<PAGE>
HARTFORD HLS MUTUAL FUNDS
[LOGO]
ANNUAL REPORT
1999
<PAGE>
PERFORMANCE SUMMARY OF HARTFORD HLS MUTUAL FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
FUNDS
- -------------------------------------------------------------------------------------------------------------------------------
CLASS IA SHARES TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994 1993 1992
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Stock......................... 19.78% 33.47% 31.38% 24.37% 34.10% (1.89)% 14.34% 10.04%
Bond.......................... (2.02) 8.15 11.35 3.52 18.49 (3.95) 10.24 5.53
Money Market.................. 4.89 5.25 5.31 5.19 5.74 3.95 2.94 3.63
Advisers...................... 10.59 24.66 24.51 16.59 28.34 (2.74) 12.25 8.30
Capital Appreciation.......... 37.46 15.48 22.34 20.70 30.25 2.50 20.80 16.98
Mortgage Securities........... 1.52 6.72 9.01 5.07 16.17 (1.61) 6.31 4.64
Index......................... 20.49 28.06 32.61 22.09 36.55 0.94 9.12 6.82
International Opportunities... 39.86 13.16 0.34 12.93 13.93 (1.94) 33.73 (4.43)
Dividend and Growth........... 5.31 16.42 31.89 22.91 36.37 1.96* -- --
International Advisers........ 23.16 13.35 5.52 11.79 15.84* -- -- --
Small Company................. 65.83 11.62 18.38 7.15* -- -- -- --
MidCap........................ 51.81 26.57 13.81* -- -- -- -- --
Growth and Income............. 21.82 19.05* -- -- -- -- -- --
Global Leaders................ 50.37 31.88* -- -- -- -- -- --
High Yield.................... 4.7 3.58* -- -- -- -- -- --
MARKET INDICES
Standard & Poor's 500 Stock
Index........................ 21.03% 28.60% 33.35% 22.95% 37.52% 1.31% 10.06% 7.61%
Standard & Poor's 400 Stock
Index (MidCap)............... 14.7 19.11 32.25 19.18 30.88 (3.59) 11.03 7.58
Lehman Gov't./Corp. Bond
Index........................ (2.15) 9.47 9.76 2.90 19.24 (3.51) 11.03 7.58
90-Day Treasury Bills......... 4.87 4.98 5.33 5.29 5.80 4.14 3.12 3.70
MSCI EAFEGDP.................. 31.02 26.71 5.77 7.63 11.16 7.81 33.56 (9.65)
Russell 2000 Index............ 21.26 (2.55) 22.36 16.51 28.45 (1.82) 18.71 18.41
Russell 2500 Index............ 24.15 0.38 24.43 19.04 31.70 (1.07) 16.54 16.18
Lehman Brothers Mortgage
Backed Bond Index............ 1.86 6.96 9.49 5.35 16.80 (1.61) 6.84 8.96
<CAPTION>
- -----------------------------------------------------------------------------------------------
FUNDS
- -----------------------------------------------------------------------------------------------
CLASS IA SHARES TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------
1991 1990 1989
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Stock......................... 24.58% 3.87% 26.02%
Bond.......................... 16.43 8.39 12.10
Money Market.................. 6.01 8.09 9.10
Advisers...................... 20.33 1.26 21.72
Capital Appreciation.......... 53.99 (10.90) 24.11
Mortgage Securities........... 14.71 9.70 13.13
Index......................... 29.53 (3.99) 30.47
International Opportunities... 13.00 (11.76)* --
Dividend and Growth........... -- -- --
International Advisers........ -- -- --
Small Company................. -- -- --
MidCap........................ -- -- --
Growth and Income............. -- -- --
Global Leaders................ -- -- --
High Yield.................... -- -- --
MARKET INDICES
Standard & Poor's 500 Stock
Index........................ 30.39% (3.11)% 31.62%
Standard & Poor's 400 Stock
Index (MidCap)............... 16.13 8.28 14.24
Lehman Gov't./Corp. Bond
Index........................ 16.13 8.28 14.24
90-Day Treasury Bills......... 5.90 7.95 8.67
MSCI EAFEGDP.................. 10.73 -- --
Russell 2000 Index............ 46.04 (19.48) 16.26
Russell 2500 Index............ 46.69 (14.88) 19.43
Lehman Brothers Mortgage
Backed Bond Index............ 15.72 10.72 15.35
- ---------------------------------------------------------------------------------------------------
</TABLE>
* The inception dates of the Funds are as follows: Stock and Bond--August 31,
1977, Money Market--June 30 1980, Advisers--March 31, 1983, Capital
Appreciation--April 2, 1984, Mortgage Securities--January 1, 1985,
Index--May 1, 1987, International Opportunities--July 2, 1990, Dividend and
Growth--March 8, 1994, International Advisers--March 1, 1995, Small
Company--August 9, 1996, MidCap--July 15, 1997, Growth and Income--May 29,
1998, High Yield and Global Leaders--September 30, 1998
The performance figures for mutual funds do not include insurance charges that
are included in the unit values of individual plans.
Total return consists of any change in the market price of securities owned by
the various mutual funds, as well as income from dividends or interest.
Calculations assume reinvestment of income. Performance figures represent past
results and are not a guarantee of future performance. An investor's unit when
redeemed, may be worth more or less than the original cost. Results do not
take into account personal income taxes and capital gains where applicable.
Market indices are included as a broad measure of market performance, and no
direct comparison with funds is intended.
2
<PAGE>
HARTFORD BOND HLS FUND, INC.
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STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- ------------
<S> <C>
ASSET-BACKED SECURITIES -- 2.5%
$ 11,000,000 California Infrastructure Pacific Gas &
Electric, Series 1997-1, Class A7
6.38% due 09/25/08.................... $ 10,692,440
3,250,000 California Infrastructure Southern
California Co., Series 1997-1,
Class A3
6.17% due 03/25/03.................... 3,230,857
11,400,000 Chemical Master Credit Card Trust,
Series 1996-1, Class A
5.55% due 09/15/03.................... 11,263,086
------------
Total asset-backed securities........... $ 25,186,383
============
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.2%
207,285 Oakwood Mortgage Investors, Inc.,
Series 1994-A, Class B1
8.40% due 02/15/15.................... $ 207,284
2,264,924 Premier Auto Trust, Series 1998-5,
Class A2
5.07% due 04/09/01.................... 2,258,989
------------
Total collateralized mortgage
obligations............................. $ 2,466,273
============
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 1.7%
5,070,916 Capital Lease Funding Securitization,
Series 1997-CTL1, Class A1
7.421% due 06/22/24................... $ 5,069,727
7,600,000 Comed Transitional Funding Trust,
Series 1998-1, Class A5
5.44% due 03/25/07.................... 7,152,664
5,175,000 DLJ Commercial Mortgage Corp.,
Series 1998-CF1, Class B2
7.33% due 01/15/10.................... 4,451,224
------------
Total commercial mortgage-backed
securities.............................. $ 16,673,615
============
CORPORATE NOTES -- 55.4%
AEROSPACE & DEFENSE -- 2.5%
9,500,000 Lockheed Martin Corp.
7.95% due 12/01/05.................... $ 9,429,301
9,000,000 Textron, Inc.
6.375% due 07/15/04................... 8,681,292
7,650,000 United Technologies Corp.
6.50% due 06/01/09.................... 7,200,080
------------
25,310,673
------------
COLLEGES -- 1.1%
7,700,000 Massachusetts Institute of Technology
7.25% due 11/02/2096.................. 7,325,179
3,500,000 Yale University
7.375% due 04/15/2096................. 3,209,230
------------
10,534,409
------------
COMMUNICATIONS EQUIPMENT -- 1.8%
^^11,300,000 Global Crossing Ltd.
9.50% due 11/15/09.................... 11,130,500
3,000,000 Hughes Electronic Corp.
7.472% due 10/23/00................... 2,992,500
3,400,000 Jones Intercable, Inc.
10.50% due 03/01/08................... 3,589,658
------------
17,712,658
------------
CORPORATE NOTES -- (CONTINUED)
COMPUTERS & OFFICE
EQUIPMENT -- 0.6%
$ 5,400,000 International Business Machines Corp.
7.25% due 11/01/02.................... $ 5,471,695
------------
CONSUMER DURABLES -- 0.4%
4,500,000 TRW, Inc.
7.125% due 06/01/09................... 4,275,603
------------
ENERGY & SERVICES -- 8.4%
8,250,000 Amoco Co.
6.00% due 06/09/08.................... 7,563,352
3,600,000 CMS Panhandle Holding Co.
6.125% due 03/15/04................... 3,406,388
2,225,000 CMS Energy Corp.
6.75% due 01/15/04.................... 2,062,735
800,000 CMS Energy Corp.
7.50% due 01/15/09.................... 722,184
14,400,000 Conoco, Inc.
5.90% due 04/15/04.................... 13,730,112
5,100,000 Conoco, Inc.
6.95% due 04/15/29.................... 4,586,195
6,500,000 Enterprise Oil PLC
6.50% due 05/01/05.................... 6,071,201
3,000,000 Enterprise Oil PLC
6.70% due 09/15/07.................... 2,781,708
1,000,000 Gulf Canada Resources Ltd.
8.25% due 03/15/17.................... 870,490
1,200,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05................... 1,164,000
6,500,000 Noble Drilling Corp.
7.50% due 03/15/19.................... 6,204,971
11,800,000 Occidental Petroleum Corp.
7.375% due 11/15/08................... 11,484,550
3,500,000 Ocean Energy, Inc.
7.625% due 07/01/05................... 3,325,000
1,975,000 R&B Falcon Corp.
6.75% due 04/15/05.................... 1,772,562
2,000,000 R&B Falcon Corp.
7.375% due 04/15/18................... 1,550,000
2,500,000 R&B Falcon Corp.
11.375% due 03/15/09.................. 2,675,000
9,511,000 Seagull Energy Corp.
7.50% due 09/15/27.................... 7,814,599
1,000,000 Tesoro Petroleum Corp.
9.00% due 07/01/08.................... 955,000
2,850,000 Tuboscope, Inc.
7.50% due 02/15/08.................... 2,365,500
2,500,000 Union Oil Co. of California
9.375% due 02/15/11................... 2,786,515
------------
83,892,062
------------
FINANCIAL SERVICES -- 11.5%
6,500,000 Bank of New York Co., Inc. (The)
7.625% due 07/15/02................... 6,553,306
7,000,000 Bayerische Landesbank (NY)
6.20% due 02/09/06.................... 6,556,410
4,450,000 CIT Group, Inc. (The)
5.57% due 12/08/03.................... 4,189,924
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-1
<PAGE>
HARTFORD BOND HLS FUND, INC.
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STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
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<S> <C>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
$ 4,500,000 CIT Group, Inc. (The)
7.125% due 06/17/02................... $ 4,497,565
10,000,000 Ford Motor Credit Co.
5.75% due 02/23/04.................... 9,473,530
13,000,000 Ford Motor Credit Co.
7.75% due 11/15/02.................... 13,226,096
10,000,000 General Electric Capital Corp.
6.52% due 10/08/02.................... 9,909,890
7,000,000 General Electric Capital Corp.
6.81% due 11/03/03.................... 6,954,521
3,800,000 General Motors Acceptance Corp.
6.17% due 08/18/03.................... 3,775,170
1,000,000 General Motors Acceptance Corp.
6.55% due 11/17/03.................... 977,750
7,900,000 Inter-American Development Bank
8.875% due 06/01/09................... 8,809,290
5,000,000 Sprint Capital Corp.
5.70% due 11/15/03.................... 4,747,960
6,750,000 Sumitomo Bank International Finance N.V.
8.50% due 06/15/09.................... 6,862,124
4,300,000 Trenwick Group, Inc.
6.70% due 04/01/03.................... 4,196,804
15,000,000 TXU Eastern Funding
6.15% due 05/15/02.................... 14,538,750
3,050,000 Wachovia Corp.
5.625% due 12/15/08................... 2,655,055
7,150,000 Wachovia Corp.
6.25% due 08/01/08.................... 6,591,871
------------
114,516,016
------------
FOOD, BEVERAGE & TOBACCO -- 2.6%
4,850,000 Golden State Holdings, Inc.
6.75% due 08/01/01.................... 4,674,609
5,500,000 Marriott International, Inc.
6.875% due 11/15/05................... 5,195,696
7,400,000 Ralcorp Holdings, Inc.
8.75% due 09/15/04.................... 7,873,104
8,325,000 Seagram (J) & Sons, Inc.
6.25% due 12/15/01.................... 8,151,065
------------
25,894,474
------------
HEALTH CARE -- 1.5%
2,250,000 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27.................... 1,657,442
2,250,000 Columbia/HCA Healthcare Corp.
7.50% due 11/15/95.................... 1,648,374
1,675,000 Columbia/HCA Healthcare Corp.
7.50% due 12/15/23.................... 1,340,482
1,900,000 HealthSouth Corp.
6.875% due 06/15/05................... 1,662,131
3,870,000 HealthSouth Corp.
7.00% due 06/15/08.................... 3,183,860
6,000,000 Tenet Healthcare Corp.
8.00% due 01/15/05.................... 5,745,000
------------
15,237,289
------------
HOME BUILDING -- 0.4%
$ 1,390,000 U.S. Home Corp.
7.95% due 03/01/01.................... $ 1,393,337
2,800,000 U.S. Home Corp.
8.25% due 08/15/04.................... 2,670,500
------------
4,063,837
------------
HOTELS & GAMING -- 1.0%
1,165,000 Harrah's Operating Co., Inc.
7.875% due 12/15/05................... 1,125,681
4,825,000 MGM Grand, Inc.
6.875% due 02/06/08................... 4,274,168
6,531,000 Starwood Hotels & Resorts
Worldwide, Inc.
7.375% due 11/15/15................... 4,994,510
------------
10,394,359
------------
INDUSTRIAL -- 5.6%
1,500,000 Bowater, Inc.
8.50% due 12/15/01.................... 1,523,682
5,750,000 Browning-Ferris Industries, Inc.
7.40% due 09/15/35.................... 4,067,492
1,750,000 CSC Holdings, Inc.
7.25% due 07/15/08.................... 1,658,125
1,700,000 CSC Holdings, Inc.
8.125% due 07/15/09................... 1,697,875
3,600,000 du Pont (E.I.) de Nemours & Co.
6.75% due 10/15/04.................... 3,551,536
5,700,000 du Pont (E.I.) de Nemours & Co.
6.75% due 09/01/07.................... 5,510,606
1,420,000 Equistar Chemicals LP
8.75% due 02/15/09.................... 1,399,312
1,150,000 Federal-Mogul Corp.
7.375% due 01/15/06................... 1,053,696
1,900,000 Georgia Gulf Corp.
7.625% due 11/15/05................... 1,743,711
1,000,000 Pioneer Natural Resources Co.
6.50% due 01/15/08.................... 848,561
5,650,000 Pioneer Natural Resources Co.
7.20% due 01/15/28.................... 4,282,253
3,600,000 Placer Dome, Inc.
7.125% due 05/15/03................... 3,492,262
7,300,000 Placer Dome, Inc.
7.125% due 06/15/07................... 6,697,253
2,800,000 Polaroid Corp.
11.50% due 02/15/06................... 2,772,000
5,000,000 Rohm & Haas Co.
6.95% due 07/15/04.................... 4,942,570
4,500,000 Vaster Resources, Inc.
6.50% due 04/01/09.................... 4,177,759
6,300,000 Weyerhaeuser Co.
7.25% due 07/01/13.................... 6,064,600
------------
55,483,293
------------
MEDIA & SERVICES -- 3.9%
10,000,000 British Sky Broadcasting Group PLC
6.875% due 02/23/09................... 8,812,970
2,000,000 CF Cable TV, Inc.
11.625% due 02/15/05.................. 2,127,414
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-2
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- ------------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
$ 1,000,000 Continental Cablevision, Inc.
9.50% due 08/01/13.................... $ 1,091,996
6,300,000 Cox Communications, Inc.
7.50% due 08/15/04.................... 6,329,660
7,200,000 Fox/Liberty Networks LLC
8.875% due 08/15/07................... 7,344,000
^4,000,000 Liberty Media Group
7.875% due 07/15/09................... 3,981,876
3,019,000 Time Warner Enterprises, Co. LP
8.875% due 10/01/12................... 3,253,214
5,900,000 Turner Broadcasting System, Inc.
7.40% due 02/01/04.................... 5,889,073
------------
38,830,203
------------
PACKAGING & CONTAINERS -- 0.4%
2,550,000 Domtar, Inc.
9.50% due 08/01/16.................... 2,728,500
1,000,000 Owens-Illinois, Inc.
8.10% due 05/15/07.................... 950,657
------------
3,679,157
------------
REAL ESTATE -- 0.5%
5,000,000 Duke Realty LP (REIT)
7.25% due 09/22/02.................... 4,932,770
------------
RETAIL -- 2.2%
2,700,000 Ahold Finance USA, Inc.
6.25% due 05/01/09.................... 2,449,421
1,750,000 Kmart Corp.
7.75% due 10/01/12.................... 1,548,379
5,000,000 Kmart Corp.
8.96% due 12/10/19.................... 4,833,030
4,000,000 Kmart Corp.
12.50% due 03/01/05................... 4,504,884
8,585,000 Stop & Shop Cos., Inc. (The)
9.75% due 02/01/02.................... 8,977,944
------------
22,313,658
------------
TELECOMMUNICATIONS -- 2.5%
9,500,000 AT&T Corp.
6.50% due 03/15/29.................... 8,133,482
7,000,000 AT&T Corp.
7.00% due 05/15/05.................... 6,941,970
1,230,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.................. 1,297,650
7,000,000 Tele-Communications, Inc.
8.35% due 02/15/05.................... 7,295,631
------------
23,668,733
------------
TEXTILE -- 0.6%
^7,500,000 Levi Straus & Co.
7.00% due 11/01/06.................... 5,632,642
------------
TRANSPORTATION -- 1.5%
400,000 AMR Corp.
10.00% due 03/07/01................... 411,830
6,624,893 Continental Airlines, Inc.
7.461% due 04/01/13................... 6,360,029
4,000,000 CSX Corp.
7.25% due 05/01/04.................... 3,960,860
TRANSPORTATION -- (CONTINUED)
$ 500,000 Interpool, Inc.
7.20% due 08/01/07.................... $ 408,196
4,547,596 U.S. Air, Inc., Class A
6.76% due 04/15/08.................... 4,239,859
------------
15,380,774
------------
UTILITIES -- 6.1%
1,650,000 Calpine Corp.
7.625% due 04/15/06................... 1,571,625
1,500,000 Chesapeake & Potomac Telephone Co.
8.30% due 08/01/31.................... 1,565,725
1,750,000 Cleveland Electric Illuminating Co.
7.13% due 07/01/07.................... 1,671,552
4,500,000 Edison International
6.875% due 09/15/04................... 4,406,908
1,341,000 El Paso Electric Co.
9.40% due 05/01/11.................... 1,433,345
7,250,000 Illinois Power Co.
6.25% due 07/15/02.................... 7,057,831
4,725,000 Niagara Mohawk Power Corp.
6.875% due 03/01/01................... 4,707,300
5,179,270 Niagara Mohawk Power Corp.
7.25% due 10/01/02.................... 5,161,996
13,150,000 PacifiCorp
6.375% due 05/15/08................... 12,172,297
3,100,000 PacifiCorp
6.12% due 01/15/06.................... 2,887,860
6,000,000 Philadelphia Electric Co.
5.625% due 11/01/01................... 5,853,672
9,000,000 Philadelphia Electric Co.
7.50% due 07/15/02.................... 9,039,924
4,000,000 Public Service Electric & Gas Co.
7.00% due 09/01/24.................... 3,516,792
------------
61,046,827
------------
WASTE MANAGEMENT -- 0.3%
^4,000,000 Waste Management, Inc.
7.375% due 05/15/29................... 3,150,412
------------
Total corporate notes................... $551,421,544
============
ENHANCED EQUIPMENT TRUST CERTIFICATES -- 0.3%
2,280,001 Norwest Airlines Corp.
11.30% due 06/21/14................... $ 2,517,941
============
FOREIGN/YANKEE BONDS & NOTES -- 3.0%
FOREIGN CORPORATIONS -- 1.2%
1,800,000 Hydro-Quebec
8.40% due 01/15/22.................... $ 1,914,696
1,800,000 Hydro-Quebec
9.50% due 11/15/30.................... 2,140,470
6,000,000 KFW International Finance, Inc.
9.50% due 12/15/00.................... 6,169,422
2,100,000 Petroleos Mexicanos
9.50% due 09/15/27.................... 2,100,000
------------
12,324,588
------------
FOREIGN GOVERNMENTS -- 1.8%
3,200,000 Province of Alberta
4.875% due 10/29/03................... 2,995,328
</TABLE>
MF-3
<PAGE>
HARTFORD BOND HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- ------------
<S> <C>
FOREIGN/YANKEE BONDS & NOTES -- (CONTINUED)
FOREIGN GOVERNMENTS -- (CONTINUED)
$ 3,563,000 Province of Manitoba
5.50% due 10/01/08.................... $ 3,187,388
5,350,000 Province of Quebec
5.75% due 02/15/09.................... 4,778,299
5,000,000 Province of Quebec
7.50% due 09/15/29.................... 4,871,700
2,000,000 Republic of Venezuela
8.50% due 03/31/20.................... 1,407,500
------------
17,240,215
------------
Total foreign/yankee bonds & notes...... $ 29,564,803
============
U.S. TREASURIES & FEDERAL AGENCIES -- 28.8%
FEDERAL NATIONAL MORTGAGE ASSOCIATION --
9.7%
82,732,245 6.00% due 07/01/12 - 08/01/29........... $ 77,759,486
FNMA Multifamily DUS
2,874,361 6.48% due 12/01/05...................... 2,771,983
5,387,690 6.50% due 10/01/12 - 09/01/28........... 5,188,622
11,600,000 7.50% due 01/01/30...................... 11,473,119
------------
97,193,210
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
-- 1.2%
12,969,117 6.00% due 01/15/29 - 10/15/29........... 11,809,151
------------
U.S. TREASURY BONDS -- 10.4%
6,050,000 6.375% due 08/15/27..................... 5,808,000
692,000 6.75% due 08/15/26...................... 695,027
940,000 7.50% due 11/15/24...................... 1,025,775
2,150,000 7.625% due 02/15/25..................... 2,382,468
3,380,000 8.125% due 08/15/19..................... 3,851,087
25,580,000 8.75% due 05/15/17 - 08/15/20........... 30,614,858
28,895,000 8.875% due 08/15/17..................... 34,919,500
12,430,000 10.625% due 08/15/15.................... 16,924,228
5,830,000 11.875% due 11/15/03.................... 6,883,043
------------
103,103,986
------------
U.S. TREASURY INFLATION-INDEXED
SECURITIES -- 7.5%
6,168,641 3.375% due 01/15/07..................... 6,053,774
70,491,264 3.625% due 07/15/02 - 04/15/28.......... 68,148,205
------------
74,201,979
------------
Total U.S. treasuries & federal
agencies................................ $286,308,326
============
SHORT-TERM SECURITIES -- 7.8%
COMMERCIAL PAPER -- 2.8%
7,100,000 Bell Atlantic Corp.
5.90% due 01/19/00.................... $ 7,079,055
SHORT-TERM SECURITIES -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
$ 2,700,000 Conoco, Inc.
5.97% due 02/10/00.................... $ 2,682,090
7,100,000 General Electric Capital Corp.
5.90% due 01/27/00.................... 7,069,746
5,000,000 Guident Corp.
6.35000% due 02/18/00................. 4,957,666
6,000,000 TRW, Inc.
6.39% due 02/22/00.................... 5,944,620
------------
27,733,177
------------
REPURCHASE AGREEMENT -- 5.0%
49,830,000 Interest in $208,259,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.80% due 01/03/00;
maturity amount $49,841,627
(Collateralized by $211,642,000 U.S.
Treasury Notes 5.50% - 6.875% due
05/15/01 - 05/15/06).................... 49,830,000
------------
Total short-term securities............. $ 77,563,177
============
<CAPTION>
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total asset-backed securities (cost
$25,264,414)........................... 2.5% $25,186,383
Total collateralized mortgage
obligations (cost $2,471,682).......... 0.2 2,466,273
Total commercial mortgage-backed
securities (cost $17,617,377).......... 1.7 16,673,615
Total corporate notes (cost
$571,045,092).......................... 55.4 551,421,544
Total enhanced equipment trust
certificates (cost $2,813,081)......... 0.3 2,517,941
Total foreign/yankee bonds & notes (cost
$30,891,618)........................... 3.0 29,564,803
Total U.S. treasuries & federal agencies
(cost $299,255,497).................... 28.8 286,308,326
Total short-term securities (cost
$77,563,177)........................... 7.8 77,563,177
----- -----------
Total investment in securities (total
cost $1,026,921,938)................... 99.7 991,702,062
Cash, receivables and other assets...... 1.6 15,558,849
Payable for securities purchased........ (1.2) (11,625,406)
Payable for Fund shares redeemed........ (0.1) (933,178)
Other liabilities....................... (0.0) (23,959)
----- -----------
Net assets.............................. 100.0% $994,678,368
===== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-4
<PAGE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.10 per share;
2,000,000,000 shares authorized; 1,000,811,188
shares outstanding............................... $100,081,119
Capital surplus................................... 945,020,923
Accumulated undistributed net investment income... 4,520,247
Accumulated net realized loss on investments...... (19,492,639)
Unrealized depreciation of investments............ (35,219,876)
Unrealized depreciation of futures
contracts(Section)............................... (231,406)
------------
Net assets........................................ $994,678,368
============
Class IA
Net asset value per share ($978,860,502
DIVIDED BY 984,905,958 shares outstanding)
(1,600,000,000 shares authorized)................ $0.99
====
Class IB
Net asset value per share ($15,817,866
DIVIDED BY 15,905,230 shares outstanding)
(400,000,000 shares authorized).................. $0.99
====
</TABLE>
^^Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1999, the market value of these securities amounted to $23,895,430 or 2.4%
of net assets.
Section
The Fund had 142 March 2000 U.S. 10 year U.S. Treasury Notes Index Futures
contracts open as of December 31, 1999. These contracts had a value of
$13,612,031 as of December 31, 1999 and were collateralized by Bell
Atlantic Financial Services and General Electric Capital Corp. Commercial
Paper. The discount rates and maturity dates were 5.90% 01/19/00 and 5.90%
01/27/00 respectively.
MF-5
<PAGE>
HARTFORD STOCK HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- 95.1%
AEROSPACE & DEFENSE -- 1.9%
1,050,000 Honeywell International, Inc............ $ 60,571,875
1,900,000 United Technologies Corp................ 123,500,000
--------------
184,071,875
--------------
COMMUNICATIONS
EQUIPMENT -- 9.7%
*100,000 Broadcom Corp., Class A................. 27,237,500
*2,625,000 Cisco Systems, Inc...................... 281,203,125
*200,000 JDS Uniphase Corp....................... 32,262,500
2,600,000 Lucent Technologies, Inc................ 194,512,500
1,250,000 Motorola, Inc........................... 184,062,500
850,000 Nokia Corp. ADR......................... 161,500,000
*350,000 Sprint Corp. (PCS Group)................ 35,875,000
--------------
916,653,125
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 2.5%
1,500,000 International Business Machines Corp.... 162,000,000
3,300,000 Xerox Corp.............................. 74,868,750
--------------
236,868,750
--------------
CONSUMER NON-DURABLES -- 1.4%
1,230,000 Procter & Gamble Co. (The).............. 134,761,875
--------------
CONSUMER SERVICES -- 0.2%
1,302,350 ServiceMaster Co. (The)................. 16,035,188
--------------
ELECTRONICS -- 5.9%
2,030,000 General Electric Co..................... 314,142,500
1,657,000 Intel Corp.............................. 136,391,812
*100,000 PMC-Sierra, Inc......................... 16,031,250
900,000 Texas Instruments, Inc.................. 87,187,500
--------------
553,753,062
--------------
ENERGY & SERVICES -- 7.0%
1,000,000 Burlington Resources, Inc............... 33,062,500
3,000,000 Exxon Mobil Corp........................ 241,687,500
2,000,000 Royal Dutch Petroleum Co................ 120,875,000
2,050,000 Schlumberger Ltd........................ 115,312,500
1,300,000 Texaco, Inc............................. 70,606,250
396,880 Transocean Sedco Forex, Inc............. 13,369,895
2,000,000 Unocal Corp............................. 67,125,000
--------------
662,038,645
--------------
FINANCIAL SERVICES -- 13.2%
1,500,000 American General Corp................... 113,812,500
1,381,250 American International Group, Inc....... 149,347,656
5,457,000 Associates First Capital Corp., 149,726,437
Class A.................................
3,079,500 Citigroup, Inc.......................... 171,104,718
1,050,000 Fannie Mae.............................. 65,559,375
3,050,000 Franklin Resources, Inc................. 97,790,625
2,400,000 Marsh & McLennan Cos., Inc.............. 229,650,000
1,500,000 Merrill Lynch & Co., Inc................ 125,250,000
1,850,000 State Street Corp....................... 135,165,625
650,000 U.S. Bancorp............................ 15,478,125
--------------
1,252,885,061
--------------
FOOD, BEVERAGE & TOBACCO -- 2.7%
1,100,000 PepsiCo, Inc............................ 38,775,000
3,190,000 Philip Morris Co., Inc.................. 73,968,125
FOOD, BEVERAGE & TOBACCO -- (CONTINUED)
*4,000,000 Safeway, Inc............................ $ 142,250,000
--------------
254,993,125
--------------
HEALTH CARE -- 10.6%
2,610,000 Abbott Laboratories..................... 94,775,625
3,550,000 American Home Products Corp............. 140,003,125
1,750,000 Baxter International, Inc............... 109,921,875
850,000 Bristol-Myers Squibb Co................. 54,559,375
2,100,000 Cardinal Health, Inc.................... 100,537,500
1,400,000 Johnson & Johnson Co.................... 130,375,000
2,300,000 Merck & Co., Inc........................ 154,243,750
1,450,000 Pfizer, Inc............................. 47,034,375
1,700,000 Pharmacia & Upjohn, Inc................. 76,500,000
1,169,500 Warner-Lambert Co....................... 95,825,906
--------------
1,003,776,531
--------------
INDUSTRIAL MATERIALS -- 4.5%
1,700,000 Alcoa, Inc.............................. 141,100,000
150,000 Dow Chemical Co. (The).................. 20,043,750
1,450,000 du Pont (E.I.) de Nemours & Co.......... 95,518,750
1,550,000 Praxair, Inc............................ 77,984,375
1,250,000 Weyerhaeuser Co......................... 89,765,625
--------------
424,412,500
--------------
MANUFACTURING -- 3.5%
1,850,000 Caterpillar, Inc........................ 87,065,625
600,000 Corning, Inc............................ 77,362,500
1,250,000 Illinois Tool Works, Inc................ 84,453,125
2,000,000 Tyco International Ltd.................. 77,750,000
--------------
326,631,250
--------------
MEDIA & SERVICES -- 6.1%
*950,000 America Online, Inc..................... 71,665,625
*2,723,000 AT&T - Liberty Media Group, Class A..... 154,530,250
*1,880,000 CBS Corp................................ 120,202,500
2,438,900 Gannett Co., Inc........................ 198,922,781
100,000 Sony Corp. ADR.......................... 28,475,000
--------------
573,796,156
--------------
REAL ESTATE -- 0.0%
*6,150 Security Capital Group, Inc.,
Class A................................. 3,813,000
--------------
RETAIL -- 6.8%
2,200,000 CVS Corp................................ 87,862,500
2,407,500 Home Depot, Inc. (The).................. 165,064,218
4,100,000 McDonald's Corp......................... 165,281,250
3,200,000 Wal-Mart Stores, Inc.................... 221,200,000
--------------
639,407,968
--------------
SOFTWARE & SERVICES -- 9.4%
2,251,000 Automatic Data Processing, Inc.......... 121,272,625
*1,100,000 Computer Sciences Corp.................. 104,087,500
1,516,600 Electronic Data Systems Corp............ 101,517,412
*3,500,000 Microsoft Corp.......................... 408,625,000
*1,100,000 Oracle Corp............................. 123,268,750
*200,000 VERITAS Software Corp................... 28,625,000
--------------
887,396,287
--------------
TRANSPORTATION -- 2.2%
*2,170,000 AMR Corp................................ 145,390,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-6
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
TRANSPORTATION -- (CONTINUED)
1,900,000 CSX Corp................................ $ 59,612,500
--------------
205,002,500
--------------
UTILITIES -- 7.5%
2,810,000 AT&T Corp............................... 142,607,500
2,200,000 Bell Atlantic Corp...................... 135,437,500
*4,007,925 MCI WorldCom, Inc....................... 212,670,520
200,000 Nippon Telegraph & Telephone Corp.
