metromedia Fiber Network, Inc.
10.00% due 11/15/08........... 409,000
@500,000 Nextel Communications, Inc.
9.375% due 11/15/09........... 490,000
125,000 Nextel Communications, Inc.
9.75% due 08/15/04............ 128,750
300,000 NEXTLINK Communications, Inc.
10.75% due 11/15/08........... 309,000
150,000 NEXTLINK Communications, Inc.
12.50% due 04/15/06........... 161,625
125,000 Price Communications Wireless,
Inc.
9.125% due 12/15/06........... 126,562
@445,000 PSINet, Inc.
10.50% due 12/01/06........... 448,337
400,000 RCN Corp.
10.125% due 01/15/10.......... 398,000
242,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.......... 255,310
150,000 Rogers Cantel, Inc.
9.375% due 06/01/08........... 156,000
250,000 Telewest Communications PLC
11.25% due 11/01/08........... 271,250
@100,000 Voicestream Wireless Corp.
10.375% due 11/15/09.......... 103,000
-----------
5,427,474
-----------
</TABLE>
The accompanying notes are an integral part of this financial statement.
42
<PAGE> 43
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
TEXTILE -- 1.4%
@$ 550,000 Levi Straus & Co.
7.00% due 11/01/06............ $ 413,060
100,000 WestPoint Stevens, Inc.
7.875% due 06/15/05........... 91,500
-----------
504,560
-----------
TRANSPORTATION -- 1.9%
50,000 AMR Corp.
10.00% due 03/07/01........... 51,478
75,000 Interpool, Inc.
7.35% due 08/01/07............ 61,814
500,000 Teekay Shipping Corp.
8.32% due 02/01/08............ 452,500
100,000 United Air Lines, Inc.
9.125% due 01/15/12........... 103,152
-----------
668,944
-----------
UTILITIES -- 3.4%
425,000 AES Corp. (The)
9.50% due 06/01/09............ 428,718
75,000 AES Corp. (The)
10.25% due 07/15/06........... 76,125
100,000 Calpine Corp.
7.625% due 04/15/06........... 95,250
200,000 Calpine Corp.
9.25% due 02/01/04............ 201,500
300,000 Calpine Corp.
7.875% due 04/01/08........... 287,250
125,000 El Paso Electric Co.
9.40% due 05/01/11............ 133,607
-----------
1,222,450
-----------
WASTE MANAGEMENT -- 1.8%
@490,000 Allied Waste North American,
Inc.
10.00% due 08/01/09........... 438,550
@265,000 Waste Management, Inc.
7.375% due 05/15/29........... 208,714
-----------
647,264
-----------
Total corporate notes.......... $31,549,116
===========
FOREIGN/YANKEE BONDS & NOTES -- 4.6%
FOREIGN CORPORATIONS -- 2.8%
400,000 British Sky Broadcasting Group
PLC
8.20% due 07/15/09............ $ 384,466
@215,000 Kappa Behear BV
10.625% due 07/15/09.......... 227,346
400,000 Petroleos Mexicanos
9.50% due 09/15/27............ 400,000
-----------
1,011,812
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
FOREIGN GOVERNMENTS -- 1.8%
$ 100,000 Republic of Colombia
8.375% due 02/15/27........... $ 76,500
500,000 Republic of Ecuador
6.75% due 02/28/25............ 189,675
250,000 Republic of Panama
8.875% due 09/30/27........... 210,000
190,475 Republic of Venezuela
7.00% due 12/18/07............ 148,818
-----------
624,993
-----------
Total foreign/yankee bonds &
notes......................... $ 1,636,805
===========
<CAPTION>
SHARES
- ------------
<C> <S> <C>
UTILITIES -- 0.5%
8,000 Coastal Finance Corp.
(TOPeR)....................... $ 181,000
-----------
Total preferred stocks......... $ 181,000
===========
<CAPTION>
PRINCIPAL
AMOUNT
- ------------
<C> <S> <C>
REPURCHASE AGREEMENT -- 4.2%
$ 1,500,000 Interest in $208,259,000 joint
repurchase agreement dated
12/31/99 with State Street Bank
2.80% due 01/03/00; maturity
amount $1,500,350
(Collateralized by $211,642,000
U.S. Treasury Notes
5.50% - 6.875% due
05/15/01 - 05/15/06)........... $ 1,500,000
-----------
Total short-term securities.... $ 1,500,000
===========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total collateralized mortgage
obligations (cost $93,799)......... 0.2% $ 86,014
Total corporate notes (cost
$32,465,257)....................... 88.2 31,549,116
Total foreign/yankee bonds & notes
(cost $1,711,185).................. 4.6 1,636,805
Total preferred stock (cost
$196,000).......................... 0.5 181,000
Total short-term securities
(cost $1,500,000).................. 4.2 1,500,000
----- -----------
Total investment in securities
(total cost $35,966,241)........... 97.7 34,952,935
Cash, receivables and other assets... 2.5 934,045
Payable for Fund shares redeemed..... (0.1) (52,598)
Other liabilities.................... (0.1) (45,943)
----- -----------
Net assets........................... 100.0% $35,788,439
===== ===========
</TABLE>
43
<PAGE> 44
THE HARTFORD HIGH YIELD FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
-----------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 3,669,986
shares outstanding......................... $ 3,670
Paid-in surplus.............................. 36,954,814
Accumulated undistributed net investment
income..................................... 32,181
Accumulated net realized loss on
investments................................ (188,475)
Unrealized depreciation of investments....... (1,013,306)
Unrealized depreciation of other assets and
liabilities in foreign currencies.......... (445)
-----------
Net assets................................... $35,788,439
===========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value per share
($17,465,458 / 1,790,415 shares outstanding)
(125,000,000 shares authorized)............... $9.75
======
Maximum offering price per share
($9.75 / 95.5%)............................... $10.21
======
Class B
Net asset value per share and maximum offering
price per share ($7,436,112 / 763,103 shares
outstanding) (75,000,000 shares authorized)... $9.74
======
Class C
Net asset value per share ($8,572,919 / 879,837
shares outstanding) (50,000,000 shares
authorized)................................... $9.74
======
Maximum offering price per share
($9.74 / 99.0%)............................... $9.84
======
Class Y
Net asset value per share and maximum offering
price per share ($2,313,950 / 236,631 shares
outstanding) (50,000,000 shares authorized)... $9.78
======
</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 December 31, 1999, the market
value of these securities amounted to $5,664,239 or 15.8% of net assets.
The accompanying notes are an integral part of this financial statement.
44
<PAGE> 45
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 1.0%
$ 1,000,000 California Infrastructure
Pacific Gas & Electric, Series
1997-1, Class A6
6.38% due 09/25/08............ $ 972,040
250,000 California Infrastructure
Southern California Edison
Co., Series 1997-1, Class A5
6.28% due 09/25/05............ 245,582
-----------
Total asset-backed
securities.................... $ 1,217,622
===========
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 1.1%
51,221 Capital Lease Funding
Securitization, Series
1997-CTL1, Class A1
7.421% due 06/22/24........... $ 51,209
600,000 Comed Transitional Funding
Trust, Series 1998-1, Class A5
5.44% due 03/25/07............ 564,684
575,000 DLJ Commercial Mortgage Corp.,
Series 1998-CF1, Class B2
7.33% due 01/15/10............ 494,580
226,492 Premier Auto Trust, Series
1998-5, Class A2
5.07% due 04/09/01............ 225,899
-----------
Total commercial
mortgage-backed securities.... $ 1,336,372
===========
CORPORATE NOTES -- 51.0%
AEROSPACE & DEFENSE -- 2.2%
1,000,000 Lockheed Martin Corp.
7.95% due 12/01/05............ $ 992,558
1,000,000 Textron, Inc.
6.375% due 07/15/04........... 964,588
850,000 United Technologies Corp.
6.50% due 06/01/09............ 800,008
-----------
2,757,154
-----------
COLLEGES -- 1.4%
1,300,000 Massachusetts Institute of
Technology
7.25% due 11/02/2096.......... 1,236,718
500,000 Yale University
7.375% due 04/15/2096......... 458,461
-----------
1,695,179
-----------
COMMUNICATIONS EQUIPMENT -- 1.8%
@1,300,000 Global Crossing Ltd.
9.50% due 11/15/09............ 1,280,500
500,000 Hughes Electronic Corp.
7.472% due 10/23/00........... 498,750
400,000 Jones Intercable, Inc.
10.50% due 03/01/08........... 422,312
-----------
2,201,562
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
COMPUTERS & OFFICE EQUIPMENT -- 0.8%
$ 600,000 International Business Machines
Corp.
7.25% due 11/01/02............ $ 607,966
250,000 UNISYS Corp.
11.75% due 10/15/04........... 273,125
150,000 UNISYS Corp.
12.00% due 04/15/03........... 160,125
-----------
1,041,216
-----------
CONSUMER DURABLES -- 0.4%
500,000 TRW, Inc.
7.125% due 06/01/09........... 475,067
-----------
ENERGY & SERVICES -- 8.1%
1,150,000 Amoco Co.
6.00% due 06/09/08............ 1,054,285
200,000 Clark Refining & Marketing,
Inc.
8.375% due 11/15/07........... 124,000
250,000 CMS Energy Corp.
6.75% due 01/15/04............ 231,768
100,000 CMS Energy Corp.
7.50% due 01/15/09............ 90,273
400,000 CMS Panhandle Holding Co.
6.125% due 03/15/04........... 378,487
1,600,000 Conoco, Inc.
5.90% due 04/15/04............ 1,525,568
600,000 Conoco, Inc.
6.95% due 04/15/29............ 539,552
550,000 Enterprise Oil PLC
6.50% due 05/01/05............ 513,717
300,000 Enterprise Oil PLC
6.70% due 09/15/07............ 278,170
100,000 Gulf Canada Resources Ltd.
