<PAGE>
Hartford
Money Market Fund, Inc.
----------------------------------------
Annual Report
December 31, 1995
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders,
The economy provided the ideal background for the financial markets in 1995.
Despite some early fears about overheating, the rate of economic growth was
cut in half during the year, relieving inflation pressures and opening the
door for the Federal Reserve to reverse course and reduce short-term interest
rates. By year-end, interest rates were back near their 1993 lows and the
financial markets had experienced one of the best years in decades. Bonds, as
measured by The Lehman Government/Corporate Bond Index, had their best year
since 1985. The major stock market indexes made a series of new highs during
the year, as the Dow Jones Industrial Average had its best year since 1975,
and the S&P 500 had its best year since 1958.
With the so called "soft landing" accomplished in 1995, the question is how
much longer the current expansion can be sustained. Although the rate of
growth appears to have fallen back again in the fourth quarter after
rebounding in the third, the slowing was partly the result of temporary
factors that are expected to fade as 1996 progresses. In the meantime, the
Federal Reserve has demonstrated its willingness to act whenever growth
appears to be weakening. The Board lowered short-term interest rates for the
third time since last July on January 31 when it reduced both its Federal
Funds rate and the Discount rate by 25 basis points.
Until there is evidence to the contrary, that indicates that the expansion can
be sustained and the current consensus calls for continued moderate economic
growth and low inflation in 1996--with growth coming in a bit below the
average early in the year and a bit above later on. Over the near term, if the
forecast is wrong, it is likely to be because growth is weaker than expected
as high debt levels coupled with tepid job growth and income gains lead to
more severe cuts than currently anticipated in consumer spending. Further out,
the risk appears to shift to more rapid growth than forecast. Accordingly, the
odds favor additional interest rate cuts by the Fed.
Lowndes A. Smith Joseph H. Gareau
CHAIRMAN PRESIDENT
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
AMORTIZED AMORTIZED
PRINCIPAL COST AND PRINCIPAL COST AND
AMOUNT VALUE AMOUNT VALUE
- ---------- ------------ ---------- -----------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER -- 86.3% NON-CONVERTIBLE CORPORATE BONDS -- 8.3%
</TABLE>
<TABLE>
<C> <S> <C>
$ 500,000 Air Products & Chemicals
5.680% due 01/18/96......... $ 498,738
500,000 American Home Products
5.700% due 02/02/96......... 497,546
500,000 ANZ (Delaware) Inc.
5.670% due 01/05/96......... 499,764
500,000 Aristar Inc.
5.750% due 01/08/96......... 499,521
500,000 Bass Finance C.I. Ltd.
5.680% due 02/16/96......... 496,450
500,000 Bausch & Lomb Inc.
5.710% due 01/19/96......... 498,652
500,000 Cafco
5.650% due 02/16/96......... 496,469
500,000 Colgate-Palmolive Co.
5.620% due 03/08/96......... 494,848
500,000 Dean Witter, Discover Card
5.730% due 01/24/96......... 498,249
500,000 Electronic Data Systems
5.580% due 03/15/96......... 494,343
500,000 Finova Capital
5.940% due 01/26/96......... 498,020
500,000 General Electric Company
5.410% due 05/03/96......... 490,833
500,000 Goldman Sachs Group LP
5.540% due 04/04/96......... 492,844
500,000 Hanson Finance (UK)
5.650% due 02/21/96......... 496,076
500,000 National Rural Utilities
5.650% due 02/20/96......... 496,155
500,000 RTZ America Inc.
5.700% due 01/23/96......... 498,337
500,000 Sharp Electronics Corp.
5.660% due 01/26/96......... 498,113
500,000 Tambrands Inc.
5.590% due 04/26/96......... 491,072
500,000 Transamerica Finance Co.
5.700% due 01/10/96......... 499,367
500,000 Whirlpool Corp.