ADR..................................... 17,225,000
4,200,000 SBC Communications, Inc................. 204,750,000
--------------
712,690,520
--------------
Total common stocks..................... $8,988,987,418
==============
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM SECURITIES -- 4.8%
U.S. TREASURY BILLS -- 1.5%
$ 69,000,000 5.445% due 01/13/00..................... $ 68,874,765
69,000,000 5.45% due 01/13/00...................... 68,874,650
--------------
137,749,415
--------------
REPURCHASE AGREEMENT -- 3.3%
312,513,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $312,580,162
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.000% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... 312,513,000
--------------
Total short-term securities............. $ 450,262,415
==============
<CAPTION>
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total common stocks (cost
$6,089,136,777)........................ 95.1% $8,988,987,418
Total short-term securities (cost
$450,262,415).......................... 4.8 450,262,415
----- --------------
Total investment in securities
(total cost $6,539,399,192)............ 99.9 9,439,249,833
Cash, receivables and other assets...... 0.1 8,648,159
Payable for Fund shares redeemed........ (0.0) (7,822)
Other liabilities....................... (0.0) (66,674)
----- --------------
Net assets.............................. 100.0% $9,447,823,496
===== ==============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.10 per share;
3,000,000,000 shares authorized; 1,321,853,320
shares outstanding............................... $ 132,185,332
Capital surplus................................... 5,405,964,712
Accumulated undistributed net investment income... 2,443,386
Accumulated undistributed net realized gain on
investments...................................... 1,007,379,425
Unrealized appreciation of investments............ 2,899,850,641
--------------
Net assets........................................ $9,447,823,496
==============
Class IA
Net asset value per share ($9,400,384,869
DIVIDED BY 1,315,219,533 shares outstanding)
(2,250,000,000 shares authorized)................ $7.15
=====
Class IB
Net asset value per share ($47,438,627
DIVIDED BY 6,633,787 shares outstanding)
(750,000,000 shares authorized).................. $7.15
=====
</TABLE>
* Non-income producing during the period.
MF-7
<PAGE>
HARTFORD MONEY MARKET HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
COMMERCIAL PAPER -- 67.7%
$ 10,000,000 7-Eleven, Inc.
5.63% due 01/18/00.................... $ 9,973,413
20,000,000 7-Eleven, Inc.
6.02% due 03/13/00.................... 19,759,200
20,000,000 Abbey National PLC
4.93% due 01/18/00.................... 19,953,438
21,000,000 Abbey National PLC
6.22% due 01/04/00.................... 20,989,115
10,000,000 BankAmerica Corp.
5.05% due 02/14/00.................... 9,938,277
10,000,000 BankAmerica Corp.
5.72% due 03/06/00.................... 9,896,722
20,000,000 Bemis Co., Inc.
5.33% due 02/07/00.................... 19,890,438
10,000,000 Bemis Co., Inc.
5.37% due 02/14/00.................... 9,934,366
20,000,000 Bradford & Bingley Building Society
5.86% due 04/03/00.................... 19,697,233
15,000,000 CAFCO
5.75% due 01/31/00.................... 14,928,125
20,000,000 Campbell Soup Co.
4.83% due 01/31/00.................... 19,919,500
20,000,000 Chase Manhatten Corp. (The)
5.72% due 02/22/00.................... 19,834,755
20,000,000 CIESCO LP
5.97% due 01/26/00.................... 19,917,083
10,000,000 Countrywide Home Loan, Inc.
5.25% due 01/03/00.................... 9,997,083
20,000,000 Countrywide Home Loan, Inc.
5.25% due 01/06/00.................... 19,985,416
20,000,000 Countrywide Home Loan, Inc.
6.17% due 01/03/00.................... 19,993,144
20,000,000 Daimler Chrysler N.A. Holding
5.82% due 03/23/00.................... 19,734,866
20,000,000 du Pont (E.I.) de Nemours & Co.
5.72% due 03/07/00.................... 19,790,266
25,000,000 Emerson Electric Co.
5.30% due 02/28/00.................... 24,786,527
20,000,000 Finova Capital Corp.
5.89% due 01/26/00.................... 19,918,194
25,000,000 Fleet Financial Group
5.75% due 02/15/00.................... 24,820,312
20,000,000 Ford Motor Credit Co.
5.38% due 02/22/00.................... 19,844,577
9,325,000 Ford Motor Credit Co.
5.50% due 01/13/00.................... 9,307,904
10,000,000 General Electric Capital Corp.
5.38% due 02/08/00.................... 9,943,211
10,000,000 General Electric Capital Corp.
5.91% due 04/17/00.................... 9,824,341
20,000,000 General Electric Capital Corp.
5.38% due 02/14/00.................... 19,868,488
10,000,000 General Motors Acceptance Corp.
5.37% due 02/28/00.................... 9,913,483
10,000,000 Goldman Sachs Group, Inc.
6.00% due 05/22/00.................... 9,763,333
21,000,000 GTE Corp.
5.40% due 01/26/00.................... 20,921,250
PRINCIPAL MARKET
AMOUNT VALUE
- -------- ---------
$ 20,000,000 Halifax PLC
5.88% due 03/23/00.................... $ 19,732,133
20,000,000 International Lease Finance Corp.
5.77% due 02/23/00.................... 19,830,105
20,000,000 KFW International Finance, Inc.
5.86% due 03/27/00.................... 19,720,022
20,000,000 Lucent Technologies, Inc.
4.92% due 01/24/00.................... 19,937,133
10,000,000 Market Street Funding
5.75% due 01/05/00.................... 9,993,611
10,000,000 Market Street Funding
5.80% due 01/25/00.................... 9,961,333
20,000,000 Market Street Funding
5.82% due 02/11/00.................... 19,867,433
10,643,000 Market Street Funding
6.15% due 01/14/00.................... 10,619,363
10,000,000 Merita Bank Ltd.
5.38% due 02/09/00.................... 9,941,716
20,000,000 Merita Bank Ltd.
5.92% due 03/20/00.................... 19,740,177
10,000,000 Merrill Lynch & Co., Inc.
5.36% due 02/28/00.................... 9,913,644
10,000,000 Merrill Lynch & Co., Inc.
5.83% due 06/14/00.................... 9,732,791
20,000,000 Merrill Lynch & Co., Inc.
5.90% due 03/14/00.................... 19,760,722
10,000,000 Morgan Stanley Dean Witter & Co.
5.43% due 01/24/00.................... 9,965,308
18,000,000 National Rural Utilities
5.77% due 03/13/00.................... 17,792,280
20,000,000 National Rural Utilities
5.90% due 03/24/00.................... 19,727,944
20,000,000 Nationwide Building Society
5.74% due 02/22/00.................... 19,834,177
20,000,000 Spintab
5.74% due 02/16/00.................... 19,853,311
10,000,000 Spintab
6.06% due 01/25/00.................... 9,959,600
19,000,000 Stanley Works (The)
5.95% due 03/03/00.................... 18,805,302
20,000,000 Triple A One Funding Corp.
6.04% due 01/14/00.................... 19,956,377
20,000,000 Westpac Banking
5.88% due 04/07/00.................... 19,683,133
20,000,000 Wood Street Funding Corp.
6.08% due 01/12/00.................... 19,962,844
------------
Total commercial paper.................. $857,334,519
============
CORPORATE NOTES -- 24.8%
10,000,000 BankAmerica Corp.
6.315% due 02/09/00................... $ 10,002,493
20,000,000 Citigroup, Inc.
6.261% due 02/03/00................... 20,001,738
20,000,000 Comerica, Inc.
6.422% due 02/02/00................... 19,999,483
20,000,000 Dow Chemical Co. (The)
6.021% due 03/15/00................... 19,998,500
10,000,000 First Union National Bank
6.015% due 03/10/00................... 10,000,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-8
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ ------------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
$ 20,000,000 General Mills, Inc.
6.006% due 07/17/00................... $ 19,989,445
20,000,000 General Motors Acceptance Corp.
6.141% due 02/03/00................... 20,000,184
^^20,000,000 Goldman Sachs Group, Inc.
6.285% due 02/01/00................... 20,000,000
10,000,000 Key Bank N.A.
6.196% due 01/31/00................... 9,999,850
25,000,000 Morgan (J.P.) & Co., Inc.
6.051% due 02/25/00................... 25,000,720
10,000,000 Morgan Stanley Dean Witter & Co.
6.18% due 03/10/00.................... 10,002,011
15,000,000 Morgan Stanley Dean Witter & Co.
6.277% due 01/20/00................... 15,000,988
24,000,000 Texaco Capital, Inc.
6.011% due 05/03/00................... 23,992,419
30,000,000 Toyota Motor Credit Corp.
6.021% due 01/09/01................... 29,978,791
20,000,000 Wachovia Corp.
6.131% due 09/14/00................... 19,997,273
20,000,000 Wells Fargo & Co.
6.010% due 03/10/00................... 19,997,937
20,000,000 Xerox Credit Corp.
6.043% due 12/08/00................... 19,993,119
------------
Total corporate notes................... $313,954,951
============
REPURCHASE AGREEMENT -- 9.4%
119,389,000 Interest in $208,259,000 joint
repurchase agreement dated 12/31/99
with State Street Bank 2.80% due
01/03/00; maturity amount $119,416,857
(Collateralized by $211,642,000 U.S.
Treasury Notes 5.50% - 6.875% due
05/15/01 - 05/15/06).................. $119,389,000
============
<CAPTION>
MARKET
VALUE
--------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total commercial paper (cost
$857,334,519).......................... 67.7% $ 857,334,519
Total corporate notes (cost
$313,954,951).......................... 24.8 313,954,951
Total repurchase agreement (cost
$119,389,000).......................... 9.4 119,389,000
----- --------------
Total investment in securities (total
cost $1,290,678,470)................... 101.9 1,290,678,470
Cash, receivables and other assets...... 0.6 8,169,566
Payable for Fund shares redeemed........ (2.1) (26,958,502)
Payable for dividends................... (0.4) (5,640,996)
Other liabilities....................... (0.0) (8,804)
----- --------------
Net assets.............................. 100.0% $1,266,239,734
===== ==============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.10 per share;
3,000,000,000 shares authorized; 1,266,239,734
shares outstanding............................... $ 126,623,973
Capital surplus................................... 1,139,615,761
--------------
Net assets........................................ $1,266,239,734
==============
Class IA
Shares of beneficial interest outstanding, $0.10
par value, 2,475,000,000 shares authorized (Net
assets $1,257,435,810)........................... 1,257,435,810
=============
Net asset value................................... $1.00
====
Class IB
Shares of beneficial interest outstanding, $0.10
par value, 525,000,000 shares authorized (Net
assets $8,803,924)............................... 8,803,924
=============
Net asset value................................... $1.00
====
</TABLE>
^^Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At December 31, 1999, the market
value of these securities amounted to $20,000,000 or 1.6% of net assets.
MF-9
<PAGE>
HARTFORD ADVISERS HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- --------------
<S> <C>
ASSET-BACKED SECURITIES -- 0.5%
^^ 43,000,000 AESOP Funding II LLC, Series 1998-1,
Class A
6.14% due 05/20/06.................... $ 40,951,910
24,144,463 Newcourt, Series 1997-1, Class A4
6.193% due 05/20/05................... 23,993,077
--------------
Total asset-backed securities........... $ 64,944,987
==============
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.5%
18,000,000 Asset Securitization Corp., Series
1997-D4, Class A1D
7.49% due 04/14/29.................... $ 17,942,040
10,000,000 Asset Securitization Corp., Series
1997-D5, Class A1E
6.93% due 02/14/41.................... 9,229,800
25,000,000 Chase Commercial Mortgage Securities
Corp., Series 1997-1, Class A2
7.37% due 02/19/07.................... 24,760,500
17,225,000 First Union - Lehman Brothers
7.38% due 04/18/07.................... 17,007,792
--------------
Total commercial mortgage-backed
securities.............................. $ 68,940,132
==============
<CAPTION>
SHARES
- ------
<S> <C>
COMMON STOCKS -- 58.3%
AEROSPACE & DEFENSE -- 1.0%
500,000 Honeywell International, Inc............ $ 28,843,750
1,650,000 United Technologies Corp................ 107,250,000
--------------
136,093,750
--------------
COMMUNICATIONS
EQUIPMENT -- 4.8%
*100,000 Broadcom Corp., Class A................. 27,237,500
*2,400,000 Cisco Systems, Inc...................... 257,100,000
*200,000 JDS Uniphase Corp....................... 32,262,500
2,400,000 Lucent Technologies, Inc................ 179,550,000
1,100,000 Motorola, Inc........................... 161,975,000
*200,000 Sprint Corp. (PCS Group)................ 20,500,000
--------------
678,625,000
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 1.7%
1,540,000 International Business Machines Corp.... 166,320,000
3,200,000 Xerox Corp.............................. 72,600,000
--------------
238,920,000
--------------
CONSUMER NON-DURABLES -- 0.9%
1,175,000 Procter & Gamble Co. (The).............. 128,735,937
--------------
CONSUMER SERVICES -- 0.1%
1,456,050 ServiceMaster Co. (The)................. 17,927,615
--------------
ELECTRONICS -- 3.5%
1,800,000 General Electric Co..................... 278,550,000
1,483,900 Intel Corp.............................. 122,143,518
*100,000 PMC-Sierra, Inc......................... 16,031,250
900,000 Texas Instruments, Inc.................. 87,187,500
--------------
503,912,268
--------------
<CAPTION>
MARKET
SHARES VALUE
- -------------- --------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
ENERGY & SERVICES -- 4.2%
900,000 Burlington Resources, Inc............... $ 29,756,250
2,600,000 Exxon Mobil Corp........................ 209,462,500
1,800,000 Royal Dutch Petroleum Co................ 108,787,500
1,970,000 Schlumberger Ltd........................ 110,812,500
1,250,000 Texaco, Inc............................. 67,890,625
381,392 Transocean Sedco Forex, Inc............. 12,848,143
1,675,000 Unocal Corp............................. 56,217,187
--------------
595,774,705
--------------
FINANCIAL SERVICES -- 8.3%
1,300,000 American General Corp................... 98,637,500
1,375,000 American International Group, Inc....... 148,671,875
5,105,400 Associates First Capital Corp.,
Class A................................. 140,079,412
2,950,000 Citigroup, Inc.......................... 163,909,375
1,000,000 Fannie Mae.............................. 62,437,500
3,150,000 Franklin Resources, Inc................. 100,996,875
2,395,000 Marsh & McLennan Cos., Inc.............. 229,171,562
1,400,000 Merrill Lynch & Co., Inc................ 116,900,000
1,750,000 State Street Corp....................... 127,859,375
--------------
1,188,663,474
--------------
FOOD, BEVERAGE & TOBACCO -- 1.6%
800,000 PepsiCo, Inc............................ 28,200,000
3,170,000 Philip Morris Co., Inc.................. 73,504,375
*3,614,000 Safeway, Inc............................ 128,522,875
--------------
230,227,250
--------------
HEALTH CARE -- 6.6%
2,410,000 Abbott Laboratories..................... 87,513,125
3,100,000 American Home Products Corp............. 122,256,250
1,500,000 Baxter International, Inc............... 94,218,750
750,000 Bristol-Myers Squibb Co................. 48,140,625
1,700,000 Cardinal Health, Inc.................... 81,387,500
1,670,000 Johnson & Johnson Co.................... 155,518,750
2,320,000 Merck & Co., Inc........................ 155,585,000
1,250,000 Pfizer, Inc............................. 40,546,875
1,500,000 Pharmacia & Upjohn, Inc................. 67,500,000
1,072,700 Warner-Lambert Co....................... 87,894,356
--------------
940,561,231
--------------
INDUSTRIAL MATERIALS -- 2.9%
1,500,000 Alcoa, Inc.............................. 124,500,000
150,000 Dow Chemical Co. (The).................. 20,043,750
1,550,000 du Pont (E.I.) de Nemours & Co.......... 102,106,250
1,400,000 Praxair, Inc............................ 70,437,500
1,400,000 Weyerhaeuser Co......................... 100,537,500
--------------
417,625,000
--------------
MANUFACTURING -- 2.2%
1,700,000 Caterpillar, Inc........................ 80,006,250
600,000 Corning, Inc............................ 77,362,500
1,050,000 Illinois Tool Works, Inc................ 70,940,625
2,000,000 Tyco International Ltd.................. 77,750,000
--------------
306,059,375
--------------
MEDIA & SERVICES -- 4.1%
*750,000 America Online, Inc..................... 56,578,125
*2,773,000 AT&T - Liberty Media Group, Class A..... 157,367,750
*1,800,000 CBS Corp................................ 115,087,500
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-10
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- --------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
2,700,000 Gannett Co., Inc........................ $ 220,218,750
100,000 Sony Corp. ADR.......................... 28,475,000
--------------
577,727,125
--------------
REAL ESTATE -- 0.0%
*6,150 Security Capital Group, Inc., Class A.. 3,813,000
--------------
RETAIL -- 4.4%
2,319,600 CVS Corp................................ 92,639,025
2,400,000 Home Depot, Inc. (The).................. 164,550,000
4,000,000 McDonald's Corp......................... 161,250,000
3,000,000 Wal-Mart Stores, Inc.................... 207,375,000
--------------
625,814,025
--------------
SOFTWARE & SERVICES -- 5.8%
2,000,000 Automatic Data Processing, Inc.......... 107,750,000
*1,000,000 Computer Sciences Corp.................. 94,625,000
1,483,400 Electronic Data Systems Corp............ 99,295,087
*3,300,000 Microsoft Corp.......................... 385,275,000
*1,000,000 Oracle Corp............................. 112,062,500
*200,000 VERITAS Software Corp................... 28,625,000
--------------
827,632,587
--------------
TRANSPORTATION -- 1.4%
*2,050,000 AMR Corp................................ 137,350,000
1,800,000 CSX Corp................................ 56,475,000
--------------
193,825,000
--------------
UTILITIES -- 4.8%
2,780,000 AT&T Corp............................... 141,085,000
1,800,000 Bell Atlantic Corp...................... 110,812,500
*3,900,000 MCI WorldCom, Inc....................... 206,943,750
200,000 Nippon Telegraph & Telephone Corp.
ADR..................................... 17,225,000
4,125,000 SBC Communications, Inc................. 201,093,750
--------------
677,160,000
--------------
Total common stocks..................... $8,289,097,342
==============
<CAPTION>
PRINCIPAL
AMOUNT
- --------------
<S> <C>
CORPORATE NOTES -- 15.1%
AEROSPACE & DEFENSE -- 0.1%
$ 13,135,000 Honeywell International, Inc.
6.60% due 04/15/01.................... $ 13,091,418
--------------
COLLEGES -- 0.1%
10,900,000 Harvard University
8.125% due 04/15/2007................. 11,471,759
--------------
COMMUNCATIONS
EQUIPMENT -- 0.1%
21,000,000 Motorola, Inc.
7.60% due 01/01/07.................... 21,063,966
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 0.3%
30,000,000 International Business Machines Corp.
6.50% due 01/15/28.................... 26,557,230
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- ---------------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
COMPUTERS & OFFICE
EQUIPMENT -- (CONTINUED)
$ 18,000,000 Pitney Bowes, Inc.
5.50% due 04/15/04.................... $ 16,991,784
--------------
43,549,014
--------------
CONSUMER DURABLES -- 0.4%
35,000,000 Ford Motor Co.
6.625% due 10/01/28................... 30,439,080
35,000,000 General Motors Corp.
6.75% due 05/01/28.................... 30,997,470
--------------
61,436,550
--------------
CONSUMER NON-DURABLES -- 0.1%
18,000,000 Colgate-Palmolive Co.
5.58% due 11/06/08.................... 15,993,972
--------------
ENERGY & SERVICES -- 0.3%
12,250,000 BP Amoco PLC
6.50% due 08/01/07.................... 11,801,515
18,140,000 Conoco, Inc.
5.90% due 04/15/04.................... 17,296,127
15,000,000 Hydro-Quebec
7.375% due 02/01/03................... 15,118,350
--------------
44,215,992
--------------
FINANCIAL SERVICES -- 7.1%
40,000,000 ACE INA Holdings
8.30% due 08/15/06.................... 39,941,480
30,000,000 Allmerica Financial Corp.
7.625% due 10/15/25................... 28,183,350
24,000,000 Allstate Corp. (The)
6.75% due 06/15/03.................... 23,429,640
26,485,000 Amerus Life Holdings
6.95% due 06/15/05.................... 24,074,944
21,670,000 Amvescap PLC
6.60% due 05/15/05.................... 19,446,094
30,000,000 Apache Finance Property Ltd.
7.00% due 03/15/09.................... 28,305,780
25,000,000 Associated Corp. of North America
6.00% due 07/15/05.................... 23,404,100
15,000,000 Associated Corp. of North America
6.50% due 10/15/02.................... 14,810,730
10,000,000 Bank of Boston Corp.
6.625% due 02/01/04................... 9,712,360
40,000,000 Bank One Corp.
6.875% due 08/01/06................... 38,745,280
20,000,000 BankAmerica Corp.
5.875% due 02/15/09................... 17,814,160
14,825,000 Banponce Corp.
6.75% due 12/15/05.................... 13,855,341
15,000,000 Bayerische Landesbank (NY)
5.625% due 02/26/01................... 14,790,450
25,000,000 Bayerische Landesbank (NY)
5.65% due 02/01/09.................... 21,941,525
10,000,000 Chase Manhattan Corp. (The)
8.50% due 02/15/02.................... 10,293,260
15,740,000 CIGNA Corp.
7.40% due 05/15/07.................... 15,223,539
</TABLE>
MF-11
<PAGE>
HARTFORD ADVISERS HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- --------------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
$ 30,000,000 Cincinnati Financial Corp.
6.90% due 05/15/28.................... $ 26,209,800
20,000,000 CIT Group, Inc. (The)
6.75% due 05/14/01.................... 19,938,620
20,000,000 Citigroup, Inc.
5.625% due 02/15/01................... 19,727,120
10,000,000 Citigroup, Inc.
6.25% due 12/01/05.................... 9,515,140
24,000,000 Credit National
7.00% due 11/14/05.................... 22,989,600
^^28,715,000 Development Bank of Singapore
7.875% due 08/10/09................... 28,267,390
30,000,000 Equitable Cos., Inc.
7.00% due 04/01/28.................... 26,833,800
18,000,000 Finova Capital Corp.
6.39% due 10/08/02.................... 17,508,726
25,000,000 First Union National Bank
5.80% due 12/01/08.................... 22,066,000
20,000,000 Fleet Financial Group
6.875% due 01/15/28................... 17,598,220
20,000,000 Heller Financial
6.382% due 11/10/00................... 19,909,760
15,000,000 Home Savings of America
6.00% due 11/01/00.................... 14,900,835
^^27,000,000 Jackson National Life Insurance Co.
8.15% due 03/15/27.................... 26,440,533
36,745,000 Key Bank N.A.
5.80% due 04/01/04.................... 34,486,468
11,400,000 Liberty Financial Co.
6.75% due 11/15/08.................... 10,504,245
^^30,000,000 Liberty Mutual Insurance
8.20% due 05/04/07.................... 30,174,390
^^10,000,000 Lumbermens Mutual Casualty
9.15% due 07/01/26.................... 9,670,360
20,000,000 NationsBank Corp.
7.80% due 09/15/16.................... 20,000,980
^^30,000,000 New England Mutual Life Insurance
7.875% due 02/15/24................... 29,155,740
38,596,829 Postal Square LP
8.95% due 06/15/22.................... 43,282,870
27,600,000 Torchmark Corp.
8.25% due 08/15/09.................... 27,559,897
30,000,000 Toyota Motor Credit Corp.
5.50% due 12/15/08.................... 26,105,400
25,000,000 Transamerica Financial
6.125% due 11/01/01................... 24,517,950
10,000,000 Travelers Property & Casualty
6.75% due 04/15/01.................... 9,964,240
43,000,000 TXU Eastern Funding
6.45% due 05/15/05.................... 40,501,141
^^40,000,000 USAA Capital Corp.
6.90% due 11/01/02.................... 39,694,680
50,000,000 Wells Fargo & Co.
6.50% due 09/03/02.................... 49,437,000
--------------
1,010,932,938
--------------
FOOD, BEVERAGE & TOBACCO -- 0.5%
$ 30,000,000 Coca-Cola Enterprises, Inc.
6.75% due 09/15/28.................... $ 26,481,420
10,000,000 Fairfax Financial Holdings
7.75% due 12/15/03.................... 9,569,980
35,000,000 Whitman Corp.
6.375% due 05/01/09................... 32,101,615
--------------
68,153,015
--------------
HEALTH CARE -- 0.5%
26,000,000 American Home Products Corp.
7.25% due 03/01/23.................... 24,374,428
22,000,000 Becton, Dickinson & Co.
6.70% due 08/01/28.................... 19,104,360
29,000,000 United HealthCare Corp.
6.60% due 12/01/03.................... 27,971,051
--------------
71,449,839
--------------
INDUSTRIAL MATERIALS -- 1.8%
30,000,000 Alcan Aluminum Ltd.
7.25% due 11/01/28.................... 27,271,320
25,000,000 Boise Cascade Office Products Corp.
7.05% due 05/15/05.................... 23,313,300
15,000,000 Husky Oil Ltd.
6.875% due 11/15/03................... 14,370,150
20,000,000 ICI Wilmington
6.95% due 09/15/04.................... 19,493,280
^^29,000,000 Monsanto Co.
6.60% due 12/01/28.................... 24,922,629
25,000,000 Praxair, Inc.
6.15% due 04/15/03.................... 24,098,825
30,000,000 Rockwell International Corp.
6.70% due 01/15/28.................... 26,310,240
40,000,000 Rohm & Haas Co.
7.40% due 07/15/09.................... 39,698,480
35,000,000 USX Corp.
6.65% due 02/01/06.................... 33,124,105
9,250,000 USX Corp.
9.125% due 01/15/13................... 10,029,849
20,000,000 Williams Cos., Inc. (The)
6.50% due 11/15/02.................... 19,589,940
--------------
262,222,118
--------------
MANUFACTURING -- 0.7%
30,000,000 Danaher Corp.
6.00% due 10/15/08.................... 26,979,030
50,000,000 Eaton Corp.
6.95% due 11/15/04.................... 48,900,300
25,000,000 Parker Hannifin Corp.
5.65% due 09/15/03.................... 23,721,000
--------------
99,600,330
--------------
MEDIA & SERVICES -- 0.3%
19,420,000 Scripps (E.W.) Co. (The)
6.375% due 10/15/02................... 19,106,347
10,400,000 Times Mirror Co. (The)
7.50% due 07/01/23.................... 9,858,056
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-12
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- --------------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
$ 10,000,000 Zeneca Group PLC
6.30% due 06/15/03.................... $ 9,764,240
--------------
38,728,643
--------------
REAL ESTATE -- 0.1%
20,000,000 Liberty Property Trust (REIT)
7.25% due 08/15/07.................... 18,517,960
--------------
RETAIL -- 1.1%
40,000,000 Albertson's, Inc.
6.55% due 08/01/04.................... 38,974,560
20,200,000 Dayton-Hudson Corp.
5.875% due 11/01/08................... 18,236,257
^^50,000,000 Home Depot, Inc. (The)
6.50% due 09/15/04.................... 49,017,500
50,000,000 Wal-Mart Stores, Inc.
6.875% due 08/10/09................... 48,672,900
--------------
154,901,217
--------------
SOFTWARE & SERVICES -- 0.2%
25,000,000 Computer Associates International, Inc.
6.50% due 04/15/08.................... 22,568,825
--------------
TRANSPORTATION -- 0.2%
23,206,741 Continental Airlines, Inc.
6.90% due 01/02/18.................... 21,571,361
--------------
UTILITIES -- 1.2%
45,000,000 Alabama Power Co.
7.125% due 08/15/04................... 44,700,930
40,000,000 AT&T Corp.
6.50% due 03/15/29.................... 34,246,240
10,000,000 BellSouth Corp.
6.375% due 06/01/28................... 8,450,470
21,350,000 Duke Energy Corp.
6.00% due 12/01/28.................... 16,804,093
30,000,000 MCI WorldCom, Inc.
6.40% due 08/15/05.................... 28,822,170
^^17,285,000 Northern Border Pipeline
7.75% due 09/01/09.................... 16,902,500
11,000,000 Pacific Gas & Electric Co.
7.875% due 03/01/02................... 11,184,140
10,000,000 Southern California Gas Co.
