HARTFORD STOCK FUND INC /CT/, 485BPOS, 1996-04-23

HARTFORD STOCK FUND INC /CT/
485BPOS, 1996-04-23

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<PAGE>

As filed with the Securities and Exchange Commission on April 23, 1996

File No. 2-57609

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / x /
-----
Pre-Effective Amendment No. / /
------- -----

Post-Effective Amendment No. 29 / x /
------- -----

and/or

REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 / x /
-----

Amendment No. 29 / x /
-----

HARTFORD STOCK FUND, INC.
(Exact Name of Registrant as Specified in Charter)

P.O. Box 2999, Hartford, Connecticut 06104-2999
(Address of Principal Executive Offices)

Registrant's Telephone Number including Area Code: 203/547-3403

Michael C. O'Halloran, Esquire
690 Asylum Avenue, Hartford, Connecticut 06115
(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering:
Upon this Amendment to the Registration Statement being declared effective.

It is proposed that this filing will become effective (check appropriate box)

immediately upon filing pursuant to paragraph (b) of Rule 485
--------

X on May 1, 1996 pursuant to paragraph (b) of Rule 485
-------

60 days after filing pursuant to paragraph (a)(1) of Rule 485
--------
on May 1, 1996 pursuant to paragraph (a)(1) of Rule 485
--------
75 days after filing pursuant to paragraph (a)(2) of Rule 485
--------
on pursuant to paragraph (a)(2) of Rule 485
--------

Pursuant to Regulation 270.24f-2 under the Investment Company Act of 1940,
Registrant has previously elected to register an indefinite number of shares of
its Common Stock.

The Rule 24f-2 Notice for the Registrant's most recent fiscal year was filed on
February 29, 1996.

<PAGE>
HARTFORD STOCK FUND
CROSS REFERENCE SHEET
PURSUANT TO RULE 481(A)

N-1A ITEM NO. PROSPECTUS LOCATION
- ------------- -------------------
PART A

1. Cover Page Cover Page
2. Synopsis Inapplicable
3. Condensed Financial Information Fund Expenses; Financial Highlights
4. General Description of Registrant The Funds; Investment Objectives
and Policies of the Fund; Common
Investment Policies and Risk
Factors
5. Management of the Fund Management of the Funds;
Administrative Services for the
Funds; Expenses of the Fund
5A. Management's Discussion of Fund Annual Report to Shareholders
Performance
6. Capital Stock and Other Securities Ownership and Capitalization of the
Funds; Dividends; Federal Income
taxes; General Information
7. Purchase of Securities Being Net Asset Value; Purchase of Fund
Offered Shares
8. Redemption or Repurchase Sale and Redemption of Shares
9. Pending Legal Proceedings General Information-Pending Legal
Proceedings

PART B STATEMENT OF ADDITIONAL INFORMATION
- ------ LOCATION
-----------------------------------

10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History Not Applicable
13. Investment Objectives and Policies Investment Objectives of the Funds;
Investment Restrictions of the Funds
14. Management of the Fund Management of the Fund
15. Control Persons and Principal Control Persons and Principal
Holders of Securities Holders of Securities
16. Investment Advisory and Other
Services Management of the Fund
17. Brokerage Allocation and Other
Practices Portfolio Brokerage

18. Capital Stock and Other Securities Ownership and Capitalization of
the Funds (Prospectus)
19. Purchase Redemption and Pricing of Purchase of Fund Shares
Securities Being Offered (Prospectus)
20. Tax Status Federal Income Taxes (Prospectus)
21. Underwriters Sale and Redemption of Fund Shares
(Prospectus)
22. Calculations of Performance Data Performance Comparisons
23. Financial Statements Financial Statements

PART C

Information required to be set forth in Part C is set forth under the
appropriate item, so numbered, in Part C of the Registration Statement.

<PAGE>

HARTFORD MUTUAL FUNDS
P.O. BOX 2999
HARTFORD, CT 06104-2999
PROSPECTUS -- MAY 1, 1996

This Prospectus contains information relating to eleven mutual funds offered
hereby (individually, a "Fund," collectively, the "Funds" or "Hartford Mutual
Funds"), each registered as a diversified open-end management investment company
with the Securities and Exchange Commission, that are made available to serve as
the underlying investment vehicles for certain variable annuity and variable
life insurance separate accounts of Hartford Life Insurance Company and ITT
Hartford Life and Annuity Insurance Company (collectively, the "ITT Hartford
Life Insurance Companies"). The Funds, which have differentinvestment objectives
and policies, are: Hartford Capital Appreciation Fund, Inc., Hartford Dividend
and Growth Fund, Inc., Hartford Index Fund, Inc., Hartford International
Opportunities Fund, Inc., Hartford Stock Fund, Inc., Hartford Advisers Fund,
Inc., Hartford International Advisers Fund, Inc., Hartford Bond Fund, Inc.,
Hartford Mortgage Securities Fund, Inc., HVA Money Market Fund, Inc. and
Hartford U.S. Government Money Market Fund, Inc. The investment objective of
each Fund is the first sentence of each of the following:

STOCK FUNDS
HARTFORD CAPITAL APPRECIATION FUND, INC. seeks to achieve growth of capital
by investing in securities selected solely on the basis of potential for capital
appreciation; income, if any, is an incidental consideration. The Capital
Appreciation Fund invests primarily in equity securities and securities
convertible into equity securities.
HARTFORD DIVIDEND AND GROWTH FUND, INC. seeks to achieve a high level of
current income consistent with growth of capital and reasonable investment risk.
The Dividend and Growth Fund invests primarily in equity securities and
securities convertible into equity securities that typically have above average
income yield and favorable prospects for capital appreciation.

HARTFORD INDEX FUND, INC. seeks to provide investment results which
approximate the price and yield performance of publicly-traded common stocks in
the aggregate. The Index Fund attempts to approximate the capital performance
and the dividend income of the Standard & Poor's 500 Composite Stock Price
Index.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC. seeks to achieve long-term
total rate of return consistent with prudent investment risk through investment
primarily in equity securities issued by non-U.S. companies.
HARTFORD STOCK FUND, INC. seeks to achieve long-term capital growth
primarily through capital appreciation, with income a secondary consideration,
by investing in primarily equity securities. Its portfolio emphasizes
high-quality growth companies.
ASSET ALLOCATION FUNDS
HARTFORD ADVISERS FUND, INC. seeks to achieve maximum long-term total rate
of return consistent with prudent investment risk by investing in common stock
and other equity securities, bonds and other debt securities, and money market
instruments. The Advisers Fund actively allocates its assets among these asset
categories based on fundamental analysis, not on short-term market timing.
HARTFORD INTERNATIONAL ADVISERS FUND, INC. seeks to achieve maximum
long-term total rate of return consistent with prudent investment risk. The
International Advisers Fund's assets will be diversified among at least five
countries, and will be allocated among equity and debt securities and money
market instruments based on fundamental analysis, not on short-term market
timing.
BOND FUNDS
HARTFORD BOND FUND, INC. seeks to achieve maximum current income consistent
with preservation of capital by investing primarily in fixed-income securities.

HARTFORD MORTGAGE SECURITIES FUND, INC. seeks to achieve maximum current
income consistent with safety of principal and maintenance of liquidity by
investing primarily in mortgage-related securities, including securities issued
by the Government National Mortgage Association.

MONEY MARKET FUNDS

HVA MONEY MARKET FUND, INC. seeks to achieve maximum current income
consistent with liquidity and preservation of capital. This Fund invests in
short-term money market instruments.

HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC. seeks to achieve maximum
current income consistent with preservation of capital. This Fund invests in
short-term money market instruments.
- --------------------------------------------------------------------------------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
- --------------------------------------------------------------------------------

THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT A FUND THAT A
PROSPECTIVE INVESTOR SHOULD KNOW BEFORE INVESTING. PLEASE READ AND RETAIN THIS

<PAGE>

PROSPECTUS FOR FUTURE REFERENCE. ADDITIONAL INFORMATION ABOUT THE FUNDS HAS
BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN A STATEMENT OF
ADDITIONAL INFORMATION DATED MAY 1, 1996, WHICH HAS BEEN INCORPORATED
BY REFERENCE INTO THIS PROSPECTUS AND WILL BE PROVIDED ON REQUEST
AND WITHOUT CHARGE. WRITE "HARTFORD FAMILY OF FUNDS, C/O
INDIVIDUAL ANNUITY OPERATIONS," P.O. BOX 2999,
HARTFORD, CT 06104-2999.

- --------------------------------------------------------------------------------

NO DEALER, SALESPERSON OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, IN CONNECTION WITH THE OFFER CONTAINED IN THIS PROSPECTUS AND,
IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUNDS. THIS PROSPECTUS
DOES NOT CONSTITUTE AN OFFER BY THE FUNDS TO SELL OR A SOLICITATION
OF ANY OFFER TO BUY ANY OF THE SECURITIES OFFERED HEREBY IN ANY
JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL
FOR THE FUNDS TO MAKE SUCH OFFER.
- --------------------------------------------------------------------------------

AN INVESTMENT IN EITHER OF THE MONEY MARKET FUNDS IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT EITHER OF THE
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.
- --------------------------------------------------------------------------------

HARTFORD INTERNATIONAL ADVISERS FUND, INC. MAY INVEST UP TO 15% OF ITS ASSETS IN
HIGH YIELD DEBT SECURITIES. INVESTMENTS OF THIS TYPE INVOLVE COMPARATIVELY
HIGHER RISKS, INCLUDING PRICE VOLATILITY AND RISK OF DEFAULT IN THE PAYMENT
OF INTEREST AND PRINCIPAL, THAN HIGHER-QUALITY DEBT SECURITIES. SEE
"COMMON INVESTMENT POLICIES AND RISK FACTORS."

- --------------------------------------------------------------------------------
<PAGE>
2 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

HARTFORD MUTUAL FUNDS
TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Glossary.............................................................. 3
Financial Highlights.................................................. 4
The Funds............................................................. 15
Investment Objectives and Policies of the Funds....................... 15
Common Investment Policies and Risk Factors........................... 22
Repurchase Agreements............................................... 22
Illiquid Securities................................................. 23
When-Issued and Delayed-Delivery Securities......................... 23
Other Investment Companies.......................................... 23
Currency Transactions............................................... 24
Options and Futures Contracts....................................... 24
Non-U.S. Securities, Including ADRs and GDRs........................ 26
Mortgage-Related Securities......................................... 26
Asset-Backed Securities............................................. 27
Swap Agreements..................................................... 28
Money Market Instruments............................................ 28
Investment Grade Securities......................................... 28
High Yield Securities............................................... 28
Other Risk Factors.................................................. 28
Management of the Funds............................................... 29
Investment Advisory and Management Services......................... 29
Investment Sub-Advisory Services.................................... 30
Portfolio Managers.................................................. 31
Administrative Services for the Funds................................. 31
Expenses of the Funds................................................. 31
Performance Related Information....................................... 32
Dividends............................................................. 32
Net Asset Value....................................................... 32
Purchase of Fund Shares............................................... 33
Sale and Redemption of Shares......................................... 33
Federal Income Taxes.................................................. 33
Ownership and Capitalization of the Funds............................. 33
Capital Stock....................................................... 33
Voting.............................................................. 34
Other Rights........................................................ 34
General Information................................................... 34
Reports to Shareholders............................................. 34
Custodian, Transfer and Dividend Disbursing Agents.................. 34
"Majority" Defined.................................................. 34
Pending Legal Proceedings........................................... 34
Requests for Information............................................ 34
Appendix -- Ratings of Bonds and Commercial Paper..................... 35
</TABLE>

There is the possibility that an individual Fund may be held liable for a
misstatement, inaccuracy or incomplete disclosure in this Prospectus concerning
the other Fund(s).

Additional information about the performance of each Fund, including
Management's Discussion and Analysis of results, is contained in the Funds'
annual report to shareholders, which may be obtained without charge by calling
1-800-862-6668.
<PAGE>
HARTFORD MUTUAL FUNDS 3
- --------------------------------------------------------------------------------

GLOSSARY

ADRs: American Depository Receipts
CFTC: Commodity Futures Trading Commission
CMOs: Collateralized Mortgage Obligations
Code: Internal Revenue Code of 1986, as amended
FHLMC: Federal Home Loan Mortgage Corporation
FNMA: Federal National Mortgage Association
GDRs: Global Depository Receipts
GNMA: Government National Mortgage Association
IMF: International Monetary Fund
Moody's: Moody's Investors Service, Inc.
NYSE: New York Stock Exchange
1940 Act: Investment Company Act of 1940, as amended
SEC: Securities and Exchange Commission
S&P: Standard & Poor's Corporation
World Bank: International Bank for Reconstruction and Development
<PAGE>
4 HARTFORD CAPITAL APPRECIATION FUND, INC.
(FORMERLY HARTFORD AGGRESSIVE GROWTH FUND, INC.)
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

The following information, insofar as it relates to each of the five years
in the period ended December 31, 1995, has been audited by Arthur Andersen LLP,
independent public accountants, whose report thereon is included in the
Statement of Additional Information, which is incorporated by reference to this
prospectus.

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
----------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value
at beginning of
period......... $ 2.860 $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341 $ 1.482 $ 1.423
Net investment
income......... 0.030 0.011 0.003 0.008 $ 0.021 $ 0.029 $ 0.023 $ 0.015 $ 0.025 $ 0.019
Net realized and
unrealized
gains (losses)
on
investments.... 0.785 0.070 0.526 0.388 0.898 (0.246) 0.376 0.337 (0.075) 0.106
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
Total from
investment
operations..... 0.815 0.081 0.529 0.396 0.919 (0.217) 0.399 0.352 (0.050) 0.125
Dividends from
net investment
income......... (0.030) (0.011) (0.003) (0.008) (0.021) (0.029) (0.023) (0.015) (0.025) (0.019)
Distribution
from net
realized gains
on
securities..... (0.155) (0.262) (0.108) (0.361) 0.000 (0.065) (0.034) 0.000 (0.066) (0.047)
Return of
capital........ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
Total from
distributions... (0.185) (0.273) (0.111) (0.369) (0.021) (0.094) (0.057) (0.015) (0.091) (0.066)
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
Net increase
(decrease) in
net assets..... 0.630 (0.192) 0.418 0.027 0.898 (0.311) 0.342 0.337 (0.141) 0.059
Net asset value
at end of
period......... $ 3.490 $ 2.860 $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341 $ 1.482
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
Total Return.... 30.25% 2.50% 20.80% 16.98% 53.99% (10.90)% 24.11% 26.37% (4.31)% 9.03%
Net Assets (in
thousands)..... 2,157,892 1,158,644 778,904 300,373 158,046 56,032 59,922 34,226 26,123 22,556
Ratio of
operating
expenses to
average net
assets......... 0.68% 0.72% 0.76% 0.87% 0.92% 0.96% 0.94% 0.97% 1.01% 1.12%
Ratio of net
investment
income to
average net
asset.......... 0.95% 0.40% 0.12% 0.36% 0.92% 1.58% 1.25% 0.91% 1.27% 1.23%
Portfolio
turnover
rate........... 78.6% 73.3% 91.4% 100.3% 107.2% 51.8% 35.0% 48.9% 68.7% 53.9%
</TABLE>

<PAGE>
HARTFORD DIVIDEND & GROWTH FUND, INC. 5
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

The following information, has been audited by Arthur Andersen LLP,
independent public accountants, whose report thereon is included in the
Statement of Additional Information, which is incorporated by reference to this
prospectus.

<TABLE>
<CAPTION>
(FOR A SHARE
OUTSTANDING THROUGHOUT
THE INDICATED PERIOD)
-----------------------
YEAR
ENDED 03/08/94-
1995 12/31/94(A)
--------- -----------
<S> <C> <C>
Net asset value at beginning of period............ $ 0.994 $ 1.000
Net investment income............................. 0.033 0.024
Net realized and unrealized gains (losses) on
investments...................................... 0.317 (0.005)
--------- -----------
Total from investment operations.................. 0.350 0.019
Dividends from net investment income.............. (0.033) (0.024)
Distribution from net realized gains on
securities....................................... 0.000 (0.001)
Return of capital................................. 0.000 0.000
--------- -----------
Total from distributions.......................... (0.033) (0.025)
--------- -----------
Net increase (decrease) in net assets............. 0.317 (0.006)
Net asset value at end of period.................. $ 1.311 $ 0.994
--------- -----------
--------- -----------
Total Return...................................... 36.37% 1.96%
Net Assets (in thousands)......................... 265,070 55,066
Ratio of operating expenses to average net
assets........................................... 0.77% 0.83%*
Ratio of net investment income to average net
asset............................................ 2.91% 3.52%*
Portfolio turnover rate........................... 41.4% 27.8%
</TABLE>

- ------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission on
March 8, 1994.

* Annualized
<PAGE>
6 HARTFORD INDEX FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 05/01/87-
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87(A)
--------- --------- --------- -------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period..... $ 1.522 $ 1.546 $ 1.450 $ 1.390 $ 1.134 $ 1.220 $ 0.960 $ 0.854 $ 1.000
Net investment income.... 0.044 0.038 0.035 0.033 0.036 0.037 0.029 0.030 0.016
Net realized and
unrealized gains
(losses) on
investments............. 0.507 (0.024) 0.096 0.060 0.294 (0.086) 0.260 0.106 (0.144)
--------- --------- --------- -------- -------- -------- -------- -------- -----------
Total from investment
operations.............. 0.551 0.014 0.131 0.093 0.330 (0.049) 0.289 0.136 (0.128)
Dividends from net
investment income....... (0.044) (0.038) (0.035) (0.033) (0.036) (0.037) (0.029) (0.030) (0.016)
Distribution from net
realized gains on
securities.............. (0.001) 0.000 0.000 0.000 (0.038) 0.000 0.000 0.000 (0.002)
Return of capital........ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- -------- -------- -------- -------- -------- -----------
Total from
distributions........... (0.045) (0.038) (0.035) (0.033) (0.074) (0.037) (0.029) (0.030) (0.018)
--------- --------- --------- -------- -------- -------- -------- -------- -----------
Net increase (decrease)
in net assets........... 0.506 (0.024) 0.096 0.060 0.256 (0.086) 0.260 0.106 (0.146)
Net asset value at end of
period.................. $ 2.028 $ 1.522 $ 1.546 $ 1.450 $ 1.390 $ 1.134 $ 1.220 $ 0.960 $ 0.854
--------- --------- --------- -------- -------- -------- -------- -------- -----------
--------- --------- --------- -------- -------- -------- -------- -------- -----------

Total Return............. 36.55% 0.94% 9.12% 6.82% 29.53% (3.99)% 30.47% 16.35% (12.91)%
Net Assets (in
thousands).............. 318,253 157,660 140,396 82,335 47,770 26,641 19,456 10,050 7,212
Ratio of operating
expenses to average net
assets.................. 0.39% 0.45% 0.49% 0.60% 0.67% 0.91% 1.10% 1.23% 1.35%*
Ratio of net investment
income to average net
asset................... 2.46% 2.50% 2.36% 2.48% 2.89% 3.27% 2.60% 3.29% 2.39%*
Portfolio turnover
rate.................... 1.5% 1.8% 0.8% 1.2% 6.7% 25.5% 12.9% 20.9% 1.9%
</TABLE>

- ------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission
on May 1, 1987.

* Annualized
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC. 7
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
---------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED 07/02/90-
1995 1994 1993 1992 1991 12/31/90(A)
--------- --------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period.................... $ 1.176 $ 1.215 $ 0.917 $ 0.973 $ 0.871 $ 1.000
Net investment income......... 0.020 0.016 0.009 0.013 0.011 0.015
Net realized and unrealized
gains (losses) on
investments.................. 0.141 (0.039) 0.298 (0.056) 0.102 (0.129)
--------- --------- --------- -------- -------- -----------
Total from investment
operations................... 0.161 (0.023) 0.307 (0.043) 0.113 (0.114)
Dividends from net investment
income....................... (0.020) (0.016) (0.009) (0.013) (0.011) (0.015)
Distribution from net realized
gains on securities.......... (0.011) 0.000 0.000 0.000 0.000 0.000
Return of capital............. 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- -------- -------- -----------
Total from distributions...... (0.031) (0.016) (0.009) (0.013) (0.011) (0.015)
--------- --------- --------- -------- -------- -----------
Net increase (decrease) in net
assets....................... 0.130 (0.039) 0.298 (0.056) 0.102 (0.129)
Net asset value at end of
period....................... $ 1.306 $ 1.176 $ 1.215 $ 0.917 $ 0.973 $ 0.871
--------- --------- --------- -------- -------- -----------
--------- --------- --------- -------- -------- -----------
Total Return.................. 13.93% (1.94)% 33.73% (4.43)% 13.00% (11.76)%
Net Assets (in thousands)..... 686,475 563,765 281,608 47,560 22,854 9,352
Ratio of operating expenses to
average net assets........... 0.86% 0.85% 1.00% 1.23% 1.24% 1.04%*
Ratio of net investment income
to average net asset......... 1.60% 1.42% 0.84% 1.40% 1.17% 2.65%*
Portfolio turnover rate....... 55.6% 46.4% 31.8% 25.1% 24.7% 3.0%
</TABLE>

- ------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission
on July 2, 1990.

* Annualized
<PAGE>
8 HARTFORD STOCK FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value
at beginning
of period..... $ 2.801 $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977 $ 2.177 $ 2.107
Net investment
income........ 0.070 0.061 0.053 0.051 $ 0.059 $ 0.070 $ 0.065 $ 0.045 $ 0.045 $ 0.049
Net realized
and unrealized
gains (losses)
on
investments... 0.840 (0.111) 0.339 0.219 0.532 (0.179) 0.522 0.327 0.084 0.196
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
Total from
investment
operations.... 0.910 (0.050) 0.392 0.270 0.591 (0.109) 0.587 0.372 0.129 0.245
Dividends from
net investment
income........ (0.070) (0.061) (0.053) (0.051) (0.059) (0.070) (0.065) (0.045) (0.045) (0.049)
Distribution
from net
realized gains
on
securities.... (0.114) (0.187) (0.205) (0.181) (0.057) (0.144) (0.051) 0.000 (0.284) (0.126)
Return of
capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
Total from
distributions... (0.184) (0.248) (0.258) (0.232) (0.116) (0.214) (0.116) (0.045) (0.329) (0.175)
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
Net increase
(decrease) in
net assets.... 0.726 (0.298) 0.134 0.038 0.475 (0.323) 0.471 0.327 (0.200) 0.070
Net asset value
at end of
period........ $ 3.527 $ 2.801 $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977 $ 2.177
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------

Total Return... 34.10% (1.89)% 14.34% 10.04% 24.58% (3.87)% 26.02% 19.00% 5.41% 12.33%
Net Assets (in
thousands).... 1,876,884 1,163,158 968,425 569,903 406,489 257,553 266,756 187,511 170,319 148,126
Ratio of
operating
expenses to
average net
assets........ 0.48% 0.50% 0.53% 0.57% 0.60% 0.66% 0.64% 0.65% 0.65% 0.66%
Ratio of net
investment
income to
average net
asset......... 2.23% 2.17% 1.86% 1.90% 2.14% 2.76% 2.31% 2.08% 1.83% 2.24%
Portfolio
turnover
rate.......... 52.9% 63.8% 69.0% 69.8% 24.3% 20.2% 24.4% 22.9% 27.0% 25.7%
</TABLE>

<PAGE>
HARTFORD ADVISERS FUND, INC. 9
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value
at beginning
of period..... $ 1.600 $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213 $ 1.227 $ 1.179
Net investment
income........ 0.064 0.054 0.050 0.059 $ 0.063 $ 0.074 $ 0.062 $ 0.051 $ 0.051 $ 0.054
Net realized
and unrealized
gains (losses)
on
investments... 0.377 (0.100) 0.145 0.070 0.223 (0.059) 0.221 0.119 0.025 0.089
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
Total from
investment
operations.... 0.441 (0.046) 0.195 0.129 0.286 0.015 0.283 0.170 0.076 0.143
Dividends from
net investment
income........ (0.064) (0.054) (0.050) (0.059) (0.063) (0.074) (0.062) (0.051) (0.051) (0.054)
Distribution
from net
realized gains
on
securities.... (0.019) (0.052) (0.069) (0.043) (0.010) (0.048) (0.010) 0.000 (0.039) (0.041)
Return of
capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
Total from
distributions... (0.083) (0.106) (0.119) (0.102) (0.073) (0.122) (0.072) (0.051) (0.090) (0.095)
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
Net increase
(decrease) in
net assets.... 0.358 (0.152) 0.076 0.027 0.213 (0.107) 0.211 0.119 (0.014) 0.048
Net asset value
at end of
period........ $ 1.958 $ 1.600 $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213 $ 1.227
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
Total Return... 28.34% (2.74)% 12.25% 8.30% 20.33% 1.26% 21.72% 14.24% 6.08% 12.70%
Net Assets (in
thousands).... 4,262,769 3,034,034 2,426,550 985,747 631,424 416,839 371,917 264,750 239,704 127,214
Ratio of
operating
expenses to
average net
assets........ 0.65% 0.65% 0.69% 0.78% 0.81% 0.89% 0.89% 0.90% 0.91% 0.98%
Ratio of net
investment
income to
average net
asset......... 3.57% 3.34% 3.07% 3.55% 4.13% 4.65% 4.14% 3.93% 4.00% 4.36%
Portfolio
turnover
rate.......... 63.5% 60.0% 55.3% 72.8% 42.1% 35.7% 33.5% 30.9% 28.3% 23.3%
</TABLE>

<PAGE>
10 HARTFORD INTERNATIONAL ADVISERS FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE
OUTSTANDING THROUGHOUT
THE INDICATED PERIOD)
----------------------
03/01/95-
12/31/96(A)
----------------------
<S> <C>
Net asset value at beginning of period............ $ 1.000
Net investment income............................. 0.030
Net realized and unrealized gains (losses) on
investments...................................... 0.126
-------
Total from investment operations.................. 0.156
Dividends from net investment income.............. (0.030)
Distribution from net realized gains on
securities....................................... (0.017)
Return of capital................................. 0.000
-------
Total from distributions.......................... (0.047)
-------
Net increase (decrease) in net assets............. 0.109
Net asset value at end of period.................. $ 1.109
-------
-------
Total Return...................................... 15.84%
Net Assets (in thousands)......................... 31,264
Ratio of operating expenses to average net
assets........................................... 0.65%*
Ratio of net investment income to average net
asset............................................ 3.36%*
Portfolio turnover rate........................... 47.2%
</TABLE>

- ------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission
on March 1, 1995.

* Annualized
<PAGE>
HARTFORD BOND FUND, INC. 11
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of
period.................. $ 0.926 $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952 $ 1.033 $ 1.007
Net investment income.... 0.064 0.060 0.062 0.074 $ 0.072 $ 0.075 $ 0.079 $ 0.077 $ 0.080 $ 0.091
Net realized and
unrealized gains
(losses) on
investments............. 0.102 (0.100) 0.039 (0.019) 0.082 0.003 0.031 (0.007) (0.081) 0.026
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
Total from investment
operations.............. 0.166 (0.040) 0.101 0.055 0.154 0.078 0.110 0.070 (0.001) 0.117
Dividends from net
investment
income.................. (0.064) (0.060) (0.062) (0.074) (0.072) (0.075) (0.079) (0.077) (0.080) (0.091)
Distribution from net
realized gains on
securities.............. 0.000 (0.018) (0.019) (0.018) 0.000 0.000 0.000 0.000 0.000 0.000
Return of capital........ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
Total from
distributions........... (0.064) (0.078) (0.081) (0.092) (0.072) (0.075) (0.079) (0.077) (0.080) (0.091)
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets........... 0.102 (0.118) 0.020 (0.037) 0.082 0.003 0.031 (0.007) (0.081) 0.026
Net asset value at end of
period.................. $ 1.028 $ 0.926 $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952 $ 1.033
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------

Total Return............. 18.49% (3.95)% 10.24% 5.53% 16.43% 8.39% 12.10% 7.60% (0.01)% 12.19%
Net Assets (in
thousands).............. 342,495 247,458 239,602 128,538 97,377 70,915 61,602 54,215 50,037 57,160
Ratio of operating
expenses to average net
assets.................. 0.53% 0.55% 0.57% 0.64% 0.66% 0.67% 0.67% 0.69% 0.69% 0.71%
Ratio of net investment
income to average net
asset................... 6.51% 6.23% 5.93% 7.21% 7.29% 7.82% 8.09% 8.12% 8.15% 8.93%
Portfolio turnover
rate.................... 215.0% 328.8% 494.3% 434.1% 337.0% 161.6% 225.0% 230.3% 53.3% 46.7%
Current Yield *.......... 6.46% 7.19% 4.93% 6.48% 6.62% 8.17% 7.92% 9.15% 8.67% 8.82%
</TABLE>

- ------------------------------
* The yield information will fluctuate and publication of yield may not provide
a basis for comparison with bank deposits, other investments which are insured
and/or pay a fixed yield for a stated period of time, or other investment
companies. In addition, information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.
<PAGE>
12 HARTFORD MORTGAGE SECURITIES FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
---------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.... $ 0.984 $ 1.075 $ 1.079 $ 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011 $ 1.087 $ 1.077
Net investment income... 0.068 0.068 0.071 0.086 $ 0.088 $ 0.087 $ 0.088 $ 0.087 $ 0.093 $ 0.104
Net realized and
unrealized gains
(losses) on
investments............ 0.087 (0.086) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.067) 0.010
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
Total from investment
operations............. 0.155 (0.018) 0.067 0.050 0.149 0.096 0.127 0.082 0.026 0.114
Dividends from net
investment income...... (0.068) (0.068) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.093) (0.104)
Distribution from net
realized gains on
securities............. 0.000 (0.005) 0.000 0.000 0.000 0.000 0.000 0.000 (0.009) 0.000
Return of capital....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
Total from
distributions.......... (0.068) (0.073) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.102) (0.104)
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
Net increase (decrease)
in net assets.......... 0.087 (0.091) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.076) 0.010
Net asset value at end
of period.............. $ 1.071 $ 0.984 $ 1.075 $ 1.079 $ 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011 $ 1.087
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------

Total Return............ 16.17% (1.61)% 6.31% 4.64% 14.71% 9.70% 13.13% 8.38% 2.64% 11.13%
Net Assets (in
thousands)............. 327,565 304,147 365,198 258,711 162,484 105,620 85,908 85,075 84,075 100,518
Ratio of operating
expenses to average net
assets................. 0.47% 0.48% 0.49% 0.56% 0.58% 0.58% 0.58% 0.60% 0.61% 0.62%
Ratio of net investment
income to average net
asset.................. 6.50% 6.65% 6.49% 7.96% 8.25% 8.42% 8.64% 8.56% 9.02% 9.57%
Portfolio turnover
rate................... 489.4% 365.7% 183.4% 277.2% 152.2% 85.6% 91.3% 185.0% 143.6% 103.1%
Current Yield *......... 6.90% 7.84% 5.73% 7.51% 8.16% 8.21% 8.28% 9.12% 9.41% 8.90%
</TABLE>

- ------------------------------
* The yield information will fluctuate and publication of yield may not provide
a basis for comparison with bank deposits, other investments which are insured
and/or pay a fixed yield for a stated period of time, or other investment
companies. In addition, information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.
<PAGE>
HVA MONEY MARKET FUND, INC. 13
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
-----------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of
period............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment
income............... 0.056 0.039 0.029 0.036 $ 0.059 $ 0.078 $ 0.088 $ 0.071 $ 0.063 $ 0.066
Net realized and
unrealized gains
(losses) on
investments.......... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
Total from investment
operations........... 0.056 0.039 0.029 0.036 0.059 0.078 0.088 0.071 0.063 0.066
Dividends from net
investment income.... (0.056) (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063) (0.066)
Distribution from net
realized gains on
securities........... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Return of capital..... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
Total from
distributions........ (0.056) (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063) (0.066)
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
Net increase
(decrease) in net
assets............... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Net asset value at end
of
period............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
Total Return.......... 5.74% 3.95% 2.94% 3.63% 6.01% 8.09% 9.10% 7.40% 6.49% 6.77%

Net Assets (in
thousands)........... 339,709 321,465 234,088 190,246 177,483 194,462 129,808 127,346 104,002 79,683
Ratio of operating
expenses to average
net assets........... 0.45% 0.47% 0.48% 0.53% 0.54% 0.57% 0.58% 0.58% 0.58% 0.58%
Ratio of net
investment income to
average net asset.... 5.57% 3.99% 2.91% 3.60% 5.88% 7.80% 8.75% 7.19% 6.36% 6.56%
Portfolio turnover
rate................. -- -- -- -- -- -- -- -- -- --
Current Yield *....... 5.40% 5.43% 2.89% 3.09% 4.66% 7.73% 8.21% 8.49% 7.17% 5.45%
Effective Yield *..... 5.54% 5.58% 2.93% 3.14% 4.79% 8.03% 8.55% 8.85% 7.43% 5.60%
</TABLE>

- ------------------------------
* The yield information will fluctuate and publication of yield may not provide
a basis for comparison with bank deposits, other investments which are insured
and/or pay a fixed yield for a stated period of time, or other investment
companies. In addition, information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.
<PAGE>
14 HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
--------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset
value at
beginning of
period....... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment
income....... 0.054 0.036 0.027 0.032 $ 0.055 $ 0.073 $ 0.081 $ 0.067 $ 0.056 $ 0.061
Net realized
and
unrealized
gains
(losses) on
investments... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
Total from
investment
operations... 0.054 0.036 0.027 0.032 0.055 0.073 0.081 0.067 0.056 0.061
Dividends from
net
investment
income....... (0.054) (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056) (0.061)
Distribution
from net
realized
gains on
securities... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Return of
capital...... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
Total from
distri
butions...... (0.054) (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056) (0.061)
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
Net increase
(decrease) in
net assets... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Net asset
value at end
of
period....... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------

Total
Return....... 5.52% 3.67% 2.68% 3.22% 5.61% 7.52% 8.43% 6.92% 5.75% 6.29%
Net Assets (in
thousands)... 10,070 9,619 9,449 10,525 11,257 10,496 7,814 7,262 5,688 5,812
Ratio of
operating
expenses to
average net
assets....... 0.57% 0.58% 0.58% 0.75% 0.73% 0.73% 0.77% 0.75% 0.66% 0.60%
Ratio of net
investment
income to
average net
asset........ 5.38% 3.63% 2.65% 3.19% 5.48% 7.29% 8.14% 6.76% 5.57% 6.08%
Portfolio
turnover
rate......... -- -- -- -- -- -- -- -- -- --
Current Yield
*............ 5.47% 5.14% 2.67% 2.69% 4.24% 7.59% 7.53% 8.27% 6.17% 5.26%
Effective
Yield *...... 5.62% 5.27% 2.71% 2.72% 4.31% 7.88% 7.82% 8.62% 6.36% 5.40%
</TABLE>

- ------------------------------
* The yield information will fluctuate and publication of yield may not provide
a basis for comparison with bank deposits, other investments which are insured
and/or pay a fixed yield for a stated period of time, or other investment
companies. In addition, information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.
<PAGE>
HARTFORD MUTUAL FUNDS 15
- --------------------------------------------------------------------------------

THE FUNDS

The Funds are made available to serve as the underlying investment vehicles
for certain variable annuity and variable life insurance separate accounts of
ITT Hartford Life Insurance Companies. The Hartford Investment Management
Company, Inc. ("HIMCO" or the "Adviser") serves as investment adviser to
Hartford Index Fund, Inc., Hartford Bond Fund, Inc., Hartford Mortgage
Securities Fund, Inc., HVA Money Market Fund, Inc. and Hartford U.S. Government
Money Market Fund, Inc. and as investment manager to Hartford Capital
Appreciation Fund, Inc., Hartford Dividend and Growth Fund, Inc., Hartford
International Opportunities Fund, Inc., Hartford Stock Fund, Inc., Hartford
Advisers Fund, Inc., and Hartford International Advisers Fund, Inc. Wellington
Management Company ("WMC" or the "Sub-Adviser") serves as investment sub-adviser
to Hartford Capital Appreciation Fund, Inc., Hartford Dividend and Growth Fund,
Inc., Hartford International Opportunities Fund, Inc., Hartford Stock Fund,
Inc., Hartford Advisers Fund, Inc., and Hartford International Advisers Fund,
Inc.
INVESTMENT OBJECTIVES AND
POLICIES OF THE FUNDS

The Funds have different investment objectives and policies, as described
below. The differences in objectives and policies among the Funds can be
expected to affect the return of each Fund and the degree of market and
financial risk to which each Fund is subject. For more information about the
investment strategies employed by the Funds, see "Common Investment Policies and
Risk Factors." The investment objective of each Fund is fundamental and cannot
be changed without the affirmative vote of a majority of the outstanding voting
securities of the particular Fund. All other policies not specifically
designated as fundamental are nonfundamental and may be changed by the Board of
Directors of the particular Fund. See the Statement of Additional Information
for a complete listing of investment restrictions.

HARTFORD CAPITAL APPRECIATION FUND, INC.

Hartford Capital Appreciation Fund, Inc. (the "Capital Appreciation Fund")
was incorporated in 1983 under Maryland law.

INVESTMENT OBJECTIVE.

The Capital Appreciation Fund seeks to achieve growth of capital by
investing in securities selected solely on the basis of potential for capital
appreciation; income, if any, is an incidental consideration.

INVESTMENT POLICIES.

The Capital Appreciation Fund seeks to achieve its objective by investing
primarily in equity securities and securities convertible into equity
securities. The Sub-Adviser identifies, through fundamental analysis, companies
that it believes have substantial near-term capital appreciation potential
regardless of company size or industry sector. This approach is sometimes
referred to as a "stock picking" approach and results in having all market
capitalization sectors (i.e., small, medium, and large companies) represented in
the portfolio. Small and medium companies are selected primarily on the basis of
dynamic earnings growth potential. Larger companies are selected primarily based
on the expectation for a catalyst event that will trigger stock price
appreciation. Fundamental analysis involves the assessment of a company through
such factors as its business environment, management, balance sheet, income
statement, anticipated earnings, revenues, dividends, and other related measures
of value.

The Capital Appreciation Fund will invest primarily in securities issued by
U.S. companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Capital Appreciation Fund's total assets. The Capital Appreciation Fund's
investments in securities of non-U.S. companies may include ADRs and GDRs. When
selecting securities of non-U.S. issuers, the Sub-Adviser also will evaluate the
economic and political climate and the principal securities markets of the
country in which an issuer is located. The Capital Appreciation Fund will be
subject to certain risks as a result of its ability to invest in the securities
of non-U.S. companies. See "Common Investment Policies and Risk Factors."

From time to time, the Capital Appreciation Fund may invest in debt
securities. The non-convertible debt securities in which the Capital
Appreciation Fund may invest include debt securities assigned within the four
highest bond rating categories by Moody's or S&P, i.e., investment grade, or
considered to be of comparable quality as determined by the Sub-Adviser. In
addition, the Capital Appreciation Fund may invest up to 5% of total assets in
high yield debt securities, commonly known as "junk bonds." Such securities are
rated as low as "C" by Moody's and S&P, or if unrated, are of comparable quality
as determined by the Sub-Adviser. See "Common Investment Policies and Risk
Factors."

Although the Capital Appreciation Fund intends to be fully invested in
equity and debt securities, it may hold cash or cash equivalents and may invest
any portion or all of its assets in high quality money market instruments in the
following circumstances: (1) during periods when the Sub-Adviser deems it
necessary for temporary defensive purposes; (2) to meet liquidity needs; or (3)
in anticipation of investment of its assets.
<PAGE>
16 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

The Capital Appreciation Fund may invest up to 10% of its total assets in
illiquid securities and may from time to time purchase securities on a
when-issued or delayed delivery basis. In addition, the Capital Appreciation
Fund may invest to a limited extent in other investment companies and may enter
into certain currency transactions. Finally, the Capital Appreciation Fund may
invest in options, futures, and options on futures. See "Common Investment
Policies and Risk Factors."
HARTFORD DIVIDEND AND GROWTH FUND, INC.

Hartford Dividend and Growth Fund, Inc. (the "Dividend and Growth Fund") was
incorporated in 1993 under Maryland law.

INVESTMENT OBJECTIVE.

The Dividend and Growth Fund seeks to achieve a high level of current income
consistent with growth of capital and reasonable investment risk.

INVESTMENT POLICIES.

The Dividend and Growth Fund seeks to achieve its objective by investing
primarily in equity securities and securities convertible into equity securities
that typically have above average income yield and whose prospects for capital
appreciation are considered favorable by the Sub-Adviser. The Sub-Adviser uses
fundamental analysis to evaluate a security for purchase or sale by the Dividend
and Growth Fund. Fundamental analysis involves the assessment of a company
through such factors as its business environment, management, balance sheet,
income statement, anticipated earnings, revenues, dividends, and other related
measures of value. As a key component of the fundamental analysis done for the
Dividend and Growth Fund, the Sub-Adviser evaluates a company's ability to
sustain and potentially increase its dividend. The Dividend and Growth Fund's
portfolio will be broadly diversified by industry and company; the Fund seeks to
diversify its investments over a carefully selected list of securities in order
to moderate the risks inherent in equity investments.

The Dividend and Growth Fund will invest primarily in securities issued by
U.S. companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Dividend and Growth Fund's total assets. The Dividend and Growth Fund's
investments in securities of non-U.S. companies may include ADRs and GDRs. When
selecting securities of non-U.S. issuers, the Sub-Adviser also will evaluate the
economic and political climate and the principal securities markets of the
country in which an issuer is located. The Dividend and Growth Fund will be
subject to certain risks as a result of its ability to invest in the securities
of non-U.S. companies. See "Common Investment Policies and Risk Factors."

From time to time, the Dividend and Growth Fund may invest in debt
securities. The non-convertible debt securities in which the Dividend and Growth
Fund may invest include debt securities assigned within the four highest bond
rating categories by Moody's or S&P, i.e., investment grade, or considered to be
of comparable quality as determined by the Sub-Adviser.

Although the Dividend and Growth Fund intends to be fully invested in equity
and debt securities, it may hold cash or cash equivalents and may invest any
portion or all of its assets in high quality money market instruments in the
following circumstances: (1) during periods when the Sub-Adviser deems it
necessary for temporary defensive purposes; (2) to meet liquidity needs; or (3)
in anticipation of investment of its assets.

The Dividend and Growth Fund may invest up to 15% of its total assets in
illiquid securities and may from time to time purchase securities on a
when-issued or delayed delivery basis. In addition, the Dividend and Growth Fund
may invest to a limited extent in other investment companies and may engage in
certain currency transactions. Finally, the Dividend and Growth Fund may invest
in options, futures, and options on futures. See "Common Investment Policies and
Risk Factors."
HARTFORD INDEX FUND, INC.

Hartford Index Fund, Inc. (the "Index Fund") was incorporated in 1983 under
Maryland law.

INVESTMENT OBJECTIVE.

The Index Fund seeks to provide investment results which approximate the
price and yield performance of publicly-traded common stocks in the aggregate.

INVESTMENT POLICIES.

The Index Fund uses the Standard & Poor's 500 Composite Stock Price Index
(the "Index") as its standard performance comparison because it represents a
significant proportion of the total market value of all common stocks, is well
known to investors and, in the opinion of the management of the Index Fund, is
representative of the performance of publicly-traded common stocks. Therefore,
the Index Fund attempts to approximate the capital performance and dividend
income of the Index.

The Index Fund will generally invest in no fewer than 475 stocks. The
Adviser will select stocks for the Index Fund's portfolio after taking into
account their individual weights in the Index. Temporary cash balances, normally
not expected to exceed 2% of the Index Fund's net assets, may be invested in
short-term money market instruments. The Index Fund may invest in ADRs and GDRs.
The Index Fund may also from time to time enter into stock index futures
contracts and options on such futures contracts to maintain optimal exposure to
the Index and to hedge
<PAGE>
HARTFORD MUTUAL FUNDS 17
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against changes in security prices. See "Common Investment Policies and Risk
Factors."

The Index is composed of 500 selected common stocks, most of which are
listed on the New York Stock Exchange. S&P chooses the stocks to be included in
the Index on a proprietary basis. The weightings of stocks in the Index are
based on each stock's relative total market value, that is, its market price per
share times the number of shares outstanding. Because of this weighting, as of
December 31, 1995, approximately fifty percent of the Index was composed of the
fifty-nine largest companies, the five largest being General Electric Co., AT&T
Corp., Exxon Corp., Coca-Cola Company and Merck and Co.

No attempt is made to "manage" the Index Fund's portfolio in the traditional
sense, using economic, financial and market analysis, nor will the adverse
financial situation of a company directly result in its elimination from the
Index Fund's portfolio unless, of course, the company is removed from the Index.
From time to time administrative adjustments may be made in the Index Fund's
portfolio because of mergers, changes in the composition of the Index and
similar reasons.

The Index Fund's management believes that the "indexing" approach described
above is an effective method of substantially duplicating percentage changes in
the Index. It is a reasonable expectation that the correlation between the
performance of the Index Fund (before expenses) and that of the Index will be
above 98%; a figure of 100% would indicate perfect correlation. The Index Fund
is regularly monitored to determine if it is meeting its targeted performance.
In the event of any deviation from the targeted performance, the security
holdings of the Index Fund are rebalanced to better replicate the index. At some
time in the future, the Board of Directors of the Index Fund may, subject to
shareholder approval, select another index if such a standard of comparison is
deemed to be more representative of the performance of common stocks.

The Index Fund's ability to approximate the performance of the Index will
depend to some extent on the size of cash flows into and out of the Index Fund.
Investment changes to accommodate these cash flows will be made to maintain the
similarity of the Index Fund's portfolio to the Index, to the maximum
practicable extent.

"Standard & Poor's-Registered Trademark-", "S&P-Registered Trademark-", "S&P
500-Registered Trademark-", "Standard & Poor's 500", and "500" are trademarks of
The McGraw-Hill Companies, Inc. and have been licensed for use by the Hartford
Life Insurance Company. The Index Fund is not sponsored, endorsed, sold or
promoted by S&P. S&P makes no representation or warranty, express or implied, to
the shareholders of the Index Fund, regarding the advisability of investing in
securities generally or in the Index Fund particularly or the ability of the S&P
500 Index to track general stock market performance. S&P's only relationship to
Hartford Life Insurance Company is the licensing of certain trademarks and trade
names of S&P and of the S&P 500 Index which is determined, composed and
calculated by S&P without regard to the Index Fund or Hartford Life Insurance
Company. S&P has no obligation to take the needs of the Index Fund or its
shareholders or Hartford Life Insurance Company into consideration in
determining, composing or calculating the S&P 500 Index. S&P is not responsible
for and has not participated in the determination of the net asset value of the
Index Fund or the timing of the issuance or sale of shares in the Index Fund.
S&P has no obligation or liability in connection with the administration,
marketing or trading of the Index Fund.