8.25% due 03/15/17............ 87,049
200,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05........... 194,000
300,000 Lasmo (USA), Inc.
8.375% due 06/01/23........... 302,825
650,000 Noble Drilling Corp.
7.50% due 03/15/19............ 620,497
1,150,000 Occidental Petroleum Corp.
7.375% due 11/15/08........... 1,119,257
500,000 Ocean Energy, Inc.
7.625% due 07/01/05........... 475,000
180,000 R&B Falcon Corp.
6.75% due 04/15/05............ 161,550
200,000 R&B Falcon Corp.
7.375% due 04/15/18........... 155,000
1,000,000 R&B Falcon Corp.
11.375% due 03/15/09.......... 1,070,000
1,150,000 Seagull Energy Corp.
7.50% due 09/15/27............ 944,883
100,000 Tesoro Petroleum Corp.
9.00% due 07/01/08............ 95,500
250,000 Tuboscope, Inc.
7.50% due 02/15/08............ 207,500
-----------
10,168,881
-----------
</TABLE>
45
<PAGE> 46
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL SERVICES -- 10.4%
$ 500,000 Bank of New York Co., Inc.
(The)
7.625% due 07/15/02........... $ 504,100
500,000 Bayerische Landesbank (NY)
6.375% due 10/15/05........... 476,387
375,000 CIT Group, Inc. (The)
5.57% due 12/08/03............ 353,083
500,000 CIT Group, Inc. (The)
7.125% due 06/17/02........... 499,729
1,000,000 Ford Motor Credit Co.
5.75% due 02/23/04............ 947,353
500,000 Ford Motor Credit Co.
6.125% due 01/09/06........... 467,815
1,500,000 Ford Motor Credit Co.
7.75% due 11/15/02............ 1,526,088
1,000,000 General Electric Capital Corp.
6.52% due 10/08/02............ 990,989
1,000,000 General Electric Capital Corp.
6.81% due 11/03/03............ 993,503
200,000 General Motors Acceptance Corp.
6.17% due 08/18/03............ 198,693
500,000 Household Finance Corp.
6.00% due 05/01/04............ 474,769
300,000 Inter-American Development Bank
8.50% due 05/01/01............ 307,426
700,000 Inter-American Development Bank
8.875% due 06/01/09........... 780,570
1,000,000 Sprint Capital Corp.
5.70% due 11/15/03............ 949,592
750,000 Sumitomo Bank International
Finance N.V.
8.50% due 06/15/09............ 762,458
300,000 Trenwick Group, Inc.
6.70% due 04/01/03............ 292,800
1,500,000 TXU Eastern Funding
6.15% due 05/15/02............ 1,453,875
725,000 Wachovia Corp.
5.625% due 12/15/08........... 631,119
350,000 Wachovia Corp.
6.25% due 08/01/08............ 322,679
-----------
12,933,028
-----------
FOOD, BEVERAGE & TOBACCO --1.6%
550,000 Golden State Holdings, Inc.
6.75% due 08/01/01............ 530,110
600,000 Marriott International, Inc.
6.875% due 11/15/05........... 566,803
250,000 Ralcorp Holdings, Inc.
8.75% due 09/15/04............ 265,983
700,000 Seagram (J) & Sons, Inc.
6.25% due 12/15/01............ 685,374
-----------
2,048,270
-----------
HEALTH CARE -- 2.4%
250,000 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27............ 184,160
100,000 Columbia/HCA Healthcare Corp.
7.50% due 12/15/23............ 80,028
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
HEALTH CARE -- (CONTINUED)
$ 200,000 Columbia/HCA Healthcare Corp.
7.50% due 11/15/95............ $ 146,522
1,100,000 HealthSouth Corp.
6.875% due 06/15/05........... 962,286
430,000 HealthSouth Corp.
7.00% due 06/15/08............ 353,762
1,360,000 Tenet Healthcare Corp.
8.00% due 01/15/05............ 1,302,200
-----------
3,028,958
-----------
HOME BUILDING -- 0.1%
50,000 U.S. Home Corp.
7.95% due 03/01/01............ 50,120
100,000 U.S. Home Corp.
8.25% due 08/15/04............ 95,375
-----------
145,495
-----------
HOTELS & GAMING -- 0.9%
230,000 Harrah's Operating Co., Inc.
7.875% due 12/15/05........... 222,237
500,000 MGM Grand, Inc.
6.875% due 02/06/08........... 442,919
606,000 Starwood Hotels & Resorts
Worldwide, Inc.
7.375% due 11/15/15........... 463,431
-----------
1,128,587
-----------
INDUSTRIAL -- 5.5%
500,000 Bowater, Inc.
8.50% due 12/15/01............ 507,894
1,000,000 Browning-Ferris Industries,
Inc.
7.40% due 09/15/35............ 707,390
200,000 CSC Holdings, Inc.
7.25% due 07/15/08............ 189,500
150,000 CSC Holdings, Inc.
8.125% due 07/15/09........... 149,812
300,000 du Pont (E.I.) de Nemours & Co.
6.75% due 09/01/07............ 290,031
400,000 du Pont (E.I.) de Nemours & Co.
6.75% due 10/15/04............ 394,615
500,000 Equistar Chemicals LP
8.75% due 02/15/09............ 492,715
100,000 Federal-Mogul Corp.
7.375% due 01/15/06........... 91,625
220,000 Georgia Gulf Corp.
7.625% due 11/15/05........... 201,903
180,000 International Paper Co.
9.05% due 02/08/01............ 183,860
100,000 Mark IV Industries, Inc.
7.50% due 09/01/07............ 90,370
450,000 Pioneer Natural Resources Co.
6.50% due 01/15/08............ 381,852
175,000 Pioneer Natural Resources Co.
7.20% due 01/15/28............ 132,636
400,000 Placer Dome, Inc.
7.125% due 05/15/03........... 388,029
600,000 Placer Dome, Inc.
7.125% due 06/15/07........... 550,459
</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)
INDUSTRIAL -- (CONTINUED)
$ 200,000 Polaroid Corp.
11.50% due 02/15/06........... $ 198,000
750,000 Rohm & Haas Co.
6.95% due 07/15/04............ 741,385
500,000 Vaster Resources, Inc.
6.50% due 04/01/09............ 464,195
700,000 Weyerhaeuser Co.
7.25% due 07/01/13............ 673,844
-----------
6,830,115
-----------
MEDIA & SERVICES -- 3.1%
1,250,000 British Sky Broadcasting Group
PLC
6.875% due 02/23/09........... 1,101,621
200,000 CF Cable TV, Inc.
11.625% due 02/15/05.......... 212,741
700,000 Cox Communications, Inc.
7.50% due 08/15/04............ 703,295
800,000 Fox/Liberty Networks LLC
8.875% due 08/15/07........... 816,000
@500,000 Liberty Media Group
7.875% due 07/15/09........... 497,734
113,000 Paramount Communications, Inc.
7.50% due 07/15/23............ 101,199
200,000 Time Warner Enterprises, Co. LP
8.875% due 10/01/12........... 215,516
100,000 Turner Broadcasting System,
Inc.
7.40% due 02/01/04............ 99,814
100,000 Viacom, Inc.
7.75% due 06/01/05............ 101,086
-----------
3,849,006
-----------
PACKAGING & CONTAINERS -- 0.2%
180,000 Domtar, Inc.
9.50% due 08/01/16............ 192,600
100,000 Owens-Illinois, Inc.
8.10% due 05/15/07............ 95,065
-----------
287,665
-----------
REAL ESTATE -- 0.4%
250,000 Duke Realty LP (REIT)
7.25% due 09/22/02............ 246,638
250,000 Southern Investments UK PLC
6.80% due 12/01/06............ 234,039
-----------
480,677
-----------
RETAIL -- 1.6%
300,000 Ahold Finance USA, Inc.
6.25% due 05/01/09............ 272,157
100,000 Kmart Corp.
7.55% due 07/27/04............ 95,588
500,000 Kmart Corp.
7.75% due 10/01/12............ 442,394
275,000 Kmart Corp.
7.95% due 02/01/23............ 238,977
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
RETAIL -- (CONTINUED)
$ 120,000 Kmart Corp.
12.50% due 03/01/05........... $ 135,146
825,000 Stop & Shop Cos., Inc. (The)
9.75% due 02/01/02............ 862,761
-----------
2,047,023
-----------
TELECOMMUNICATIONS -- 2.1%
1,000,000 AT&T Corp.
6.50% due 03/15/29............ 856,156
500,000 AT&T Corp.
7.00% due 05/15/05............ 495,855
200,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.......... 211,000
500,000 Rogers Cantel, Inc.
9.375% due 06/01/08........... 520,000
500,000 Tele-Communications, Inc.
8.35% due 02/15/05............ 521,116
-----------
2,604,127
-----------
TEXTILE -- 0.6%
@1,000,000 Levi Straus & Co.
7.00% due 11/01/06............ 751,019
TRANSPORTATION -- 1.4%
400,000 AMR Corp.
10.00% due 03/07/01........... 411,830
449,546 Continental Airlines, Inc.
7.461% due 04/01/13........... 431,573
200,000 CSX Corp.
7.25% due 05/01/04............ 198,043
120,000 Interpool, Inc.
7.20% due 08/01/07............ 97,967
600,000 Norfolk Southern Corp.
6.70% due 05/01/00............ 600,720
-----------
1,740,133
-----------
UTILITIES -- 5.7%
250,000 AES Corp. (The)
9.50% due 06/01/09............ 252,187
200,000 Calpine Corp.
7.875% due 04/01/08........... 191,500
500,000 Calpine Corp.
7.625% due 04/15/06........... 476,250
250,000 Cleveland Electric Illuminating
Co.