5.75% due 11/15/03.................... 9,551,870
--------------
170,662,413
--------------
Total corporate notes................... $2,150,131,330
==============
FOREIGN GOVERNMENT AGENCIES -- 0.1%
^^20,000,000 Santiago Air
6.95% due 07/01/12.................... $ 18,163,000
==============
FOREIGN GOVERNMENT BONDS -- 0.1%
14,000,000 City of Naples Italy
7.52% due 07/15/06.................... $ 14,051,799
==============
MUNICIPAL BONDS -- 0.1%
7,000,000 Miami Beach, Florida
8.80% due 12/01/15.................... $ 7,274,610
MUNICIPAL BONDS -- (CONTINUED)
$ 13,070,000 Mount Sinai School of Medicine NY
6.00% due 07/01/03.................... $ 12,936,476
--------------
Total municipal bonds................... $ 20,211,086
==============
<CAPTION>
SHARES
- --------------
<S> <C>
PREFERRED STOCKS -- 1.1%
COMMUNICATIONS
EQUIPMENT -- 1.1%
850,000 Nokia Corp. ADR......................... $ 161,500,000
==============
<CAPTION>
PRINCIPAL
AMOUNT
- --------------
<S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- 18.6%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
-- 3.9%
$ 339,783,222 6.00% due 06/15/24 - 03/15/29......... $ 309,396,190
176,944,357 6.50% due 03/15/26 - 08/15/29......... 166,217,357
75,126,545 7.00% due 11/15/23 - 11/15/24......... 73,130,815
929,798 9.00% due 06/20/16 - 7/20/16.......... 971,076
--------------
549,715,438
--------------
U.S. GOVERNMENT AGENCIES -- 0.3%
Tennessee Valley Authority
50,000,000 6.00% due 03/15/13.................... 44,952,800
--------------
U.S. TREASURY BONDS -- 2.7%
406,750,000 6.25% due 08/25/23.................... 383,616,441
--------------
U.S. TREASURY NOTES -- 11.7%
165,000,000 4.625% due 12/31/00................... 162,628,125
618,000,000 5.75% due 06/30/01 - 04/30/03......... 610,309,550
280,000,000 5.875% due 11/15/05................... 271,862,640
132,000,000 6.375% due 08/15/02................... 132,247,500
278,500,000 6.50% due 08/15/05 - 10/15/06......... 278,110,538
107,000,000 7.25% due 08/15/04.................... 110,410,625
100,000,000 7.50% due 11/15/01.................... 102,187,500
--------------
1,667,756,478
--------------
Total U.S. treasuries & federal
agencies............................... $2,646,041,157
==============
SHORT-TERM SECURITIES -- 5.0%
FEDERAL HOME LOAN MORTGAGE ASSOCIATION
-- 0.7%
100,000,000 5.51% due 01/27/00.................... $ 99,586,166
--------------
REPURCHASE AGREEMENT -- 3.0%
419,383,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99
with State Street Bank 2.578% due
01/03/00; maturity amount $419,473,129
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................. 419,383,000
--------------
U.S. TREASURY BILLS -- 1.3%
190,000,000 5.45% due 01/13/00...................... 189,654,991
--------------
Total short-term securities............. $ 708,624,157
==============
</TABLE>
MF-13
<PAGE>
HARTFORD ADVISERS HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
VALUE
---------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total asset-backed securities (cost
$66,978,752)........................... 0.5% $ 64,944,987
Total commercial mortgage-backed
securities (cost $71,201,806).......... 0.5 68,940,132
Total common stocks (cost
$5,363,725,111)........................ 58.3 8,289,097,342
Total corporate notes (cost
$2,293,498,703)........................ 15.1 2,150,131,330
Total foreign government agencies (cost
$19,988,800)........................... 0.1 18,163,000
Total foreign government bonds (cost
$14,000,000)........................... 0.1 14,051,799
Total municipal bonds (cost
$20,245,572)........................... 0.1 20,211,086
Total preferred stocks (cost
$63,971,370)........................... 1.1 161,500,000
Total U.S. treasuries & federal agencies
(cost $2,757,016,733).................. 18.6 2,646,041,157
Total short-term securities (cost
$708,624,157).......................... 5.0 708,624,157
----- ---------------
Total investment in securities
(total cost $11,379,251,004)........... 99.4 14,141,704,990
Cash, receivables and other assets...... 0.6 81,849,465
Payable for Fund shares redeemed........ (0.0) (3,209,098)
Other liabilities....................... (0.0) (132,103)
----- ---------------
Net assets.............................. 100.0% $14,220,213,254
===== ===============
<CAPTION>
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.10 per share;
7,000,000,000 shares authorized; 4,796,363,852
shares outstanding............................... $ 479,636,385
Capital surplus................................... 9,744,226,804
Accumulated undistributed net investment income... 30,238,618
Accumulated undistributed net realized gain on
investments...................................... 1,203,657,461
Unrealized appreciation of investments............ 2,762,453,986
--------------
Net assets........................................ $14,220,213,254
==============
Class IA
Net asset value per share ($14,082,895,254
DIVIDED BY 4,750,074,016 shares outstanding)
(6,500,000,000 shares authorized)................ $2.96
====
Class IB
Net asset value per share ($137,318,000
DIVIDED BY 46,289,836 shares outstanding)
(500,000,000 shares authorized).................. $2.97
====
</TABLE>
* Non-income producing during period
^^Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At December 31, 1999, the market
value of these securities amounted to $313,360,632 or 2.2% of net assets.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-14
<PAGE>
HARTFORD CAPITAL APPRECIATION HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- 89.9%
AEROSPACE & DEFENSE -- 1.1%
1,000,000 Northrop Grumman Corp................... $ 54,062,500
1,336,500 Precision Castparts Corp................ 35,083,125
--------------
89,145,625
--------------
BUSINESS SERVICES -- 2.9%
2,474,800 Comdisco, Inc........................... 92,186,300
*1,390,750 Concord EFS, Inc........................ 35,811,812
*934,900 Ionics, Inc............................. 26,294,062
2,000,000 Manpower, Inc........................... 75,250,000
--------------
229,542,174
--------------
COMMUNICATIONS EQUIPMENT -- 11.4%
*2,639,100 3Com Corp............................... 124,037,700
*143,600 Broadcom Corp., Class A................. 39,113,050
*2,270,000 Cabletron Systems, Inc.................. 59,020,000
*1,534,900 CIENA Corp.............................. 88,256,750
*1,500,000 Cisco Systems, Inc...................... 160,687,500
*978,000 Crown Castle International Corp......... 31,418,250
*400,000 JDS Uniphase Corp....................... 64,525,000
*5,584,200 Marconi PLC............................. 98,460,581
1,450,000 Siemens AG.............................. 184,573,729
*322,500 VeriSign, Inc........................... 61,577,343
--------------
911,669,903
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.3%
*3,000,000 Maxtor Corp............................. 21,750,000
*483,200 NCR Corp................................ 18,301,200
460,846 Psion PLC............................... 19,222,249
*1,600,000 Seagate Technology, Inc................. 74,500,000
2,040,800 Symbol Technologies, Inc................ 129,718,350
--------------
263,491,799
--------------
CONSUMER NON-DURABLES -- 0.1%
143,000 Kimberly-Clark Corp..................... 9,330,750
--------------
CONSUMER SERVICES -- 1.1%
*425,400 Anchor Gaming........................... 18,478,312
*1,000,000 Cheesecake Factory, Inc. (The).......... 35,000,000
1,600,000 International Game Technology........... 32,500,000
--------------
85,978,312
--------------
ELECTRONICS -- 10.9%
*2,000,000 Altera Corp............................. 99,125,000
*1,083,333 Analog Devices, Inc..................... 100,749,969
*850,000 Cognex Corp............................. 33,150,000
*820,900 Credence Systems Corp................... 71,007,850
1,639,100 General Cable Corp...................... 12,395,693
*500,000 Jabil Circuit, Inc...................... 36,500,000
1,500,000 Koninklijke Philips Electronics N.V., NY 202,500,000
Shares..................................
*1,600,000 Micron Technology, Inc.................. 124,400,000
*545,300 PMC-Sierra, Inc......................... 87,418,406
*650,000 Solectron Corp.......................... 61,831,250
*1,200,000 Vishay Intertechnology, Inc............. 37,950,000
--------------
867,028,168
--------------
ENERGY & SERVICES -- 3.7%
*1,925,000 Newpark Resources, Inc.................. 11,790,625
1,094,500 Repsol YPF S.A. ADR..................... 25,447,125
ENERGY & SERVICES -- (CONTINUED)
2,096,200 Suncor Energy, Inc...................... $ 87,516,350
1,169,222 Total Fina S.A. ADR..................... 80,968,623
1,691,570 Transocean Sedco Forex, Inc............. 56,984,764
2,400,000 Union Pacific Resources Group,.......... 30,600,000
--------------
293,307,487
--------------
FINANCIAL SERVICES -- 10.3%
3,400,000 ACE Ltd................................. 56,737,500
1,060,300 AMBAC Financial Group, Inc.............. 55,334,406
1,403,400 Bank One Corp........................... 44,996,512
2,762,100 Citigroup, Inc.......................... 153,469,181
1,000,000 Fannie Mae.............................. 62,437,500
1,436,440 Fleet Boston Financial Corp............. 50,006,067
628,000 GreenPoint Financial Corp............... 14,954,250
1,700,000 Heller Financial, Inc., Class A......... 34,106,250
1,065,500 Legg Mason, Inc......................... 38,624,375
1,000,000 Marsh & McLennan Cos., Inc.............. 95,687,500
1,033,200 MBIA, Inc............................... 54,565,875
1,150,000 Morgan Stanley Dean Witter & Co......... 164,162,500
--------------
825,081,916
--------------
FOOD, BEVERAGE & TOBACCO -- 0.2%
800,000 Philip Morris Co., Inc.................. 18,550,000
--------------
HEALTH CARE -- 10.1%
1,324,700 American Home Products Corp............. 52,242,856
2,865,700 AstraZeneca Group PLC ADR............... 118,606,872
*1,500,000 Boston Scientific Corp.................. 32,812,500
2,100,000 Columbia/HCA Healthcare Corp............ 61,556,250
1,900,000 Eisai Co., Ltd.......................... 36,475,980
*1,950,000 Genzyme Corp............................ 87,750,000
*1,000,000 Gilead Sciences, Inc.................... 54,125,000
*739,200 Immunex Corp............................ 80,942,400
*1,135,000 Magellan Health Services, Inc........... 7,164,687
2,929,200 McKesson HBOC, Inc...................... 66,090,075
11 PE Corp - PE Biosystems Group........... 1,323
3,000,000 Pharmacia & Upjohn, Inc................. 135,000,000
1,400,000 United HealthCare Corp.................. 74,375,000
--------------
807,142,943
--------------
INDUSTRIAL MATERIALS -- 3.6%
2,501,000 AngloGold Ltd. ADR...................... 64,244,437
1,500,000 Engelhard Corp.......................... 28,312,500
*4,479,800 Freeport-McMoRan Copper & Gold, Inc., 94,635,775
Class B.................................
1,200,000 Monsanto Co............................. 42,750,000
*2,500,000 Smurfit-Stone Container Corp............ 61,250,000
--------------
291,192,712
--------------
MANUFACTURING -- 3.1%
800,000 Corning, Inc............................ 103,150,000
1,700,000 Delphi Automotive Systems Corp.......... 26,775,000
*1,633,300 Quintiles Transnational Corp............ 30,522,293
*2,000,000 Terex Corp.............................. 55,500,000
*1,600,000 UCAR International, Inc................. 28,500,000
--------------
244,447,293
--------------
MEDIA & SERVICES -- 9.4%
*1,600,000 America Online, Inc..................... 120,700,000
*2,035,800 American Tower Corp., Class A........... 62,219,137
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-15
<PAGE>
HARTFORD CAPITAL APPRECIATION HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
*1,000,000 AMFM, Inc............................... $ 78,250,000
3,652,000 Dai Nippon Printing Co., Ltd............ 58,157,963
*4,084,300 Rogers Communications, Inc., Class B.... 101,086,425
*1,251,200 SFX Entertainment, Inc., Class A........ 45,277,800
759,500 Sony Corp. ADR.......................... 216,267,625
*1,650,000 TV Guide, Inc........................... 70,950,000
--------------
752,908,950
--------------
REAL ESTATE -- 1.6%
^^2,000,000 Beacon Properties Corp. (REIT).......... 24,000,000
1,000,000 Boston Properties, Inc. (REIT).......... 31,125,000
*2,100,000 Security Capital Group, Inc., 26,250,000
Class B.................................
2,028,100 Starwood Hotels & Resorts 47,660,350
Worldwide, Inc..........................
--------------
129,035,350
--------------
RETAIL -- 3.4%
2,100,000 Limited, Inc. (The)..................... 90,956,250
821,500 Tandy Corp.............................. 40,407,531
*1,500,000 United Rentals (North America),......... 25,687,500
1,600,000 Wal-Mart Stores, Inc.................... 110,600,014
--------------
267,651,295
--------------
SOFTWARE & SERVICES -- 5.2%
*1,476,400 Avant! Corp............................. 22,146,000
*1,300,000 BMC Software, Inc....................... 103,918,750
*1,400,000 Ceridan Corp............................ 30,187,500
*1,000,000 Cognos, Inc............................. 46,125,000
2,417,000 First Data Corp......................... 119,188,312
*1,935,600 Rational Software Corp.................. 95,086,350
--------------
416,651,912
--------------
TRANSPORTATION -- 2.4%
*1,400,000 AMR Corp................................ 93,800,000
1,000,000 Canadian Pacific Ltd.................... 21,562,500
1,091,300 USFreightways Corp...................... 52,245,987
1,549,800 Werner Enterprises, Inc................. 21,794,062
--------------
189,402,549
--------------
UTILITIES -- 5.3%
1,300,000 AT&T Corp............................... 65,975,000
*3,400,000 Calpine Corp............................ 217,600,000
16,453 Intermedia Communications, Inc.......... 638,582
*1,875,000 MCI WorldCom, Inc....................... 99,492,187
4,000,000 Portugal Telecom S.A. ADR............... 43,500,000
--------------
427,205,769
--------------
WASTE MANAGEMENT -- 0.8%
3,500,000 Waste Management, Inc................... 60,156,250
--------------
Total common stocks..................... $7,178,921,157
==============
CONVERTIBLE PREFERRED STOCKS -- 0.5%
CONSUMER SERVICES -- 0.1%
^^91,721 Wyndham International, Inc., Class B
9.75% due 06/30/05.................... $ 8,986,351
UTILITIES -- 0.4%
^^1,200,000 Intermedia Communications, Inc.......... 31,950,000
--------------
Total convertible preferred stocks...... $ 40,936,351
==============
<CAPTION>
PRINCIPAL
AMOUNT
- ------------
<S> <C>
SHORT-TERM SECURITIES -- 7.2%
U.S. TREASURY BILLS -- 1.3%
$ 50,500,000 5.445% due 01/13/00..................... $ 50,408,342
50,500,000 5.45% due 01/13/00...................... 50,408,258
--------------
100,816,600
--------------
REPURCHASE AGREEMENT -- 5.9%
Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $473,946,833
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... 473,845,000
473,845,000
--------------
Total short-term securities............. $ 574,661,600
==============
<CAPTION>
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total common stocks
(cost $5,029,187,174).................. 89.9% $7,178,921,157
Total convertible preferred stocks
(cost $38,992,532)..................... 0.5 40,936,351
Total short-term securities
(cost $574,661,600).................... 7.2 574,661,600
----- -------------
Total investment in securities
(total cost $5,642,841,306)............ 97.6 7,794,519,108
Cash, receivables and other assets...... 3.3 259,552,201
Payable for securities purchased........ (0.9) (67,944,868)
Payable for Fund shares redeemed........ (0.0) (54,923)
Other liabilities....................... (0.0) (75,141)
----- -------------
Net assets.............................. 100.0% $7,985,996,377
===== =============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-16
<PAGE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C>
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.10 per share;
3,000,000,000 shares authorized; 1,310,168,541
shares outstanding............................... $ 131,016,854
Capital surplus................................... 4,436,072,705
Accumulated undistributed net investment income... 4,106,096
Accumulated undistributed net realized gain on
investments...................................... 1,264,089,427
Unrealized appreciation of investments............ 2,151,677,802
Unrealized depreciation of forward foreign
currency contracts (See Note 2)[INF SYM]......... (946,728)
Unrealized depreciation of other assets and
liabilities in foreign currencies................ (19,779)
--------------
Net assets........................................ $7,985,996,377
==============
Class IA
Net asset value per share ($7,963,003,377
DIVIDED BY 1,306,398,126 shares outstanding)
(2,250,000,000 shares authorized)................ $6.10
====
Class IB
Net asset value per share ($22,993,000
DIVIDED BY 3,770,415 shares outstanding)
(750,000,000 shares authorized).................. $6.10
====
</TABLE>
* Non-income producing during period.
^^Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At December 31, 1999, the market
value of these securities amounted to 64,936,351 or 0.8% of net assets.
[INF SYM]FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ ------------ -------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $ 4,852,141 $ 4,836,789 01/04/00 $ 15,352
British Pounds (Buy) 7,110,839 7,136,430 01/05/00 (25,591)
British Pounds (Buy) 4,617,603 4,639,378 01/07/00 (21,775)
British Pounds (Buy) 1,586,093 1,591,752 01/10/00 (5,659)
Japanese Yen (Sell) 90,853,942 89,944,887 03/21/00 (909,055)
---------
$(946,728)
=========
</TABLE>
MF-17
<PAGE>
HARTFORD MORTGAGE SECURITIES HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<S> <C>
ASSET-BACKED SECURITIES -- 1.3%
$ 3,000,000 Chase Manhattan RV Owner Trust,
Series 1997-A, Class A9
6.32% due 12/15/08.................... $ 2,923,020
1,522,523 Corestates Home Equity Trust,
Series 1994-1, Class A
6.65% due 05/15/09.................... 1,514,362
-------------
Total asset-backed securities........... $ 4,437,382
=============
COLLATERALIZED MORTGAGE OBLIGATIONS -- 20.4%
3,450,929 BA Mortgage Securities, Inc.,
Series 1997-1, Class A10
7.10% due 07/25/26.................... $ 3,440,808
2,909,280 BA Mortgage Securities, Inc.,
Series 1997-Z, Class ZA1
7.25% due 10/25/27.................... 2,906,122
2,426,453 Bear Stearns Mortgage Securities, Inc.,
Series 1995-1, Class 1A
6.471% due 05/25/10................... 2,363,898
7,490,913 Citicorp Mortgage Securities, Inc.,
Series 1994-8, Class A6
6.25% due 05/25/24.................... 7,079,098
5,113,105 Citicorp Mortgage Securities, Inc.,
Series 1998-8, Class A3
6.75% due 09/25/28.................... 4,707,584
1,004,038 Countrywide Mortgage Backed
Securities, Inc., Series 1997-2,
Class A13
7.50% due 04/25/27.................... 1,001,951
3,513,613 Countrywide Mortgage Backed
Securities, Inc., Series 1998-6,
Class A
6.50% due 06/25/13.................... 3,394,782
439,742 DLJ Mortgage Acceptance Corp.,
Series 1996-1, Class B1
7.25% due 09/25/11.................... 416,967
146,581 DLJ Mortgage Acceptance Corp.,
Series 1996-2, Class B2
7.25% due 09/25/11.................... 137,590
479,111 Fannie Mae Strip, Series D, Class 2
11.00% due 04/01/09................... 508,681
3,000,000 Fannie Mae, Series 1997-28, Class PD
7.50% due 07/18/23.................... 2,990,512
2,588,384 Fannie Mae, Series 1998-12, Class AM
9.00% due 03/18/28.................... 2,606,987
2,413,000 GE Capital Mortgage Services, Inc.,
Series 1993-10, Class A3
6.50% due 09/25/23.................... 2,321,619
2,538,689 GE Capital Mortgage Services, Inc.,
Series 1994-19, Class A6
7.50% due 06/25/24.................... 2,539,617
3,917,543 GE Capital Mortgage Services, Inc.,
Series 1994-26, Class A
6.943% due 07/25/09................... 3,860,228
515,146 GE Capital Mortgage Services, Inc.,
Series 1996-1, Class B2
6.75% due 02/25/11.................... 481,223
1,552,522 GE Capital Mortgage Services, Inc.,
Series 1996-1, Class M
6.75% due 02/25/11.................... 1,491,352
COLLATERALIZED MORTGAGE OBLIGATIONS -- (CONTINUED)
$ 524,629 GE Capital Mortgage Services, Inc.,
Series 1996-10, Class B1
6.75% due 06/25/11.................... $ 499,824
524,629 GE Capital Mortgage Services, Inc.,
Series 1996-10, Class B2
6.75% due 06/25/11.................... 488,230
3,394,368 GE Capital Mortgage Services, Inc.,
Series 1998-7, Class A
6.50% due 04/25/13.................... 3,280,012
4,330,632 GE Capital Mortgage Services, Inc.,
Series 1999-16, Class A
6.50% due 07/25/14.................... 4,160,697
2,019,825 Housing Securities, Inc., Series 1993-E,
Class EI5
10.00% due 09/25/08................... 2,139,130
4,829,750 Norwest Asset Securities Corp.
Series 1999-22, Class A1
6.50% due 09/25/14.................... 4,638,540
3,126,530 Norwest Asset Securities Corp.,
Series 1999-9, Class A25
8.341% due 04/25/29................... 1,850,514
506,848 PNC Mortgage Securities Corp.,
Series 1996-2, Class B1
6.60% due 02/25/11.................... 484,962
168,950 PNC Mortgage Securities Corp.,
Series 1996-2, Class B2
6.60% due 02/25/11.................... 161,654
270,319 PNC Mortgage Securities Corp.,
Series 1996-2, Class B3
6.60% due 02/25/11.................... 253,437
1,030,127 Prudential Home Mortgage Securities Co.,
Series 96-3, Class B1
6.75% due 03/25/11.................... 960,830
514,651 Prudential Home Mortgage Securities Co.,
Series 96-3, Class B2
6.75% due 03/25/11.................... 480,030
4,200,000 Prudential Home Mortgage Securities,
Series 1994-8, Class A3
6.75% due 03/25/24.................... 4,051,698
627,583 Residential Funding Mortgage Securities
I, Inc., Series 1995-S18, Class M3
7.00% due 11/25/10.................... 591,496
493,315 Residential Funding Mortgage Securities
I, Inc., Series 1996-S5, Class M3
6.75% due 02/25/11.................... 457,959
240,357 Residential Funding Mortgage Securities
I, Inc., Series 1996-S11, Class M3
7.00% due 04/25/11.................... 226,106
452,189 Residential Funding Mortgage Securities
I, Inc., Series 1996-S19, Class M3
7.50% due 09/25/11.................... 433,160
2,165,319 Residential Funding Mortgage Securities
I, Inc., Series 1998-S22, Class A1
6.50% due 09/25/13.................... 2,088,796
-------------
Total collateralized mortgage
obligations............................. $ 69,496,094
=============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-18
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- 77.2%
FEDERAL HOME LOAN MORTGAGE ASSOCIATION
-- 40.7%
$40,463,236 6.50% due 04/01/29 - 08/01/29....... $ 38,174,533
29,755,134 7.00% due 10/01/26 - 12/01/29....... 28,812,874
63,816,576 7.50% due 02/01/10 - 01/01/30....... 63,247,996
2,057,631 8.00% due 02/01/13 - 11/01/24....... 2,077,141
1,440,561 8.50% due 07/01/01 - 05/01/25....... 1,476,934
1,489,736 9.00% due 07/01/01 - 10/01/06....... 1,518,793
1,891,452 9.50% due 11/01/08.................. 1,942,205
1,013,028 10.00% due 09/01/05 - 11/01/20...... 1,080,392
-------------
138,330,868
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION --
26.3%
2,636,802 6.00% due 05/01/13 - 11/01/13....... 2,505,701
180,194 6.50% due 09/01/25.................. 171,280
7,400,000 7.00% due 01/01/15.................. 7,316,750
66,004,331 7.50% due 06/01/29 - 01/01/30....... 65,299,836
10,975,988 8.00% due 04/01/22 - 01/01/30....... 11,063,617
927,415 8.50% due 06/01/24 - 07/01/25....... 950,836
1,830,932 9.00% due 05/01/21 - 09/01/21....... 1,919,711
-------------
89,227,731
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
-- 8.8%
9,557,945 6.50% due 03/15/28 - 11/15/28....... 8,983,125
6,000,000 7.00% due 01/01/30.................. 5,795,628
9,987,389 7.50% due 04/15/22 - 10/15/24....... 9,934,327
1,050,688 8.00% due 02/15/01 - 12/15/06....... 1,069,761
902,774 8.50% due 06/15/17 - 02/15/25....... 931,239
699,254 9.00% due 01/15/25 - 12/15/25....... 732,427
1,885,983 9.50% due 10/15/09 - 11/15/09....... 2,003,508
55,925 10.00% due 05/15/13................. 60,403
253,199 11.00% due 02/15/10 - 09/15/10...... 278,269
5,154 11.25% due 01/15/01................. 5,258
51,246 12.00% due 05/15/15................. 57,202
37,940 12.50% due 03/15/15 - 08/15/15...... 42,647
-------------
29,893,794
-------------
U.S. TREASURY NOTES -- 1.4%
5,000,000 6.125% due 08/15/29................. 4,767,190
-------------
Total U.S. treasuries & federal
agencies................................ $ 262,219,583
=============
SHORT-TERM SECURITIES -- 34.8%
COMMERCIAL PAPER -- 32.3%
10,000,000 American Express Co.
6.30% due 01/18/00.................. $ 9,970,250
10,000,000 Associated Corp. of North America
5.98% due 01/24/00.................. 9,961,794
10,000,000 AT&T Corp.
6.35% due 01/14/00.................. 9,977,069
10,000,000 Bell Atlantic Corp.
6.20% due 01/19/00.................. 9,969,000
10,000,000 Exxon Mobil Corp.
6.30% due 01/14/00.................. 9,977,250
10,000,000 Ford Motor Credit Co.
6.19% due 01/14/00.................... 9,977,647
SHORT-TERM SECURITIES -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
$10,000,000 General Electric Capital Corp.
6.25% due 01/19/00.................... $ 9,968,750
10,000,000 Goldman Sachs Group, Inc.
6.35% due 01/18/00.................... 9,970,013
10,000,000 Merrill Lynch & Co., Inc.
6.35% due 01/19/00.................... 9,968,250
10,000,000 Morgan (J.P.) & Co., Inc.
6.25% due 01/18/00.................... 9,970,486
10,000,000 Salomon Smith Barney Holdings, Inc.
6.40% due 01/20/00.................... 9,966,222
-------------
109,676,731
-------------
REPURCHASE AGREEMENT -- 2.5%
8,518,000 Interest in $208,259,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.80% due 01/03/00;
maturity amount $8,519,988
(Collateralized by $211,642,000 U.S.
Treasury Notes 5.50% - 6.875% due
05/15/01 - 05/15/06).................... 8,518,000
-------------
Total short-term securities............. $ 118,194,731
=============
<CAPTION>
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total asset-backed securities
(cost $4,527,609)...................... 1.3% $ 4,437,382
Total collateralized mortgage
obligations (cost $71,198,149)......... 20.4 69,496,094
Total U.S. treasuries & federal agencies
(cost $265,361,868).................... 77.2 262,219,583
Total short-term securities
(cost $118,194,731).................... 34.8 118,194,731
----- -------------
Total investment in securities
(total cost $459,282,357).............. 133.7 454,347,790
Cash, receivables and other assets...... 0.6 2,042,992
Payable for securities purchased........ (34.3) (116,529,094)
Payable for Fund shares redeemed........ (0.0) (84,874)
----- -------------
Net assets.............................. 100.0% $ 339,776,814
===== =============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.10 per share;
800,000,000 shares authorized; 326,868,095 shares
outstanding...................................... $ 32,686,809
Capital surplus................................... 323,540,528
Accumulated undistributed net investment income... 2,173,942
Accumulated net realized loss on investments...... (13,689,898)
Unrealized depreciation of investments............ (4,934,567)
------------
Net assets........................................ $339,776,814
============
Class IA
Net asset value per share ($339,767,427
DIVIDED BY 326,859,065 shares outstanding)
(600,000,000 shares authorized).................. $1.04
=====
Class IB
Net asset value per share ($9,387 DIVIDED BY
9,030 shares outstanding) (200,000,000 shares
authorized)...................................... $1.04
-====
</TABLE>
MF-19
<PAGE>
HARTFORD INDEX HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- 99.4%
AEROSPACE & DEFENSE -- 1.3%
194,827 Boeing Co. (The)........................ $ 8,097,497
41,649 General Dynamics Corp................... 2,196,984
164,696 Honeywell International, Inc............ 9,500,900
82,387 Lockheed Martin Corp.................... 1,802,215
14,426 Northrop Grumman Corp................... 779,905
70,223 Raytheon Co., Class B................... 1,865,298
31,489 Textron, Inc............................ 2,414,812
99,769 United Technologies Corp................ 6,484,985
--------------
33,142,596
--------------
BUSINESS SERVICES -- 0.5%
*147,892 Cendant Corp............................ 3,928,381
15,347 Deluxe Corp............................. 421,083
26,616 Donnelly (R.R.) & Sons Co............... 660,409
15,847 Fluor Corp.............................. 726,981
8,533 Foster Wheeler Corp..................... 75,730
19,504 Grainger (W.W.), Inc.................... 932,535
31,086 IKON Office Solutions, Inc.............. 211,773
64,119 IMS Health, Inc......................... 1,743,235
8,532 National Service Industries, Inc........ 251,694
68,678 SYSCO Corp.............................. 2,717,073
--------------
11,668,894
--------------
COMMUNICATIONS EQUIPMENT -- 7.8%
*71,965 3Com Corp............................... 3,382,355
*31,087 ADC Telecommunications, Inc............. 2,255,750
*17,217 Andrew Corp............................. 326,046
*37,567 Cabletron Systems, Inc.................. 976,742
*681,441 Cisco Systems, Inc...................... 72,999,367
36,065 General Instrument Corp................. 3,065,525
*159,283 Global Crossing Ltd..................... 7,964,150
652,301 Lucent Technologies, Inc................ 48,800,249
126,678 Motorola, Inc........................... 18,653,335
*30,680 Network Appliance, Inc.................. 2,548,357
278,204 Nortel Networks Corp.................... 28,098,604
15,949 Scientific-Atlanta, Inc................. 887,163
*90,033 Sprint Corp. (PCS Group)................ 9,228,382
84,076 Tellabs, Inc............................ 5,396,628
--------------
204,582,653
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 6.8%
*21,237 Adaptec, Inc............................ 1,059,195
*33,524 Apple Computer, Inc..................... 3,446,686
354,035 Compaq Computer Corp.................... 9,581,072
*529,178 Dell Computer Corp...................... 26,988,078
*215,351 EMC Corp................................ 23,527,096
*65,920 Gateway, Inc............................ 4,750,360
212,100 Hewlett-Packard Co...................... 24,166,143
375,594 International Business Machines Corp.... 40,564,152
26,920 Lexmark International Group, Inc........ 2,436,260
55,372 Pitney Bowes, Inc....................... 2,675,159
46,479 Seagate Technology, Inc................. 2,164,178
*325,842 Sun Microsystems, Inc................... 25,232,389
*64,597 UNISYS Corp............................. 2,063,066
138,260 Xerox Corp.............................. 3,136,773
66,630 Xilinx, Inc............................. 3,029,582
--------------
174,820,189
--------------
CONSUMER DURABLES -- 1.1%
15,847 Cooper Tire & Rubber Co................. $ 246,618
251,741 Ford Motor Co........................... 13,452,409
133,399 General Motors Corp..................... 9,696,439
37,433 Genuine Parts Co........................ 928,806
32,609 Goodyear Tire & Rubber Co. (The)........ 919,166
18,386 ITT Industries, Inc..................... 614,781
58,905 Newell Rubbermaid, Inc.................. 1,708,245
25,195 TRW, Inc................................ 1,308,565
--------------
28,875,029
--------------
CONSUMER NON-DURABLES -- 2.8%
11,782 Alberto-Culver Co., Class B............. 304,122
50,550 Avon Products, Inc...................... 1,668,150
18,184 Black & Decker Corp..................... 950,114
4,776 Briggs & Stratton Corp.................. 256,113
12,394 Centex Corp............................. 305,976
49,370 Clorox Co. (The)........................ 2,487,033
121,699 Colgate-Palmolive Co.................... 7,910,435
6,909 Fleetwood Enterprises, Inc.............. 142,498
223,535 Gillette Co. (The)...................... 9,206,847
22,146 International Flavors & Fragrances, 836,011
Inc.....................................
113,536 Kimberly-Clark Corp..................... 7,408,224
41,641 Leggett & Platt, Inc.................... 892,678
12,300 Liz Claiborne, Inc...................... 462,787
93,043 Masco Corp.............................. 2,360,966
17,484 Maytag Corp............................. 839,232
67,862 Nabisco Group Holdings Corp............. 721,033
58,316 NIKE, Inc., Class B..................... 2,890,286
273,828 Procter & Gamble Co. (The).............. 30,001,280
*11,683 Reebok International Ltd................ 95,654
7,109 Russell Corp............................ 119,075
12,214 Snap-On, Inc............................ 324,434
3,858 Springs Industries, Inc................. 154,078
18,590 Stanley Works (The)..................... 560,023
12,088 Tupperware Corp......................... 204,740
24,787 V. F. Corp.............................. 743,610
15,746 Whirlpool Corp.......................... 1,024,474
--------------
72,869,873
--------------
CONSUMER SERVICES -- 0.6%
19,200 Brunswick Corp.......................... 427,200
128,698 Carnival Corp........................... 6,153,373
65,531 Eastman Kodak Co........................ 4,341,428
20,318 H&R Block, Inc.......................... 888,912
*26,718 Harrah's Entertainment, Inc............. 706,357
40,809 Hasbro, Inc............................. 777,921
76,902 Hilton Hotels Corp...................... 740,181
*40,348 Mirage Resorts, Inc..................... 617,828
--------------
14,653,200
--------------
ELECTRONICS -- 8.6%
*30,680 Advanced Micro Devices, Inc............. 887,802
*37,063 Analog Devices, Inc..................... 3,446,859
78,323 Applied Materials, Inc.................. 9,922,545
90,716 Emerson Electric Co..................... 5,204,830
683,286 General Electric Co..................... 105,738,508
695,877 Intel Corp.............................. 57,279,375
17,778 Johnson Controls, Inc................... 1,011,123
*18,387 KLA-Tencor Corp......................... 2,047,852
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
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COMMON STOCKS -- (CONTINUED)
ELECTRONICS -- (CONTINUED)
*30,780 LSI Logic Corp.......................... $ 2,077,650
*56,216 Micron Technology, Inc.................. 4,370,794
32,505 Molex, Inc.............................. 1,842,627
*35,847 National Semiconductor Corp............. 1,534,699
9,449 PerkinElmer, Inc........................ 393,905
38,215 Silicon Graphics, Inc................... 374,984
*60,854 Solectron Corp.......................... 5,788,736
9,753 Tektronix, Inc.......................... 379,147
*35,458 Teradyne, Inc........................... 2,340,228
166,860 Texas Instruments, Inc.................. 16,164,562
11,885 Thomas & Betts Corp..................... 378,834
--------------
221,185,060
--------------
ENERGY & SERVICES -- 5.6%
18,895 Amerada Hess Corp....................... 1,072,291
26,615 Anadarko Petroleum Corp................. 908,236
23,771 Apache Corp............................. 878,041
15,035 Ashland, Inc............................ 495,215
67,350 Atlantic Richfield Co................... 5,825,775
68,481 Baker Hughes, Inc....................... 1,442,381
45,029 Burlington Resources, Inc............... 1,488,771
137,037 Chevron Corp............................ 11,870,830
23,985 CMS Energy Corp......................... 748,032
44,595 Coastal Corp. (The)..................... 1,580,335
130,843 Conoco, Inc., Class B................... 3,254,719
20,013 Consolidated Natural Gas Co............. 1,299,594
719,621 Exxon Mobil Corp........................ 57,974,466
92,137 Halliburton Co.......................... 3,708,514
18,013 Kerr-McGee Corp......................... 1,116,806
12,393 McDermott International, Inc............ 112,311
76,336 Occidental Petroleum Corp............... 1,650,766
52,825 Phillips Petroleum Co................... 2,482,775
*17,371 Rowan Companies, Inc.................... 376,733
446,486 Royal Dutch Petroleum Co................ 26,984,497
114,383 Schlumberger Ltd........................ 6,434,043
50,236 Sempra Energy........................... 872,850
18,895 Sunoco, Inc............................. 444,032
115,301 Texaco, Inc............................. 6,262,285
30,096 Tosco Corp.............................. 818,235
43,545 Transocean Sedco Forex, Inc............. 1,466,906
52,721 Union Pacific Resources Group,.......... 672,192
50,590 Unocal Corp............................. 1,697,926
64,506 USX-Marathon Group...................... 1,592,491
--------------
145,532,048
--------------
FINANCIAL SERVICES -- 13.1%
31,488 Aetna, Inc.............................. 1,757,424
56,766 AFLAC, Inc.............................. 2,678,645
171,601 Allstate Corp. (The).................... 4,118,424
93,264 American Express Co..................... 15,505,140
54,914 American General Corp................... 4,166,599
329,866 American International Group, Inc....... 35,666,761
81,882 AmSouth Bancorporation.................. 1,581,346
54,810 Aon Corp................................ 2,192,400
151,898 Associates First Capital Corp., 4,167,701
Class A.................................