In addition, S&P does not guarantee the accuracy and/ or the completeness of
the S&P 500 Index or any data included therein and S&P shall have no liability
for any errors, omissions, or interruptions therein. S&P makes no warranty,
express or implied, as to results to be obtained by the Index Fund, its
shareholders or any other person or entity from the use of the S&P 500 Index or
any data included therein. S&P makes no express or implied warranties, and
expressly disclaims all warranties of merchantability or fitness for a
particular purpose or use with respect to the S&P 500 Index or any data included
therein. Without limiting any of the foregoing, in no event shall S&P have any
liability for any special, punitive, indirect, or consequential damages
(including lost profits), even if notified of the possibility of such damages.

HARTFORD INTERNATIONAL OPPORTUNITIES
FUND, INC.

Hartford International Opportunities Fund, Inc. (the "International
Opportunities Fund") was incorporated in 1990 under Maryland law.

INVESTMENT OBJECTIVE.

The International Opportunities Fund seeks to achieve long-term total rate
of return consistent with prudent investment risk through investment primarily
in equity securities issued by non-U.S. companies.

INVESTMENT POLICIES.

The International Opportunities Fund seeks to achieve its investment
objective by investing in a diversified portfolio of primarily equity securities
which covers a broad range of countries, industries, and companies. The
International Opportunities Fund anticipates that, under normal market
conditions, it will diversify its investments among a minimum of five countries;
the Fund will not invest more than 20% of its net assets in securities of
issuers located in any one country, except that it may invest up to 35% of its
net assets in securities of issuers located in any one of the following
countries: Australia, Canada, France, Japan, the United Kingdom or Germany.
<PAGE>
18 HARTFORD MUTUAL FUNDS
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Securities in which the International Opportunities Fund invests are
denominated in both U.S. dollars and non-U.S. currencies (including the European
Currency Unit) and generally are traded on non-U.S. markets.

Under normal market conditions, at least 70% of the International
Opportunities Fund's total assets will be invested in equity securities issued
by non-U.S. companies. Equity securities in which the International
Opportunities Fund invests include common stocks, preferred stocks, convertible
securities, and warrants and rights to acquire such securities. The
International Opportunities Fund may invest in ADRs and GDRs. See "Common
Investment Policies and Risk Factors." Equity investments are selected on the
basis of fundamental analysis to identify those markets and securities that
provide capital appreciation potential. Fundamental analysis involves the
assessment of a company through such factors as its business environment,
management, balance sheet, income statement, anticipated earnings, revenues,
dividends and other related measures of value. In analyzing companies for
investment, the Sub-Adviser looks for, among other things, a strong balance
sheet, attractive industry dynamics, strong competitive advantages, and
attractive relative value within the context of a security's primary trading
market. In addition to fundamental analysis of companies and industries, the
Sub-Adviser evaluates the economic and political environments of the countries
in which the securities are traded. The International Opportunities Fund's
investments in debt securities will be substantially similar to the debt
securities investments permitted for the International Advisers Fund. See
"Hartford International Advisers Fund, Inc. -- Investment Policies."

Although the International Opportunities Fund intends to be fully invested
in equity and debt securities, it may hold cash and cash equivalents (U.S.
dollars, non-U.S. currencies, multinational currency units) and may invest any
portion or all of its assets in high quality money market instruments of U.S.,
non-U.S., or supranational issuers in the following circumstances: (1) during
periods when the Sub-Adviser deems it necessary for temporary defensive
purposes; (2) to meet liquidity needs; or (3) in anticipation of investment of
its assets. The International Opportunities Fund may invest in non-U.S. money
market funds and commingled pools offered by non-U.S. banks.

The International Opportunities Fund will be subject to certain risks as a
result of its ability to invest in the securities of non-U.S. companies. The
International Opportunities Fund is permitted to invest up to 15% of its total
assets in illiquid securities and may from time to time purchase securities on a
when- issued or delayed delivery basis. In addition, the International
Opportunities Fund may invest to a limited extent in other investment companies
and enter into certain currency transactions. Finally, the International
Opportunities Fund is permitted to invest in options, futures and options on
futures. See "Common Investment Policies and Risk Factors."
HARTFORD STOCK FUND, INC.

Hartford Stock Fund, Inc. (the "Stock Fund") was incorporated in 1976 under
Maryland law.

INVESTMENT OBJECTIVE.

The Stock Fund seeks to achieve long-term capital growth primarily through
capital appreciation, with income a secondary consideration, by investing in
primarily equity securities.

INVESTMENT POLICIES.

The Stock Fund seeks to achieve its objective by investing primarily in
equity securities and securities convertible into equity securities, using a
two-tiered investment approach. First, under what is sometimes referred to as a
"top down" approach, the Sub-Adviser analyzes the macro economic and investment
environment. This includes an evaluation of economic conditions, U.S. fiscal and
monetary policy, demographic trends, and investor sentiment. Through top down
analysis, the Sub-Adviser anticipates secular and cyclical changes and
identifies industries and economic sectors that are expected to grow faster than
the overall economy.

Second, top down analysis is followed by what is sometimes referred to as a
"bottom up" approach, which is the use of fundamental analysis to identify
specific securities for purchase or sale. The Stock Fund's portfolio emphasizes
high-quality growth companies. The key characteristics of high-quality growth
companies include a leadership position within an industry, a strong balance
sheet, a high return on equity, sustainable or increasing dividends, a strong
management team, and a globally competitive position. Fundamental analysis
involves the assessment of a company through such factors as its business
environment, management, balance sheet, income statement, anticipated earnings,
revenues, dividends, and other related measures of value.

The Stock Fund will invest primarily in securities issued by U.S. companies
but may also invest in securities issued by non-U.S. companies, including those
traded in U.S. markets and non-U.S. markets. Under normal circumstances,
securities of non-U.S. companies will not exceed 20% of the Stock Fund's total
assets. The Stock Fund's investments in securities of non-U.S. companies may
include ADRs and GDRs. When selecting securities of non-U.S. issuers, the Sub-
Adviser also will evaluate the economic and political climate and the principal
securities markets of the country in which an issuer is located. The Stock Fund
will be subject to certain risks as a result of its ability to invest in the
securities of non-U.S. companies. See "Common Investment Policies and Risk
Factors." From time to time, the Stock Fund may invest in debt securities. The
non-convertible debt securities in
<PAGE>
HARTFORD MUTUAL FUNDS 19
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which the Stock Fund may invest include debt securities assigned within the four
highest bond rating categories by Moody's or S&P, i.e., investment grade, or
considered to be of comparable quality as determined by the Sub-Adviser.

Although the Stock Fund intends to be fully invested primarily in equity
securities and securities convertible into equity securities it may hold cash or
cash equivalents and may invest any portion or all of its assets in high quality
money market instruments in the following circumstances: (1) during periods when
the Sub-Adviser deems it necessary for temporary defensive purposes; (2) to meet
liquidity needs; or (3) in anticipation of investment of its assets.

The Stock Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Stock Fund may invest to a limited
extent in other investment companies and may enter into certain currency
transactions. Finally, the Stock Fund may invest in options, futures and options
on futures. See "Common Investment Policies and Risk Factors."
HARTFORD ADVISERS FUND, INC.

Hartford Advisers Fund, Inc. (the "Advisers Fund") was incorporated in 1982
under Maryland law.

INVESTMENT OBJECTIVE.

The Advisers Fund seeks to achieve maximum long-term total rate of return
consistent with prudent investment risk by investing in common stock and other
equity securities, bonds and other debt securities, and money market
instruments.

INVESTMENT POLICIES.

The Advisers Fund seeks to achieve its objective through the active
allocation of its assets among the asset categories of equity and debt
securities and money market instruments, based upon the Sub-Adviser's judgment
of the projected investment environment for financial assets, relative
fundamental values and attractiveness of each asset category, and expected
future returns of each asset category. The Sub-Adviser will base its asset
allocation decisions on fundamental analysis and will not attempt to make short-
term market timing decisions among asset categories. As a result, shifts in
asset allocation are expected to be gradual and continuous and the Advisers Fund
will normally have some portion of its assets invested in each asset category.
The Advisers Fund does not have percentage limitations on the amount allocated
to each asset category.

The Advisers Fund's investments in equity securities and securities that are
convertible into equity securities will be substantially similar to the
investments permitted for the Stock Fund. See "Hartford Stock Fund, Inc. --
Investment Policies." The Advisers Fund's investments in debt securities will be
substantially similar to the investments permitted for the Bond Fund. See
"Hartford Bond Fund, Inc. -- Investment Policies." In the event a security owned
by the Advisers Fund is downgraded to a rating category below investment grade,
the Advisers Fund generally will sell it within a reasonable period thereafter
based on the Sub-Adviser's outlook for the issuer and the security.

The Advisers Fund will invest primarily in securities issued by U.S.
companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Advisers Fund's total assets. The Advisers Fund's investments in securities of
non-U.S. companies may include ADRs and GDRs. When selecting securities of non-
U.S. issuers, the Sub-Adviser also will evaluate the economic and political
climate and the principal securities markets of the country in which an issuer
is located. The Advisers Fund will be subject to certain risks as a result of
its ability to invest in the securities of non-U.S. companies. See "Common
Investment Policies and Risk Factors."

The Advisers Fund may hold cash and cash equivalents and may invest any
portion or all of its assets in high quality money market instruments in the
following circumstances: (1) when the Sub-Adviser expects returns on such
instruments to be attractive relative to investments in equity and debt
securities; (2) during periods when the Sub-Adviser deems it necessary for
temporary defensive purposes; (3) to meet liquidity needs; or (4) in
anticipation of investment of its assets.

The Advisers Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Advisers Fund may invest to a limited
extent in other investment companies and enter into certain currency
transactions. Finally, the Advisers Fund may invest in options, futures, and
options on futures. See "Common Investment Policies and Risk Factors."
HARTFORD INTERNATIONAL ADVISERS FUND, INC.

Hartford International Advisers Fund, Inc. (the "International Advisers
Fund") was incorporated in 1994 under Maryland law.

INVESTMENT OBJECTIVE.

The International Advisers Fund seeks to achieve maximum long-term total
rate of return consistent with prudent investment risk.

INVESTMENT POLICIES.

The International Advisers Fund seeks to achieve its objective through the
active allocation of its assets among the asset categories of equity and debt
securities and money market instruments, based upon its judgment of the
<PAGE>
20 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

projected investment environment for financial assets, relative fundamental
values and attractiveness of each asset category, and expected future returns of
each asset category. The Sub-Adviser will base its asset allocation decisions on
fundamental analysis and will not attempt to make short-term timing decisions
among asset categories. As a result, shifts in asset allocation are expected to
be gradual and continuous and the International Advisers Fund will normally have
some portion of its assets invested in each asset category at all times. The
International Advisers Fund does not have percentage limitations on the amount
allocated to each asset category.

The International Advisers Fund will consist of a diversified portfolio of
securities covering a broad range of countries, industries, and companies. The
International Advisers Fund anticipates that, under normal market conditions, it
will diversify its investments among a minimum of five countries; the Fund will
not invest more than 20% of its net assets in securities of issuers located in
any one country, except that it may invest up to 35% of its net assets in
securities of issuers located in any one of the following countries: Australia,
Canada, France, Japan, the United Kingdom or Germany.

Securities in which the International Advisers Fund invests are denominated
in both U.S. dollars and non-U.S. currencies (including the European Currency
Unit) and generally are traded on non-U.S. markets.

The International Advisers Fund's investments in equity securities will be
substantially similar to the equity securities investments permitted for the
International Opportunities Fund. See "Hartford International Opportunities
Fund, Inc. -- Investment Policies."

The International Advisers Fund's investments in debt securities include,
but are not limited to: (1) debt securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities; (2) debt obligations issued or
guaranteed by a non-U.S. sovereign government or one of its agencies or
political subdivisions, including Brady Bonds (see "Common Investment Policies
and Risk Factors"); (3) debt obligations issued or guaranteed by supranational
organizations such as the World Bank; (4) debt obligations of non-U.S. banks and
bank holding companies; (5) non-U.S. corporate debt securities; (6) debt
obligations of U.S. banks and corporations; (7) non-U.S. commercial paper; (8)
asset-backed securities and mortgage-related securities, including CMOs; these
debt securities will be rated investment grade by Moody's or S&P, or, if
unrated, will be determined by the Sub-Adviser to be of comparable quality (see
"Common Investment Policies and Risk Factors"); and (9) repurchase agreements
involving any of the foregoing. The International Advisers Fund's investments in
debt securities will be based on an analysis of such factors as yield, credit
quality, economic policies, inflation rates, and the pace of economic growth in
various markets.

Debt securities in which the International Advisers Fund may invest include
investment grade, non-convertible debt securities assigned within the four
highest bond rating categories by Moody's or S&P, or, if unrated, which are
determined by the Sub-Adviser to be of comparable quality. In addition, the
International Advisers Fund may invest up to 15% of its total assets in high
yield debt securities, commonly known as "junk bonds." Such securities are rated
as low as "C" by Moody's and by S&P, or, if unrated, are of comparable quality
as determined by the Sub-Adviser. See "Common Investment Policies and Risk
Factors."

The International Advisers Fund may hold cash and cash equivalents (U.S.
dollars, non-U.S. currencies, multinational currency units) and may invest any
portion or all of its assets in high quality money market instruments,
including, but not limited to, instruments of U.S., non-U.S., or supranational
issuers. These money market instruments may also include non-U.S. money market
funds and commingled pools offered by non-U.S. banks. The International Advisers
Fund may invest in high quality money market instruments in the following
circumstances: (1) when the Sub-Adviser expects returns on such instruments to
be attractive relative to investments in equity and debt securities; (2) during
periods when the Sub-Adviser deems it necessary for temporary defensive
purposes; (3) to meet liquidity needs; or (4) in anticipation of investment of
its assets.

The International Advisers Fund will be subject to certain risks as a result
of its ability to invest in the securities of non-U.S. companies. The
International Advisers Fund may invest up to 15% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the International Advisers Fund may invest
to a limited extent in other investment companies and may enter into certain
currency transactions. Finally, the International Advisers Fund may invest in
options, futures, and options on futures. See "Common Investment Policies and
Risk Factors."
HARTFORD BOND FUND, INC.

Hartford Bond Fund, Inc. (the "Bond Fund") was incorporated in 1982 under
Maryland law.

INVESTMENT OBJECTIVE.

The Bond Fund seeks to achieve maximum current income consistent with
preservation of capital by investing primarily in fixed-income securities.

INVESTMENT POLICIES.

The Bond Fund's investments in bonds and other debt securities include: (i)
securities issued or guaranteed as to principal or interest by the U.S.
Government, its agencies or instrumentalities; (ii) publicly-traded,
non-convertible debt
<PAGE>
HARTFORD MUTUAL FUNDS 21
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securities issued or guaranteed by U.S. corporations or other issuers and rated
investment grade by Moody's or S&P, or if unrated, determined by the Adviser to
be of comparable quality; (iii) asset-backed securities and mortgage-related
securities, including CMOs, which are rated investment grade by Moody's or S&P,
or, if unrated, which are determined by the Adviser to be of comparable quality
(see "Common Investment Policies and Risk Factors"); (iv) securities issued or
guaranteed as to principal or interest by a sovereign government or one of its
agencies or political subdivisions, supranational entities such as development
banks, non-U.S. corporations, banks or bank holding companies, or other non-U.S.
issuers and rated investment grade by Moody's or S&P, or, if unrated, which are
determined by the Adviser to be of comparable quality. Bonds and other debt
securities owned by the Bond Fund will be denominated in U.S. dollars. In the
event a security owned by the Bond Fund is downgraded to a rating category below
investment grade, the Bond Fund generally will sell it within a reasonable
period thereafter based on the Adviser's outlook for the issuer and the
security.

The Bond Fund will invest primarily in securities issued by U.S. companies
but may also invest in securities issued by non-U.S. companies, including those
traded in U.S. markets and non-U.S. markets. Under normal circumstances,
securities of non-U.S. companies will not exceed 20% of the Bond Fund's total
assets. The Bond Fund's investments in securities of non-U.S. companies may
include ADRs and GDRs. When selecting securities of non-U.S. issuers, the
Adviser also will evaluate the economic and political climate, and the principal
securities markets of the country in which an issuer is located. The Bond Fund
will be subject to certain risks as a result of its ability to invest in the
securities of non-U.S. companies. See "Common Investment Policies and Risk
Factors."

The Bond Fund will invest at least 65% of its total assets in bonds and debt
securities with a maturity of at least one year. The Bond Fund may invest up to
15% of its total assets in preferred stocks, convertible securities, and
securities carrying warrants to purchase equity securities. The Bond Fund will
not invest in common stocks directly, but may retain, for reasonable periods of
time, common stocks acquired upon conversion of debt securities or upon exercise
of warrants acquired with debt securities.

Although the Bond Fund intends to be fully invested in equity and debt
securities, it may hold cash or cash equivalents and may invest any portion or
all of its assets in high quality money market instruments in the following
circumstances: (1) during periods when the Adviser deems it necessary for
temporary defensive purposes; (2) to meet liquidity needs; or (3) in
anticipation of investment of its assets.

The Bond Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Bond Fund may invest to a limited
extent in other investment companies.
HARTFORD MORTGAGE SECURITIES FUND, INC.

Hartford Mortgage Securities Fund, Inc. (the "Mortgage Securities Fund") was
incorporated in 1984 under Maryland law.

INVESTMENT OBJECTIVE.

The Mortgage Securities Fund seeks maximum current income consistent with
safety of principal and maintenance of liquidity by investing primarily in
mortgage-related securities, including securities issued by the Government
National Mortgage Association.

INVESTMENT POLICIES.

The Mortgage Securities Fund seeks to achieve its objective by investing,
under normal circumstances, at least 65% of its total assets in high quality
mortgage-related securities either (i) issued by U.S. Government agencies,
instrumentalities or sponsored corporations or (ii) rated A or better by Moody's
or S&P or, if not rated, which are of equivalent investment quality as
determined by the Adviser. At times the Mortgage Securities Fund may invest in
mortgage-related securities not meeting the foregoing investment quality
standards when the Adviser deems such investments to be consistent with the
Fund's investment objective; however, no such investments will be made in excess
of 20% of the value of the Fund's total assets. Such investments will be
considered mortgage-related securities for purposes of the policy that the Fund
invest at least 65% of the value of its total assets in mortgage-related
securities, including securities issued by the GNMA. See "Common Investment
Policies and Risk Factors".

Consistent with its objective, the Mortgage Securities Fund may seek to
increase its current return by writing covered call or covered put options with
respect to some or all of the securities held in its portfolio. In addition,
through the writing and purchase of options and the purchase and sale of
interest rate futures contracts and related options, the Mortgage Securities
Fund may at times seek to reduce fluctuations in net asset value by hedging
against a decline in the value of securities owned by the Fund or an increase in
the price of securities which the Fund plans to purchase. The Mortgage
Securities Fund may also invest up to 10% of its total assets in illiquid
securities, purchase asset-backed securities, and enter into swap transactions.
See "Common Investment Policies and Risk Factors."

Although the Mortgage Securities Fund intends to be fully invested in debt
securities, it may hold cash or cash equivalents and invest any portion or all
of its assets in high
<PAGE>
22 HARTFORD MUTUAL FUNDS
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quality money market instruments in the following circumstances: (1) during
periods when the Sub-Adviser deems it necessary for temporary defensive
purposes; (2) to meet liquidity needs; or (3) in anticipation of investment of
its assets.
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.

Hartford U.S. Government Money Market Fund, Inc. (the "U.S. Government Money
Market Fund") was incorporated in 1982 under Maryland law.

INVESTMENT OBJECTIVE.

The U.S. Government Money Market Fund seeks to achieve maximum current
income consistent with preservation of capital.

INVESTMENT POLICIES.

The U.S. Government Money Market Fund's portfolio will consist entirely of
cash and investments permitted by Rule 2a-7 under the 1940 Act. Each has an
effective maturity date of 397 days or less, computed in accordance with Rule
2a-7, from date of purchase. The average maturity of the portfolio will vary
according to the Adviser's appraisal of money market conditions and will not
exceed 90 days.
The U.S. Government Money Market Fund seeks to achieve its objective by
investing in short-term, marketable obligations issued or guaranteed by the U.S.
Government or by agencies or instrumentalities of the U.S. Government, whether
or not they are guaranteed by the full faith and credit of the U.S. government.
HVA MONEY MARKET FUND, INC.

HVA Money Market Fund, Inc. (the "Money Market Fund") was incorporated in
1982 under Maryland law.

INVESTMENT OBJECTIVE.

The Money Market Fund seeks to achieve maximum current income consistent
with liquidity and preservation of capital.

INVESTMENT POLICIES.

The Money Market Fund's portfolio will consist entirely of cash and
investments permitted under Rule 2a-7 of the 1940 Act. Each has an effective
maturity date of 397 days or less computed in accordance with Rule 2a-7. The
average maturity of the portfolio will vary according to the Adviser's appraisal
of money market conditions and will not exceed 90 days.

The Money Market Fund seeks to achieve its objective by investing in money
market securities such as, but not limited to: (a) banker's acceptances; (b)
obligations of governments (whether U.S. or non-U.S.) and their agencies and
instrumentalities; (c) short-term corporate obligations, including commercial
paper, notes, and bonds; (d) other short-term debt obligations; (e) obligations
of U.S. banks, non-U.S. branches of U.S. banks (Eurodollars), U.S. branches and
agencies of non-U.S. banks (Yankee dollars), and non-U.S. branches of non-U.S.
banks; and (f) asset-backed securities. See "Common Investment Policies and Risk
Factors." Under normal circumstances, foreign securities will not exceed 25% of
the Money Market Fund's total assets.

The Money Market Fund will make portfolio investments primarily in
anticipation of or in response to changing economic and money market conditions
and trends. However, it is anticipated that from time to time the Money Market
Fund will take advantage of temporary disparities in the yield relationships
among the different segments of the money market or among particular instruments
within the same segment of the market, to make purchases and sales when the
Adviser deems that such transactions will improve the yield or return of the
portfolio.
COMMON INVESTMENT POLICIES AND RISK FACTORS
REPURCHASE AGREEMENTS

The Funds may enter into repurchase agreements with respect to securities
issued or guaranteed by the U.S. Government, with commercial banks having a
minimum capital base of $500 million and assets in excess of $1 billion or with
recognized government securities dealers with a minimum net capital base of $100
million. The Funds' Boards of Directors have established standards for
evaluation of the creditworthiness of the banks and securities dealers with
which the Funds will engage in repurchase agreements and monitors on a quarterly
basis the Adviser's and Sub-Adviser's compliance with such standards.

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.
It may also be viewed as the loan of money by a Fund to the seller. The resale
price normally is in excess of the purchase price, reflecting an agreed upon
market rate. The rate is effective for the period of time a Fund is invested in
the agreement and is not related to the coupon rate on the underlying security.
The period of these repurchase agreements will usually be short, from overnight
to one week, and at no time will a Fund invest in repurchase agreements for a
period of more than one year. The securities which are subject to repurchase
agreements, however, may have maturity dates in excess of one year from the
effective date of the repurchase agreement. A Fund will always receive as
collateral securities whose market value, including accrued interest, will be at
least equal to 100% of the dollar amount invested by a Fund
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HARTFORD MUTUAL FUNDS 23
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in each agreement, and a Fund will make payment for such securities only upon
physical delivery or evidence of book entry transfer. If the seller defaults, a
Fund might incur a loss if the value of the collateral securing the repurchase
agreement declines and may incur disposition costs in connection with
liquidating the collateral. A Fund may not enter into a repurchase agreement
with more than seven days to maturity if, as a result, more than 10% of the
Fund's total assets would be invested in such repurchase agreements together
with any other investment for which market quotations are not readily available.
ILLIQUID SECURITIES

Each Fund, except the Index Fund, is permitted to invest in illiquid
securities. No illiquid securities will be acquired if upon the purchase more
than 10% or 15% of the value of a Fund's total assets, varying by Fund (15% for
the Dividend and Growth Fund, International Advisers Fund and International
Opportunities Fund, 10% for the Advisers Fund, Capital Appreciation Fund, Bond
Fund, Mortgage Securities Fund, Stock Fund, U.S. Government Money Market Fund
and Money Market Fund ), would consist of these securities. "Illiquid
securities" are securities that may not be sold or disposed of in the ordinary
course of business within seven days at approximately the price used to
determine a Fund's net asset value.

Under current interpretations of the SEC Staff, the following securities in
which a Fund may invest will be considered illiquid: (1) repurchase agreements
maturing in more than seven days; (2) certain restricted securities (securities
whose public resale is subject to legal or contractual restrictions); (3)
options, with respect to specific securities, not traded on a national
securities exchange that are not readily marketable; and (4) any other
securities in which a Fund may invest that are not readily marketable.
These Funds may purchase without limit, however, certain restricted
securities that can be resold to qualifying institutions pursuant to a
regulatory exemption under Rule 144A under the 1933 Act ("Rule 144A
securities"). If a dealer or institutional trading market exists for Rule 144A
securities, such securities are deemed to be liquid and thus treated as exempt
from a Fund's 10% or 15% limitation on the investment in illiquid securities.
Under the supervision of the Board of Directors, the Adviser or Sub-Adviser
determines the liquidity of Rule 144A securities and, through reports from the
Adviser or Sub-Adviser, the Board of Directors monitors trading activity in
these securities. In reaching liquidity decisions, the Adviser or Sub-Adviser
will consider, among other things, the following factors: (1) the frequency of
trades and price quotes for the security; (2) the number of dealers willing to
purchase or sell the security and the number of other potential purchasers; (3)
dealer undertakings to make a market in the security; and (4) the nature of the
security and the marketplace trades (e.g., the time needed to dispose of the
security, the method of soliciting offers, and the procedures for transfer).
Because institutional trading in Rule 144A securities is relatively new, it is
difficult to predict accurately how these markets will develop. If institutional
trading in Rule 144A securities declines, a Fund's liquidity could be adversely
affected to the extent that a Fund is invested in such securities.
WHEN-ISSUED AND DELAYED-DELIVERY SECURITIES

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Stock Fund, the Index Fund, the Advisers
Fund, the International Advisers Fund, the Bond Fund and the Mortgage Securities
Fund may purchase or sell securities on a when-issued or delayed-delivery basis.
When-issued or delayed-delivery transactions arise when securities are purchased
or sold with payment and delivery taking place in the future in order to secure
what is considered to be an advantageous price and yield at the time of entering
into the transaction. While these Funds generally purchase securities on a when-
issued or delayed-delivery basis with the intention of acquiring the securities,
the Funds may sell the securities before the settlement date, if the Adviser or
Sub-Adviser deems it advisable. At the time a Fund makes the commitment to
purchase securities on a when-issued or delayed-delivery basis, the Fund will
record the transaction and thereafter reflect the value, each day, of such
security in determining the net asset value of the Fund. At the time of delivery
of the securities, the value may be more or less than the purchase price. The
Funds' custodian will maintain, in a segregated account of the Fund, cash, U.S.
Government securities or other liquid, high-grade debt obligations having a
value equal to or greater than the Fund's purchase commitments; the custodian
will likewise segregate securities sold on a delayed-delivery basis.

OTHER INVESTMENT COMPANIES

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Bond Fund, the Stock Fund, the Advisers
Fund, and the International Advisers Fund are permitted to invest in other
investment companies. Securities issued in certain countries are currently
accessible to the Funds only through such investments. The investment in other
investment companies is limited in amount by the 1940 Act, and will involve the
indirect payment of a portion of the expenses, including advisory fees, of such
other investment companies. No Fund may acquire more than 3% of the outstanding
voting securities of any other investment company, and no Fund may have more
than 5% of its total assets invested in any other investment company. See
"Investment Restrictions of the Funds" in the Statement of Additional
Information.
<PAGE>
24 HARTFORD MUTUAL FUNDS
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CURRENCY TRANSACTIONS

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Stock Fund, the Advisers Fund and the
International Advisers Fund may engage in currency transactions to hedge the
value of portfolio securities denominated in particular currencies against
fluctuations in relative value. Currency transactions include forward currency
contracts, exchange-listed and over-the-counter ("OTC") currency futures
contracts and options thereon, exchange listed and OTC options on currencies,
and currency swaps.

These Funds may invest in forward currency contracts, which involve a
privately negotiated obligation to purchase or sell a specific currency at a
future date, which may be any fixed number of days from the date of the contract
agreed upon by the parties, at a price set at the time of the contract. In
addition, these Funds may engage in currency swaps, which are agreements to
exchange cash flows based on the notional difference among two or more
currencies. See "Swap Agreements." These Funds also may engage in
exchange-listed and OTC currency futures contracts and options thereon, and
exchange listed and OTC options on currencies. See "Options and Futures
Contracts."

These Funds may cross-hedge currencies by entering into transactions to
purchase or sell one or more currencies that are expected to increase or decline
in value relative to other currencies to which the Funds have, or in which the
Funds expect to have, exposure. To reduce the effect of currency fluctuation on
the value of existing or anticipated holdings of their securities, these Funds
may also engage in proxy hedging. Proxy hedging is used when the currency to
which a portfolio holding is exposed is difficult to hedge generally or
difficult to hedge against the U.S. dollar. Proxy hedging entails entering into
a forward contract to buy U.S. dollars and to sell a currency, the changes in
the value of which generally are considered to be linked to the currency to
which the portfolio holding is exposed. The amount of the contract would not
exceed the market value of the Fund's securities denominated in the linked
currency.

The use of currency transactions to protect the value of a Fund's assets
against a decline in the value of a currency does not eliminate fluctuations in
the value of the Fund's underlying securities. Further, these Funds may enter
into currency transactions only with counterparties that the Sub-Adviser deems
to be creditworthy.
OPTIONS AND FUTURES CONTRACTS

In seeking to protect against the effect of changes in equity market values,
currency exchange rates or interest rates that are adverse to the present or
prospective position of the Funds, for cash flow management, and, to a lesser
extent, to enhance returns, the Capital Appreciation Fund, the Dividend and
Growth Fund, the Index Fund, the International Opportunities Fund, the Stock
Fund, the Advisers Fund, the International Advisers Fund, the Bond Fund and the
Mortgage Securities Fund may employ certain hedging, income enhancement and risk
management techniques, including the purchase and sale of options, futures and
options on futures involving equity and debt securities and foreign currencies,
aggregates of equity and debt securities, indices of prices of equity and debt
securities, and other financial indices. A Fund's ability to engage in these
practices may be limited by tax considerations and certain other legal
considerations.

These Funds may write covered call options or purchase covered put options
on portfolio securities as a partial hedge (to the extent of the premium
received less transaction costs) against a decline in the value of portfolio
securities and in circumstances in which the Adviser or the Sub-Adviser
anticipates that the price of the underlying securities will not increase above
the exercise price of the option by an amount greater than the premium received
(less transaction costs incurred) by the Fund. This strategy limits potential
capital appreciation in the portfolio securities subject to the put or call
option.

These Funds may also write covered put and call options and purchase put and
call options on foreign currencies to hedge against the risk of foreign exchange
fluctuations on foreign securities the particular Fund holds in its portfolio or
that it intends to purchase. For example, if a Fund enters into a contract to
purchase securities denominated in foreign currency, it could effectively
establish the maximum U.S. dollar cost of the securities by purchasing call
options on that foreign currency. Similarly, if a Fund held securities
denominated in a foreign currency and anticipated a decline in the value of that
currency against the U.S. dollar, the Fund could hedge against such a decline by
purchasing a put option on the foreign currency involved.

In addition, these Funds may purchase put and call options and write covered
put and call options on aggregates of equity and debt securities, indices of
prices of equity and debt securities and other financial indices, and may enter
into futures contracts and options thereon for the purchase or sale of
aggregates of equity and debt securities, indices of equity and debt securities
and other financial indices, all for the purpose of protecting against potential
changes in the market value of portfolio securities or in interest rates.
Aggregates are composites of equity or debt securities that are not tied to a
commonly known index. An index is a measure of the value of a group of
securities or other interests. An index assigns relative values to the
securities included in that index, and the index fluctuates with changes in the
market value of those securities.
<PAGE>
HARTFORD MUTUAL FUNDS 25
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These Funds may write covered options only. "Covered" means that, so long as
a Fund is obligated as the writer of a call option, it will own either the
underlying securities or currency or an option to purchase the same underlying
securities or currency having an expiration date not earlier than the expiration
date of the covered option and an exercise price equal to or less than the
exercise price of the covered option, or will establish or maintain with its
custodian for the term of the option a segregated account consisting of cash,
U.S. Government securities or other liquid, high grade debt obligations having a
value equal to the fluctuating market value of the optioned securities or
currencies. A Fund will cover any put option it writes by maintaining a
segregated account with its custodian as described above. A Fund will not write
covered call options on portfolio securities representing more than 25% of the
value of its total assets.

To hedge against fluctuations in currency exchange rates, these Funds may
purchase or sell foreign currency futures contracts, and write put and call
options and purchase put and call options on such futures contracts. For
example, a Fund may use foreign currency futures contracts when it anticipates a
general weakening of the foreign currency exchange rate that could adversely
affect the market values of the Fund's foreign securities holdings. In this
case, the sale of futures contracts on the underlying currency may reduce the
risk of the Fund of a reduction in market value caused by foreign currency
variations and, by so doing, provide an alternative to the liquidation of
securities positions in the Fund and resulting transaction costs. When the Fund
anticipates a significant foreign exchange rate increase while intending to
invest in a non-U.S. security, the Fund may purchase a foreign currency futures
contract to hedge against a rise in foreign exchange rates pending completion of
the anticipated transaction. Such a purchase of a futures contract would serve
as a temporary measure to protect the Fund against any rise in the foreign
exchange rate that may add additional costs to acquiring the non-U.S. security
position. The Fund similarly may use futures contracts on equity and debt
securities to hedge against fluctuations in the value of securities it owns or
expects to acquire.

These Funds also may purchase call or put options on foreign currency
futures contracts to obtain a fixed foreign exchange rate at limited risk. A
Fund may purchase a call option on a foreign currency futures contract to hedge
against a rise in the foreign exchange rate while intending to invest in a
non-U.S. security of the same currency. A Fund may purchase put options on
foreign currency futures contracts to hedge against a decline in the foreign
exchange rate or the value of its non-U.S. portfolio securities. A Fund may
write a call option on a foreign currency futures contract as a partial hedge
against the effects of declining foreign exchange rates on the value of non-U.S.
securities and in circumstances in which the Fund anticipates that the foreign
exchange rate will not increase above the exercise price of the option by an
amount greater than the premium received (less transaction costs incurred by the
Fund). This strategy will limit potential capital appreciation in the underlying
currency.

To the extent that a Fund enters into futures contracts, options on futures
contracts and options on foreign currencies that are traded on an exchange
regulated by the CFTC, in each case that are not for BONA FIDE hedging purposes
(as defined by the CFTC), the aggregate initial margin and premiums required to
establish those positions may not exceed 5% of the liquidation value of the
Fund's portfolio, after taking into account the unrealized profits and
unrealized losses on any such contracts the Fund has entered into. However, the
"in-the-money" amount of such options may be excluded in computing the 5% limit.
Adoption of this guideline will not limit the percentage of the Fund's assets at
risk to 5%.

Although any one Fund may not employ all or any of the foregoing strategies,
its use of options, futures and options thereon and forward currency contracts
(as described under "Currency Transactions") would involve certain investment
risks and transaction costs to which it might not be subject were such
strategies not employed. Such risks include: (1) dependence on a Fund's ability
to predict movements in the prices of individual securities, fluctuations in the
general securities markets or market sections and movements in interest rates
and currency markets; (2) imperfect correlation between movements in the price
of the securities or currencies hedged or used for cover; (3) the fact that
skills and techniques needed to trade options, futures contracts and options
thereon or to use forward currency contracts are different from those needed to
select the securities in which a Fund invests; (4) lack of assurance that a
liquid secondary market will exist for any particular option, futures contract,
option thereon or forward contract at any particular time, which may affect a
Fund's ability to establish or close out a position; (5) possible impediments to
effective portfolio management or the ability to meet current obligations caused
by the segregation of a large percentage of a Fund's assets to cover its
obligations; and (6) the possible need to defer closing out certain options,
futures contracts, options thereon and forward contracts in order to continue to
qualify for the beneficial tax treatment afforded "regulated investment
companies" under the Code. In the event that the anticipated change in the price
of the securities or currencies that are the subject of such a strategy does not
occur, it may be that a Fund would have been in a better position had it not
used such a strategy at all.
<PAGE>
26 HARTFORD MUTUAL FUNDS
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NON-U.S. SECURITIES,
INCLUDING ADRS AND GDRS

Each Fund, except the Mortgage Securities Fund and the U.S. Government Money
Market Fund, is permitted to invest a portion of its assets in non-U.S.
securities, including, in the case of permitted equity investments, ADRs and
GDRs, as described under each Fund's investment objective and policies. ADRs are
certificates issued by a U.S. bank or trust company and represent the right to
receive securities of a non-U.S. issuer deposited in a domestic bank or non-U.S.
branch of a U.S. bank. ADRs are traded on a U.S. securities exchange, or in an
over-the-counter market, and are denominated in U.S. dollars. GDRs are
certificates issued globally and evidence a similar ownership arrangement. GDRs
are traded on non-U.S. securities exchanges and are denominated in non-U.S.
currencies. The value of an ADR or a GDR will fluctuate with the value of the
underlying security, will reflect any changes in exchange rates and otherwise
will involve risks associated with investing in non-U.S. securities.

The International Opportunities Fund and the International Advisers Fund are
permitted to invest in Brady Bonds, which are debt securities issued under the
framework of the Brady Plan, an initiative announced by former U.S. Treasury
Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to
restructure their outstanding external commercial bank debt. In restructuring
its external debt under the Brady Plan framework, a debtor nation negotiates
with its existing bank lenders as well as multilateral institutions such as the
World Bank and the IMF. The Brady Plan framework, as it has developed,
contemplates the exchange of commercial bank debt for newly issued bonds ("Brady
Bonds"). Brady Bonds may also be issued in respect of new money being advanced
by existing lenders in connection with debt restructuring. Agreements
implemented under the Brady Plan to date are designed to achieve debt and
debt-service reduction through specific options negotiated by a debtor nation
with its creditors. As a result, the financial packages offered by each country
differ. Brady Bonds issued to date may be purchased and sold in the secondary
markets through U.S. securities dealers and other financial institutions and are
generally maintained through European securities depositories. See also "High
Yield Securities."

Investing in securities issued by non-U.S. companies involves considerations
and potential risks not typically associated with investing in obligations
issued by U.S. companies. Less information may be available about non-U.S.
companies than about U.S. companies and non-U.S. companies generally are not
subject to uniform accounting, auditing and financial reporting standards or to
other regulatory practices and requirements comparable to those applicable to
U.S. companies. The values of non-U.S. investments are affected by changes in
currency rates or exchange control regulations, restrictions or prohibition on
the repatriation of non-U.S. currencies, application of non-U.S. tax laws,
including withholding taxes, changes in governmental administration or economic
or monetary policy (in the U.S. or outside the U.S.) or changed circumstances in
dealings between nations. Costs are also incurred in connection with conversions
between various currencies.

Investing in non-U.S. sovereign debt will expose a Fund to the direct or
indirect consequences of political, social or economic changes in the developing
and emerging countries that issue the securities. The ability and willingness of
sovereign obligors in developing and emerging countries or the governmental
authorities that control repayment of their external debt to pay principal and
interest on such debt when due may depend on general economic and political
conditions within the relevant country. Countries such as those in which the
Funds may invest have historically experienced, and may continue to experience,
high rates of inflation, high interest rates, exchange rate trade difficulties
and unemployment. Some of these countries are also characterized by political
uncertainty or instability. Additional factors which may influence the ability
or willingness to service debt include, but are not limited to, a country's cash
flow situation, the availability of sufficient foreign exchange on the date a
payment is due, the relative size of its debt service burden to the economy as a
whole, and its government's policy towards the IMF, the World Bank and other
international agencies.
MORTGAGE-RELATED SECURITIES

The mortgage-related securities in which the International Opportunities
Fund, International Advisers Fund, Advisers Fund and Bond Fund may invest, and
the Mortgage Securities Fund principally invests, provide funds for mortgage
loans made to residential home buyers. These include securities which represent
interests in pools of mortgage loans made by lenders such as savings and loan
institutions, mortgage bankers, commercial banks and others. Pools of mortgage
loans are assembled for sale to investors (such as the Funds) by various
governmental, government-related and private organizations. These Funds may also
invest in similar mortgage-related securities which provide funds for
multi-family residences or commercial real estate properties. CMOs will also be
considered mortgage-related securities.

Interests in pools of mortgage-related securities differ from other forms of
debt securities, which normally provide for periodic payment of interest in
fixed amounts with principal payments at maturity or specified call dates.
Instead, these securities provide a monthly payment which consists of both
interest and principal payments. In effect, these payments are a "pass-through"
of the monthly payments made by the individual borrowers on their mortgage
loans,
<PAGE>
HARTFORD MUTUAL FUNDS 27
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net of any fees paid to the issuer, servicer, insurer or guarantor of such
securities. Additional payments are caused by repayments of principal resulting
from the sale of the underlying property, refinancing or foreclosure, net of
fees or costs which may be incurred. Some mortgage-related securities (such as
GNMA securities) are described as "modified pass-through." These securities
entitle the holder to receive all interest and principal payments owed on the
mortgage pool, net of certain fees, regardless of whether or not the mortgagor
actually makes the payment.

The principal governmental (i.e., backed by the full faith and credit of the
U.S. Government) guarantor of mortgage-related securities is the GNMA. GNMA is a
wholly-owned United States Government corporation within the Department of
Housing and Urban Development. GNMA is authorized to guarantee, with the full
faith and credit of the U.S. Government, the timely payment of principal and
interest on securities known as Ginnie Maes issued by institutions approved by
GNMA (such as savings and loan institutions, commercial banks and mortgage
bankers) and backed by pools of FHA-insured or VA-guaranteed mortgages.

Government-related (i.e., not backed by the full faith and credit of the
U.S. Government) guarantors include the FNMA and the FHLMC. FNMA is a
government-sponsored corporation owned entirely by private stockholders. It is
subject to general regulation by the Secretary of Housing and Urban Development.
FNMA purchases residential mortgages from a list of approved seller/servicers
which include state and federally-chartered savings and loan associations,
mutual savings banks, commercial banks and credit unions and mortgage bankers.
Pass-through securities known as Fannie Maes issued by FNMA are guaranteed as to
timely payment of principal and interest by FNMA but are not backed by the full
faith and credit of the U.S. Government. FHLMC is a corporate instrumentality of
the U.S. Government created by Congress in 1970 for the purpose of increasing
the availability of mortgage credit for residential housing. Its stock is owned
by the twelve Federal Home Loan Banks. FHLMC issues Participation Certificates
("PCs") known as Freddy Macs which represent interests in mortgages from
portfolios created by FHLMC. FHLMC guarantees the timely payment of interest and
ultimate collection of principal but PCs are not backed by the full faith and
credit of the United States Government.

Commercial banks, savings and loan institutions, private mortgage insurance
companies, investment banks, mortgage bankers and other secondary market issuers
also create pass-through pools of conventional residential mortgage loans. Such
issuers may in addition be the originators of the underlying mortgage loans as
well as the guarantors of the mortgage-related securities. Pools created by such
non-governmental issuers generally offer a higher rate of interest than
government and government-related pools because there are no direct or indirect
government guarantees of payments in the former pools. However, timely payment
of interest and principal in these pools is supported by various forms of
insurance or guarantees, including individual loan, title, pool and hazard
insurance. The insurance and guarantees are issued by government entities,
private insurers and the mortgage poolers. Such insurance and guarantees and the
credit worthiness of the issuers thereof will be considered in determining
whether a mortgage-related security meets a Fund's investment quality standards.
There can be no assurance that the private insurers can meet their obligations
under the policies. These Funds may buy mortgage-related securities without
insurance or guarantees if through an examination of the loan experience and
practices of the poolers the Adviser or Sub-Adviser determines that the
securities meet the Fund's quality standards. Although the market for such
securities is becoming increasingly liquid, securities issued by certain private
organizations may not be readily marketable.

These Funds may invest in CMOs, which are securities collateralized by
mortgages or mortgage-backed securities. CMOs are issued with a variety of
classes or series, which have different maturities.

These Funds expect that governmental, government-related or private entities
may create mortgage loan pools offering pass-through investments in addition to
those described above. The mortgages underlying these securities may be
alternative mortgage instruments, that is, mortgage instruments whose principal
or interest payments may vary or whose terms to maturity may differ from
customary long-term fixed rate mortgages. These Funds may invest in stripped
mortgage-backed securities, which security is separated into the interest and
principal component of a mortgage backed security and are sold as separate
securities. As new types of mortgage-related securities are developed and
offered to investors, the Adviser or Sub-Adviser will, consistent with a Fund's
investment objective, policies and quality standards, consider making
investments in such new types of securities.
ASSET-BACKED SECURITIES

The International Opportunities Fund, the International Advisers Fund, the
Advisers Fund, the Bond Fund, the Mortgage Securities Fund, and the Money Market
Fund may invest in asset-backed securities. The securitization techniques used
for asset-backed securities are similar to those used for mortgage-related
securities. The collateral for these securities has included home equity loans,
automobile and credit card receivables, boat loans, computer leases, airplane
leases, mobile home loans, recreational vehicle loans and hospital account
receivables. These Funds may invest in these and other types of asset-backed
securities that may be developed in the future.
<PAGE>
28 HARTFORD MUTUAL FUNDS
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SWAP AGREEMENTS

Each Fund, except the Index Fund, the U.S. Government Money Market Fund and
the Money Market Fund, may enter into interest rate swaps, currency swaps, and
other types of swap agreements such as caps, collars, and floors. In a typical
interest rate swap, one party agrees to make regular payments equal to a
floating interest rate multiplied by a "notional principal amount," in return
for payments equal to a fixed rate multiplied by the same amount, for a
specified period of time. If a swap agreement provides for payments in different
currencies, the parties might agree to exchange the notional principal amount as
well. Swaps may also depend on other prices or rates, such as the value of an
index or mortgage prepayment rates.