7.13% due 07/01/07............ 238,793
500,000 Edison International
6.875% due 09/15/04........... 489,656
550,000 Illinois Power Co.
6.25% due 07/15/02............ 535,421
525,000 Niagara Mohawk Power Corp.
6.875% due 03/01/01........... 523,033
226,829 Niagara Mohawk Power Corp.
7.25% due 10/01/02............ 226,072
250,000 Pacific Gas & Electric Co.
7.25% due 03/01/26............ 223,550
1,300,000 Pacific Gas & Electric Co.
7.05% due 03/01/24............ 1,189,316
1,050,000 PacifiCorp
6.375% due 05/15/08........... 971,932
</TABLE>
47
<PAGE> 48
THE HARTFORD BOND INCOME STRATEGY FUND
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
CORPORATE NOTES -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 200,000 PacifiCorp
6.12% due 01/15/06............ $ 186,313
1,000,000 Philadelphia Electric Co.
7.50% due 07/15/02............ 1,004,436
460,000 Philadelphia Electric Co.
5.625% due 11/01/01........... 448,781
125,000 Public Service Electric & Gas
Co.
7.00% due 09/01/24............ 109,899
-----------
7,067,139
-----------
WASTE MANANGEMENT -- 0.3%
@525,000 Waste Management, Inc.
7.375% due 05/15/29........... 413,491
-----------
Total corporate notes.......... $63,693,792
===========
ENHANCED EQUIPMENT TRUST
CERTIFICATES -- 0.1%
87,692 Norwest Airlines Corp. Trust,
Series 2
11.30% due 06/21/14........... $ 96,843
-----------
Total enhanced equipment trust
certificates.................. $ 96,843
===========
FOREIGN/YANKEE BONDS & NOTES -- 2.1%
FOREIGN CORPORATIONS -- 1.0%
200,000 Hydro-Quebec
9.50% due 11/15/30............ $ 237,830
200,000 Hydro-Quebec
8.40% due 01/15/22............ 212,744
500,000 KFW International Finance, Inc.
9.50% due 12/15/00............ 514,118
250,000 Petroleos Mexicanos
9.50% due 09/15/27............ 250,000
-----------
1,214,692
-----------
FOREIGN GOVERNMENTS -- 1.1%
250,000 Province of Alberta
4.875% due 10/29/03........... 234,010
285,000 Province of Manitoba
5.50% due 10/01/08............ 254,955
500,000 Province of Quebec
7.50% due 09/15/29............ 487,170
550,000 Province of Quebec
5.75% due 02/15/09............ 491,227
-----------
1,467,362
-----------
Total foreign/yankee bonds &
notes......................... $ 2,682,054
===========
U.S. TREASURIES & FEDERAL
AGENCIES -- 36.8%
FEDERAL HOME LOAN MORTGAGE
ASSOCIATION -- 1.2%
1,498,681 7.00% due 10/01/29............. $ 1,451,066
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 9.2%
$ 10,160,581 6.00% due 02/01/13 - 08/01/29.. $ 9,575,669
229,081 6.50% due 09/01/28............. 216,768
1,700,000 7.50% due 01/01/30............. 1,681,405
-----------
11,473,842
-----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 6.4%
8,775,255 6.00% due 01/15/29 - 01/01/30.. 7,989,839
-----------
U.S. TREASURY BONDS 10.3%
450,000 6.375% due 08/15/27............ 432,000
310,000 7.50% due 11/15/24............. 338,287
1,300,000 7.875% due 02/15/19............ 1,452,750
1,000,000 8.125% due 08/15/19............ 1,139,375
3,100,000 8.75% due
05/15/17 - 08/15/20........... 3,718,081
3,155,000 8.875% due 08/15/17............ 3,812,621
1,130,000 10.625% due 08/15/15........... 1,538,566
420,000 11.875% due 11/15/03........... 495,862
-----------
12,927,542
-----------
U.S. TREASURY INFLATION-INDEXED
SECURITIES -- 7.1%
458,825 3.375% due 01/15/07............ 450,280
8,787,391 3.625% due 07/15/02 -
04/15/28..................... 8,444,947
-----------
8,895,227
-----------
U.S. TREASURY NOTES -- 2.6%
1,100,000 5.625% due 05/15/01............ 1,091,750
1,100,000 5.75% due 11/30/02............. 1,083,156
100,000 6.25% due 06/30/02............. 99,937
155,000 6.50% due 08/31/01............. 155,629
370,000 6.625% due 03/31/02 -
05/15/07..................... 372,458
460,000 7.50% due 02/15/05............. 479,837
-----------
3,282,767
-----------
Total U.S. treasuries & federal
agencies...................... $46,020,283
===========
SHORT-TERM SECURITIES -- 9.4%
COMMERCIAL PAPER -- 3.7%
900,000 Bell Atlantic Financial
Services
5.90% due 01/19/00............ $ 897,345
300,000 Conoco, Inc.
5.97% due 02/10/00............ 298,010
1,000,000 General Electric Capital Corp.
5.90% due 01/27/00............ 995,738
500,000 Guidant Corp.
6.35% due 02/18/00............ 495,766
500,000 Public Service Electric & Gas
Co.
6.40% due 01/14/00............ 498,844
500,000 TRW, Inc.
6.39% due 02/22/00............ 495,385
1,000,000 Union Oil Co. of California
5.88% due 02/16/00............ 992,486
-----------
4,673,574
-----------
</TABLE>
The accompanying notes are an integral part of this financial statement.
48
<PAGE> 49
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
SHORT-TERM SECURITIES -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
REPURCHASE AGREEMENT -- 5.7%
$ 7,053,000 Interest in $208,259,000 joint
repurchase agreement dated
12/31/99 with State Street
Bank
2.80% due 01/03/00; maturity
amount $7,054,646
(Collateralized by
$211,642,000 U.S. Treasury
Notes 5.50% - 6.875% due
05/15/01 - 05/15/06).......... $ 7,053,000
-----------
Total short-term securities.... $11,726,574
===========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total asset-backed securities
(cost $1,262,940)................. 1.0% $ 1,217,622
Total commercial mortgage-backed
securities (cost $1,417,632)...... 1.1 1,336,372
Total corporate notes
(cost $66,138,790)................ 51.0 63,693,792
Total enhanced equipment trust
certificates (cost $106,382)...... 0.1 96,843
Total foreign/yankee bonds & notes
(cost $2,768,384)................. 2.1 2,682,054
Total U.S. treasuries & federal
agencies (cost $47,678,600)....... 36.8 46,020,283
Total short-term securities
(cost $11,726,574)................ 9.4 11,726,574
----- ------------
Total investment in securities
(total cost $131,099,302)......... 101.5 126,773,540
Cash, receivables and other
assets............................ 1.7 2,171,310
Payable for securities purchased.... (2.1) (2,628,531)
Payable for Fund shares redeemed.... (1.1) (1,327,103)
Other liabilities................... (0.0) (39,022)
----- ------------
Net assets.......................... 100.0% $124,950,194
===== ============
</TABLE>
<TABLE>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
300,000,000 shares authorized; 12,571,132
shares outstanding........................ $ 12,571
Paid-in surplus............................. 131,284,883
Accumulated undistributed net investment
income.................................... 244,961
Accumulated net realized loss on
investments............................... (2,235,520)
Unrealized depreciation of investments...... (4,325,738)
Unrealized depreciation of futures contracts
sec....................................... (30,963)
------------
Net assets.................................. $124,950,194
============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------
<S> <C>
Class A
Net asset value per share ($57,320,342 /
5,770,932 shares outstanding) (125,000,000
shares authorized)............................. $ 9.93
======
Maximum offering price per share
($9.93 / 95.5%)................................ $10.40
======
Class B
Net asset value per share and maximum offering
price per share ($21,442,320 / 2,166,492 shares
outstanding) (75,000,000 shares authorized).... $ 9.90
======
Class C
Net asset value per share ($18,135,768 /
1,826,622 shares outstanding) (50,000,000
shares authorized)............................. $ 9.93
======
Maximum offering price per share
($9.93 / 99.0%)................................ $10.03
======
Class Y
Net asset value per share and maximum offering
price per share ($28,051,764 / 2,807,086 shares
outstanding) (50,000,000 shares authorized).... $ 9.99
======
</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 December 31, 1999, the market
value of these securities amounted to $2,942,744 or 2.4% of net assets.
sec. The Fund had 19 March 2000 U.S. 10 year U.S. Treasury Notes Index Futures
contracts open as of December 31, 1999. These contracts had a value of
$1,806,484 as of December 31, 1999 and were collateralized by Bell
Atlantic Financial Services and General Electric Capital Corp. Commercial
Paper. The discount rates and maturity dates were 5.90% 01/19/00 and 5.90%
01/27/00 respectively.
49
<PAGE> 50
THE HARTFORD MONEY MARKET FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
COMMERCIAL PAPER -- 74.5%
$ 2,000,000 7-Eleven, Inc.
5.63% due 01/18/00............ $ 1,994,682
1,000,000 Abbey National PLC
4.93% due 01/18/00............ 997,671
1,000,000 Abbey National PLC
6.22% due 01/04/00............ 999,508
1,000,000 BankAmerica Corp.
5.05% due 02/14/00............ 993,827
2,000,000 Bemis Co., Inc.
5.33% due 02/07/00............ 1,989,043
2,000,000 Bradford & Bingley Building
Society
5.86% due 04/03/00............ 1,969,723
1,000,000 Campbell Soup Co.
4.83% due 01/31/00............ 995,975
1,000,000 Caterpillar Financial Services
5.85% due 02/28/00............ 990,575
2,000,000 Chase Manhattan Corp. (The)
5.72% due 02/22/00............ 1,983,475
2,000,000 Coca-Cola Co. (The)
6.10% due 01/10/00............ 1,996,950
2,000,000 Countrywide Home Loan, Inc.