355,570 Bank of America Corp.................... 17,845,169
153,395 Bank of New York Co., Inc. (The)........ 6,135,800
238,977 Bank One Corp........................... 7,662,200
FINANCIAL SERVICES -- (CONTINUED)
68,841 BB&T Corp............................... $ 1,884,522
25,040 Bear Stearns Cos., Inc. (The)........... 1,070,460
41,243 Capital One Financial Corp.............. 1,987,397
170,714 Charles Schwab Corp. (The).............. 6,551,149
171,812 Chase Manhattan Corp. (The)............. 13,347,644
36,774 Chubb Corp. (The)....................... 2,070,835
44,306 CIGNA Corp.............................. 3,569,402
35,338 Cincinnati Financial Corp............... 1,102,103
702,309 Citigroup, Inc.......................... 39,022,043
32,659 Comerica, Inc........................... 1,524,767
72,827 Conseco, Inc............................ 1,301,782
23,568 Countrywide Credit Industries, Inc...... 595,092
29,468 Equifax, Inc............................ 694,339
213,439 Fannie Mae.............................. 13,326,597
64,459 Fifth Third Bancorp..................... 4,729,679
205,747 First Union Corp........................ 6,751,073
204,265 Firstar Corp............................ 4,315,098
190,669 Fleet Boston Financial Corp............. 6,637,658
52,721 Franklin Resources, Inc................. 1,690,367
145,065 Freddie Mac............................. 6,827,121
34,038 Golden West Financial Corp.............. 1,140,273
97,958 Household International, Inc............ 3,648,935
48,306 Huntington Bancshares, Inc.............. 1,153,305
23,643 Jefferson-Pilot Corp.................... 1,613,634
93,162 KeyCorp................................. 2,061,209
24,790 Lehman Brothers Holdings, Inc........... 2,099,403
43,548 Lincoln National Corp................... 1,741,920
22,950 Loews Corp.............................. 1,392,778
56,810 Marsh & McLennan Cos., Inc.............. 5,436,006
21,326 MBIA, Inc............................... 1,126,279
167,287 MBNA Corp............................... 4,558,570
105,775 Mellon Financial Corp................... 3,602,960
76,904 Merrill Lynch & Co., Inc................ 6,421,484
22,656 MGIC Investment Corp.................... 1,363,608
35,972 Morgan (J.P.) & Co., Inc................ 4,554,954
116,034 Morgan Stanley Dean Witter & Co......... 16,563,853
128,514 National City Corp...................... 3,044,175
46,726 Northern Trust Corp..................... 2,476,478
24,287 Old Kent Financial Corp................. 859,152
29,874 Paine Webber Group, Inc................. 1,159,484
17,876 Pinnacle West Capital Corp.............. 546,335
61,390 PNC Bank Corp........................... 2,731,855
15,638 Progressive Corp. (The)................. 1,143,528
29,712 Providian Financial Corp................ 2,705,649
45,829 Regions Financial Corp.................. 1,151,453
28,128 SAFECO Corp............................. 699,684
33,124 SLM Holding Corp........................ 1,399,489
34,946 SouthTrust Corp......................... 1,321,395
48,418 St. Paul Cos., Inc. (The)............... 1,631,081
33,625 State Street Corp....................... 2,456,726
36,477 Summit Bancorp.......................... 1,117,108
66,748 SunTrust Banks, Inc..................... 4,593,096
58,134 Synovus Financial Corp.................. 1,155,413
25,195 T. Rowe Price Associates, Inc........... 930,640
27,933 Torchmark Corp.......................... 811,802
151,502 U.S. Bancorp............................ 3,607,641
29,266 Union Planters Corp..................... 1,154,177
50,899 UNUMProvident Corp...................... 1,631,949
</TABLE>
MF-21
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HARTFORD INDEX HLS FUND, INC.
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STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
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COMMON STOCKS -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
42,159 Wachovia Corp........................... $ 2,866,812
120,143 Washington Mutual, Inc.................. 3,123,718
342,273 Wells Fargo & Co........................ 13,840,664
--------------
339,115,412
--------------
FOOD, BEVERAGE & TOBACCO -- 4.2%
7,720 Adolph Coors Co., Class B............... 405,300
97,023 Anheuser-Busch Companies, Inc........... 6,876,505
58,409 Bestfoods............................... 3,070,123
14,323 Brown-Forman Corp., Class B............. 819,991
89,114 Campbell Soup Co........................ 3,447,597
514,244 Coca-Cola Co. (The)..................... 29,954,713
88,684 Coca-Cola Enterprises, Inc.............. 1,784,765
102,790 ConAgra, Inc............................ 2,319,199
34,442 Fortune Brands, Inc..................... 1,138,738
63,296 General Mills, Inc...................... 2,262,832
74,768 Heinz (H.J.) Co......................... 2,976,701
29,255 Hershey Foods Corp...................... 1,389,612
84,720 Kellogg Co.............................. 2,610,435
52,110 Marriott International, Inc............. 1,644,721
303,264 PepsiCo, Inc............................ 10,690,056
492,986 Philip Morris Co., Inc.................. 11,431,112
27,936 Quaker Oats Co. (The)................... 1,833,300
67,454 Ralston Purina Co....................... 1,880,280
*105,962 Safeway, Inc............................ 3,768,273
189,243 Sara Lee Corp........................... 4,175,173
90,209 Seagram (J) & Sons, Inc................. 4,053,766
29,052 SuperValu, Inc.......................... 581,040
119,454 Unilever N.V............................ 6,502,777
35,667 UST, Inc................................ 898,362
24,279 Wrigley, (Wm.) Jr. Co................... 2,013,639
--------------
108,529,010
--------------
HEALTH CARE -- 9.2%
320,156 Abbott Laboratories..................... 11,625,664
27,830 Allergan, Inc........................... 1,384,542
*21,031 ALZA Corp............................... 728,198
271,957 American Home Products Corp............. 10,725,304
*212,923 Amgen, Inc.............................. 12,788,687
10,767 Bard (C.R.), Inc........................ 570,651
11,887 Bausch & Lomb, Inc...................... 813,516
60,948 Baxter International, Inc............... 3,828,296
52,215 Becton, Dickinson & Co.................. 1,396,751
23,466 Biomet, Inc............................. 938,640
*86,347 Boston Scientific Corp.................. 1,888,840
413,270 Bristol-Myers Squibb Co................. 26,526,768
58,639 Cardinal Health, Inc.................... 2,807,342
117,738 Columbia/HCA Healthcare Corp............ 3,451,195
227,360 Eli Lilly & Co.......................... 15,119,440
63,884 Guidant Corp............................ 3,002,548
*80,552 HealthSouth Corp........................ 432,967
*35,046 Humana, Inc............................. 286,939
289,580 Johnson & Johnson Co.................... 26,967,137
14,831 Mallinckrodt, Inc....................... 471,811
*21,349 Manor Care, Inc......................... 341,584
58,725 McKesson HBOC, Inc...................... 1,324,982
248,723 Medtronic, Inc.......................... 9,062,844
*486,741 Merck & Co., Inc........................ 32,642,068
HEALTH CARE -- (CONTINUED)
9,247 Millipore Corp.......................... $ 357,165
26,004 Pall Corp............................... 560,711
21,332 PE Corp - PE Biosystems Group........... 2,566,506
806,224 Pfizer, Inc............................. 26,151,891
108,151 Pharmacia & Upjohn, Inc................. 4,866,795
305,883 Schering-Plough Corp.................... 12,904,439
56,886 Service Corp. International............. 394,646
5,587 Shared Medical Systems Corp............. 284,587
*17,576 St. Jude Medical, Inc................... 539,363
*64,912 Tenet Healthcare Corp................... 1,525,432
35,165 United HealthCare Corp.................. 1,868,140
178,884 Warner-Lambert Co....................... 14,657,307
*20,012 Watson Pharmaceuticals, Inc............. 716,679
*13,214 Wellpoint Health Networks, Inc.......... 871,298
--------------
237,391,673
--------------
INDUSTRIAL MATERIALS -- 3.4%
47,947 Air Products & Chemicals, Inc........... 1,609,221
45,736 Alcan Aluminum Ltd...................... 1,883,751
76,495 Alcoa, Inc.............................. 6,349,085
19,360 Allegheny Technologies, Inc............. 434,390
127,149 Archer-Daniels-Midland Co............... 1,549,628
8,331 Armstrong World Industries, Inc......... 278,047
82,170 Barrick Gold Corp....................... 1,453,381
10,970 Bemis Co., Inc.......................... 382,578
*27,326 Bethlehem Steel Corp.................... 228,855
11,786 Boise Cascade Corp...................... 477,333
20,013 Champion International Corp............. 1,239,555
25,599 Crown Cork & Seal Co., Inc.............. 572,777
45,917 Dow Chemical Co. (The).................. 6,135,659
231,317 du Pont (E.I.) de Nemours & Co.......... 15,237,993
16,355 Eastman Chemical Co..................... 779,929
27,122 Ecolab, Inc............................. 1,061,148
26,210 Engelhard Corp.......................... 494,713
*6,604 FMC Corp................................ 378,491
45,120 Fort James Corp......................... 1,235,160
*34,133 Freeport-McMoRan Copper & Gold, Inc. 721,059
Class B................................
35,859 Georgia-Pacific Corp.................... 1,819,844
22,958 Goodrich (B.F.) Co. (The)............... 631,345
*14,832 Grace (W.R.) & Co....................... 205,794
12,191 Great Lakes Chemical Corp............... 465,543
22,146 Hercules, Inc........................... 617,319
54,348 Homestake Mining Co..................... 424,593
40,125 Inco Ltd................................ 942,937
86,303 International Paper Co.................. 4,870,732
22,450 Louisiana-Pacific Corp.................. 319,912
21,233 Mead Corp. (The)........................ 922,308
132,264 Monsanto Co............................. 4,711,905
35,039 Newmont Mining Corp..................... 858,455
18,284 Nucor Corp.............................. 1,002,191
11,479 Owens Corning........................... 221,688
*31,408 Owens-Illinois, Inc..................... 787,163
19,164 Phelps Dodge Corp....................... 1,286,383
68,061 Placer Dome, Inc........................ 731,655
9,245 Polaroid Corp........................... 173,921
6,094 Potlatch Corp........................... 271,944
36,266 PPG Industries, Inc..................... 2,268,891
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-22
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COMMON STOCKS -- (CONTINUED)
INDUSTRIAL MATERIALS -- (CONTINUED)
33,219 Praxair, Inc............................ $ 1,671,330
13,105 Reynolds Metals Co...................... 1,004,170
39,823 Rockwell International Corp............. 1,906,526
45,497 Rohm & Haas Co.......................... 1,851,159
*17,496 Sealed Air Corp......................... 906,511
34,851 Sherman-Williams Co. (The).............. 731,871
21,029 Sigma-Aldrich Corp...................... 632,184
11,682 Temple-Inland, Inc...................... 770,281
27,734 Union Carbide Corp...................... 1,851,244
18,488 USX Corp................................ 610,104
21,126 Vulcan Materials Co..................... 843,719
20,926 Westvaco Corp........................... 682,710
49,068 Weyerhaeuser Co......................... 3,523,695
23,263 Willamette Industries, Inc.............. 1,080,275
90,414 Williams Cos., Inc. (The)............... 2,763,277
18,499 Worthington Industries, Inc............. 306,389
--------------
87,172,721
--------------
MANUFACTURING -- 2.2%
23,770 Avery Dennison Corp..................... 1,732,238
6,399 Ball Corp............................... 251,960
74,358 Caterpillar, Inc........................ 3,499,473
19,708 Cooper Industries, Inc.................. 796,942
50,997 Corning, Inc............................ 6,575,425
14,220 Crane Co................................ 282,622
8,837 Cummins Engine Co., Inc................. 426,937
34,676 Dana Corp............................... 1,038,112
29,763 Danaher Corp............................ 1,436,064
48,761 Deere & Co.............................. 2,115,008
118,078 Delphi Automotive Systems Corp.......... 1,859,728
42,479 Dover Corp.............................. 1,927,484
15,035 Eaton Corp.............................. 1,091,916
63,143 Illinois Tool Works, Inc................ 4,266,085
34,188 Ingersoll-Rand Co....................... 1,882,476
10,056 Kaufman and Broad Home Corp............. 243,229
87,669 Mattel, Inc............................. 1,150,655
7,821 Milacron, Inc........................... 120,247
83,712 Minnesota Mining & Manufacturing Co..... 8,193,312
1,727 NACCO Industries, Inc................... 95,956
*13,316 Navistar International Corp............. 630,845
16,355 PACCAR, Inc............................. 724,730
*35,555 Pactiv Corp............................. 377,771
23,404 Parker-Hannifin Corp.................... 1,200,917
*23,974 Quintiles Transnational Corp............ 448,014
*33,014 Thermo Electron Corp.................... 495,210
12,902 Timken Co. (The)........................ 263,684
351,971 Tyco International Ltd.................. 13,682,872
--------------
56,809,912
--------------
MEDIA & SERVICES -- 5.2%
*465,420 America Online, Inc..................... 35,110,121
*159,110 CBS Corp................................ 10,173,095
*70,500 Clear Channel Communications,........... 6,292,125
*156,342 Comcast Corp., Class A.................. 7,856,185
18,896 Dow Jones & Co., Inc.................... 1,284,928
33,625 Dun & Bradstreet Corp. (The)............ 991,937
57,911 Gannett Co., Inc........................ 4,723,365
MEDIA & SERVICES -- (CONTINUED)
14,832 Harcourt General, Inc................... $ 596,988
58,219 Interpublic Group of Cos., Inc. (The)... 3,358,508
17,364 Knight-Ridder, Inc...................... 1,033,158
41,041 McGraw-Hill Cos., Inc. (The)............ 2,529,151
*127,576 MediaOne Group, Inc..................... 9,799,431
10,869 Meredith Corp........................... 453,101
35,867 New York Times Co. (The)................ 1,761,966
37,078 Omnicom Group, Inc...................... 3,707,800
268,014 Time Warner, Inc........................ 19,414,264
12,495 Times Mirror Co. (The), Class A......... 837,362
49,572 Tribune Co.............................. 2,729,558
*145,370 Viacom, Inc., Class B................... 8,785,799
429,819 Walt Disney Co. (The)................... 12,572,205
--------------
134,011,047
--------------
REAL ESTATE -- 0.0%
9,041 Pulte Corp.............................. 203,422
--------------
RETAIL -- 7.0%
88,345 Albertson's, Inc........................ 2,849,126
13,420 American Greetings Corp................. 317,047
*30,285 AutoZone, Inc........................... 978,584
*28,755 Bed Bath & Beyond, Inc.................. 999,236
*42,764 Best Buy Co., Inc....................... 2,146,218
42,455 Circuit City Stores Group............... 1,913,128
*22,859 Consolidated Stores Corp................ 371,458
*45,919 Costco Wholesale Corp................... 4,190,108
81,676 CVS Corp................................ 3,261,935
27,530 Darden Restaurants, Inc................. 498,981
91,740 Dayton-Hudson Corp...................... 6,737,156
22,348 Dillard's, Inc.......................... 451,150
55,392 Dollar General Corp..................... 1,260,168
*43,579 Federated Department Stores, Inc........ 2,203,463
178,406 Gap, Inc. (The)......................... 8,206,676
8,025 Great Atlantic & Pacific Tea Co., Inc. 223,696
(The)...................................
479,447 Home Depot, Inc. (The).................. 32,872,050
7,211 Jostens, Inc............................ 175,317
*103,008 Kmart Corp.............................. 1,036,518
*34,030 Kohl's Corp............................. 2,456,540
*173,102 Kroger Co. (The)........................ 3,267,300
44,597 Limited, Inc. (The)..................... 1,931,607
8,228 Longs Drug Store Corp................... 212,385
79,643 Lowe's Cos., Inc........................ 4,758,669
69,839 May Department Stores Co................ 2,252,307
282,013 McDonald's Corp......................... 11,368,649
28,757 Nordstrom, Inc.......................... 753,073
*68,721 Office Depot, Inc....................... 751,635
54,359 Penney (J.C.) Co., Inc.................. 1,083,782
10,971 Pep Boys - Manny, Moe & Jack............ 100,110
54,143 Rite Aid Corp........................... 605,724
78,639 Sears Roebuck & Co...................... 2,393,574
97,114 Staples, Inc............................ 2,015,115
40,430 Tandy Corp.............................. 1,988,650
64,635 TJX Cos., Inc. (The).................... 1,320,977
*51,407 Toys R Us, Inc.......................... 735,762
*32,130 Tricon Global Restaurants, Inc.......... 1,241,021
926,897 Wal-Mart Stores, Inc.................... 64,071,755
208,869 Walgreen Co............................. 6,109,418
</TABLE>
MF-23
<PAGE>
HARTFORD INDEX HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
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COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
24,796 Wendy's International, Inc.............. $ 511,417
31,084 Winn-Dixie Stores, Inc.................. 744,073
--------------
181,365,558
--------------
SOFTWARE & SERVICES -- 10.0%
25,098 Adobe Systems, Inc...................... 1,687,840
12,792 Autodesk, Inc........................... 431,730
130,516 Automatic Data Processing, Inc.......... 7,031,549
*50,679 BMC Software, Inc....................... 4,051,152
*30,172 Ceridan Corp............................ 650,583
*18,986 Citrix Systems, Inc..................... 2,335,278
112,101 Computer Associates International, 7,840,063
Inc.....................................
*34,721 Computer Sciences Corp.................. 3,285,474
*74,563 Compuware Corp.......................... 2,777,471
*14,628 Comverse Technology, Inc................ 2,117,403
98,006 Electronic Data Systems Corp............ 6,560,276
87,298 First Data Corp......................... 4,304,882
*1,074,527 Microsoft Corp.......................... 125,451,027
*69,391 Novell, Inc............................. 2,771,303
*296,514 Oracle Corp............................. 33,228,100
*56,177 Parametric Technology Corp.............. 1,520,290
51,401 Paychex, Inc............................ 2,056,040
*55,492 PeopleSoft, Inc......................... 1,182,673
*136,892 QUALCOMM, Inc........................... 24,127,215
*54,558 Yahoo!, Inc............................. 23,606,564
--------------
257,016,913
--------------
TRANSPORTATION -- 0.7%
*30,890 AMR Corp................................ 2,069,630
95,315 Burlington Northern Santa Fe Corp....... 2,311,388
45,409 CSX Corp................................ 1,424,707
27,657 Delta Air Lines, Inc.................... 1,377,664
*62,189 FDX Corp................................ 2,545,862
23,060 Kansas City Southern Industries,........ 1,720,852
79,440 Norfolk Southern Corp................... 1,628,520
14,509 Ryder System, Inc....................... 354,563
105,242 Southwest Airlines Co................... 1,703,604
51,807 Union Pacific Corp...................... 2,260,080
*14,933 US Airways Group, Inc................... 478,789
--------------
17,875,659
--------------
UTILITIES -- 9.2%
*42,771 AES Corp. (The)......................... 3,197,132
65,494 ALLTEL Corp............................. 5,415,535
28,647 Ameren Corp............................. 938,189
40,330 American Electric Power Co., Inc........ 1,295,601
665,635 AT&T Corp............................... 33,780,976
323,520 Bell Atlantic Corp...................... 19,916,700
391,942 BellSouth Corp.......................... 18,347,784
33,320 Carolina Power & Light Co............... 1,014,177
44,493 Central & South West Corp............... 889,860
29,104 CenturyTel, Inc......................... 1,378,802
33,218 CINergy Corp............................ 801,384
17,267 Columbia Energy Group................... 1,092,137
46,120 Consolidated Edison, Inc................ 1,591,140
31,287 Constellation Energy Group, Inc......... 907,323
40,125 Dominion Resources, Inc................. 1,574,906
30,273 DTE Energy Co........................... 949,815
76,141 Duke Energy Corp........................ 3,816,567
UTILITIES -- (CONTINUED)
5,587 Eastern Enterprises..................... $ 320,903
72,531 Edison International.................... 1,899,405
47,742 El Paso Energy Corp..................... 1,852,986
148,925 Enron Corp.............................. 6,608,546
51,604 Entergy Corp............................ 1,328,803
49,062 FirstEnergy Corp........................ 1,113,094
20,420 Florida Progress Corp................... 864,021
37,384 FPL Group, Inc.......................... 1,600,502
25,809 GPU, Inc................................ 772,656
202,296 GTE Corp................................ 14,274,511
591,452 MCI WorldCom, Inc....................... 31,383,895
24,075 New Century Energies, Inc............... 731,278
75,178 Nextel Communications, Inc.............. 7,752,731
39,210 Niagara Mohawk Holdings, Inc............ 546,489
9,854 NICOR, Inc.............................. 320,255
32,102 Northern States Power Co................ 625,989
6,603 ONEOK, Inc.............................. 165,900
38,908 Peco Energy Co.......................... 1,352,053
7,416 Peoples Energy Corp..................... 248,436
80,151 PG&E Corp............................... 1,643,095
30,114 PP&L Resources, Inc..................... 688,857
45,914 Public Service Enterprise Group,........ 1,598,381
61,956 Reliant Energy, Inc..................... 1,417,243
710,495 SBC Communications, Inc................. 34,636,621
140,126 Southern Co............................. 3,292,961
181,326 Sprint Corp. (FON Group)................ 12,205,506
57,715 Texas Utilities Co...................... 2,052,489
45,408 Unicom Corp............................. 1,521,168
105,287 US West, Inc............................ 7,580,664
--------------
237,307,466
--------------
WASTE MANAGEMENT -- 0.1%
39,214 Allied Waste Industries, Inc............ 345,573
129,199 Waste Management, Inc................... 2,220,607
--------------
2,566,180
--------------
Total common stocks..................... $2,566,694,515
==============
<CAPTION>
PRINCIPAL
AMOUNT
- ------------
<S> <C>
SHORT-TERM SECURITIES -- 0.4%
U.S. TREASURY BILLS -- 0.0%
$ 150,000 5.06% due 03/23/00................... $ 148,271
100,000 5.22% due 01/13/00................... 99,826
300,000 5.28% due 01/13/00................... 299,472
100,000 5.30% due 03/23/00................... 98,792
--------------
646,361
--------------
REPURCHASE AGREEMENT -- 0.4%
10,517,000 Interest in $208,259,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.80% due 01/03/00;
maturity amount $10,519,454
(Collateralized by $211,642,000 U.S.
Treasury Notes 5.50% - 6.875% due
05/15/01 - 05/15/06).................... 10,517,000
--------------
Total short-term securities............. $ 11,163,361
==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-24
<PAGE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $1,582,126,812).................. 99.4% $2,566,694,515
Total short-term securities
(cost $11,163,361)..................... 0.4 11,163,361
----- --------------
Total investment in securities
(total cost $1,593,290,173)............ 99.8 2,577,857,876
Cash, receivables and other assets...... 0.2 4,437,867
Payable for securities purchased........ (0.0) (809,299)
Payable for Fund shares redeemed........ (0.0) (21,665)
Other liabilities....................... (0.0) (18,118)
----- --------------
Net assets.............................. 100.0% $2,581,446,661
===== ==============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.10 per share;
2,000,000,000 shares authorized; 616,276,488
shares outstanding............................... $ 61,627,649
Capital surplus................................... 1,511,795,954
Accumulated undistributed net investment income... 279,337
Accumulated undistributed net realized gain on
investments...................................... 22,943,669
Unrealized appreciation of investments............ 984,567,703
Unrealized appreciation of futures contracts ++... 232,349
--------------
Net assets........................................ $2,581,446,661
==============
Class IA
Net asset value per share ($2,581,435,980
DIVIDED BY 616,273,938 shares outstanding)
(1,500,000,000 shares authorized)................ $4.19
=====
Class IB
Net asset value per share ($10,681 DIVIDED BY
2,550 shares outstanding) (500,000,000 shares
authorized)...................................... $4.19
=====
</TABLE>
* Non-income producing during period.
++ The Fund had 39 March 2000 Standard & Poor's 500 Futures contracts open as
of December 31, 1999. These contracts had a value of $14,470,950 as of
December 31, 1999 and were collateralized by various U.S. Treasury
obligations with a market value of $646,362.
MF-25
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- 96.3%
AUSTRALIA -- 1.1%
613,101 Broken Hill Proprietary Co., Ltd.
(Industrial Materials).................. $ 8,023,907
*3,849,074 M.I.M. Holdings Ltd.
(Industrial Materials).................. 3,954,195
5,403,734 Pasminco Ltd. (Industrial Materials).... 5,904,900
--------------
17,883,002
--------------
BRAZIL -- 2.0%
244,500 Embratel Participacoes S.A.
(Utilities)............................. 6,662,625
28,104,000 Petroleo Brasileiro S.A.
(Energy & Services)..................... 7,208,122
131,700 Telecomunicacoes Brasileiras S.A.
(Utilities)............................. 16,923,450
--------------
30,794,197
--------------
CANADA -- 1.0%
382,000 Alcan Aluminum Ltd. (Industrial
Materials).............................. 15,634,540
--------------
CHINA -- 1.0%
*1,486,100 China Telecom (Hong Kong) Ltd. (Media &
Services)............................... 9,291,075
*49,700 China Telecom (Hong Kong) Ltd. (Media &
Services)............................... 6,389,556
--------------
15,680,631
--------------
DENMARK -- 0.1%
28,910 Tele Danmark AS (Utilities)............. 2,137,779
--------------
FINLAND -- 3.5%
245,422 Oy Nokia (Communications Equipment)..... 44,277,663
291,934 UPM-Kymmene Group (Energy &
Services)............................... 11,704,229
--------------
55,981,892
--------------
FRANCE -- 12.6%
85,400 Air Liquids S.A. (Industrial
Materials).............................. 14,226,139
*289,167 Aventis S.A. (Health Care).............. 16,578,428
169,100 AXA (Financial Services)................ 23,457,291
137,671 Banque National de Paris (BNP)
(Financial Services).................... 12,639,680
70,400 Carrefour S.A. (Retail)................. 12,921,586
70,700 Compagnie de Saint-Gobain S.A.
(Industrial Materials).................. 13,230,062
200,300 Compagnie Generale des Etablissements
Michelin, Class B (Consumer
Durables)............................... 7,829,674
78,400 France Telecom S.A. (Utilities)......... 10,317,606
19,500 L'Oreal (Consumer Non-Durables)......... 15,567,488
41,900 Pinault-Printemps-Redoute S.A.
(Retail)................................ 11,003,059
113,600 Societe Generale S.A. (Financial
Services)............................... 26,301,981
44,530 Suez Lyonnaise des Eaux S.A.
(Utilities)............................. 7,101,024
208,630 Total Fina S.A., B Shares (Energy &
Services)............................... 27,707,082
--------------
198,881,100
--------------
GERMANY -- 9.0%
154,500 BASF AG (Industrial Materials).......... $ 8,037,000
32,500 Bayerische Vereinsbank AG (Financial
Services)............................... 2,208,570
137,500 Deutsche Bank AG (Financial Services)... 11,611,030
146,800 Deutsche Telekom AG (Utilities)......... 10,277,574
44,000 Dresdner Bank AG (Financial Services)... 2,377,057
163,192 Linde AG (Manufacturing)................ 8,963,499
169,912 Mannesmann AG (Media & Services)........ 40,940,833
66,933 Muenchener Rueckversicherungs-
Gesellschaft AG (Financial Services).... 16,973,014
273,900 Siemens AG (Communications Equipment)... 34,865,340
125,700 Veba AG (Utilities)..................... 6,110,477
--------------
142,364,394
--------------
HONG KONG -- 1.0%
1,266,000 Cheung Kong (Holdings) Ltd. (Business
Services)............................... 16,082,459
--------------
INDIA -- 1.1%
104,400 Gujarat Ambuja Cements Ltd. (Industrial
Materials).............................. 819,540
^^77,100 Hindalco Industries Ltd., GDR
(Industrial Materials).................. 1,831,125
^^122,200 Larsen & Toubro Ltd., GDR (Business
Services)............................... 4,063,150
^^349,600 State Bank of India GDR (Financial
Services)............................... 4,265,120
^^245,800 Videsh Sanchar Nigam Ltd. (Utilities)... 6,046,680
--------------
17,025,615
--------------
IRELAND -- 0.6%
877,611 Allied Irish Banks PLC (Financial
Services)............................... 9,939,823
--------------
ITALY -- 4.1%
1,170,600 Mediaset S.p.A. (Media & Services)...... 18,115,652
*822,800 San Paolo - IMI S.p.A. (Financial
Services)............................... 11,125,112
2,000,800 Telecom Italia Mobile S.p.A. (Media &
Services)............................... 22,239,928
964,900 Telecom Italia S.p.A. (Utilities)....... 13,539,683
--------------
65,020,375
--------------
JAPAN -- 23.3%
987,000 Bank of Yokohama Ltd. (The) (Financial
Services)............................... 4,541,809
1,176,000 Dai Nippon Printing Co., Ltd. (Media &
Services)............................... 18,727,755
2,000,000 Daiwa Bank Ltd. (The) (Financial
Services)............................... 5,861,949
170,000 Eisai Co., Ltd. (Health Care)........... 3,263,640
82,400 Fuji Machine Manufacturing Co., Ltd.
(Manufacturing)......................... 6,633,538
419,000 Fujisawa Pharmaceutical Co. (Health
Care)................................... 10,152,114
14,100 Fujitsu Support and Service, Inc.
(Computers & Office Equipment).......... 6,901,566
1,601,000 Hitachi Ltd. (Electronics).............. 25,652,281
270,000 Hoya Corp. (Health Care)................ 21,234,911
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-26
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
*104,900 Internet Initiative Japan Inc. ADR
(Software & Services)................... $ 10,194,968
40,000 Ito-Yokado Co., Ltd. (Retail)........... 4,337,842
4,800 Itochu Techno-Science Co.
(Communications Equipment).............. 2,987,249
*2,532,000 Marubeni Corp. (Business Services)...... 10,612,355
170,500 Matsumotokiyoshi Co., Ltd. (Retail)..... 13,176,245
663,000 Minebea Co., Ltd. (Electronics)......... 11,354,977
146,900 Nichiei Co., Ltd. (Financial
Services)............................... 3,186,145
1,378,000 Nikko Securities Co., Ltd. (Financial
Services)............................... 17,407,586
1,098 Nippon Telegraph & Telephone Corp.