In a typical cap or floor agreement, one party agrees to make payments only
under specified circumstances, usually in return for payment of a fee by the
other party. For example, the buyer of an interest rate cap obtains the right to
receive payments to the extent that a specified interest rate exceeds an
agreed-upon level, while the seller of an interest rate floor is obligated to
make payments to the extent that a specified interest rate falls below an
agreed-upon level. An interest rate collar combines elements of buying a cap and
selling a floor.

Swap agreements will tend to shift a Fund's investment exposure from one
type of investment to another. For example, if a Fund agreed to exchange
floating rate payments for fixed rate payments, the swap agreement would tend to
decrease the Fund's exposure to rising interest rates. Caps and floors have an
effect similar to buying or writing options. Depending on how they are used,
swap agreements may increase or decrease the overall volatility of a Fund's
investments and its share price and yield.
MONEY MARKET INSTRUMENTS

The Funds may invest in high quality money market instruments, including,
but not limited to: (1) securities issued or guaranteed by governments, their
agencies or instrumentalities; (2) commercial paper; (3) certificates of
deposit; (4) bankers' acceptances and other bank obligations; and (5) repurchase
agreements involving any of the foregoing. The U.S. Government Money Market Fund
may only invest in high quality money market instruments, issued or guaranteed
by the U.S. Government, its agencies or instrumentalities.
INVESTMENT GRADE SECURITIES

The U.S. Government Money Market Fund and the Money Market Fund are
permitted to invest only in high-quality short-term instruments as defined by
Rule 2a-7 under the 1940 Act. Each of the other Funds is permitted to invest in
investment grade securities (i.e., rated as low as "Baa" by Moody's and as low
as "BBB" by S&P, and unrated securities of comparable quality as determined by
the Adviser or Sub-Adviser). Debt securities carrying the fourth highest rating
(i.e., "Baa" by Moody's and "BBB" by S&P, and unrated securities of comparable
quality as determined by the Adviser or Sub-Adviser) are viewed to have adequate
capacity for payment of principal and interest, but do involve a higher degree
of risk than that associated with investments in debt securities in the higher
rating categories and such bonds lack outstanding investment characteristics and
do have speculative characteristics.
HIGH YIELD SECURITIES

To the extent described in their investment policies, the Capital
Appreciation Fund, the International Opportunities Fund and the International
Advisers Fund are permitted to invest in high yield securities, commonly known
as "junk bonds" (i.e., rated as low as "C" by Moody's and by S&P, and unrated
securities of comparable quality as determined by the Sub-Adviser). Securities
in the rating categories below Baa as determined by Moody's and BBB as
determined by S&P are considered to be of poor standing and predominantly
speculative. The rating services' descriptions of securities in the lower rating
categories, including their speculative characteristics, are set forth in the
Appendix to this Prospectus. These securities are considered to have extremely
poor prospects of ever attaining any real investment standing, to have a current
identifiable vulnerability to default, to be unlikely to have the capacity to
pay interest and repay principal when due in the event of adverse business,
financial or economic conditions, and/or to be in default or not current in the
payment of interest or principal. These securities are considered speculative
with respect to the issuer's capacity to pay interest and repay principal in
accordance with the terms of the obligations. Accordingly, it is possible that
these types of factors could, in certain instances, reduce the value of
securities held by a Fund with a commensurate effect on the value of the Fund's
shares.
OTHER RISK FACTORS

As mutual funds that primarily invest in equity and/or debt securities, each
Fund is subject to market risk, i.e., the possibility that equity and/or debt
prices in general will decline over short or even extended periods of time. The
financial markets tend to be cyclical, with periods when security prices
generally rise and periods when security prices generally decline.

The value of the debt securities in which the Funds invest will tend to
increase when interest rates are falling and to decrease when interest rates are
rising.

No Fund should be considered to be a complete investment program in and of
itself. Each prospective purchaser
<PAGE>
HARTFORD MUTUAL FUNDS 29
- --------------------------------------------------------------------------------

should take into account his or her own investment objectives as well as his or
her other investments when considering the purchase of shares of any investment
company.

There can be no assurance that the investment objectives of the Funds will
be met. In addition, the risk inherent in investing in the Funds is common to
any security -- the net asset value will fluctuate in response to changes in
economic conditions, interest rates and the market's perception of the
underlying portfolio securities of each Fund.

HIMCO, as Adviser to certain Funds, and WMC, as Sub-Adviser to certain
Funds, attempt, in pursuit of a Fund's investment objective, to select
appropriate individual securities for inclusion in a Fund's portfolio. In
addition, HIMCO and WMC attempt to successfully forecast market trends and
increase investments in the types of securities best suited to take advantage of
such trends. Thus, the investor is dependent on HIMCO's and WMC's success not
only in selecting individual securities, but also in identifying attractive
asset classes to determine the total mix of invested assets.
MANAGEMENT OF THE FUNDS

Each Fund's Board of Directors manages the business and affairs of that Fund
and takes action on all matters not reserved for the shareholders, including the
annual election of officers of the Fund who carry out all orders and resolutions
of the Board of Directors and carry out functions relating to the day to day
management of the affairs of the Fund.
INVESTMENT ADVISORY AND MANAGEMENT SERVICES

HIMCO serves as investment adviser or manager to each Fund pursuant to
written agreements entered into between HIMCO and each Fund. HIMCO serves as
investment adviser to the Bond Fund, Money Market Fund, U.S. Government Money
Market Fund, Mortgage Securities Fund and the Index Fund and investment manager
to the Capital Appreciation Fund, Dividend and Growth Fund, International
Opportunities Fund, Stock Fund, Advisers Fund and International Advisers Fund.

For 1995, the advisory and management fees for the Funds were as follows:
Advisers Fund, $16,044,763; Capital Appreciation Fund, $7,715,873; Bond Fund,
$906,000; Dividend and Growth Fund, $757,373; Index Fund, $447,326;
International Opportunities Fund, $3,213,660; International Advisers Fund $0;
Money Market Fund, $762,534; Mortgage Securities Fund, $790,058; Stock Fund,
$4,134,925; and U.S. Government Money Market Fund, $24,282.

Under the terms of the Investment Advisory Agreements, HIMCO has
responsibility for the investment decisions with respect to the assets of the
Bond Fund, the Money Market Fund, the U.S. Government Money Market Fund, the
Mortgage Securities Fund and the Index Fund. HIMCO continuously provides the
Funds' Board of Directors with an investment program for its consideration and,
upon approval of the program by the Board, HIMCO implements the same by placing
orders for the purchase or sale of securities.

The investment advisory fee for the Money Market Fund, the U.S. Government
Money Market Fund and the Mortgage Securities Fund is .25% annually of the value
of the average daily net assets of each Fund. The investment advisory fee for
the Index Fund is .20% annually of the value of the average daily net assets of
the Fund. The investment advisory fee for the Bond Fund is:

.325% annually of the value of the average daily net assets of the Fund up
to $250,000,000;

.30% annually of the value of the next $250,000,000 of the average daily net
assets of the Fund;

.275% annually of the value of the next $500,000,000 of the average daily
net assets of the Fund;

.25% annually of the value of the average daily net assets of the Fund in
excess of $1,000,000,000.

Under the terms of the Investment Management Agreements, HIMCO, subject to
the supervision of the Funds' Board of Directors, provides investment management
supervision to the Stock Fund, the Advisers Fund, the Capital Appreciation Fund,
the International Opportunities Fund, the Dividend and Growth Fund and the
International Advisers Fund in accordance with the Funds' investment objectives,
policies and restrictions. HIMCO's responsibilities include: (1) Engaging,
subject to consultation with the Funds' Board of Directors, the services of one
or more firms to serve as investment sub-adviser to the Funds; (2) Reviewing
from time to time the investment policies and restrictions of the Funds in light
of the Funds' performance and otherwise and, after consultation with the
investment sub-adviser, recommending any appropriate changes to the Funds' Board
of Directors; (3) Supervising the investment program prepared for the Funds by
the investment sub-adviser; (4) Monitoring on a continuing basis the performance
of the Funds' portfolio securities; (5) Arranging for the provision of such
economic and statistical data as HIMCO shall determine or as may be requested by
the Funds' Board of Directors; (6) Providing the Funds' Board of Directors with
such information concerning important economic and political developments as
HIMCO shall deem
<PAGE>
30 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

appropriate or as shall be requested by the Funds' Board of Directors.

For services rendered to the Funds, HIMCO charges a monthly fee based on the
following annual rates as applied to the average of the calculated daily net
asset value of the Funds.

Advisers Fund, Capital Appreciation Fund, Dividend and Growth Fund,
International Advisers Fund and International Opportunities Fund:

.575% annually of the value of the average daily net assets of the Fund up
to $250,000,000;

.525% annually of the next $250,000,000 of the value of the average daily
net assets of the Fund;

.475% annually of the next $500,000,000 of the value of the average daily
net assets of the Fund;

.425% annually of the value of the average daily net assets of the Fund in
excess of $1,000,000,000.

Stock Fund:

.325% annually of the value of the average daily net assets of the Fund up
to $250,000,000;

.300% annually of the value of the next $250,000,000 of the average daily
net assets of the Fund;

.275% annually of the next $500,000,000 of the value of the average daily
net assets of the Fund;

.250% annually of the value of the average daily net assets of the Fund in
excess of $1,000,000,000.

HIMCO, Hartford Plaza, Hartford, Connecticut 06115, is a wholly-owned
subsidiary of Hartford Life Insurance Company ("HL") and was organized under the
laws of the State of Connecticut in 1981. HIMCO also serves as investment
adviser to several other HL-sponsored funds which are also registered with the
SEC. HL is ultimately owned by Hartford Fire Insurance Company, one of the
largest multiple lines insurance carriers in the United States. Hartford Fire
Insurance Company is a subsidiary of ITT Hartford Group, Inc.

Certain officers of the Funds are also officers and/or directors of HIMCO;
Joseph H. Gareau is a Director and the President of HIMCO; Andrew W. Kohnke is a
Managing Director and a Director of HIMCO; J. Richard Garrett is the Treasurer
of HIMCO; and Charles M. O'Halloran is a Director, Secretary and General Counsel
of HIMCO.

INVESTMENT SUB-ADVISORY SERVICES

WMC serves as sub-adviser to the Capital Appreciation Fund, Dividend and
Growth Fund, International Opportunities Fund, Stock Fund, Advisers Fund and
International Advisers Fund pursuant to written contracts entered into between
HIMCO and WMC.

In connection with its service as sub-adviser to these Funds, WMC makes all
determinations with respect to the purchase and sale of portfolio securities
(subject to the terms and conditions of the investment objectives, policies and
restrictions of these Funds and to the general supervision of the Company's
Board of Directors and HIMCO) and places, in the name of the Funds, all orders
for execution of these Funds' portfolio transactions. In conjunction with such
activities, WMC regularly furnishes reports to the Company's Board of Directors
concerning economic forecasts, investment strategy, portfolio activity and
performance of the Funds.

Under the terms of the Investment Sub-Advisory Agreements, WMC provides an
investment program to HIMCO for use by HIMCO in rendering services to these
Funds. WMC makes all determinations with respect to the purchase and sale of
portfolio securities (subject to the terms and conditions of the investment
objectives, policies and restrictions of these Funds and to the supervision of
the Funds' Board of Directors and HIMCO) and places, in the name of the Funds,
all orders for execution of these Funds' portfolio transactions. In conjunction
with such activities, WMC regularly furnishes reports to these Funds' Board of
Directors concerning economic forecasts, investment strategy, portfolio activity
and performance of the Funds.

For services rendered to these Funds, WMC charges a quarterly fee to HIMCO.
The Funds will not pay WMC's fee nor any part thereof, nor will the Funds have
any obligation or responsibility to do so. WMC's quarterly fee is based upon the
following annual rates as applied to the average of the calculated daily net
asset value of each Fund.

Advisers Fund, Stock Fund and Dividend and Growth Fund:

.325% annually of the value of the average daily net assets of the Fund up
to $50,000,000;

.25% annually of the next $100,000,000 of the value of the average daily net
assets of the Fund;

.20% annually of the next $350,000,000 of the value of the average daily net
assets of the Fund;

.15% annually of the value of the average daily net assets of the Fund in
excess of $500,000,000.

Capital Appreciation Fund, International Opportunities Fund, and International
Advisers Fund:

.40% annually of the value of the average daily net assets of the Fund up to
$50,000,000;

.30% annually of the next $100,000,000 of the value of the average daily net
assets of the Fund;

<PAGE>
HARTFORD MUTUAL FUNDS 31
- --------------------------------------------------------------------------------

.25% annually of the next $350,000,000 of the value of the average daily net
assets of the Fund;

.20% annually of the value of the average daily net assets of the Fund in
excess of $500,000,000.

WMC is a professional investment counseling firm which provides investment
services to investment companies, employee benefit plans, endowments,
foundations, and other institutions and individuals. As of December 31, 1995,
WMC held discretionary management authority with respect to approximately $109
billion of client assets. WMC and its predecessor organizations have provided
investment advisory services to investment companies since 1933 and to
investment counseling clients since 1960. WMC, 75 State Street, Boston, MA
02109, is a Massachusetts general partnership, of which the following persons
are managing partners: Robert W. Doran, Duncan M. McFarland, and John R. Ryan.

PORTFOLIO MANAGERS

Saul J. Pannell, Senior Vice President of WMC, serves as portfolio manager
to the Capital Appreciation Fund. Mr. Pannell has been a portfolio manager with
WMC since 1979.

Laurie A. Gabriel, CFA and Senior Vice President of WMC, serves as portfolio
manager to the Dividend and Growth Fund. Ms. Gabriel joined WMC in 1976. She has
been a quantitative research analyst with WMC since 1986, and took on portfolio
management responsibilities in 1987.

The International Opportunities Fund is managed by WMC's Global Equity
Strategy Group, headed by Trond Skramstad, Senior Vice President of WMC. The
Global Equity Strategy Group is comprised of global portfolio managers and
senior investment professionals. No person or persons is primarily responsible
for making recommendations to or within the Global Equity Strategy Group. Prior
to joining WMC in 1993, Mr. Skramstad was a global equity portfolio manager at
Scudder, Stevens & Clark since 1990.

Rand L. Alexander, Senior Vice President of WMC, serves as portfolio manager
to the Stock Fund. Mr. Alexander has been a portfolio manager with WMC since
1990.
Paul D. Kaplan, Senior Vice President of WMC, serves as portfolio manager to
the Advisers Fund. Mr. Kaplan manages the fixed income component of the Advisers
Fund. He has been a portfolio manager with WMC since 1982. Rand L. Alexander,
who is portfolio manager to the Stock Fund, manages the equity component of the
Advisers Fund.

The equity component of the International Advisers Fund is managed by WMC's
Global Equity Strategy Group, headed by Trond Skramstad. The debt component of
the International Advisers Fund is managed by Robert Evans, Vice President of
WMC. Prior to joining WMC as a portfolio manager in 1995, Mr. Evans was a Senior
Global Fixed Income Portfolio Manager with Pacific Investment Management Company
from 1991 through 1994, and in the Global Fixed Income Department of Lehman
Brothers International in London, England and New York City, New York from 1985
through 1990.

The Bond Fund is managed by Alison D. Granger. Ms. Granger, a Senior Vice
President of HIMCO and Assistant Vice President of Hartford Life Insurance
Company, joined ITT Hartford in 1993 as a senior corporate bond trader. She
became Director of Trading in 1994 and a portfolio manager in 1995. Prior to
joining ITT Hartford, Ms. Granger was a corporate bond portfolio manager at The
Home Insurance Company and Axe-Houghton Management.

The Mortgage Securities Fund is managed by Timothy J. Wilhide. Mr. Wilhide
is a Portfolio Manager and Vice President of HIMCO. He has 17 years of
experience in the fixed income markets. Prior to joining ITT Hartford in June
1994, Mr. Wilhide was vice president and fixed income manager for J.P. Morgan &
Co. He received his B.A. from Gannon University and his MBA from the University
of Delaware.

ADMINISTRATIVE SERVICES
FOR THE FUNDS

An Administrative Services Agreement between each Fund and HL provides that
HL will manage the business affairs and provide administrative services to each
Fund. Under the terms of these Agreements, HL will provide the following:
administrative personnel, services, equipment and facilities and office space
for proper operation of the Funds. HL has also agreed to arrange for the
provision of additional services necessary for the proper operation of the
Funds, although the Funds pay for these services directly. See "Expenses of the
Funds." As compensation for the services to be performed by HL, each Fund pays
to HL, as promptly as possible after the last day of each month, a monthly fee
equal to the annual rate of .175% of the average daily net assets of the Fund.
EXPENSES OF THE FUNDS

Each Fund shall assume and pay the following costs and expenses: interest;
taxes; brokerage charges (which may be to affiliated broker-dealers); costs of
preparing, printing and filing any amendments or supplements to the registration
forms of each Fund and its securities; all federal and
<PAGE>
32 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

state registration, qualification and filing costs and fees, (except the initial
costs and fees, which will be borne by HL), issuance and redemption expenses,
transfer agency and dividend and distribution disbursing agency costs and
expenses; custodian fees and expenses; accounting, auditing and legal expenses;
fidelity bond and other insurance premiums; fees and salaries of directors,
officers and employees of each Fund other than those who are also officers of
HL; industry membership dues; all annual and semiannual reports and prospectuses
mailed to each Fund's shareholders as well as all quarterly, annual and any
other periodic report required to be filed with the SEC or with any state; any
notices required by a federal or state regulatory authority, and any proxy
solicitation materials directed to each Fund's shareholders as well as all
printing, mailing and tabulation costs incurred in connection therewith, and any
expenses incurred in connection with the holding of meetings of each Fund's
shareholders and other miscellaneous expenses related directly to the Funds'
operations and interest.

The total expenses of each Fund including administrative and investment
advisory fees for 1995 as a percentage of the Funds' average net assets were as
follows: Stock Fund, .48%; Bond Fund, .53%; Money Market Fund, .45%; U.S.
Government Money Market Fund, .57%; Advisers Fund, .66%; Capital Appreciation
Fund, .68%; Mortgage Securities Fund, .68%; Index Fund .39%; International
Opportunities Fund, .86%; Dividend and Growth Fund, .77%; International Advisers
Fund, .65%.

PERFORMANCE RELATED INFORMATION

The Funds may advertise certain performance related information. Performance
information about a Fund is based on the Fund's past performance only and is no
indication of future performance.

Each Fund may include its total return in advertisements or other sales
material. When a Fund advertises its total return, it will usually be calculated
for one year, five years, and ten years or some other relevant periods if the
Fund has not been in existence for at least ten years. Total return is measured
by comparing the value of an investment in the Fund at the beginning of the
relevant period to the value of the investment at the end of the period
(assuming immediate reinvestment of any dividends or capital gains
distributions).

The U.S. Government Money Market Fund and the Money Market Fund may
advertise yield and effective yield. The yield of each of those Funds is based
upon the income earned by the Fund over a seven-day period and then annualized,
i.e. the income earned in the period is assumed to be earned every seven days
over a 52-week period and stated as a percentage of the investment. Effective
yield is calculated similarly but when annualized, the income earned by the
investment is assumed to be reinvested in Fund shares and thus compounded in the
course of a 52-week period.
DIVIDENDS

The shareholders of each Fund shall be entitled to receive such dividends as
may be declared by each Fund's Board of Directors, from time to time based upon
the investment performance of the assets making up that Fund's portfolio. The
policy with respect to each Fund, except the U.S. Government Money Market Fund
and the Money Market Fund, is to pay dividends from net investment income
monthly and to make distributions of realized capital gains, if any, once each
year. The U.S. Government Money Market Fund and the Money Market Fund declare
dividends on a daily basis and pay them monthly.

Such dividends and distributions will be automatically invested in
additional full or fractional shares monthly on the last business day of each
month at the per share net asset value on that date. Provision is also made to
pay such dividends and distributions in cash if requested. Such dividends and
distributions will be in cash or in full or fractional shares of the Fund at net
asset value.
NET ASSET VALUE

The net asset value of each Fund's shares will be determined as of the close
of business (currently 4:00 P.M. Eastern Time) on each day the NYSE is open for
trading. Orders for the purchase of a Fund's shares received prior to the close
of the NYSE on any day on which the Fund is open for business will be priced at
the per-share net asset value determined as of the close of the NYSE. Orders
received after the close of the NYSE or on a day on which the NYSE or a Fund are
not open for business will be priced at the per-share net asset value next
determined. The per-share net asset value of the shares each Fund will be
determined by dividing the value of the Fund's assets, less the liabilities, by
the number of outstanding shares issued by the Fund.

Equity securities are valued at the last sales price as of the time when the
valuation is being made. If no sales took place on such day and in the case of
certain equity securities traded over-the-counter, then such securities are
valued at the mean between the bid and the asked prices. Debt securities (other
than short-term obligations) including mortgage-backed securities, 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. Short-term investments with a
<PAGE>
HARTFORD MUTUAL FUNDS 33
- --------------------------------------------------------------------------------

maturity of 60 days or less when purchased are valued at cost plus interest
earned (amortized cost), which approximates market value. Short-term investments
with a maturity of more than 60 days when purchased are valued based on market
quotations until the remaining days to maturity become less than 61 days. From
such time, until maturity, the investments are valued at amortized cost using
the value of the investment on the 61st 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.

Assets for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of a Fund's
Board of Directors.
PURCHASE OF FUND SHARES

Fund shares are made available to serve as the underlying investment
vehicles for variable annuity and variable life insurance separate accounts of
ITT Hartford Life Insurance Companies. Shares of the Funds are sold on a no-load
basis at their net asset values. See "Net Asset Value" and "Sale and Redemption
of Shares."

It is conceivable that in the future it may be disadvantageous for variable
annuity separate accounts and variable life insurance separate accounts to
invest in the Funds simultaneously. Although ITT Hartford Life Insurance
Companies and the Funds do not currently foresee any such disadvantages either
to variable annuity contract owners or variable life insurance policy owners,
each Fund's Board of Directors intends to monitor events in order to identify
any material conflicts between such contract owners and policy owners and to
determine what action, if any, should be taken in response thereto. If the Board
of Directors of a Fund were to conclude that separate funds should be
established for variable life and variable annuity separate accounts, the
variable life and variable annuity contract holders would not bear any expenses
attendant to the establishment of such separate funds.
SALE AND REDEMPTION
OF SHARES
The shares of each Fund are sold and redeemed by the Fund at their net asset
value next determined after receipt of a purchase or redemption order in good
order in writing at its home office, P.O. Box 2999, Hartford, CT 06104-2999.
Hartford Equity Sales Company, Inc., Hartford, Connecticut, is the Fund's
principal underwriter. The value of shares redeemed may be more or less than
original cost, depending upon the market value of the portfolio securities at
the time of redemption. Payment for shares redeemed will be made within seven
days after the redemption request is received in proper form by the Funds.
However, the right to redeem Fund shares may be suspended or payment therefor
postponed for any period during which: (1) trading on the NYSE is closed for
other than weekends and holidays; (2) an emergency exists, as determined by the
SEC, as a result of which (a) disposal by a Fund of securities owned by it is
not reasonably practicable, or (b) it is not reasonably practicable for a Fund
to determine fairly the value of its net assets; or (3) the SEC by order so
permits for the protection of stockholders of the Funds.
FEDERAL INCOME TAXES

Each Fund has elected and intends to qualify under Part I of Subchapter M of
the Code. Each Fund intends to distribute all of its net income and gains to
shareholders. Such distributions are taxable income and capital gains. Each Fund
will inform shareholders of the amount and nature of such income and gains. Each
Fund may be subject to a 4% nondeductible excise tax as well as an income tax
measured with respect to certain undistributed amounts of income and capital
gain. Each Fund expects to make such additional distributions of net investment
income as are necessary to avoid the application of these taxes. For a
discussion of the tax implications of a purchase or sale of the Funds' shares by
the insurer, reference should be made to the section entitled "Federal Tax
Considerations" in the appropriate separate account prospectus.

If eligible, each Fund may make an election to pass through to its
shareholders, ITT Hartford Life Insurance Companies, a credit for any foreign
taxes paid during the year. If such election is made, the pass-through of the
foreign tax credit will result in additional taxable income and income tax to
ITT Hartford Life Insurance Companies. The amount of additional tax may be more
than offset by the foreign tax credits which are passed through. These foreign
tax credits may provide a benefit to ITT Hartford Life Insurance Companies.
OWNERSHIP AND CAPITALIZATION OF THE FUNDS
CAPITAL STOCK

As of the date of this prospectus, the authorized capital stock of the Funds
consisted of the following shares of a par value of $.10 per share: Advisers
Fund, 3 billion; Capital Appreciation Fund, 800 million; Bond Fund, 800 million;
Dividend and Growth Fund, 750 million; Index Fund, 400 million; International
Opportunities Fund,
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34 HARTFORD MUTUAL FUNDS
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1500 million; Money Market Fund, 800 million; Mortgage Securities Fund, 800
million; Stock Fund, 800 million; U.S. Government Money Market Fund, 100
million; International Advisers Fund, 750 million.

As of December 31, 1995, Hartford Life Insurance Company owned 10,000,000
shares (35.5%) of the International Advisers Fund.

At December 31, 1995, certain HL group pension contracts held direct
interests in shares of the Funds as follows:

<TABLE>
<CAPTION>
SHARES %
------------ ---------
<S> <C> <C>
Hartford Advisers Fund, Inc................ 11,995,216 .55
Hartford Capital Appreciation Fund, Inc.... 9,760,293 1.58
Hartford Index Fund, Inc................... 12,029,208 7.67
Hartford International Opportunities Fund,
Inc....................................... 5,692,699 1.07
Hartford Mortgage Securities Fund, Inc..... 15,512,929 5.07
Hartford Stock Fund, Inc................... 70,084 .01
</TABLE>

VOTING

Each shareholder shall be entitled to one vote for each share of the Funds
held upon all matters submitted to the shareholders generally. With respect to
the Funds' shares, issued as described above under "Purchase of Fund Shares," as
well as Fund shares which are not otherwise attributable to variable annuity
contract owners or variable life policyholders, the ITT Hartford Life Insurance
Companies shall be the shareholders of record. Each of the ITT Hartford Life
Insurance Companies will vote all Fund shares, pro rata, according to the
written instructions of the contract owners of the variable annuity contracts
and the policyholders of the variable life contracts issued by it using the
Funds as investment vehicles. This position is consistent with the policy of the
SEC Staff.
OTHER RIGHTS

Each share of Fund stock, when issued and paid for in accordance with the
terms of the offering, will be fully paid and non-assessable. Shares of Fund
stock have no pre-emptive, subscription or conversion rights and are redeemable
as set forth under "Sale and Redemption of Shares." There are no shareholder
pre-emptive rights. Upon liquidation of a Fund, the shareholders of that Fund
shall be entitled to share, pro rata, in any assets of the Fund after discharge
of all liabilities and payment of the expenses of liquidation.
GENERAL INFORMATION
REPORTS TO SHAREHOLDERS

The Funds will issue unaudited semiannual reports showing current
investments in each Fund and other information and annual financial statements
examined by independent auditors for the Funds.
CUSTODIAN, TRANSFER AND
DIVIDEND DISBURSING AGENTS

Chase Manhattan Bank, N.A., New York, New York, serves as custodian of the
Funds' assets. Hartford Life Insurance Company, P.O. Box 2999, Hartford,
Connecticut 06104-2999, serves as Transfer and Dividend Disbursing Agent for the
Funds.
"MAJORITY" DEFINED

As used in this Prospectus, the term "majority of the Fund's outstanding
shares" means the vote of: (1) 67% or more of each Fund's shares present at a
meeting, if the holders of more than 50% of the outstanding shares of each Fund
are present or represented by proxy, or (2) more than 50% of each Fund's
outstanding shares, whichever is less.
PENDING LEGAL PROCEEDINGS

As of the date of this Prospectus, there are no pending legal proceedings
involving the Funds or the Adviser or Sub-Adviser as a party.
REQUESTS FOR INFORMATION

This Prospectus does not contain all the information included in the
Registration Statement filed with the SEC. The Registration Statement, including
the exhibits filed therewith, may be examined at the SEC's office in Washington,
D.C. Statements contained in the Prospectus as to the contents of any contract
or other document referred to herein are not necessarily complete, and, in each
instance, reference is made to the copy of such contract or other document filed
as an exhibit to the Registration Statement of which this Prospectus forms a
part, each such statement being qualified, in all respects by such reference.

For additional information, write to "Hartford Family of Funds", c/o
Individual Annuity Operations, P.O. Box 2999, Hartford, CT 06104-2999.
<PAGE>
HARTFORD MUTUAL FUNDS 35
- --------------------------------------------------------------------------------

APPENDIX

The rating information which follows describes how the rating services
mentioned presently rate the described securities. No reliance is made upon the
rating firms as "experts" as that term is defined for securities purposes.
Rather, reliance on this information is on the basis that such ratings have
become generally accepted in the investment business.
RATING OF BONDS

Moody's Investors Service, Inc. ("Moody's")

Aaa -- Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Aa -- Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other elements present
which make the long term risks appear somewhat larger than in Aaa securities.

A -- Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements may be
present which suggest a susceptibility to impairment sometime in the future.

Baa -- Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba --- Bonds which are rated Ba are judged to have speculative elements;
their future cannot be considered as well assured. Often the protection of
interest and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Uncertainty of
position characterizes bonds in this class.

B -- Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa -- Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca -- Bonds which are rated Ca represent obligations which are speculative
in a high degree. Such issues are often in default or have other marked
shortcomings.

C -- Bonds which are rated C are the lowest rated class of bonds and issues
so rated can be regarded as having extremely poor prospects of ever earning any
real investment standing.

Standard & Poor's Corporation ("Standard & Poor's").

AAA -- Bonds rated AAA are the highest grade obligations. Capacity to pay
interest and repay principal is extremely strong.

AA -- Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from AAA issues only in small degree.

A -- Bonds rated A have a very strong capacity to pay interest and repay
principal although they are somewhat more susceptible to the considerable
investment strength but are not entirely free from adverse effects of changes in
circumstances and economic conditions than debt in the highest rated categories.

BBB -- Bonds rated BBB and regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category then in higher rated categories.

BB, B, CCC, CC, C -- Debt rated BB, B, CCC, CC, and C is regarded, on
balance, as predominantly speculative with respect to the issuer's capacity to
pay interest and repay principal in accordance with the terms of the obligation.
While such debt will likely have some quality and protective characteristics,
these are outweighed by large uncertainties or major risk exposures to adverse
conditions.
<PAGE>
36 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

RATING OF COMMERCIAL PAPER

Purchases of corporate debt securities used for short-term investment,
generally called commercial paper, will be limited to the top two grades of
Moody's, Standard & Poor's, Duff & Phelps, Fitch Investor Services and Thomson
Bank Watch or other NRSROs (nationally recognized statistical rating
organizations) rating services and will be an eligible security under Rule 2a-7.

MOODY'S

Issuers rated Prime-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations. Prime-1 repayment
capacity will normally be evidenced by the following characteristics:

- Leading market positions in well-established industries.

- High rates of return on funds employed.

- Conservative capitalization structures with moderate reliance on debt and
ample asset protection.

- Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.

- Well-established access to a range of financial markets and assured
sources of alternate liquidity.

Issuers rated Prime-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations. This will normally
be evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.

Issuers rated Prime-3 (or related supporting institutions) have an
acceptable capacity for repayment of short-term promissory obligations. The
effect of industry characteristics and market composition may be more
pronounced. Variability in earnings and profitability may result in changes in
the level of debt protection measurements and the requirement for relatively
high financial leverage. Adequate alternate liquidity is maintained.

Issuers rated Not Prime do not fall within any of the Prime rating
categories.

STANDARD & POOR'S

The relative strength or weakness of the following factors determines
whether the issuer's commercial paper is rated A-1 or A-2.

- Liquidity ratios are adequate to meet cash requirements.

Liquidity ratios are basically as follows, broken down by the type of
issuer:

Industrial Company: acid test ratio, cash flow as a percent of current
liabilities, short-term debt as a percent of current liabilities, short-term
debt as a percent of current assets.

Utility: current liabilities as a percent of revenues, cash flow as a
percent of current liabilities, short-term debt as a percent of capitalization.

Finance Company: current ratio, current liabilities as a percent of net
receivables, current liabilities as a percent of total liabilities.

- The long-term senior debt rating is "A" or better; in some instances "BBB"
credits may be allowed if other factors outweigh the "BBB".

- The issuer has access to at least two additional channels of borrowing.

- Basic earnings and cash flow have an upward trend with allowances made for
unusual circumstances.

- Typically, the issuer's industry is well established and the issuer has a
strong position within its industry.

- The reliability and quality of management are unquestioned.
<PAGE>

PART B

STATEMENT OF ADDITIONAL INFORMATION

HARTFORD CAPITAL APPRECIATION FUND, INC.
HARTFORD DIVIDEND AND GROWTH FUND, INC.
HARTFORD INDEX FUND, INC.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
HARTFORD STOCK FUND, INC.
HARTFORD ADVISERS FUND, INC.
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
HARTFORD BOND FUND, INC.
HARTFORD MORTGAGE SECURITIES FUND, INC.
HVA MONEY MARKET FUND, INC.
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.

P.O. Box 2999
Hartford, CT 06104-2999

This Statement of Additional Information is not a prospectus. The
information contained herein should be read in conjunction with the prospectus.
To obtain a prospectus send a written request to: "Hartford Family of Funds,"
c/o Individual Annuity Operations, P.O. Box 2999, Hartford, Connecticut
06104-2999.

Date of Prospectus: May 1, 1996
Date of Statement of Additional Information: May 1, 1996

Form HV-1743-11

<PAGE>

TABLE OF CONTENTS PAGE

INVESTMENT OBJECTIVES OF THE FUNDS . . . . . . . . . . . .

INVESTMENT RESTRICTIONS OF THE FUNDS . . . . . . . . . . .

PORTFOLIO TURNOVER . . . . . . . . . . . . . . . . . . . .

MANAGEMENT OF THE FUND . . . . . . . . . . . . . . . . . .

CUSTODIAN AND TRANSFER AGENT . . . . . . . . . . . . . . .

INDEPENDENT PUBLIC ACCOUNTANTS . . . . . . . . . . . . . .

PORTFOLIO BROKERAGE. . . . . . . . . . . . . . . . . . . .

DETERMINATION OF YIELD . . . . . . . . . . . . . . . . . .

CALCULATION OF TOTAL RETURN . . . . . . . . .. . . .. . . .

PERFORMANCE COMPARISONS. . . . . . . . . . . . . . . . . .

FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . .

<PAGE>

INVESTMENT OBJECTIVES OF THE FUNDS

HARTFORD CAPITAL APPRECIATION FUND, INC.:

To achieve growth of capital by investing in securities selected solely
on the basis of potential for capital appreciation; income, if any, is an
incidental consideration.

HARTFORD DIVIDEND AND GROWTH FUND, INC.:

To achieve a high level of current income consistent with growth of
capital and reasonable investment risk.

HARTFORD INDEX FUND, INC.:

To provide investment results that approximate the price and yield
performance of publicly-traded common stocks in the aggregate.

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.:

To achieve long-term total return consistent with prudent investment
risk through investment primarily in equity securities issued by non-U.S.
companies

HARTFORD STOCK FUND, INC.:

To achieve long-term capital growth primarily through capital
appreciation, with income a secondary consideration, by investing in primarily
equity securities.

HARTFORD ADVISERS FUND, INC.:

To achieve maximum long term total rate of return consistent with
prudent investment risk by investing in common stock and other equity
securities, bonds and other debt securities, and money market instruments.

HARTFORD INTERNATIONAL ADVISERS FUND, INC.:

To achieve maximum long-term total rate of return consistent with
prudent investment risk.

HARTFORD BOND FUND, INC.:

To achieve maximum current income consistent with preservation of
capital by investing primarily in fixed-income securities.

<PAGE>

HARTFORD MORTGAGE SECURITIES FUND, INC.:

To achieve maximum current income consistent with safety of principal
and maintenance of liquidity by investing primarily in mortgage-related
securities, including securities issued by the Government National Mortgage
Association.

HVA MONEY MARKET FUND, INC.:

To achieve maximum current income consistent with liquidity and
preservation of capital.

HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.:

To achieve maximum current income consistent with preservation of
capital.

INVESTMENT RESTRICTIONS OF THE FUNDS

Each of the Funds is governed by a number of investment restrictions -
investment practices which are prohibited or which are only permitted to a
limited extent. Under the 1940 Act, investment restrictions must be designated
either "fundamental" or "nonfundamental." "Fundamental" restrictions may only be
changed with the approval of a majority of the outstanding voting securities of
a Fund. "Nonfundamental" restrictions may be changed with the approval of a
majority of a Fund's Board of Directors. Some restrictions are common to all
Funds, usually because governing law so requires. Others vary because of
differences in the objectives of the Funds or for historical reasons.

A. FUNDAMENTAL RESTRICTIONS

1. Issuer Concentration. At least 75% of the assets of each Fund
will be represented by securities limited in respect of any one
issuer (except U.S. Government securities) to an amount not
greater in value than 5% of the value of the total assets of such
Fund. Not more than 10% of the assets of a Fund will be invested
in the securities of any one issuer (except U.S. Government
securities). No Fund will acquire more than 5% of the outstanding
voting securities of any one issuer.

2. Industry Concentration. No Fund will invest more than 25% of its
assets in the securities of issuers primarily engaged in any one
industry; however, this restriction shall not apply to
investments in obligations of the U.S. Government and its
agencies and instrumentalities, bank certificates of deposit,
bankers' acceptances or instruments secured by these money market
instruments. In addition, for the Dividend and Growth Fund only,
electric utilities, natural gas utilities, water utilities and
telecommunications issuers will be considered separate, distinct
industries.

3. Senior Securities. No Fund will issue senior securities, but for
this purpose transactions in futures contracts and options
thereon shall not be deemed the issuance of senior securities.

<PAGE>

4. Borrowings. Except for the Dividend and Growth Fund, the
International Advisers Fund and the International Opportunities
Fund, none of the Funds may borrow amounts in excess of 5% of
its assets, and borrowings by each of the Funds can be only from
banks or through reverse repurchase agreements and as a temporary
measure for extraordinary or emergency purposes. For the Dividend
and Growth Fund and the International Advisers Fund, the
percentage limit on borrowing is 15% and for the International
Opportunities Fund the percentage limit is 20%. In addition, the
Dividend and Growth Fund will not purchase securities when its
borrowings exceed 5% of its assets.

5. Underwriting. No Fund will underwrite securities of other
issuers.

6. Commodities. No Fund will purchase commodities or commodity
contracts, except for transactions in futures contracts and
options on futures contracts.

7. Real Estate. No Fund will invest in real estate, except that each
of the Advisers Fund, Bond Fund, Index Fund and Stock Fund may
invest up to 10% of its assets in interests in real estate which
are readily marketable, and except that the Dividend and Growth
Fund, the International Opportunities Fund and the International
Advisers Fund may hold up to 5% of its assets in real estate or
mineral leases acquired through the ownership of securities, but
such Funds will not acquire securities for the purpose of
acquiring real estate or mineral leases, commodities or commodity
contracts. Notwithstanding the above restriction, the Mortgage
Securities Fund may invest up to 100% of its assets in mortgage-
related securities.

8. Loans. No Fund will make loans, except through the acquisition of
(a) publicly distributed bonds, debentures or other evidences of
indebtedness of a type customarily purchased by institutional
investors; (b) money market instruments as permitted in
accordance with the Fund's investment policies; and (c)
repurchase agreements.

B. NONFUNDAMENTAL RESTRICTIONS

9. Short Sales and Margin. No Fund will purchase securities on
margin or make short sales of securities, except that a Fund may
obtain such short-term credit as may be necessary for the
clearance of purchases and sales of securities and except for
transactions in futures contracts and options thereon.

10. Illiquid Securities. No Fund will invest more than 10% of its
assets in illiquid securities, except that the Dividend and
Growth Fund, the International Advisers Fund, the International
Opportunities Fund may each invest up to 15% of its assets in
illiquid securities, and except that the Index Fund may not
invest in illiquid securities at all.

11. Control. No Fund will, alone or together with any other of the
Hartford Mutual Funds, make investments for the purpose of
exercising control over or

<PAGE>

management of any issuer.

12. Pledges. No Fund will mortgage, pledge, hypothecate, or in any
manner transfer, as security for indebtedness, any securities
owned or held by it, except to secure reverse repurchase
agreements; however, for purposes of this restriction, collateral
arrangements with respect to transactions in futures contracts
and options thereon are not deemed to be a pledge of securities.

13. Other Investment Companies. The Index Fund, the Mortgage
Securities Fund and the money market funds will not purchase
securities of other investment companies. Each of the other Funds
may not invest more than 5% of its assets in securities of other
investment companies and will not acquire more than 3% of the
total outstanding voting securities of any one investment
company.

14. Geographic Concentration. Each of the International Advisers Fund
and the International Opportunities Fund will not invest more
than 20% of its assets in securities of issuers located in any
one country, except that it may invest up to 35% of its assets in
any one of the following countries: Australia, Canada, France,
Japan, the United Kingdom or Germany.

ALL FUNDS

U.S. TREASURY DEPARTMENT DIVERSIFICATION REGULATIONS. The U.S. Treasury
Department has issued diversification regulations under Section 817 of the
Internal Revenue Code. If a mutual fund underlying a variable contract, other
than a pension plan contract, is not adequately diversified within the terms of
these regulations, the contract owner will have adverse income tax consequences.
These regulations provide, among other things, that a mutual fund shall be
considered adequately diversified if (i) no more than 55% of the value of the
assets in the fund is represented by any one investment; (ii) no more than 70%
of the value of the assets in the fund is represented by any two investments;
(iii) no more than 80% of the value of the assets in the fund is represented by
any three investments and (iv) no more than 90% of the value of the total assets
of the fund is represented by any four investments. In determining whether the
diversification standards are met, each United States Government Agency or
instrumentality shall be treated as a separate issuer.

PORTFOLIO TURNOVER

The portfolio turnover rates for the Bond Fund for 1993, 1994 and 1995
were 494.3%, 328.8% and 215%, respectively.

The portfolio turnover rates for the Stock Fund for 1993, 1994 and 1995
were 69.0%, 63.8% and 52.9%, respectively.

The portfolio turnover rates for the Advisers Fund for 1993, 1994 and
1995 were 55.3%, 60.0% and 63.5%, respectively.

<PAGE>

The portfolio turnover rates for the Capital Appreciation Fund for 1993,
1994 and 1995 were 91.4%, 73.3% and 78.6%, respectively.

The portfolio turnover rates for the Mortgage Securities Fund for 1993,
1994 and 1995 were 183.4%, 365.7% and 489.4%, respectively.

The portfolio turnover rates for the Index Fund for 1993, 1994 and 1995
were .8%, 1.8% and 1.5%, respectively.

The portfolio turnover rates for the International Advisers Fund for the
period February 28, 1995 to December 31, 1995 was 47.2 %.

The portfolio turnover rate for the International Opportunities Fund for
1993, 1994 and 1995 were 31.8%, 46.4% and 55.6%, respectively.

The portfolio turnover rates for the Dividend and Growth Fund for the
period March 8, 1994 to December 31, 1994 was 27.8%, and for 1995 was 41.4%.

Because of the short-term nature of their portfolio securities and
market conditions, no meaningful or accurate prediction can be made of the
portfolio turnover rate for the Money Market and U.S. Government Money Market
Funds.

Turnover rate is computed by determining the percentage relationship of
the lesser of purchases and sales of securities to the monthly average of the
value of securities owned for the fiscal year, exclusive of securities whose
maturities at the time of acquisition were one year or less. A high turnover
rate will result in increased brokerage expenses and the likelihood of some
short term gains which may be taxable to shareholders at ordinary income tax
rates (see "Federal Income Taxes" in the prospectus).

MANAGEMENT OF THE FUNDS

The directors and officers of the Funds and their principal business
occupations for the last five years are set forth below. Those directors who are
deemed to be "interested persons" of Hartford Life Insurance Company ("HL") as
that term is defined in the Investment Company Act of 1940, as amended, are
indicated by an asterisk next to their respective names.

Pursuant to a provision of each Fund's Bylaws, an Audit Committee has
been appointed for each of the Funds. This Committee is made up of those
directors who are not "interested persons" of HL. The functions of the Audit
Committee include, but are not limited to: (1) recommending to the Board of
Directors the engagement of an independent auditor; (2) reviewing the plan and
results of such auditor's engagement; and (3) reviewing the Fund's internal
audit arrangements.

JOSEPH ANTHONY BIERNAT (age 68)

<PAGE>

Director
30 Hurdle Fence Drive
Avon, CT 06001

Mr. Biernat served as Senior Vice President and Treasurer of United
Technologies Corporation from 1984 until March, 1987, when he retired. He
subsequently served as Executive Vice President of Boston Security Counselors,
Inc., Hartford, Connecticut, and served as Vice President-Client Services of
Wright Investors' Service, Bridgeport, Connecticut. Mr. Biernat presently is
consulting to organizations on financial matters, with the majority of time
spent with T.O. Richardson & Co., Farmington, Connecticut.

WINIFRED ELLEN COLEMAN (age 63)
Director
27 Buckingham Lane
West Hartford, CT 06117

Ms. Coleman has served as President of Saint Joseph College, West
Hartford, Connecticut since 1991.

JAMES CUBANSKI (age 36)
Assistant Secretary
Hartford Plaza
Hartford, CT 06115

Mr. Cubanski has served as Director of Tax Administration of ITT
Hartford Insurance Group since July 1995. Formerly, he served as Director of
Federal Tax Administration (July, 1993-July, 1995), and Manager of Federal Taxes
(February, 1991 - July, 1993).

PETER CUMMINS (age 58)
Vice President
Hartford Plaza
Hartford, CT 06115

Mr. Cummins has been Vice President of sales and marketing of the
Individual Life and Annuity Division of ITT Hartford Insurance Group-Life
Companies since 1989.

JOSEPH HARRY GAREAU (age 48)*
Director and President
Hartford Plaza
Hartford, CT 06116

Mr. Gareau has served as the Executive Vice President and Chief
Investment Officer of

<PAGE>

ITT Hartford Insurance Group since April, 1993. Formerly, he served as Senior
Vice President (September, 1992 - April, 1993) and Vice President (October, 1987
- - September, 1992).