6.17% due 01/03/00............ 1,999,314
1,000,000 Daimler Chrysler N.A. Holding
Corp.
5.82% due 03/23/00............ 986,743
2,000,000 Emerson Electric Co.
5.30% due 02/28/00............ 1,982,922
2,000,000 Finova Capital Corp.
5.89% due 01/26/00............ 1,991,819
2,000,000 Fleet Boston Financial Corp.
5.75% due 02/15/00............ 1,985,625
1,000,000 Ford Motor Credit Co.
5.38% due 02/22/00............ 992,228
2,000,000 General Electric Capital Corp.
5.38% due 02/14/00............ 1,986,848
1,000,000 General Electric Capital Corp.
5.88% due 03/08/00............ 989,056
1,000,000 General Mills, Inc.
5.87% due 01/05/00............ 999,347
1,000,000 General Motors Acceptance Corp.
5.93% due 02/07/00............ 993,905
1,000,000 Goldman Sachs Group, Inc.
5.93% due 03/20/00............ 986,986
2,000,000 GTE Corp.
5.40% due 01/26/00............ 1,992,500
2,000,000 Halifax PLC
5.88% due 03/23/00............ 1,973,213
2,000,000 International Lease Finance
Corp.
5.77% due 02/23/00............ 1,983,010
2,000,000 Lucent Technologies, Inc.
4.92% due 01/24/00............ 1,993,713
1,000,000 Market Street Funding
5.80% due 01/25/00............ 996,133
1,000,000 Market Street Funding
5.95% due 03/10/00............ 988,595
1,000,000 Market Street Funding
6.15% due 01/20/00............ 996,754
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -----------
<C> <S> <C>
$ 2,000,000 Merck & Co., Inc.
5.72% due 01/31/00............ $ 1,990,466
2,000,000 Merita Bank Ltd.
5.92% due 03/20/00............ 1,974,017
1,000,000 Merrill Lynch & Co., Inc.
5.06% due 02/07/00............ 994,799
1,000,000 Merrill Lynch & Co., Inc.
5.90% due 03/14/00............ 988,036
1,000,000 Morgan (J.P.) & Co., Inc.
5.93% due 03/10/00............ 988,634
1,000,000 Morgan Stanley Dean Witter &
Co.
5.43% due 01/24/00............ 996,530
2,000,000 National Rural Utilities
5.77% due 03/13/00............ 1,976,920
1,000,000 National Rural Utilities
5.86% due 03/09/00............ 988,931
2,000,000 Nationwide Building Society
5.74% due 02/22/00............ 1,983,417
1,000,000 Old Line Funding Corp.
6.29% due 01/14/00............ 997,728
1,000,000 Pfizer, Inc.
5.88% due 01/20/00............ 996,896
2,000,000 Procter & Gamble Co. (The)
5.86% due 01/11/00............ 1,996,744
976,000 Sara Lee Corp.
5.87% due 01/06/00............ 975,204
1,000,000 Spintab
5.74% due 02/16/00............ 992,665
2,000,000 Stanley Works (The)
5.95% due 03/03/00............ 1,979,505
2,000,000 Volkswagon of America
5.80% due 02/03/00............ 1,989,366
2,000,000 Westpac Banking
5.88% due 04/07/00............ 1,968,313
-----------
Total commercial paper......... $66,508,311
===========
CORPORATE NOTES -- 16.3%
600,000 BankAmerica Corp.
6.315% due 02/09/00........... $ 600,149
1,000,000 Citigroup, Inc.
6.261% due 02/03/00........... 1,000,086
1,000,000 Comerica, Inc.
6.422% due 02/02/00........... 999,974
1,000,000 Dow Chemical Co. (The)
6.021% due 03/15/00........... 999,925
2,000,000 General Mills, Inc.
6.066% due 07/17/00........... 1,998,944
@1,000,000 Goldman Sachs Group, Inc.
6.285% due 02/01/00........... 1,000,000
1,000,000 Morgan (J.P.) & Co., Inc.
6.051% due 02/25/00........... 1,000,028
1,000,000 Texaco Capital, Inc.
6.011% due 05/03/00........... 999,684
1,000,000 Toyota Motor Credit Corp.
6.021% due 01/09/01........... 999,293
2,000,000 Wachovia Corp.
6.131% due 09/14/00........... 1,999,727
</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)
$ 1,000,000 Wells Fargo & Co.
6.01% due 03/10/00............ $ 999,896
2,000,000 Xerox Credit Corp.
6.044% due 12/08/00........... 1,999,311
-----------
Total corporate notes.......... $14,597,017
===========
REPURCHASE AGREEMENT -- 10.4%
9,271,000 Interest in $208,259,000 joint
repurchase agreement dated
12/31/99 with State Street
Bank 2.80% due 01/03/00;
maturity amount $9,273,163
(Collateralized by
$211,642,000 U.S. Treasury
Notes 5.50% - 6.875% due
05/15/01 - 05/15/06).......... $ 9,271,000
-----------
Total repurchase agreement..... $ 9,271,000
===========
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total commercial paper (cost
$66,508,311)....................... 74.5% $66,508,311
Total corporate notes (cost
$14,597,017)....................... 16.3 14,597,017
Total repurchase agreement (cost
$9,271,000)........................ 10.4 9,271,000
----- -----------
Total investment in securities (total
cost $90,376,328).................. 101.2 90,376,328
Cash, receivables and other assets... 1.7 1,544,795
Payable for Fund shares redeemed..... (2.5) (2,300,944)
Payable for dividends................ (0.4) (338,471)
Other liabilities.................... (0.0) (702)
----- -----------
Net assets........................... 100.0% $89,281,006
===== ===========
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
-----------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.001 per share;
800,000,000 shares authorized; 89,281,006
shares outstanding......................... $ 89,281
Paid-in surplus.............................. 89,191,725
-----------
Net assets................................... $89,281,006
===========
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
-----------
<S> <C>
Class A
Shares of beneficial interest outstanding,
$0.001 par value 400,000,000 shares
authorized (Net assets $44,662,566)...... 44,662,566
===========
Net asset value and offering price per
share.................................... $1.00
-----
-----
Class B
Shares of beneficial interest outstanding,
$0.001 par value 200,000,000 shares
authorized (Net assets $25,761,795)...... 25,761,795
===========
Net asset value and offering price per
share.................................... $1.00
-----
-----
Class C
Shares of beneficial interest outstanding,
$0.001 par value 100,000,000 shares
authorized (Net assets $9,904,109)....... 9,904,109
===========
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 beneficial interest outstanding,
$0.001 par value 100,000,000 shares
authorized (Net assets $8,952,536)....... 8,952,536
===========
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 December 31, 1999, the market
value of these securities amounted to $1,000,000 or 1.1% of net assets.
51
<PAGE> 52
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENT OF OPERATIONS
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>
INVESTMENT INCOME:
Dividends................................................ $ 159,532 $ 4,206,544 $ 465,079 $ 1,463,268
Interest................................................. 426,790 2,413,080 157,897 377,009
Less: Foreign tax withheld............................... -- (62,481) (6,191) (165,122)
----------- ------------ ----------- -----------
Total investment income, net........................... 586,322 6,557,143 616,785 1,675,155
----------- ------------ ----------- -----------
EXPENSES:
Investment advisory fees................................. 956,010 6,997,746 801,175 654,008
Transfer agent fees...................................... 201,038 1,857,338 178,876 132,499
Distribution fees
Class A................................................ 189,331 1,662,131 181,497 143,150
Class B................................................ 270,208 3,599,601 200,598 146,819
Class C................................................ 116,888 592,587 130,360 49,106
Class A distribution fees waived....................... (27,184) (238,330) (26,105) (20,498)
Custodian fees, gross.................................... 13,115 51,086 10,812 95,104
Custodian fee expense offset............................. (1,539) (6,802) (508) (320)
Accounting services...................................... 16,980 140,467 14,268 11,582
Registration and filing fees............................. 44,676 263,121 55,123 23,194
Board of Directors fees.................................. 1,303 10,781 1,095 889
Amortization of deferred organizational costs............ 7,535 -- -- 7,535
Other expenses........................................... 31,398 141,672 28,160 24,314
----------- ------------ ----------- -----------
Total expenses, (before reimbursements)................ 1,819,759 15,071,398 1,575,351 1,267,382
Expense reimbursements................................... (8,181) -- (19,156) --
----------- ------------ ----------- -----------
Total expenses, net...................................... 1,811,578 15,071,398 1,556,195 1,267,382
----------- ------------ ----------- -----------
Net investment (loss) income............................. (1,225,256) (8,514,255) (939,410) 407,773
----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 32,432,249 220,479,433 22,597,136 8,106,530
Net realized (loss) gain on forward foreign currency
contracts.............................................. (1,560) 320,510 -- (38,416)
Net realized (loss) on option contracts written.......... -- -- -- --
Net realized gain on futures contracts................... -- -- -- 684,998
Net realized gain (loss) on foreign currency
transactions........................................... 1,593 (555,117) (148) (161,563)
Net unrealized appreciation (depreciation) of
investments............................................ 42,030,444 338,318,773 30,403,220 20,503,245
Net unrealized appreciation (depreciation) of future
contracts.............................................. -- -- -- 403,124
Net unrealized (depreciation) appreciation of foreign
forward currency contracts............................. -- (132,209) -- 41,948
Net unrealized appreciation of purchased options......... -- -- -- --
Net unrealized (depreciation) appreciation on translation
of other assets and liabilities in foreign
currencies............................................. (31) 1,797 -- (20,070)
----------- ------------ ----------- -----------
Net realized and unrealized gain (loss) on investments... 74,462,695 558,433,187 53,000,208 29,519,796
----------- ------------ ----------- -----------
Net increase in net assets resulting from operations..... $73,237,439 $549,918,932 $52,060,798 $29,927,569
=========== ============ =========== ===========
</TABLE>
The accompanying notes are an integral part of this financial statement.
