<PAGE>
Hartford
Money Market Fund, Inc.
----------------------------------------
Semiannual Report
June 30, 1996
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders,
The economy expanded more rapidly than anticipated during the first six months
of 1996. By late February, not long after the Fed made an expected reduction
in short-term interest rates, a massive jump in job formation gave the markets
a glimpse of the surprising strength that would characterize the economic
releases for most of the rest of the first half of the year. Strong numbers on
housing and consumer spending followed in the first quarter. By the second
quarter, output was increasing as production began to catch up with demand.
And with the stronger economic numbers came the first signs of increasing
pressure of wages, a trend that if sustained could lead to higher overall
rates of inflation.
Bond market psychology quickly turned negative. Interest rates rose as
investors concluded any hope for additional ease was out the window and that
the Federal Reserve might soon have to raise rates. Stock investors took a
more sanguine view, hoping that stronger rates of economic growth would boost
earnings. The major stock indexes made a series of new highs during the first
half of the year. But the rally lost steam when long-term interest rates moved
through 7% in May and earnings disappointments in the high tech sector led to
a small-cap sell off in June.
Differences of opinion also dominate the outlook for the second half of the
year. If employment growth continues driving up consumer incomes, spending
should hold up. With inventories being rebuilt, and Europe's emergence from
its mini-slump expected to help exports, the economy could continue growing at
above-trend rates. But high levels of consumer debt, higher interest rates,
and a stronger dollar are all likely to have a dampening effect on the pace of
economic activity down the line, making an equally plausible case for a
slowdown to non-inflationary rates of economic growth.
Although we think the odds favor slower growth going forward, the debate won't
be settled immediately. Because of that, the markets are likely to continue to
react sharply to any surprises in the upcoming economic releases--as they did
in early July when prices plunged in response to another surprisingly strong
employment report--or to perceived shifts in the direction of Fed policy.
Lowndes A. Smith Joseph H. Gareau
CHAIRMAN PRESIDENT
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
AMORTIZED AMORTIZED
PRINCIPAL COST AND PRINCIPAL COST AND
AMOUNT VALUE AMOUNT VALUE
- ---------- ------------ ---------- -----------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER -- 85.9% CORPORATE NOTES -- 3.9%
</TABLE>
<TABLE>
<C> <S> <C>
$ 500,000 American Home Food Products
Inc.
5.34% due 07/10/96.......... $ 499,333
500,000 Bass Finance C.I. Ltd.
5.32% due 07/15/96.......... 498,965
500,000 Countrywide Home Loan
5.42% due 09/03/96.......... 495,182
500,000 Finova Capital Corp.
5.37% due 08/13/96.......... 496,792
500,000 General Electric Capital Corp.
5.30% due 10/21/96.......... 491,756
500,000 Lucent Technologies Inc.
5.26% due 07/29/96.......... 497,954
500,000 MCI Communications Corp.
5.33% due 07/03/96.......... 499,852
500,000 Monsanto Co.
5.27% due 09/24/96.......... 493,778
500,000 National Fuel Gas Co.
5.44% due 08/26/96.......... 495,769
500,000 National Rural Utilities
5.35% due 08/23/96.......... 496,062
500,000 NYNEX Corp.
5.32% due 08/06/96.......... 497,340
500,000 Sanwa Business Credit Corp.
5.45% due 07/18/96.......... 498,713
500,000 Sharp Electronics Corp.
5.29% due 07/12/96.......... 499,192
500,000 Sherwin-Williams Co.
5.04% due 09/03/96.......... 495,520
500,000 Spintab-Swedmortgage AB
5.32% due 07/17/96.......... 498,818
500,000 Sumitomo Bank, NY Branch
5.43% due 08/05/96.......... 497,360
500,000 Transamerica Finance Group
Inc.
5.39% due 09/10/96.......... 494,685
500,000 U.S. Bankcorp.
5.28% due 07/23/96.......... 498,387
500,000 Walt Disney Co.
5.18% due 09/13/96.......... 494,676
500,000 Westpac Capital Corp.
5.38% due 02/07/97.......... 483,486
500,000 Whirlpool Corp.
5.30% due 08/19/96.......... 496,393
500,000 Zeneca Wilmington Inc.