JAMES RICHARD GARRETT (age 50)
Vice President and Treasurer
Hartford Plaza
Hartford, CT 06115

Mr. Garrett has served as a Vice President of ITT Hartford Insurance
Group since 1989 and as Treasurer since 1983. Mr. Garrett is also the Treasurer
of HIMCO.

JOHN PHILIP GINNETTI (age 51)
Vice President
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Ginnetti has served as Executive Vice President and Director of
Asset Management Services, a division of ITT Hartford Insurance Group-Life
Companies, since 1994. From 1988 to 1994, he served as Senior Vice President
and Director of the Individual Life and Annuities Division of ITT Hartford
Insurance Group-Life Companies.

GEORGE RICHARD JAY (age 43)
Controller
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Jay has served as Secretary and Director, Life and Equity Accounting
and Financial Control of ITT Hartford Insurance Group-Life Companies since 1987.

ANDREW WILLIAM KOHNKE (age 37)
Vice President
P. O. Box 2999
Hartford, CT 06104-2999

Mr. Kohnke has served as a Vice President since 1992, and as an
Investment Manager since 1983, of the ITT Hartford Insurance Group-Life
Companies. Mr, Kohnke is also a Director and Managing Director of HIMCO.

THOMAS MICHAEL MARRA (age 37)
Vice President
P. O. Box 2999
Hartford, CT 06104-2999

<PAGE>

Mr. Marra has served as Executive Vice President since 1996, Senior
Vice President since 1994, and Director of the Individual Life and Annuity
Division of ITT Hartford Insurance Group-Life Companies, since 1980.

CHARLES MINER O'HALLORAN (age 49)
Vice President, Secretary, and General Counsel
Hartford Plaza
Hartford, CT 06115

Mr. O'Halloran has served as Corporate Secretary since 1996, Vice
President since 1994, and Senior Associate General Counsel since 1988, of ITT
Hartford Insurance Group.

WILLIAM ATCHISON O'NEILL (age 65)
Director
Box 360
East Hampton, CT 06424

The Honorable William A. O'Neill served as Governor of the State of
Connecticut from 1980 until 1991. He is presently retired.

MILLARD HANDLEY PRYOR, JR. (age 62)
Director
90 State House Square
Hartford, CT 06103

Mr. Pryor has served as Managing Director of Pryor & Clark Company,
Hartford, Connecticut since June, 1992. He served as Chairman of the Board of
Lydall, Inc. from 1985 until October, 1991 and formerly served as President and
Chief Executive Officer.

LOWNDES ANDREW SMITH (age 56)*
Director and Chairman
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Smith has served as President, Chief Operating Officer, and Director
of ITT Hartford Insurance Group-Life Companies and as a Director of ITT Hartford
Insurance Group since November, 1989.

JOHN KELLEY SPRINGER (age 64)
Director
55 Farmington Avenue
Hartford, CT 06105

<PAGE>

Mr. Springer has served as President and Chief Executive Officer of
Connecticut Health System, Inc., a hospital holding company, since 1986.
Formerly, he served as the President and Chief Executive Officer of Hartford
Hospital, Hartford, Connecticut.

COMPENSATION OF OFFICERS AND DIRECTORS.

None of the Funds pays salaries or any other compensation to any of its
officers or directors who are affiliated with ITT Hartford. The officers and
directors serve in the same capacity for each of the Funds and the unaffiliated
directors receive compensation for serving on the Board of all of the Funds.
The chart below sets forth the fees paid by the Funds to the unaffiliated
directors for the fiscal year ended December 31, 1995:

<TABLE>
<CAPTION>
JOSEPH A. WINIFRED E. WILLIAM A. MILLARD H. JOHN K.
BIERNAT COLEMAN O'NEILL PRYOR SPRINGER
<S> <C> <C> <C> <C> <C>
TOTAL
COMPENSATION
RECEIVED FROM
THE FUNDS $ 18,000 $13,500 $18,000 $ 16,000 $16,000

</TABLE>

CUSTODIAN AND TRANSFER AGENT

Chase Manhattan Bank N.A., New York, New York, serves as Custodian of
the Funds' assets. The Custodian is not involved in determining investment
policies of the Funds or their portfolio securities transactions. Its services
do not protect shareholders against possible depreciation of their assets. The
fees of Chase Manhattan Bank are paid by the Funds and thus borne by the Funds'
shareholders. The Custodian maintains actual custody of the securities of the
Funds.

Hartford Life Insurance Company, Hartford Plaza, Hartford, Connecticut
06115, serves as Transfer and Dividend Disbursing Agent for the Funds. The
Transfer Agent issues and redeems shares of the Funds and disburses any
dividends declared by the Funds.

INDEPENDENT PUBLIC ACCOUNTANTS

The financial statements and financial highlights included in this SAI
and elsewhere in the registration statement have been audited by Arthur Andersen
LLP, independent public accountants, as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in giving said reports.

PORTFOLIO BROKERAGE

<PAGE>

In accordance with the terms of the Investment Advisory Agreements and
Sub-Investment Advisory Agreements, the investment adviser or sub-investment
adviser (the "Adviser") places all portfolio brokerage on behalf of the Funds.
The Adviser attempts to obtain, in all instances, the best price and execution
on all portfolio transactions. In some instances portfolio brokerage may be
through affiliated persons of the Funds.

Purchases and sales of debt securities issued or guaranteed by the U.S.
Government will usually be effected on a net basis with a securities dealer
acting as principal. Principal transactions may involve the payment of a fee or
commission. Securities transactions may also be effected directly with the
issuer without the payment of a fee or commission. The Adviser may also place
orders for the purchase of part of an issue of securities, on behalf of the
Funds, that is being underwritten at prices which will include the payment of an
underwriting fee or a commission to the members of the underwriting group from
whom the securities are purchased.

The Adviser has been authorized by the Boards of Directors of the Funds
to pay an execution-plus-research commission rate which is higher than an
execution-only commission rate in connection with portfolio securities
transactions executed on behalf of the Funds. Research services may include
statistical analysis and economic, market and individual security research. The
Adviser has been authorized by the Funds' Board of Directors to pay higher
commissions than other broker-dealers may charge for such transactions so long
as the Adviser determines in good faith (in accordance with the requirements of
the Securities Exchange Act of 1934, as amended) that the commissions paid are
reasonable in relation to the value of the brokerage and research and
statistical services provided either in terms of the particular transaction or
with respect to its overall account responsibilities. Evaluation of the
reasonableness of brokerage commissions is based on a broker's standard of
efficiency in executing and clearing a trade, and its ability to provide
information and services which help in the areas of research and portfolio
selection. There is no certainty that any research services thus acquired will
be beneficial to the Funds and under certain circumstances, other clients of the
Adviser may benefit from research and statistical services so received. Further,
by paying a higher commission to a broker-dealer under the circumstances
described, the amount of brokerage commissions which the Funds pay may tend to
increase.

Subject to applicable laws and regulations, the Adviser may also
consider the willingness of particular brokers to sell ITT Hartford's variable
annuity or variable life insurance contracts as a factor in the selection of
brokers for its portfolio transactions. At all times, the Adviser attempts to
obtain best price and execution.

The aggregate amount of brokerage commissions paid by the Stock Fund for
1993, 1994 and 1995 was $1,556,000, $1,872,000 and $1,839,000, respectively.

The aggregate amount of brokerage commissions paid by the Advisers Fund
in 1993, 1994 and 1995 was $2,366,000, $2,771,000 and $2,608,000, respectively.

The aggregate amount of brokerage commissions paid by the Capital
Appreciation Fund in

<PAGE>

1993, 1994 and 1995 was $1,595,000, $2,045,000 and $3,069,000, respectively.

The aggregate amount of brokerage commissions paid by the Index Fund in
1993, 1994 and 1995 was $48,000, $24,000 and $66,000, respectively.

The aggregate amount of brokerage commissions paid by the International
Advisers Fund in 1995 was $76,000. The International Advisers Fund commenced
operations in 1995.

The aggregate amount of brokerage commissions paid by the International
Opportunities Fund in 1993, 1994 and 1995 was $785,000, $1,940,000 and
$1,986,000, respectively.

The aggregate amount of brokerage commissions paid by the Dividend and
Growth Fund in 1994 and 1995 was $65,000 and $303,000, respectively. The
Dividend and Growth Fund commenced operations in 1994.

Changes in the amounts of brokerage commissions paid reflect changes in
portfolio turnover rates.

No brokerage commissions were paid in 1993, 1994 or 1995 by the Bond
Fund, Money Market Fund, Mortgage Securities Fund, or U.S. Government Money
Market Fund.

DETERMINATION OF YIELD

HVA Money Market Fund, Inc.

The Fund's yield quotations as they appear in advertising and sales
materials are calculated by a method prescribed by the rules of the Securities
and Exchange Commission.

Yield calculations of the Fund used for illustration purposes are based
on the consideration of a hypothetical account having a balance of exactly one
share at the beginning of a seven day period, which period will end on the date
of the most recent financial statements. The yield for the fund during this
seven day period will be the change in the value of the hypothetical account,
including dividends declared on the original share, dividends declared on any
shares purchased with dividends on that share, and any monthly account charges
or sales charges that would affect an account of average size, but excluding any
capital changes. The following is an example of this yield calculation for the
Fund based on a seven day period ending December 31, 1995.

Example:

<PAGE>

Assumptions:

Value of a hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.000000

Value of the same account* (excluding capital changes) at the end of the seven
day period: $1.001035

*This value would include the value of any additional shares purchased with
dividends from the original share, and all dividends declared on both the
original share and any such additional shares.

Calculation:

Ending account value $1.001035
Less beginning account value 1.000000
---------
Net change in account value $ .001035

Base period return:
(adjusted change/beginning account value)
$.001035/$1.000000 = $.001035
--------

Current yield = $.001035 x (365/7) = 5.40%
Effective yield = (1 + .001035) 365/7 - 1 = 5.44%

The current yield and effective yield information will fluctuate, and
publication of yield information may not provide a basis for comparison with
bank deposits, other investments which are insured and/or pay a fixed yield for
a stated period of time, or other investment companies. In addition, the current
yield and effective yield information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.

Hartford U.S. Government Money Market Fund, Inc.

The Fund's yield quotations as they appear in advertising and sales
materials are calculated by a method prescribed by the rules of the Securities
and Exchange Commission.

Yield calculations of the Fund used for illustrations purposes are based
on the consideration of a hypothetical account having a balance of exactly one
share at the beginning of a seven day period, which period will end on the date
of the most recent financial statements. The yield for the Fund during this
seven day period will be the change in the value of the hypothetical account,
including dividends declared on the original share, dividends declared on any
shares purchased with dividends on that share, and any monthly account charges
or sales charges that would affect an account of average size, but excluding any
capital changes. The following is an example of this yield calculation for the
fund based on a seven day period ending December 31,

<PAGE>

1995.

Example:

Assumptions:

Value of a hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.000000000

Value of the same account* (excluding capital changes) at the end of the seven
day period: $1.001049.

*This value would include the value of any additional shares purchased with
dividends from the original share, and all dividends declared on both the
original share and any such additional shares.

Calculation:

Ending account value $1.001049
Less beginning account value 1.000000
---------
Net change in account value $ .001049

Base period return:
(adjusted change/beginning account value)
$.001049/$1.000000 = $.001049
--------

Current yield = $.001049 x (365/7) = 5.47%
Effective yield = (1 + .001049) 365/7-1 = 5.62%

In addition, the current yield and effective yield information may be of
limited use for comparative purposes because it does not reflect charges imposed
at the Separate Account level which, if included, would decrease the yield.

At any time in the future, yields and total return may be higher or
lower than past yields and there can be no assurance that any historical results
will continue.

<PAGE>

CALCULATION OF TOTAL RETURN

As summarized in the Prospectus under the heading "Performance Related
Information", total return is a measure of the change in value of an investment
in a Fund over the period covered, which assumes any dividends or capital gains
distributions are reinvested in that Fund immediately rather than paid to the
investor in cash. The formula for total return used herein includes four steps:
(1) adding to the total number of shares purchased by a hypothetical $1,000
investment in the Fund all additional shares which would have been purchased if
all dividends and distributions paid or distributed during the period had been
immediately reinvested; (2) calculating the value of the hypothetical initial
investment of $1,000 as of the end of the period by multiplying the total number
of shares owned at the end of the period by the net asset value per share on the
last trading day of the period; (3) assuming redemption at the end of the period
and deducting any applicable contingent deferred sales charge and (4) dividing
this account value for the hypothetical investor by the initial $1,000
investment. Total return will be calculated for one year, five years and ten
years or some other relevant periods if a Fund has not been in existence for at
least ten years.

PERFORMANCE COMPARISONS

YIELD AND TOTAL RETURN

Each Fund may from time to time include its yield and/or total return in
advertisements or information furnished to present or prospective shareholders.
Each Fund may also from time to time include in advertisements the ranking of
those performance figures as categorized by recognized rating firms such as
Lipper Analytical Services and Morningstar, Inc.

The total return and yield may also be used to compare the performance
of the Funds against certain widely acknowledged outside standards or indices
for stock and bond market performance including those described below.

The Standard & Poor's 500 Stock Price Index (the "S&P 500") is a market
value-weighted and unmanaged index showing the changes in the aggregate market
value of 500 stocks. The S&P 500 represents about 80% of the market value of all
issues traded on the New York Stock Exchange.

The NASDAQ Composite OTC Price Index (the "NASDAQ Index") is a market
value-weighted and unmanaged index showing the changes in the aggregate market
value of approximately 3,500 stocks. The NASDAQ Index is composed entirely of
common stocks of companies traded over-the-counter and often through the
National Association of Securities Dealers Automated Quotations ("NASDAQ")
system. Only those over-the-counter stocks having only one market maker or
traded on exchanges are excluded.

The Lehman Government Bond Index (the "Lehman Government Index") is a
measure of

<PAGE>

the market value of all public obligations of the U.S. Treasury; all publicly
issued debt of all agencies of the U.S. Government and all quasi-federal
corporations; and all corporate debt guaranteed by the U.S. Government.
Mortgage backed securities, flower bonds and foreign targeted issues are not
included in the Lehman Government Index.

The Morgan Stanley Capital International EAFE Index (the "EAFE Index")
is an unmanaged index, which includes over 1,000 companies representing the
stock markets of Europe, Australia, New Zealand, and the Far East. The EAFE
Index is weighted by market capitalization, and therefore, it has a heavy
representation in countries with large stock markets, such as Japan.

The Lehman Government/Corporate Bond Index (the "Lehman
Government/Corporate Index") is a measure of the market value of approximately
5,300 bonds with a face value currently in excess of $1.3 trillion. To be
included in the Lehman Government/Corporate Index, an issue must have amounts
outstanding in excess of $1 million, have at least one year to maturity and be
rated "Baa" or higher ("investment grade") by a nationally recognized rating
agency.

The Composite Index for Hartford Advisers Fund is comprised of the S&P
500 (55%), the Lehman Government/Corporate Bond Index (35%), both mentioned
above, and 90 Day U.S. Treasury Bills (10%).

The Russell 2500 Index is a market value-weighted, unmanaged index
showing total return (i.e., principal changes with income) in the aggregate
market value of 2,500 stocks of publicly traded companies domiciled in the
United States. The Index includes stocks traded on the New York Stock Exchange
and the American Stock Exchange as well as in the over-the-counter market.

The Composite Index for the Capital Appreciation Fund is the Russell
2500 Index (60%)/S&P 500 Index (40%), both of which are mentioned above.

The following table sets forth the average annual total return, and
yield where applicable, for each Fund through December 31, 1995.

TOTAL RETURN/YIELD

SEC 30
10 YEARS OR DAY
FUND 1 YEAR 5 YEARS SINCE INCEPTION YIELD
- ---- ------ ------- --------------- -----
<S> <C> <C> <C> <C>

Capital Appreciation 30.25% 23.77% 15.50%
Dividend and Growth 36.37% ---- 19.93%
Index 36.55% 15.78% 11.81%
International Opportunities 13.93% 10.04% 6.75%
Stock 34.10% 15.59% 13.42%
Advisers 28.34% 12.80% 11.85%
International Advisers ---- ---- 15.84%
Bond 18.49% 9.06% 8.51% 6.46%
Mortgage Securities 16.17% 7.84% 8.38% 6.90%

<PAGE>

HVA Money Market 5.74% 4.45% 6.00%
U. S. Government Money Market 5.52% 4.14% 5.55%

</TABLE>

kc\variable\96prosai.wpd

<PAGE>

PART C

OTHER INFORMATION
------------------

Item 24. Financial Statements and Exhibits

(a) Financial statements: Incorporated by reference to Parts A and B
of this Post-Effective Amendment to the Registration
Statement.

(b) Exhibits:

(1) Articles of Incorporation*
(2) By-Laws*
(3) Not Applicable
(4) Share Certificate*
(5) Form of Investment Management Agreement*
(5.1) For of Investment Sub-Advisory Agreement*
(6) Not Applicable
(7) Not Applicable
(8) Form of Custodian Agreement*
(8.1) Form of Custodian Agreement with Chase Manhattan Bank
(9) Form of Administrative Services Agreement*
(9.1) Form of Share Purchase Agreement*
(10) Opinion and Consent of Counsel**
(11) Consent of Independent Public Accountants
(12) 1995 Annual Report to Shareholders' Financial Statements
(13) Not Applicable
(14) Not Applicable
(15) Not Applicable
(16) Schedule of Computation for Performance Quotations*
(17) Not Applicable
(18) Not Applicable
(19) Powers of Attorney
(27) Financial Data Schedule

*Previously filed as exhibit to Registrant's Registration Statement and
incorporated by reference herein.
**Filed with Registrant's Rule 24f-2 Notice.

<PAGE>

Items 25 through 29 and Item 31 are incorporated by reference to Part C of
Registrant's Registration Statement.

Item 30. LOCATION OF ACCOUNTS & RECORDS

The Hartford Life Insurance Company
P.O. Box 2999
Hartford, CT 06104-2999

AND

The Chase Manhattan Bank, N.A.
Chase MetroTech Center
Brooklyn, NY 11245

Item 32. UNDERTAKING

The Registrant undertakes to furnish to each person to whom a prospectus
has been delivered a copy of the Registrant's latest annual report to
shareholders, upon request and without charge.

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned thereto duly authorized,
in the City of Hartford, and State of Connecticut on the 15th day of April,
1996.

HARTFORD STOCK FUND, INC.

By: *
-------------------------------------
Joseph H. Gareau
Its: President

Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the date indicated.

Signature Title Date
- --------- ----- ----

President April 15, 1996
- ----------------*--------------
Joseph H. Gareau (Chief Executive Officer
& Director)

Controller April 15, 1996
- ----------------*--------------
George R. Jay (Chief Accounting Officer)

Vice President and Treasurer April 15, 1996
- ----------------*--------------
J. Richard Garrett (Chief Financial Officer)

Director April 15, 1996
- ----------------*--------------
Joseph A. Biernat

Director April 15, 1996
- ----------------*--------------
Winifred E. Coleman

Director April 15, 1996
- ----------------*--------------
William A. O'Neill

<PAGE>

Director April 15, 1996
- ----------------*--------------
Millard H. Pryor, Jr.

Director April 15, 1996
- ----------------*--------------
Lowndes A. Smith

Director April 15, 1996
- ----------------*--------------
John K. Springer
(A Majority of the Directors)

/S/ Michael O'Halloran April 15, 1996

* By Michael O'Halloran
Attorney-in-Fact

<PAGE>

EXHIBIT INDEX

EXHIBIT NO. PAGE NO.

8.1 Form of Custodian Agreement with Chase
Manhattan Bank

11 Consent of Arthur Andersen LLP

12 Annual Report to Shareholders

19 Power of Attorney

27 Financial Data Schedule

<PAGE>

EXHIBIT 8.1

GLOBAL CUSTODY AGREEMENT

This AGREEMENT is effective ___________________, 19___, and is between
THE CHASE MANHATTAN BANK, N.A. (the "Bank") and ITT HARTFORD INSURANCE GROUP
(the "Customer").

1. CUSTOMER ACCOUNTS.

The Bank agrees to establish and maintain the following accounts
("Accounts"):

(a) A custody account in the name of the Customer ("Custody
Account") for any and all stocks, shares, bonds, debentures, notes, mortgages or
other obligations for the payment of money, bullion, coin and any certificates,
receipts, warrants or other instruments representing rights to receive, purchase
or subscribe for the same or evidencing or representing any other rights or
interests therein and other similar property whether certificated or
uncertificated as may be received by the Bank or its Subcustodian (as defined in
Section 3) for the account of the Customer ("Securities"); and

(b) A deposit account in the name of the Customer ("Deposit
Account") for any and all cash in any currency received by the Bank or its
Subcustodian for the account of the Customer, which cash shall not be subject to
withdrawal by draft or check.

The Customer warrants its authority to: (1) deposit the cash and
Securities ("Assets") received in the Accounts and (2) give Instructions (as
defined in Section 11) concerning the Accounts. The Bank may deliver securities
of the same class in place of those deposited in the Custody Account.

Upon written agreement between the Bank and the Customer, additional
Accounts may be established and separately accounted for as additional Accounts
under the terms of this Agreement.

2. MAINTENANCE OF SECURITIES AND CASH AT BANK AND SUBCUSTODIAN LOCATIONS.

Unless Instructions specifically require another location acceptable
to the Bank:

(a) Securities will be held in the country or other jurisdiction
in which the principal trading market for such Securities is located, where such
Securities are to be presented for payment or where such Securities are
acquired; and

(b) Cash will be credited to an account in a country or other
jurisdiction in which such cash may be legally deposited or is the legal
currency for the payment of public or private debts.

Cash may be held pursuant to Instructions in either interest or
non-interest bearing accounts as may be available for the particular currency.
To the extent Instructions are issued and the Bank can comply with such
Instructions, the Bank is authorized to maintain cash balances on deposit for
the Customer with itself or one of its affiliates at such reasonable rates of
interest as may from time to time be paid on such accounts, or in non-interest
bearing accounts as the Customer may direct, if acceptable to the Bank.

If the Customer wishes to have any of its Assets held in the custody
of an institution other than the established Subcustodians as defined in Section
3 (or their securities depositories), such arrangement must be authorized by a
written agreement, signed by the Bank and the Customer.

3. SUBCUSTODIANS AND SECURITIES DEPOSITORIES.

<PAGE>

The Bank may act under this Agreement through the subcustodians listed
in Schedule A of this Agreement with which the Bank has entered into
subcustodial agreements ("Subcustodians"). The Customer authorizes the Bank to
hold Assets in the Accounts in accounts which the Bank has established with one
or more of its branches or Subcustodians. The Bank and Subcustodians are
authorized to hold any of the Securities in their account with any securities
depository in which they participate.

The Bank reserves the right to add new, replace or remove
Subcustodians. The Customer will be given reasonable notice by the Bank of any
amendment to Schedule A. Upon request by the Customer, the Bank will identify
the name, address and principal place of business of any Subcustodian of the
Customer's Assets and the name and address of the governmental agency or other
regulatory authority that supervises or regulates such Subcustodian.

4. USE OF SUBCUSTODIAN.

(a) The Bank will identify such Assets on its books as belonging
to the Customer.

(b) A Subcustodian will hold such Assets together with assets
belonging to other customers of the Bank in accounts identified on such
Subcustodian's books as special custody accounts for the exclusive benefit of
customers of the Bank.

(c) Any Assets in the Accounts held by a Subcustodian will be
subject only to the instructions of the Bank or its agent. Any Securities held
in a securities depository for the account of a Subcustodian will be subject
only to the instructions of such Subcustodian.

(d) Any agreement the Bank enters into with a Subcustodian for
holding its customer's assets shall provide that such assets will not be subject
to any right, charge, security interest, lien or claim of any kind in favor of
such Subcustodian except for safe custody or administration, and that the
beneficial ownership of such assets will be freely transferable without the
payment of money or value other than for safe custody or administration. The
foregoing shall not apply to the extent of any special agreement or arrangement
made by the Customer with any particular Subcustodian.

5. DEPOSIT ACCOUNT TRANSACTIONS.

(a) The Bank or its Subcustodians will make payments from the
Deposit Account upon receipt of Instructions which include all information
required by the Bank.

(b) In the event that any payment to be made under this Section 5
exceeds the funds available in the Deposit Account, the Bank, in its discretion,
may advance the Customer such excess amount which shall be deemed a loan payable
on demand, bearing interest at the rate customarily charged by the Bank on
similar loans.

(c) If the Bank credits the Deposit Account on a payable date, or
at any time prior to actual collection and reconciliation to the Deposit
Account, with interest, dividends, redemptions or any other amount due, the
Customer will promptly return any such amount upon oral or written notification:
(i) that such amount has not been received in the ordinary course of business or
(ii) that such amount was incorrectly credited. If the Customer does not
promptly return any amount upon such notification, the Bank shall be entitled,
upon oral or written notification to the Customer, to reverse such credit by
debiting the Deposit Account for the amount previously credited. The Bank or
its Subcustodian shall have no duty or obligation to institute legal
proceedings, file a claim or a proof of claim in any insolvency proceeding or
take any other action with respect to the collection of such amount, but may act
for the Customer upon Instructions after consultation with the Customer.

<PAGE>

6. CUSTODY ACCOUNT TRANSACTIONS.

(a) Securities will be transferred, exchanged or delivered by the
Bank or its Subcustodian upon receipt by the Bank of Instructions which include
all information required by the Bank. Settlement and payment for Securities
received for, and delivery of Securities out of, the Custody Account may be made
in accordance with the customary or established securities trading or securities
processing practices and procedures in the jurisdiction or market in which the
transaction occurs, including, without limitation, delivery of Securities to a
purchaser, dealer or their agents against a receipt with the expectation of
receiving later payment and free delivery. Delivery of Securities out of the
Custody Account may also be made in any manner specifically required by
Instructions acceptable to the Bank.

(b) The Bank, in its discretion, may credit or debit the Accounts
on a contractual settlement date with cash or Securities with respect to any
sale, exchange or purchase of Securities. Otherwise, such transactions will be
credited or debited to the Accounts on the date cash or Securities are actually
received by the Bank and reconciled to the Account.

(i) The Bank may reverse credits or debits made to the Accounts in
its discretion if the related transaction fails to settle within a
reasonable period, determined by the Bank in its discretion, after the
contractual settlement date for the related transaction.

(ii) If any Securities delivered pursuant to this Section 6 are
returned by the recipient thereof, the Bank may reverse the credits
and debits of the particular transaction at any time.

7. ACTIONS OF THE BANK.

The Bank shall follow Instructions received regarding assets held in
the Accounts. However, until it receives Instructions to the contrary, the Bank
will:

(a) Present for payment any Securities which are called, redeemed
or retired or otherwise become payable and all coupons and other income items
which call for payment upon presentation, to the extent that the Bank or
Subcustodian is actually aware of such opportunities.

(b) Execute in the name of the Customer such ownership and other
certificates as may be required to obtain payments in respect of Securities.

(d) Appoint brokers and agents for any transaction involving the
Securities, including, without limitation, affiliates of the Bank or any
Subcustodian.

(e) Issue statements to the Customer, at times mutually agreed
upon, identifying the Assets in the Accounts.

The Bank will send the Customer an advice or notification of any
transfers of Assets to or from the Accounts. Such statements, advices or
notifications shall indicate the identity of the entity having custody of the
Assets. Unless the Customer sends the Bank a written exception or objection to
any Bank statement within sixty (60) days of receipt, the Customer shall be
deemed to have approved such statement. In such event, or where the Customer has
otherwise approved any such statement, the Bank shall, to the extent permitted
by law, be released, relieved and discharged with respect to all matters set
forth in such statement or reasonably implied therefrom as though it had been
settled by the decree of a court of competent jurisdiction in an action where
the Customer and all persons having or claiming an interest in the Customer or
the Customer's Accounts were parties.

All collections of funds or other property paid or distributed in
respect of Securities in the Custody Account shall be made at the risk of the
Customer. The Bank shall have no liability for any loss occasioned by delay in
the actual receipt of notice by the Bank or by its Subcustodians of any payment,
redemption or other transaction regarding Securities in the Custody Account in
respect of which the Bank has agreed to take any action under this Agreement.

<PAGE>

8. CORPORATE ACTIONS; PROXIES.

Whenever the Bank receives information concerning the Securities which
requires discretionary action by the beneficial owner of the Securities (other
than a proxy), such as subscription rights, bonus issues, stock repurchase plans
and rights offerings, or legal notices or other material intended to be
transmitted to securities holders ("Corporate Actions"), the Bank will give the
Customer notice of such Corporate Actions to the extent that the Bank's central
corporate actions department has actual knowledge of a Corporate Action in time
to notify its customers.

When a rights entitlement or a fractional interest resulting from a
rights issue, stock dividend, stock split or similar Corporate Action is
received which bears an expiration date, the Bank will endeavor to obtain
Instructions from the Customer or its Authorized Person, but if Instructions are
not received in time for the Bank to take timely action, or actual notice of
such Corporate Action was received too late to seek Instructions, the Bank is
authorized to sell such rights entitlement or fractional interest and to credit
the Deposit Account with the proceeds or take any other action it deems, in good
faith, to be appropriate in which case it shall be held harmless for any such
action.

The Bank will deliver proxies to the Customer or its designated agent
pursuant to special arrangements which may have been agreed to in writing. Such
proxies shall be executed in the appropriate nominee name relating to Securities
in the Custody Account registered in the name of such nominee but without
indicating the manner in which such proxies are to be voted; and where bearer
Securities are involved, proxies will be delivered in accordance with
Instructions.

9. NOMINEES.

Securities which are ordinarily held in registered form may be
registered in a nominee name of the Bank, Subcustodian or securities depository,
as the case may be. The Bank may without notice to the Customer cause any such
Securities to cease to be registered in the name of any such nominee and to be
registered in the name of the Customer. In the event that any Securities
registered in a nominee name are called for partial redemption by the issuer,
the Bank may allot the called portion to the respective beneficial holders of
such class of security in any manner the Bank deems to be fair and equitable.
The Customer agrees to hold the Bank, Subcustodians, and their respective
nominees harmless from any liability arising directly or indirectly from their
status as a mere record holder of Securities in the Custody Account.

10. AUTHORIZED PERSONS.

As used in this Agreement, the term "Authorized Person" means
employees or agents including investment managers as have been designated by
written notice from the Customer or its designated agent to act on behalf of the
Customer under this Agreement. Such persons shall continue to be Authorized
Persons until such time as the Bank receives Instructions from the Customer or
its designated agent that any such employee or agent is no longer an Authorized
Person.

11. INSTRUCTIONS.

The term "Instructions" means instructions of any Authorized Person
received by the Bank, via telephone, telex, TWX, facsimile transmission, bank
wire or other teleprocess or electronic instruction or trade information system
acceptable to the Bank which the Bank believes in good faith to have been given
by Authorized Persons or which are transmitted with proper testing or
authentication pursuant to terms and conditions which the Bank may specify.
Unless otherwise expressly provided, all Instructions shall continue in full
force and effect until canceled or superseded.

Any Instructions delivered to the Bank by telephone shall promptly
thereafter be confirmed in writing by an Authorized Person (which confirmation
may bear the facsimile signature of such Person), but the Customer will hold the
Bank harmless for the failure of an Authorized Person to send such confirmation
in writing, the failure of such confirmation to conform to the telephone
instructions received or the Bank's failure to produce such confirmation at any
subsequent time. The Bank may electronically record any Instructions given by
telephone, and any other telephone discussions with respect to the Custody
Account. The Customer shall be responsible for safeguarding any test keys,
identification codes or other security

<PAGE>

devices which the Bank shall make available to the Customer or its Authorized
Persons.

12. STANDARD OF CARE; LIABILITIES.

(a) The Bank shall be responsible for the performance of only such
duties as are set forth in this Agreement or expressly contained in Instructions
which are consistent with the provisions of this Agreement as follows:

(i) The Bank will use reasonable care with respect to its
obligations under this Agreement and the safekeeping of Assets. The
Bank shall be liable to the Customer for any loss which shall occur as
the result of the failure of a Subcustodian to exercise reasonable
care with respect to the safekeeping of such Assets to the same extent
that the Bank would be liable to the Customer if the Bank were holding
such Assets in New York. In the event of any loss to the Customer by
reason of the failure of the Bank or its Subcustodian to utilize
reasonable care, the Bank shall be liable to the Customer only to the
extent of the Customer's direct damages, to be determined based on the
market value of the property which is the subject of the loss at the
date of discovery of such loss and without reference to any special
conditions or circumstances.

(ii) The Bank will not be responsible for any act, omission,
default or for the solvency of any broker or agent which it or a
Subcustodian appoints unless such appointment was made negligently or
in bad faith.

(iii) The Bank shall be indemnified by, and without liability to the
Customer for any action taken or omitted by the Bank whether pursuant
to Instructions or otherwise within the scope of this Agreement if
such act or omission was in good faith, without negligence. In
performing its obligations under this Agreement, the Bank may rely on
the genuineness of any document which it believes in good faith to
have been validly executed.

(iv) The Customer agrees to pay for and hold the Bank harmless from
any liability or loss resulting from the imposition or assessment of
any taxes or other governmental charges, and any related expenses with
respect to income from or Assets in the Accounts.

(v) The Bank shall be entitled to rely, and may act, upon the
advice of counsel (who may be counsel for the Customer) on all matters
and shall be without liability for any action reasonably taken or
omitted pursuant to such advice.

(vi) The Bank need not maintain any insurance for the benefit of
the Customer.

(vii) Without limiting the foregoing, the Bank shall not be liable
for any loss which results from: 1) the general risk of investing, or
2) investing or holding Assets in a particular country including, but
not limited to, losses resulting from nationalization, expropriation
or other governmental actions; regulation of the banking or securities
industry; currency restrictions, devaluations or fluctuations; and
market conditions which prevent the orderly execution of securities
transactions or affect the value of Assets.

(viii) Neither party shall be liable to the other for any loss due to
forces beyond their control including, but not limited to strikes or
work stoppages, acts of war or terrorism, insurrection, revolution,
nuclear fusion, fission or radiation, or acts of God.

(b) Consistent with and without limiting the first paragraph of
this Section 12, it is specifically acknowledged that the Bank shall have no
duty or responsibility to:

(i) question Instructions or make any suggestions to the Customer
or an Authorized Person regarding such Instructions;

(ii) supervise or make recommendations with respect to investments
or the retention of Securities;

<PAGE>

(iii) advise the Customer or an Authorized Person regarding any
default in the payment of principal or income of any security other
than as provided in Section 5(c) of this Agreement;

(iv) evaluate or report to the Customer or an Authorized Person
regarding the financial condition of any broker, agent or other party
to which Securities are delivered or payments are made pursuant to
this Agreement;

(v) review or reconcile trade confirmations received from brokers.
The Customer or its Authorized Persons (as defined in Section 10)
issuing Instructions shall bear any responsibility to review such
confirmations against Instructions issued to and statements issued by
the Bank.

(c) The Customer authorizes the Bank to act under this Agreement
notwithstanding that the Bank or any of its divisions or affiliates may have a
material interest in a transaction, or circumstances are such that the Bank may
have a potential conflict of duty or interest including the fact that the Bank
or any of its affiliates may provide brokerage services to other customers, act
as financial advisor to the issuer of Securities, act as a lender to the issuer
of Securities, act in the same transaction as agent for more than one customer,
have a material interest in the issue of Securities, or earn profits from any of
the activities listed herein.

13. FEES AND EXPENSES.

The Customer agrees to pay the Bank for its services under this
Agreement such amount as may be agreed upon in writing, together with the Bank's
reasonable out-of-pocket or incidental expenses, including, but not limited to,
legal fees. The Bank shall have a lien on and is authorized to charge any
Accounts of the Customer for any amount owing to the Bank under any provision of
this Agreement.

14. MISCELLANEOUS.

(a) FOREIGN EXCHANGE TRANSACTIONS. To facilitate the
administration of the Customer's trading and investment activity, the Bank is
authorized to enter into spot or forward foreign exchange contracts with the
Customer or an Authorized Person for the Customer and may also provide foreign
exchange through its subsidiaries, affiliates or Subcustodians. Instructions,
including standing instructions, may be issued with respect to such contracts
but the Bank may establish rules or limitations concerning any foreign exchange
facility made available. In all cases where the Bank, its subsidiaries,
affiliates or Subcustodians enter into a foreign exchange contract related to
Accounts, the terms and conditions of the then current foreign exchange contract
of the Bank, its subsidiary, affiliate or Subcustodian and, to the extent not
inconsistent, this Agreement shall apply to such transaction.

(b) CERTIFICATION OF RESIDENCY, ETC. The Customer certifies that
it is a resident of the United States and agrees to notify the Bank of any
changes in residency. The Bank may rely upon this certification or the
certification of such other facts as may be required to administer the Bank's
obligations under this Agreement. The Customer will indemnify the Bank against
all losses, liability, claims or demands arising directly or indirectly from any
such certifications.

<PAGE>

(c) ACCESS TO RECORDS. The Bank shall allow the Customer's
independent public accountant reasonable access to the records of the Bank
relating to the Assets as is required in connection with their examination of
books and records pertaining to the Customer's affairs. Subject to restrictions
under applicable law, the Bank shall also obtain an undertaking to permit the
Customer's independent public accountants reasonable access to the records of
any Subcustodian which has physical possession of any Assets as may be required
in connection with the examination of the Customer's books and records.

(d) GOVERNING LAW; SUCCESSORS AND ASSIGNS. This Agreement shall
be governed by the laws of the State of New York and shall not be assignable by
either party, but shall bind the successors in interest of the Customer and the
Bank.

(e) ENTIRE AGREEMENT; APPLICABLE RIDERS. Customer represents that
the Assets deposited in the Accounts are (Check one):

Employee Benefit Plan or other assets subject to the Employee
---- Retirement Income Security Act of 1974, as amended
("ERISA");

Mutual Fund assets subject to certain Securities and Exchange
---- Commission ("SEC") rules and regulations;

Neither of the above.
----

This Agreement consists exclusively of this document together with
Schedule A, Exhibits I - _______ and the following Rider(s):

MUTUAL FUND

INSURANCE COMPANY PROVISIONS

There are no other provisions of this Agreement and this Agreement
supersedes any other agreements, whether written or oral, between the parties.
Any amendment to this Agreement must be in writing, executed by both parties.

(f) SEVERABILITY. In the event that one or more provisions of
this Agreement are held invalid, illegal or unenforceable in any respect on the
basis of any particular circumstances or in any jurisdiction, the validity,
legality and enforceability of such provision or provisions under other
circumstances or in other jurisdictions and of the remaining provisions will not
in any way be affected or impaired.

(g) WAIVER. Except as otherwise provided in this Agreement, no
failure or delay on the part of either party in exercising any power or right
under this Agreement operates as a waiver, nor does any single or partial
exercise of any power or right preclude any other or further exercise, or the
exercise of any other power or right. No waiver by a party of any provision of
this Agreement, or waiver of any breach or default, is effective unless in
writing and signed by the party against whom the waiver is to be enforced.

(h) NOTICES. All notices under this Agreement shall be effective
when actually received. Any notices or other communications which may be
required under this Agreement are to be sent to the parties at the following
addresses or such other addresses as may subsequently be given to the other
party in writing:

<PAGE>

BANK: The Chase Manhattan Bank, N.A.
Chase MetroTech Center
Brooklyn, NY 11245
Attention: Global Custody Division

or telex:
-----------------------------------

CUSTOMER:
--------------------------------------------

--------------------------------------------

or telex:
----------------------------------

(i) TERMINATION. This Agreement may be terminated by the Customer
or the Bank by giving sixty (60) days written notice to the other, provided that
such notice to the Bank shall specify the names of the persons to whom the Bank
shall deliver the Assets in the Accounts. If notice of termination is given by
the Bank, the Customer shall, within sixty (60) days following receipt of the
notice, deliver to the Bank Instructions specifying the names of the persons to
whom the Bank shall deliver the Assets. In either case the Bank will deliver
the Assets to the persons so specified, after deducting any amounts which the
Bank determines in good faith to be owed to it under Section 13. If within
sixty (60) days following receipt of a notice of termination by the Bank, the
Bank does not receive Instructions from the Customer specifying the names of the
persons to whom the Bank shall deliver the Assets, the Bank, at its election,
may deliver the Assets to a bank or trust company doing business in the State of
New York to be held and disposed of pursuant to the provisions of this
Agreement, or to Authorized Persons, or may continue to hold the Assets until
Instructions are provided to the Bank.

ITT HARTFORD INSURANCE GROUP

By
--------------------------------
Title

THE CHASE MANHATTAN BANK, N.A.

By:
--------------------------------
Title

<PAGE>

STATE OF )
: ss.
COUNTY OF )

On this day of , 19 , before me
personally came , to me known, who being by
me duly sworn, did depose and say that he/she resides in
at

; that he/she is
of , the entity described in and which
executed the foregoing instrument; that he/she knows the seal of said entity,
that the seal affixed to said instrument is such seal, that it was so affixed by
order of said entity, and that he/she signed his/her name thereto by like order.

------------------------------

Sworn to before me this
---------------------

day of , 19 .
-------------- -----

- ------------------------------------
Notary

<PAGE>

STATE OF NEW YORK )
: ss.
COUNTY OF NEW YORK )

On this day of ,19 ,
before me personally came , to me known, who being
by me duly sworn, did depose and say that he/she resides in
at

,that he/she is a Vice President
of THE CHASE MANHATTAN BANK, (National Association), the corporation
described in and which executed the foregoing instrument; that he/she knows
the seal of said corporation, that the seal affixed to said instrument is
such corporate seal, that it was so affixed by order of the Board of
Directors of said corporation, and that he/she signed his/her name thereto by
like order.

------------------------------

Sworn to before me this
----------------------------

day of , 19 .
---------------- --------

- -------------------------------------------
Notary

<PAGE>

Mutual Fund Rider to Global Custody Agreement

Between The Chase Manhattan Bank, N.A. and

ITT Hartford Insurance Group,

effective
---------------------

Customer represents that the Assets being placed in the Bank's custody
are subject to the Investment Company Act of 1940 (the Act), as the same may be
amended from time to time.

Except to the extent that the Bank has specifically agreed to comply
with a condition of a rule, regulation, interpretation promulgated by or under
the authority of the SEC or the Exemptive Order applicable to accounts of this
nature issued to the Bank (Investment Company Act of 1940, Release No. 12053,
November 20, 1981), as amended, or unless the Bank has otherwise specifically
agreed, the Customer shall be solely responsible to assure that the maintenance
of Assets under this Agreement complies with such rules, regulations,
interpretations or exemptive order promulgated by or under the authority of the
Securities Exchange Commission.

The following modifications are made to the Agreement:

Section 3. SUBCUSTODIANS AND SECURITIES DEPOSITORIES.

Add the following language to the end of Section 3:

The terms Subcustodian and securities depositories as used in this
Agreement shall mean a branch of a qualified U.S. bank, an eligible
foreign custodian or an eligible foreign securities depository, which
are further defined as follows:

(a) "qualified U.S. Bank" shall mean a qualified U.S. bank as defined
in Rule 17f-5 under the Investment Company Act of 1940;
(b) "eligible foreign custodian" shall mean (i) a banking institution
or trust company incorporated or organized under the laws of a country
other than the United States that is regulated as such by that
country's government or an agency thereof and that has shareholders'
equity in excess of $200 million in U.S. currency (or a foreign
currency equivalent thereof), (ii) a majority owned direct or indirect
subsidiary of a qualified U.S. bank or bank holding company that is
incorporated or organized under the laws of a country other than the
United States and that has shareholders' equity in excess of $100
million in U.S. currency (or a foreign currency equivalent
thereof)(iii) a banking institution or trust company incorporated or
organized under the laws of a country other than the United States or
a majority owned direct or indirect subsidiary of a qualified U.S.
bank or bank holding company that is incorporated or organized under
the laws of a country other than the United States which has such
other qualifications as shall be specified in

<PAGE>

Instructions and approved by the Bank; or (iv) any other entity that
shall have been so qualified by exemptive order, rule or other
appropriate action of the SEC; and

(c) "eligible foreign securities depository" shall mean a securities
depository or clearing agency, incorporated or organized under the
laws of a country other than the United States, which operates (i) the
central system for handling securities or equivalent book-entries in
that country, or (ii) a transnational system for the central handling
of securities or equivalent book-entries.

The Customer represents that its Board of Directors has approved each
of the Subcustodians listed in Schedule A to this Agreement and the terms of the
subcustody agreements between the Bank and each Subcustodian, which are attached
as Exhibits I through_____ of Schedule A, and further represents that its Board
has determined that the use of each Subcustodian and the terms of each
subcustody agreement are consistent with the best interests of the Fund(s) and
its (their) shareholders. The Bank will supply the Customer with any amendment
to Schedule A for approval. The Customer has supplied or will supply the Bank
with certified copies of its Board of Directors resolution(s) with respect to
the foregoing prior to placing Assets with any Subcustodian so approved.

Section 11. INSTRUCTIONS.

Add the following language to the end of Section 11:

Deposit Account Payments and Custody Account Transactions made
pursuant to Section 5 and 6 of this Agreement may be made only for the
purposes listed below. Instructions must specify the purpose for
which any transaction is to be made and Customer shall be solely
responsible to assure that Instructions are in accord with any
limitations or restrictions applicable to the Customer by law or as
may be set forth in its prospectus.