52
<PAGE> 53
- --------------------------------------------------------------------------------
<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>
$ 445,457 $ 10,286,120 $ 592,281 $ 8,068,166 $ 8,065,872 $ 16,750 $ -- $ --
220,227 2,178,833 158,825 637,697 27,765,843 2,443,700 7,090,268 3,789,299
(25,040) (164,468) (1,073) (66,681) (137,601) -- -- --
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
640,644 12,300,485 750,033 8,639,182 35,694,114 2,460,450 7,090,268 3,789,299
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
381,290 7,147,445 412,065 2,838,557 8,125,222 202,354 701,167 360,369
90,057 1,946,831 106,365 742,797 2,347,050 51,958 190,993 135,357
93,025 1,689,053 106,980 750,917 1,787,745 48,556 194,198 141,365
67,808 3,137,282 89,253 1,176,527 4,124,087 48,058 206,425 186,516
95,685 1,468,802 119,392 248,846 2,035,829 60,969 122,735 50,893
(13,443) (242,306) (15,402) (107,424) (256,144) (6,951) (27,778) (20,184)
46,229 10,592 12,738 11,144 13,285 7,945 9,839 6,791
(143) (416) (73) (5,157) (2,689) (2,010) (3,441) (1,853)
6,826 144,185 7,842 56,868 179,267 4,059 16,210 10,823
39,783 412,356 34,750 93,867 454,023 11,097 32,287 22,908
524 11,067 602 4,365 13,759 312 1,244 831
-- 7,535 -- -- -- -- 7,535 7,535
11,323 331,943 14,697 154,895 484,964 8,180 33,414 22,257
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
818,964 16,064,369 889,209 5,966,202 19,306,398 434,527 1,484,828 923,608
-- -- (842) -- -- -- (2,532) (71,757)
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
818,964 16,064,369 888,367 5,966,202 19,306,398 434,527 1,482,296 851,851
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
(178,320) (3,763,884) (138,334) 2,672,980 16,387,716 2,025,923 5,607,972 2,937,448
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
2,295,695 46,125,400 2,168,164 10,178,764 43,410,471 (186,357) (2,195,433) (625)
123,865 -- -- (28,025) -- (4,666) -- --
-- -- -- (22,310) -- -- -- --
-- -- 574,271 -- -- -- -- --
(153,693) (7) -- 19,876 (5) (34) 2 --
28,240,234 159,950,778 10,659,311 2,898,872 77,986,686 (1,182,195) (5,917,733) --
-- -- 21,804 -- -- -- (30,963) --
(10,482) -- -- -- -- -- -- --
-- -- -- 24,973 -- -- -- --
5,572 -- -- 1,029 -- (445) -- --
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
30,501,191 206,076,171 13,423,550 13,073,179 121,397,152 (1,373,697) (8,144,127) (625)
----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------
$30,322,871 $202,312,287 $13,285,216 $15,746,159 $137,784,868 $ 652,226 $(2,536,155) $2,936,823
=========== ============ =========== =========== ============ =========== =========== ==========
</TABLE>
53
<PAGE> 54
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENT 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
============ ============== ============ ============
(Distribution in excess of) accumulated undistributed
net investment income................................. $ -- $ (590,627) $ -- $ (310,754)
============ ============== ============ ============
</TABLE>
The accompanying notes are an integral part of this financial statement.
54
<PAGE> 55
- --------------------------------------------------------------------------------
<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>
55
<PAGE> 56
THE HARTFORD MUTUAL FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
SMALL CAPITAL MIDCAP INTERNATIONAL
COMPANY FUND APPRECIATION FUND FUND OPPORTUNITIES FUND
------------ ----------------- ------------ ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment (loss) income........................... $ (454,318) $ (5,794,332) $ (174,148) $ 273,645
Net realized (loss) gain............................... (4,257,930) (15,459,825) 129,529 (1,992,573)
Net unrealized appreciation of investments............. 10,894,769 32,090,327 4,771,974 5,627,451
----------- ------------ ----------- -----------
Net increase in net assets resulting from operations... 6,182,521 10,836,170 4,727,355 3,908,523
----------- ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A.............................................. -- -- -- (41,500)
Class B.............................................. -- -- -- --
Class C.............................................. -- -- -- (3,377)
Class Y.............................................. -- -- -- (37,687)
From net realized gain on investments
Class A.............................................. (271,473) (2,172,667) -- --
Class B.............................................. (131,872) (1,804,600) -- --
Class C.............................................. -- -- -- --
Class Y.............................................. (103,247) (169,843) -- --
From capital
Class A.............................................. -- -- -- --
Class B.............................................. -- -- -- --
Class C.............................................. -- -- -- --
Class Y.............................................. -- -- -- --
----------- ------------ ----------- -----------
Total distributions.................................. (506,592) (4,147,110) -- (82,564)
----------- ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class A.............................................. 15,445,033 127,426,826 19,029,730 14,249,167
Class B.............................................. 7,306,977 116,849,576 6,757,968 3,691,053
Class C.............................................. 2,358,036 13,508,727 940,059 1,288,344
Class Y.............................................. 2,803,478 (3,521,427) 3,069,631 3,654,992
----------- ------------ ----------- -----------
Net increase from capital share transactions........... 27,913,524 254,263,702 29,797,388 22,883,556
----------- ------------ ----------- -----------
Net increase in net assets............................. 33,589,453 260,952,762 34,524,743 26,709,515
NET ASSETS:
Beginning of period.................................... 38,147,231 437,685,916 3,000,043*** 29,311,073
----------- ------------ ----------- -----------
End of period.......................................... $71,736,684 $698,638,678 $37,524,786 $56,020,588
=========== ============ =========== ===========
Accumulated undistributed (distribution in excess of)
net investment income................................ $ 831 $ (20,872) $ -- $ 73,679
=========== ============ =========== ===========
</TABLE>
* From inception April 30, 1998, to December 31, 1998.
** From inception September 30, 1998, to December 31, 1998.
*** This amount includes seed money deposited in the fund on December 7, 1997.
The accompanying notes are an integral part of this financial statement.
56
<PAGE> 57
- --------------------------------------------------------------------------------
<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>
$ (2,920) $ (890,834) $ 1,435 $ 1,939,182 $ 5,421,704 $ 222,288 $ 2,794,355 $ 1,715,610
192,108 5,767,222 (142,973) 1,355,479 12,814,094 3,092 615,427 678
822,402 65,840,333 2,341,672 24,268,127 53,719,779 168,889 574,704 --
---------- ------------ ----------- ------------ ------------ ----------- ----------- -----------
1,011,590 70,716,721 2,200,134 27,562,788 71,955,577 394,269 3,984,486 1,716,288
---------- ------------ ----------- ------------ ------------ ----------- ----------- -----------
-- -- (1,118) (1,330,894) (3,501,112) (131,217) (1,856,234) (1,250,248)
-- -- (139) (278,341) (1,575,666) (29,122) (465,495) (293,833)
-- -- (106) (40,654) (335,363) (25,775) (49,319) (13,303)
-- -- (72) (188,063) (964,943) (17,821) (415,556) (158,226)
(85,972) (2,436,707) -- (660,247) (4,769,981) -- (332,756) (458)
(11,627) (1,709,941) -- (402,501) (3,555,678) -- (110,679) (148)
(12,093) (499,945) -- (21,621) (1,043,179) -- (28,241) (12)
(10,428) (74,780) -- (66,070) (915,537) -- (72,826) (60)
-- (98,443) (13,420) -- -- -- -- --
-- (69,082) (1,667) -- -- -- -- --
-- (20,198) (868) -- -- -- -- --
-- (3,021) (1,271) -- -- -- -- --
---------- ------------ ----------- ------------ ------------ ----------- ----------- -----------
(120,120) (4,912,117) (18,661) (2,988,391) (16,661,459) (203,935) (3,331,106) (1,716,288)
---------- ------------ ----------- ------------ ------------ ----------- ----------- -----------
3,137,747 164,791,250 9,822,522 100,464,774 189,233,392 8,391,345 18,077,755 6,845,426
398,757 126,414,554 3,098,120 66,777,347 181,342,293 2,290,229 10,923,635 7,486,854
427,321 33,120,833 3,327,559 9,091,056 52,992,750 2,251,555 5,427,294 1,203,354
310,428 690,373 340,604 1,867,464 10,589,232 1,017,821 5,928,169 2,682,545
---------- ------------ ----------- ------------ ------------ ----------- ----------- -----------
4,274,253 325,017,010 16,588,805 178,200,641 434,157,667 13,950,950 40,356,853 18,218,179
---------- ------------ ----------- ------------ ------------ ----------- ----------- -----------
5,165,723 390,821,614 18,770,278 202,775,038 489,451,785 14,141,284 41,010,233 18,218,179
-- 106,567,130 -- 114,843,621 177,740,474 -- 39,090,082 29,665,217
---------- ------------ ----------- ------------ ------------ ----------- ----------- -----------
$5,165,723 $497,388,744 $18,770,278 $317,618,659 $667,192,259 $14,141,284 $80,100,315 $47,883,396
========== ============ =========== ============ ============ =========== =========== ===========
$ 511 $ -- $ -- $ 148,410 $ 248 $ 18,333 $ 60,865 $ --
========== ============ =========== ============ ============ =========== =========== ===========
</TABLE>
57
<PAGE> 58
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION:
The Hartford Mutual Funds, Inc. (the Company) is a diversified open-end
investment management company comprised of twelve diversified portfolios
(each a "Fund" or together the "Funds"). The Company was organized under
the laws of the State of Maryland and are registered with the Securities
and Exchange Commission (SEC) under the Investment Company Act of 1940, as
amended.