5.760% due 01/17/96......... 498,800
500,000 Zeneca, Inc. D/N
5.720% due 01/11/96......... 499,284
-----------
$10,433,481
-----------
$ 500,000 American Honda Finance
5.875% due 03/01/96......... $ 500,000
500,000 Associates Corp. of America
4.940% due 04/02/96......... 498,754
-----------
$ 998,754
-----------
REPURCHASE AGREEMENT -- 7.7%
935,000 Interest in $24,574,000 joint
repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $935,608;
(Collateralized by
$24,574,000 U.S. Treasury
Note 5.125% due 12/31/98)... 935,000
-----------
Total short-term securities... $12,367,235
-----------
-----------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total investment in securities
*(Identified cost of $12,367,235).......... 102.3% $12,367,235
Excess of liabilities over cash and
receivables................................ (2.3) (278,567 )
------ ------------
Net Assets (Applicable to $1.00 per share
based on 12,088,668 shares outstanding).... 100.0% $12,088,668
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
500,000,000 shares; outstanding 12,088,668
shares............................................. $ 1,208,867
Capital surplus...................................... 10,879,801
------------
Net assets, applicable to shares outstanding......... $12,088,668
------------
------------
</TABLE>
* Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
1
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................. $771,313
EXPENSES:
Shareholder accounting fees............................... 97,530
Investment advisory services.............................. 32,031
Registration fees......................................... 31,358
Administrative services................................... 22,422
Custodian fees............................................ 13,410
Board of directors fees................................... 128
Other..................................................... 7,327
--------
Total expenses.......................................... 204,206
--------
Net investment income..................................... 567,107
--------
Net increase in net assets resulting from operations...... $567,107
--------
--------
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 567,107 $ 371,951
------------------- -----------------
Net increase in net assets................................ 567,107 371,951
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... (567,107) (371,951)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Fund shares sold (33,634,110 and 35,072,968
shares, respectively).................................... 33,634,110 35,072,968
Net asset value of Fund shares issued upon reinvestment of
dividends
(564,345 and 369,629 shares, respectively)............... 564,345 369,629
Cost of Fund shares redeemed (33,793,519 and 35,262,478
shares,
respectively)............................................ (33,793,519) (35,262,478)
------------------- -----------------
Net increase in net assets resulting from capital share
transactions............................................. 404,936 180,119
------------------- -----------------
Total increase in net assets............................ 404,936 180,119
NET ASSETS:
Beginning of period....................................... 11,683,732 11,503,613
------------------- -----------------
End of period............................................. $ 12,088,668 $ 11,683,732
------------------- -----------------
------------------- -----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
2
<PAGE>
Hartford Money Market Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Hartford Money Market Fund, Inc., (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-ended
management investment company. The Fund was organized under the laws of the
State of Maryland in February 1982, and commenced operations in June 1982.
The Fund seeks a high level of current income consistent with liquidity and
preservation of capital through investments in the obligations of the U.S.
Government and its agencies, money market instruments, and corporate bonds,
notes and other debt instruments.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Fund,
which are in accordance with generally accepted accounting principles in
the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.
b) SECURITY VALUATION--Investments are valued at amortized cost, which
approximates fair market value. Under the amortized cost method of
valuation, an instrument is valued by reference to the Fund's
acquisition cost as adjusted for amortization of premium or accretion of
discount.
c) REPURCHASE TRANSACTIONS--A repurchase agreement is an agreement by which
the seller of a security agrees to repurchase the security sold at a
mutually agreed upon time and price.
At the time the Fund enters into a repurchase agreement, the value of
the underlying collateral security(ies), including accrued interest,
will be equal to or exceed the value of the repurchase agreement and, in
the case of repurchase agreements exceeding one day, the value of the
underlying security(ies), including accrued interest, is required during
the term of the agreement to be equal to or exceed the value of the
repurchase agreement. Security(ies) which serve to collateralize the
repurchase agreement are held by the Fund's custodian in book entry or
physical form in the custodial account of the Fund. Repurchase
agreements are valued at cost plus accrued interest receivable.
d) JOINT TRADING ACCOUNT--Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Fund may transfer uninvested
cash balances into a joint trading account managed by Hartford
Investment Management Company (HIMCO). These balances may be invested in
one or more repurchase agreements and/or short-term money market
instruments.
e) FEDERAL INCOME TAXES--For Federal income tax purposes, the Fund intends
to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code by distributing substantially all of its taxable
income to its shareholders and otherwise complying with the requirements
for regulated investment companies. Accordingly, no provision for
Federal income taxes has been made.
f) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTION TO SHAREHOLDERS--Fund
shares are sold and redeemed on a continuing basis at net asset value.
Interest income and expenses are accrued on a daily basis. The Fund's
net asset value per share is determined as of 4:00 p.m., Eastern
Standard Time, on days the New York Stock Exchange is open for trading.