(a) In connection with the purchase or sale of Securities at prices
as confirmed by Instructions;

(b) When Securities are called, redeemed or retired, or otherwise
become payable;

(c) In exchange for or upon conversion into other securities alone or
other securities and cash pursuant to any plan or merger,
consolidation, reorganization, recapitalization or readjustment;

(d) Upon conversion of Securities pursuant to their terms into other
securities;

(e) Upon exercise of subscription, purchase or other similar rights
represented by Securities;

(f) For the payment of interest, taxes, management or supervisory
fees, distributions or operating expenses;

<PAGE>

(g) In connection with any borrowings by the Customer requiring a
pledge of Securities, but only against receipt of amounts borrowed;

(h) In connection with any loans, but only against receipt of
adequate collateral as specified in Instructions which shall reflect
any restrictions applicable to the Customer;

(i) For the purpose of redeeming shares of the capital stock of the
Customer and the delivery to, or the crediting to the account of, the
Bank, its Subcustodian or the Customer's transfer agent, such shares
to be purchased or redeemed;

(j) For the purpose of redeeming in kind shares of the Customer
against delivery to the Bank, its Subcustodian or the Customer's
transfer agent of such shares to be so redeemed;

(k) For delivery in accordance with the provisions of any agreement
among the Customer, the Bank and a broker-dealer registered under the
Securities Exchange Act of 1934 (the "Exchange Act") and a member of
The National Association of Securities Dealers, Inc. ("NASD"),
relating to compliance with the rules of The Options Clearing
Corporation and of any registered national securities exchange, or of
any similar organization or organizations, regarding escrow or other
arrangements in connection with transactions by the Customer;

(l) For release of Securities to designated brokers under covered
call options, provided, however, that such Securities shall be
released only upon payment to the Bank of monies for the premium due
and a receipt for the Securities which are to be held in escrow. Upon
exercise of the option, or at expiration, the Bank will receive from
brokers the Securities previously deposited. The Bank will act
strictly in accordance with Instructions in the delivery of Securities
to be held in escrow and will have no responsibility or liability for
any such Securities which are not returned promptly when due other
than to make proper request for such return;

(m) For spot or forward foreign exchange transactions to facilitate
security trading, receipt of income from Securities or related
transactions;

(n) For other proper purposes as may be specified in Instructions
issued by an officer of the Customer which shall include a statement
of the purpose for which the delivery or payment is to be made, the
amount of the payment or specific Securities to be delivered, the name
of the person or persons to whom delivery or payment is to be made,
and a certification that the purpose is a proper purpose under the
instruments governing the Customer; and

(o) Upon the termination of this Agreement as set forth in Section
14(i).

<PAGE>

Section 12. STANDARD OF CARE; LIABILITIES.

Add the following subsection (d) to Section 12:

(d) The Bank hereby warrants to the Customer that in its opinion,
after due inquiry, the established procedures to be followed by each
of its branches, each branch of a qualified U.S. bank, each eligible
foreign custodian and each eligible foreign securities depository
holding the Customer's Securities pursuant to this Agreement afford
protection for such Securities at least equal to that afforded by the
Bank's established procedures with respect to similar securities held
by the Bank and its securities depositories in New York.

Section 14. ACCESS TO RECORDS.

ADD THE FOLLOWING LANGUAGE TO THE END OF SECTION 14(c):

Upon reasonable request from the Customer, the Bank shall furnish the
Customer such reports (or portions thereof) of the Bank's system of
internal accounting controls applicable to the Bank's duties under
this Agreement. The Bank shall endeavor to obtain and furnish the
Customer with such similar reports as it may reasonably request with
respect to each Subcustodian and securities depository holding the
Customer's assets.

<PAGE>

GLOBAL CUSTODY AGREEMENT

WITH
-------------------------

DATE
-------------------------

DOMESTIC

SPECIAL TERMS AND CONDITIONS RIDER

DOMESTIC CORPORATE ACTIONS AND PROXIES

With respect to domestic U.S. and Canadian Securities (the latter if held in
DTC), the following provisions will apply rather than the provisions of Section
8 of the Agreement:

The Bank will send to the Customer or the Authorized Person for a
Custody Account, such proxies (signed in blank, if issued in the name
of the Bank's nominee or the nominee of a central depository) and
communications with respect to Securities in the Custody Account as
call for voting or relate to legal proceedings within a reasonable
time after sufficient copies are received by the Bank for forwarding
to its customers. In addition, the Bank will follow coupon payments,
redemptions, exchanges or similar matters with respect to Securities
in the Custody Account and advise the Customer or the Authorized
Person for such Account of rights issued, tender offers or any other
discretionary rights with respect to such Securities, in each case, of
which the Bank has received notice from the issuer of the Securities,
or as to which notice is published in publications routinely utilized
by the Bank for this purpose.

FEES

The fees referenced in Section 13 of this Agreement cover only domestic and
euro-dollar holdings. There will be no Schedule A to this Agreement, as there
are no foreign assets in the Accounts.

<PAGE>

EXHIBIT 11

ARTHUR ANDERSEN LLP

CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS

As independent public accountants, we hereby consent to the use of our reports
(and to all references to our Firm) included in or made a part of this
Registration Statement File No. 2-57609 for Hartford Stock Fund, Inc. on Form N-
1A.

ARTHUR ANDERSEN LLP

Hartford, CT
April 4, 1996

<PAGE>
HARTFORD BOND FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>

LONG-TERM BONDS -- 92.8%

FEDERAL AGENCIES MORTGAGE
PASS-THROUGHS -- 5.6%
Federal National Mortgage
Association
$ 4,226,243 6.000% due 08/01/08 -
10/01/09.................... $ 4,183,907
5,000,000 6.500% due 11/01/10......... 5,025,000
9,950,000 7.000% due 12/01/25......... 10,037,690
-------------
19,246,597
-------------
FEDERAL AGENCIES -- 3.1%
Federal National Mortgage
Association
1,000,000 5.800% due 12/10/03......... 994,312
604,622 6.000% due 04/01/09......... 598,528
3,000,000 6.480% due 12/01/05......... 3,059,062
5,000,000 8.200% due 03/10/16......... 6,037,110
-------------
10,689,012
-------------
U.S. GOVERNMENT SECURITIES --
29.4%
U.S. Treasury Bonds
12,400,000 8.125% due 08/15/19 -
08/15/21.................... 15,602,375
7,650,000 8.750% due 05/15/17......... 10,119,512
9,400,000 8.875% due 08/15/17......... 12,593,058
1,000,000 9.000% due 11/15/18......... 1,362,812
U.S. Treasury Notes
5,000,000 6.500% due 04/30/99 -
08/15/05.................... 5,197,185
20,550,000 6.875% due 02/28/97 -
07/31/99.................... 21,011,108
10,200,000 7.500% due 01/31/97 -
11/15/01.................... 10,601,682
8,000,000 8.750% due 10/15/97......... 8,475,000
12,000,000 10.750% due 02/15/03........ 15,660,000
-------------
100,622,732
-------------
BANKS -- 3.1%
Bank of New York
3,000,000 7.625% due 07/15/02......... 3,244,755
Chase Manhattan Corp.
3,000,000 7.750% due 11/01/99......... 3,197,640
Mellon Financial Co.
4,000,000 6.300% due 06/01/00......... 4,069,108
-------------
10,511,503
-------------
BEVERAGES -- 1.2%
Bacardi-Martini Finance
4,000,000 5.750% due 07/23/98......... 4,000,000
-------------
CONGLOMERATE -- 2.1%
Tenneco Inc.
6,850,000 8.000% due 11/15/99......... 7,330,671
-------------
FINANCIAL SERVICES -- 14.1%
Aristar Inc.
3,000,000 6.300% due 07/15/00......... 3,046,122
Associates Corp.
2,500,000 9.700% due 05/01/97......... 2,634,023
Donaldson Lufkin Jenrette
5,000,000 6.875% due 11/01/05......... 5,123,450
Duke Realty Investments
5,000,000 7.250% due 09/22/02......... 5,151,890
ERP Operating
2,500,000 6.625% due 12/22/97......... 2,506,202
Ford Motor Credit Company
3,000,000 7.750% due 11/15/02......... 3,272,955
General Motors Acceptance
Corp.
4,000,000 5.875% due 01/12/99......... 4,013,680

FINANCIAL SERVICES --
(CONTINUED)
Lehman Brothers
$ 3,000,000 10.000% due 05/15/99........ $ 3,350,703
Massachusetts Mutual Life
Insurance Company
5,000,000 7.625% due 11/15/23......... 5,234,750
Salomon Inc.
3,000,000 5.930% due 03/17/97......... 2,991,360
Salomon Inc.
3,000,000 6.940% due 09/15/97......... 3,035,550
Charles Schwab Medium Term
Note
3,000,000 6.630% due 08/04/98......... 3,055,470
Spieker Property Real Estate
Investments
5,000,000 6.650% due 12/15/00......... 4,995,400
-------------
48,411,555
-------------
FOREIGN GOVERNMENTS -- 10.3%
Abbey National First Capital
5,575,000 8.200% due 10/15/04......... 6,322,502
Ahmanson H.F. Co.
5,500,000 6.350% due 09/01/98......... 5,585,525
Banco Central Hispano
5,000,000 7.500% due 06/15/05......... 5,269,245
Bank of Montreal
3,000,000 10.000% due 09/01/98........ 3,319,080
KFW International Finance Inc.
5,000,000 7.000% due 03/01/13......... 5,346,975
Province of Manitoba Debenture
5,000,000 9.625% due 12/01/18......... 6,722,700
Skandinaviska Enskilda Banken
2,500,000 6.875% due 02/15/09......... 2,544,087
-------------
35,110,114
-------------
HEALTH CARE -- 0.8%
Columbia Healthcare
2,500,000 6.730% due 07/15/45......... 2,604,608
-------------
MEDIA -- 1.5%
News America Holdings Inc.
5,000,000 7.500% due 03/01/00......... 5,245,115
-------------
OIL & GAS -- 2.7%
Columbia Gas Systems Inc.
6,000,000 6.390% due 11/28/00......... 6,100,170
Union Oil Co. of California
Medium Term Note
2,500,000 9.375% due 02/15/11......... 3,171,175
-------------
9,271,345
-------------
PAPER CO. -- 0.6%
Georgia-Pacific Corp.
2,000,000 9.850% due 06/15/97......... 2,111,420
-------------
TECHNOLOGY -- 2.2%
ADT Operations
3,290,000 8.250% due 08/01/00......... 3,479,175
Motorola Inc.
3,100,000 8.400% due 08/15/31......... 3,912,922
-------------
7,392,097
-------------
TELECOMMUNICATIONS -- 3.6%
Cox Communications
5,000,000 6.500% due 11/15/02......... 5,089,320

</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

<PAGE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>

LONG-TERM BONDS -- (CONTINUED)

TELECOMMUNICATIONS -- (CONTINUED)
Tele-Communications, Inc.
$ 4,500,000 8.650% due 09/15/04......... $ 5,019,782

Time Warner Entertainment
2,000,000 8.375% due 03/15/23......... 2,166,242
-------------
12,275,344
-------------
UTILITIES -- 5.8%
Bell Telephone Co. of
Pennsylvania
3,000,000 8.350% due 12/15/30......... 3,802,584
Chesapeake & Potomac Telephone
1,500,000 8.300% due 08/01/31......... 1,840,581
Commonwealth Edison First
Mortgage
1,450,000 5.250% due 04/01/96......... 1,446,868
Commonwealth Edison
7,000,000 6.375% due 07/15/00......... 7,103,243
GTE Corp.
5,000,000 9.100% due 06/01/03......... 5,789,280
-------------
19,982,556
-------------
ASSET-BACKED BONDS -- 6.7%
Amex 92-1A
2,000,000 6.050% due 06/15/98......... 2,017,480
Discover 93-1
3,000,000 5.300% due 10/16/01......... 2,956,890
Discover 91-E
5,000,000 7.850% due 05/21/99......... 5,138,550
Oakwood 94-A B1
4,631,230 8.400% due 02/15/15......... 4,726,772
SCC 91-3 B
5,615,000 9.250% due 09/07/98......... 6,085,257
SCC 91-6 B
2,000,000 8.350% due 01/07/00......... 2,139,340
-------------
23,064,289
-------------
Total long-term bonds......... $ 317,868,958
-------------
-------------

SHORT-TERM SECURITIES -- 3.3%

REPURCHASE AGREEMENT
$11,382,000 Interest in $24,574,000 joint
repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $11,389,398;
(Collateralized by
$24,574,000 U.S. Treasury
Note 5.125% due 12/31/98)... $ 11,382,000
-------------
-------------

</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total long-term bonds........................ 92.8 % $317,868,958
Total short-term securities.................. 3.3 11,382,000
------ ------------
Total investment in securities
*(Identified cost $313,830,896)............ 96.1 329,250,958
Excess of cash and receivables over
liabilities................................ 3.9 13,243,989
------ ------------
Net assets (Applicable to $1.02826 per share
based on 333,082,054 shares outstanding)... 100.0% $342,494,947
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 333,082,054
shares............................................. $ 33,308,205
Capital surplus...................................... 304,781,775
Undistributed net realized (loss) on investments..... (11,015,095)
Unrealized appreciation of investments............... 15,420,062
------------
Net assets, applicable to shares outstanding......... $342,494,947
------------
------------
</TABLE>

* Aggregate cost for Federal income tax purposes.

79
<PAGE>
HARTFORD STOCK FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS -- 89.5%

COMMUNICATIONS EQUIPMENT --2.1%
*60,000 Cisco Systems Inc............. $ 4,477,500
*200,000 DSC Communications............ 7,375,000
285,000 Motorola Inc.................. 16,245,000
*250,000 3Com Corp..................... 11,656,250
---------------
39,753,750
---------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.1%
*100,000 Compaq Computer............... 4,800,000
320,000 International Business Machine
Corp........................ 29,360,000
180,000 Xerox......................... 24,660,000
---------------
58,820,000
---------------
CONSUMER DURABLES -- 0.9%
0.25 Chrysler Corp................. 14
200,000 Ford Motor Corp............... 5,800,000
225,000 General Motors Class E........ 11,700,000
---------------
17,500,014
---------------
CONSUMER NON-DURABLES -- 11.0%
275,000 Anheuser Busch Cos. Inc....... 18,390,625
230,000 Colgate Palmolive Co.......... 16,157,500
150,000 Duracell International Inc.... 7,762,500
350,000 General Mills Company......... 20,212,500
250,000 Kimberly Clark Corp........... 20,687,500
92,200 Estee Lauder Co.-Class A...... 3,215,475
470,000 Pepsico Inc................... 26,261,250
450,000 Philip Morris................. 40,725,000
360,000 Proctor and Gamble............ 29,880,000
707,000 Sara Lee Corp................. 22,535,625
---------------
205,827,975
---------------
CONSUMER SERVICES -- 0.9%
*169,000 Autotote...................... 297,863
*375,000 Circus Circus Enterprises..... 10,453,125
150,000 Service Corp.................. 6,600,000
---------------
17,350,988
---------------
ENERGY AND SERVICES -- 7.0%
375,000 Amoco Corporation............. 26,953,125
536,800 Burlington Resources.......... 21,069,400
500,000 Exxon......................... 40,062,500
79,300 Hong Kong Telecom Ltd.-Sp
ADR......................... 1,407,575
300,000 Schlumberger Ltd.............. 20,775,000
383,664 Total S.A. ADR................ 13,044,576
300,000 Unocal Corp................... 8,737,500
---------------
132,049,676
---------------
FINANCIAL SERVICES -- 14.7%
500,000 Allstate Corp................. 20,562,500
600,000 American Express Co........... 24,825,000
225,000 American International
Group....................... 20,812,500
110,000 Bank of New York Co........... 5,362,500
550,000 Citicorp...................... 36,987,500
82,500 Franklin Resources Inc........ 4,155,938
300,000 Greenpoint Financial Corp..... 8,025,000
250,000 Marsh and McLennan Cos.,
Inc......................... 22,187,500
450,000 Merrill Lynch & Co. Inc....... 22,950,000
250,000 J.P. Morgan................... 20,062,500
260,000 Nationsbank Corp.............. 18,102,500
575,000 Salomon Inc................... 20,412,500

FINANCIAL SERVICES --
(CONTINUED)
400,000 State Street Boston Corp...... $ 18,000,000
525,000 Travelers Group Inc........... 33,009,375
---------------
275,455,313
---------------
FOREIGN STOCKS-JAPAN -- 2.0%
200,000 Eisai Co. Ltd................. 3,499,952
200,000 Fuji Bank Ltd................. 4,408,779
300,000 Matsushita Electric Co........ 4,872,861
300,000 Nomura Securities............. 6,526,153
189,000 Sankyo........................ 4,239,389
200,000 Sanwa Bank Ltd................ 4,060,717
240,000 Takeda Chemical Industries
Ltd......................... 3,944,697
300,000 Toyota Motor Corp............. 6,352,122
---------------
37,904,670
---------------
HEALTH CARE -- 11.8%
825,000 Abbott Laboratories........... 34,443,750
*175,000 Alza Corp. Del................ 4,331,250
190,000 American Home Products
Corp........................ 18,430,000
250,000 Bristol-Myers Squibb
Company..................... 21,468,750
270,000 Johnson & Johnson............. 23,118,750
475,000 Pfizer, Inc................... 29,925,000
400,000 SmithKline Beecham PLC ADR
Unit........................ 22,200,000
775,000 US Healthcare Inc............. 36,037,500
320,000 Warner-Lambert Company........ 31,080,000
---------------
221,035,000
---------------
INDUSTRIAL MATERIALS -- 5.8%
240,000 Air Products & Chemical
Corp........................ 12,660,000
*400,000 Crown Cork & Seal............. 16,700,000
400,000 Dow Chemical.................. 28,150,000
230,000 Dupont EI De Nemours.......... 16,071,250
450,000 International Paper Co........ 17,043,750
700,000 Louisiana Pacific Corp........ 16,975,000
---------------
107,600,000
---------------
MANUFACTURING -- 4.4%
190,000 Boeing Company................ 14,891,250
800,000 General Electric.............. 57,600,000
305,000 Ingersoll-Rand Company........ 10,713,125
---------------
83,204,375
---------------
MEDIA & SERVICES -- 7.6%
220,000 Capital Cities/ABC Inc........ 27,142,500
100,000 Dun & Bradstreet Corp......... 6,475,000
450,000 Gannett Co., Inc.............. 27,618,750
613,750 Gaylord Entertainment Class
A........................... 17,031,562
450,000 Time Warner Inc............... 17,043,750
1,005,000 Viacom Inc-Class B............ 47,611,875
---------------
142,923,437
---------------
REAL ESTATE -- 0.9%
400,000 General Growth Properties..... 8,300,000
350,000 Spieker Properties............ 8,793,750
---------------
17,093,750
---------------
RETAIL -- 7.7%
450,000 Albertson's Inc............... 14,793,750
500,000 Home Depot Inc................ 23,937,500
360,000 May Department Stores Co...... 15,210,000
950,000 McDonalds Corp................ 42,868,750
*325,000 Toys R Us..................... 7,068,750

</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

80
<PAGE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)

RETAIL -- (CONTINUED)
1,820,000 Wal-Mart...................... $ 40,722,500
---------------
144,601,250
---------------
SOFTWARE & SERVICES -- 2.5%
165,000 Computer Sciences Corp........ 11,591,250
235,000 First Data Corp............... 15,715,624
*180,000 Microsoft Corp................ 15,795,000
*109,400 Sybase Inc.................... 3,938,400
---------------
47,040,274
---------------
TRANSPORTATION -- 2.8%
*250,000 AMR........................... 18,562,500
725,000 Southwest Airlines............ 16,856,250
255,000 Union Pacific Corp............ 16,830,000
---------------
52,248,750
---------------
UTILITY -- 4.3%
680,000 AT&T Corp..................... 44,030,000
950,000 MCI Communications............ 24,818,750
52,250 Portugal Telecom S.A. ADR..... 992,750
250,000 Texas Utilities............... 10,281,250
---------------
80,122,750
---------------
Total common stocks........... $ 1,680,531,972
---------------
---------------
PREFERRED STOCKS -- 2.8%
CONSUMER NON-DURABLES -- 1.7%
5,000,000 RJR Nabisco Perferred Equity
Redemptive Cumulative
Stock....................... 31,875,000
---------------
ENERGY -- 0.6%
191,000 Occidental Petroleum 144A..... 10,409,500
---------------
REAL ESTATE -- 0.5%
347,500 Security Pacific Trust........ 8,513,750
---------------
Total preferred stocks........ $ 50,798,250
---------------
---------------
PRINCIPAL
AMOUNT
- -----------
CONVERTIBLE CORPORATE BONDS -- 0.7%
BUSINESS SERVICES -- 0.3%
Empresas ICA Sociedad
$12,150,000 5.000% due 03/15/04......... 6,500,250
---------------
FINANCIAL SERVICES -- 0.2%
MBL International Finance
3,000,000 3.000% due 11/30/02......... 3,525,000
---------------
PRIVATE PLACEMENT -- 0.2%
Autotote Corporation
16,000,000 4.950% due 08/20/01......... 3,765,986
---------------
Total convertible corporate
bonds....................... $ 13,791,236
---------------
---------------

SHORT-TERM SECURITIES -- 6.5%

$87,770,000 Repurchase Agreement dated
12/29/95 with Aubrey Lanston
5.900% due 01/02/96;
maturity amount $87,827,538;
(Collateralized by
$61,260,000 U.S. Treasury
Notes 5.875% to 6.250% due
08/15/98 to 08/31/00 and by
$26,450,000 U.S. Treasury
Bill 4.980% due 05/30/96)... $ 87,770,000
35,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $35,024,111;
(Collateralized by
$40,490,000 Federal National
Mortgage Association 9.000%
due 03/01/25)............... 35,000,000
---------------
Total short-term securities... $ 122,770,000
---------------
---------------
</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 89.5 % $1,680,531,972
Total preferred stocks....................... 2.8 50,798,250
Total convertible corporate bonds............ 0.7 13,791,236
Total short-term securities.................. 6.5 122,770,000
------ --------------
Total investment in securities
**(Identified cost $1,528,375,612)......... 99.5 1,867,891,458
Excess of cash and receivables over
liabilities................................ 0.5 8,992,156
------ --------------
Net assets (Applicable to $3.52702 per share
based on 532,144,279 shares outstanding)... 100.0% $1,876,883,614
------ --------------
------ --------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 532,144,279
shares............................................. $ 53,214,428
Capital surplus...................................... 1,403,332,247
Undistributed net realized gain on investments....... 80,821,093
Unrealized appreciation of investments............... 339,515,846
--------------
Net assets, applicable to shares outstanding......... $1,876,883,614
--------------
--------------
</TABLE>

* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.

<PAGE>
HVA MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
COMMERCIAL PAPER -- 78.6%

Abbey National North America
$ 5,000,000 5.570% due 03/06/96......... $ 4,950,489
5,000,000 5.715% due 01/02/96......... 5,000,000
Air Products & Chemicals
5,000,000 5.385% due 06/21/96......... 4,872,106
American Honda Finance
5,000,000 5.530% due 02/02/96......... 4,975,760
ANZ (Delaware) Inc.
10,000,000 5.670% due 01/05/96 -
02/13/96.................... 9,964,563
Aristar Inc
9,500,000 5.750% due 01/08/96 -
01/16/96.................... 9,485,146
Bass Finance C.I. Ltd.
5,000,000 5.680% due 02/16/96......... 4,964,500
Bausch & Lomb Inc.
5,000,000 5.700% due 01/26/96......... 4,981,000
5,000,000 5.710% due 01/19/96......... 4,986,518
Colgate-Palmolive
5,000,000 5.620% due 03/08/96......... 4,948,483
Corporate Asset Funding
Company
10,000,000 5.650% due 02/16/96 -
02/23/96.................... 9,923,882
Dean Witter, Discover Card
9,000,000 5.700% due 01/08/96 -
01/31/96.................... 8,973,242
Eaton Corp.
5,000,000 5.500% due 05/30/96......... 4,886,181
Electronic Data Systems
10,000,000 5.580% due 03/15/96......... 9,886,850
Finova Capital
5,000,000 5.800% due 03/07/96......... 4,947,639
5,000,000 5.940% due 01/26/96......... 4,980,200
General Motors Acceptance
Corp.
5,000,000 5.610% due 03/06/96......... 4,950,133
5,500,000 5.700% due 02/16/96......... 5,460,813
General Signal Corp.
5,000,000 5.800% due 02/22/96......... 4,958,917
Goldman Sachs Group Limited
Partnership
5,000,000 5.540% due 04/04/96......... 4,928,442
Hanson Finance (UK)
5,000,000 5.640% due 02/28/96......... 4,955,350
5,000,000 5.650% due 02/21/96......... 4,960,764
Merrill Lynch & Co.
10,000,000 5.730% due 01/31/96......... 9,953,842
National Rural Utilities
5,000,000 5.640% due 02/14/96......... 4,966,317
5,000,000 5.650% due 02/20/96......... 4,961,549
NYNEX Corp.
5,000,000 5.720% due 02/07/96......... 4,971,400
5,000,000 5.810% due 02/05/96......... 4,972,564
Pacific Dunlop Holding
5,000,000 5.680% due 02/29/96......... 4,954,244
RTZ America Inc.
10,000,000 5.700% due 01/18/96 -
01/23/96.................... 9,970,708
A H Robins
5,000,000 5.470% due 04/12/96......... 4,923,268
Sharp Electronics Corp.
5,000,000 5.660% due 01/26/96......... 4,981,133
5,000,000 5.710% due 02/09/96......... 4,969,864
Sherwood Medical
5,000,000 5.700% due 02/29/96......... 4,954,083
Spintab
5,000,000 5.570% due 03/18/96......... 4,941,206
5,000,000 5.660% due 01/19/96......... 4,986,636
Svenska Handelsbanken Inc.
5,000,000 5.700% due 02/05/96......... 4,973,083
5,000,000 5.720% due 01/26/96......... 4,980,932

Tambrands Inc.
$ 5,000,000 5.590% due 04/26/96......... $ 4,910,715
5,000,000 5.600% due 04/08/96......... 4,924,556
Transamerica Finance Co.
5,000,000 5.500% due 04/15/96......... 4,920,556
5,000,000 5.700% due 01/10/96......... 4,993,667
Westpac Capital Corp.
5,000,000 5.450% due 05/13/96......... 4,900,082
5,000,000 5.500% due 05/13/96......... 4,899,166
Whirlpool Corp.
10,000,000 5.760% due 01/17/96......... 9,976,000
Zeneca, Inc. D/N
10,000,000 5.720% due 01/11/96......... 9,985,700
-------------
Total commercial paper........ $ 266,912,249
-------------
-------------
U.S. TREASURY NOTES -- 1.4%
U.S. Treasury Notes
5,000,000 6.250% due 08/31/96......... 5,010,394
-------------
REPURCHASE AGREEMENT -- 16.3%
55,210,000 Repurchase agreement dated
12/29/95 with Salomon
Brothers 5.900% due
01/02/96; maturity amount
$55,246,193; (Collateralized
by $57,575,000 U.S. Treasury
Bills 4.930% due
06/06/96)................... 55,210,000
-------------
Total short-term securities... $ 327,132,643
-------------
-------------
NON-CONVERTIBLE CORPORATE NOTES -- 10.6%
American Honda Finance
$ 5,000,000 5.875% due 03/01/96......... 5,000,000
Associate Corp. of America
5,500,000 4.940% due 04/02/96......... 5,486,295
Avery Dennison Medium Term
Note
4,000,000 8.400% due 04/15/96......... 4,028,598
Bell Atlantic
5,000,000 5.500% due 06/13/96......... 4,988,740
General Electric Capital
5,000,000 5.970% due 08/21/96......... 4,999,160
Grand Metropolitan Investments
6,000,000 8.125% due 08/15/96......... 6,074,618
U.S. Leasing International
Inc.
5,500,000 8.750% due 05/01/96......... 5,549,399
-------------
Total non-convertible
corporate notes............. $ 36,126,810
-------------
-------------
</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total short-term securities.................. 96.3 % $327,132,643
Total non-convertible corporate notes........ 10.6 36,126,810
------ ------------
Total investment in securities
*(Identified cost $363,259,453)............ 106.9 363,259,453
Excess of liabilities over cash and
receivables................................ (6.9) (23,550,870)
------ ------------
Net assets (Applicable to $1.00 per share
based on 339,708,583 shares outstanding)... 100.0% $339,708,583
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share;
authorized 800,000,000 shares; outstanding
339,708,583 shares......................... $ 33,970,858
Capital surplus.............................. 305,737,725
------------
Net assets, applicable to shares outstanding......... $339,708,583
------------

------------
</TABLE>

* Aggregate cost for Federal income tax purposes.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

82
<PAGE>
HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 58.6%

COMMUNICATION EQUIPMENT --
1.1%
*70,000 Cisco Systems Inc............. $ 5,223,750
*200,000 DSC Communications............ 7,375,000
395,000 Motorola Inc.................. 22,515,000
*250,000 3 Com Corp.................... 11,656,250
--------------
46,770,000
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 2.0%
*125,000 Compaq Computer............... 6,000,000
440,000 International Business Machine
Corp........................ 40,370,000
280,000 Xerox......................... 38,360,000
--------------
84,730,000
--------------
CONSUMER DURABLES -- 0.6%
0.25 Chrysler Corp................. 14
500,000 Ford Motor Corp............... 14,500,017
250,000 General Motors Class E........ 13,000,000
--------------
27,500,031
--------------
CONSUMER NON-DURABLES -- 7.3%
405,000 Anheuser Busch Cos. Inc....... 27,084,375
320,000 Colgate Palmolive Co.......... 22,480,000
250,000 Duracell International Inc.... 12,937,500
500,000 General Mills Company......... 28,875,000
400,000 Kimberly Clark Corp........... 33,100,000
109,400 Estee Lauder Co.-Class A...... 3,815,325
710,000 Pepsico Inc................... 39,671,250
650,000 Philip Morris................. 58,825,000
580,000 Proctor and Gamble............ 48,140,000
1,218,000 Sara Lee Corp................. 38,823,750
--------------
313,752,200
--------------
CONSUMER SERVICES -- 0.7%
*253,500 Autotote...................... 446,794
*700,000 Circus Circus Enterprises..... 19,512,500
200,000 Service Corp. International... 8,800,000
--------------
28,759,294
--------------
ENERGY AND SERVICES -- 4.6%
575,000 Amoco Corporation............. 41,328,125
684,200 Burlington Resources.......... 26,854,850
765,000 Exxon......................... 61,295,625
79,400 Hong Kong Telecom Ltd......... 1,409,350
500,000 Schlumberger Ltd.............. 34,625,000
558,664 Total S.A. ADR................ 18,994,576
375,000 Unocal Corp................... 10,921,875
--------------
195,429,401
--------------
FINANCIAL SERVICES -- 9.5%
900,000 Allstate Corp................. 37,012,500
850,000 American Express Co........... 35,168,750
300,000 American International
Group....................... 27,750,000
260,000 Bank of New York Co........... 12,675,000
800,000 Citicorp...................... 53,800,000
67,500 Franklin Resources Inc........ 3,400,313
300,000 Greenpoint Financial.......... 8,025,000
400,000 Marsh and McLennan Cos.,
Inc......................... 35,500,000
600,000 Merrill Lynch & Co. Inc....... 30,600,000
440,000 J.P. Morgan................... 35,310,000
410,000 Nationsbank Corp.............. 28,546,250
775,000 Salomon Inc................... 27,512,500

FINANCIAL SERVICES -- (CONTINUED)
450,000 State Street Boston Corp...... $ 20,250,000
875,000 Travelers Group Inc........... 55,015,625
--------------
410,565,938
--------------
FOREIGN STOCKS - JAPAN -- 1.3%
300,000 Eisai Co. Ltd................. 5,249,928
300,000 Fuji Bank Ltd................. 6,613,168
450,000 Matsushita Electric Co........ 7,309,291
450,000 Nomura Securities............. 9,789,230
285,000 Sankyo........................ 6,392,729
300,000 Sanwa Bank Ltd................ 6,091,076
280,000 Takeda Chem Inds Ltd.......... 4,602,147
450,000 Toyota Motor Corp............. 9,528,183
--------------
55,575,752
--------------
HEALTH CARE -- 7.6%
1,175,000 Abbott Laboratories........... 49,056,250
*200,000 Alza Corp. Del................ 4,950,000
250,000 American Home Products
Corp........................ 24,250,000
360,000 Bristol-Myers Squibb
Company..................... 30,915,000
440,000 Johnson & Johnson............. 37,675,000
650,000 Pfizer, Inc................... 40,950,000
625,000 SmithKline Beecham PLC ADR
Unit........................ 34,687,500
1,150,000 US Healthcare Inc............. 53,475,000
480,000 Warner-Lambert Company........ 46,620,000
--------------
322,578,750
--------------
INDUSTRIAL MATERIALS -- 3.8%
360,000 Air Products & Chemical
Corp........................ 18,990,000
*550,000 Crown Cork & Seal............. 22,962,500
590,000 Dow Chemical.................. 41,521,250
400,000 Dupont EI De Nemours.......... 27,950,000
710,000 International Paper Co........ 26,891,250
1,000,000 Louisiana Pacific Corp........ 24,250,000
--------------
162,565,000
--------------
MANUFACTURING -- 2.9%
235,000 Boeing Company................ 18,418,125
1,200,000 General Electric.............. 86,400,000
525,000 Ingersoll-Rand Company........ 18,440,625
--------------
123,258,750
--------------
MEDIA & SERVICES -- 5.0%
340,000 Capital Cities/ABC Inc........ 41,947,500
100,000 Dun & Bradstreet Corp......... 6,475,000
685,000 Gannett Co., Inc.............. 42,041,875
886,750 Gaylord Entertainment Class
A........................... 24,607,312
700,000 Time Warner Inc............... 26,512,500
1,500,000 Viacom Inc.-Class B........... 71,062,500
--------------
212,646,687
--------------
REAL ESTATE -- 0.6%
600,000 General Growth Properties..... 12,450,000
500,000 Spieker Properties............ 12,562,500
--------------
25,012,500
--------------
RETAIL -- 5.2%
1,000,000 Albertson's Inc............... 32,875,000
700,000 Home Depot Inc................ 33,512,500
600,000 May Department Stores Co...... 25,350,000
1,375,000 McDonalds Corp................ 62,046,875
*400,000 Toys R Us..................... 8,700,000
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

83
<PAGE>

HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
2,600,000 Wal-Mart...................... $ 58,175,000
--------------
220,659,375
--------------
SOFTWARE & SERVICES -- 1.7%
285,000 Computer Sciences Corp........ 20,021,250
385,000 First Data Corp............... 25,746,875
*250,000 Microsoft Corp................ 21,937,500
*109,300 Sybase Inc.................... 3,934,800
--------------
71,640,425
--------------
TRANSPORTATION -- 1.9%
*390,000 AMR........................... 28,957,500
1,000,000 Southwest Airlines............ 23,250,000
445,000 Union Pacific Corp............ 29,370,000
--------------
81,577,500
--------------
UTILITIES -- 2.8%
980,000 AT&T Corp..................... 63,455,000
1,375,000 MCI Communications............ 35,921,875
80,500 Portugal Telecom S.A.......... 1,529,500
400,000 Texas Utilities............... 16,450,000
--------------
117,356,375
--------------
Total common stocks........... $2,500,377,978
--------------
--------------
PREFERRED STOCKS -- 1.9%
CONSUMER NON-DURABLES -- 1.0%
7,000,000 RJR Nabisco Preferred Equity
Redemptive Cumulative
Stock....................... 44,625,000
--------------
ENERGY -- 0.5%
397,200 Occidental Petroleum 144A..... 21,647,400
--------------
REAL ESTATE -- 0.4%
591,900 Security Pacific Trust........ 14,501,550
--------------
Total preferred stocks........ $ 80,773,950
--------------
--------------

PRINCIPAL
AMOUNT
- -----------
U.S. TREASURIES & AGENCIES -- 28.5%
U.S. TREASURY BONDS -- 6.4%
$100,000,000 7.250% due 05/15/16......... 114,187,500
135,000,000 7.500% due 11/15/16......... 158,371,875
--------------
272,559,375
--------------
U.S. TREASURY NOTES -- 19.6%
150,000,000 6.250% due 05/31/00......... 155,109,300
200,000,000 6.375% due 08/15/02......... 210,125,000
100,000,000 6.500% due 08/15/97......... 102,000,000
225,000,000 7.500% due 12/31/99 -
02/15/05.................... 249,632,725
110,000,000 7.750% due 12/31/99......... 119,418,750
--------------
836,285,775
--------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 2.3%
94,549,939 8.000% due 03/15/23 -
04/15/25.................... 98,485,139
--------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 0.1%
572,662 6.000% due 02/01/20......... 565,685
2,445,379 8.750% due 08/25/21......... 2,565,618

U.S. TREASURIES & AGENCIES -- (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (CONTINUED)

$ 2,069,997 9.000% due 09/25/00......... $ 2,072,791
--------------
5,204,094
--------------
Total U.S. treasuries &
agencies.................... $1,212,534,383
--------------
--------------
CONVERTIBLE CORPORATE BONDS -- 0.4%
BUSINESS SERVICES -- 0.2%
Empresas ICA Sociedad
15,400,000 5.000% due 03/15/04......... 8,239,000
--------------
FINANCIAL SERVICES -- 0.1%
MBL International Finance
4,500,000 3.000% due 11/30/02......... 5,287,500
--------------
PRIVATE PLACEMENTS -- 0.1%
Autotote Corporation
24,000,000 4.950% due 08/20/01......... 5,648,978
--------------
Total convertible corporate
bonds....................... $ 19,175,478
--------------
--------------
NON-CONVERTIBLE CORPORATE BONDS -- 5.9%
ASSET-BACKED -- 0.1%
Discover Card 92-A
2,083,333 5.500% due 05/16/98......... 2,079,417
General Motors Acceptance
Corp. 92-D Grantor Trust
230,652 5.550% due 05/15/97......... 230,232
--------------
2,309,649
--------------
FEDERAL AGENCIES -- 0.1%
Resolution Trust Corp. 91-6 E
1,307,875 11.626% due 05/25/24........ 1,377,840
--------------
FINANCIAL SERVICES -- 4.3%
Bank of Boston Corp.
10,000,000 6.625% due 02/01/04......... 10,167,920
CIT Group Holdings
15,000,000 6.750% due 04/30/98......... 15,394,365
Chemical Banking Corp.
10,000,000 8.500% due 02/15/02......... 11,212,490
First Interstate Bank
12,000,000 9.000% due 11/15/04......... 13,198,884
First National Bank of Boston
5,000,000 8.000% due 09/15/04......... 5,556,390
Ford Motor Credit Company
10,000,000 5.625% due 12/15/98......... 9,987,440
General Motors Acceptance
Corp.
15,000,000 5.625% due 02/01/99......... 14,958,750
Great Western Financial
10,000,000 8.625% due 12/01/98......... 10,662,730
Home Savings America
15,000,000 6.000% due 11/01/00......... 14,984,550
London Insurance Group
15,000,000 6.875% due 09/15/05......... 15,512,145
Merrill Lynch Mortgage
Investors
251,918 6.850% due 04/15/12......... 251,780
Mount Sinai Med MBIA
20,000,000 6.000% due 07/01/03......... 19,775,000
National Bank of Detroit
5,000,000 8.250% due 11/01/24......... 5,855,075
Society National Bank
15,000,000 6.500% due 04/25/97......... 15,189,150

</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

84
<PAGE>

<TABLE>

PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>

NON-CONVERTIBLE CORPORATE BONDS -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
Travelers Group 144A
$10,000,000 6.250% due 12/01/05......... $ 9,981,950
World Savings & Loan
Association
12,000,000 7.625% due 02/18/97......... 12,278,640
--------------
184,967,259
--------------
FOREIGN GOVERNMENT --
THAILAND -- 0.2%
Thailand Kingdom
10,000,000 5.880% due 09/30/00......... 9,962,100
--------------
INDUSTRIAL -- 0.7%
Hertz Corp.
10,000,000 6.000% due 02/01/01......... 9,992,340
Southern California Gas Co.
10,000,000 5.750% due 11/15/03......... 9,719,930
Zeneca Group PLC
10,000,000 6.300% due 06/15/03......... 10,162,360
--------------
29,874,630
--------------
RETAIL -- 0.2%
JC Penney
9,500,000 6.000% due 05/01/06......... 9,305,136
--------------
UTILITY -- 0.3%
Pacific Gas & Electric
11,000,000 7.875% due 03/01/02......... 11,973,951
--------------
Total non-covertible corporate
bonds....................... $ 249,770,565
--------------
--------------
PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 3.9%
$85,050,000 Repurchase Agreement dated
12/29/95 with Aubrey Lanston
5.875% due 01/02/96;
maturity amount $85,105,519;
(Collateralized by
$89,345,000 U.S. Treasury
Bills 4.990% due
07/25/96)................... 85,050,000

SHORT-TERM SECURITIES -- (CONTINUED)
$81,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $81,055,800;
(Collateralized by
$91,092,000 Federal National
Mortgage Association 9.000%
due 03/01/25)............... $ 81,000,000
--------------
Total short-term securities... 166,050,000
--------------
--------------

</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 58.6% $2,500,377,978
Total preferred stocks....................... 1.9 80,773,950
Total U.S. treasuries & agencies............. 28.5 1,212,534,383
Total convertible corporate bonds............ 0.4 19,175,478
Total non-convertible corporate bonds........ 5.9 249,770,565
Total short-term securities.................. 3.9 166,050,000
------ --------------
Total investment in securities
**(Identified cost $3,637,244,031)......... 99.2 4,228,682,354
Excess cash and receivables over
liabilities................................ 0.8 34,086,395
------ --------------
Net assets (Applicable to $1.95844 per share
based on 2,176,614,093 shares
outstanding)............................... 100.0% $4,262,768,749
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
3,000,000,000 shares; outstanding 2,176,614,093
shares............................................. 217,661,408
Capital surplus...................................... 3,356,384,899
Undistributed net realized gain on investments....... 97,284,119
Unrealized appreciation of investments............... 591,438,323
--------------
Net assets, applicable to shares outstanding......... $4,262,768,749
--------------

--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.