The Funds and their investment objectives are listed below:
<TABLE>
<S> <C> <C>
The Hartford Small Company Fund -- Seeks maximum capital appreciation by investing primarily
(Small Company Fund) in 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 stocks
(Capital Appreciation Fund) of small, medium and large companies.
The Hartford MidCap Fund -- Seeks to achieve long-term capital growth through capital
(MidCap Fund) appreciation by investing primarily in equity securities.
The Hartford International Opportunities Fund -- Seeks growth of capital by investing primarily in equity
(International Opportunities Fund) 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 investing
(Growth and Income Fund) 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 with
(Dividend and Growth Fund) growth of capital by investing primarily in equity
securities.
The Hartford Advisers Fund -- Seeks maximum long-term total rate of return by investing
(Advisers Fund) 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.
The Hartford Bond Income Strategy Fund -- Seeks a high level of current income consistent with a
(Bond Income Strategy Fund) 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 liquidity
(Money Market Fund) 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 load 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 load sales charge of up to 1% and a contingent
deferred sales charge of up to 1%. Class Y shares are sold to certain
eligible institutional investors without a sales charge. All classes of
shares have identical voting, redemption, dividend, liquidation and other
rights and the same terms and conditions, except that each class may have
different expenses which may affect performance.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Funds,
which are in accordance with generally accepted accounting principles in
the investment company industry:
a) Security Transactions--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.
58
<PAGE> 59
- --------------------------------------------------------------------------------
b) Security Valuation--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.
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.
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 2f))
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 translated 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.
Net realized and unrealized foreign exchange gains or losses arising
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) 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.
e) Joint Trading Account--Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Funds may transfer uninvested
cash balances into a joint trading account managed by The Hartford
Investment Management Company (HIMCO) or Wellington Management Company
LLP (Wellington). These balances may be invested in one or more
repurchase agreements and/or short-term money market instruments.
f) 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 the last sale price. In the absence of a last sale
price, the last offering price is used. In the
59
<PAGE> 60
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
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, to varying degrees, 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 Funds' strategies and
potentially result in a loss.
The premium paid by the Fund for the purchase of a call or put option
is included in the Fund's Statement of Net Assets as an investment and
subsequently "marked-to-market" through net unrealized appreciation
(depreciation) of options to reflect the current market value of the
option purchased as of the end of the reporting period. If an option
which the 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 it's custodian for the term of the option a "segregated account"
consisting of cash or other liquid securities having a value equal to
the fluctuating market value of the option securities or currencies.
The Fund receives a premium for writing a call or put option, recorded
as a component of other liabilities on the Statement of Net Assets,
which increases the Fund's 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 for the year ended December
31, 1999:
THE HARTFORD DIVIDEND AND GROWTH FUND
WRITTEN OPTIONS CONTRACTS ACTIVITY DURING THE PERIOD
<TABLE>
<CAPTION>
NUMBER OF DOLLAR
CALL WRITES CONTRACTS AMOUNTS
------------------------------------------------------------ --------- ---------
<S> <C> <C>
Beginning of Period......................................... 757 $ 67,057
During the Period........................................... 4,730 463,768
Expired during the period................................... (4,066) (375,232)
Closed during the period.................................... (1,352) (149,659)
Exercised during the period................................. (69) (5,934)
------ ---------
Balance at the end of period................................ -- --
====== =========
</TABLE>
g) Forward Foreign Currency Contracts--As of December 31, 1999, the
Capital Appreciation Fund, the International Opportunities Fund and the
Global Leaders Fund entered into forward foreign currency exchange
contracts that obligate the Fund to repurchase/replace or sell
currencies at specified future dates. The Fund enters into forward
foreign currency contracts to hedge against adverse fluctuations in
exchange rates between currencies.
Forward contracts involve elements of market risk in excess of the
amount reflected in the Statement of Net Assets. In addition, risks may
arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of the contract and from
unanticipated movement in the value of foreign currencies relative to
the U.S. dollar.
h) 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
60
<PAGE> 61
- --------------------------------------------------------------------------------
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.
i) 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.
j) Fund Share Valuation and Dividend Distributions to Shareholders--Orders
for the Fund's shares are executed in accordance with the investment
instructions of the shareholders. Dividend income is accrued as of the
ex-dividend date, except that certain dividends for foreign securities
where the ex-dividend date may have passed, are recorded as soon as the
Fund is informed of the ex-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 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.
Distributions from net investment income and net realized capital gains
are determined in accordance with federal income tax regulations which
may differ from generally accepted accounting principles. These
differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gains and losses, losses
deferred due to wash sales and excise tax regulations. Permanent book
and federal income tax basis differences relating to shareholder
distributions will result in reclassifications to certain of the Funds'
capital accounts (see Note 8).
k) Organizational Costs--As of June 30, 1998, costs incurred by new funds
in connection with their organization, are expensed as incurred in
accordance with Statement of Position 98-5, "Reporting on the Costs of
Start-Up Activities." Costs incurred by the Funds, prior to June 30,
1998, 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 December
31, 1999, are included in the excess of cash, receivables and other
assets over liabilities or the excess of liabilities over cash,
receivables and other assets, as applicable, in each Fund's Statement of
Net Assets.
l) 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.
m) Restricted Securities--Each Fund is permitted to invest up to 15% of its
net assets in illiquid securities, except for the Money Market Fund,
which may invest up to 10% in such securities. "Illiquid Securities" are
those that may not be sold or disposed of in the ordinary course of
business, at approximately the price used to determine a Fund's net
asset value per share. Each Fund may also purchase certain restricted
securities, commonly known as Rule 144A securities, that can be resold
to institutions and which may be determined to be liquid pursuant to
policies and guidelines established by the Funds' Board of Directors.
61
<PAGE> 62
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
3. EXPENSES:
a) Investment Management and Advisory Agreements--Hartford Investment
Financial Services Company (HIFSCO), a wholly-owned indirect subsidiary
of The Hartford Financial Services Group, Inc. (The Hartford), serves
as investment manager to each Fund pursuant to an Investment Advisory
Agreement dated March 3, 1997. As investment manager, HIFSCO has
overall investment supervisory responsibility for each Fund. In
addition HIFSCO provides administrative personnel, services, equipment
and facilities and office space for proper operation of the Funds.
HIFSCO has contracted with Wellington for the provision of day to day
management services to the Small Company Fund, Capital Appreciation
Fund, MidCap Fund, International Opportunities Fund, Global Leaders
Fund, Stock Fund, Growth and Income Fund, Dividend and Growth Fund and
Advisers Fund 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 service 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>
SMALL COMPANY, MIDCAP,
INTERNATIONAL OPPORTUNITIES AND GLOBAL LEADERS FUNDS
<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>
CAPITAL APPRECIATION, STOCK AND
GROWTH AND INCOME FUNDS
<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>
62
<PAGE> 63
- --------------------------------------------------------------------------------
DIVIDEND AND GROWTH, ADVISERS AND
HIGH YIELD FUNDS
<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>
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. During the year ended
December 31, 1999, the following revenues were received by HIFSCO:
<TABLE>
<CAPTION>
FRONT-END LOAD CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
-------------- -------------------
<S> <C> <C>
HIFSCO $52,674,329 $4,498,793
</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
all of the 12b-1 fee for Class B shares may be paid to broker-dealers
for distribution and/or shareholder account services. Under the Class B
Plan, the Fund pays the Distributor 1.00% of the average daily net
assets of Class B shares that are outstanding for 8 years or less, 0.25%
of which is intended as a fee for service provided to existing
shareholders with the remainder used for distribution expenses. After
eight years, Class B shares convert to Class A shares. Upon conversion
to Class A shares the Class A plan described above will apply to those
shares. For Class C shares, some or all of the 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 new assets of Class C shares outstanding, 0.25% of which
is intended as a fee for services provided to existing shareholders with
the remainder used for distribution expenses. 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 voluntarily agreed to limit
the total operating expenses of the Class A, B, C and Y shares of all
the Funds,
63
<PAGE> 64
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
exclusive of taxes, interest, brokerage commissions, certain
distribution expenses and extraordinary expenses, until at least April
30, 2000 as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS B CLASS C CLASS Y
------------------------------------------------------------ --------- --------- --------- ---------
<S> <C> <C> <C> <C>
Small Company Fund.......................................... 1.45% 2.15% 2.15% 1.00%
Capital Appreciation Fund................................... 1.45% 2.15% 2.15% 1.00%
MidCap Fund................................................. 1.45% 2.15% 2.15% 1.00%
International Opportunities Fund............................ 1.65% 2.35% 2.35% 1.20%
Global Leaders Fund......................................... 1.65% 2.35% 2.35% 1.20%
Stock Fund.................................................. 1.45% 2.15% 2.15% 1.00%
Growth and Income Fund...................................... 1.45% 2.15% 2.15% 1.00%
Dividend and Growth Fund.................................... 1.40% 2.10% 2.10% 0.95%
Advisers Fund............................................... 1.40% 2.10% 2.10% 0.95%
High Yield Fund............................................. 1.40% 2.10% 2.10% 0.95%
Bond Income Strategy Fund................................... 1.25% 1.95% 1.95% 0.80%
Money Market Fund........................................... 1.00% 1.70% 1.70% 0.55%
</TABLE>
The Hartford may terminate such voluntary and temporary fee waivers and
expense limitation arrangements at any time without notice.
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, to
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 fee expense offset.