(Utilities)............................. 18,772,892
324 NTT Mobile Communication Network, Inc.
(Media & Services)...................... 23,421,418
634,000 Omron Corp. (Communications
Equipment).............................. 14,587,167
370,000 Sharp Corp. (Computers & Office
Equipment).............................. 9,452,881
39,900 Softbank Corp. (Software & Services).... 38,124,360
153,500 Sony Corp. (Media & Services)........... 45,440,366
113,000 Takeda Chemical Industries Ltd. (Health
Care)................................... 5,575,202
82,400 Takefuji Corp. (Financial Services)..... 10,296,475
721,000 Tokyo Style Co., Ltd. (Retail).......... 5,917,051
17,400 Trans Cosmos, Inc. (Computers & Office
Equipment).............................. 7,411,848
202,400 Uni-Charm Corp. (Consumer Non-
Durables)............................... 11,647,068
--------------
366,873,658
--------------
MEXICO -- 1.6%
108,200 Fomento Economico Mexicano S.A. de C.V.
(Food, Beverage & Tobacco).............. 4,814,900
133,300 Grupo Televisa S.A. (Media & Services).. 9,097,725
101,600 Telefonos de Mexico S.A. ADR
(Utilities)............................. 11,430,000
--------------
25,342,625
--------------
NETHERLANDS -- 7.4%
361,200 Fortis Netherlands N.V. (Financial
Services)............................... 12,942,612
263,457 ING Groep N.V. (Financial Services)..... 15,827,949
327,984 Koninklijke KPN N.V. (Utilities)........ 31,854,779
144,851 Koninklijke Philips Electronics N.V.
(Electronics)........................... 19,599,880
*144,300 KPNQwest N.V., Class C (Utilities)...... 9,199,125
173,900 Royal Dutch Petroleum Co. (Energy &
Services)............................... 10,606,163
*70,000 United Pan-Europe Communications N.V.
(Media & Services)...................... 8,910,455
*59,100 United Pan-Europe Communications N.V.
ADR, Class A (Media & Services)......... 7,535,250
--------------
116,476,213
--------------
SINGAPORE -- 0.8%
894,600 Overseas-Chinese Banking Corp., Ltd.
(Financial Services).................... 8,215,689
SINGAPORE -- (CONTINUED)
722,886 Overseas Union Bank Ltd., Class B
(Financial Services).................... $ 4,230,562
--------------
12,446,251
--------------
SOUTH KOREA -- 1.4%
82,520 Korea Telecom Corp. (Utilities)......... 6,168,370
*7,090 Korea Telecom Corp. (Utilities)......... 1,120,330
*43,231 LG Invt & Sec Co. (Financial Services).. 114,489
41,200 Samsung Electronics (Electronics)....... 9,674,434
15,900 Samsung Electronics GDR (Electronics)... 1,906,012
283,330 Shinhan Bank (Financial Services)....... 3,076,411
--------------
22,060,046
--------------
SPAIN -- 4.3%
143,500 Banco Popular Espanol S.A. (Financial
Services)............................... 9,313,005
585,400 Endesa S.A. (Utilities)................. 11,564,783
277,600 Repsol YPF S.A. (Energy & Services)..... 6,405,056
535,500 Telefonica S.A. (Utilities)............. 13,310,958
336,740 Telefonica S.A. ADR (Utilities)......... 26,539,321
--------------
67,133,123
--------------
SWEDEN -- 2.2%
*228,720 Hennes & Mauritz AB, Class B (Retail)... 7,630,221
432,270 Telefonaktiebolaget LM Ericsson
(Communications Equipment).............. 27,677,734
--------------
35,307,955
--------------
SWITZERLAND -- 4.2%
78,900 Credit Suisse Group (Financial
Services)............................... 15,600,269
11,390 Holderbank Financiere Glarus AG (Bearer)
(Industrial Materials).................. 15,511,778
9,769 Nestle S.A. (Food, Beverage &
Tobacco)................................ 17,801,963
1,440 Roche Holdings, Inc. (Health Care)...... 17,002,221
--------------
65,916,231
--------------
THAILAND -- 0.2%
*5,249,566 Siam Commercial Bank Warrants (Financial
Services)............................... 2,443,729
--------------
UNITED KINGDOM -- 13.8%
354,000 Abbey National PLC (Financial
Services)............................... 5,648,362
*114,400 Anglo American PLC (Industrial
Materials).............................. 7,513,421
79,900 AstraZeneca Group PLC (Health Care)..... 3,335,825
118,900 AstraZeneca Group PLC ADR (Health
Care)................................... 4,921,086
381,300 Barclays PLC (Financial Services)....... 10,975,703
2,615,322 BP Amoco PLC (Energy & Services)........ 26,281,233
2,049,000 British Airways PLC (Transportation).... 13,308,561
558,558 British Telecommunications PLC
(Utilities)............................. 13,503,416
*211,000 China.com Corp. (Media & Services)...... 16,589,875
836,100 Imperial Chemical Industries PLC
(Industrial Materials).................. 8,839,876
3,385,800 Invensys PLC (Communications
Equipment).............................. 18,280,590
</TABLE>
MF-27
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------ --------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
UNITED KINGDOM -- (CONTINUED)
508,500 National Westminster Bank PLC (Financial
Services)............................... $ 10,924,591
472,300 Peninsular and Oriental Steam Navigation
Co., (The) (Transportation)............. 7,825,195
803,800 Prudential Corp. PLC (Financial
Services)............................... 15,740,132
963,300 Scottish Power PLC (Utilities).......... 7,265,935
4,005,500 Smith & Nephew PLC (Health Care)........ 13,556,892
1,431,620 SmithKline Beecham PLC (Health Care).... 18,158,777
399,570 Standard Chartered PLC (Financial
Services)............................... 6,214,472
1,699,700 Tomkins PLC (Food, Beverage &
Tobacco)................................ 5,506,205
803,570 Vodafone AirTouch PLC (Media &
Services)............................... 3,953,333
--------------
218,343,480
--------------
Total common stocks..................... $1,519,769,118
==============
U.S. TREASURIES & FEDERAL AGENCIES -- 0.2%
U.S. TREASURY BILLS -- 0.2%
$ 3,500,000 4.665% due 01/06/00..................... $ 3,497,732
==============
SHORT-TERM SECURITIES -- 3.0%
REPURCHASE AGREEMENT
46,714,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $46,724,039
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... $ 46,714,000
==============
<CAPTION>
MARKET
VALUE
--------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks
(cost $1,126,187,622).................. 96.3% $1,519,769,118
Total U.S. treasuries & federal agencies
(cost $3,497,732)...................... 0.2 3,497,732
Total short-term securities
(cost $46,714,000)..................... 3.0 46,714,000
----- --------------
Total investment in securities (total
cost $1,176,399,354)................... 99.5 1,569,980,850
Cash, receivables and other assets...... 0.7 11,108,913
Payable for securities purchased........ (0.2) (2,560,655)
Payable for Fund shares redeemed........ (0.0) (2,607)
Other liabilities....................... (0.0) (487,693)
----- --------------
Net assets.............................. 100.0% $1,578,038,808
===== ==============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.10 per share;
1,500,000,000 shares authorized; 841,200,887
shares outstanding............................... $ 84,120,089
Capital surplus................................... 928,267,120
Accumulated undistributed net investment income... 6,910,396
Accumulated undistributed net realized gain on
investments...................................... 165,322,300
Unrealized appreciation of investments............ 393,581,496
Unrealized appreciation of futures contracts**.... 103,692
Unrealized appreciation of forward foreign
currency contracts (See Note 2)[INF SYM]......... 4,617
Unrealized depreciation of other assets and
liabilities in foreign currencies................ (270,902)
--------------
Net assets........................................ $1,578,038,808
==============
Class IA
Net asset value per share ($1,574,835,778
DIVIDED BY 839,493,958 shares outstanding)
(1,125,000,000 shares authorized)................ $1.88
=====
Class IB
Net asset value per share ($3,203,030 DIVIDED BY
1,706,929 shares outstanding) (375,000,000 shares
authorized)...................................... $1.88
=====
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-28
<PAGE>
<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Business Services..................... 1.9% $ 30,757,964
Communication Equipment............... 9.0 142,675,743
Computer & Office Equipment........... 1.5 23,766,295
Consumer Durables..................... 0.5 7,829,674
Consumer Non-Durables................. 1.7 27,214,556
Electronics........................... 4.3 68,187,584
Energy & Services..................... 5.7 89,911,885
Financial Services.................... 18.0 283,460,617
Food, Beverage, & Tobacco............. 1.8 28,123,068
Health Care........................... 7.2 113,779,096
Industrial Materials.................. 6.6 103,526,483
Manufacturing......................... 1.0 15,597,037
Media & Services...................... 14.6 230,653,221
Retail................................ 3.5 54,986,004
Software & Services................... 3.1 48,319,328
Transportation........................ 1.3 21,133,756
Utilities............................. 14.6 229,846,807
---- --------------
Total common stocks..................... 96.3% $1,519,769,118
==== ==============
</TABLE>
* Non-income producing during period.
^^ Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1999, the market value of these securities amounted to $16,206,075 or 1.0%
of net assets.
** The fund had 2 March 2000 MIB 30 Index Futures contracts, 4 March 2000 CAC 40
10 Euro Index Futures contracts, 3 March 2000 DTB DAX Index Futures contracts
open as of December 31, 1999. These contracts had a market value of
$1,204,559 as of December 31, 1999, and were collateralized by various U.S.
Treasury obligations with a market value of $3,325,000.
[INF SYM]FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ ---------- ---------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $ 819,954 $ 817,360 01/04/00 $2,596
Euro (Buy) 876,135 876,653 03/17/00 (518)
Euro (Buy) 231,742 231,948 03/31/00 (206)
Japanese Yen (Sell) 951,066 952,975 01/04/00 1,909
Japanese Yen (Sell) 193,202 194,038 01/05/00 836
------
$4,617
======
</TABLE>
MF-29
<PAGE>
HARTFORD DIVIDEND AND GROWTH HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<S> <C>
COMMON STOCKS -- 94.2%
AEROSPACE & DEFENSE -- 5.1%
*415,600 Honeywell International, Inc............ $ 23,974,925
2,154,600 United Technologies Corp................ 140,049,028
--------------
164,023,953
--------------
BUSINESS SERVICES -- 0.2%
200,800 Viad Corp............................... 5,597,300
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 1.7%
331,200 International Business Machines Corp.... 35,769,600
264,800 Pitney Bowes, Inc....................... 12,793,150
310,700 Xerox Corp.............................. 7,049,006
--------------
55,611,756
--------------
CONSUMER DURABLES -- 1.5%
405,100 Ford Motor Co........................... 21,647,531
215,900 General Motors Corp..................... 15,693,231
203,500 TRW, Inc................................ 10,569,281
--------------
47,910,043
--------------
CONSUMER NON-DURABLES -- 5.1%
195,900 Avon Products, Inc...................... 6,464,700
510,100 Clorox Co. (The)........................ 25,696,287
468,400 Colgate-Palmolive Co.................... 30,446,000
693,600 Kimberly-Clark Corp..................... 45,257,400
408,800 Procter & Gamble Co. (The).............. 44,789,150
413,700 Stanley Works (The)..................... 12,462,712
--------------
165,116,249
--------------
CONSUMER SERVICES -- 0.3%
151,600 Eastman Kodak Co........................ 10,043,500
--------------
ELECTRONICS -- 4.2%
811,860 General Electric Co..................... 125,635,335
167,900 White Electronic Designs Corp........... 9,119,068
--------------
134,754,403
--------------
ENERGY & SERVICES -- 9.9%
4 BP Amoco PLC............................ 237
609,600 Chevron Corp............................ 52,806,600
892,617 Conoco, Inc., Class B................... 22,203,847
957,283 Exxon Mobil Corp........................ 77,121,111
2,446,300 Repsol YPF S.A. ADR..................... 56,876,475
1,138,200 Suncor Energy, Inc...................... 47,519,850
910,100 Total Fina S.A. ADR..................... 63,024,425
--------------
319,552,545
--------------
FINANCIAL SERVICES -- 18.2%
379,300 Bank One Corp........................... 12,161,306
296,415 Bear Stearns Cos., Inc. (The)........... 12,671,741
369,300 CIGNA Corp.............................. 29,751,731
2,548,350 Citigroup, Inc.......................... 141,592,696
725,800 Edwards (A.G.) & Sons, Inc.............. 23,270,962
1,089,800 Fannie Mae.............................. 68,044,387
790,350 Marsh & Mclennan Cos., Inc.............. 75,626,615
1,206,600 National Commerce Bancorporation........ 27,374,737
1,375,700 Pacific Century Financial Corp.......... 25,708,393
529,200 People's Bank........................... 11,179,350
766,300 Pinnacle West Capital Corp.............. 23,420,043
2,443,300 U.S. Bancorp............................ 58,181,081
522,200 UnionBanCal Corp........................ 20,594,262
542,900 Wachovia Corp........................... 36,917,200
FINANCIAL SERVICES -- (CONTINUED)
364,700 XL Capital Ltd., Class A................ $ 18,918,812
--------------
585,413,316
--------------
FOOD, BEVERAGE &
TOBACCO -- 5.5%
593,100 Heinz (H.J.) Co......................... 23,612,793
547,500 Hershey Foods Corp...................... 26,006,250
1,385,500 McCormick & Co., Inc.................... 41,218,625
1,072,600 PepsiCo, Inc............................ 37,809,150
1,610,100 Philip Morris Co., Inc.................. 37,334,193
3,297,400 Southcorp Ltd........................... 11,586,388
--------------
177,567,399
--------------
HEALTH CARE -- 8.7%
547,200 Abbott Laboratories..................... 19,870,200
672,200 American Home Products Corp............. 26,509,887
425,500 AstraZeneca Group PLC ADR............... 17,764,625
748,000 Baxter International, Inc............... 46,983,750
224,600 Bristol-Myers Squibb Co................. 14,416,512
424,500 Cardinal Health, Inc.................... 20,322,937
270,000 Merck & Co., Inc........................ 18,106,875
1,067,600 Pharmacia & Upjohn, Inc................. 48,042,000
850,300 Warner-Lambert Co....................... 69,671,456
--------------
281,688,242
--------------
INDUSTRIAL MATERIALS -- 4.5%
622,700 Abitibi-Consolidated, Inc............... 7,394,562
223,400 Air Products & Chemicals, Inc........... 7,497,862
181,800 Akzo Nobel N.V. ADR..................... 9,044,550
431,000 Alcoa, Inc.............................. 35,773,000
223,100 Cabot Corp.............................. 4,545,662
387,428 du Pont (E.I.) de Nemours & Co.......... 25,521,819
134,900 Eastman Chemical Co..................... 6,433,043
112,800 International Paper Co.................. 6,366,150
339,300 Temple-Inland, Inc...................... 22,372,593
291,700 Weyerhaeuser Co......................... 20,947,706
--------------
145,896,947
--------------
MANUFACTURING -- 5.2%
213,000 Caterpillar, Inc........................ 10,024,312
*1,076,100 CNH Global N.V.......................... 14,325,581
735,300 Corning, Inc............................ 94,807,743
282,100 Eaton Corp.............................. 20,487,512
283,900 Minnesota Mining & Manufacturing Co..... 27,786,712
--------------
167,431,860
--------------
MEDIA & SERVICES -- 1.5%
608,800 Gannett Co., Inc........................ 49,655,250
--------------
REAL ESTATE -- 2.2%
715,900 Archstone Communities Trust (REIT)...... 14,675,950
545,100 Equity Office Properties Trust (REIT)... 13,423,087
402,000 Kimco Realty Corp. (REIT)............... 13,617,750
590,200 Liberty Property Trust (REIT)........... 14,312,350
191,300 Spieker Properties, Inc. (REIT)......... 6,970,493
284,148 Starwood Hotels & Resorts
Worldwide, Inc.......................... 6,677,478
--------------
69,677,108
--------------
RETAIL -- 2.7%
1,311,030 Intimate Brands, Inc., Class A.......... 56,538,168
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-30
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- --------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
938,400 May Department Stores Co................ $ 30,263,400
--------------
86,801,568
--------------
SOFTWARE & SERVICES -- 1.1%
425,300 Electronic Data Systems Corp............ 28,468,518
*55,801 Microsoft Corp.......................... 6,514,766
--------------
34,983,284
--------------
TRANSPORTATION -- 0.7%
497,400 USFreightways Corp...................... 23,813,025
--------------
UTILITIES -- 15.9%
1,949,200 AT&T Corp............................... 98,921,900
1,538,846 Bell Atlantic Corp...................... 94,735,206
239,400 Columbia Energy Group................... 15,142,050
303,300 Dominion Resources, Inc................. 11,904,525
738,600 DQE, Inc................................ 25,574,025
263,800 Duke Energy Corp........................ 13,222,975
251,200 Edison International.................... 6,578,300
694,100 El Paso Energy Corp..................... 26,939,756
635,900 Endesa S.A. ADR......................... 12,837,231
394,100 Enron Corp.............................. 17,488,187
364,800 GPU, Inc................................ 10,921,200
*177,722 MCI WorldCom, Inc....................... 9,430,347
410,400 Montana Power Co. (The)................. 14,800,050
487,600 Peco Energy Co.......................... 16,944,100
1,760,326 SBC Communications, Inc................. 85,815,892
322,100 Sprint Corp. (FON Group)................ 21,681,356
647,900 Unicom Corp............................. 21,704,650
372,550 UtiliCorp United, Inc................... 7,241,440
--------------
511,883,190
--------------
Total common stocks..................... $3,037,420,938
==============
CONVERTIBLE PREFERRED STOCKS -- 2.1%
MEDIA & SERVICES -- 1.2%
^^9,200,000 American Tower Corp.
6.25% due 10/15/09.................... $ 12,903,000
16,000,000 Tribune Co.
2.00% due 05/15/29.................... 25,440,000
--------------
38,343,000
--------------
UTILITIES -- 0.9%
^^350,000 Qwest TrENDS Trust
5.75% due 11/17/03.................... 24,762,500
65,400 Texas Utilities Co.
9.25% due 08/16/02.................... 2,853,075
--------------
27,615,575
--------------
Total convertible preferred stocks...... $ 65,958,575
==============
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -----------
<S> <C>
EQUITY LINKED SECURITIES -- 0.9%
FINANCIAL SERVICES -- 0.9%
$ 1,771,000 Morgan Stanley Dean Witter & Co. (Reset
PERQS)
6.00% due 03/15/01.................... $14,168,000
160,000 Salomon Smith Barney Holdings, Inc.
(ELKS)
3.25% due 10/06/00.................... 16,640,000
-----------
Total equity linked securities.......... $30,808,000
===========
SHORT-TERM SECURITIES -- 1.7%
REPURCHASE AGREEMENT -- 1.7%
54,015,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $54,026,608
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bond 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... $54,015,000
===========
<CAPTION>
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total common stocks
(cost $2,623,647,049).................. 94.2% $3,037,420,938
Total convertible preferred stocks
(cost $52,239,091)..................... 2.1 65,958,575
Total equity linked securities (see note
2(h)) (cost $29,403,962)............... 0.9 30,808,000
Total short-term securities
(cost $54,015,000)..................... 1.7 54,015,000
----- -------------
Total investment in securities
(total cost $2,759,305,102)............ 98.9 3,188,202,513
Cash, receivables and other assets...... 1.1 36,635,107
Payable for Fund shares redeemed........ (0.0) (1,007,375)
Other liabilities....................... (0.0) (10,785)
----- -------------
Net assets.............................. 100.0% $3,223,819,460
===== =============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value 0.10 per share;
4,000,000,000 shares authorized; 1,500,261,778
shares outstanding............................... $ 150,026,178
Capital surplus................................... 2,376,539,704
Accumulated undistributed net investment income... 999,932
Accumulated undistributed net realized gain on
investments...................................... 267,347,751
Unrealized appreciation of investments............ 428,897,411
Unrealized appreciation of other assets and
liabilities in foreign currencies................ 8,484
-------------
Net assets........................................ $3,223,819,460
=============
Class IA
Net asset value per share ($3,207,732,726
DIVIDED BY 1,492,782,701 shares outstanding)
(3,500,000,000 shares authorized)................ $2.15
====
Class IB
Net asset value per share ($16,086,734
DIVIDED BY 7,479,077 shares outstanding)
(500,000,000 shares authorized).................. $2.15
====
</TABLE>
* Non-income producing during period.
^^ Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1999, the market value of these securities amounted to $37,665,500 or 1.2%
of net assets.
MF-31
<PAGE>
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- --------------
<S> <C>
ASSET-BACKED SECURITIES -- 1.2%
UNITED STATES OF AMERICA -- 1.2%
^^$ 1,530,000 AESOP Funding II LLC, Series 1997-1A,
Class A1
6.22% due 10/20/01................... $ 1,528,592
500,000 Capital Auto Receivables Asset
Trust, Series 1999-2A, Class A3
6.25% due 03/15/03................... 497,175
350,000 Ford Credit Auto Owner Trust,
Series 1999-B, Class A3
5.47% due 09/15/01................... 348,789
1,500,000 Ford Credit Auto Owner Trust,
Series 1999-D, Class A3
6.20% due 04/15/02................... 1,496,595
343,806 Premier Auto Trust, Series 1996-3,
Class A4
6.75% due 11/06/00................... 344,070
672,670 USAA Auto Loan Grantor Trust,
Series 1999-1, Class A
6.10% due 02/15/06................... 666,723
--------------
Total asset-backed securities........... $ 4,881,944
==============
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1%
UNITED STATES OF AMERICA -- 0.1%
^^423,224 SASCO Floating Rate Commercial
Mortgage, Series 1999-C3, Class A
5.993% due 11/20/01.................. $ 423,224
==============
<CAPTION>
SHARES
- --------------
<S> <C>
COMMON STOCKS -- 56.7%
AUSTRALIA -- 0.6%
88,704 Broken Hill Proprietary Co., Ltd.
(Industrial Materials).................. $ 1,160,906
*563,398 M.I.M. Holdings Ltd. (Industrial
Materials).............................. 578,784
753,987 Pasminco Ltd. (Industrial Materials).... 823,915
------------
2,563,605
------------
BRAZIL -- 1.1%
36,000 Embratel Participacoes S.A.
(Utilities)............................. 981,000
4,016,800 Petroleo Brasileiro S.A. (Energy &
Services)............................... 1,030,230
19,400 Telecomunicacoes Brasileiras S.A.
(Utilities)............................. 2,492,900
------------
4,504,130
------------
CANADA -- 0.6%
56,200 Alcan Aluminum Ltd. (Industrial
Materials).............................. 2,300,160
------------
CHINA -- 0.6%
*244,100 China Telecom (Hong Kong) Ltd.
(Media & Services)...................... 1,526,109
*6,900 China Telecom (Hong Kong) Ltd.
ADR (Media & Services).................. 887,081
------------
2,413,190
------------
DENMARK -- 0.1%
4,130 Tele Danmark AS (Utilities)............. 305,397
------------
<CAPTION>
MARKET
SHARES VALUE
- -------------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
FINLAND -- 2.0%
34,793 Oy Nokia (Communications Equipment)..... $ 6,277,150
42,199 UPM-Kymmene Group (Energy &
Services)............................... 1,691,844
------------
7,968,994
------------
FRANCE -- 7.3%
12,400 Air Liquids S.A. (Industrial
Materials).............................. 2,065,622
*42,708 Aventis S.A. (Health Care).............. 2,448,528
24,240 AXA (Financial Services)................ 3,362,535
20,140 Banque National de Paris (BNP)
(Financial Services).................... 1,849,068
10,200 Carrefour S.A. (Retail)................. 1,871,917
10,300 Compagnie de Saint-Gobain S.A.
(Industrial Materials).................. 1,927,434
29,500 Compagnie Generale des
Etablissements Michelin, Class B
(Consumer Durables)..................... 1,153,147
11,400 France Telecom S.A. (Utilities)......... 1,500,264
2,900 L'Oreal (Consumer Non-Durables)......... 2,315,164
6,100 Pinault-Printemps-Redoute S.A.
(Retail)................................ 1,601,877
16,000 Societe Generale S.A. (Financial
Services)............................... 3,704,504
6,510 Suez Lyonnaise des Eaux S.A.
(Utilities)............................. 1,038,124
30,966 Total Fina S.A., B Shares (Energy &
Services)............................... 4,112,435
------------
28,950,619
------------
GERMANY -- 5.2%
22,800 BASF AG (Industrial Materials).......... 1,186,042
4,700 Bayerische Vereinsbank AG (Financial
Services)............................... 319,393
20,000 Deutsche Bank AG (Financial Services)... 1,688,877
21,300 Deutsche Telekom AG (Utilities)......... 1,491,228
6,300 Dresdner Bank AG (Financial Services)... 340,351
23,647 Linde AG (Manufacturing)................ 1,298,837
24,798 Mannesmann AG (Media & Services)........ 5,975,156
9,751 Muenchener Rueckversicherungs-
Gesellschaft AG (Financial Services).... 2,472,679
39,210 Siemens AG (Communications Equipment)... 4,991,128
18,000 Veba AG (Utilities)..................... 875,008
------------
20,638,699
------------
HONG KONG -- 1.0%
324,000 Cheung Kong (Holdings) Ltd. (Business
Services)............................... 4,115,890
------------
INDIA -- 0.6%
15,000 Gujarat Ambuja Cements Ltd. (Industrial
Materials).............................. 117,750
^^11,400 Hindalco Industries Ltd., GDR
(Industrial Materials).................. 270,750
^^18,000 Larsen & Toubro Ltd., GDR (Business
Services)............................... 598,500
^^50,000 State Bank of India GDR (Financial
Services)............................... 610,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-32
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
INDIA -- (CONTINUED)
^^35,300 Videsh Sanchar Nigam Ltd. (Utilities)... $ 868,380
------------
2,465,380
------------
IRELAND -- 0.4%
128,572 Allied Irish Banks PLC (Financial
Services)............................... 1,456,206
------------
ITALY -- 2.4%
170,500 Mediaset S.p.A. (Media & Services)...... 2,638,577
*119,900 San Paolo - IMI S.p.A. (Financial
Services)............................... 1,621,172
291,700 Telecom Italia Mobile S.p.A. (Media &
Services)............................... 3,242,396
136,544 Telecom Italia S.p.A. (Utilities)....... 1,916,020
------------
9,418,165
------------
JAPAN -- 14.0%
248,000 Bank of Yokohama Ltd. (The) (Financial
Services)............................... 1,141,204
186,000 Dai Nippon Printing Co., Ltd. (Media &
Services)............................... 2,962,043
294,000 Daiwa Bank Ltd. (The) (Financial
Services)............................... 861,706
25,000 Eisai Co., Ltd. (Health Care)........... 479,947
11,900 Fuji Machine Manufacturing Co., Ltd.
(Manufacturing)......................... 957,998
62,000 Fujisawa Pharmaceutical Co. (Health
Care)................................... 1,502,222
2,100 Fujitsu Support and Service, Inc.
(Computers & Office Equipment).......... 1,027,892
234,000 Hitachi Ltd. (Electronics).............. 3,749,302
40,000 Hoya Corp. (Health Care)................ 3,145,912
*15,100 Internet Initiative Japan, Inc.
(Software & Services)................... 1,467,617
6,000 Ito-Yokado Co., Ltd. (Retail)........... 650,676
700 Itochu Techno-Science Co.
(Communications Equipment).............. 435,640
*374,000 Marubeni Corp. (Business Services)...... 1,567,543
33,400 Matsumotokiyoshi Co., Ltd. (Retail)..... 2,581,153
98,000 Minebea Co., Ltd. (Electronics)......... 1,678,412
21,200 Nichiei Co., Ltd. (Financial
Services)............................... 459,811
203,000 Nikko Securities Co., Ltd. (Financial
Services)............................... 2,564,397
181 Nippon Telegraph & Telephone Corp.
(Utilities)............................. 3,094,620
89 NTT Mobile Communication Network, Inc.
(Media & Services)...................... 3,417,223
93,000 Omron Corp. (Communications
Equipment).............................. 2,139,758
54,000 Sharp Corp. (Computers & Office
Equipment).............................. 1,379,609
5,800 Softbank Corp. (Software & Services).... 5,541,886
22,600 Sony Corp. (Media & Services)........... 6,690,242
18,000 Takeda Chemical Industries Ltd. (Health
Care)................................... 888,085
12,100 Takefuji Corp. (Financial Services)..... 1,511,982
101,000 Tokyo Style Co., Ltd. (Retail).......... 828,879
2,600 Trans Cosmos, Inc. (Computers & Office
Equipment).............................. 1,107,517
JAPAN -- (CONTINUED)
29,800 Uni-Charm Corp. (Consumer Non-
Durables)............................... $ 1,714,835
------------
55,548,111
------------
MEXICO -- 0.9%
16,000 Fomento Economico Mexicano S.A. de C.V.
(Food, Beverage & Tobacco).............. 712,000
19,600 Grupo Televisa S.A. (Media & Services).. 1,337,700
14,900 Telefonos de Mexico S.A. ADR
(Utilities)............................. 1,676,250
------------
3,725,950
------------
NETHERLANDS -- 4.3%
51,100 Fortis Netherlands N.V. (Financial
Services)............................... 1,831,028
38,491 ING Groep N.V. (Financial Services)..... 2,312,459
48,612 Koninklijke KPN N.V. (Utilities)........ 4,721,341
20,760 Koninklijke Philips Electronics N.V.
(Electronics)........................... 2,809,048
*21,100 KPNQwest N.V., Class C (Utilities)...... 1,345,125
24,900 Royal Dutch Petroleum Co. (Energy &
Services)............................... 1,518,651
*10,000 United Pan-Europe Communications N.V.
(Media & Services)...................... 1,272,945
*8,600 United Pan-Europe Communications N.V.
ADR (Media & Services).................. 1,096,500
------------
16,907,097
------------
SINGAPORE -- 0.5%
131,250 Oversea-Chinese Banking Corp., Ltd.
(Financial Services).................... 1,205,353
103,922 Overseas Union Bank Ltd., Class B
(Financial Services).................... 608,185
------------
1,813,538
------------
SOUTH KOREA -- 0.8%
*1,010 Korea Telecom Corp. (Utilities)......... 159,595
11,880 Korea Telecom Corp. ADR (Utilities)..... 888,030
*6,198 LG Intv & Sec Co. (Financial Services).. 16,414
6,050 Samsung Electronics (Electronics)....... 1,420,639
2,300 Samsung Electronics GDR (Electronics)... 275,712
40,730 Shinhan Bank (Financial Services)....... 442,248
------------
3,202,638
------------
SPAIN -- 2.4%
20,900 Banco Popular Espanol S.A. (Financial
Services)............................... 1,356,388
82,100 Endesa S.A. (Utilities)................. 1,621,914
40,200 Repsol YPF S.A. (Energy & Services)..... 927,533
76,800 Telefonica S.A. (Utilities)............. 1,909,022
49,161 Telefonica S.A. ADR (Utilities)......... 3,874,501
------------
9,689,358
------------
SWEDEN -- 1.3%
*31,320 Hennes & Mauritz AB, Class B (Retail)... 1,044,851
62,030 Telefonaktiebolaget LM Ericsson
(Communications Equipment).............. 3,971,707
------------
5,016,558
------------
</TABLE>
MF-33
<PAGE>
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
SWITZERLAND -- 2.4%
11,560 Credit Suisse Group (Financial
Services)............................... $ 2,287,352
1,630 Holderbank Financiere Glarus AG (Bearer)
(Industrial Materials).................. 2,219,859
1,415 Nestle S.A. (Food, Beverage &
Tobacco)................................ 2,578,542
210 Roche Holdings, Inc. (Health Care)...... 2,479,490
------------
9,565,243
------------
THAILAND -- 0.1%
*747,367 Siam Commercial Bank Warrants (Financial
Services)............................... 347,990
------------
UNITED KINGDOM -- 8.1%
50,700 Abbey National PLC (Financial
Services)............................... 808,960
*16,800 Anglo American PLC (Industrial
Materials).............................. 1,103,369
17,600 AstraZeneca Group PLC (Health Care)..... 728,436
12,100 AstraZeneca Group PLC ADR (Health
Care)................................... 505,175
56,400 Barclays PLC (Financial Services)....... 1,623,471
378,680 BP Amoco PLC (Energy & Services)........ 3,805,335
301,500 British Airways PLC (Transportation).... 1,958,287
79,052 British Telecommunications PLC
(Utilities)............................. 1,911,121
*30,800 China.com Corp. (Media & Services)...... 2,421,650
119,300 Imperial Chemical Industries PLC
(Industrial Materials).................. 1,261,329
499,400 Invensys PLC (Communications
Equipment).............................. 2,696,365
73,100 National Westminster Bank PLC (Financial
Services)............................... 1,570,477
69,600 Peninsular and Oriental Steam Navigation
Co., (The) (Transportation)............. 1,153,151
115,900 Prudential Corp. PLC (Financial
Services)............................... 2,269,571
137,400 Scottish Power PLC (Utilities).......... 1,036,374
587,600 Smith & Nephew PLC (Health Care)........ 1,988,772
209,443 SmithKline Beecham PLC (Health Care).... 2,656,590
58,980 Standard Chartered PLC (Financial
Services)............................... 917,310
244,200 Tomkins PLC (Food, Beverage &
Tobacco)................................ 791,089
121,845 Vodafone AirTouch PLC (Media &
Services)............................... 599,442
------------
$ 31,806,274
------------
Total common stocks..................... $224,723,192
============
<CAPTION>
PRINCIPAL
AMOUNT
- -------------
<S> <C>
CORPORATE BONDS -- 3.4%
UNITED STATES OF AMERICA -- 3.4%
$ 700,000 American General Corp. (Financial
Services)
6.875% due 12/14/01................... $ 697,911
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -----------
<S> <C>
CORPORATE BONDS -- (CONTINUED)
UNITED STATES OF AMERICA -- (CONTINUED)
$ 1,000,000 Columbia/HCA Healthcare Corp. (Health
Care)
5.89% due 12/15/00.................... $ 994,589
2,500,000 Diageo Capital PLC (Financial Services)
5.90% due 04/07/00.................... 2,497,000
925,000 Ford Motor Credit Co. (Financial
Services)
7.50% due 04/03/00.................... 928,757
2,000,000 General Motors Acceptance Corp.