85
<PAGE>
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST AND
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
U.S. GOVERNMENT & GOVERNMENT
AGENCIES -- 85.5%
Federal Farm Credit Bank
$ 500,000 5.430% due 03/20/96......... $ 494,118
1,000,000 5.450% due 03/11/96......... 989,554
500,000 5.560% due 02/01/96......... 497,683
500,000 5.570% due 01/09/96......... 499,458
Federal Home Loan Banks
500,000 5.430% due 03/12/96......... 494,721
500,000 5.500% due 02/28/96......... 495,646
1,500,000 5.550% due 02/29/96 -
03/22/96.................... 1,483,195
500,000 5.570% due 01/25/96......... 498,221
235,000 5.600% due 01/02/96......... 235,000
Federal National Mortgage
Association
500,000 5.280% due 04/04/96......... 493,180
450,000 5.580% due 02/09/96......... 447,350
1,000,000 5.670% due 01/19/96......... 997,323
U.S. Treasury Bills
1,000,000 5.250% due 05/02/96......... 982,354
-------------
8,607,803
-------------
REPURCHASE AGREEMENT -- 12.0%
1,208,000 Interest in $24,574,000 joint
repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $1,208,785;
(Collateralized by
$24,574,000 U.S. Treasury
Note 5.125% due 12/31/98) 1,208,000
-------------
Total short-term securities... $ 9,815,803
-------------
-------------
</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total investment in short-term securities
*(Identified cost $9,815,803).............. 97.5% $ 9,815,803
Excess of cash and receivables over
liabilities................................ 2.5 254,464
------ ------------
Net assets (Applicable to $1.00 per share
based on 10,070,267 shares outstanding).... 100.0% $ 10,070,267
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Common stock, par value $.10 per share; authorized
100,000,000 shares; outstanding 10,070,267
shares............................................. $ 1,007,027
Capital surplus...................................... 9,063,240
------------
Net assets, applicable to shares outstanding......... $ 10,070,267
------------
------------
</TABLE>
* Aggregate cost for Federal income tax purposes.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

86
<PAGE>
HARTFORD CAPITAL APPRECIATION FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 84.6%

BUSINESS SERVICES -- 1.9%
*165,000 Catalytica Inc................ $ 721,875
400,000 Ionics Inc.................... 17,400,000
200,000 Manpower Inc.................. 5,625,000
149,000 Pittston Services Group....... 4,674,875
320,300 Tetra Technologies............ 5,565,213
250,000 WMX Technologies Inc.......... 7,468,750
--------------
41,455,713
--------------
COMMUNICATION EQUIPMENT --
4.4%
465,000 Bay Networks.................. 19,123,125
*150,000 DSC Communications............ 5,531,250
510,000 General Instrument............ 11,921,250
240,000 Globalstar Telecom............ 9,060,000
185,000 Northern Telecom Ltd.......... 7,955,000
*500,000 Oak Industries Inc............ 9,375,000
*280,000 Picturetel Corp............... 12,075,000
*415,000 3 Com Corp.................... 19,349,375
--------------
94,390,000
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.6%
250,000 Danka Business Systems PLC.... 9,250,000
*190,000 Digital Equipment Corp........ 12,183,750
480,600 Plaintree Systems Inc......... 2,883,600
645,000 Sensormatic Electronic........ 11,206,875
495,000 Stratus Computer.............. 17,139,375
510,000 Symbol Technologies........... 20,145,000
200,000 3d Systems Corp............... 4,750,000
--------------
77,558,600
--------------
CONSUMER DURABLES -- 1.0%
180,570 Chrysler Corp................. 9,999,064
395,000 International Imaging
Materials................... 9,973,750
230,000 Lojack Corporation............ 2,558,750
--------------
22,531,564
--------------
CONSUMER NON-DURABLES -- 2.4%
290,800 Baesa ADR..................... 5,997,750
215,000 Duracraft Corp................ 5,401,875
570,000 Fort Howard Corp.............. 12,825,000
700,000 Interstate Bakeries........... 15,662,500
300,000 Odwalla Inc................... 4,950,000
280,000 Universal Corp................ 6,825,000
--------------
51,662,125
--------------
ELECTRONICS -- 4.7%
360,000 Augat Inc..................... 6,165,000
*310,000 Cirrus Logic Inc.............. 6,122,500
620,000 Cognex Corp................... 21,545,000
300,000 Credence Systems Corp......... 6,862,500
*400,000 Cyrix Corp.................... 9,200,000
468,750 Molex Inc..................... 14,355,469
555,000 Philips NV ADR................ 19,910,625
220,000 Planar Systems Inc............ 4,207,500
410,000 Silicon Valley Group.......... 10,352,500
115,000 Vishay Intertechnology........ 3,622,500
--------------
102,343,594
--------------
ENERGY & SERVICES -- 6.0%
321,124 Coflexip ADR.................. 6,061,215
799,800 Diamond Offshore.............. 26,993,250
350,000 Ensco International Inc....... 7,262,500

ENERGY & SERVICES -- (CONTINUED)
$ 336,400 Energy Ventures............... $ 8,494,100
300,000 Input Output Inc.............. 17,325,000
300,000 Noble Affiliates Inc.......... 8,962,500
297,000 Pogo Producing Company........ 8,390,250
*586,000 Rowan Cos..................... 5,786,750
250,000 Seagull Energy................ 5,562,500
300,000 USX-Marathon Group............ 5,850,000
*300,000 Varco International........... 3,600,000
300,000 Vastar Resources Inc.......... 9,525,000
720,000 YPF S.A. Sponsored ADR........ 15,570,000
--------------
129,383,065
--------------
FINANCIAL SERVICES -- 11.0%
400,000 Ace Ltd....................... 15,900,000
431,000 Allstate Corp................. 17,724,875
153,400 Ambac Inc..................... 7,190,625
255,000 Charter One Financial......... 7,809,375
150,000 Chubb Corp.................... 14,512,500
700,000 Dime Bancorp Inc.............. 8,137,500
200,000 First Bank System Inc......... 9,925,000
650,000 Greenpoint Financial Corp..... 17,387,500
392,700 Imperial Credit Industries.... 8,541,225
420,000 Legg Mason Inc................ 11,550,000
200,070 Long Island Bancorp........... 5,276,846
442,300 Morgan Stanley Group.......... 35,660,438
600,000 North American Mortgage
Company..................... 12,750,000
700,000 Peoples Bank.................. 13,300,000
60,000 Pioneer Group Inc............. 1,635,000
376,100 Prepaid Legal Services........ 3,902,037
273,400 Prudential Reinsurance
Hldgs....................... 6,390,725
424,400 Transatlantic Holding Inc..... 31,140,350
300,000 Washington Mutual............. 8,662,500
--------------
237,396,496
--------------
FOREIGN SECURITIES -- 1.5%
300,000 Talisman Energy............... 6,073,653
229,050 Transocean As................. 3,955,990
209,902 Hafslund Nyco A-free.......... 5,479,303
409,300 Usinor Sacilor................ 5,349,290
700,000 Eisai Co. Ltd................. 12,249,832
--------------
33,108,068
--------------
HEALTHCARE -- 12.5%
290,000 Alpharma Inc.--Class A........ 7,576,250
*275,000 Apria Healthcare.............. 7,768,750
750,000 Bergen Brunswig Corp. Class
A........................... 18,656,250
600,000 Beverly Enterprises........... 6,375,000
*1,050,000 Biomet........................ 18,768,750
328,100 Datascope..................... 7,874,400
145,000 Genetics Institute............ 7,757,500
*348,750 Grancare Inc.................. 5,056,875
*450,000 Haemonetics................... 7,987,500
119,458 Hafslund Nycomed--Class B
ADR......................... 3,135,772
390,500 Idx Systems Corp.............. 13,569,875
150,000 Immunex....................... 2,475,000
369,700 Isolyser Company Inc.......... 5,175,800
391,700 Kinetic Concepts Inc.......... 4,700,400
350,000 Loewen Group Inc.............. 8,859,375
625,000 Magellan Health Services
Inc......................... 15,000,000
440,000 Medisense..................... 13,915,000
900,000 Perrigo....................... 10,687,500
799,600 Rhone-Poulenc SA.............. 17,091,450
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

87
<PAGE>
HARTFORD CAPITAL APPRECIATION FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
HEALTHCARE -- (CONTINUED)
511,000 Rhone-Poulenc Rorer........... $ 27,210,750
400,000 Sola International Inc........ 10,100,000
445,000 Value Health Inc.............. 12,237,500
400,000 Vencor Inc.................... 13,000,000
*160,000 Vivus......................... 5,000,000
300,000 Zeneca Group ADR.............. 17,512,500
--------------
267,492,197
--------------
INDUSTRIAL MATERIAL -- 7.7%
423,000 Abitibi Price Inc............. 6,133,500
500,000 Alcan Aluminum Ltd............ 15,562,500
1,400,000 Algoma Steel Inc.............. 5,250,000
305,000 Beazer Homes USA Inc.......... 6,290,625
350,000 British Steel PLC-ADR......... 8,968,750
125,900 Commonwealth Aluminum......... 1,951,450
314,100 Georgia-Pacific Corp.......... 21,555,112
270,000 Morton International.......... 9,686,250
350,000 Nova Corp..................... 2,800,000
280,000 Owens Corning Fiberglass
Corp........................ 12,565,000
125,000 Phelps Dodge Corp............. 7,781,250
975,800 Precision Castparts Corp...... 38,788,050
1,480,000 Repap Enterprises............. 6,567,500
287,500 Southern Energy Homes Inc..... 5,031,250
600,000 Uniroyal Chemical............. 4,950,000
500,000 Wellman Inc................... 11,375,000
--------------
165,256,237
--------------
MANUFACTURING -- 4.1%
265,000 Boeing Company................ 20,769,375
*137,600 MSC Industrial Direct Class
A........................... 3,784,000
400,000 Measurex Corp................. 11,300,000
305,000 Northrop Grumman Corp......... 19,520,000
84,800 SPS Technologies Inc.......... 4,526,200
300,000 Wabash National Corp.......... 6,675,000
302,000 Watkins-Johnson Company....... 13,212,500
200,000 York International Corp....... 9,400,000
--------------
89,187,075
--------------
MEDIA & SERVICES -- 4.5%
75,000 Comcast UK Cable.............. 937,500
150,000 Lodgenet Entertainment
Corp........................ 1,425,000
891,700 Mobil Media Corp.............. 19,840,325
200,000 Rogers Cantel Mobile
Communications.............. 5,300,000
470,000 Royal Caribbean............... 10,340,000
*201,400 SFX Broadcasting Inc Class
A........................... 6,092,350
*1,120,000 Tele-Communications,
Inc.--Class A............... 22,260,000
469,999 Viacom Inc--Class B........... 22,266,203
*292,500 Young Broadcasting............ 8,263,125
--------------
96,724,503
--------------
REAL ESTATE -- 1.3%
300,000 Avalon Properties Inc......... 6,450,000
246,500 Felcor Suite Hotels Inc....... 6,840,375
200,000 Liberty Property Trust........ 4,150,000
130,000 Oasis Residential............. 2,957,500
175,000 Saul Centers Inc.............. 2,384,375
150,000 Starwood Lodging Trust........ 4,462,500
--------------
27,244,750
--------------
RETAIL -- 7.8%
300,000 Bed & Bath Beyond Inc......... 11,643,750
655,000 Cheesecake Factory............ 14,082,500

RETAIL -- (CONTINUED)
336,900 Eckerd Corp................... $ 15,034,163
435,000 Federated Department Store.... 11,962,500
200,000 Fila Holding SPA.............. 9,100,000
355,000 The Gap, Inc.................. 14,910,000
*217,300 Good Guys Inc................. 1,955,700
505,000 Gymboree Corp................. 10,415,625
240,000 Hollywood Entertainment
Corp........................ 2,010,000
671,700 Landry's Seafood
Restaurants................. 11,460,881
345,000 Mercantile Stores, Inc........ 15,956,250
310,000 Petsmart Inc.................. 9,610,000
258,500 Red Lion Hotels Inc........... 4,523,750
470,000 Sotheby's Holdings--Class A... 6,697,500
510,000 Sports and Recreation......... 3,633,750
245,700 The Sports Authority Inc...... 5,006,137
536,400 Starbucks Coffee.............. 11,264,400
384,500 Urban Outfitters Inc.......... 8,939,625
--------------
168,206,531
--------------
SOFTWARE & SERVICES -- 5.0%
*600,000 Acclaim Entertainment Inc..... 7,425,000
*127,500 Avant Corp.................... 2,454,375
*525,000 BMC Software Inc.............. 22,443,750
*473,900 Compuware Corp................ 8,767,150
277,609 First Data Corp............... 18,565,102
*650,000 Intergraph Corp............... 10,237,500
*281,100 Policy Management Systems..... 13,387,388
*155,000 7th Level Inc................. 2,170,000
*466,000 Sybase Inc.................... 16,776,000
*154,400 Synopsis...................... 5,867,200
--------------
108,093,465
--------------
TRANSPORTATION -- 4.8%
*340,000 AMR........................... 25,245,000
1,000,000 America West Airlines......... 17,000,000
300,000 Landstar System Inc........... 8,025,000
*460,000 M.S. Carriers................. 9,200,000
269,000 Qantas Air ADR 144A........... 4,472,125
300,000 Railtex....................... 6,300,000
340,000 Skywest Inc................... 4,377,500
350,000 Swift Transportation.......... 5,337,500
587,700 Transportation-Marine......... 4,407,750
410,000 Werner Enterprises, Inc....... 8,302,500
375,000 Stolt Nielson................. 10,828,125
--------------
103,495,500
--------------
UTILITIES -- 0.4%
700,000 Petersburg Long Distance
Inc......................... 3,325,000
300,000 Portugal Telecom S.A. ADR..... 5,700,000
--------------
9,025,000
--------------
Total common stocks........... $1,824,554,483
--------------
CONVERTIBLE PREFERRED STOCKS -- 2.5%
BUSINESS SERVICES -- 0.3%
215,000 Technip ADS 144A.............. 7,407,911
--------------
CONSUMER DURABLE -- 0.6%
1,364,400 Noble Drilling Corp........... 12,279,600
--------------
CONSUMER NON-DURABLES -- 0.5%
1,750,000 RJR Nabisco Preferred Equity
Redemptive Cumulative
Stock....................... 11,156,250
--------------

</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

88
<PAGE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS -- (CONTINUED)
FINANCIAL SERVICES -- 0.3%
160,000 Glendale Federal.............. 7,240,000
--------------
MANUFACTURING -- 0.8%
1,100,000 Cooper Industries............. 15,125,000
--------------
Total convertible preferred
stocks...................... $ 53,208,761
--------------
--------------

CONVERTIBLE CORPORATE BONDS -- 0.7%
CONSUMER DURABLES -- 0.3%
3,765,000 Rohr Inc.
7.750% due 05/15/04......... 5,647,500
--------------
PRIVATE PLACEMENT -- 0.4%
8,000,000 Planet Hollywood
10.000% due 08/22/00........ 10,435,920
--------------
Total convertible corporate
bonds....................... $ 16,083,420
--------------
--------------

NON-CONVERTIBLE PREFERRED STOCK -- 0.8%
CONSUMER DURABLES
450,000 Nokia Preferred ADS........... $ 17,493,750
--------------
--------------

WARRANTS --0.1%
*905,200 Nordic American Tanker........ $ 3,168,200
--------------
--------------

PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 12.1%
$ 6,960,000 U.S. Treasury Bill
5.390% due 12/12/96......... 6,623,498
40,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96 maturity
amount $40,027,556;
(Collateralized by
$15,239,000 Federal National
Mortgage Association 8.000%
due 06/01/07 and $39,010,000
Federal National Mortgage
Assocaition 9.000% due
04/01/25)................... 40,000,000

$55,065,000 Repurchase Agreement dated
12/29/95 with J.P. Morgan
5.800% due 01/02/96 maturity
amount $55,100,486;
(Collateralized by
$34,327,000 U.S. Treasury
Bond 11.250% due 02/15/15).. $ 55,065,000
160,000,000 Repurchase Agreement dated
12/29/95 with Swiss Bank
Corp 5.850% due 01/02/96
maturity amount
$160,104,000;
(Collateralized by
$114,765,000 U.S. Treasury
Bonds 7.250% to 11.250% due
02/15/15 - 05/15/16)........ 160,000,000
--------------
Total short-term securities... $ 261,688,498
--------------
--------------
</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 84.6% $1,824,554,483
Total convertible preferred stocks........... 2.5 53,208,761
Total convertible corporate bonds............ 0.7 16,083,420
Total non-convertible preferred stock........ 0.8 17,493,750
Total warrants............................... 0.1 3,168,200
Total short-term securities.................. 12.1 261,688,498
------ --------------
Total investment in securities
**(Identified cost $1,910,161,838)......... 100.8% 2,176,197,112
Excess of liabilities over cash and
receivables................................ (0.8) (18,305,409)
------ --------------
Net assets (Applicable to $3.48966 per share
based on 618,366,580 shares outstanding)... 100.0% $2,157,891,703
------ --------------
------ --------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 618,366,580
shares............................................. $ 61,836,658
Capital surplus...................................... 1,685,944,946
Undistributed net realized gain on investments....... 145,639,842
***Unrealized (loss) on futures contracts............ (1,867,317)
Unrealized appreciation of investments............... 266,035,274
Unrealized appreciation on forward currency
contracts.......................................... 302,300
--------------
Net assets, applicable to shares outstanding......... $2,157,891,703
--------------
--------------
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
*** The Fund has 400 Standard & Poor's 500 March 1996 futures
contracts open at December 29, 1996. These contracts have a value
of $123,690,000.
</TABLE>

FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1995

<TABLE>
<CAPTION>
UNREALIZED
TOTAL AGGREGATE DELIVERY APPRECIATION/
DESCRIPTION VALUE FACE VALUE DATE (DEPRECIATION)
- ------------------------------ ---------- ---------- --------- -------------
<S> <C> <C> <C> <C>
Dutch Guilders (Sell) $11,697,700 $12,000,000 05/20/96 $ 302,300
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

89
<PAGE>
HARTFORD MORTGAGE SECURITIES FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
LONG-TERM BONDS -- 99.0%
FEDERAL AGENCIES
COLLATERALIZED MORTGAGE
OBLIGATION -- 5.9%
Federal Home Loan Mortgage
Corporation
$ 5,000,000 6.500% due 03/15/23......... $ 5,058,000
1,532,535 8.100% due 12/15/04......... 1,551,600
-------------
6,609,600
-------------
Federal National Mortgage
Association
1,054,049 7.950% due 03/25/20......... 1,066,118
5,577,430 8.500% due 03/25/19 -
06/25/19.................... 5,677,234
3,315,352 8.750% due 02/25/18......... 3,340,615
749,343 9.000% due 01/25/17 -
03/25/19.................... 748,582
669,199 9.250% due 12/25/03......... 672,679
1,194,178 11.000% due 04/01/09........ 1,311,645
-------------
12,816,873
-------------
FEDERAL AGENCIES MORTGAGE
PASS-THROUGHS -- 71.0%
Federal Home Loan Mortgage
Corp.
13,918,718 6.500% due 02/01/09 -
06/01/24.................... 13,851,562
22,903,536 7.000% due 12/01/10 -
12/01/25.................... 23,140,875
19,644,019 7.500% due 01/01/24 -
12/01/25.................... 20,141,394
7,709,781 8.000% due 02/01/13 -
11/01/24.................... 7,986,854
7,783,151 8.500% due 07/01/01 -
05/01/25.................... 8,086,242
7,528,796 9.000% due 10/15/01 -
10/01/06.................... 7,884,848
8,713,412 9.500% due 11/01/08......... 9,256,170
4,275,027 10.000% due 09/01/05 -
11/01/20.................... 4,671,737
-------------
95,019,682
-------------
Federal National Mortgage
Association
1,605,289 6.000% due 08/01/08 -
05/01/09.................... 1,589,289
30,630,746 6.500% due 11/10/10 -
09/01/25.................... 30,616,166
18,127,133 7.000% due 10/01/07 -
08/01/24.................... 18,417,242
10,209,623 7.500% due 11/01/10 -
03/01/24.................... 10,477,080
10,316,989 9.000% due 05/01/21 -
12/01/25.................... 10,855,421
-------------
71,955,198
-------------
Government National Mortgage
Association
2,000,000 6.500% due 12/01/25......... 1,983,750
24,016,001 7.500% due 11/15/09 -
11/01/25.................... 24,694,300
12,188,929 8.000% due 04/15/00 -
12/15/25.................... 12,687,369
12,694,693 8.500% due 05/15/17 -
07/15/25.................... 13,327,382
3,000,000 9.000% due 12/01/25......... 3,177,189
4,874,814 9.500% due 10/15/09 -
11/15/09.................... 5,267,920
2,895,774 10.000% due 11/15/09 -
05/15/13.................... 3,177,546
789,680 11.000% due 02/15/10 -
09/15/10.................... 895,828
96,693 11.250% due 01/15/01........ 104,918
118,453 12.000% due 05/15/15........ 136,589
112,997 12.500% due 06/15/14 -
08/15/15.................... 131,485
43,411 13.000% due 11/15/14........ 50,910
8,765 13.500% due 07/15/14........ 10,341
-------------
65,645,527
-------------
ASSET BACKED -- 1.3%
Corestates 94-A1
4,187,180 6.650% due 05/15/09......... 4,260,330
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 10.3%
CMC 92-D IIL
1,150,825 7.200% due 12/25/08......... 1,154,829

COLLATERALIZED MORTGAGE
OBLIGATIONS -- (CONTINUED)
CWF 93-C A1
$ 3,364,995 6.500% due 01/25/24......... $ 3,357,525
Chase Mortgage 93-C2 2A3
5,720,000 8.250% due 01/25/24......... 5,827,193
CMO 52 Class A
(A) 1,062,308 0.000% due 05/01/17......... 889,396
GECMS 1994-21 A
8,939,573 6.500% due 08/25/09......... 8,962,547
GE Capital Mortgage 1994-26A
9,110,711 7.020% due 07/25/09......... 9,173,347
GE 94-24 Class A1
4,527,179 7.000% due 07/25/24......... 4,565,751
-------------
33,930,588
-------------
CONVENTIONAL MORTGAGE PASS-
THROUGHS -- 0.2%
Ryland Series 82
519,184 10.250% due 03/15/11........ 555,527
-------------
WHOLE LOAN PASS-THROUGHS --
1.9%
HSI 93E Class E
5,523,976 10.000% due 09/25/08........ 6,078,086
-------------
U.S. GOVERNMENT AND FEDERAL
AGENCIES -- 5.8%
U.S. Treasury Notes
8,000,000 7.250% due 05/15/04......... 8,900,000
2,500,000 7.500% due 05/15/02......... 2,773,438
1,600,000 10.750% due 02/15/03........ 2,088,000
-------------
13,761,438
-------------
Federal National Mortgage
Association
3,232,817 6.000% due 12/01/08 -
12/01/09.................... 3,200,431
2,000,000 6.200% due 01/01/06......... 2,006,250
-------------
5,206,681
-------------
FINANCIAL SERVICES -- 2.6%
Capital Holding
Corp./Providian
3,000,000 0.000% due 02/07/97......... 3,392,325
Spieker Prop. Real Estate
Investments
5,000,000 6.650% due 12/15/00......... 4,995,400
-------------
8,387,725
-------------
Total long-term bonds......... $324,227,255
-------------
-------------
SHORT-TERM SECURITIES -- 16.9%
COMMERCIAL PAPER -- 5.2%
Bell Atlantic Financial
Services
3,000,000 5.800% due 01/18/96......... 2,992,267
Colgate-Palmolive Co.
3,000,000 5.800% due 01/18/96......... 2,992,267
GTE North Inc.
3,000,000 5.800% due 01/18/96......... 2,992,267
Sherwood Medical
5,000,000 5.820% due 01/18/96......... 4,987,066
Virginia Electric Power
3,000,000 5.760% due 01/18/96......... 2,992,320
-------------
16,956,187
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

90
<PAGE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
SHORT-TERM SECURITIES -- (CONTINUED)
REPURCHASE AGREEMENTS -- 11.7%
$30,000,000 Repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $30,019,500;
(Collateralized by
$30,000,000 U.S. Treasury
Note 5.125% due 12/31/98)... $ 30,000,000
-------------
8,463,000 Repurchase agreement dated
12/29/95 with Salomon
Brothers 5.900% due
01/02/96; maturity amount
$8,468,548; (Collateralized
by $8,830,000 U.S. Treasury
Bills 4.930% due
06/06/96)................... 8,463,000
-------------
Total short-term securities... $ 55,419,187
-------------
-------------

</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total long-term bonds........................ 99.0% $324,227,255
Total short-term securities.................. 16.9 55,419,187
-------- ------------
Total investment in securities
*(Identified cost $373,168,338)............ 115.9 379,646,442
Excess of liabilities over cash and
receivables................................ (15.9) (52,081,129 )
-------- ------------
Net assets (Applicable to $1.07126 per share
based on 305,774,935 shares outstanding)... 100.0% $327,565,313
-------- ------------
-------- ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per
share; authorized 800,000,000 shares;
outstanding 305,774,935 shares......................... $ 30,577,493
Capital surplus........................................ 303,361,724
Undistributed net realized (loss)
on investments........................................ (12,852,008)
Unrealized appreciation of investments................. 6,478,104
--------------
Net assets, applicable to shares outstanding........... $327,565,313
--------------
--------------
</TABLE>

* Aggregate cost for Federal income tax purposes.
(A) Principal Only [cad 228] Securities created by investment bankers by
separating regular bonds into their principal and coupon components and
selling each piece separately. If the underlying bonds are subject to
prepayment, the interest only investor is at risk for faster than
anticipated prepayments and the principal only investor is at risk for
slower than anticipated prepayments.

These instruments are used for a very small percentage of the funds
assets when they are determined they improve the portfolio's return profile.

91
<PAGE>

HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS -- 96.2%
BUSINESS SERVICES -- 1.2%
7,400 Alco Standard Corp............ $ 337,625
*2,625 Andrew Corp................... 100,406
10,300 Donnelley (RR) & Sons......... 405,562
3,500 E G & G, Inc.................. 84,875
*3,800 Federal Express Corp.......... 280,725
2,500 Fleming Companies, Inc........ 51,562
8,250 Genuine Parts Co.............. 338,250
3,400 Grainger W W Inc.............. 225,250
6,700 Moore Corp Ltd................ 124,787
3,200 National Service Industries
Inc......................... 103,600
3,300 Ogden Corp.................... 70,538
2,800 Pittston Services Group....... 87,850
5,300 Ryder Systems, Inc............ 131,175
3,900 Safety Kleen Corp............. 60,938
4,600 Supervalu, Inc................ 144,900
12,200 Sysco Corp.................... 396,500
32,300 WMX Technologies Inc.......... 964,963
-------------
3,909,506
-------------
COMMUNICATION EQUIPMENT --
2.9%
14,492 AMP Inc....................... 556,130
*4,800 Cabletron Systems............. 388,800
*18,100 Cisco Systems Inc............. 1,350,713
*7,700 DSC Communications............ 283,938
34,100 Hewlett-Packard Co............ 2,855,875
39,400 Motorola Inc.................. 2,245,800
16,900 Northern Telecom Ltd.......... 726,700
2,800 Perkin Elmer.................. 105,700
5,100 Scientific Atlanta, Inc....... 76,500
3,700 Teledyne Inc.................. 94,812
*11,000 3 Com Corp.................... 512,875
-------------
9,197,843
-------------
COMPUTERS & OFFICE EQUIPMENT
-- 2.3%
7,800 Amdahl Corp................... 66,300
8,100 Apple Computer................ 258,188
*17,600 Compaq Computer............... 844,800
*1,700 Cray Research Inc............. 42,075
*2,500 Data General Corp............. 34,375
*9,800 Digital Equipment Corp........ 628,425
2,600 Harris Corp Del............... 142,025
38,000 International Business Machine
Corp........................ 3,486,500
10,100 Pitney Bowes Inc.............. 474,700
*10,600 Silicon Graphics Inc.......... 291,500
*7,800 Tandem Computers.............. 82,875
*11,500 Unisys Corp................... 64,687
7,200 Xerox......................... 986,400
-------------
7,402,850
-------------
CONSUMER DURABLES -- 2.9%
5,700 Black & Decker Corporation.... 200,925
2,000 Briggs & Stratton............. 86,750
6,400 Brunswick..................... 153,600
25,544 Chrysler Corp................. 1,414,499
5,600 Cooper Tire & Rubber
Company..................... 137,900
6,200 Dial Corp Arizona............. 183,675
4,000 Echlin Inc.................... 146,000
3,100 Fleetwood..................... 79,825
71,700 Ford Motor Co. Del............ 2,079,300
49,900 General Motors Corp........... 2,638,462
1,700 The B.F. Goodrich Co.......... 115,813
10,200 Goodyear Tire & Rubber
Company..................... 462,825
7,500 ITT Corporation............... 397,500

CONSUMER DURABLES --
(CONTINUED)
10,600 Masco Corporation............. $ 332,575
7,200 Maytag Corp................... 145,800
2,700 Snap-on-Tools................. 122,175
3,000 Stanley Works................. 154,500
4,900 Whirlpool Corp................ 260,925
-------------
9,113,049
-------------
CONSUMER NON-DURABLES -- 12.8%
1,900 Alberto Culver Co............. 65,312
12,100 American Brands Inc........... 539,963
5,000 American Greetings Corp. Class
A........................... 138,125
17,100 Anheuser Busch Cos. Inc....... 1,143,563
35,356 Archer-Daniels-Midland........ 636,408
4,600 Avon Products................. 346,725
2,000 Ball Corp..................... 55,000
4,600 Brown-Forman.................. 167,900
9,800 CPC International............. 672,525
*11,650 CUC International............. 397,556
16,700 Campbell Soup Co.............. 1,002,000
3,500 Clorox Company................ 250,688
83,800 Coca-Cola Co.................. 6,222,150
9,700 Colgate Palmolive Co.......... 681,425
15,950 Conagra Inc................... 657,938
2,600 Coors (Adolph) Class B........ 57,525
22,800 Eastman Kodak................. 1,527,600
5,100 Fruit Of The Loom Inc......... 124,313
10,600 General Mills Co.............. 612,150
4,000 Giant Food, Inc............... 126,000
29,600 Gillette Co................... 1,542,900
2,600 Great Atlantic & Pacific Tea
Co.......................... 59,800
2,200 Handleman Co.................. 12,650
5,950 Hasbro, Inc................... 184,450
24,400 H.J. Heinz Company............ 808,250
5,200 Hershey Foods Corp............ 338,000
14,600 Kellogg Co.................... 1,127,850
18,586 Kimberly Clark Corp........... 1,537,991
5,000 Liz Claiborne, Inc............ 138,750
10,600 Newell Co..................... 274,275
9,500 Nike, Inc. Class B............ 661,437
52,600 Pepsico Inc................... 2,939,025
56,100 Philip Morris................. 5,077,050
3,000 Polaroid Corp................. 142,125
4,200 Premark International......... 212,625
45,900 Proctor and Gamble............ 3,809,700
9,000 Quaker Oats Co................ 310,500
7,000 Ralston Purina Group.......... 436,625
5,200 Reebok International Ltd...... 146,900
10,500 Rubbermaid, Inc............... 267,750
2,600 Russell Corp.................. 72,150
32,000 Sara Lee Corp................. 1,020,000
24,800 Seagram....................... 858,700
3,300 Stride Rite Corp.............. 24,750
13,000 UST Inc....................... 433,875
10,700 Unilever NV New York Shares... 1,506,025
4,300 V F Corp...................... 226,825
7,000 Whitman Corp.................. 162,750
10,100 Winn Dixie Stores Inc......... 372,437
7,800 Wrigley Wm. Jr. Co............ 409,500
-------------
40,540,531
-------------
CONSUMER SERVICES -- 0.8%
33,000 Airtouch Communications....... 932,250
3,200 Bally Entertainment Corp...... 44,800
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

92
<PAGE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
CONSUMER SERVICES -- (CONTINUED)
7,000 H & R Block, Inc.............. $ 283,500
5,500 De Luxe Corp.................. 159,500
4,900 Harcourt General Inc.......... 205,188
2,000 John H. Harland Co............ 41,750
*6,850 Harrah's Entertainment........ 166,112
3,200 Hilton Hotels Corporation..... 196,800
8,400 Marriott International Inc.... 321,300
6,900 Service Corp International.... 303,600
-------------
2,654,800
-------------
ELECTRONICS -- 1.5%
6,900 Advanced Micro Devices Inc.... 113,850
11,800 Applied Materials............. 464,625
54,900 Intel Corp.................... 3,115,575
13,800 Micron Technology Inc......... 546,825
12,500 Texas Instruments............. 646,875
-------------
4,887,750
-------------
ENERGY AND SERVICES -- 9.1%
6,200 Amerada Hess Corp............. 328,600
33,100 Amoco Corporation............. 2,379,063
4,200 Ashland Inc................... 147,525
10,700 Atlantic Richfield............ 1,185,025
9,400 Baker Hughes, Inc............. 229,125
23,600 Barrick Gold Corp............. 622,450
8,500 Burlington Resources.......... 333,625
43,500 Chevron Corp.................. 2,283,750
7,050 Coastal Corp.................. 262,613
12,200 Dresser Industries............ 297,375
82,900 Exxon......................... 6,642,363
5,500 Fluor Corp.................... 363,000
7,600 Halliburton Co................ 384,750
1,700 Helmerich & Payne Inc......... 50,575
3,500 Kerr McGee Corp............... 222,250
2,200 Louisiana Land & Exploration
Co.......................... 94,325
3,600 Mcdermott International....... 79,200
26,400 Mobil Corp.................... 2,956,800
600 Nacco......................... 33,300
21,200 Occidential Petroleum Corp.... 453,150
6,900 Oryx Energy Company........... 92,288
10,000 Panhandle Eastern Corp........ 278,750
3,100 Pennzoil Co................... 130,975
17,500 Phillips Petroleum............ 597,187
*5,600 Rowan Cos..................... 55,300
35,800 Royal Dutch Petroleum......... 5,052,275
6,012 Santa Fe Energy Resources
Corp........................ 57,865
16,100 Schlumberger Ltd.............. 1,114,925
5,500 Sun Company, Inc.............. 150,562
17,300 Texaco Inc.................... 1,358,050
19,200 USX-Marathon Group............ 374,400
16,400 Unocal Corp................... 477,650
-------------
29,089,091
-------------
FINANCIAL SERVICES -- 12.4%
7,600 Aetna Life & Casualty Co...... 526,300
7,800 H.F. Ahmanson & Company....... 206,700
3,000 Alexander & Alexander......... 57,000
29,940 Allstate Corp................. 1,231,283
32,600 American Express Co........... 1,348,825
13,700 American General Corp......... 477,788
31,730 American International
Group....................... 2,935,025
26,290 Banc One Corp................. 992,448

FINANCIAL SERVICES --
(CONTINUED)
7,500 Bank Of Boston................ $ 346,875
13,300 Bank Of New York Co........... 648,375
25,036 Bank America Corporation...... 1,621,081
5,200 Bankers Trust................. 345,800
6,500 Barnett Banks Inc............. 383,500
3,500 Beneficial Corp............... 163,188
8,400 Boatman Bancshares............ 343,350
4,800 Cigna Corporation............. 495,600
11,700 Chase Manhattan............... 709,313
16,768 Chemical Banking Corp......... 985,120
5,800 Chubb Corp.................... 561,150
28,400 Citicorp...................... 1,909,900
7,700 Comerica Inc.................. 308,963
9,300 Corestates Financial Corp..... 352,238
11,256 Dean Witter Discover & Co..... 529,032
12,100 Federal Home Loan Mortgage
Corporation................. 1,010,350
18,200 Federal National Mortgage
Association................. 2,259,075
8,700 First Bank System Inc......... 431,738
21,212 First Chicago Corp............ 837,874
5,400 First Fidelity Bancorp........ 407,025
5,100 First Interstate Bancorp...... 696,150
11,500 First Union Corporation....... 639,688
16,402 Fleet Financial Group Inc..... 668,393
5,500 General Re Corp............... 852,500
3,900 Golden West Financial......... 215,475
9,100 Great Western Financial
Corp........................ 232,050
6,500 Household International
Inc......................... 384,313
4,800 Jefferson Pilot Corp.......... 223,200
15,801 Keycorp....................... 572,786
6,900 Lincoln National Corp......... 370,875
9,900 MBNA Corp..................... 365,063
4,800 Marsh and McLennan Cos.,
Inc......................... 426,000
9,800 Mellon Bank Corporation....... 526,750
11,800 Merrill Lynch & Co. Inc....... 601,800
12,600 J.P. Morgan................... 1,011,150
5,100 Morgan Stanley Group.......... 411,187
9,800 National City Corp............ 324,625
18,064 Nationsbank Corp.............. 1,257,705
23,600 Norwest Corporation........... 778,800
15,300 PNC Bank Corp................. 493,424
6,400 Providian Corp................ 260,800
1,800 Pulte Corp.................... 60,524
3,700 Republic New York Corp........ 229,862
8,400 Safeco Corp................... 289,800
5,600 St Paul Cos., Inc............. 311,500
7,100 Salomon Inc................... 252,050
7,600 Sun Trust Banks, Inc.......... 520,600
4,800 Torchmark Corp................ 217,200
4,600 Transamerica Corp............. 335,224
21,291 Travelers Group Inc........... 1,338,672
4,800 Unum Corp..................... 264,000
6,650 U.S. Bancorp Oregon........... 223,606
7,500 USF&G Corporation............. 126,562
2,350 US Life Corp.................. 70,206
11,400 Wachovia Corp................. 521,550
3,200 Wells Fargo & Company......... 691,200
-------------
39,190,206
-------------
HEALTHCARE -- 10.5%
53,000 Abbott Laboratories........... 2,212,750
4,300 Allergan Inc.................. 139,750
*5,500 Alza Corp. Del................ 136,125
20,700 American Home Products
Corp........................ 2,007,900

</TABLE>

93
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)

HEALTHCARE -- (CONTINUED)
17,700 Amgen......................... $ 1,050,938
3,700 Bard C. R. Inc................ 119,325
3,800 Bausch & Lomb Inc............. 150,575
18,500 Baxter International.......... 774,688
4,400 Becton, Dickinson............. 330,000
6,600 Beverly Enterprises........... 70,125
7,700 Biomet........................ 137,638
10,800 Boston Scientific Corp........ 529,200
33,900 Bristol-Myers Squibb
Company..................... 2,911,162
29,620 Columbia/HCA Healthcare
Corp........................ 1,503,215
2,900 Community Psychiatric
Centers..................... 35,525
10,800 Humana Inc.................... 295,650
43,100 Johnson & Johnson............. 3,690,438
36,800 Lilly Eli & Co................ 2,070,000
5,100 Mallinckrodt Group Inc........ 185,512
4,200 Manor Care Inc................ 147,000
15,400 Medtronic, Inc................ 860,475
82,600 Merck & Co., Inc.............. 5,430,950
3,000 Millipore Corp................ 123,375
33,610 Pharmacia & Upjohn............ 1,302,387
42,200 Pfizer, Inc................... 2,658,600
5,600 Pioneer Hi-Bred
International............... 311,500
4,750 St. Jude Medical Inc.......... 204,250
24,800 Schering-Plough Corp.......... 1,357,800
1,500 Shared Medical Systems
Corp........................ 81,562
13,300 Tenet Healthcare
Corporation................. 275,975
11,600 United Healthcare Corp........ 759,800
10,300 US Healthcare Inc............. 478,950
3,800 United States Surgical........ 81,225
9,000 Warner-Lambert Company........ 874,125
-------------
33,298,490
-------------
INDUSTRIAL MATERIALS -- 6.3%
7,500 Air Products & Chemical
Corp........................ 395,625
15,000 Alcan Aluminum Ltd............ 466,875
11,900 Aluminum Company of America... 629,213
7,100 Armco Inc..................... 41,713
2,500 Armstrong World Industries,
Inc......................... 155,000
2,800 Asarco Corporation............ 89,600
3,600 Avery Dennison
International............... 180,450
3,400 Bemis Co...................... 87,125
7,400 Bethlehem Steel Corp.......... 103,600
3,200 Boise Cascade Corp............ 110,800
1,900 Centex Corp................... 66,025
6,500 Champion International
Corp........................ 273,000
15,400 Corning Inc................... 492,800
2,000 Crane Company................. 73,750
*6,000 Crown Cork & Seal............. 250,500
6,200 Cyprus Amax Minerals.......... 161,975
17,500 Dow Chemical.................. 1,231,563
37,100 Dupont EI De Nemours.......... 2,592,363
5,375 Eastman Chemical Co........... 336,609
8,400 Echo Bay Mines Ltd............ 87,150
4,300 Ecolab Inc.................... 129,000
9,612 Englehard Corp................ 209,061
2,400 FMC Corp...................... 162,300
3,100 Federal Paper Board Inc....... 160,813
13,600 Freeport-McMoran Copper & Gold
Class B..................... 382,500
6,100 Georgia-Pacific Corp.......... 418,613
2,300 Giddings & Lewis.............. 37,950
6,300 Grace (W.R.) Company.......... 372,488
4,300 Great Lakes Chemical.......... 309,600
7,400 Hercules Inc.................. 417,175

INDUSTRIAL MATERIALS --
(CONTINUED)
9,200 Homestake Mining.............. $ 143,750
7,500 ITT Industries................ 180,000
7,900 Inco Co. Ltd.................. 262,675
3,200 Inland Steel Company.......... 80,400
7,400 International Flavors &
Fragrances.................. 355,200
17,800 International Paper Co........ 674,175
5,500 James River Corp.............. 132,688
2,200 Kaufman & Broad Home Corp..... 32,725
7,200 Louisiana Pacific Corp........ 174,600
3,600 Mead Corp..................... 188,100
7,700 Monsanto Co................... 943,250
9,900 Morton International.......... 355,163
4,500 Nalco Chemical Co............. 135,562
6,344 Newmont Mining................ 287,066
5,800 Nucor Corp.................... 331,325
3,400 Owens Corning Fiberglass
Corp........................ 152,575
13,100 PPG Industries, Inc........... 599,325
7,633 Pall Corp..................... 205,136
4,600 Phelps Dodge Corp............. 286,350
16,000 Placer Dome, Inc.............. 386,000
2,000 Potlatch Corp................. 80,000
9,200 Praxair....................... 309,350
4,200 Reynolds Metal Co............. 237,825
4,500 Rohm & Haas Co................ 289,687
8,807 Santa Fe Pacific Gold Corp.... 106,785
5,700 Sherwin Williams.............. 232,275
3,300 Sigma Aldrich Corp............ 163,350
1,300 Springs Industries Inc........ 53,787
6,430 Stone Container Corporation... 92,431
3,700 Temple-Inland Inc............. 163,262
5,460 USX-U.S. Steel Group.......... 167,895
4,700 Union Camp Corp............... 223,837
9,200 Union Carbide Corp............ 345,000
6,850 Westvaco Corp................. 190,087
13,600 Weyerhaeuser Company.......... 588,200
3,700 Willamette Industries......... 208,125
6,800 The Williams Companies........ 298,350
6,075 Worthington Industries........ 126,436
-------------
20,207,983
-------------
MANUFACTURING -- 8.4%
18,900 Allied Signal Inc............. 897,750
22,900 Boeing Company................ 1,794,788
13,300 Caterpillar, Inc.............. 781,375
2,300 Cincinnati Milacron Inc....... 60,375
7,200 Cooper Industries............. 264,600
2,700 Cummins Engine................ 99,900
6,800 Dana Corporation.............. 198,900
17,400 Deere & Company............... 613,350
7,600 Dover Corp.................... 280,250
5,200 Eaton Corp.................... 278,850
15,000 Emerson Electric Co........... 1,226,250
2,700 Foster Wheeler Corp........... 114,750
4,200 General Dynamics.............. 248,325
111,600 General Electric.............. 8,035,200
3,200 General Signal Corp........... 103,600
3,200 Harnischfeger Industries
Inc......................... 106,400
8,500 Honeywell Inc................. 413,313
7,800 Illinois Tool Works........... 460,200
7,100 Ingersoll-Rand Company........ 249,388
2,700 Johnson Controls, Inc......... 185,625
13,401 Lockheed Martin Corp.......... 1,058,679
11,400 Loral Corp.................... 403,275

</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

94
<PAGE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MANUFACTURING -- (CONTINUED)
14,827 Mattel, Inc................... $ 455,930
7,500 McDonnell Douglas Corp........ 690,000
28,100 Minnesota Mining &
Manufacturing Co............ 1,861,625
*8,300 National Semicondutor Corp.... 184,675
*5,030 Navistar International
Corp........................ 52,815
3,300 Northrop Grumman Corp......... 211,200
1,300 Outboard Marine Corp.......... 26,488
2,595 Paccar Inc.................... 109,314
4,950 Parker-Hannifin Corp.......... 169,537
2,900 Raychem Corp.................. 164,937
16,300 Raytheon Co................... 770,175
14,500 Rockwell International
Corp........................ 766,688
4,300 TRW, Inc...................... 333,250
2,200 Tektronix Inc................. 108,075
12,100 Tenneco, Inc.................. 600,462
5,700 Textron, Inc.................. 384,750
1,300 Thomas & Betts Corp........... 95,875
2,100 Timken........................ 80,325
1,900 Trinova Corporation........... 54,387
10,200 Tyco International Ltd........ 363,375
8,200 United Technologies Corp...... 777,975
*2,680 Varity Corp................... 99,495
*3,500 Western Atlas Inc............. 176,750
26,200 Westinghouse Electric
Corporation................. 432,300
-------------
26,845,546
-------------
MEDIA & SERVICES -- 3.1%
10,300 Capital Cities/ABC Inc........ 1,270,763
16,000 Comcast Corp. Class A......... 291,000
34,800 Walt Disney Company........... 2,053,200
6,500 Dow Jones & Co................ 259,188
11,300 Dun & Bradstreet Corp......... 731,675
9,400 Gannett Co., Inc.............. 576,925
5,200 Interpublic Group............. 225,550
*2,550 King World Productions,
Inc......................... 99,131
3,300 Knight Ridder Inc............. 206,250
3,300 McGraw-Hill Companies, Inc.... 287,513
1,800 Meredith Corp................. 75,375
6,500 New York Times Co. Class A.... 192,562
*43,600 Tele-Communications........... 866,550
5,900 Tellabs Inc................... 218,300
25,780 Time Warner Inc............... 976,418
7,500 Times Mirror Co. Class A...... 254,062
4,300 Tribune Company............... 262,837
24,100 Viacom Inc. Class B........... 1,141,737
-------------
9,989,036
-------------
POLLUTION CONTROL -- 0.2%
14,200 Browning Ferris Industries
Inc......................... 418,900
19,700 Laidlaw Inc. Class B.......... 201,925
-------------
620,825
-------------
RETAIL -- 5.2%
16,900 Albertson's Inc............... 555,588
9,900 American Stores Co............ 264,825
1,200 Brown Group Inc............... 17,100
6,600 Charming Shoppes Inc.......... 18,975
6,500 Circuit City Store Inc........ 179,563
10,600 Darden Restaurants............ 125,875
4,800 Dayton Hudson Corporation..... 360,000
7,600 Dillard Department Stores
Class A..................... 216,600
13,500 Federated Department Store.... 371,250

RETAIL -- (CONTINUED)
9,600 The Gap, Inc.................. $ 403,200
31,773 Home Depot Inc................ 1,521,132
2,600 Jostens Inc................... 63,050
30,600 K Mart Corporation............ 221,850
*8,200 Kroger Co..................... 307,500
23,900 The Limited, Inc.............. 415,263
7,900 Loews Corporation............. 619,163
1,400 Longs Drug Store.............. 67,025
10,700 Lowe's Companies.............. 358,450
1,600 Luby's Cafeterias............. 35,600
16,600 May Department Stores Co...... 701,350
46,400 McDonalds Corp................ 2,093,800
7,000 Melville Corporation.......... 215,250
2,500 Mercantile Stores, Inc........ 115,625
5,500 Nordstrom Inc................. 222,750
15,200 J.C. Penney................... 723,900
4,100 Pep Boys-Manny, Moe, Jack..... 105,062
13,034 Price/Costco Inc.............. 198,768
5,600 Rite Aid Corp................. 191,800
*3,600 Ryan's Family Steak House..... 25,200
26,000 Sears Roebuck................. 1,014,000
*2,800 Shoney's Inc.................. 28,700
4,800 TJX Companies................. 90,600
4,449 Tandy Corp.................... 184,633
*18,400 Toys R Us..................... 400,200
153,400 Wal-Mart...................... 3,432,325
16,400 Walgreen Co................... 489,950
6,800 Wendy's International Inc..... 144,500
8,800 F.W. Woolworth Company........ 114,400
-------------
16,614,822
-------------
SOFTWARE & SERVICES -- 2.8%
3,100 Autodesk Incorp............... 106,175
9,600 Automatic Data Processing..... 712,800
*3,000 Ceridian Corporation.......... 123,750
16,000 Computer Associates........... 910,000
3,700 Computer Sciences Corp........ 259,925
14,700 First Data Corp............... 983,063
*3,100 Intergraph Corp............... 48,825
*39,500 Microsoft Corp................ 3,466,125
*24,600 Novell Inc.................... 350,550
*28,950 Oracle Corporation............ 1,226,756
12,800 Sun Microsystems Inc.......... 584,000
-------------
8,771,969
-------------
TECHNOLOGY -- 0.1%
8,600 LSI Logic Corp................ 281,650
-------------
TRANSPORTATION AND SERVICES --
1.4%
*5,100 AMR........................... 378,675
9,474 Burlington Northern Santa
Fe.......................... 738,972
14,000 CSX Corp...................... 638,750
5,200 Consolidated Rail
Corporation................. 364,000
2,900 Consolidated Freightways,
Inc......................... 76,850
3,400 Delta Airlines, Inc........... 251,175
8,700 Norfolk Southern Corp......... 690,563
2,600 Roadway Services.............. 127,075
9,600 Southwest Airlines............ 223,200
13,700 Union Pacific Corp............ 904,200
4,200 USAir Group................... 55,650
1,900 Yellow Corp................... 23,512
-------------
4,472,622
-------------

</TABLE>
95
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UTILITY -- 12.3%
106,271 AT&T Corp..................... $ 6,881,047
12,600 Alltel Corp................... 371,700
12,400 American Electric Power....... 502,200
37,000 Ameritech Corp................ 2,183,000
9,800 Baltimore Gas and Electric.... 279,300
29,200 Bell Atlantic Corp............ 1,952,750
66,300 Bell South Corp............... 2,884,050
10,400 Carolina Power and Lighting... 358,800
12,800 Central & Southwest Corp...... 356,800
10,357 Cinergy Corp.................. 317,183
3,400 The Columbia Gas System,
Inc......................... 149,175
15,700 Consolidated Edison NY........ 502,400
6,200 Consolidated Natural Gas
Co.......................... 281,325
9,800 Detroit Edison Inc............ 338,100
11,600 Dominion Resources, Inc....... 478,500
13,700 Duke Power Co................. 649,038
1,300 Eastern Enterprises........... 45,825
16,800 Enron Corp.................... 640,500
4,600 Enserch Corp.................. 74,750
15,200 Entergy Corp.................. 444,600
12,400 Florida Power & Light Group
Inc......................... 575,050
64,700 GTE Corp...................... 2,846,800
7,800 General Public Utilities...... 265,200
17,500 Houston Industries Inc........ 424,375
45,100 MCI Communications............ 1,178,238
9,600 Niagara Mohawk Power Corp..... 92,400
3,400 Nicor, Inc.................... 93,500
8,300 Noram Energy.................. 73,663
4,500 Northern States Power
Company..................... 221,063
28,500 Nynex Corporation............. 1,539,000
10,200 Ohio Edison Co................ 239,700
1,800 Oneok Inc..................... 41,175
14,800 Peco Energy Company........... 445,850
10,600 PP&L Resources................ 265,000
5,600 Pacific Enterprises........... 158,200
28,400 Pacific Gas & Electric
Company..................... 805,850
28,600 Pacific Telesis Group......... 961,675
19,000 Pacificorp.................... 403,750
2,300 Peoples Energy Corp........... 73,025
16,300 Public Service Enterprises.... 499,187
40,700 SBC Communications Inc........ 2,340,250
29,800 SCE Corp...................... 528,950
5,800 Sonat, Inc.................... 206,625
44,500 The Southern Co............... 1,095,812
23,300 Sprint Corp................... 929,087
15,100 Texas Utilities............... 620,987
14,300 Unicom Corp................... 468,325