5.30% due 07/17/96.......... 498,822
-----------
$10,918,836
-----------
$ 500,000 Commercial Credit Group Inc.
7.375% due 11/15/96......... $ 503,776
-----------
REPURCHASE AGREEMENT -- 11.9%
1,510,000 Interest in $107,879,000 joint
repurchase agreements dated
06/28/96 with Dillon Read &
Co., Inc. and JP Morgan
Securities at 5.3% due
07/01/96; maturity amount
$1,510,667; (Collateralized
by $15,000,000 U.S. Treasury
Bond at 8.75% due 08/15/20,
$49,685,000 U.S. Treasury
Note at 6.75% due 05/31/99
and $43,194,000 U.S.
Treasury Note at 5.625% due
10/31/97)................... 1,510,000
-----------
$12,932,612
-----------
-----------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total investment in securities
*(Identified cost of $12,932,612).......... 101.7% $12,932,612
Excess of liabilities over cash and
receivables................................ (1.7) (221,931 )
------ ------------
Net assets (Applicable to $1.00 per share
based on 12,710,681 shares outstanding).... 100.0% $12,710,681
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
500,000,000 shares; outstanding 12,710,681
shares............................................. $ 1,271,068
Capital surplus...................................... 11,439,613
------------
Net assets, applicable to shares outstanding......... $12,710,681
------------
------------
</TABLE>
* Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
1
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................. $355,555
EXPENSES:
Shareholder accounting fees............................... 48,101
Investment advisory services.............................. 16,266
Registration fees......................................... 15,495
Administrative services................................... 11,387
Custodian fees............................................ 8,431
Board of directors fees................................... 63
Other..................................................... 3,448
--------
Total expenses.......................................... 103,191
--------
Net investment income..................................... 252,364
--------
Net increase in net assets resulting from operations...... $252,364
--------
--------
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
<CAPTION>
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
-------------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 252,364 $ 567,107
-------------------- -----------------
Net increase in net assets................................ 252,364 567,107
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... (252,364) (567,107)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Fund shares sold (18,515,785 and 33,634,110
shares, respectively).................................... 18,515,785 33,634,110
Net asset value of Fund shares issued upon reinvestment of
dividends
(251,099 and 564,345 shares, respectively)............... 251,099 564,345
Cost of Fund shares redeemed (18,144,871 and 33,793,519
shares,
respectively)............................................ (18,144,871) (33,793,519)
-------------------- -----------------
Net increase in net assets resulting from capital share
transactions............................................. 622,013 404,936
-------------------- -----------------
Total increase in net assets............................ 622,013 404,936
NET ASSETS:
Beginning of period....................................... 12,088,668 11,683,732
-------------------- -----------------
End of period............................................. $ 12,710,681 $ 12,088,668
-------------------- -----------------
-------------------- -----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
2
<PAGE>
Hartford Money Market Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
1. ORGANIZATION:
Hartford Money Market Fund, Inc., (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-ended
management investment company. The Fund was organized under the laws of the
State of Maryland in February 1982, and commenced operations in June 1982.
The Fund seeks a high level of current income consistent with liquidity and
preservation of capital through investments in the obligations of the U.S.
Government and its agencies, money market instruments, and corporate bonds,
notes and other debt instruments.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Fund,
which are in accordance with generally accepted accounting principles in
the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.
b) SECURITY VALUATION--Investments are valued at amortized cost, which
approximates fair market value. Under the amortized cost method of
valuation, an instrument is valued by reference to the Fund's
acquisition cost as adjusted for amortization of premium or accretion of
discount.
c) REPURCHASE TRANSACTIONS--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 Fund enters 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. Security(ies) which serve to collateralize the
repurchase agreement are held by the 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.
d) JOINT TRADING ACCOUNT--Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Fund may transfer uninvested
cash balances into a joint trading account managed by Hartford
Investment Management Company (HIMCO). These balances may be invested in
one or more repurchase agreements and/or short-term money market
instruments.
e) FEDERAL INCOME TAXES--For Federal income tax purposes, the Fund intends
to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code by distributing substantially all of its taxable
income to its shareholders and otherwise complying with the requirements
for regulated investment companies. Accordingly, no provision for
Federal income taxes has been made.
f) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTION TO SHAREHOLDERS--Fund
shares are sold and redeemed on a continuing basis at net asset value.