(Financial Services)
6.90% due 07/05/00.................... 2,007,790
844,000 International Bank for Reconstruction &
Development (Financial Services)
6.00% due 08/22/00.................... 840,033
3,000,000 Prudential Funding Corp. (Financial
Services)
5.319% due 12/21/00................... 2,994,600
300,000 Statoil (Energy & Services)
6.25% due 10/10/00.................... 298,950
800,000 Wells Fargo & Co. (Financial Services)
6.321% due 09/15/01................... 801,581
1,500,000 Xerox Corp. (Computers & Office
Equipment)
9.75% due 03/15/00.................... 1,509,102
-----------
Total corporate bonds................... $13,570,313
===========
ENHANCED EQUIPMENT TRUST CERTIFICATES -- 0.1%
UNITED STATES OF AMERICA -- 0.1%
300,329 Daimler-Benz Vehicle Trust, Series
1998-A, Class A2
5.23% due 12/20/01.................... $ 299,809
===========
<CAPTION>
PRINCIPAL
AMOUNT
(IN LOCAL
CURRENCY)
- -------------
<S> <C>
FOREIGN CORPORATE BONDS -- 2.6%
GERMANY -- 0.2%
[DIA SYM] 1,900,000 Toyota Motor Credit Corp. (Financial
Services)
5.375% due 12/28/01................... $ 986,639
-----------
JAPAN -- 1.1%
Y 460,000,000 KFW International Finance, Inc.
(Financial Services)
1.00% due 12/20/04............................ 4,507,643
-----------
UNITED KINGDOM -- 1.3%
L 375,000 British Gas PLC (Utilities)
5.375% due 12/07/09................... 542,098
700,000 British Gas PLC (Utilities)
7.00% due 04/04/00.................... 1,126,762
550,000 Citicorp (Financial Services)
7.648% due 03/27/03................... 872,540
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-34
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN LOCAL MARKET
CURRENCY) VALUE
- -------------- --------------
<S> <C>
FOREIGN CORPORATE BONDS -- (CONTINUED)
UNITED KINGDOM -- (CONTINUED)
L 1,100,000 European Investment Banking (Financial
Services)
7.625% due 12/07/06................... $ 1,873,097
350,000 General Motors Acceptance Corp.
(Financial Services)
6.875% due 09/09/04................... 556,966
--------------
4,971,463
--------------
Total foreign corporate bonds........... $ 10,465,745
==============
FOREIGN GOVERNMENT BONDS -- 10.7%
CANADA -- 0.6%
^ 2,500,000 Province of Alberta
9.25% due 04/01/00.................... $ 2,516,725
--------------
FRANCE -- 5.0%
[DIA SYM] 5,800,000 France BTAN
3.00% due 07/12/01.................... 5,721,204
7,000,000 France BTAN
3.50% due 07/12/04.................... 6,658,636
2,600,000 France O.A.T.
4.00% due 10/25/09.................... 2,319,324
5,005,000 France O.A.T.
6.00% due 10/25/25.................... 5,046,615
--------------
19,745,779
--------------
GERMANY -- 2.9%
[DIA SYM] 3,000,000 Bundesschatzanweisungen
3.25% due 09/15/00.................... 3,001,490
2,500,000 Deutschland Republic
6.875% due 05/12/05................... 2,722,249
5,020,000 Deutschland Republic
6.25% due 01/04/24.................... 5,220,234
1,500,000 Republic of Slovenia
5.75% due 06/16/04.................... 775,159
--------------
11,719,132
--------------
GREECE -- 0.1%
[HS SYM] 82,000,000 Hellenic Republic
6.50% due 01/11/14.................... 246,711
ITALY -- 0.2% --------------
[DIA SYM] 568,102 Buoni Poliennali Del Tes
6.50% due 11/01/27.................... 594,747
--------------
JAPAN -- 1.0%
Y 283,000,000 Japan #184
2.90% due 12/20/05.................... 3,011,237
36,000,000 Japan #207
0.90% due 12/22/08.................... 322,770
77,900,000 Japan #213
1.40% due 06/22/09.................... 726,523
--------------
4,060,530
--------------
SWEDEN -- 0.4%
@ 10,000,000 Sweden Kingdom 1034
9.00% due 04/20/09.................... 1,439,887
--------------
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
UNITED KINGDOM -- 0.5%
L 381,000 Iceland Republic
8.75% due 05/12/03.................... $ 641,659
700,000 U.K. Treasury Gilt
7.75% due 09/08/06.................... 1,236,157
--------------
1,877,816
--------------
Total foreign government bonds............... $ 42,201,327
==============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<S> <C>
U.S. TREASURIES & FEDERAL AGENCIES -- 2.0%
FEDERAL HOME LOAN MORTGAGE
ASSOCIATION -- 0.2%
$ 500,000 5.625% due 06/10/03..................... $ 776,355
----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 0.5%
1,300,000 FNMA-Global Medium Term Note
5.50% due 12/07/03.................... 1,998,306
----------
U.S. TREASURY NOTES -- 1.3%
1,050,000 10.75% due 08/15/05..................... 1,253,437
1,800,000 4.94% due 01/27/00...................... 1,793,578
910,000 5.50% due 01/31/03...................... 888,387
1,150,000 7.00% due 07/15/06...................... 1,178,031
----------
5,113,433
----------
Total U.S. treasuries & federal
agencies................................ $7,888,094
==========
SHORT-TERM SECURITIES -- 23.2%
COMMERCIAL PAPER -- 8.1%
2,000,000 Aegon N.V.
5.99% due 02/04/00.................... $1,988,685
2,000,000 American General Corp.
5.99% due 02/15/00.................... 1,985,025
2,500,000 Apreco, Inc.
6.10% due 02/24/00.................... 2,477,125
853,000 Delaware Funding
6.25% due 02/29/00.................... 844,262
703,000 Delaware Funding
6.30% due 02/18/00.................... 697,094
2,500,000 Den Danske Corp.
5.95% due 03/14/00.................... 2,469,836
1,429,000 Fleet Funding
5.93% due 02/11/00.................... 1,419,332
3,500,000 General Electric Capital Corp.
5.90% due 02/17/00.................... 3,473,040
2,000,000 Halifax PLC
5.78% due 03/24/00.................... 1,973,347
1,500,000 Morgan (J.P.) & Co., Inc.
5.95% due 02/24/00.................... 1,486,612
2,000,000 National Rural Utilities
5.75% due 02/18/00.................... 1,984,666
3,390,000 PREFCO
5.95% due 02/01/00.................... 3,372,630
3,800,000 Private Export FDG
5.82% due 02/28/00.................... 3,764,368
</TABLE>
MF-35
<PAGE>
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- -------------- --------------
<S> <C>
SHORT-TERM SECURITIES -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
$ 2,100,000 Riverwoods Funding
6.02% due 02/15/00.................... $ 2,084,197
1,500,000 Scripps (E.W.) Co. (The)
5.80% due 02/25/00.................... 1,486,708
500,000 Telstra Corp. Ltd
5.95% due 02/14/00.................... 496,272
--------------
32,003,199
--------------
CORPORATE BONDS -- 3.0%
2,500,000 Abbey National PLC
6.128% due 08/04/00................... 2,496,417
670,000 Bayerische Hypo Vereinsbank AG
6.375% due 09/06/00................... 670,247
2,000,000 Deutsche Bank AG
5.90% due 02/14/00.................... 1,999,594
2,000,000 First National Bank of Chicago
5.83% due 02/22/00.................... 1,998,956
1,175,000 Glaxo Wellcome PLC
6.75% due 05/31/00.................... 1,177,888
2,700,000 International Bank for Reconstruction &
Development
5.15% due 03/23/00.................... 2,693,938
1,000,000 KFW International Finance, Inc.
5.75% due 12/01/00.................... 992,275
--------------
12,029,315
--------------
REPURCHASE AGREEMENT -- 12.1%
47,887,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $47,897,291
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... 47,887,000
--------------
Total short-term securities............. $ 91,919,514
==============
<CAPTION>
MARKET
VALUE
-----------
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total asset-backed securities
(cost $4,889,473)...................... 1.2% $ 4,881,944
Total collateralized mortgage
obligations (cost $423,224)............ 0.1 423,224
Total common stocks
(cost $166,952,169).................... 56.7 224,723,192
Total corporate bonds
(cost $13,588,950)..................... 3.4 13,570,313
Total enhanced equipment trust
certificates (cost $300,302)........... 0.1 299,809
Total foreign corporate bonds
(cost $10,647,403)..................... 2.6 10,465,745
Total foreign government bonds
(cost $46,051,695)..................... 10.7 42,201,327
Total U.S. treasuries & federal agencies
(cost $8,012,508)...................... 2.0 7,888,094
Total short-term securities
(cost $91,919,514)..................... 23.2 91,919,514
----- -----------
Total investment in securities
(total cost $342,785,238).............. 100.0 396,373,162
Cash, receivables and other assets...... 0.9 3,682,350
Payable for securities purchased........ (0.8) (3,345,747)
Other liabilities....................... (0.1) (551,559)
----- -----------
Net assets.............................. 100.0% $396,158,206
===== ===========
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.10 per share;
750,000,000 shares authorized; 283,640,491 shares
outstanding...................................... $28,364,049
Capital surplus................................... 282,987,772
Accumulated undistributed net investment income... 3,452,773
Accumulated undistributed net realized gain on
investments...................................... 25,895,754
Unrealized appreciation of investments............ 53,587,924
Unrealized appreciation of futures contracts **... 1,143,465
Unrealized appreciation of forward foreign
currency contracts (See Note 2) [INF SYM]........ 930,319
Unrealized depreciation of other assets and
liabilities in foreign currencies................ (203,850)
-----------
Net assets........................................ $396,158,206
===========
Class IA
Net asset value per share ($396,147,465
DIVIDED BY 283,632,800 shares outstanding)
(562,500,000 shares authorized).................. $1.40
====
Class IB
Net asset value per share ($10,741 DIVIDED BY
7,691 shares outstanding) (187,500,000 shares
authorized)...................................... $1.40
====
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-36
<PAGE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C> <C>
DIVERSIFICATION BY INDUSTRY:
Business Services....................... 1.6% $ 6,281,933
Communication Equipment................. 5.2 20,511,748
Computer & Office Equipment............. 0.9 3,515,018
Consumer Durables....................... 0.3 1,153,147
Consumer Non-Durables................... 1.0 4,029,999
Electronics............................. 2.5 9,933,113
Energy & Services....................... 3.3 13,086,028
Financial Services...................... 10.4 41,561,091
Food, Beverage, & Tobacco............... 1.0 4,081,631
Health Care............................. 4.2 16,823,157
Industrial Materials.................... 3.8 15,015,920
Manufacturing........................... 0.6 2,256,835
Media & Services........................ 8.6 34,067,064
Retail.................................. 2.2 8,579,353
Software & Services..................... 1.8 7,009,503
Transportation.......................... 0.8 3,111,438
Utilities............................... 8.5 33,706,214
---- ------------
Total common stocks..................... 56.7% $224,723,192
==== ============
Computer & Office Equipment............. 0.3% $ 1,509,102
Energy & Services....................... 0.1 $ 298,950
Financial Services...................... 2.7 $ 10,767,672
Health Care............................. 0.3 994,589
---- ------------
Total corporate bonds................... 3.4% $ 13,570,313
==== ============
</TABLE>
* Non-income producing during period
^^ Securities exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At
December 31, 1999, the market value of these securities amounted
to $4,299,446 or 1.1% of net assets.
** The fund had 25 March 2000 NEW FTSE 100 Index Future contracts, 6
March 2000 S&P/TSE 60 Index Futures contracts, 38 March 2000 CAC
40 10 Euro Index Futures contracts, 10 March 2000 ASX All Ordinaries
Share Price Index Futures contracts, 3 January 2000 IBEX 35 Index
Futures contracts, 15 March 2000 TSE 10 year JGB Index Futures
contracts, 10 March 2000 TOPIX Index Futures contracts, 60 January
2000 OMX Index Futures contracts, 5 March 2000 MIB 30 Index
Futures contracts, 7 March 2000 DTB DAX Index Futures contracts, 2
January 2000 Hang Seng Index Futures contracts, 133 March 2000
Euro Bond Futures contracts open as of December 31, 1999. These
contracts had a market value of $44,787,455 as of December 31,
1999, and were collateralized by various U.S. Treasury obligations
with a market value of $1,425,000.
^ Canadian Dollar
[DIA SYM] Euro
[HS SYM] Greek Drachma
Y Japanese Yen
@ Swedish Krona
L British Pound
MF-37
<PAGE>
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
[INF SYM]FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ ------------ -------- --------------
<S> <C> <C> <C> <C>
Australian Dollars (Buy) $ 511,543 $ 495,466 03/31/00 $ 16,077
British Pounds (Buy) 2,694,261 2,686,515 03/17/00 7,746
British Pounds (Buy) 119,345 118,967 01/04/00 378
British Pounds (Sell) 9,702,168 9,761,976 01/26/00 59,808
Canadian Dollars (Buy) 2,146,517 2,118,123 01/20/00 28,394
Canadian Dollars (Buy) 304,667 298,123 01/20/00 6,544
Canadian Dollars (Buy) 398,946 389,415 03/16/00 9,531
Canadian Dollars (Sell) 1,211,744 1,181,036 01/20/00 (30,708)
Euro (Buy) 5,177,682 5,567,400 01/12/00 (389,718)
Euro (Buy) 518,270 545,309 01/12/00 (27,039)
Euro (Buy) 512,499 528,809 01/20/00 (16,310)
Euro (Buy) 502,200 505,850 01/12/00 (3,650)
Euro (Buy) 342,591 342,863 01/21/00 (272)
Euro (Buy) 2,111,339 2,112,588 03/17/00 (1,249)
Euro (Buy) 2,201,552 2,203,504 03/31/00 (1,952)
Euro (Sell) 1,516,644 1,578,177 01/12/00 61,533
Euro (Sell) 29,367,399 30,584,587 01/20/00 1,217,188
Euro (Sell) 4,047,737 4,215,584 01/20/00 167,847
Euro (Sell) 220,073 221,365 01/20/00 1,292
Japanese Yen (Buy) 1,610,883 1,585,360 01/12/00 25,523
Japanese Yen (Buy) 1,579,077 1,581,147 03/09/00 (2,070)
Japanese Yen (Sell) 5,161,666 5,085,763 01/12/00 (75,903)
Japanese Yen (Sell) 1,008,025 1,000,389 01/12/00 (7,636)
Japanese Yen (Sell) 1,233,038 1,200,977 02/09/00 (32,061)
Japanese Yen (Sell) 4,831,067 4,705,422 02/22/00 (125,645)
Japanese Yen (Sell) 126,236 126,489 01/04/00 253
Japanese Yen (Sell) 43,428 43,616 01/05/00 188
New Zealand Dollars (Buy) 1,230,504 1,200,731 02/14/00 29,773
Singapore Dollars (Buy) 1,197,466 1,201,005 02/09/00 (3,539)
Swedish Krona (Buy) 722,973 737,798 01/28/00 (14,825)
Swedish Krona (Sell) 1,545,685 1,576,506 02/22/00 30,821
----------
$ 930,319
==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-38
<PAGE>
HARTFORD SMALL COMPANY HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<S> <C>
COMMON STOCKS -- 90.6%
AEROSPACE & DEFENSE -- 0.9%
338,500 Primex Technologies, Inc................ $ 7,023,875
------------
BUSINESS SERVICES -- 4.6%
*422,500 Iron Mountain, Inc...................... 16,609,531
154,600 Manpower, Inc........................... 5,816,825
22,300 Penton Media, Inc....................... 535,200
*275,100 Pilot Network Services, Inc............. 6,602,400
*129,100 Plexus Corp............................. 5,680,400
------------
35,244,356
------------
COMMUNICATIONS EQUIPMENT -- 8.1%
*336,100 Burr-Brown Corp......................... 12,141,612
*397,900 Cirrus Logic, Inc....................... 5,297,043
*62,200 Digital Lightwave, Inc.................. 3,980,800
*95,000 Gilat Satellite Networks Ltd............ 11,281,250
*139,100 Netro Corp.............................. 7,094,100
*78,300 Network Peripherals, Inc................ 3,699,675
*231,800 Visual Networks, Inc.................... 18,370,150
------------
61,864,630
------------
COMPUTERS & OFFICE EQUIPMENT -- 7.6%
*72,300 Affiliated Computer Services, Inc.,
Class A................................. 3,325,800
*1,144,000 Concurrent Computer Corp................ 21,378,500
*1,243,000 Danka Business Systems PLC.............. 15,770,562
*1,137,100 Maxtor Corp............................. 8,243,975
*184,450 SeaChange International, Inc............ 6,524,918
*76,200 Silicon Storage Technology, Inc......... 3,143,250
------------
58,387,005
------------
CONSUMER DURABLES -- 1.6%
*546,000 Brightpoint, Inc........................ 7,166,250
*369,300 UNOVA, Inc.............................. 4,800,900
------------
11,967,150
------------
CONSUMER NON-DURABLES -- 0.7%
*597,400 Ivex Packaging Corp..................... 5,974,000
------------
CONSUMER SERVICES -- 0.7%
*232,400 Dollar Thrifty Automotive Group......... 5,563,075
------------
ELECTRONICS -- 15.1%
*452,800 Advanced Fibre Communications, Inc...... 20,234,500
*438,100 Alliance Semiconductor Corp............. 7,310,793
*159,100 ANADIGICS, Inc.......................... 7,507,531
*209,500 Benchmark Electronics, Inc.............. 4,805,406
*131,000 Cognex Corp............................. 5,109,000
*142,000 DII Group, Inc. (The)................... 10,077,562
*110,800 Electro Scientific Industries, Inc...... 8,088,400
*156,500 Galileo Technology Ltd.................. 3,775,562
*203,500 GaSonics International Corp............. 4,019,125
*209,200 Kulicke and Soffa Industries, Inc....... 8,904,075
*203,300 Maker Communications, Inc............... 8,691,075
*285,900 Photronics, Inc......................... 8,183,887
*340,100 Quanta Services, Inc.................... 9,607,825
*274,500 Varian Semiconductor Equipment
Associates, Inc......................... 9,333,000
------------
115,647,741
------------
ENERGY & SERVICES -- 2.7%
*159,400 BJ Services Co.......................... 6,664,912
122,500 Coflexip S.A. ADR....................... 4,655,000
ENERGY & SERVICES -- (CONTINUED)
*313,100 Marine Drilling Co., Inc................ $ 7,025,181
127,700 Pogo Producing Co....................... 2,617,850
------------
20,962,943
------------
FINANCIAL SERVICES -- 6.0%
326,600 Annuity & Life Re (Holdings), Ltd....... 8,532,425
193,200 Legg Mason, Inc......................... 7,003,500
*378,800 NCO Group, Inc.......................... 11,411,350
*244,600 Neuberger Berman, Inc................... 6,084,425
*91,400 NextCard, Inc........................... 2,639,175
*158,400 Profit Recovery Group International,
Inc.(The)............................... 4,207,500
211,912 Reinsurance Group of America, Inc....... 5,880,558
------------
45,758,933
------------
HEALTH CARE -- 5.2%
*255,100 Aurora Biosciences Corp................. 6,760,150
*79,003 Gilead Sciences, Inc.................... 4,276,037
*71,400 Human Genome Sciences, Inc.............. 10,897,425
*72,800 King Pharmaceuticals, Inc............... 4,081,350
*19,400 PE Corp. - Celera Genomics Group........ 2,890,600
*369,800 Quest Diagnostics, Inc.................. 11,302,027
------------
40,207,589
------------
INDUSTRIAL MATERIALS -- 1.3%
149,000 Minerals Technologies, Inc.............. 5,969,312
*120,100 Stillwater Mining Co.................... 3,828,187
------------
9,797,499
------------
MANUFACTURING -- 0.5%
*79,400 Veeco Instruments, Inc.................. 3,716,912
------------
MEDIA & SERVICES -- 5.1%
*254,800 Cumulus Media, Inc., Class A............ 12,931,100
*243,400 SFX Entertainment, Inc., Class A........ 8,808,037
*104,900 Spanish Broadcasting System, Inc........ 4,222,225
*290,800 Speedway Motorsports, Inc............... 8,087,875
*283,900 World Wrestling Federation
Entertainment, Inc., Class A............ 4,897,275
------------
38,946,512
------------
RETAIL -- 5.2%
164,600 Ethan Allen Interiors, Inc.............. 5,277,487
*228,900 Linens 'n Things, Inc................... 6,781,162
*317,250 Pacific Sunwear of California, Inc...... 10,211,484
*249,100 Papa John's International, Inc.......... 6,492,168
*10,800 Steven Madden, Ltd...................... 205,875
*230,800 Whole Foods Market, Inc................. 10,703,350
------------
39,671,526
------------
SOFTWARE & SERVICES -- 14.5%
*74,700 Aspect Development, Inc................. 5,116,950
*205,400 Brio Technology, Inc.................... 8,626,800
*400,600 Cambridge Technology Partners,.......... 10,515,750
*87,800 Creo Products, Inc...................... 3,374,812
*162,300 Digex, Inc.............................. 11,158,125
*61,900 Digital Insight Corp.................... 2,251,612
*152,000 Digital River, Inc...................... 5,063,500
*148,800 Documentum, Inc......................... 8,909,400
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-39
<PAGE>
HARTFORD SMALL COMPANY HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
SOFTWARE & SERVICES -- (CONTINUED)
*187,600 Genesys Telecommunications
Laboratories, Inc....................... $ 10,130,400
*177,600 Globix Corp............................. 10,656,000
*55,900 HNC Software, Inc....................... 5,911,425
*132,800 Insight Enterprises, Inc................ 5,395,000
*27,900 Macromedia, Inc......................... 2,040,187
*31,300 Marimba, Inc............................ 1,441,756
*87,000 Netegrity, Inc.......................... 4,953,562
*102,500 Novadigm, Inc........................... 2,126,875
*179,000 Object Design, Inc...................... 2,595,500
*142,000 Peregrine Systems, Inc.................. 11,954,625
------------
112,222,279
------------
TRANSPORTATION -- 4.6%
*436,400 Atlas Air, Inc.......................... 11,973,725
*4,500 Rayanair Holdings PLC ADR............... 248,062
172,600 Robinson (C.H.) Worldwide, Inc.......... 6,860,850
157,500 Skywest, Inc............................ 4,410,000
*275,700 Swift Transportation Co., Inc........... 4,859,212
138,900 USFreightways Corp...................... 6,649,837
------------
35,001,686
------------
UTILITIES -- 6.2%
*617,200 PairGain Technologies, Inc.............. 8,756,525
*569,800 Primus Telecommunications
Group, Inc.............................. 21,794,850
*317,000 Viatel, Inc............................. 16,999,125
------------
47,550,500
------------
Total common stocks..................... $695,508,211
============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<S> <C>
SHORT-TERM SECURITIES -- 9.3%
REPURCHASE AGREEMENT -- 9.3%
$71,063,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $71,078,272
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... $ 71,063,000
============
<CAPTION>
MARKET
VALUE
-------------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$514,325,403).......................... 90.6% $ 695,508,211
Total short-term securities (cost
$71,063,000)........................... 9.3 71,063,000
----- -------------
Total investment in securities (total
cost $585,388,403)..................... 99.9 766,571,211
Cash, receivables and other assets...... 2.7 21,046,066
Payable for securities purchased........ (2.6) (20,102,134)
Other liabilities....................... (0.0) (12,910)
----- -------------
Net assets.............................. 100.0% $ 767,502,233
===== =============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.10 per share;
750,000,000 shares authorized; 350,816,042 shares
outstanding...................................... $35,081,604
Capital surplus................................... 431,637,939
Accumulated undistributed net realized gain on
investments...................................... 119,599,882
Unrealized appreciation of investments............ 181,182,808
-----------
Net assets........................................ $767,502,233
===========
Class IA
Net asset value per share ($757,301,857
DIVIDED BY 346,151,257 shares outstanding)
(562,500,000 shares authorized).................. $2.19
====
Class IB
Net asset value per share ($10,200,376
DIVIDED BY 4,664,785 shares outstanding)
(187,500,000 shares authorized).................. $2.19
====
</TABLE>
* Non-income producing during period.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-40
<PAGE>
HARTFORD MIDCAP HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------- ------------
<S> <C>
COMMON STOCKS -- 95.2%
BUSINESS SERVICES -- 8.6%
*329,250 Iron Mountain, Inc...................... $ 12,943,640
433,100 Manpower, Inc........................... 16,295,387
301,900 Viad Corp............................... 8,415,462
*252,300 Waters Corp............................. 13,371,919
100,300 Young & Rubicam, Inc.................... 7,096,225
------------
58,122,633
------------
COMMUNICATIONS EQUIPMENT -- 5.1%
*19,100 Broadcom Corp., Class A................. 5,202,362
*105,600 CIENA Corp.............................. 6,072,000
*30,600 Exodus Communications, Inc.............. 2,717,662
*51,600 Network Appliance, Inc.................. 4,286,025
*14,600 SDL, Inc................................ 3,182,800
*159,600 TeleCorp PCS, Inc....................... 6,064,800
*36,800 VeriSign, Inc........................... 7,026,500
------------
34,552,149
------------
COMPUTERS & OFFICE EQUIPMENT -- 3.5%
*122,900 Affiliated Computer Services, Inc.,
Class A................................. 5,653,400
*34,800 ASM Lithography Holding N.V............. 3,958,500
326,300 Steelcase, Inc., Class A................ 3,915,600
*188,100 UNISYS Corp............................. 6,007,443
*84,000 Xilinx, Inc............................. 3,819,375
------------
23,354,318
------------
CONSUMER DURABLES -- 1.6%
107,030 Hertz Corp. (The), Class A.............. 5,364,878
*389,600 UNOVA, Inc.............................. 5,064,800
------------
10,429,678
------------
CONSUMER NON-DURABLES -- 1.1%
307,500 Herman Miller, Inc...................... 7,072,500
------------
CONSUMER SERVICES -- 1.6%
*346,000 DeVry, Inc.............................. 6,444,250
344,250 ServiceMaster Co. (The)................. 4,238,578
------------
10,682,828
------------
ELECTRONICS -- 13.3%
*161,960 Analog Devices, Inc..................... 15,062,280
272,200 Broadwing, Inc.......................... 10,037,375
*64,000 CheckFree Holding Corp.................. 6,688,000
*132,400 Flextronics International Ltd........... 6,090,400
130,300 Molex, Inc., Class A.................... 5,896,075
*52,200 PMC-Sierra, Inc......................... 8,368,312
*53,500 Sanmina Corp............................ 5,343,312
*188,200 Smith International, Inc................ 9,351,187
*154,900 Teradyne, Inc........................... 10,223,400
*124,100 Vitesse Semiconductor Corp.............. 6,507,493
104,600 White Electronic Designs Corp........... 5,681,087
------------
89,248,921
------------
ENERGY & SERVICES -- 3.8%
242,400 Anadarko Petroleum Corp................. 8,271,900
200,600 Suncor Energy, Inc...................... 8,375,050
272,600 Transocean Sedco Forex, Inc............. 9,183,212
------------
25,830,162
------------
<CAPTION>
MARKET
SHARES VALUE
- -------- ------------
<S> <C> <C>
FINANCIAL SERVICES -- 7.1%
384,800 ACE Ltd................................. $ 6,421,350
136,900 City National Corp...................... 4,509,143
346,500 Franklin Resources, Inc................. 11,109,656
138,696 Legg Mason, Inc......................... 5,027,730
100,900 Lincoln National Corp................... 4,036,000
253,600 MBIA, Inc............................... 13,393,250
90,681 Old Kent Financial Corp................. 3,207,840
------------
47,704,969
------------
FOOD, BEVERAGE & TOBACCO -- 0.8%
*195,600 Keebler Foods Co........................ 5,501,250
------------
HEALTH CARE -- 9.3%
247,100 Biomet, Inc............................. 9,884,000
*115,700 Forest Laboratories, Inc................ 7,108,318
*121,400 Gilead Sciences, Inc.................... 6,570,775
*50,400 Human Genome Sciences, Inc.............. 7,692,300
*128,400 Immunex Corp............................ 14,059,800
245,900 McKesson HBOC, Inc...................... 5,548,118
*52,300 Millennium Pharmaceuticals, Inc......... 6,380,600
43,050 PE Corp - PE Biosystems Group........... 5,179,453
------------
62,423,364
------------
INDUSTRIAL MATERIALS -- 4.0%
714,300 Abitibi-Consolidated, Inc............... 8,482,312
123,200 Eastman Chemical Co..................... 5,875,100
97,900 Phelps Dodge Corp....................... 6,571,537
*117,600 Sealed Air Corp......................... 6,093,150
------------
27,022,099
------------
MANUFACTURING -- 3.3%
117,600 Danaher Corp............................ 5,674,200
503,500 Mattel, Inc............................. 6,608,437
*250,600 Weatherford International, Inc.......... 10,008,337
------------
22,290,974
------------
MEDIA & SERVICES-- 9.2%
*584,500 American Tower Corp., Class A........... 17,863,781
*35,700 Echostar Communications Corp.,
Class A................................. 3,480,750
*97,600 Lamar Advertising Co., Class A.......... 5,910,900
141,500 Scripps (E.W.) Co. (The), Class A....... 6,340,968
*142,000 SFX Entertainment, Inc., Class A........ 5,138,625
*96,900 Teligent, Inc., Class A................. 5,983,575
*63,200 Univision Communications, Inc.,
Class A................................. 6,458,250
*21,000 Vignette Corp........................... 3,423,000
*111,600 Western Wireless Corp., Class A......... 7,449,300
------------
62,049,149
------------
RETAIL -- 6.6%
156,200 Circuit City Stores Group............... 7,038,762
578,675 Dollar General Corp..................... 13,164,856
*132,800 Dollar Tree Stores, Inc................. 6,432,500
234,200 Family Dollar Stores, Inc............... 3,820,387
162,570 Intimate Brands, Inc., Class A.......... 7,010,831
*164,100 Starbucks Corp.......................... 3,979,425
*188,000 Webvan Group, Inc....................... 3,102,000
------------
44,548,761
------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-41
<PAGE>
HARTFORD MIDCAP HLS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
SOFTWARE & SERVICES -- 11.2%
*19,400 Agile Software Corp..................... $ 4,214,346
*36,200 Ariba, Inc.............................. 6,420,975
*203,900 Cambridge Technology Partners,.......... 5,352,375
*363,710 Ceridan Corp............................ 7,842,496
*153,800 Covad Communications Group, Inc......... 8,603,187
858,000 Gartner Group, Inc., Class A............ 13,084,500
*139,500 Intuit, Inc............................. 8,361,281
*237,200 Parametric Technology Corp.............. 6,419,225
*169,500 Rational Software Corp.................. 8,326,687
*80,600 Siebel Systems, Inc..................... 6,770,400
------------
75,395,472
------------
TRANSPORTATION -- 2.0%