UTILITY -- (CONTINUED)
6,800 Union Electric Co............. 283,900
31,400 U.S. West Communications
Group....................... $ 1,122,550
31,500 U.S. West Media Group......... 598,500
-------------
39,088,730
-------------
Total common stocks........... $ 306,177,299
-------------
-------------

PRINCIPAL
AMOUNT
- ----------
SHORT-TERM SECURITIES -- 3.7%
U.S. TREASURY BILLS
200,000 5.290% Due 1/4/96.......... 199,941
450,00 5.300% Due 4/4/96.......... 443,839

REPURCHASE AGREEMENT
11,049,000 Interest in $24,574,000
joint repurchase agreement
dated 12/29/95 with Fleet Bank
5.850% due 01/02/96; maturity
amount $11,056,182; (Collateralized
by $24,574,000 U.S. Treasury Note
5.125% due 12/31/98).......... 11,049,000
------------

Total short-term securities... $11,692,780
------------
------------
</TABLE>

<TABLE>

DIVERSIFICATION OF ASSETS:

<S> <C> <C>
Total common stocks.......................... 96.2 % $306,177,299
Total short-term securities.................. 3.7 11,692,780
------ ------------
Total investment in securities
**(Identified cost $245,919,800)........... 99.9% 317,870,079
Excess of cash and receivables over
liabilities................................ 0.1 382,813
------ ------------
Net assets (Applicable to $2.02792 per share
based on 156,935,726 shares outstanding)... 100.0% $318,252,892
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
400,000,000 shares; outstanding 156,935,726
shares............................................. $ 15,693,572
Capital surplus......................................
224,105,944
Undistributed net realized gain on investments.......
6,511,336
***Unrealized (loss) on futures contract.............
(8,239)
Unrealized appreciation of investments...............
71,950,279
------------
Net assets, applicable to shares outstanding.........
$318,252,892
------------
------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
*** The Fund has 36 Standard & Poor's 500, March 1996 futures contracts open at
December 31, 1995. These contracts have a value of $11,132,100.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

96
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 94.1%
ARGENTINA -- 0.6%
81,000 Baesa ADR..................... $ 1,670,625
50,000 Telefonica de Argentina-ADR... 1,362,500
55,000 YPF S.A. Sponsored ADR........ 1,189,375
--------------
4,222,500
--------------
AUSTRALIA -- 5.2%
318,076 Advance Bk Australia.......... 2,546,880
1,044,035 Amcor Ltd..................... 7,367,104
1,325,000 Australia & New Zealand
Banking..................... 6,210,169
714,413 Broken Hill Proprietary....... 10,082,331
397,621 National Australia Bank....... 3,573,657
105,300 Qantas Air ADR 144A........... 1,750,613
930,000 Westpac Banking Corp.......... 4,117,062
--------------
35,647,816
--------------
AUSTRIAN -- 0.7%
33,400 EVN........................... 4,576,474
--------------
BELGIUM -- 0.3%
50,000 Delhaize Le Lion.............. 2,066,046
--------------
BRAZIL -- 0.5%
195,000 Electrobras On ADR............ 2,656,875
130,000 Usiminas Siderurg Minas-ADR... 1,056,640
--------------
3,713,515
--------------
CANADA -- 1.8%
*75,000 Canadian Pacific Foreign...... 1,359,375
622,000 Canadian Pacific Ltd.......... 11,273,750
--------------
12,633,125
--------------
CHILE -- 0.3%
27,500 Compania de Telefon Chile..... 2,279,063
--------------
DENMARK -- 1.9%
378,000 Tele Danmark.................. 10,442,250
47,000 UniDanmark A Registered....... 2,324,055
--------------
12,766,305
--------------
FINLAND -- 0.8%
76,000 Metsa-serla Oy B.............. 2,336,262
*1,220,000 Unitas Bank Ltd............... 3,078,617
--------------
5,414,879
--------------
FRANCE -- 7.7%
13,100 Canal Plus SA................. 2,451,943
23,000 Euro RSCG Worldwide........... 1,875,790
20,335 Groupe Danone................. 3,350,055
111,000 National Bank of Paris 144A... 4,999,368
13,000 Peugeot SA.................... 1,712,270
132,650 Renault....................... 3,813,491
395,000 Rhone-Poulenc................. 8,448,293
*55,365 Saint Gobain.................. 6,118,303
45,107 Societe Generale.............. 5,564,168
50,000 Societe Nationale Elf
Acquitaine.................. 3,678,180
47,700 Technip....................... 3,277,515
108,296 Total SA...................... 7,297,604
--------------
52,586,980
--------------
GERMANY -- 4.9%
22,700 Bayer AG...................... 6,011,238
1,050 Beiersdorf.................... 719,228
6,100 Daimler-Benz AG............... 3,071,210

GERMANY -- (CONTINUED)
14,500 Degussa....................... $ 4,870,306
98,000 Deutsche Bank AG.............. 4,641,029
8,500 Karstadt AG................... 3,475,661
16,549 Mannesmann AG................. 5,253,559
123,000 Veba AG....................... 5,251,878
--------------
33,294,109
--------------
HONG KONG -- 4.3%
2,116,217 Hong Kong
Telecommunications.......... 3,776,760
1,440,000 Hutchison Whampoa Ltd......... 8,771,290
1,008,000 Sun Hung Kai.................. 8,245,199
1,135,000 Swire Pacific Ltd............. 8,806,984
--------------
29,600,233
--------------
INDIA -- 0.5%
200,000 India Tobacco Co. ADS......... 1,427,600
225,000 Indo Gulf GDR................. 326,318
154,000 Reliance Industries GDS....... 1,813,104
--------------
3,567,022
--------------
INDONESIA -- 0.5%
480,000 Jaya Real Property-Foreign.... 1,301,268
*549,000 Jaya Real Property............ 1,488,325
*189,000 Semen Gresik.................. 528,903
--------------
3,318,496
--------------
ITALY -- 2.0%
2,780,000 Banca Comml Italiana.......... 5,936,504
2,000,000 Stet.......................... 5,656,693
1,530,000 Telecom Italia SPA............ 2,380,535
--------------
13,973,732
--------------
JAPAN -- 25.9%
169,000 Canon Sales................... 4,493,377
782,000 Chichibu Oneda Cement C....... 4,165,929
351,000 Chugai Pharmaceutical......... 3,356,270
391,000 Dai Nippon Printing........... 6,615,585
2,000 Home Wide Corp................ 23,591
97,000 Ito-Yokado Ltd................ 5,964,614
500,000 Kajima Corp................... 4,930,871
1,200,000 Kawasaki Heavy Inds........... 5,510,974
1,195,000 Kawasaki Steel Corp........... 4,159,335
550,000 Keio Teito Electric Rai....... 3,195,881
32,000 Kyocera Corp.................. 2,373,006
9,000 Kyoritsu Air Technology....... 97,457
59,000 Mabuchi Motor................. 3,662,187
239,000 Matsushita Electric Co........ 3,882,046
513,000 Minebea Co., Ltd.............. 4,295,253
208,000 Mitsubishi Bank Ltd........... 4,886,783
615,000 Mitsubishi Corp............... 7,551,484
499,000 Mitsui Petrochemical.......... 4,076,719
97,000 Murata Manufacturing Co....... 3,563,763
69,000 Nihon Jumbo Co., Ltd.......... 2,408,295
433,000 Nippon Express................ 4,161,288
570 Nippon Telegraph &
Telephone................... 4,601,663
*1,965,000 NKK Corporation............... 5,281,543
350,000 Nomura Securities............. 7,613,845
75,000 Orix Corp..................... 3,081,794
25,000 Riso Kagaku................... 2,105,289
525,000 Sakura Bank................... 6,649,425
224,000 Sankyo........................ 5,024,461
98,000 Sanwa Bank Ltd................ 1,989,752
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

97
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
37,000 Sanyo Shinpan Financial Co.... $ 3,040,704
85,000 Secom......................... 5,900,609
31,000 Sekisui Chemical Co........... 455,574
83,000 Seven Eleven.................. 5,842,019
117,000 Shimamura Co. Ltd............. 4,513,487
10,000 Shohkoh Fund.................. 1,875,665
312,000 Showa Corporation............. 2,386,078
82,000 Sony Corp..................... 4,907,473
460,000 Sumitomo Marsh & Fire......... 3,771,440
851,000 Sumitomo Realty............... 6,006,284
334,000 Sumitomo Trust & Banking...... 4,714,686
353,000 Toda Construction Co.......... 3,054,578
126,000 Tohoku Electric Power......... 3,033,356
606,000 Tokio Marine & Fire
Insurance................... 7,909,697
24,000 Tsutsumi Jewelry.............. 1,199,651
--------------
178,333,781
--------------
MALAYSIA -- 1.6%
750,000 Resort World.................. 4,016,222
2,617,400 Sime Darby Berhad............. 6,956,511
--------------
10,972,733
--------------
MEXICO -- 1.1%
385,000 Cemex SA A.................... 1,270,825
536,000 Femsa SA B.................... 1,239,870
*285,000 Grupo Carso SA Ser A1......... 1,522,222
154,000 Kimberly Clark A.............. 2,331,514
164,900 Transportation-Maritima....... 1,236,750
--------------
7,601,181
--------------
NETHERLANDS -- 4.5%
380,000 Elesevier..................... 5,055,642
173,515 International Nederlanden
CVA......................... 11,564,071
47,000 Unilever CVA.................. 6,589,058
146,000 Vendex International.......... 4,329,624
22,400 Verenigd Bezit................ 3,067,902
--------------
30,606,297
--------------
NEW ZEALAND -- 1.6%
557,383 Air New Zealand B............. 1,894,993
6,077,000 Brierley Investments.......... 4,807,565
1,916,000 Carter Holt................... 4,133,900
--------------
10,836,458
--------------
NORWAY -- 4.0%
1,315,800 Christiana Bank Og............ 3,071,584
165,801 Hafslund Nyco A-Free.......... 4,328,086
154,000 Kvaerner...................... 5,441,009
141,000 Orkla AS A.................... 7,005,521
560,000 Saga Petro A Free............. 7,463,722
--------------
27,309,922
--------------
PHILIPPINES -- 0.9%
419,000 Philippine National Bank...... 4,641,329
*1,340,000 Pilipino Telephone............ 1,356,379
--------------
5,997,708
--------------
PORTUGAL -- 0.5%
*181,800 Portugal Telecom S.A. ADR..... 3,454,200
--------------
SINGAPORE -- 3.5%
512,875 Devel Bank of Singapore....... $ 6,382,380
1,000,000 Keppel Corp................... 8,909,001
325,000 Ocbc Foreign.................. 4,067,383
515,000 United O/S Bank Foreign....... 4,952,273
--------------
24,311,037
--------------
SPAIN -- 4.5%
27,500 Acerinox SA................... 2,773,280
245,000 Banco Bilbao Vizcaya.......... 8,799,622
94,000 Empresa Nac de Electricidad... 5,307,635
600,000 Iberdrola SA.................. 5,473,823
160,000 Repsol........................ 5,260,000
30,000 Repsol SA..................... 980,110
175,000 Telefonica de Espana.......... 2,416,372
--------------
31,010,842
--------------
SWEDEN -- 1.9%
125,000 Astra A Free A Shares......... 4,979,855
256,500 Avesta Sheffield.............. 2,255,818
*246,800 BT Industries 144A............ 2,708,500
258,000 Stora Koppabergs.............. 3,025,347
--------------
12,969,520
--------------
SWITZERLAND -- 3.0%
9,200 Ciba Geigy AG................. 8,096,766
7,850 Nestle SA..................... 8,685,164
7,100 Sulzer AG-Part Cert........... 3,786,092
--------------
20,568,022
--------------
THAI BAT -- 0.7%
3,270,000 Bangkok Metro Bank............ 3,050,615
150,000 Bangkok Bank.................. 1,822,152
--------------
4,872,767
--------------
UNITED KINGDOM -- 8.4%
252,000 Associated British Food....... 1,442,793
506,000 Bass.......................... 5,644,903
5,152,000 Bet PLC....................... 10,152,118
621,000 Body Shop International....... 1,464,577
1,650,000 British Steel PLC............. 4,166,602
782,000 British Telecom Co. PLC....... 4,295,237
897,000 Northern Foods PLC............ 2,379,938
516,234 Powergen PLC.................. 4,265,235
1,000,000 Rank Organization............. 7,230,411
780,000 Royal Insurance Holding....... 4,623,119
853,000 Tomkins PLC................... 3,732,288
2,270,000 Vodafone Group PLC............ 8,118,464
--------------
57,515,685
--------------
Total common stocks........... $ 646,020,448
--------------
--------------
NON-CONVERTIBLE PREFERRED
STOCKS -- 0.7%
118,000 Nokia Preferred ADR........... 4,587,250
--------------
--------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

98
<PAGE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
SHORT-TERM SECURITIES -- 4.9%
$23,735,000 Repurchase Agreement dated
12/29/95 with Swiss Bank
Corp. 5.850% due 01/02/96;
maturity amount $23,750,428;
(Collateralized by
$15,450,000 U.S. Treasury
Bond 10.625% due 08/15/15).. $ 23,735,000
10,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $10,006,889;
(Collateralized by
$11,568,000 Federal National
Mortgage Association 9.000%
due 03/01/25)............... 10,000,000
--------------
Total short-term securities... 33,735,000
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 94.1 % $ 646,020,448
Total non-convertible preferred stocks....... 0.7 4,587,250
Total short term securities.................. 4.9 33,735,000
------ --------------
Total investment in securities
**(Identified cost $620,491,037)........... 99.7% 684,342,698
Excess of cash and receivables over
liabilities................................ 0.3 2,132,507
------ --------------
Net Assets (Applicable to $1.30569 per share
based on 525,757,191 shares outstanding)... 100.0% $ 686,475,205
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY
Capital stock, par value $.10 per share authorized
1,500,000,000 shares, outstanding 525,757,191
shares............................................. $ 52,575,719
Capital surplus...................................... 549,706,663
Undistributed net realized gain on investments....... 20,401,743
Unrealized appreciation of investments............... 63,851,658
Unrealized (depreciation) on forward currency
contracts.......................................... (58,771)
Unrealized (depreciation) on translation on other
assets and liabilities in foreign currencies....... (1,807)
--------------
Net assets, applicable to shares outstanding......... $ 686,475,205
--------------
--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.

FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1995

<TABLE>
<CAPTION>
TOTAL AGGREGATE DELIVERY UNREALIZED
DESCRIPTION VALUE FACE VALUE DATE APPREC./(DEPREC.)
- ------------------------------ ---------- ---------- --------- -----------------
<S> <C> <C> <C> <C>
Swiss Franc (Sell) $7,540,586 $7,500,000 03/27/96 $ (40,586)
French Frank (Sell) 12,503,298 12,500,000 05/10/96 (3,298)
Dutch Guilder (Sell) 5,014,887 5,000,000 03/27/96 (14,887)
--------
$ (58,771)
--------
--------
</TABLE>

99
<PAGE>
HARTFORD DIVIDEND AND GROWTH FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

SHARES MARKET VALUE
- ----------- --------------
<C> <S> <C>
COMMON STOCKS -- 95.5%
COMPUTER & OFFICE EQUIPMENT --
1.5%
28,400 Xerox......................... $ 3,890,800
--------------
CONSUMER DURABLES -- 1.5%
136,200 Ford Motor Co................. 3,949,800
--------------
CONSUMER NON-DURABLES -- 9.7%
37,400 Avon Products................. 2,819,025
26,700 Colgate Palmolive Co.......... 1,875,675
29,100 Eastman Kodak................. 1,949,700
129,150 Flowers Industries, Inc....... 1,565,944
114,500 Interstate Bakeries........... 2,561,937
42,700 Kimberly Clark Corp........... 3,533,425
94,900 Philip Morris................. 8,588,450
88,800 RJR Nabisco Holdings.......... 2,741,700
4,270 Schweitzer Mauduit
International............... 98,744
4,000 Universal Corp................ 97,500
--------------
25,832,100
--------------
ENERGY AND SERVICES -- 12.0%
89,400 Amoco Corporation............. 6,425,625
73,400 Exxon......................... 5,881,175
78,400 Pennzoil Co................... 3,312,400
92,100 Phillips Petroleum............ 3,142,912
82,300 Texaco Inc.................... 6,460,550
188,300 USX-Marathon Group............ 3,671,850
102,800 Unocal Corp................... 2,994,050
--------------
31,888,562
--------------
FINANCIAL SERVICES -- 15.7%
93,600 Allstate Corp................. 3,849,300
77,200 American Express Co........... 3,194,150
70,000 Citicorp...................... 4,707,500
191,200 First Bank System Inc......... 9,488,300
143,700 First Union Corporation....... 7,993,313
125,600 Nationsbank Corp.............. 8,744,900
39,500 Patriot American
Hospitality................. 1,017,125
76,000 Safeco Corp................... 2,622,000
--------------
41,616,588
--------------
HEALTH CARE -- 16.7%
71,100 American Home Products
Corp........................ 6,896,700
81,100 C R Bard Inc.................. 2,615,475
94,500 Baxter International.......... 3,957,187
70,500 Bristol-Myers Squibb
Company..................... 6,054,188
137,600 Merck & Co., Inc.............. 9,047,200
124,000 Pfizer, Inc................... 7,812,000
84,300 Warner-Lambert Company........ 8,187,638
--------------
44,570,388
--------------
INDUSTRIAL MATERIALS -- 6.6%
55,400 Albemarle Corp................ 1,073,375
34,000 Dow Chemical.................. 2,392,750
37,400 Dupont EI De Nemours.......... 2,613,325
97,400 International Paper Co........ 3,689,025
63,200 Nalco Chemical Co............. 1,903,900
36,400 PPG Industries, Inc........... 1,665,300
57,900 Weyerhaeuser Company.......... 2,504,175

INDUSTRIAL MATERIALS --
(CONTINUED)
52,000 Witco Chemical Corp........... $ 1,521,000
--------------
17,362,850
--------------
MANUFACTURING -- 8.3%
16,000 Cooper Industries............. 588,000
7,200 Eaton Corp.................... 386,100
87,630 General Electric.............. 6,309,360
53,200 Minnesota Mining &
Manufacturing Co............ 3,524,500
78,500 Northrop Grumman Corp......... 5,024,000
29,800 Sundstrand Corp............... 2,097,175
22,600 TRW, Inc...................... 1,751,500
46,400 Tenneco, Inc.................. 2,302,600
--------------
21,983,235
--------------
MEDIA & SERVICES -- 1.5%
19,700 Dun & Bradstreet Corp......... 1,275,575
43,500 Gannett Co., Inc.............. 2,669,813
--------------
3,945,388
--------------
REAL ESTATE -- 0.1%
9,600 Starwood Lodging Trust........ 285,600
--------------
RETAIL -- 3.3%
92,500 May Department Stores Co...... 3,908,125
102,400 Mercantile Stores, Inc........ 4,736,000
--------------
8,644,125
--------------
UTILITY -- 18.6%
50,800 AT&T Corp..................... 3,289,300
24,800 Bell Atlantic Corp............ 1,658,500
63,000 Bell South Corp............... 2,740,500
29,100 CMS Energy Corp............... 869,362
64,700 Carolina Power And Lighting... 2,232,150
51,900 Cincinnati Bell Inc........... 1,803,525
61,500 Cinergy Corp.................. 1,883,438
23,400 Comsat Corp................... 435,825
71,300 DPL Inc....................... 1,764,675
54,250 DQE Inc....................... 1,668,188
31,100 Equitable Resources........... 971,875
54,000 Florida Power & Light Group
Inc......................... 2,504,250
47,500 Frontier Corp................. 1,425,000
39,700 GTE Corp...................... 1,746,800
43,000 N E Electric System........... 1,703,875
53,600 NYNEX Corporation............. 2,894,400
30,800 Pacific Gas & Electric
Company..................... 873,950
118,800 Pinnacle West Cap............. 3,415,500
45,600 Public Service Co. Of
Colorado.................... 1,613,100
14,400 Questar Corp.................. 482,400
69,300 SBC Communications Inc........ 3,984,750
32,600 Sierra Pacific Res............ 762,025
35,000 Sprint Corp................... 1,395,625
114,900 Texas Utilities............... 4,725,262
24,500 Union Electric Co............. 1,022,875
89,900 Westcoast Energy Inc.......... 1,314,787
--------------
49,181,937
--------------
Total common stocks........... $ 253,151,373
--------------
--------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

100
<PAGE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- --------------
<C> <S> <C>
CONVERTIBLE CORPORATE BONDS -- 0.8%
TRANSPORTATION
AMR Corp.
$ 2,090,000 6.125% due 11/01/24......... $ 2,163,150
--------------
--------------
SHORT-TERM SECURITIES -- 6.8%
13,055,000 Repurchase Agreement dated
12/29/95 with Aubrey Lanston
5.900% due 01/02/96;
maturity amount $13,063,558;
(Collateralized by
$13,055,000 U.S. Treasury
Note 5.125% due 12/31/98)... 13,055,000
5,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $5,003,444;
(Collateralized by
$5,784,000 Federal National
Mortgage Association 9.000%
due 03/1/25)................ 5,000,000
--------------
Total short-term securities... $ 18,055,000
--------------
--------------
</TABLE>

<TABLE>

<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks 95.5% $253,151,373
Total convertible corporate bonds............ 0.8 2,163,150
Total short-term securities.................. 6.8 18,055,000
------ ------------
Total investment in securities
**(Identified cost $243,108,084)........... 103.1% 273,369,523
Excess of liabilities over cash and
receivables................................ (3.1) (8,299,056)
------ ------------
Net assets (Applicable to $1.31702 per share
based on 201,265,170 shares outstanding)... 100.0% $265,070,467
------ ------------
------ ------------

SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
750,000,000 shares; outstanding 201,265,170
shares............................................. $ 20,126,517
Capital surplus...................................... 208,122,925
Undistributed net realized gain on investments....... 6,559,586
Unrealized appreciation of investments............... 30,261,439
------------
Net assets, applicable to shares outstanding......... $265,070,467
------------
------------
</TABLE>

* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.

101
<PAGE>
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- -------------
<C> <S> <C>
COMMON STOCKS -- 63.3%
ARGENTINA -- 0.6%
4,750 Baesa ADR..................... $ 97,969
2,000 Telefonica De Argentina-ADR... 54,500
2,000 YPF S.A. Sponsored ADR........ 43,250
-------------
195,719
-------------
AUSTRALIA -- 3.3%
7,422 Advance BK Australia.......... 59,427
28,750 Amcor Ltd..................... 202,871
39,608 Australia & New Zealand
Banking..................... 185,639
20,549 Broken Hill Proprietary....... 290,005
5,369 National Australia Bank....... 48,257
4,500 Qantas Air ADR 144A........... 74,813
36,000 Westpac Banking Corp.......... 159,370
-------------
1,020,382
-------------
AUSTRIAN -- 0.6%
1,400 EVN........................... 191,828
-------------
BELGIUM -- 0.3%
2,250 Delhaize Le Lion.............. 92,972
-------------
BRAZIL -- 0.4%
7,250 Electrobras On ADR............ 98,781
4,000 Usiminas Siderurg Minas-ADR... 32,512
-------------
131,293
-------------
CANADA -- 1.0%
17,500 Canadian Pacific Ltd.......... 317,188
-------------
CHILE -- 0.3%
1,000 Compania de Telefon
Chile-ADR................... 82,875
-------------
DENMARK -- 1.3%
8,000 Tele Danmark.................. 221,000
3,500 UniDanmark A Registered....... 173,068
-------------
394,068
-------------
FINLAND -- 0.7%
*3,000 Metsa-Serla Oy B.............. 92,221
55,000 Unitas Bank Ltd............... 138,790
-------------
231,011
-------------
FRANCE -- 5.3%
3,500 Bank National Paris 144A...... 157,638
1,000 Canal Plus SA................. 187,171
450 Euro RSCG Worldwide........... 33,030
403 Groupe Danone................. 66,392
700 Peugeot SA.................... 92,199
3,600 Renault....................... 103,495
13,000 Rhone-Poulenc................. 278,045
*1,482 Saint Gobain.................. 163,774
1,337 Societe Generale.............. 164,868
1,700 Societe Nationale Elf
Acquitaine.................. 125,058
1,000 Technip....................... 68,711
3,293 Total SA...................... 221,901
-------------
1,662,282
-------------
GERMANY -- 3.8%
700 Bayer AG...................... 185,369
150 Beiersdorf.................... 102,747
245 Daimler-Benz AG Dem........... 123,352
580 Degussa....................... 194,812
3,250 Deutsche Bank AG Dem.......... 153,912
280 Karstadt AG................... 114,492
450 Mannesmann AG................. 142,855
4,000 Veba.......................... 170,792
-------------
1,188,331
-------------
HONG KONG -- 2.7%
6,000 China Light Power............. $ 27,624
56,759 Hong Kong Telecommunica....... 101,297
40,000 Hutchison Whampoa Ltd......... 243,647
28,000 Sun Hung Kai.................. 229,033
31,000 Swire Pacific Ltd............. 240,543
-------------
842,144
-------------
INDIA -- 0.1%
10,000 Indo Gulf GDR................. 14,503
2,000 Reliance Inds GDS............. 23,547
-------------
38,050
-------------
INDONESIA -- 0.4%
19,000 Jaya Real Property............ 51,509
10,000 Jaya Real Property-Foreign.... 27,110
12,000 Semen Gresik.................. 33,581
-------------
112,200
-------------
ITALY -- 1.5%
100,000 Banca Comml Italiana.......... 213,543
58,500 Stet.......................... 165,458
62,000 Telecom Italia SPA............ 96,466
-------------
475,467
-------------
JAPAN -- 17.3%
7,000 Canon Sales................... 186,116
15,000 Chichibu Oneda Cement......... 79,909
24,000 Chugai Pharmaceutical......... 229,489
11,000 Dai Nippon Printing........... 186,116
10 East Japan Railway............ 48,535
6,000 Home Wide Corp................ 70,773
3,000 Ito-Yokado Ltd................ 184,473
11,000 Kajima Corp................... 108,479
34,000 Kawasaki Heavy Industries..... 156,144
33,000 Kawasaki Steel Corp........... 114,860
27,000 Keio Teito Electric Rai....... 156,889
2,000 Kyoritsu Air Tech............. 21,657
2,000 Mabuchi Motor................. 124,142
9,000 Matsushita Electric Co........ 146,186
10,000 Minebea Co., Ltd.............. 83,728
6,000 Mitsubishi Bank Ltd........... 140,965
18,000 Mitsubishi Corp............... 221,019
3,000 Mitsui Petrochemical.......... 24,509
2,000 Murata Manufacturing Co....... 73,480
3,000 Nihon Jumbo Co., Ltd.......... 104,709
12,000 Nippon Express................ 115,324
20 Nippon Telegraph &
Telephone................... 161,462
*59,000 NKK Corporation............... 158,581
10,000 Nomura Securities............. 217,538
2,000 Orix Corp..................... 82,181
700 Riso Kagaku................... 58,948
15,000 Sakura Bank................... 189,984
8,000 Sankyo........................ 179,445
7,000 Sanwa Bank Ltd................ 142,125
2,000 Sanyo Shinpan Financial Co.... 164,362
3,000 Secom......................... 208,257
2,000 Seven Eleven.................. 140,772
3,000 Shimamura Co. Ltd............. 115,730
100 Shohkoh Fund.................. 18,757
4,000 Showa Corporation............. 30,591
2,000 Sony Corp..................... 119,694
17,000 Sumitomo Marsh & Fire......... 139,379
22,000 Sumitomo Realty............... 155,274
11,000 Sumitomo Trust & Banking...... 155,274
11,000 Toda Construction Co.......... 95,185
4,000 Tohoku Electric Power......... 96,297
17,000 Tokio Marine & Fire
Insurance................... 221,889
100 Tsutsumi Jewelry.............. 4,999
-------------
5,434,226
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

102
<PAGE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MALAYSIA -- 1.0%
21,000 Resort World.................. $ 112,454
74,000 Sime Darby Berhad............. 196,677
-------------
309,131
-------------
MEXICO -- 0.6%
3,000 Cemex SA...................... 42,911
20,000 Femsa SA...................... 46,263
*9,000 Grupo Carso SA................ 48,070
7,650 Transportation-Maritima....... 57,377
-------------
194,621
-------------
NETHERLANDS -- 2.7%
7,500 Elesevier..................... 99,782
5,325 International Nederlanden..... 354,890
3,000 Vendex International.......... 88,965
1,350 Unilever...................... 189,260
700 Verenigd Bezit................ 95,872
-------------
828,769
-------------
NEW ZEALAND -- 1.2%
31,000 Air New Zealand Class B....... 105,394
268,000 Brierley Investments.......... 212,017
28,000 Carter Holt................... 60,411
-------------
377,822
-------------
NORWAY -- 2.5%
33,200 Christiana Bank............... 77,501
5,344 Hafslund Nyco................. 139,500
4,500 Kvaerner...................... 158,991
3,650 Orkla A/S A................... 181,349
17,500 Saga Petro.................... 233,241
-------------
790,582
-------------
PHILIPPINES -- 0.7%
12,000 Philippine National........... 132,926
*80,000 Pilipino Telephone............ 80,978
-------------
213,904
-------------
PORTUGAL -- 0.2%
*3,000 Portugal Telecom S.A. ADR..... 57,000
-------------
SINGAPORE -- 2.4%
8,000 Development Bank of
Singapore................... 99,555
34,000 Keppel Corp................... 302,906
14,000 OCBC Foreign.................. 175,210
19,000 United Overseas Bank.......... 182,705
-------------
760,376
-------------
SPAIN -- 3.5%
7,850 Repsol........................ 258,069
3,150 Empresa Nacional De........... 180,338
1,750 Acerinox SA................... 176,481
6,100 Banco Bilbao Vizcaya.......... 219,093
1,000 Empresa Nac de Elec........... 56,464
10,000 Iberdrola SA.................. 91,230
8,000 Telefonica de Espana.......... 110,464
-------------
1,092,139
-------------
SWEDEN -- 1.1%
2,500 Astra A Free.................. 99,597
7,700 Avesta Sheffield.............. 67,719
*8,000 BT Industries 144A............ 87,796
*7,000 Stora Koppabergs A............ 82,083
-------------
337,195
-------------
SWITZERLAND -- 1.9%
195 Ciba Geigy AG................. 171,616
225 Nestle SA..................... 248,938
315 Sulzer AG-Part - CERT......... 167,975
-------------
588,529
-------------
THAI-BAT -- 0.6%
75,000 Bangkok Metro Bank............ $ 69,968
3,000 Bangkok Bank.................. 36,443
5,000 Siam Commerical............... 65,899
-------------
172,310
-------------
UNITED KINGDOM -- 5.3%
18,000 Bass.......................... 200,807
14,400 Body Shop International....... 33,961
153,000 Bet PLC....................... 301,490
11,000 British Telecom Co. PLC....... 60,419
70,000 British Steel PLC............. 176,765
4,000 Associated Brit Food.......... 22,901
24,000 Northern Foods PLC............ 63,677
12,147 Powergen PLC.................. 100,358
80,000 Vodafone Group PLC............ 286,113
25,000 Rank Organization............. 180,760
25,500 Royal Insurance Holding....... 151,141
20,000 Tomkins PLC................... 87,510
-------------
1,665,902
-------------
Total Common Stocks........... $ 19,798,316
-------------
-------------
NON-CONVERTIBLE PREFERRED STOCK -- 0.5%
CONSUMER DURABLES
4,000 Nokia PFD ADS................. 155,500
-------------
-------------

PRINCIPAL
AMOUNT
- --------------
FOREIGN GOVERNMENT BONDS -- 27.7%
AUSTRALIA -- 1.1%
$ 415,000 Australian Commonwealth
9.750% due 03/15/02..... 337,345
-------------
AUSTRIA -- 0.5%
Austria Republic
1,500,000 6.875% due 06/20/05..... 152,849
-------------
BELGIUM -- 1.3%
Belgium Government
5,000,000 7.000% due 05/15/06..... 171,617
3,500,000 7.250% due 04/29/04..... 123,949
3,050,000 9.000% due 06/27/01..... 118,746
-------------
414,312
-------------
CANADA -- 2.1%
Canada Government
340,000 6.500% due 06/01/04..... 240,783
100,000 8.000% due 06/01/23..... 76,805
225,000 9.000% due 12/01/04..... 185,780
200,000 9.750% due 06/01/01..... 166,825
-------------
670,193
-------------

DENMARK -- 1.2%
910,000 8.000% due 06/15/03 -
03/15/06............... 173,087
1,015,000 9.000% due 11/15/98..... 198,806
-------------
371,893
-------------

FINLAND -- 0.9%
Finnish Government
1,000,000 10.000% due 09/15/01.... 266,493
-------------

FRANCE -- 2.6%
France O.A.T.
926,000 5.500% due 04/25/04..... 176,493
2,166,000 8.500% due 11/25/02..... 494,489
626,000 9.500% due 01/25/01..... 147,227
-------------
818,209
-------------

GERMANY -- 3.1%
German Government
325,000 6.250% DUE 01/04/24..... 210,527
</TABLE>

103

<PAGE>
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>

FOREIGN GOVERNMENT BONDS -- (CONTINUED)
GERMANY -- (CONTINUED)
300,000 7.500% due 11/11/04..... 229,777

German Federal Unity
675,000 8.500% due 02/20/01..... $ 538,263
-----------
978,567
-----------

ITALY -- 2.8%
425,000,000 9.000% due 10/01/03....... 246,299
1,055,000,000 8.500% due 01/01/99 -
08/01/99................ 635,049
------------
881,348
------------

JAPAN -- 5.9%
European Investment Bank
4,000,000 6.625% due 03/15/00...... 46,166
Japan 145 Government National
146,000,000 5.500% due 03/20/02...... 1,652,822
Japan - 20
12,000,000 5.600% due 09/20/12...... 143,610
------------
1,842,598
------------
NETHERLANDS -- 0.8%
Netherlands Government
100,000 5.750% due 01/15/04....... 61,797
80,000 7.000% due 06/15/05....... 53,192
175,000 9.000% due 05/15/00....... 125,802
------------
240,791
------------
NEW ZEALAND -- 0.6%
New Zealand Government
265,000 8.000% due 07/15/98...... 174,151
------------

SPAIN -- 1.2%
Spanish Government
13,700,000 10.000% due 02/28/05...... 114,177
28,500,000 12.250% due 03/25/00...... 256,074
------------
370,251
------------

SWEDEN -- 1.1%
Swedish Government
2,200,000 10.250% due 05/05/00..... 354,997
------------

UNITED KINGDOM -- 2.5%
United Kingdom Treasury Gilt
180,000 7.000% due 11/06/01...... 279,635
305,000 8.000% due 06/10/03...... 494,679
------------
774,314
------------
Total foreign government
bonds.................... $8,648,311
------------
------------
SHORT-TERM SECURITIES -- 9.7%
$ 2,030,000 Repurchase Agreement dated
12/29/95 with Swiss Bank
Corp. 5.850% due 01/02/96;
maturity $2,031,320;
(Collateralized by
$1,755,000 US Treasury
Bond 7.500% due 11/15/16). $2,030,000

1,000,000 Repurchase Agreement
dated 12/29/95 with
Morgan Stanley 6.200%
due 01/02/96; maturity
$1,000,689; (Collateralized
by $1,125,000 Federal
National Mortgage
Association 9.000% due
03/01/25)................ 1,000,000
------------
Total short-term
securities.............. $3,030,000
------------
------------
</TABLE>

<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total Common Stocks.......................... 63.3 % $ 19,798,316
Total Non-Convertible Preferred Stock........ 0.5 155,500
Total Foreign Government Bonds............... 27.7 8,648,311
Total Short Term Securities.................. 9.7 3,030,000
------ --------------
Total investment in securities
**(Identified cost $30,132,432)............ 101.2% 31,632,127
Excess of liabilities over cash and
receivables................................ (1.2) (367,962 )
------ --------------
Net Assets (Applicable to $1.10903 per share
based on 28,190,650 shares outstanding).... 100.0% $ 31,264,165
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share authorized
750,000,000 shares, 28,190,650 outstanding
shares............................................. $ 2,819,065
Capital surplus...................................... 26,945,184
Undistributed net realized (loss) on investments..... (3,983 )
Unrealized appreciation of investments............... 1,499,263
Unrealized appreciation on forward currency
contracts.......................................... 5,374
Unrealized depreciation on translation on other
assets and liabilities in foreign currencies....... (738 )
--------------
Net assets, applicable to shares outstanding......... $ 31,264,165
--------------
--------------
</TABLE>

* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.

FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1995

<TABLE>
<CAPTION>
UNREALIZED
AGGREGATE DELIVERY APPRECIATION/
TOTAL VALUE FACE VALUE DATE (DEPRECIATION)
----------- ----------- --------- -------------
<S> <C> <C> <C> <C>
German Deutschemarks (Buy) $ 116,580 $ 115,807 01/08/96 773
Austrian Schilling (Sell) 152,506 152,778 01/10/96 272
Australian Dollars (Sell) 333,572 334,459 01/10/96 887
Belgian Francs (Sell) 413,893 417,579 01/10/96 3,686
Canadian Dollars (Sell) 662,563 662,787 01/10/96 224
German Deutschemarks (Sell) 977,927 974,489 03/19/96 (3,438)
Danish Krone (Sell) 368,858 366,995 01/10/96 (1,862)
Spanish Pesetas (Sell) 362,957 358,014 01/10/96 (4,944)
Finnish Markkas (Sell) 265,983 264,642 01/17/96 (1,341)
French Francs (Sell) 817,572 807,349 01/10/96 (10,223)
British Pounds (Sell) 767,500 756,360 01/10/96 (11,140)
Italian Lira (Sell) 867,129 857,241 01/10/96 (9,888)
Japanese Yen (Sell) 1,872,364 1,911,948 01/10/96 39,583
Dutch Guilders (Sell) 241,652 240,450 03/19/96 (1,201)
Swedish Kronas (Sell) 351,622 355,607 01/10/96 3,985
-------------
5,374
-------------
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

104
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS,
STATEMENT OF CHANGES IN NET ASSETS,
NOTES TO FINANCIAL STATEMENTS
AND FINANCIAL HIGHLIGHTS
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<CAPTION>
HARTFORD HARTFORD HVA HARTFORD
BOND STOCK MONEY MARKET ADVISERS
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
-------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ -- $ 34,303,856 $ -- $ 52,931,923
Interest............... 19,767,803 5,642,049 18,669,552 97,454,258
Less: Foreign tax
withheld.............. -- (36,960) -- (42,320)
-------------- ------------- ------------ -------------
Total income......... 19,767,803 39,908,945 18,669,552 150,343,861
-------------- ------------- ------------ -------------
EXPENSES:
Investment advisory
services.............. 906,000 4,134,925 762,534 16,044,763
Administrative
services.............. 491,868 2,586,517 542,895 6,244,398
Accounting services.... 26,732 124,381 34,341 325,104
Custodian fees......... 11,621 20,897 4,563 14,335
Board of directors..... 2,648 12,370 3,423 32,334
Other.................. 37,458 143,590 35,764 374,525
-------------- ------------- ------------ -------------
Total expenses....... 1,476,327 7,022,680 1,383,520 23,035,459
-------------- ------------- ------------ -------------
Net investment
income................ 18,291,476 32,886,265 17,286,032 127,308,402
-------------- ------------- ------------ -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 6,010,729 80,821,093 -- 97,284,118
Net realized gain
(loss) on futures
contracts............. -- -- -- --
Net realized gain
(loss) on options
contracts............. -- -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 22,790,429 308,861,831 -- 649,451,880
-------------- ------------- ------------ -------------
Net gain (loss) on
investments........... 28,801,158 389,682,924 -- 746,735,998
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 47,092,634 $ 422,569,189 $17,286,032 $874,044,400
-------------- ------------- ------------ -------------
-------------- ------------- ------------ -------------
</TABLE>

* From inception, March 1, 1995, to December 31, 1995.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

106
<PAGE>
<TABLE>
<CAPTION>
HARTFORD
U.S. HARTFORD HARTFORD HARTFORD HARTFORD
GOVERNMENT CAPITAL MORTGAGE HARTFORD INTERNATIONAL DIVIDEND
MONEY MARKET APPRECIATION SECURITIES INDEX OPPORTUNITIES AND GROWTH
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
------------ ------------- ------------- ----------- ------------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ -- $ 15,430,064 $ -- $ 6,340,261 $13,859,003 $4,362,923
Interest............... 577,594 11,141,268 22,005,900 59,787 3,048,459 494,730
Less: Foreign tax
withheld.............. -- (387,564) -- (31,097) (2,185,709) (6,663)
------------ ------------- ------------- ----------- ------------------ -----------
Total income......... 577,594 26,183,768 22,005,900 6,368,951 14,721,753 4,850,990
------------ ------------- ------------- ----------- ------------------ -----------
EXPENSES:
Investment advisory
services.............. 24,282 7,715,873 790,058 447,326 3,213,660 757,373
Administrative
services.............. 16,998 2,814,856 553,041 391,411 1,045,064 230,541
Accounting services.... 1,036 123,003 33,072 16,914 59,753 5,583
Custodian fees......... 10,947 60,354 23,581 (8,132) 727,012 13,009
Board of directors..... 104 12,272 3,264 1,679 5,977 566
Other.................. 1,591 145,960 68,954 21,863 85,826 11,107
------------ ------------- ------------- ----------- ------------------ -----------
Total expenses....... 54,958 10,872,318 1,471,970 871,061 5,137,292 1,018,179
------------ ------------- ------------- ----------- ------------------ -----------
Net investment
income................ 522,636 15,311,450 20,533,930 5,497,890 9,584,461 3,832,811
------------ ------------- ------------- ----------- ------------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... -- 127,384,090 5,901,957 461,701 21,336,447 6,559,586
Net realized gain
(loss) on futures
contracts............. -- 18,046,253 39,780 6,181,218 -- --
Net realized gain
(loss) on options
contracts............. -- -- 30,406 -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 236,498,480 20,383,033 55,250,626 48,716,467 31,161,907
------------ ------------- ------------- ----------- ------------------ -----------
Net gain (loss) on
investments........... -- 381,928,823 26,355,176 61,893,545 70,052,914 37,721,493
------------ ------------- ------------- ----------- ------------------ -----------
Net increase (decrease)
in net assets
resulting from
operations............ $522,636 $397,240,273 $ 46,889,106 $67,391,435 $79,637,375 $41,554,304
------------ ------------- ------------- ----------- ------------------ -----------
------------ ------------- ------------- ----------- ------------------ -----------

HARTFORD
INTERNATIONAL
ADVISERS
FUND, INC.*
-------------
<S> <C>
INVESTMENT INCOME:
Dividends.............. $ 227,008
Interest............... 372,698
Less: Foreign tax
withheld.............. (30,384)
-------------
Total income......... 569,322
-------------
EXPENSES:
Investment advisory
services.............. --
Administrative
services.............. 24,683
Accounting services.... 809
Custodian fees......... 55,080
Board of directors..... 100
Other.................. 14,872
-------------
Total expenses....... 95,544
-------------
Net investment
income................ 473,778
-------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 473,990
Net realized gain
(loss) on futures
contracts............. --
Net realized gain
(loss) on options
contracts............. --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 1,503,899
-------------
Net gain (loss) on
investments........... 1,977,889
-------------
Net increase (decrease)
in net assets
resulting from
operations............ $2,451,667
-------------
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

107
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<CAPTION>
HVA
HARTFORD HARTFORD MONEY HARTFORD
BOND STOCK MARKET ADVISERS
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
-------------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 18,291,476 $ 32,886,265 $17,286,032 $127,308,402
Net realized gain
(loss) on security
transactions.......... 6,010,729 80,821,093 -- 97,284,118
Net realized gain
(loss) on futures
contracts............. -- -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 22,790,429 308,861,831 -- 649,451,880
-------------- ------------- ----------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... 47,092,634 422,569,189 17,286,032 874,044,400
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (18,291,476) (32,886,265) (17,286,032) (127,308,402)
Net realized gain on
security
transactions.......... -- (47,489,646) -- (36,509,652)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 227,913,447 668,241,451 1,501,677,031 462,346,769
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 18,291,476 80,375,915 17,286,033 163,818,063
Cost of Fund shares
redeemed.............. (179,969,221) (377,085,012) (1,500,719,153) (107,656,490)
-------------- ------------- ----------- -------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 66,235,702 371,532,354 18,243,911 518,508,342
-------------- ------------- ----------- -------------
Total increase
(decrease) in net
assets.............. 95,036,860 713,725,632 18,243,911 1,228,734,688
NET ASSETS:
Beginning of period.... 247,458,087 1,163,157,982 321,464,672 3,034,034,061
-------------- ------------- ----------- -------------
End of period.......... $342,494,947 $1,876,883,614 $339,708,583 4$,262,768,749
-------------- ------------- ----------- -------------
-------------- ------------- ----------- -------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 230,010,396 209,187,665 1,501,677,031 249,891,294
Shares issued upon
reinvestment of
dividends and capital
gains................. 18,548,321 27,804,998 17,286,033 93,801,847
Shares redeemed........ (182,704,340) (120,045,047) (1,500,719,153) (62,784,455)
-------------- ------------- ----------- -------------
Net increase (decrease)
in shares
outstanding........... 65,854,377 116,947,616 18,243,911 280,908,686
-------------- ------------- ----------- -------------
-------------- ------------- ----------- -------------
</TABLE>

* From inception, March 1, 1995, to December 31, 1995.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