The Fund seeks to maintain a stable net asset value per share of $1.00
by declaring a daily dividend from net investment income, including net
realized gains and losses, and by valuing its investments using the
amortized cost method. Dividends are distributed monthly.
g) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the financial statements and
the reported amounts of income and expenses during the period. Operating
results in the future could vary from the amounts derived from
management's estimates and assumptions.
3. INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES AGREEMENTS:
a) INVESTMENT ADVISORY AGREEMENT--HIMCO, a wholly-owned subsidiary of
Hartford Life Insurance Company (HL), serves as investment adviser to
the Fund pursuant to an agreement approved by the Board of Directors and
shareholders.
Under the terms of the agreement, HIMCO is compensated at a maximum
annual fee of .25% of the Fund's average daily net assets.
b) ADMINISTRATIVE SERVICES AGREEMENT--HL provides administrative services
to the Fund and receives an annual fee equal to .175% of the Fund's
average daily net assets.
The Fund assumes and pays certain other expenses (including, but not
limited to, shareholder accounting fees, registration and directors'
fees.) These expenses are either directly attributable to the Fund or
are allocated based on the ratio of the net assets of the Fund to the
combined net assets of the eleven Hartford Mutual Funds. Directors' fees
represent remuneration paid or accrued to directors not affiliated with
HL or any other related company.
3
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)*
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income................. 0.044 0.027 0.018 0.024 0.049
Net Gains or (Losses) on Securities
(both realized and unrealized)....... -- -- -- -- --
------- ------- ------- ------- -------
Total Income From Investment
Operations....................... 0.044 0.027 0.018 0.024 0.049
LESS DISTRIBUTIONS:
Dividends (from net investment
income).............................. (0.044) (0.027) (0.018) (0.024) (0.049)
Distributions (from capital gains).... -- -- -- -- --
Return of Capital..................... -- -- -- -- --
------- ------- ------- ------- -------
Total Distributions............... (0.044) (0.027) (0.018) (0.024) (0.049)
Net Asset Value, End of Period.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total Return............................ 4.52% 2.77% 1.88% 2.47% 4.99%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (000's
omitted)............................... $12,089 $11,684 $11,504 $13,483 $13,866
Ratio of Expenses to Average Net
Assets................................. 1.590% 1.610% 1.540% 1.630% 1.550%
Ratio of Net Investment Income to
Average Net Assets..................... 4.430% 2.720% 1.821% 2.440% 4.920%
<FN>
* Financial Highlights for the periods ended through December 31, 1992 have
been restated to conform with requirements issued by the SEC in April 1993.
</TABLE>
4
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
HARTFORD MONEY MARKET FUND, INC.:
We have audited the accompanying statement of net assets of Hartford Money
Market Fund, Inc. (a Maryland corporation) as of December 31, 1995, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 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 Money Market Fund, Inc. as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the five yeras in the period then ended in conformity with generally
accepted accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
5
<PAGE>
HARTFORD MONEY MARKET FUND, INC.
BULK RATE
P.O. BOX 2999
U.S. POSTAGE
HARTFORD, CT 06104-2999
PAID
PERMIT NO. 1
HARTFORD, CT
- --------------------------------------------------------------------------------
DIRECTORS OF THE FUNDS:
JOSEPH A. BIERNAT - Director
JOSEPH H. GAREAU - Director/President
GOVERNOR WILLIAM A. O'NEILL - Director
MILLARD H. PRYOR, JR. - Director
LOWNDES A. SMITH - Director/Chairman
JOHN K. SPRINGER - Director
WINIFRED E. COLEMAN - Director
CUSTODIAN:
Chase Manhattan Bank
Brooklyn, NY 11245
TRANSFER AGENT:
State Street Bank and Trust Company
P.O. Box 1912
Boston, MA 02107
INVESTMENT ADVISER:
The Hartford Investment Management Company (HIMCO)
Hartford Plaza
Hartford, CT 06115
PRINCIPAL UNDERWRITER:
Hartford Equity Sales Company, Inc. (HESCO)
Hartford Plaza
Hartford, CT 06115
Hartford Securities Distribution Company, Inc. (HSD)
Hartford Plaza
Hartford, CT 06115
INDEPENDENT PUBLIC ACCOUNTANTS:
Arthur Andersen LLP
One Financial Plaza
Hartford, CT 06103
HV-1766-23 Printed in U.S.A.