4. AFFILIATE HOLDINGS:
a) As of December 31, 1999, 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>
Small Company Fund.......................................... 7,150 320,503 864 41,898
Capital Appreciation Fund................................... -- -- 547 --
MidCap Fund................................................. 218,164 62,363 925 31,157
International Opportunities Fund............................ -- 136,001 877 198,137
Global Leaders Fund......................................... 217,826 31,121 31,121 31,116
Growth and Income Fund...................................... 212,239 60,551 997 30,342
Dividend and Growth Fund.................................... -- -- 652 --
Advisers Fund............................................... -- -- 688 --
High Yield Fund............................................. 766,871 108,689 108,696 109,941
Bond Income Strategy Fund................................... 2,393,314 319,497 1,004 216,418
Money Market Fund........................................... 9,338,215 2,184,555 10,519 149
</TABLE>
64
<PAGE> 65
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS:
For the year ended December 31, 1999, 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>
Small Company Fund.......................................... $ 263,431,164 $ 189,082,876
Capital Appreciation Fund................................... 1,844,073,778 1,567,415,088
MidCap Fund................................................. 256,526,828 116,411,515
International Opportunities Fund............................ 120,557,411 90,014,444
Global Leaders Fund......................................... 195,130,487 89,933,453
Stock Fund.................................................. 1,092,814,811 306,868,553
Growth and Income Fund...................................... 117,222,098 26,222,079
Dividend and Growth Fund.................................... 275,818,694 184,849,186
Advisers Fund............................................... 1,151,824,830 388,179,885
High Yield Fund............................................. 34,649,889 13,724,755
Bond Income Strategy Fund................................... 163,143,722 116,612,750
</TABLE>
6. TAX COST AND UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:
As of December 31, 1999, 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>
Small Company Fund............................ $ 189,609,236 $ 61,288,032 $ (8,789,862) $ 52,496,170
Capital Appreciation Fund..................... 1,238,285,683 440,079,195 (68,611,222) 371,467,973
MidCap Fund................................... 198,933,837 41,958,243 (8,297,362) 33,660,881
International Opportunities Fund.............. 98,907,664 27,141,986 (2,207,423) 24,934,563
Global Leaders Fund........................... 125,179,831 29,302,404 (618,506) 28,683,898
Stock Fund.................................... 1,301,649,520 308,345,215 (73,836,812) 234,508,403
Growth and Income Fund........................ 112,636,817 17,879,041 (4,963,604) 12,915,437
Dividend and Growth Fund...................... 392,359,262 62,166,034 (26,132,522) 36,033,512
Advisers Fund................................. 1,477,112,963 227,102,271 (78,885,336) 148,216,935
High Yield Fund............................... 35,962,995 306,805 (1,316,865) (1,010,060)
Bond Income Strategy Fund..................... 131,111,241 29,847 (4,367,548) (4,337,701)
</TABLE>
7. CAPITAL SHARE TRANSACTIONS:
The following information is for the year ended December 31, 1999:
<TABLE>
<CAPTION>
SMALL COMPANY FUND CAPITAL 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>
65
<PAGE> 66
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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 INCOME FUND DIVIDEND AND 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>
SMALL COMPANY FUND CAPITAL 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>
<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>
66
<PAGE> 67
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND DIVIDEND AND 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>
SMALL COMPANY FUND CAPITAL 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>
<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 INCOME FUND DIVIDEND AND 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>
67
<PAGE> 68
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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>
SMALL COMPANY FUND CAPITAL 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>
<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 INCOME FUND DIVIDEND AND 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>
68
<PAGE> 69
- --------------------------------------------------------------------------------
The following information is for the year ended December 31, 1998:
<TABLE>
<CAPTION>
SMALL COMPANY FUND CAPITAL APPRECIATION FUND MIDCAP FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............ 2,098,937 $ 25,705,200 11,038,450 $ 220,993,901 1,877,292 $ 20,232,636
Shares issued on
reinvestment of
distributions........ 19,781 255,555 103,173 2,127,930 -- --
Shares redeemed........ (887,713) (10,515,722) (5,002,856) (95,695,005) (112,836) (1,202,906)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 1,231,005 $ 15,445,033 6,138,767 $ 127,426,826 1,764,456 $ 19,029,730
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES FUND GLOBAL LEADERS FUND STOCK FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............ 1,561,672 $ 18,230,610 290,399 $ 3,051,775 10,615,322 $ 188,034,558
Shares issued on
reinvestment of
distributions........ 3,432 40,680 7,152 85,972 130,820 2,493,447
Shares redeemed........ (357,834) (4,022,123) -- -- (1,467,139) (25,736,755)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 1,207,270 $ 14,249,167 297,551 $ 3,137,747 9,279,003 $ 164,791,250
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND DIVIDEND AND GROWTH FUND ADVISERS FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............ 989,220 $ 10,007,212 7,385,119 $ 116,092,425 14,668,464 $ 216,723,178
Shares issued on
reinvestment of
distributions........ 1,522 14,537 125,486 1,961,799 534,467 8,159,366
Shares redeemed........ (19,379) (199,227) (1,137,735) (17,589,450) (2,419,880) (35,649,152)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 971,363 $ 9,822,522 6,372,870 $ 100,464,774 12,783,051 $ 189,233,392
========== ============ =========== ============= ============ =============
</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............ 827,597 $ 8,285,112 2,217,207 $ 23,772,753 72,590,461 $ 72,590,461
Shares issued on
reinvestment of
distributions........ 12,984 130,321 197,172 2,108,757 1,109,430 1,109,430
Shares redeemed........ (2,419) (24,088) (727,575) (7,803,755) (66,854,465) (66,854,465)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 838,162 $ 8,391,345 1,686,804 $ 18,077,755 6,845,426 $ 6,845,426
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
SMALL COMPANY FUND CAPITAL APPRECIATION FUND MIDCAP FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............ 695,531 $ 8,513,456 8,049,387 $ 161,848,122 657,060 $ 7,070,206
Shares issued on
reinvestment of
distributions........ 9,889 126,081 84,258 1,714,921 -- --
Shares redeemed........ (109,150) (1,332,560) (2,499,822) (46,713,467) (29,393) (312,238)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 596,270 $ 7,306,977 5,633,823 $ 116,849,576 627,667 $ 6,757,968
========== ============ =========== ============= ============ =============
</TABLE>
69
<PAGE> 70
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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............ 425,869 $ 4,892,462 40,185 $ 421,831 7,718,134 $ 134,930,641
Shares issued on
reinvestment of
distributions........ 2 25 969 11,627 90,591 1,697,807
Shares redeemed........ (107,860) (1,201,434) (2,743) (34,701) (594,162) (10,213,894)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 318,011 $ 3,691,053 38,411 $ 398,757 7,214,563 $ 126,414,554
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND DIVIDEND AND GROWTH FUND ADVISERS FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B
Shares sold............ 312,296 $ 3,119,977 4,738,961 $ 74,046,718 12,788,835 $ 188,280,059
Shares issued on
reinvestment of
distributions........ 189 1,806 42,146 645,761 319,674 4,856,441
Shares redeemed........ (2,494) (23,663) (512,477) (7,915,132) (799,212) (11,794,207)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 309,991 $ 3,098,120 4,268,630 $ 66,777,347 12,309,297 $ 181,342,293
========== ============ =========== ============= ============ =============
</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............ 228,235 $ 2,283,684 1,343,487 $ 14,373,394 18,281,808 $ 18,281,808
Shares issued on
reinvestment of
distributions........ 2,050 20,573 47,193 503,881 245,990 245,990
Shares redeemed........ (1,382) (14,028) (369,800) (3,953,640) (11,040,944) (11,040,944)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 228,903 $ 2,290,229 1,020,880 $ 10,923,635 7,486,854 $ 7,486,854
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
SMALL COMPANY FUND CAPITAL APPRECIATION FUND MIDCAP FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............ 269,600 $ 2,413,522 1,549,815 $ 14,023,487 104,562 $ 989,561
Shares issued on
reinvestment of
distributions........ -- -- -- -- -- --
Shares redeemed........ (5,840) (55,486) (57,413) (514,760) (5,508) (49,502)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 263,760 $ 2,358,036 1,492,402 $ 13,508,727 99,054 $ 940,059
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES FUND GLOBAL LEADERS FUND STOCK FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............ 144,221 $ 1,288,662 39,826 $ 415,228 3,472,414 $ 33,293,935
Shares issued on
reinvestment of
distributions........ 353 3,362 1,008 12,093 50,177 507,292
Shares redeemed........ (394) (3,680) -- -- (73,495) (680,394)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 144,180 $ 1,288,344 40,834 $ 427,321 3,449,096 $ 33,120,833
========== ============ =========== ============= ============ =============
</TABLE>
70
<PAGE> 71
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND DIVIDEND AND GROWTH FUND ADVISERS FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C
Shares sold............ 339,082 $ 3,403,833 952,615 $ 9,249,867 5,386,522 $ 52,552,713
Shares issued on
reinvestment of
distributions........ 128 1,202 6,321 61,804 129,003 1,283,774
Shares redeemed........ (7,974) (77,476) (22,367) (220,615) (86,185) (843,737)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 331,236 $ 3,327,559 936,569 $ 9,091,056 5,429,340 $ 52,992,750
========== ============ =========== ============= ============ =============
</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............ 223,263 $ 2,238,547 577,572 $ 5,816,789 2,584,648 $ 2,584,648
Shares issued on
reinvestment of
distributions........ 2,376 23,878 6,895 69,395 9,179 9,179
Shares redeemed........ (1,078) (10,870) (45,670) (458,890) (1,390,473) (1,390,473)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 224,561 $ 2,251,555 538,797 $ 5,427,294 1,203,354 $ 1,203,354
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
SMALL COMPANY FUND CAPITAL APPRECIATION FUND MIDCAP FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............ 513,336 $ 6,387,840 678,544 $ 13,618,020 355,369 $ 3,943,675
Shares issued on
reinvestment of
distributions........ 7,878 102,734 8,140 169,470 -- --
Shares redeemed........ (296,016) (3,687,096) (826,549) (17,308,917) (81,834) (874,044)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 225,198 $ 2,803,478 (139,865) $ (3,521,427) 273,535 $ 3,069,631
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES FUND GLOBAL LEADERS FUND STOCK FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............ 574,757 $ 6,741,690 30,000 $ 300,000 39,075 $ 725,569
Shares issued on
reinvestment of
distributions........ 3,164 37,687 867 10,428 4,044 77,800
Shares redeemed........ (275,192) (3,124,385) -- -- (6,476) (112,996)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 302,729 $ 3,654,992 30,867 $ 310,428 36,643 $ 690,373
========== ============ =========== ============= ============ =============
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND DIVIDEND AND GROWTH FUND ADVISERS FUND
------------------------- --------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y
Shares sold............ 33,554 $ 339,664 534,172 $ 8,408,783 1,028,339 $ 15,147,227
Shares issued on
reinvestment of
distributions........ 98 940 16,122 254,131 123,062 1,880,476
Shares redeemed........ -- -- (422,594) (6,795,450) (442,801) (6,438,471)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 33,652 $ 340,604 127,700 $ 1,867,464 708,600 $ 10,589,232
========== ============ =========== ============= ============ =============
</TABLE>
71
<PAGE> 72
THE HARTFORD MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<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............ 100,000 $ 1,000,000 782,903 $ 8,441,971 11,162,631 $ 11,162,631
Shares issued on
reinvestment of
distributions........ 1,776 17,821 45,476 488,379 138,240 138,240
Shares redeemed........ -- -- (279,284) (3,002,181) (8,618,326) (8,618,326)
---------- ------------ ----------- ------------- ------------ -------------
Net Increase........... 101,776 $ 1,017,821 549,095 $ 5,928,169 2,682,545 $ 2,682,545
========== ============ =========== ============= ============ =============
</TABLE>
8. RECLASSIFICATION OF CAPITAL ACCOUNTS:
In accordance with American Institute of Certified Public Accountants
Statement of Position 93-2, Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies, the Funds have recorded several
reclassifications in their capital accounts. These reclassifications had no
impact on the net asset value of the Funds and are designed generally to
present accumulated undistributed (distribution in excess of) net
investment income and realized gain on investments on a tax basis which is
considered to be more informative to the shareholder. The reclassifications
are a result of permanent differences between GAAP and tax accounting for
such items as foreign currency and passive foreign investment company
(PFIC) income classifications, and net operating losses that reduce capital
gain distribution requirements. Adjustments are made to reflect the impact
these items have on current and future distributions to shareholders.