108
<PAGE>
<TABLE>
<CAPTION>
HARTFORD U.S. HARTFORD HARTFORD HARTFORD HARTFORD
GOVERNMENT CAPITAL MORTGAGE HARTFORD INTERNATIONAL DIVIDEND
MONEY MARKET APPRECIATION SECURITIES INDEX OPPORTUNITIES AND GROWTH
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
-------------------- ------------- ------------- ----------- ------------------ -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $522,636 $ 15,311,450 $ 20,533,930 $ 5,497,890 $ 9,584,461 $3,832,811
Net realized gain
(loss) on security
transactions.......... -- 127,384,090 5,901,957 461,701 21,336,447 6,559,586
Net realized gain
(loss) on futures
contracts............. -- 18,046,253 70,186 6,181,218 -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 236,498,480 20,383,033 55,250,626 48,716,467 31,161,907
----------- ------------- ------------- ----------- ------------------ -----------
Net increase
(decrease) in net
assets resulting
from operations..... 522,636 397,240,273 46,889,106 67,391,435 79,637,375 41,554,304
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (522,636) (15,311,450) (20,533,930) (5,497,890) (9,584,461) (3,832,811)
Net realized gain on
security
transactions.......... -- (63,784,485) -- (65,176) (5,087,710) --
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 3,856,273 1,268,592,773 26,917,379 473,229,846 97,286,805 174,323,932
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 522,636 79,095,935 20,533,929 5,563,067 14,672,173 3,757,111
Cost of Fund shares
redeemed.............. (3,927,941) (666,584,981) (50,387,738) (380,028,762) (54,214,080) (5,797,586)
----------- ------------- ------------- ----------- ------------------ -----------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 450,968 681,103,727 (2,936,430) 98,764,151 57,744,898 172,283,457
----------- ------------- ------------- ----------- ------------------ -----------
Total increase
(decrease) in net
assets.............. 450,968 999,248,065 23,418,746 160,592,520 122,710,102 210,004,950
NET ASSETS:
Beginning of period.... 9,619,299 1,158,643,638 304,146,567 157,660,372 563,765,103 55,065,517
----------- ------------- ------------- ----------- ------------------ -----------
End of period.......... 10,$070,267 $2,157,891,703 $327,565,313 $318,252,892 $686,475,205 $265,070,467
----------- ------------- ------------- ----------- ------------------ -----------
----------- ------------- ------------- ----------- ------------------ -----------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 3,856,273 393,716,534 25,766,526 251,812,101 70,597,149 147,459,686
Shares issued upon
reinvestment of
dividends and capital
gains................. 522,636 28,381,165 19,717,253 3,055,911 12,477,963 3,182,667
Shares redeemed........ (3,927,941) (208,868,838) (48,682,017) (201,506,805) (45,827,064) (4,769,969)
----------- ------------- ------------- ----------- ------------------ -----------
Net increase (decrease)
in shares
outstanding........... 450,968 213,228,861 (3,198,238) 53,361,207 46,248,048 145,872,384
----------- ------------- ------------- ----------- ------------------ -----------
----------- ------------- ------------- ----------- ------------------ -----------

<CAPTION>
HARTFORD
INTERNATIONAL
ADVISERS
FUND, INC.*
-------------
<S> <C>
OPERATIONS:
Net investment
income................ $473,778
Net realized gain
(loss) on security
transactions.......... 473,990
Net realized gain
(loss) on futures
contracts............. --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 1,503,899
-------------
Net increase
(decrease) in net
assets resulting
from operations..... 2,451,667
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (473,778)
Net realized gain on
security
transactions.......... (477,974)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 30,838,557
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 478,342
Cost of Fund shares
redeemed.............. (1,552,649)
-------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 29,764,250
-------------
Total increase
(decrease) in net
assets.............. 31,264,165
NET ASSETS:
Beginning of period.... --
-------------
End of period.......... 31,$264,165
-------------
-------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 29,196,317
Shares issued upon
reinvestment of
dividends and capital
gains................. 434,386
Shares redeemed........ (1,440,053)
-------------
Net increase (decrease)
in shares
outstanding........... 28,190,650
-------------
-------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

109

<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994

<TABLE>
<CAPTION>
HARTFORD HARTFORD HVA
BOND STOCK MONEY MARKET
FUND, INC. FUND, INC. FUND, INC.
---------------- --------------- ---------------
<S> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 15,499,377 $ 23,456,619 $ 11,242,769
Net realized gain
(loss) on security
transactions.......... (15,502,624) 47,489,646 --
Net realized gain
(loss) on futures
contracts............. (1,484,713) -- --
Net realized gain
(loss) on options
contracts............. -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (8,713,699) (91,880,275) --
---------------- --------------- ---------------
Net increase (decrease)
in net assets
resulting from
operations............ (10,201,659) (20,934,010) 11,242,769
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (15,499,377) (23,456,619) (11,242,769)
Net realized gain on
security
transactions.......... (4,467,655) (59,838,405) --
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 321,606,810 491,044,914 1,169,307,801
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 19,967,032 83,295,024 11,242,769
Cost of Fund shares
redeemed.............. (303,548,769) (275,377,788) (1,093,173,662)
---------------- --------------- ---------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 38,025,073 298,962,150 87,376,908
---------------- --------------- ---------------
Total increase
(decrease) in net
assets.............. 7,856,382 194,733,116 87,376,908
NET ASSETS:
Beginning of period.... 239,601,705 968,424,866 234,087,764
---------------- --------------- ---------------
End of period.......... $ 247,458,087 $ 1,163,157,982 $ 321,464,672
---------------- --------------- ---------------
---------------- --------------- ---------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 324,129,384 170,123,593 1,169,307,801
Shares issued upon
reinvestment of
dividends and capital
gains................. 20,471,697 28,261,576 11,242,769
Shares redeemed........ (306,837,163) (95,662,565) (1,093,173,662)
---------------- --------------- ---------------
Net increase (decrease)
in shares
outstanding........... 37,763,918 102,722,604 87,376,908
---------------- --------------- ---------------
---------------- --------------- ---------------
</TABLE>

* From inception, March 8, 1994, to December 31, 1994.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

110
<PAGE>
<TABLE>
<CAPTION>
HARTFORD
U.S. HARTFORD HARTFORD HARTFORD
HARTFORD GOVERNMENT CAPITAL MORTGAGE HARTFORD INTERNATIONAL
ADVISERS MONEY MARKET APPRECIATION SECURITIES INDEX OPPORTUNITIES
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
---------------- ------------ --------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 95,563,451 $ 343,046 $ 3,956,139 $ 22,008,530 $ 3,760,674 $ 6,563,325
Net realized gain
(loss) on security
transactions.......... 36,509,652 -- 65,960,774 (18,809,782) 303,039 8,495,707
Net realized gain
(loss) on futures
contracts............. -- -- (2,071,865) (40,932) 60,051 --
Net realized gain
(loss) on options
contracts............. -- -- -- 26,563 -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (211,113,159) -- (40,815,773) (9,086,028) (2,407,858) (25,853,182)
---------------- ------------ --------------- -------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ (79,040,056) 343,046 27,029,275 (5,901,649) 1,715,906 (10,794,150)
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (95,563,451) (343,046) (3,956,139) (22,008,530) (3,760,674) (6,563,325)
Net realized gain on
security
transactions.......... (75,830,481) -- (71,271,919) (1,593,324) -- --
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 753,833,772 3,263,991 882,948,421 19,488,680 94,987,497 311,466,613
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 171,393,932 343,046 75,228,058 23,601,854 3,638,667 6,509,276
Cost of Fund shares
redeemed.............. (67,309,913) (3,437,141) (530,237,732) (74,638,761) (79,317,298) (18,461,122)
---------------- ------------ --------------- -------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 857,917,791 169,896 427,938,747 (31,548,227) 19,308,866 299,514,767
---------------- ------------ --------------- -------------- ------------- -------------
Total increase
(decrease) in net
assets.............. 607,483,803 169,896 379,739,964 (61,051,730) 17,264,098 282,157,292
NET ASSETS:
Beginning of period.... 2,426,550,258 9,449,403 778,903,674 365,198,297 140,396,274 281,607,811
---------------- ------------ --------------- -------------- ------------- -------------
End of period.......... $ 3,034,034,061 $ 9,619,299 $ 1,158,643,638 $ 304,146,567 $ 157,660,372 $563,765,103
---------------- ------------ --------------- -------------- ------------- -------------
---------------- ------------ --------------- -------------- ------------- -------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 449,571,900 3,263,991 310,435,654 18,922,336 61,853,526 257,732,430
Shares issued upon
reinvestment of
dividends and capital
gains................. 102,233,951 343,046 25,754,762 23,146,211 2,385,383 5,455,472
Shares redeemed........ (41,310,436) (3,437,141) (186,291,460) (72,966,325) (51,476,702) (15,397,114)
---------------- ------------ --------------- -------------- ------------- -------------
Net increase (decrease)
in shares
outstanding........... 510,495,415 169,896 149,898,956 (30,897,778) 12,762,207 247,790,788
---------------- ------------ --------------- -------------- ------------- -------------
---------------- ------------ --------------- -------------- ------------- -------------

HARTFORD
DIVIDEND AND GROWTH
FUND, INC.*
-------------------
<S> <C>
OPERATIONS:
Net investment
income................ $ 709,451
Net realized gain
(loss) on security
transactions.......... 68,307
Net realized gain
(loss) on futures
contracts............. --
Net realized gain
(loss) on options
contracts............. --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (900,465)
-------------------
Net increase (decrease)
in net assets
resulting from
operations............ (122,707)
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (709,451)
Net realized gain on
security
transactions.......... (68,307)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 55,786,553
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 701,056
Cost of Fund shares
redeemed.............. (521,627)
-------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 55,965,982
-------------------
Total increase
(decrease) in net
assets.............. 55,065,517
NET ASSETS:
Beginning of period.... --
-------------------
End of period.......... $ 55,065,517
-------------------
-------------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 55,208,333
Shares issued upon
reinvestment of
dividends and capital
gains................. 696,988
Shares redeemed........ (512,536)
-------------------
Net increase (decrease)
in shares
outstanding........... 55,392,785
-------------------
-------------------
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

111
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995

1. ORGANIZATION:

Hartford Bond Fund, Inc., Hartford Stock Fund, Inc., HVA Money Market Fund,
Inc., Hartford Advisers Fund, Inc., Hartford U.S. Government Money Market
Fund, Inc., Hartford Capital Appreciation Fund, Inc. (formerly Hartford
Aggressive Growth Fund, Inc.), Hartford Mortgage Securities Fund, Inc.,
Hartford Index Fund, Inc., Hartford International Opportunities Fund, Inc.,
Hartford Dividend and Growth Fund, Inc., and Hartford International Advisers
Fund, Inc. (the Funds) are 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, as diversified open-ended
management investment companies.

Fund shares are made available to serve as the underlying investment media
of the variable annuity, variable life insurance and group pension contracts
issued by the affiliated life insurance company Separate Accounts of the ITT
Hartford Life Insurance Companies (Hartford Life Insurance Company and ITT
Hartford Life and Annuity Insurance Company). The Fund's objectives are as
follows:

<TABLE>
<S> <C>
Hartford Bond Fund, Inc. Seeks a high level of current income while preserving capital through
investing in high-grade government and corporate bonds and other debt
securities.
Hartford Stock Fund, Inc. Seeks long-term capital growth through a diversified portfolio of equity
securities.
HVA Money Market Fund, Inc. Seeks a high level of current income consistent with liquidity and the
need for preservation of capital through high-quality money-market
securities.
Hartford Advisers Fund, Inc. Seeks a high, long-term total rate of return (capital growth and current
income) through a varying mix of stocks, bonds and money market
instruments.
Hartford U.S. Government Seeks a high level of current income consistent with preservation of
Money Market Fund, Inc. capital through short-term securities issued or guaranteed by the U.S.
Government and its Agencies.
Hartford Capital Appreciation Seeks growth of capital through investment in equity securities of
Fund, Inc. companies with high growth potential, including small emerging
companies.
Hartford Mortgage Securities Seeks a high level of current income by investing primarily in
Fund, Inc. mortgage-backed securities, including securities issued by Government
National Mortgage Association.
Hartford Index Fund, Inc. Seeks to approximate the price and yield performance represented by the
Standard & Poor's 500 Composite Stock Price Index through investment in
common stocks.
Hartford International Seeks a long-term total return consistent with that of international
Opportunities Fund, Inc. equity markets through investment primarily in foreign equity securities
issues.
Hartford Dividend and Growth Seeks a high level of current income consistent with growth of capital
Fund, Inc. and moderate investment risk. Primary investments are equity securities
and securities covertible into equity securities that typically have
above average yield.
Hartford International Seeks a long-term total rate of return consistent with moderate risk.
Advisers Fund, Inc. Investments include a mix of debt, equity and money market instruments
primarily with foreign issuers.
</TABLE>

2. SIGNIFICANT ACCOUNTING POLICIES:

The following is a summary of significant accounting policies of the Funds,
which are in accordance with generally accepted accounting principles in the
investment company industry:

a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.

b) SECURITY VALUATION--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 HVA Money Market Fund, Inc. and Hartford
U.S. Government Money Market Fund, Inc. are valued at amortized cost or
original cost plus accrued

112
<PAGE>
interest receivable, both of which approximate market value. In Hartford
Advisers Fund, Inc., Hartford Capital Appreciation Fund, Inc., Hartford
Index Fund, Inc., Hartford Stock Fund, Inc., Hartford Bond Fund, Inc.,
Hartford Mortgage Securities Fund, Inc., Hartford International
Opportunities Fund, Inc., Hartford Dividend and Growth Fund, Inc., and
Hartford International Advisers Fund, Inc., 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 with a maturity of
more than 60 days when purchased are valued based on market quotations
until the remaining days to maturity become 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 principal
securities exchanges (domestic or foreign). If no sale took place on such
day and in the case of certain equity securities traded over-the-counter,
then such securities are valued at the mean between the bid and asked
prices. Securities quoted in foreign currencies are translated into U.S.
dollars at the exchange rate at the end of the reporting period. 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 a person designated
by the Funds' Board of Directors.

c) FOREIGN CURRENCY TRANSACTIONS--The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially expressed
in foreign currencies are converted into U.S. dollars at prevailing
exchange rates. Purchases and sales of investment securities, dividend and
interest income, and certain expenses are translated at the rates of
exchange prevailing on the respective dates of such transactions.

The Funds do not isolate that portion of the results of operations
resulting from changes in the foreign exchange rates on investments 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.

Net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales of foreign currencies, and the difference
between asset and liability amounts initially stated in foreign currencies
and the U.S. dollar value of the amounts actually received or paid. Net
unrealized foreign exchange gains or losses arise from changes in the
value of portfolio securities and other assets and liabilities at the end
of the reporting period, resulting from changes in the exchange rates.

d) 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 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.

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 Hartford Investment
Management Company (HIMCO). 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 ACCOUNTING PRINCIPLES--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 the
investment return of a fully invested portfolio. A futures contract is an
agreement between two parties to buy and sell a security for 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 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

113
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995
(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 or, in the absence of a last sale price, the last offering price or,
in the absence of either of these prices, fair value is determined
according to procedures established by the Funds' Board of Directors.

At any time prior to expiration of the futures contract, the Funds may
close the position by taking an opposite position which would operate to
terminate the position in the futures contract. A final determination of
maintenance margin is then made, additional cash is required to be paid by
or released to the Funds and the Funds realize a gain or loss.

The 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" 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. The Funds had
no options contracts outstanding at December 31, 1995.

g) 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 income to their shareholders or otherwise complying with the
requirements for regulated investment companies. Accordingly, no provision
for Federal income taxes has been made.

h) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTIONS TO SHAREHOLDERS--Orders
for the Fund's shares are executed in accordance with the investment
instructions of the contract owners. Dividend income is accrued as of the
ex-dividend date. Interest income and expenses are accrued on a daily
basis. The net asset value of the Fund's shares is determined as of the
close of each business day of the New York Stock Exchange (the Exchange).
Orders for the purchase of the Funds' 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.

Dividends are declared by the Funds' Board of Directors based upon the
investment performance of the respective Funds. The policy with respect to
Hartford Bond Fund, Inc., Hartford Stock Fund, Inc., Hartford Advisers
Fund, Inc., Hartford Capital Appreciation Fund, Inc., Hartford Mortgage
Securities Fund, Inc., Hartford Index Fund, Inc., Hartford International
Opportunities Fund, Inc., Hartford Dividend and Growth Fund, Inc., and
Hartford International Advisers Fund, Inc. is to distribute dividends from
net investment income monthly and distribute realized capital gains, if
any, annually.

HVA Money Market Fund, Inc. and Hartford U.S. Government Money Market
Fund, Inc. seek to maintain a stable net asset value per share of $1.00 by
declaring a daily dividend from net investment income, including net
short-term capital gains and losses, and by valuing their investments
using the amortized cost method. Dividends are distributed monthly.

i) RESTRICTED SECURITIES--The following securities are restricted for sale
to qualified institutional investors.

<TABLE>
<CAPTION>
% OF
PAR ACQUISITION MARKET NET ASSETS
FUND SECURITY VALUE DATE COST VALUE OF FUND
- ----------------------- ------------------------------ ------------- ---------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Stock Autotote Corp.
4.950% due 8/20/01.......... $ 16,000,000 8/13/93 $ 16,000,000 $ 3,765,986 0.2%
Advisers Autotote Corp.
4.950% due 8/20/01.......... $ 24,000,000 8/13/93 $ 24,000,000 $ 5,648,978 0.1%
Capital Appreciation Planet Hollywood
10.000% due 8/22/00......... $ 8,000,000 8/22/95 $ 8,000,000 $ 10,435,920 0.5%
</TABLE>

114
<PAGE>
j) FOREIGN CURRENCY CONTRACTS--As of December 31, 1995, Hartford
International Opportunities Fund, Inc., Hartford Capital Appreciation
Fund, Inc. and Hartford International Advisers Fund, Inc. have entered
into forward foreign currency exchange contracts that obligate the Funds
to repurchase currencies at specified future dates. The Funds enter into
forward foreign currency contracts to manage currency exchange rate risk.

Forward contracts involve elements of market risk in excess of the amount
reflected in the Statement of Net Assets. The Fund bears the risk of an
unfavorable change in the foreign exchange rate underlying the forward
contract.

k) 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.

3. EXPENSES:

a) INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS--HIMCO, a wholly-owned
subsidiary of Hartford Life Insurance Company (HL) provides investment
management and supervision for Hartford Stock Fund, Inc., Hartford
Advisers Fund, Inc., Hartford Capital Appreciation Fund, Inc., Hartford
International Opportunities Fund, Inc., Hartford Dividend and Growth Fund,
Inc., and Hartford International Advisers, Fund, Inc., pursuant to an
Investment Management Agreement, which was approved by each Fund's Board
of Directors and shareholders.

HIMCO also serves as investment adviser to Hartford Bond Fund, Inc., HVA
Money Market Fund, Inc., Hartford U.S. Government Money Market Fund, Inc.,
Hartford Mortgage Securities Fund, Inc., and Hartford Index Fund, Inc.
pursuant to an Agreement, which was approved by the Fund's Board of
Directors and shareholders. The annual fees paid to HIMCO are .25% of the
average daily net assets for HVA Money Market Fund, Inc., Hartford U.S.
Government Money Market Fund, Inc. and Hartford Mortgage Securities Fund,
Inc., and .20% of the average daily net assets for Hartford Index Fund,
Inc.

The schedule below reflects the rates of compensation paid to HIMCO for
services rendered:
<TABLE>
<CAPTION>
HARTFORD BOND FUND, INC.
AND HARTFORD STOCK FUND, INC.

AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------------------ ------------
<S> <C>
On first $250 million .325%
On next $250 million .300
On next $500 million .275
Over $1 billion .250

HARTFORD ADVISERS FUND, INC.,
HARTFORD CAPITAL APPRECIATION FUND, INC.,
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.,
HARTFORD DIVIDEND AND GROWTH FUND, INC.
AND HARTFORD INTERNATIONAL ADVISERS FUND, INC.

AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------------------ ------------
<S> <C>
On first $250 million .575%
On next $250 million .525
On next $500 million .475
Over $1 billion .425
</TABLE>

For Hartford International Advisers Fund, Inc., HIMCO has agreed to waive
the Fund's fees until the Fund's assets (excluding assets contributed by
companies affiliated with HIMCO) reach $20 million.

Wellington Management Company (Wellington), under a Sub-Investment
Advisory Agreement with HIMCO, furnishes an investment program to HIMCO,
for utilization by HIMCO in rendering services to Hartford Stock Fund,
Inc., Hartford Advisers Fund, Inc., Hartford Capital Appreciation Fund,
Inc., Hartford International Opportunities

115
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995
Fund, Inc., Hartford Dividend and Growth Fund, Inc. and Hartford
International Advisers Fund, Inc. Wellington determines the purchase and
sale of portfolio securities and places such orders for execution, in the
name of the respective Fund. In conjunction with such activities,
Wellington regularly furnishes reports to the Fund's Board of Directors
concerning economic forecasts, investment strategy, portfolio activity and
performance of the Funds.

b) ADMINISTRATIVE SERVICES AGREEMENT--Under the Administrative Services
Agreement between HL and each of the Funds, HL provides administrative
services to the Funds and receives monthly compensation at the annual rate
of .175% of each Fund's average daily net assets. The Funds assume and pay
certain other expenses (including, but not limited to, shareholder
accounting, state taxes and directors' fees). Directors' fees represent
remuneration paid or accrued to directors not affiliated with HL or any
other related company.

c) OPERATING EXPENSES--Allocable expenses of the Funds are charged to each
fund based on the ratio of the net assets of each Fund to the combined net
assets of the Funds. Nonallocable expenses are charged to each fund based
on specific identification.

4. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:

The aggregate gross unrealized appreciation on all investments where there
was an excess of value over tax cost, the aggregate gross unrealized
depreciation of investments where there was an excess of tax cost over value
and the net unrealized appreciation (depreciation) of investments as of
December 31, 1995, were as follows:

<TABLE>
<CAPTION>
AGGREGATE GROSS AGGREGATE GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
--------------- --------------- --------------
<S> <C> <C> <C>
Hartford Bond Fund, Inc. $ 15,437,349 $ (17,287) $ 15,420,062
Hartford Stock Fund, Inc. 368,585,087 (29,069,241) 339,515,846
Hartford Advisers Fund, Inc. 637,232,582 (45,794,259) 591,438,323
Hartford Capital Appreciation Fund, Inc. 341,163,936 (75,128,662) 226,035,274
Hartford Mortgage Securities Fund, Inc. 7,095,079 (616,975) 6,478,104
Hartford Index Fund, Inc. 74,889,886 (2,949,607) 71,950,279
Hartford International Opportunities Fund, Inc. 78,460,910 (14,609,252) 63,851,658
Hartford Dividend and Growth Fund, Inc. 31,270,627 (1,009,188) 30,261,439
Hartford International Advisers Fund, Inc. 1,861,476 (362,213) 1,449,263
</TABLE>

5. EQUITY OF AFFILIATES:

a) HARTFORD DIVIDEND AND GROWTH FUND, INC.--Hartford Accident & Indemnity
Insurance Company, an affiliate of the Funds, redeemed ownership of
3,000,000 shares of Hartford Dividend and Growth Fund, Inc. on October 20,
1995, realizing a gain of $749,520.

b) HARTFORD INTERNATIONAL ADVISERS FUND, INC.--HL has ownership of
10,000,000 shares of Hartford International Advisers Fund, Inc.,
representing 35.5% of the total outstanding shares of the Fund as of
December 31, 1995.

c) As of December 31, 1995, certain HL group pension contracts held direct
interest in shares as follows:

<TABLE>
<CAPTION>
PERCENT OF
TOTAL
SHARES SHARES
------------ -----------
<S> <C> <C>
Hartford Stock Fund, Inc.......................................................................... 70,084 0.01%
Hartford Advisers Fund, Inc....................................................................... 11,995,216 0.55
Hartford Capital Appreciation Fund, Inc........................................................... 9,760,293 1.58
Hartford Mortgage Securities Fund, Inc............................................................ 15,512,929 5.07
Hartford Index Fund, Inc.......................................................................... 12,029,208 7.67
Hartford International Opportunities Fund, Inc.................................................... 5,629,699 1.07
</TABLE>

116
<PAGE>
6. CAPITAL GAINS DISTRIBUTION:

The Board of Directors declared a distribution from capital gains as follows
in the respective Funds:

<TABLE>
<CAPTION>
RECORD DATE PAYABLE DATE PER SHARE AMOUNT
----------------------- ----------------------- -----------------
<S> <C> <C> <C>
Hartford International Advisers Fund, Inc. December 28, 1995 December 31, 1995 $ 0.017363
Hartford Stock Fund, Inc. January 30, 1996 January 31, 1996 0.147531
Hartford Advisers Fund, Inc. January 30, 1996 January 31, 1996 0.043900
Hartford Capital Appreciation Fund, Inc. January 30, 1996 January 31, 1996 0.227840
Hartford Index Fund, Inc. January 30, 1996 January 31, 1996 0.038716
Hartford International Opportunities Fund, Inc. January 30, 1996 January 31, 1996 0.037233
Hartford Dividend and Growth Fund, Inc. January 30, 1996 January 31, 1996 0.028296
</TABLE>

7. INVESTMENT TRANSACTIONS:

For the year ended Decemebr 31, 1995, investment transactions (excluding
short-term investments) were as follows:

<TABLE>
<CAPTION>
PURCHASES AT SALES AT
COST PROCEEDS
---------------- ----------------
<S> <C> <C>
Hartford Bond Fund, Inc................................................................. $ 641,603,789 $ 574,279,913
Hartford Stock Fund, Inc................................................................ 1,001,207,257 741,738,505
Hartford Advisers Fund, Inc............................................................. 2,513,812,815 2,175,113,143
Hartford Capital Appreciation Fund, Inc................................................. 1,582,122,689 1,135,013,592
Hartford Mortgage Securities Fund, Inc.................................................. 1,501,622,577 1,492,472,675
Hartford Index Fund, Inc................................................................ 107,541,576 2,961,201
Hartford International Opportunities Fund, Inc.......................................... 375,268,287 306,915,718
Hartford Dividend and Growth Fund, Inc.................................................. 217,546,619 52,955,393
Hartford International Advisers Fund, Inc............................................... 34,393,152 7,684,577
</TABLE>

117
<PAGE>
HARTFORD MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)

<TABLE>
<CAPTION>
NET REALIZED
AND
NET ASSET UNREALIZED
VALUE AT NET GAINS OR TOTAL FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS
----------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
HARTFORD BOND FUND, INC.
For the Year Ended
December 31, 1995..... $ 0.926 $ 0.064 $ 0.102 0.166
1994................... 1.044 0.060 (0.100) (0.040)
1993................... 1.024 0.062 0.039 0.101
1992................... 1.061 0.074 (0.019) 0.055
1991................... 0.979 0.072 0.082 0.154
1990................... 0.976 0.075 0.003 0.078
HARTFORD STOCK FUND, INC.
For the Year Ended
December 31, 1995..... 2.801 0.070 0.840 0.910
1994................... 3.099 0.061 (0.111) (0.050)
1993................... 2.965 0.053 0.339 0.392
1992................... 2.927 0.051 0.219 0.270
1991................... 2.452 0.059 0.532 0.591
1990................... 2.775 0.070 (0.179) (0.109)
HVA MONEY MARKET FUND,
INC.
For the Year Ended
December 31, 1995..... 1.000 0.056 -- 0.056
1994................... 1.000 0.039 -- 0.039
1993................... 1.000 0.029 -- 0.029
1992................... 1.000 0.036 -- 0.036
1991................... 1.000 0.059 -- 0.059
1990................... 1.000 0.078 -- 0.078
HARTFORD ADVISERS FUND,
INC.
For the Year Ended
December 31, 1995...... 1.600 0.064 0.377 0.441
1994................... 1.752 0.054 (0.100) (0.046)
1993................... 1.676 0.050 0.145 0.195
1992................... 1.649 0.059 0.070 0.129
1991................... 1.436 0.063 0.223 0.286
1990................... 1.543 0.074 (0.059) 0.015
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Year Ended
December 31, 1995..... 1.000 0.054 -- 0.054
1994................... 1.000 0.036 -- 0.036
1993................... 1.000 0.027 -- 0.027
1992................... 1.000 0.032 -- 0.032
1991................... 1.000 0.055 -- 0.055
1990................... 1.000 0.073 -- 0.073
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Year Ended
December 31, 1995..... 2.860 0.030 0.785 0.815
1994................... 3.052 0.011 0.070 0.081
1993................... 2.634 0.003 0.526 0.529
1992................... 2.607 0.008 0.388 0.396
1991................... 1.709 0.021 0.898 0.919
1990................... 2.020 0.029 (0.246) (0.217)
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Year Ended
December 31, 1995..... 0.984 0.068 0.087 0.155
1994................... 1.075 0.068 (0.086) (0.018)
1993................... 1.079 0.071 (0.004) 0.067
1992................... 1.115 0.086 (0.036) 0.050
1991................... 1.054 0.088 0.061 0.149
1990................... 1.045 0.087 0.009 0.096
HARTFORD INDEX FUND, INC.
For the Year Ended
December 31, 1995..... 1.522 0.044 0.507 0.551
1994................... 1.546 0.038 (0.024) 0.014
1993................... 1.450 0.035 0.096 0.131
1992................... 1.390 0.033 0.060 0.093
1991................... 1.134 0.036 0.294 0.330
1990................... 1.220 0.037 (0.086) (0.049)
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Year Ended
December 31, 1995..... 1.176 0.020 0.141 0.161
1994................... 1.215 0.016 (0.039) (0.023)
1993................... 0.917 0.009 0.298 0.307
1992................... 0.973 0.013 (0.056) (0.043)
1991................... 0.871 0.011 0.102 0.113
1990(1)................ 1.000 0.015 (0.129) (0.114)
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Year Ended
December 31, 1995..... 1.000 0.033 0.317 0.350
From inception, March
8, 1994, through
December 31, 1994..... 1.000 0.024 (0.005) 0.019
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
From inception, March
1, 1995, through
December 31, 1995..... 1.000 0.030 0.126 0.156
</TABLE>

(1) From Effective Date (July 2, 1990) to December 31, 1990.
(2) Management fees have been waived until assets (excluding assets contributed
by companies affiliated with HIMCO) reach $20 million. The ratio of
operating expenses to average net assets would have been higher if
management fees were not waived. The ratio of net investment income to
average net assets would have been lower if management fees were not
waived.
(3) Annualized.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

118
<PAGE>
<TABLE>
<CAPTION>
NET ASSETS RATIO OF
DIVIDENDS NET INCREASE NET ASSET AT END OF OPERATING
FROM NET DISTRIBUTIONS (DECREASE) VALUE AT PERIOD EXPENSES
INVESTMENT FROM REALIZED IN END TOTAL (IN TO AVERAGE
INCOME CAPITAL GAINS NET ASSETS OF PERIOD RETURN THOUSANDS) NET ASSETS
---------- ------------- ------------ ----------- --------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
HARTFORD BOND FUND, INC.
For the Year Ended
December 31, 1995..... $ (0.064) $ -- 0.102 $ 1.028 18.49% $ 342,495 0.53 %
1994................... (0.060) (0.018) (0.118) 0.926 (3.95) 247,458 0.55
1993................... (0.062) (0.019) 0.020 1.044 10.24 239,602 0.57
1992................... (0.074) (0.018) (0.037) 1.024 5.53 128,538 0.64
1991................... (0.072) -- 0.082 1.061 16.43 97,377 0.66
1990................... (0.075) -- 0.003 0.979 8.39 70,915 0.67
HARTFORD STOCK FUND, INC.
For the Year Ended
December 31, 1995..... (0.070) (0.114) 0.726 3.527 34.10 1,876,884 0.48
1994................... (0.061) (0.187) (0.298) 2.801 (1.89) 1,163,158 0.50
1993................... (0.053) (0.205) 0.134 3.099 14.34 968,425 0.53
1992................... (0.051) (0.181) 0.038 2.965 10.04 569,903 0.57
1991................... (0.059) (0.057) 0.475 2.927 24.58 406,489 0.60
1990................... (0.070) (0.144) (0.323) 2.452 (3.87) 257,553 0.66
HVA MONEY MARKET FUND,
INC.
For the Year Ended
December 31, 1995..... (0.056) -- -- 1.000 5.74 339,709 0.45
1994................... (0.039) -- -- 1.000 3.95 321,465 0.47
1993................... (0.029) -- -- 1.000 2.94 234,088 0.48
1992................... (0.036) -- -- 1.000 3.63 190,246 0.53
1991................... (0.059) -- -- 1.000 6.01 177,483 0.54
1990................... (0.078) -- -- 1.000 8.09 194,462 0.57
HARTFORD ADVISERS FUND,
INC.
For the Year Ended
December 31, 1995...... (0.064) (0.019) 0.358 1.958 28.34 4,262,769 0.65
1994................... (0.054) (0.052) (0.152) 1.600 (2.74) 3,034,034 0.65
1993................... (0.050) (0.069) 0.076 1.752 12.25 2,426,550 0.69
1992................... (0.059) (0.043) 0.027 1.676 8.30 985,747 0.78
1991................... (0.063) (0.010) 0.213 1.649 20.33 631,424 0.81
1990................... (0.074) (0.048) (0.107) 1.436 1.26 416,839 0.89
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Year Ended
December 31, 1995..... (0.054) -- -- 1.000 5.52 10,070 0.57
1994................... (0.036) -- -- 1.000 3.67 9,619 0.58
1993................... (0.027) -- -- 1.000 2.68 9,449 0.58
1992................... (0.032) -- -- 1.000 3.22 10,525 0.75
1991................... (0.055) -- -- 1.000 5.61 11,257 0.73
1990................... (0.073) -- -- 1.000 7.52 10,496 0.73
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Year Ended
December 31, 1995..... (0.030) (0.155) 0.630 3.490 30.25 2,157,892 0.68
1994................... (0.011) (0.262) (0.192) 2.860 2.50 1,158,644 0.72
1993................... (0.003) (0.108) 0.418 3.052 20.80 778,904 0.76
1992................... (0.008) (0.361) 0.027 2.634 16.98 300,373 0.87
1991................... (0.021) -- 0.898 2.607 53.99 158,046 0.92
1990................... (0.029) (0.065) (0.311) 1.709 (10.90) 56,032 0.96
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Year Ended
December 31, 1995..... (0.068) -- 0.087 1.071 16.17 327,565 0.47
1994................... (0.068) (0.005) (0.091) 0.984 (1.61) 304,147 0.48
1993................... (0.071) -- (0.004) 1.075 6.31 365,198 0.49
1992................... (0.086) -- (0.036) 1.079 4.64 258,711 0.56
1991................... (0.088) -- 0.061 1.115 14.71 162,484 0.58
1990................... (0.087) -- 0.009 1.054 9.70 105,620 0.58
HARTFORD INDEX FUND, INC.
For the Year Ended
December 31, 1995..... (0.044) (0.001) 0.506 2.028 36.55 318,253 0.39
1994................... (0.038) -- (0.024) 1.522 0.94 157,660 0.45
1993................... (0.035) -- 0.096 1.546 9.12 140,396 0.49
1992................... (0.033) -- 0.060 1.450 6.82 82,335 0.60
1991................... (0.036) (0.038) 0.256 1.390 29.53 47,770 0.67
1990................... (0.037) -- (0.086) 1.134 (3.99) 26,641 0.91
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Year Ended
December 31, 1995..... (0.020) (0.011) 0.130 1.306 13.93 686,475 0.86
1994................... (0.016) -- (0.039) 1.176 (1.94) 563,765 0.85
1993................... (0.009) -- 0.298 1.215 33.73 281,608 1.00
1992................... (0.013) -- (0.056) 0.917 (4.43) 47,560 1.23
1991................... (0.011) -- 0.102 0.973 13.00 22,854 1.24
1990(1)................ (0.015) -- (0.129) 0.871 (11.76) 9,352 1.04 (3)
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Year Ended
December 31, 1995..... (0.033) -- 0.317 1.317 36.37 265,070 0.77
From inception, March
8, 1994, through
December 31, 1994..... (0.024) (0.001) (0.006) 0.994 1.96 55,066 0.83 (3)
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
From inception, March
1, 1995, through
December 31, 1995..... (0.030) (0.017) 0.109 0.109 15.84 31,264 0.65 (2)(3)

<CAPTION>
RATIO OF
NET
INVESTMENT
INCOME PORTFOLIO
TO AVERAGE TURNOVER
NET ASSETS RATE
----------------- ------------
<S> <C> <C>
HARTFORD BOND FUND, INC.
For the Year Ended
December 31, 1995..... 6.51 % 215.0 %
1994................... 6.23 328.8
1993................... 5.93 494.3
1992................... 7.21 434.1
1991................... 7.29 337.0
1990................... 7.82 161.6
HARTFORD STOCK FUND, INC.
For the Year Ended
December 31, 1995..... 2.23 52.9
1994................... 2.17 63.8
1993................... 1.86 69.0
1992................... 1.90 69.8
1991................... 2.14 24.3
1990................... 2.76 20.2
HVA MONEY MARKET FUND,
INC.
For the Year Ended
December 31, 1995..... 5.57 --
1994................... 3.99 --
1993................... 2.91 --
1992................... 3.60 --
1991................... 5.88 --
1990................... 7.80 --
HARTFORD ADVISERS FUND,
INC.
For the Year Ended
December 31, 1995...... 3.57 63.5
1994................... 3.34 60.0
1993................... 3.07 55.3
1992................... 3.55 72.8
1991................... 4.13 42.1
1990................... 4.65 35.7
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Year Ended
December 31, 1995..... 5.38 --
1994................... 3.63 --
1993................... 2.65 --
1992................... 3.19 --
1991................... 5.48 --
1990................... 7.29 --
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Year Ended
December 31, 1995..... 0.95 78.6
1994................... 0.40 73.3
1993................... 0.12 91.4
1992................... 0.36 100.3
1991................... 0.92 107.2
1990................... 1.58 51.8
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Year Ended
December 31, 1995..... 6.50 489.4
1994................... 6.65 365.7
1993................... 6.49 183.4
1992................... 7.96 277.2
1991................... 8.25 152.2
1990................... 8.42 85.6
HARTFORD INDEX FUND, INC.
For the Year Ended
December 31, 1995..... 2.46 1.5
1994................... 2.50 1.8
1993................... 2.36 0.8
1992................... 2.48 1.2
1991................... 2.89 6.7
1990................... 3.27 25.5
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Year Ended
December 31, 1995..... 1.60 55.6
1994................... 1.42 46.4
1993................... 0.84 31.8
1992................... 1.40 25.1
1991................... 1.17 24.7
1990(1)................ 2.65 (3) 3.0
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Year Ended
December 31, 1995..... 2.91 41.4
From inception, March
8, 1994, through
December 31, 1994..... 3.52 27.8
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
From inception, March
1, 1995, through
December 31, 1995..... 3.36 (3) 47.2
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

119
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF:
HARTFORD BOND FUND, INC., HARTFORD STOCK FUND, INC., HVA MONEY MARKET FUND,
INC.,
HARTFORD ADVISERS FUND, INC., HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.,
HARTFORD CAPITAL APPRECIATION FUND, INC. (FORMERLY HARTFORD AGGRESSIVE GROWTH
FUND, INC.),
HARTFORD MORTGAGE SECURITIES FUND, INC., HARTFORD INDEX FUND, INC.,
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC., HARTFORD DIVIDEND AND GROWTH
FUND, INC.,
AND HARTFORD INTERNATIONAL ADVISERS FUND, INC.

We have audited the accompanying statements of net assets of Hartford Bond
Fund, Inc., Hartford Stock Fund, Inc., HVA Money Market Fund, Inc., Hartford
Advisers Fund, Inc., Hartford U.S. Government Money Market Fund, Inc., Hartford
Capital Appreciation Fund, Inc. (formerly Hartford Aggressive Growth Fund,
Inc.), Hartford Mortgage Securities Fund, Inc., Hartford Index Fund, Inc.,
Hartford International Opportunities Fund, Inc., Hartford Dividend and Growth
Fund, Inc., and Hartford International Advisers Fund, Inc. (all Maryland
corporations) (the Funds) as of December 31, 1995, and the related statements
of operations for the year then ended (except for Hartford International
Advisers Fund Inc., which reflects the period since inception, March 1, 1995,
to December 31, 1995), the statements of changes in net assets for each of the
two years in the period then ended (except for Hartford Dividend and Growth
Fund, Inc., which reflects the year then ended and the period since inception,
March 8, 1994, to December 31, 1994 and Hartford International Advisers Fund,
Inc., which reflects the period since inception, March 1, 1995, to December 31,
1995) and the financial highlights for each of the five years in the period
then ended (except for Hartford Dividend and Growth Fund, Inc., which reflects
the year then ended and from the period since inception, March 8, 1994, to
December 31, 1994, and Hartford International Advisers Fund, Inc., which
reflects the period since inception, March 1, 1995, to December 31, 1995).
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 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, 1995,
by correspondence with the custodian. 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
Hartford Bond Fund, Inc., Hartford Stock Fund, Inc., HVA Money Market Fund,
Inc., Hartford Advisers Fund, Inc., Hartford U.S. Government Money Market Fund,
Inc., Hartford Capital Appreciation Fund, Inc. (formerly Hartford Aggressive
Growth Fund, Inc.), Hartford Mortgage Securities Fund, Inc., Hartford Index
Fund, Inc., Hartford International Opportunities Fund, Inc., Hartford Dividend
and Growth Fund, Inc., and Hartford International Advisers Fund, Inc., as of
December 31, 1995, the results of their operations for the year then ended
(except for Hartford International Advisers Fund Inc., which reflects the
period since inception March 1, 1995, to December 31, 1995), the changes in
their net assets for each of the two years in the period then ended (except for
Hartford Dividend and Growth Fund, Inc., which reflects the year then ended and
the period since inception, March 8, 1994, to December 31, 1994, and Hartford
International Advisers Fund, Inc., which reflects the period since inception,
March 1, 1995, to December 31, 1995) and the financial highlights for each of
the five years in the period then ended (except for Hartford Dividend and
Growth Fund, Inc., which reflects the year then ended and the period since
inception, March 8, 1994, to December 31, 1994, and Hartford International
Advisers Fund, Inc., which reflects the period since inception, March 1, 1995,
to December 31, 1995), in conformity with generally accepted accounting
principles.

Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP

120

<PAGE>

EXHIBIT 19

HARTFORD INDEX FUND, INC.
HARTFORD MONEY MARKET FUND, INC.
HARTFORD CAPITAL APPRECIATION FUND, INC.
HARTFORD BOND FUND, INC.
HARTFORD STOCK FUND, INC.
HVA MONEY MARKET FUND, INC.
HARTFORD ADVISERS FUND, INC.
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
HARTFORD MORTGAGE SECURITIES FUND, INC.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
HARTFORD DIVIDEND AND GROWTH FUND, INC.
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
HARTFORD SMALL COMPANY FUND, INC.

POWER OF ATTORNEY
-----------------

Joseph A. Biernat Charles M. O'Halloran
Winifred E. Coleman William A. O'Neill
Joseph H. Gareau Millard H. Pryor, Jr.
J. Richard Garrett Lowndes A. Smith
George R. Jay John K. Springer

do hereby jointly and severally authorize Lynda Godkin, Allison MacInnis, Kevin
J. Carr, Charles M. O'Halloran or Scott K. Richardson, to sign as their agent
any Securities Act of 1933 and/or Investment Company Act of 1940 Registration
Statement, pre-effective amendment or post-effective amendment and any
Application for Exemption Relief or other filings with the Securities and
Exchange Commission relating to any Mutual Fund named above.

IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney for the
purpose herein set forth.

Dated: 1-24-96
/S/Joseph A. Biernat
- --------------------
Joseph A. Biernat

Dated: 1-24-96
/S/ Winifred E. Coleman
- -----------------------
Winifred E. Coleman

<PAGE>

Dated: 1-24-96
/S/Joseph A. Gareau
- -------------------
Joseph A. Gareau

Dated: 1-24-96
/S/ J. Richard Garrett
- ----------------------
J. Richard Garrett

Dated: 1-24-96
/S/ George R. Jay
- -----------------
George R. Jay

Dated: 1-24-96
/S/ Charles M. O'Halloran
- -------------------------
Charles M. O'Halloran

Dated: 1-24-96
/S/ William A. O'Neill
---------------------
William A. O'Neill

Dated: 1-24-96
/S/ Millard H. Pryor, Jr.
- -------------------------
Millard H. Pryor, Jr.

Dated: 1-24-96
/S/ Lowndes A. Smith
- --------------------
Lowndes A. Smith

Dated: 1-24-96
/S/ John K. Springer
- --------------------
John K. Springer

<PAGE>
<ARTICLE> 6
<CIK> 0000045941
<NAME> HARTFORD STOCK FUND, INC.

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 1,525,375,612
<INVESTMENTS-AT-VALUE> 1,867,891,458
<RECEIVABLES> 13,605,538
<ASSETS-OTHER> 4,507
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,881,501,503
<PAYABLE-FOR-SECURITIES> 133,267
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,484,622
<TOTAL-LIABILITIES> 4,617,889
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,214,427
<SHARES-COMMON-STOCK> 532,144,279
<SHARES-COMMON-PRIOR> 415,196,663
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 80,621,093
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 329,515,845
<NET-ASSETS> 1,876,883,614
<DIVIDEND-INCOME> 34,266,896
<INTEREST-INCOME> 5,642,049
<OTHER-INCOME> 0
<EXPENSES-NET> 7,022,680
<NET-INVESTMENT-INCOME> 32,886,265
<REALIZED-GAINS-CURRENT> 80,821,093
<APPREC-INCREASE-CURRENT> 308,861,631
<NET-CHANGE-FROM-OPS> 422,589,189
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 32,885,255
<DISTRIBUTIONS-OF-GAINS> 47,489,646
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 209,187,665
<NUMBER-OF-SHARES-REDEEMED> 120,045,047
<SHARES-REINVESTED> 27,604,998
<NET-CHANGE-IN-ASSETS> 713,725,632
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 47,489,646
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,134,925
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,022,680
<AVERAGE-NET-ASSETS> 1,478,010,000
<PER-SHARE-NAV-BEGIN> 2.801
<PER-SHARE-NII> 0.070
<PER-SHARE-GAIN-APPREC> 0.840
<PER-SHARE-DIVIDEND> 0.070
<PER-SHARE-DISTRIBUTIONS> 0.114
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.527
<EXPENSE-RATIO> .005
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>