*120,500 Raynair Holdings PLC ADR................ 6,642,562
432,827 Southwest Airlines Co................... 7,006,387
------------
13,648,949
------------
UTILITIES -- 3.1%
*216,300 McLeodUSA, Inc., Class A................ 12,734,662
*167,100 RCN Corp................................ 8,104,350
------------
20,839,012
------------
Total common stocks..................... $640,717,188
============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<S> <C>
SHORT-TERM SECURITIES -- 2.7%
REPURCHASE AGREEMENT -- 2.7%
$18,268,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $18,271,926
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... $ 18,268,000
============
<CAPTION>
MARKET
VALUE
------------
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment in securities, at value (total cost
$552,618,415) -- see accompanying portfolio...... $658,985,188
Receivable for securities sold.................... 36,930,358
Receivable for Fund shares sold................... 17,423,747
Receivable for dividends and interest............. 283,909
Cash and other assets............................. 105
------------
Total assets...................................... 713,623,307
------------
LIABILITIES
Payable for securities purchased.................. $ 40,892,135
Other liabilities................................. 17,365
------------
Total liabilities................................. 40,909,500
------------
Net assets........................................ $672,713,807
============
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $0.10 per share;
1,000,000,000 shares authorized; 327,593,877
shares outstanding............................... $32,759,388
Capital surplus................................... 484,320,447
Accumulated undistributed net realized gain on
investments...................................... 49,267,199
Unrealized appreciation of investments............ 106,366,773
-----------
Net assets........................................ $672,713,807
============
Class IA
Net asset value per share ($672,677,564
DIVIDED BY 327,576,223 shares outstanding)
(800,000,000 shares authorized).................. $2.05
====
Class IB
Net asset value per share ($36,243 DIVIDED BY
17,654 shares outstanding) (200,000,000 shares
authorized)...................................... $2.05
====
</TABLE>
* Non-income producing during period.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-42
<PAGE>
HARTFORD GROWTH AND INCOME HLS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------- ------------
<S> <C>
COMMON STOCKS -- 97.9%
AEROSPACE & DEFENSE -- 2.9%
28,000 Honeywell International, Inc............ $ 1,615,250
64,400 United Technologies Corp................ 4,186,000
------------
5,801,250
------------
COMMUNICATIONS EQUIPMENT -- 8.8%
*27,600 3Com Corp............................... 1,297,200
*4,800 Broadcom Corp., Class A................. 1,307,400
*49,300 Cisco Systems, Inc...................... 5,281,262
*16,200 Global Crossing Ltd..................... 810,000
*4,800 JDS Uniphase Corp....................... 774,300
34,000 Lucent Technologies, Inc................ 2,543,625
30,600 Motorola, Inc........................... 4,505,850
*11,350 Sprint Corp. (PCS Group)................ 1,163,375
------------
17,683,012
------------
COMPUTERS & OFFICE EQUIPMENT -- 6.8%
*39,000 Adaptec, Inc............................ 1,945,125
*2,300 Dell Computer Corp...................... 117,300
*28,800 EMC Corp................................ 3,146,400
28,800 Hewlett-Packard Co...................... 3,281,400
48,300 International Business Machines Corp.... 5,216,400
------------
13,706,625
------------
CONSUMER NON-DURABLES -- 3.1%
60,900 Kimberly-Clark Corp..................... 3,973,725
21,700 Procter & Gamble Co. (The).............. 2,377,506
------------
6,351,231
------------
ELECTRONICS -- 5.8%
*16,200 Analog Devices, Inc..................... 1,506,600
38,300 General Electric Co..................... 5,926,925
41,700 Intel Corp.............................. 3,432,431
*9,800 Micron Technology, Inc.................. 761,950
------------
11,627,906
------------
ENERGY & SERVICES -- 4.0%
9,800 Atlantic Richfield Co................... 847,700
51,600 Conoco, Inc., Class B................... 1,283,550
11,500 Exxon Mobil Corp........................ 926,468
14,600 Kerr-McGee Corp......................... 905,200
34,000 Noble Affiliates, Inc................... 728,875
23,600 Royal Dutch Petroleum Co................ 1,426,325
16,200 Texaco, Inc............................. 879,862
79,500 Union Pacific Resources Group,.......... 1,013,625
------------
8,011,605
------------
FINANCIAL SERVICES -- 11.2%
11,500 American International Group, Inc....... 1,243,437
39,800 Associates First Capital Corp.,
Class A................................. 1,092,012
7,800 Chase Manhattan Corp. (The)............. 605,962
14,100 CIGNA Corp.............................. 1,135,931
106,850 Citigroup, Inc.......................... 5,936,853
24,700 Conseco, Inc............................ 441,512
58,100 Cullen/Frost Bankers, Inc............... 1,496,075
38,200 Edwards (A.G.) & Sons, Inc.............. 1,224,787
37,500 Fannie Mae.............................. 2,341,406
17,700 Lincoln National Corp................... 708,000
13,200 Merrill Lynch & Co., Inc................ 1,102,200
8,900 Morgan Stanley Dean Witter & Co......... 1,270,475
<CAPTION>
MARKET
SHARES VALUE
- -------- ------------
<S> <C>
FINANCIAL SERVICES -- (CONTINUED)
56,700 Pacific Century Financial Corp.......... $ 1,059,581
35,200 U.S. Bancorp............................ 838,200
26,000 UnionBanCal Corp........................ 1,025,375
16,200 Wachovia Corp........................... 1,101,600
------------
22,623,406
------------
FOOD, BEVERAGE & TOBACCO -- 4.3%
35,600 Anheuser-Busch Companies, Inc........... 2,523,150
16,200 Bestfoods............................... 851,512
13,200 Coca-Cola Co. (The)..................... 768,900
43,700 PepsiCo, Inc............................ 1,540,425
85,200 Philip Morris Co., Inc.................. 1,975,575
*27,500 Safeway, Inc............................ 977,968
------------
8,637,530
------------
HEALTH CARE -- 8.7%
44,000 Abbott Laboratories..................... 1,597,750
23,800 American Home Products Corp............. 938,612
17,700 Baxter International, Inc............... 1,111,781
*7,300 Biogen, Inc............................. 616,850
*26,200 Boston Scientific Corp.................. 573,125
19,100 Bristol-Myers Squibb Co................. 1,225,981
35,200 Cardinal Health, Inc.................... 1,685,200
*5,900 Genentech, Inc.......................... 793,550
*36,100 Genzyme Corp............................ 1,624,500
1 Genzyme Surgical Products............... 5
*12,300 Gilead Sciences, Inc.................... 665,737
*14,800 Immunex Corp............................ 1,620,600
26,300 Johnson & Johnson Co.................... 2,449,187
16,200 Merck & Co., Inc........................ 1,086,412
14,600 United HealthCare Corp.................. 775,625
9,200 Warner-Lambert Co....................... 753,825
------------
17,518,740
------------
INDUSTRIAL MATERIALS -- 5.3%
11,800 Alcoa, Inc.............................. 979,400
66,400 Engelhard Corp.......................... 1,253,300
*84,100 Freeport-McMoRan Copper & Gold, Inc.,
Class A................................. 1,561,106
*72,100 Grace (W.R.) & Co....................... 1,000,387
17,800 International Paper Co.................. 1,004,587
61,700 Monsanto Co............................. 2,198,062
20,700 Sigma-Aldrich Corp...................... 622,293
11,300 Temple-Inland, Inc...................... 745,093
19,700 Weyerhaeuser Co......................... 1,414,706
------------
10,778,934
------------
MANUFACTURING -- 4.3%
28,800 Corning, Inc............................ 3,713,400
57,777 Delphi Automotive Systems Corp.......... 909,987
8,900 Eaton Corp.............................. 646,362
9,800 Illinois Tool Works, Inc................ 662,112
16,200 Parker-Hannifin Corp.................... 831,262
50,000 Tyco International Ltd.................. 1,943,750
------------
8,706,873
------------
MEDIA & SERVICES -- 5.2%
*40,000 America Online, Inc..................... 3,017,500
*19,400 American Tower Corp., Class A........... 592,912
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-43
<PAGE>
HARTFORD GROWTH AND INCOME HLS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- -------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
*37,500 AT&T - Liberty Media Group, Class....... $ 2,128,147
*11,700 Echostar Communications Corp.,
Class A................................. 1,140,750
28,800 Gannett Co., Inc........................ 2,349,000
9,500 Knight-Ridder, Inc...................... 565,250
17,700 Scripps (E.W.) Co. (The), Class A....... 793,181
------------
10,586,740
------------
RETAIL -- 7.1%
48,500 Darden Restaurants, Inc................. 879,062
23,800 Dayton-Hudson Corp...................... 1,747,812
68,850 Home Depot, Inc. (The).................. 4,720,528
37,250 May Department Stores Co................ 1,201,312
86,100 Wal-Mart Stores, Inc.................... 5,951,662
------------
14,500,376
------------
SOFTWARE & SERVICES -- 9.8%
*20,700 BISYS Group, Inc. (The)................. 1,350,675
*14,600 BMC Software, Inc....................... 1,167,087
23,600 First Data Corp......................... 1,163,775
*101,500 Microsoft Corp.......................... 11,850,125
*29,300 Oracle Corp............................. 3,283,431
28,000 Sterling Software, Inc.................. 882,000
------------
19,697,093
------------
TRANSPORTATION -- 1.0%
*16,200 AMR Corp................................ 1,085,400
20,700 USFreightways Corp...................... 991,012
------------
2,076,412
------------
UTILITIES -- 9.3%
86,400 AT&T Corp............................... 4,384,800
23,600 Bell Atlantic Corp...................... 1,452,875
16,200 BellSouth Corp.......................... 758,362
44,000 El Paso Energy Corp..................... 1,707,750
25,000 Enron Corp.............................. 1,109,375
*68,850 MCI WorldCom, Inc....................... 3,653,353
55,986 SBC Communications, Inc................. 2,729,317
10,300 Sprint Corp. (FON Group)................ 693,318
67,700 Unicom Corp............................. 2,267,950
------------
18,757,100
------------
WASTE MANAGEMENT -- 0.3%
37,400 Waste Management, Inc................... 642,812
------------
Total common stocks..................... $197,707,645
============
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- ----------
<S> <C>
SHORT-TERM SECURITIES -- 3.4%
REPURCHASE AGREEMENT -- 3.4%
$6,795,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $6,796,460
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... $6,795,000
==========
<CAPTION>
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total common stocks
(cost $177,096,438).................... 97.9% $197,707,645
Total short-term securities
(cost $6,795,000)...................... 3.4 6,795,000
------ -----------
Total investment in securities (total
cost $183,891,438)..................... 101.3 204,502,645
Cash, receivables and other assets...... 0.5 949,956
Payable for securities purchased........ (1.8) (3,571,703)
Other liabilities....................... (0.0) (9,062)
------ -----------
Net assets.............................. 100.0% $201,871,836
====== ============
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.001 per share;
1,000,000,000 shares authorized; 141,007,287
shares outstanding............................... $ 141,007
Capital surplus................................... 177,927,749
Accumulated undistributed net investment income... 16,158
Accumulated undistributed net realized gain on
investments...................................... 3,116,766
Unrealized appreciation of investments............ 20,611,207
Unrealized appreciation of futures contracts ++... 58,949
-----------
Net assets........................................ $201,871,836
============
Class IA
Net asset value per share ($201,857,494
DIVIDED BY 140,997,256 shares outstanding)
(800,000,000 shares authorized).................. $1.43
====
Class IB
Net asset value per share ($14,342 DIVIDED BY
10,031 shares outstanding) (200,000,000 shares
authorized)...................................... $1.43
====
</TABLE>
* Non-income producing during period.
++ The Fund had 5 March 2000 Standard & Poor's 500 Futures contracts open as
of December 31, 1999. These contracts had a value of $1,855,250 as of
December 31, 1999 and were collateralized by $93,750 of cash.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-44
<PAGE>
HARTFORD HIGH YIELD HLS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- -----------
<S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.2%
FINANCIAL SERVICES -- 0.2%
$ 150,000 DLJ Commercial Mortgage Corp.,
Series 1998-CF1, Class B2
7.33% due 01/15/10.................... $ 129,021
===========
CORPORATE NOTES -- 89.5%
AEROSPACE & DEFENSE -- 0.8%
^^$550,000 Condor Systems, Inc.
11.875% due 05/01/09.................. $ 413,187
-----------
COMMUNICATIONS EQUIPMENT -- 1.7%
^^608,000 Global Crossing Ltd.
9.50% due 11/15/09.................... 598,880
200,000 Global Crossing Ltd.
9.625% due 05/15/08................... 200,000
100,000 Jones Intercable, Inc.
10.50% due 03/01/08................... 105,578
-----------
904,458
-----------
COMPUTERS & OFFICE EQUIPMENT -- 0.9%
423,000 UNISYS Corp.
12.00% due 04/15/03................... 451,552
-----------
CONSUMER DURABLES -- 1.4%
125,000 Simmons Co.
10.25% due 03/15/09................... 118,281
^^600,000 Tenneco Automotive, Inc.
11.625% due 10/15/09.................. 612,000
-----------
730,281
-----------
CONSUMER SERVICES -- 1.3%
300,000 Premier Parks, Inc.
9.75% due 06/15/07.................... 298,500
200,000 Regal Cinemas, Inc.
9.50% due 06/01/08.................... 151,000
250,000 Six Flags Entertainment Corp.
8.875% due 04/01/06................... 244,062
-----------
693,562
-----------
ELECTRONICS -- 0.2%
100,000 Advanced Micro Devices, Inc.
11.00% due 08/01/03................... 99,750
-----------
ENERGY & SERVICES -- 9.9%
200,000 Belco Oil & Gas Corp.
8.875% due 09/15/07................... 191,000
175,000 Clark Refining & Marketing, Inc.
8.375% due 11/15/07................... 108,500
250,000 Clark Refining & Marketing, Inc.
8.625% due 08/15/08................... 155,000
300,000 CMS Energy Corp.
6.75% due 01/15/04.................... 278,121
200,000 CODA Energy, Inc.
10.50% due 04/01/06................... 205,000
125,000 Cogentrix Energy, Inc.
8.75% due 10/15/08.................... 119,218
75,000 Cross Timbers Oil Co.
8.75% due 11/01/09.................... 71,625
50,000 Gulf Canada Resources Ltd.
8.375% due 11/15/05................... 48,500
100,000 Gulf Canada Resources Ltd.
9.625% due 07/01/05................... 102,500
400,000 Newpark Resources, Inc.
8.625% due 12/15/07................... 372,000
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- -----------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
ENERGY & SERVICES -- (CONTINUED)
$ 103,000 Nuevo Energy Co.
9.50% due 06/01/08.................... $ 102,227
200,000 Ocean Energy, Inc.
7.625% due 07/01/05................... 190,000
^^550,000 Plains Resources, Inc.
10.25% due 03/15/06................... 533,500
850,000 Pogo Producing Co.
10.375% due 02/15/09.................. 875,500
150,000 R&B Falcon Corp.
6.50% due 04/15/03.................... 137,250
100,000 R&B Falcon Corp.
7.375% due 04/15/18................... 77,500
550,000 R&B Falcon Corp.
11.375% due 03/15/09.................. 588,500
525,000 Seagull Energy Corp.
7.50% due 09/15/27.................... 431,359
100,000 Tesoro Petroleum Corp.
9.00% due 07/01/08.................... 95,500
400,000 Tuboscope, Inc.
7.50% due 02/15/08.................... 332,000
100,000 Vintage Petroleum, Inc.
9.00% due 12/15/05.................... 99,750
125,000 Vintage Petroleum, Inc.
9.75% due 06/30/09.................... 127,812
-----------
5,242,362
-----------
FINANCIAL SERVICES -- 0.8%
400,000 Sumitomo Bank International Finance N.V.
8.50% due 06/15/09.................... 406,644
-----------
FOOD, BEVERAGE & TOBACCO -- 1.2%
320,000 Canandaigua Brands, Inc.
8.625% due 08/01/06................... 318,800
200,000 Chiquita Brands International, Inc.
10.00% due 06/15/09................... 144,500
200,000 Chiquita Brands International, Inc.
10.25% due 11/01/06................... 145,000
-----------
608,300
-----------
FOOD, BEVERAGE & TOBACCO -- 1.5%
250,000 Golden State Holdings, Inc.
6.75% due 08/01/01.................... 240,959
150,000 Golden State Holdings, Inc.
7.125% due 08/01/05................... 133,932
250,000 Keebler Foods Co.
10.75% due 07/01/06................... 268,451
150,000 New World Pasta Co.
9.25% due 02/15/09.................... 135,000
-----------
778,342
-----------
HEALTH CARE -- 9.4%
400,000 Columbia/HCA Healthcare Corp.
7.05% due 12/01/27.................... 294,656
150,000 Columbia/HCA Healthcare Corp.
9.00% due 12/15/14.................... 144,734
1,200,000 Genesis Health Ventures, Inc.
9.25% due 10/01/06.................... 492,000
700,000 HealthSouth Corp.
6.875% due 06/15/05................... 612,364
460,000 HealthSouth Corp.
7.00% due 06/15/08.................... 378,443
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-45
<PAGE>
HARTFORD HIGH YIELD HLS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- -----------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
^^$1,200,000 Iasis Healthcare Corp.
13.00% due 10/15/09................... $ 1,236,000
550,000 Owens & Minor, Inc.
10.875% due 06/01/06.................. 566,500
200,000 Quorum Health Group, Inc.
8.75% due 11/01/05.................... 191,500
505,000 Tenet Healthcare Corp.
8.00% due 01/15/05.................... 483,537
100,000 Tenet Healthcare Corp.
8.625% due 12/01/03................... 98,705
500,000 Universal Health Services, Inc.
8.75% due 08/15/05.................... 491,790
-----------
4,990,229
-----------
HOME BUILDING -- 1.0%
150,000 Del Webb Corp.
9.375% due 05/01/09................... 137,062
100,000 Del Webb Corp.
10.25% due 02/15/10................... 97,250
100,000 MDC Holdings, Inc.
8.375% due 02/01/08................... 92,000
125,000 Toll Corp.
7.75% due 09/15/07.................... 114,531
100,000 Toll Corp.
8.75% due 11/15/06.................... 98,250
-----------
539,093
-----------
HOTELS & GAMING -- 3.0%
62,000 Harrah's Operating Co., Inc.
7.875% due 12/15/05................... 59,907
325,000 HMH Properties, Inc.
8.45% due 12/01/08.................... 300,625
95,000 La Quinta Inns, Inc.
7.25% due 03/15/04.................... 83,385
143,000 La Quinta Inns, Inc.
7.40% due 09/15/05.................... 120,466
355,000 Mandalau Resort Group
7.625% due 07/15/13................... 308,850
350,000 MGM Grand, Inc.
6.875% due 02/06/08................... 310,043
88,000 Park Place Entertainment Corp.
7.875% due 12/15/05................... 84,260
50,000 Starwood Hotels & Resorts
Worldwide, Inc.
6.75% due 11/15/05.................... 42,879
372,000 Starwood Hotels & Resorts
Worldwide, Inc.
7.375% due 11/15/15................... 284,482
-----------
1,594,897
-----------
INDUSTRIAL -- 16.1%
350,000 AK Steel Corp.
7.875% due 02/15/09................... 330,750
100,000 American Standard Co., Inc.
7.375% due 02/01/08................... 91,750
400,000 American Standard Co., Inc.
7.375% due 04/15/05................... 378,500
225,000 ARCO Chemical Co.
9.80% due 02/01/20.................... 225,067
300,000 Bethlehem Steel Corp.
7.625% due 08/01/04................... 278,040
375,000 Browning-Ferris Industries, Inc.
7.40% due 09/15/35.................... 265,271
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- -----------
<S> <C>
INDUSTRIAL -- (CONTINUED)
$ 200,000 Call-Net Enterprises, Inc.
8.00% due 08/15/08.................... $ 154,500
500,000 CSC Holdings, Inc.
8.125% due 07/15/09................... 499,375
25,000 CSC Holdings, Inc.
9.25% due 11/01/05.................... 25,625
125,000 Equistar Chemicals LP
8.75% due 02/15/09.................... 123,178
200,000 Federal-Mogul Corp.
7.375% due 01/15/06................... 183,251
200,000 Federal-Mogul Corp.
7.50% due 01/15/09.................... 178,152
275,000 Fisher Scientific International, Inc.
9.00% due 02/01/08.................... 263,656
138,000 Fisher Scientific International, Inc.
9.00% due 02/01/08.................... 132,307
150,000 General Chemical Industrial
Products, Inc.
10.625% due 05/01/09.................. 148,500
230,000 Georgia Gulf Corp.
7.625% due 11/15/05................... 211,080
^^60,000 Georgia Gulf Corp.
10.375% due 11/01/07.................. 62,625
^^500,000 Huntsman Corp.
9.50% due 07/01/07.................... 473,750
^^210,000 Huntsman ICI Chemicals LLC
10.125% due 07/01/09.................. 217,350
600,000 Inco Ltd.
9.60% due 06/15/22.................... 582,227
125,000 ISP Holdings, Inc.
9.00% due 10/15/03.................... 121,875
^^600,000 LTV Corp.
11.75% due 11/15/09................... 624,000
250,000 Lyondell Chemical Co.
9.625% due 05/01/07................... 255,625
200,000 Pioneer Natural Resources Co.
6.50% due 01/15/08.................... 169,712
850,000 Pioneer Natural Resources Co.
7.20% due 01/15/28.................... 644,232
600,000 Placer Dome, Inc.
7.125% due 06/15/07................... 550,459
800,000 Polaroid Corp.
11.50% due 02/15/06................... 792,000
375,000 Sequa Corp.
9.00% due 08/01/09.................... 362,812
180,000 WHX Corp.
10.50% due 04/15/05................... 175,950
-----------
8,521,619
-----------
MANUFACTURING -- 0.6%
75,000 Hayes Lemmerz International, Inc.
8.25% due 12/15/08.................... 69,000
250,000 Kaufman and Broad Home Corp.
9.625% due 11/15/06................... 252,500
-----------
321,500
-----------
MEDIA & SERVICES -- 6.4%
200,000 CF Cable TV, Inc.
11.625% due 02/15/05.................. 212,741
300,000 Comcast Corp.
10.25% due 10/15/01................... 313,500
200,000 Echostar Communications Corp.
9.375% due 02/01/09................... 201,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-46
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- -----------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
MEDIA & SERVICES -- (CONTINUED)
$ 500,000 Fox Kids Worldwide, Inc.
9.25% due 11/01/07.................... $ 461,250
500,000 Fox/Liberty Networks LLC
8.875% due 08/15/07................... 510,000
225,000 Hollinger International Publishing,
9.25% due 02/01/06.................... 222,750
S300,000 Liberty Media Group
7.875% due 07/15/09................... 298,640
250,000 PRIMEDIA, Inc.
10.25% due 06/01/04................... 260,000
600,000 Teligent, Inc.
11.50% due 12/01/07................... 579,000
100,000 Time Warner Telecom, Inc.
9.75% due 07/15/08.................... 103,000
225,000 World Color Press, Inc.
7.75% due 02/15/09.................... 213,750
-----------
3,375,631
-----------
PACKAGING & CONTAINERS -- 2.7%
175,000 Container Corp. of America
11.25% due 05/01/04................... 182,875
300,000 Domtar, Inc.
8.75% due 08/01/06.................... 306,000
200,000 Domtar, Inc.
9.50% due 08/01/16.................... 214,000
200,000 Owens-Illinois, Inc.
7.80% due 05/15/18.................... 171,643
250,000 Packaging Corp. of America
9.625% due 04/01/09................... 255,312
150,000 Stone Container Corp.
10.75% due 10/01/02................... 155,250
125,000 Stone Container Corp.
12.58% due 08/01/16................... 132,968
-----------
1,418,048
-----------
REAL ESTATE -- 1.1%
500,000 Crescent Real Estate Equities Co. (REIT)
7.00% due 09/15/02.................... 453,700
100,000 Trizec Finance Ltd.
10.875% due 10/15/05.................. 102,250
-----------
555,950
-----------
RETAIL -- 3.6%
225,000 Ahold Finance USA, Inc.
11.875% due 11/01/08.................. 226,125
600,000 Ames Department Stores, Inc.
10.00% due 04/15/06................... 588,000
325,000 Duane Reade, Inc.
9.25% due 02/15/08.................... 318,093
50,000 Kmart Corp.
7.75% due 10/01/12.................... 44,239
347,000 Kmart Corp.
12.50% due 03/01/05................... 390,798
300,000 Kmart Corp.
7.95% due 02/01/23.................... 260,703
100,000 Nine West Group, Inc.
8.375% due 08/15/05................... 98,852
-----------
1,926,810
-----------
SHIPBUILDING -- 0.9%
150,000 Newport News Shipbuilding, Inc.
8.625% due 12/01/06................... 148,125
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- -----------
<S> <C>
SHIPBUILDING -- (CONTINUED)
$ 350,000 Newport News Shipbuilding, Inc.
9.25% due 12/01/06.................... $ 349,125
-----------
497,250
-----------
TELECOMMUNICATIONS -- 16.6%
300,000 Adelphia Communications Corp.
8.375% due 02/01/08................... 278,250
148,000 Adelphia Communications Corp.
9.25% due 10/01/02.................... 147,260
250,000 Adelphia Communications Corp.
9.375% due 11/15/09................... 245,000
325,000 Adelphia Business Solutions, Inc.
12.00% due 11/01/07................... 346,125
500,000 Charter Communications Holdings LLC
8.625% due 04/01/09................... 461,875
150,000 Flag Ltd.
8.25% due 01/30/08.................... 138,000
1,050,000 Level 3 Communications, Inc.
0.00% due 12/01/08.................... 635,250
350,000 Loral Space & Communications Ltd.
9.50% due 01/15/06.................... 315,000
100,000 McLeodUSA, Inc.
8.125% due 02/15/09................... 93,250
100,000 McLeodUSA, Inc.
9.25% due 07/15/07.................... 99,875
100,000 McLeodUSA, Inc.
9.50% due 11/01/08.................... 101,250
250,000 Metromedia Fiber Network, Inc.
10.00% due 12/15/09................... 256,250
450,000 Metromedia Fiber Network, Inc.
10.00% due 11/15/08................... 460,125
^^1,000,000 Nextel Communications, Inc.
9.375% due 11/15/09................... 980,000
175,000 Nextel Communications, Inc.
9.75% due 08/15/04.................... 180,250
400,000 NEXTLINK Communications, Inc.
10.75% due 11/15/08................... 412,000
150,000 NEXTLINK Communications, Inc.
12.50% due 04/15/06................... 161,625
125,000 Price Communications Wireless,
9.125% due 12/15/06................... 126,562
^^1,055,000 PSINet, Inc.
10.50% due 12/01/06................... 1,062,944
600,000 RCN Corp.
10.125% due 01/15/10.................. 597,000
243,000 Rogers Cablesystems, Inc.
10.125% due 09/01/12.................. 256,365
150,000 Rogers Cantel, Inc.
9.375% due 06/01/08................... 156,000
50,000 Rogers Cantel, Inc.
9.75% due 06/01/16.................... 56,000
950,000 Telewest Communications PLC
11.25% due 11/01/08................... 1,030,750
^^150,000 Voicestream Wireless Corp.
10.375% due 11/15/09.................. 154,500
-----------
8,751,506
-----------
TEXTILE -- 1.6%
^^820,000 Levi Straus & Co.
7.00% due 11/01/06.................... 615,835
125,000 WestPoint Stevens, Inc.
7.875% due 06/15/08................... 111,875
</TABLE>
MF-47
<PAGE>
HARTFORD HIGH YIELD HLS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- -----------
<S> <C>
CORPORATE NOTES -- (CONTINUED)
TEXTILE -- (CONTINUED)
$ 100,000 WestPoint Stevens, Inc.
7.875% due 06/15/05................... $ 91,500
-----------
819,210
-----------
TRANSPORTATION -- 2.0%
150,000 AMR Corp.
10.00% due 03/07/01................... 154,436
150,000 Interpool, Inc.
7.35% due 08/01/07.................... 123,628
750,000 Teekay Shipping Corp.
8.32% due 02/01/08.................... 678,750
100,000 United Air Lines, Inc.
9.125% due 01/15/12................... 103,152
-----------
1,059,966
-----------
UTILITIES -- 3.2%
660,000 AES Corp. (The)
9.50% due 06/01/09.................... 665,775
100,000 AES Corp. (The)
10.25% due 07/15/06................... 101,500
100,000 Calpine Corp.
7.625% due 04/15/06................... 95,250
400,000 Calpine Corp.
7.875% due 04/01/08................... 383,000
200,000 Calpine Corp.
9.25% due 02/01/04.................... 201,500
100,000 Calpine Corp.
10.50% due 05/15/06................... 105,500
125,000 El Paso Electric Co.
9.40% due 05/01/11.................... 133,607
-----------
1,686,132
-----------
WASTE MANAGEMENT -- 1.6%
^^610,000 Allied Waste North American, Inc.
10.00% due 08/01/09................... 545,950
^^400,000 Waste Management, Inc.
7.375% due 05/15/29................... 315,041
-----------
860,991
-----------
Total corporate notes................... $47,247,270
===========
FOREIGN/YANKEE BONDS & NOTES -- 4.4%
FOREIGN CORPORATIONS -- 2.8%
600,000 British Sky Broadcasting Group PLC
8.20% due 07/15/09.................... $ 576,699
^^285,000 Kappa Behear BV
10.625% due 07/15/09.................. 301,366
600,000 Petroleos Mexicanos
9.50% due 09/15/27.................... 600,000
-----------
1,478,065
-----------
FOREIGN GOVERNMENTS -- 1.6%
250,000 Republic of Colombia
8.375% due 02/15/27................... 191,250
750,000 Republic of Ecuador
6.00% due 02/28/25.................... 284,512
250,000 Republic of Panama
8.875% due 09/30/27................... 210,000
FOREIGN/YANKEE BONDS & NOTES -- (CONTINUED)
FOREIGN GOVERNMENTS -- (CONTINUED)
$ 190,475 Republic of Venezuela
6.75% due 12/18/07.................... $ 148,818
-----------
834,580
-----------
Total foreign/yankee bonds & notes...... $ 2,312,645
===========
<CAPTION>
SHARES
- ---------------
<S> <C>
PREFERRED STOCKS -- 0.5%
UTILITIES -- 0.5%
12,000 Coastal Finance Corp. (TOPeR)........... $ 271,500
===========
<CAPTION>
PRINCIPAL
AMOUNT
- ---------------
<S> <C>
SHORT-TERM SECURITIES -- 4.1%
REPURCHASE AGREEMENT -- 4.1%
$ 2,181,000 Interest in $208,259,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.80% due 01/03/00;
maturity amount $2,181,509
(Collateralized by $211,642,000 U.S.