Therefore the source of the Funds' distributions may be shown in the
accompanying Statement of Changes in Net Assets as from investment income,
from net realized gains on investments or from capital depending on the
type of book and tax differences that exist. As of December 31, 1999, the
Funds recorded the following reclassifications to increase (decrease) the
accounts listed below.
<TABLE>
<CAPTION>
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTED (DISTRIBUTION
(DISTRIBUTION IN EXCESS OF)
IN EXCESS OF) NET REALIZED
NET INVESTMENT GAIN ON PAID-IN
FUND INCOME INVESTMENTS SURPLUS
------------------------------------------------------------ -------------- ------------- ----------
<S> <C> <C> <C>
Small Company Fund.......................................... $1,224,425 $ (1,224,425) $ --
Capital Appreciation Fund................................... 7,944,500 (9,622,499) 1,677,999
MidCap Fund................................................. 939,410 (939,410) --
International Opportunities Fund............................ 210,593 (207,337) (3,256)
Global Leaders Fund......................................... 147,582 (147,582) --
Stock Fund.................................................. 3,763,884 (3,763,884) --
Growth and Income Fund...................................... 138,334 (138,334) --
Dividend and Growth Fund.................................... 27,648 (29,511) 1,863
Advisers Fund............................................... (19,618) 19,618 --
High Yield Fund............................................. 531 (531) --
Bond Income Strategy Fund................................... (24) 24 --
</TABLE>
9. CAPITAL LOSS CARRYOVER:
At December 31, 1999 (tax year-end), the following Funds had capital loss
forwards for U.S. federal tax purposes of approximately:
<TABLE>
<CAPTION>
YEAR OF
FUND AMOUNT EXPIRATION
------------------------------------------------------------ ---------- ----------
<S> <C> <C>
High Yield Fund............................................. $ 151,376 2007
Bond Income Strategy Fund................................... 1,559,113 2007
</TABLE>
72
<PAGE> 73
- --------------------------------------------------------------------------------
10. TAX INFORMATION NOTICE: (UNAUDITED)
For the year ended December 31, 1999, the following Funds distributed
long-term capital gain dividends as follows:
<TABLE>
<S> <C> <C>
MidCap Fund................................................. $ 267,627
International Opportunities Fund............................ 1,985,920
Stock Fund.................................................. 13,789,212
Growth and Income Fund...................................... 515,469
Dividend and Growth Fund.................................... 7,351,827
Advisers Fund............................................... 15,015,663
Bond Income Strategy Fund................................... 6,135
</TABLE>
For the year ended December 31, 1999, the following Funds designated a
percent of their ordinary dividends paid during the year ended December 31,
1999 (including short-term capital gain distributions) as eligible for the
dividends received deduction for corporate shareholders as follows:
<TABLE>
<CAPTION>
PERCENT OF
DIVIDENDS
PAID ELIGIBLE FOR THE
DIVIDENDS RECEIVED
DEDUCTION
---------------------
<S> <C>
Small Company Fund.......................................... 1.29%
Capital Appreciation Fund................................... 3.34
MidCap Fund................................................. 7.29
Global Leaders Fund......................................... 19.49
Stock Fund.................................................. 81.11
Growth and Income Fund...................................... 100.00
Dividend and Growth Fund.................................... 96.05
Advisers Fund............................................... 23.42
</TABLE>
11. 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. For the year ended December 31, 1999, the Funds did
not have any borrowings under these facilities.
12. 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....................................... 80.078431%
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>
73
<PAGE> 74
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 GAINS FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME ON INVESTMENTS CAPITAL
--------- ---------- ------------ ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD SMALL COMPANY FUND
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 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) --
THE HARTFORD MIDCAP FUND
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)
</TABLE>
(a) Information presented relates to capital shares outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include 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 this financial statement.
74
<PAGE> 75
- --------------------------------------------------------------------------------
<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>
$(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)
(1.91) 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)
(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)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
- --- ------------------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS LOSS PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(e)
----------------- ---------- ---------
<S> <C> <C> <C>
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) --
1.33 (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) --
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) --
</TABLE>
75
<PAGE> 76
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 GAINS ON FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INVESTMENTS CAPITAL
--------- ---------- ------------ ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD INTERNATIONAL
OPPORTUNITIES FUND
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 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) --
THE HARTFORD STOCK FUND
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 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)
</TABLE>
(a) Information presented relates to capital shares outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include 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 this financial statement.
76
<PAGE> 77
- --------------------------------------------------------------------------------
<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>
$(0.98) $ 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)
(0.12) 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)
(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)
(0.10) 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)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
- --- ---------------------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS INCOME (LOSS) PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(e)
----------------- ------------- ---------
<S> <C> <C> <C>
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) --
1.57 (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) --
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) --
1.44 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) --
</TABLE>
77
<PAGE> 78
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 GAINS FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME ON INVESTMENTS CAPITAL
--------- ---------- ------------ ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD DIVIDEND AND
GROWTH FUND
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) --
THE HARTFORD ADVISERS FUND
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 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) -- --
</TABLE>
(a) Information presented relates to capital shares outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include 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 this financial statement.
78
<PAGE> 79
- --------------------------------------------------------------------------------
<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>
$(0.52) $ 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)
(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)
(0.75) (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)
<CAPTION>
-- RATIOS AND SUPPLEMENTAL DATA --
- --- ---------------------------------------------
RATIO OF RATIO OF
EXPENSES NET
TO AVERAGE INVESTMENT
NET ASSETS INCOME (LOSS) PORTFOLIO
AFTER WAIVERS AND TO AVERAGE TURNOVER
REIMBURSEMENTS NET ASSETS RATE(e)
----------------- ------------- ---------
<S> <C> <C> <C>
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) --
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) --
1.36 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) --
</TABLE>
79
<PAGE> 80
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 GAINS FROM
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME ON INVESTMENTS CAPITAL
--------- ---------- ------------ ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
THE HARTFORD BOND INCOME
STRATEGY FUND
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(f).................. 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) --
THE HARTFORD MONEY MARKET FUND
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 capital shares outstanding throughout the
indicated period.
(b) Annualized.
(c) Does not include 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 this financial statement.
80
<PAGE> 81
- --------------------------------------------------------------------------------
<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>
$(0.54) $(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)
(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>
1.24% 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) --
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>
81
<PAGE> 82
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
THE HARTFORD MUTUAL FUNDS, INC.:
- --------------------------------------------------------------------------------
We have audited the accompanying statements of net assets of The Hartford Mutual
Funds, Inc. (a Maryland Corporation) (consisting of The Hartford Small Company,
The Hartford Capital Appreciation, The Hartford MidCap, The Hartford
International Opportunities, The Hartford Global Leaders, The Hartford Stock,
The Hartford Growth and Income, The Hartford Dividend and Growth, The Hartford
Advisers, The Hartford High Yield, The Hartford Bond Income Strategy, The
Hartford Money Market Funds) (the Funds) as of December 31, 1999, and the
related statement of operations, statements of changes in net assets and
financial highlights for the periods presented. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian bank. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds comprising The Hartford Mutual Funds, Inc. for the
periods presented in conformity with generally accepted accounting principles.
Hartford, Connecticut
February 14, 2000 ARTHUR ANDERSEN LLP
82