Interest income and expenses are accrued on a daily basis. The Fund's
net asset value per share is determined as of 4:00 p.m., Eastern
Standard Time, on days the New York Stock Exchange is open for trading.
The Fund seeks to maintain a stable net asset value per share of $1.00
by declaring a daily dividend from net investment income, including net
realized gains and losses, and by valuing its investments using the
amortized cost method. Dividends are distributed monthly.
g) 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 and assumptions.
3. INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES AGREEMENTS:
a) INVESTMENT ADVISORY AGREEMENT--HIMCO, a wholly-owned subsidiary of
Hartford Life Insurance Company (HL), serves as investment adviser to
the Fund pursuant to an agreement approved by the Board of Directors and
shareholders.
Under the terms of the agreement, HIMCO is compensated at a maximum
annual fee of .25% of the Fund's average daily net assets.
b) ADMINISTRATIVE SERVICES AGREEMENT--HL provides administrative services
to the Fund and receives an annual fee equal to .175% of the Fund's
average daily net assets.
The Fund assumes and pays certain other expenses (including, but not
limited to, shareholder accounting fees, registration and directors'
fees.) These expenses are either directly attributable to the Fund or
are allocated based on the ratio of the net assets of the Fund to the
combined net assets of the eleven Hartford Mutual Funds. Directors' fees
represent remuneration paid or accrued to directors not affiliated with
HL or any other related company.
3
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)*
<TABLE>
<CAPTION>
FOR THE
SIX
MONTHS
ENDED
JUNE YEAR ENDED DECEMBER 31,
30, -------------------------------------------
1996 1995 1994 1993 1992 1991
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income................. 0.023 0.044 0.027 0.018 0.024 0.049
Net Gains or (Losses) on Securities
(both realized and unrealized)....... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Income From Investment
Operations....................... 0.023 0.044 0.027 0.018 0.024 0.049
LESS DISTRIBUTIONS:
Dividends (from net investment
income).............................. (0.023 ) (0.044) (0.027) (0.018) (0.024) (0.049)
Distributions (from capital gains).... -- -- -- -- -- --
Return of Capital..................... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Distributions............... (0.023 ) (0.044) (0.027) (0.018) (0.024) (0.049)
Net Asset Value, End of Period.......... $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total Return............................ 2.31% 4.52% 2.77% 1.88% 2.47% 4.99%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (000's
omitted)............................... $12,711 $12,089 $11,684 $11,504 $13,483 $13,866
Ratio of Expenses to Average Net
Assets................................. 1.57% 1.590% 1.610% 1.540% 1.630% 1.550%
Ratio of Net Investment Income to
Average Net Assets..................... 3.850% 4.430% 2.720% 1.821% 2.440% 4.920%
<FN>
* Financial Highlights for the periods ended through December 31, 1992 have
been restated to conform with requirements issued by the SEC in April 1993.
</TABLE>
4
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
BULK RATE
P.O. BOX 2999
U.S. POSTAGE
HARTFORD, CT 06104-2999
PAID
PERMIT NO. 1
HARTFORD, CT
- --------------------------------------------------------------------------------
DIRECTORS OF THE FUNDS:
JOSEPH A. BIERNAT - Director
JOSEPH H. GAREAU - Director/President
GOVERNOR WILLIAM A. O'NEILL - Director
MILLARD H. PRYOR, JR. - Director
LOWNDES A. SMITH - Director/Chairman
JOHN K. SPRINGER - Director
WINIFRED E. COLEMAN - Director
CUSTODIAN:
Chase Manhattan Bank
Brooklyn, NY 11245
TRANSFER AGENT:
State Street Bank and Trust Company
P.O. Box 1912
Boston, MA 02107
INVESTMENT ADVISER:
The Hartford Investment Management Company (HIMCO)
Hartford Plaza
Hartford, CT 06115
PRINCIPAL UNDERWRITER:
Hartford Equity Sales Company, Inc. (HESCO)
Hartford Plaza
Hartford, CT 06115
Hartford Securities Distribution Company, Inc. (HSD)
Hartford Plaza
Hartford, CT 06115
HV-1766-24 Printed in U.S.A.