Treasury Notes 5.50% - 6.875% due
05/15/01 - 05/15/06).................... $ 2,181,000
===========
<CAPTION>
DIVERSIFICATION OF NET ASSETS:
<S> <C> <C>
Total collateralized mortgage
obligations (cost $140,698)............ 0.2% $ 129,021
Total corporate notes
(cost $48,453,926)..................... 89.5 47,247,270
Total foreign/yankee bonds & notes
(cost $2,419,202)...................... 4.4 2,312,645
Total preferred stocks
(cost $294,500)........................ 0.5 271,500
Total short-term securities
(cost $2,181,000)...................... 4.1 2,181,000
----- -----------
Total investment in securities (total
cost $53,489,326)...................... 98.7 52,141,436
Cash, receivables and other assets...... 2.5 1,300,384
Other liabilities....................... (1.2) (608,449)
----- -----------
Net assets.............................. 100.0% $52,833,371
===== ===========
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.001 per share;
1,000,000,000 shares authorized; 52,577,225
shares outstanding............................... $ 52,577
Capital surplus................................... 54,292,997
Accumulated undistributed net investment income... 47,698
Accumulated net realized loss on investments...... (211,421)
Unrealized depreciation of investments............ (1,347,890)
Unrealized depreciation of other assets and
liabilities in foreign currencies................ (590)
----------
Net assets........................................ $52,833,371
===========
Class IA
Net asset value per share ($52,731,083
DIVIDED BY 52,475,404 shares outstanding)
(800,000,000 shares authorized).................. $1.00
====
Class IB
Net asset value per share ($102,288 DIVIDED BY
101,821 shares outstanding) (200,000,000 shares
authorized)...................................... $1.00
====
</TABLE>
^^ Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1999, the market value of these securities amounted to $9,045,568 or 17.1%
of net assets.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-48
<PAGE>
HARTFORD GLOBAL LEADERS HLS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C>
COMMON STOCKS -- 92.2%
AUSTRALIA -- 0.9%
75,327 Rio Tinto PLC (Industrial Materials).... $ 1,612,795
------------
BRAZIL -- 1.6%
22,100 Telecomunicacoes Brasileiras S.A. ADR
(Utilities)............................. 2,839,850
------------
CHINA -- 1.2%
*336,000 China Telecom (Hong Kong) Ltd. (Media &
Services)............................... 2,100,666
------------
DENMARK -- 0.7%
16,900 Tele Danmark AS (Utilities)............. 1,249,687
------------
FINLAND -- 2.7%
18,520 Oy Nokia (Communications Equipment)..... 3,341,270
37,898 UPM-Kymmene Group (Energy & Services)... 1,519,408
------------
4,860,678
------------
FRANCE -- 7.2%
*24,081 Aventis S.A. (Health Care).............. 1,380,603
24,000 AXA (Financial Services)................ 3,329,243
11,300 Carrefour S.A. (Retail)................. 2,073,790
3,000 L'Oreal (Consumer Non-Durables)......... 2,394,998
9,000 Societe Generale S.A. (Financial
Services)............................... 2,083,783
12,910 Total Fina S.A., B Shares (Energy &
Services)............................... 1,714,511
------------
12,976,928
------------
GERMANY -- 6.7%
45,200 BASF AG (Industrial Materials).......... 2,351,277
13,647 Deutsche Bank AG (Financial Services)... 1,152,405
33,900 Deutsche Telekom AG (Utilities)......... 2,373,363
14,600 Mannesmann AG (Media & Services)........ 3,517,916
20,500 Siemens AG (Communications Equipment)... 2,609,490
------------
12,004,451
------------
ITALY -- 1.1%
188,400 Telecom Italia Mobile S.p.A. (Media &
Services)............................... 2,094,163
------------
JAPAN -- 9.7%
19,000 Hoya Corp. (Health Care)................ 1,494,308
12,000 Ito-Yokado Co., Ltd. (Retail)........... 1,301,352
86,000 Minebea Co., Ltd. (Electronics)......... 1,472,892
116,000 Nikko Securities Co., Ltd. (Financial
Services)............................... 1,465,370
54 NTT Mobile Communication Network, Inc.
(Media & Services)...................... 2,073,371
58,000 Omron Corp. (Communications Equipment).. 1,334,472
4,300 Softbank Corp. (Software & Services).... 4,108,640
14,360 Sony Corp. (Media & Services)........... 4,250,968
------------
17,501,373
------------
MEXICO -- 0.9%
22,400 Grupo Televisa S.A. (Media &
Services)............................... 1,528,800
------------
NETHERLANDS -- 4.6%
32,400 ING Groep N.V. (Financial Services)..... 1,946,524
16,022 Koninklijke Philips Electronics N.V.
(Electronics)........................... 2,167,946
28,500 Royal Dutch Petroleum Co. (Energy &
Services)............................... 1,738,215
NETHERLANDS -- (CONTINUED)
*19,400 United Pan-Europe Communications N.V.
ADR (Media & Services).................. $ 2,473,500
------------
8,326,185
------------
SOUTH KOREA -- 1.3%
19,600 Samsung Electronics GDR (Electronics)... 2,349,550
------------
SPAIN -- 1.5%
111,800 Telefonica S.A. (Utilities)............. 2,779,019
------------
SWEDEN -- 1.1%
30,050 Telefonaktiebolaget LM Ericsson,
Class A (Communications Equipment)...... 1,924,065
------------
SWITZERLAND -- 0.8%
120 Roche Holdings, Inc. (Health Care)...... 1,416,851
------------
TAIWAN -- 1.3%
*50,100 Taiwan Semiconductor Manufacturing Co.,
Ltd. ADR (Electronics).................. 2,254,500
------------
UNITED KINGDOM -- 6.0%
270,020 BP Amoco PLC (Energy & Services)........ 2,713,416
*29,800 China.com Corp. (Media & Services)...... 2,343,025
*46,900 COLT Telecom Group PLC (Utilities)...... 2,415,059
101,500 Prudential Corp. PLC (Financial
Services)............................... 1,987,588
830 Psion PLC (Computers & Office
Equipment).............................. 34,619
409,600 Smith & Nephew PLC (Health Care)........ 1,386,319
------------
10,880,026
------------
UNITED STATES OF AMERICA -- 42.9%
*26,100 3Com Corp. (Communications Equipment)... 1,226,700
*17,200 America Online, Inc. (Media &
Services)............................... 1,297,525
21,600 American Express Co. (Financial
Services)............................... 3,591,000
13,212 American International Group, Inc.
(Financial Services).................... 1,428,547
*25,800 Amgen, Inc. (Health Care)............... 1,549,612
*27,400 AMR Corp. (Transportation).............. 1,835,800
*52,000 AT&T - Liberty Media Group, Class A
(Media & Services)...................... 2,951,000
*2,400 Broadcom Corp., Class A (Communications
Equipment).............................. 653,700
*17,540 Cisco Systems, Inc. (Communications
Equipment).............................. 1,878,972
42,185 Citigroup, Inc. (Financial Services).... 2,343,904
*6,600 CMGI, Inc. (Media & Services)........... 1,827,375
46,700 Colgate-Palmolive Co. (Consumer Non-
Durables)............................... 3,035,500
*15,900 Computer Sciences Corp. (Software &
Services)............................... 1,504,537
15,500 Corning, Inc. (Manufacturing)........... 1,998,531
*19,200 Echostar Communications Corp., Class A 1,872,000
(Media & Services)......................
22,100 Exxon Mobil Corp. (Energy & Services)... 1,780,431
22,200 Gannett Co., Inc. (Media & Services).... 1,810,687
25,660 General Electric Co. (Electronics)...... 3,970,885
12,500 Goldman Sachs Group, Inc. (Financial
Services)............................... 1,177,343
29,100 Home Depot, Inc. (The) (Retail)......... 1,995,168
*28,900 Immunex Corp. (Health Care)............. 3,164,550
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-49
<PAGE>
HARTFORD GLOBAL LEADERS HLS FUND
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
UNITED STATES OF AMERICA -- (CONTINUED)
39,480 Intel Corp. (Electronics)............... $ 3,249,697
13,640 International Business Machines Corp.
(Computers & Office Equipment).......... 1,473,120
27,700 Kimberly-Clark Corp. (Consumer Non-
Durables)............................... 1,807,425
23,980 Marsh & McLennan Cos., Inc. (Financial
Services)............................... 2,294,586
48,180 McDonald's Corp. (Retail)............... 1,942,256
41,200 McGraw-Hill Cos., Inc. (The) (Media &
Services)............................... 2,538,950
*19,043 MCI WorldCom, Inc. (Utilities).......... 1,010,442
*41,400 McLeodUSA, Inc., Class A (Utilities).... 2,437,425
*18,500 Microsoft Corp. (Software & Services)... 2,159,875
10,200 Morgan Stanley Dean Witter & Co.
(Financial Services).................... 1,456,050
*9,700 NTL, Inc. (Utilities)................... 1,210,075
*22,400 Oracle Corp. (Software & Services)...... 2,510,200
29,700 Phelps Dodge Corp. (Industrial
Materials).............................. 1,993,612
33,240 Wal-Mart Stores, Inc. (Retail).......... 2,297,715
66,400 Walt Disney Co. (The) (Media &
Services)............................... 1,942,200
16,700 Warner-Lambert Co. (Health Care)........ 1,368,356
34,900 Weyerhaeuser Co. (Industrial
Materials).............................. 2,506,285
------------
77,092,036
------------
Total common stocks..................... $165,791,623
============
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<S> <C>
SHORT-TERM SECURITIES -- 8.8%
REPURCHASE AGREEMENT -- 8.8%
$15,777,000 Interest in $1,811,499,000 joint
repurchase agreement dated 12/31/99 with
State Street Bank 2.578% due 01/03/00;
maturity amount $15,780,391
(Collateralized by $728,431,000 U.S.
Treasury Notes 4.875% - 8.00% due
02/15/01 - 05/15/07, $791,479,000 U.S.
Treasury Bonds 7.625% - 8.875% due
02/15/07 - 08/15/21, $465,787,000 U.S.
Treasury Strips 0.00% due 05/15/10 -
05/15/20)............................... $15,777,000
===========
<CAPTION>
MARKET
VALUE
-----------
<S> <C> <C>
DIVERSIFICATION OF NET ASSETS:
Total common stocks (cost
$131,160,002).......................... 92.2% $165,791,623
Total short-term securities (cost
$15,777,000)........................... 8.8 15,777,000
----- -----------
Total investment in securities (total
cost $146,937,002)..................... 101.0 181,568,623
Cash, receivables and other assets...... 0.8 1,456,704
Payable for securities purchased........ (1.8) (3,263,843)
Other liabilities....................... (0.0) (17,565)
----- -----------
Net assets.............................. 100.0% $179,743,919
===== ===========
<CAPTION>
SUMMARY OF SHAREHOLDERS' EQUITY:
<S> <C>
Capital stock, par value $0.001 per share;
1,000,000,000 shares authorized; 93,964,107
shares outstanding............................... $ 93,964
Capital surplus................................... 142,828,464
Accumulated undistributed net investment income... (8,364)
Accumulated undistributed net realized gain on
investments...................................... 2,205,336
Unrealized appreciation of investments............ 34,631,621
Unrealized depreciation of forward foreign
currency contracts (See Note 2)[INF SYM]......... (12,026)
Unrealized appreciation of other assets and
liabilities in foreign currencies................ 4,924
------------
Net assets........................................ $179,743,919
============
Class IA
Net asset value per share ($179,674,904
DIVIDED BY 93,928,014 shares outstanding)
(800,000,000 shares authorized).................. $1.91
====
Class IB
Net asset value per share ($69,015 DIVIDED BY
36,093 shares outstanding) (200,000,000 shares
authorized)...................................... $1.91
====
<CAPTION>
DIVERSIFICATION BY INDUSTRY:
<S> <C> <C>
Communication Equipment................. 7.2% $ 12,968,669
Computer & Office Equipment............. 0.8 1,507,739
Consumer Non-Durables................... 4.0 7,237,923
Electronics............................. 8.6 15,465,470
Energy & Services....................... 5.3 9,465,981
Financial Services...................... 13.5 24,256,343
Health Care............................. 6.5 11,760,599
Industrial Materials.................... 4.7 8,463,969
Manufacturing........................... 1.1 1,998,531
Media & Services........................ 19.4 34,622,146
Retail.................................. 5.3 9,610,281
Software & Services..................... 5.7 10,283,252
Transportation.......................... 1.0 1,835,800
Utilities............................... 9.1 16,314,920
----- ------------
Total common stocks..................... 92.2% $165,791,623
===== ============
</TABLE>
* Non-income producing during period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-50
<PAGE>
[INF SYM]FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNREALIZED
TOTAL CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ ---------- --------- --------------
<S> <C> <C> <C> <C>
British Pounds (Buy) $1,922,417 $1,929,335 01/05/00 $ (6,918)
British Pounds (Buy) 35,007 35,132 01/10/00 (125)
Euro (Buy) 431,009 437,373 01/31/00 (6,364)
Japanese Yen (Sell) 430,269 431,133 01/04/00 864
Japanese Yen (Sell) 119,684 120,201 01/05/00 517
--------
$(12,026)
========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-51
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
HARTFORD HARTFORD
BOND STOCK
HLS FUND, INC. HLS FUND, INC.
-------------- --------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ -- $ 92,635,706
Interest.............................. 63,557,436 13,941,806
Less foreign tax withheld............. -- (1,812,316)
------------ --------------
Total investment income, net........ 63,557,436 104,765,196
------------ --------------
EXPENSES:
Investment advisory fees.............. 2,830,655 20,925,628
Administrative services fees.......... 1,922,419 16,390,499
Accounting services................... 144,310 1,230,318
Custodian fees gross.................. 29,899 33,163
Custodian fees expense offset......... (6,861) (10,736)
Board of Directors fees............... 3,013 25,616
Distribution fees -- Class IB......... 24,742 67,375
Distribution fees -- Class IB
waived............................... (6,949) (18,934)
Other expenses........................ 95,981 663,971
------------ --------------
Total expenses, net................. 5,037,209 39,306,900
Less advisory fees waived by HL
Advisors............................. -- --
------------ --------------
Net expenses........................ 5,037,209 39,306,900
------------ --------------
Net investment income................. 58,520,227 65,458,296
------------ --------------
NET REALIZED AND UNREALIZED (LOSS) GAIN
ON INVESTMENTS:
Net realized (loss) gain on security
transactions......................... (18,936,903) 1,025,416,706
Net realized gain on futures
contracts............................ -- --
Net realized gain on forward foreign
currency contracts................... -- --
Net realized gain (loss) on foreign
currency transactions................ 20 (78)
Net unrealized (depreciation)
appreciation of investments.......... (58,317,728) 408,912,415
Net unrealized (depreciation)
appreciation of futures contracts.... (231,406) --
Net unrealized (depreciation)
appreciation of forward foreign
currency contracts................... -- --
Net unrealized (depreciation) on
translation of other assets and
liabilities in foreign currencies.... -- --
------------ --------------
Net realized and unrealized (loss)
gain on investments.................. (77,486,017) 1,434,329,043
------------ --------------
Net (decrease) increase in net assets
resulting from operations............ $(18,965,790) $1,499,787,339
============ ==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-52
<PAGE>
<TABLE>
<CAPTION>
HARTFORD HARTFORD
HARTFORD HARTFORD CAPITAL MORTGAGE HARTFORD
MONEY MARKET ADVISERS APPRECIATION SECURITIES INDEX
HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC.
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ -- $ 91,076,306 $ 58,902,973 $ -- $ 27,683,926
Interest.............................. 56,896,327 316,160,946 14,858,105 22,884,030 2,431,199
Less foreign tax withheld............. -- (1,649,333) (1,307,721) -- (270,369)
----------- -------------- -------------- ------------ ------------
Total investment income, net........ 56,896,327 405,587,919 72,453,357 22,884,030 29,844,756
----------- -------------- -------------- ------------ ------------
EXPENSES:
Investment advisory fees.............. 2,688,668 56,203,516 28,279,376 884,063 4,356,861
Administrative services fees.......... 2,150,934 26,036,945 12,896,177 707,251 4,356,861
Accounting services................... 161,445 1,954,460 968,048 53,094 327,031
Custodian fees gross.................. 11,202 83,489 179,265 35,585 28,854
Custodian fees expense offset......... (5,700) (28,124) (23,222) (5,420) (7,731)
Board of Directors fees............... 3,391 40,853 19,966 1,112 6,779
Distribution fees -- Class IB......... 14,142 205,561 30,446 4 4
Distribution fees -- Class IB
waived............................... (3,970) (57,751) (8,557) (1) (1)
Other expenses........................ 78,586 1,027,433 521,305 34,400 196,753
----------- -------------- -------------- ------------ ------------
Total expenses, net................. 5,098,698 85,466,382 42,862,804 1,710,088 9,265,411
Less advisory fees waived by HL
Advisors............................. -- -- -- -- --
----------- -------------- -------------- ------------ ------------
Net expenses........................ 5,098,698 85,466,382 42,862,804 1,710,088 9,265,411
----------- -------------- -------------- ------------ ------------
Net investment income................. 51,797,629 320,121,537 29,590,553 21,173,942 20,579,345
----------- -------------- -------------- ------------ ------------
NET REALIZED AND UNREALIZED (LOSS) GAIN
ON INVESTMENTS:
Net realized (loss) gain on security
transactions......................... 22,249 1,204,132,617 1,276,210,082 (6,343,967) 21,210,475
Net realized gain on futures
contracts............................ -- -- -- -- 5,155,672
Net realized gain on forward foreign
currency contracts................... -- -- 178,648 -- --
Net realized gain (loss) on foreign
currency transactions................ -- (75) (716,699) -- (9)
Net unrealized (depreciation)
appreciation of investments.......... -- (201,833,722) 844,010,205 (9,624,058) 369,072,780
Net unrealized (depreciation)
appreciation of futures contracts.... -- -- -- -- 227,264
Net unrealized (depreciation)
appreciation of forward foreign
currency contracts................... -- -- (946,728) -- --
Net unrealized (depreciation) on
translation of other assets and
liabilities in foreign currencies.... -- -- (47,160) -- --
----------- -------------- -------------- ------------ ------------
Net realized and unrealized (loss)
gain on investments.................. 22,249 1,002,298,820 2,118,688,348 (15,968,025) 395,666,182
----------- -------------- -------------- ------------ ------------
Net (decrease) increase in net assets
resulting from operations............ $51,819,878 $1,322,420,357 $2,148,278,901 $ 5,205,917 $416,245,527
=========== ============== ============== ============ ============
<CAPTION>
HARTFORD
INTERNATIONAL
OPPORTUNITIES
HLS FUND, INC.
--------------
<S> <C>
INVESTMENT INCOME:
Dividends............................. $ 24,852,312
Interest.............................. 3,423,411
Less foreign tax withheld............. (2,788,439)
------------
Total investment income, net........ 25,487,284
------------
EXPENSES:
Investment advisory fees.............. 6,344,130
Administrative services fees.......... 2,573,708
Accounting services................... 193,203
Custodian fees gross.................. 786,413
Custodian fees expense offset......... (19,705)
Board of Directors fees............... 4,002
Distribution fees -- Class IB......... 3,524
Distribution fees -- Class IB
waived............................... (992)
Other expenses........................ 131,091
------------
Total expenses, net................. 10,015,374
Less advisory fees waived by HL
Advisors............................. --
------------
Net expenses........................ 10,015,374
------------
Net investment income................. 15,471,910
------------
NET REALIZED AND UNREALIZED (LOSS) GAIN
ON INVESTMENTS:
Net realized (loss) gain on security
transactions......................... 202,135,069
Net realized gain on futures
contracts............................ 386,171
Net realized gain on forward foreign
currency contracts................... 2,607,172
Net realized gain (loss) on foreign
currency transactions................ (4,682,604)
Net unrealized (depreciation)
appreciation of investments.......... 248,437,856
Net unrealized (depreciation)
appreciation of futures contracts.... 103,692
Net unrealized (depreciation)
appreciation of forward foreign
currency contracts................... 1,096,967
Net unrealized (depreciation) on
translation of other assets and
liabilities in foreign currencies.... (305,101)
------------
Net realized and unrealized (loss)
gain on investments.................. 449,779,222
------------
Net (decrease) increase in net assets
resulting from operations............ $465,251,132
============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-53
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
HARTFORD HARTFORD
DIVIDEND AND INTERNATIONAL
GROWTH ADVISERS
HLS FUND, INC. HLS FUND, INC.
-------------- --------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ 68,096,920 $ 3,565,590
Interest.............................. 4,777,452 7,998,174
Less foreign tax withheld............. (556,207) (440,549)
------------ -----------
Total investment income, net........ 72,318,165 11,123,215
------------ -----------
EXPENSES:
Investment advisory fees.............. 14,387,861 1,821,043
Administrative services fees.......... 6,358,994 646,111
Accounting services................... 477,351 48,500
Custodian fees gross.................. 25,457 177,881
Custodian fees expense offset......... (15,825) (4,143)
Board of Directors fees............... 9,951 1,004
Distribution fees -- Class IB......... 32,696 4
Distribution fees -- Class IB
waived............................... (9,173) (1)
Other expenses........................ 243,636 52,464
------------ -----------
Total expenses, net................. 21,510,948 2,742,863
Less advisory fees waived by HL
Advisors............................. -- --
------------ -----------
Net expenses........................ 21,510,948 2,742,863
------------ -----------
Net investment income (loss).......... 50,807,217 8,380,352
------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on security
transactions......................... 276,144,260 24,323,269
Net realized gain on futures
contracts............................ -- 2,413,288
Net realized (loss) gain on forward
foreign currency contracts........... (234,355) 2,175,431
Net realized loss on option
contracts............................ (116,384) --
Net realized gain (loss) on foreign
currency transactions................ 172,098 (715,483)
Net unrealized (depreciation)
appreciation of investments.......... (163,123,794) 32,125,096
Net unrealized appreciation of futures
contracts............................ -- 924,546
Net unrealized appreciation
(depreciation) of forward foreign
currency contracts................... -- 1,738,196
Net unrealized appreciation
(depreciation) on translation of
other assets and liabilities in
foreign currencies................... 8,484 24,368
Net unrealized appreciation of option
contracts............................ 237,504 --
------------ -----------
Net realized and unrealized gain
(loss) on investments................ 113,087,813 63,008,711
------------ -----------
Net increase in net assets resulting
from operations...................... $163,895,030 $71,389,063
============ ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-54
<PAGE>
<TABLE>
<CAPTION>
HARTFORD HARTFORD
SMALL HARTFORD GROWTH AND HARTFORD HARTFORD
COMPANY MIDCAP INCOME HIGH YIELD GLOBAL LEADERS
HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND HLS FUND
-------------- -------------- ----------- ---------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ 623,297 $ 1,506,140 $1,002,951 $ 25,125 $ 573,176
Interest.............................. 801,153 482,231 274,535 3,244,240 241,827
Less foreign tax withheld............. -- (21,233) (1,787) -- (49,836)
------------ ------------ ----------- ---------- -----------
Total investment income, net........ 1,424,450 1,967,138 1,275,699 3,269,365 765,167
------------ ------------ ----------- ---------- -----------
EXPENSES:
Investment advisory fees.............. 2,400,827 1,712,667 504,291 207,216 315,278
Administrative services fees.......... 870,967 610,859 174,191 71,775 108,269
Accounting services................... 65,372 45,836 13,068 5,385 8,121
Custodian fees gross.................. 16,593 11,541 13,738 9,016 52,049
Custodian fees expense offset......... (6,812) (1,721) (315) (2,554) (298)
Board of Directors fees............... 1,626 909 256 112 151
Distribution fees -- Class IB......... 9,728 4 31 265 112
Distribution fees -- Class IB
waived............................... (2,746) (1) (9) (74) (31)
Other expenses........................ 45,496 40,514 14,290 7,944 12,473
------------ ------------ ----------- ---------- -----------
Total expenses, net................. 3,401,051 2,420,608 719,541 299,085 496,124
Less advisory fees waived by HL
Advisors............................. -- -- -- (40,569) (24,763)
------------ ------------ ----------- ---------- -----------
Net expenses........................ 3,401,051 2,420,608 719,541 258,516 471,361
------------ ------------ ----------- ---------- -----------
Net investment income (loss).......... (1,976,601) (453,470) 556,158 3,010,849 293,806
------------ ------------ ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on security
transactions......................... 147,233,203 74,257,442 3,509,075 (209,302) 2,993,654
Net realized gain on futures
contracts............................ -- -- 933,125 -- --
Net realized (loss) gain on forward
foreign currency contracts........... (7,873) -- -- 1,883 113,343
Net realized loss on option
contracts............................ -- -- -- -- --
Net realized gain (loss) on foreign
currency transactions................ 8,039 (589) -- (34) (186,098)
Net unrealized (depreciation)
appreciation of investments.......... 121,502,223 87,291,822 17,323,513 (1,511,886) 33,761,524
Net unrealized appreciation of futures
contracts............................ -- -- 45,384 -- --
Net unrealized appreciation
(depreciation) of forward foreign
currency contracts................... -- -- -- -- (12,026)
Net unrealized appreciation
(depreciation) on translation of
other assets and liabilities in
foreign currencies................... (157) -- -- (590) 4,917
Net unrealized appreciation of option
contracts............................ -- -- -- -- --
------------ ------------ ----------- ---------- -----------
Net realized and unrealized gain
(loss) on investments................ 268,735,435 161,548,675 21,811,097 (1,719,929) 36,675,314
------------ ------------ ----------- ---------- -----------
Net increase in net assets resulting
from operations...................... $266,758,834 $161,095,205 $22,367,255 $1,290,920 $36,969,120
============ ============ =========== ========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-55
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
HARTFORD HARTFORD
BOND STOCK
HLS FUND, INC. HLS FUND, INC.
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment
income................ $ 58,520,227 $ 65,458,296
Net realized (loss)
gain.................. (18,936,883) 1,025,416,628
Net unrealized
(depreciation)
appreciation of
investments........... (58,549,134) 408,912,415
------------ --------------
Net (decrease) increase
in net assets
resulting from
operations............ (18,965,790) 1,499,787,339
------------ --------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. (53,765,163) (64,230,258)
Class IB............. (835,869) (285,493)
From realized gain on
investments
Class IA............. (6,264,409) (619,031,959)
Class IB............. (48,164) (6,820,829)
------------ --------------
Total
distributions....... (60,913,605) (690,368,539)
------------ --------------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 155,218,570 1,405,976,600
Class IB............. 11,573,774 39,214,926
------------ --------------
Net increase
(decrease) from
capital share
transactions...... 166,792,344 1,445,191,526
------------ --------------
Net increase
(decrease) in net
assets............ 86,912,949 2,254,610,326
NET ASSETS:
Beginning of year...... 907,765,419 7,193,213,170
------------ --------------
End of year............ $994,678,368 $9,447,823,496
============ ==============
Accumulated
undistributed net
investment income..... $ 4,520,247 $ 2,443,386
============ ==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-56
<PAGE>
<TABLE>
<CAPTION>
HARTFORD HARTFORD HARTFORD
HARTFORD HARTFORD CAPITAL MORTGAGE HARTFORD INTERNATIONAL
MONEY MARKET ADVISERS APPRECIATION SECURITIES INDEX OPPORTUNITIES
HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC.
-------------- --------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 51,797,629 $ 320,121,537 $ 29,590,553 $ 21,173,942 $ 20,579,345 $ 15,471,910
Net realized (loss)
gain.................. 22,249 1,204,132,542 1,275,672,031 (6,343,967) 26,366,138 200,445,808
Net unrealized
(depreciation)
appreciation of
investments........... -- (201,833,722) 843,016,317 (9,624,058) 369,300,044 249,333,414
-------------- --------------- -------------- ------------ -------------- --------------
Net (decrease) increase
in net assets
resulting from
operations............ 51,819,878 1,322,420,357 2,148,278,901 5,205,917 416,245,527 465,251,132
-------------- --------------- -------------- ------------ -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. (51,531,940) (294,114,825) (24,013,346) (18,999,447) (23,997,823) (15,254,141)
Class IB............. (265,689) (2,712,215) (47,938) (553) (82) (26,724)
From realized gain on
investments
Class IA............. (22,169) (985,224,028) (373,170,325) -- (32,133,595) --
Class IB............. (80) (10,509,514) (2,166,173) -- (9) --
-------------- --------------- -------------- ------------ -------------- --------------
Total
distributions....... (51,819,878) (1,292,560,582) (399,397,782) (19,000,000) (56,131,509) (15,280,865)
-------------- --------------- -------------- ------------ -------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 384,949,803 2,243,273,127 409,058,426 (3,273,436) 375,205,423 (71,217,452)
Class IB............. 6,624,881 106,955,218 14,635,220 10,000 10,000 1,929,411
-------------- --------------- -------------- ------------ -------------- --------------
Net increase
(decrease) from
capital share
transactions...... 391,574,684 2,350,228,345 423,693,646 (3,263,436) 375,215,423 (69,288,041)
-------------- --------------- -------------- ------------ -------------- --------------
Net increase
(decrease) in net
assets............ 391,574,684 2,380,088,120 2,172,574,765 (17,057,519) 735,329,441 380,682,226
NET ASSETS:
Beginning of year...... 874,665,050 11,840,125,134 5,813,421,612 356,834,333 1,846,117,220 1,197,356,582
-------------- --------------- -------------- ------------ -------------- --------------
End of year............ $1,266,239,734 $14,220,213,254 $7,985,996,377 $339,776,814 $2,581,446,661 $1,578,038,808
============== =============== ============== ============ ============== ==============
Accumulated
undistributed net
investment income..... -- $ 30,238,618 $ 4,106,096 $ 2,173,942 $ 279,337 $ 6,910,396
============== =============== ============== ============ ============== ==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-57
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
HARTFORD HARTFORD
DIVIDEND AND INTERNATIONAL
GROWTH ADVISERS
HLS FUND, INC. HLS FUND, INC.
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 50,807,217 $ 8,380,352
Net realized gain
(loss)................ 275,965,619 28,196,505
Net unrealized
(depreciation)
appreciation of
investments........... (162,877,806) 34,812,206
-------------- ------------
Net increase in net
assets resulting from
operations............ 163,895,030 71,389,063
-------------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. (51,584,635) (6,999,809)
Class IB............. (240,626) (191)
From realized gain on
investments
Class IA............. (120,723,195) --
Class IB............. (820,318) --
-------------- ------------
Total
distributions....... (173,368,774) (7,000,000)
-------------- ------------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 185,464,195 45,906,614
Class IB............. 7,935,212 10,000
-------------- ------------
Net increase from
capital share
transactions...... 193,399,407 45,916,614
-------------- ------------
Net increase in
net assets........ 183,925,663 110,305,677
NET ASSETS:
Beginning of year...... 3,039,893,797 285,852,529
-------------- ------------
End of year............ $3,223,819,460 $396,158,206
============== ============
Accumulated
undistributed net
investment income..... $ 999,932 $ 3,452,773
============== ============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-58
<PAGE>
<TABLE>
<CAPTION>
HARTFORD HARTFORD
SMALL HARTFORD GROWTH AND HARTFORD HARTFORD
COMPANY MIDCAP INCOME HIGH YIELD GLOBAL LEADERS
HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC.
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ (1,976,601) $ (453,470) $ 556,158 $ 3,010,849 $ 293,806
Net realized gain
(loss)................ 147,233,369 74,256,853 4,442,200 (207,453) 2,920,899
Net unrealized
(depreciation)
appreciation of
investments........... 121,502,066 87,291,822 17,368,897 (1,512,476) 33,754,415
------------ ------------ ------------ ----------- ------------
Net increase in net
assets resulting from
operations............ 266,758,834 161,095,205 22,367,255 1,290,920 36,969,120
------------ ------------ ------------ ----------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. -- -- (540,261) (2,960,585) (230,000)
Class IB............. -- -- (17) (5,858) --
From realized gain on
investments
Class IA............. (986,389) (27,865,705) (1,243,909) (6,008) (835,856)
Class IB............. (13,611) (445) (91) (28) (435)
------------ ------------ ------------ ----------- ------------
Total
distributions....... (1,000,000) (27,866,150) (1,784,278) (2,972,479) (1,066,291)
------------ ------------ ------------ ----------- ------------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 143,679,160 395,957,351 155,965,699 39,928,946 138,030,655
Class IB............. 6,634,327 33,758 35 1,851 10,990
------------ ------------ ------------ ----------- ------------
Net increase from
capital share
transactions...... 150,313,487 395,991,109 155,965,734 39,930,797 138,041,645
------------ ------------ ------------ ----------- ------------
Net increase in
net assets........ 416,072,321 529,220,164 176,548,711 38,249,238 173,944,474
NET ASSETS:
Beginning of year...... 351,429,912 143,493,643 25,323,125 14,584,133 5,799,445
------------ ------------ ------------ ----------- ------------
End of year............ $767,502,233 $672,713,807 $201,871,836 $52,833,371 $179,743,919
============ ============ ============ =========== ============
Accumulated
undistributed net
investment income..... $ -- $ -- $ 16,158 $ 47,698 $ (8,364)
============ ============ ============ =========== ============
</TABLE>
MF-59
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE PERIOD ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
HARTFORD HARTFORD
BOND STOCK
HLS FUND, INC. HLS FUND, INC.
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment
income................ $ 42,251,914 $ 55,715,839
Net realized gain...... 6,857,968 606,814,688
Net unrealized
appreciation
(depreciation) of
investments........... 6,537,524 1,025,014,678
------------ --------------
Net increase in net
assets resulting from
operations............ 55,647,406 1,687,545,205
------------ --------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. (42,744,233) (54,276,510)
Class IB............. (255,767) (423,490)
In excess of net
investment income
Class IA............. -- --
Class IB............. -- --
From realized gain on
investments
Class IA............. -- (173,700,001)
Class IB............. -- --
From Capital
Class IA............. -- --
Class IB............. -- --
------------ --------------
Total
distributions....... (43,000,000) (228,400,001)
------------ --------------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 336,835,852 1,011,129,116
Class IB............. 5,412,364 9,617,289
------------ --------------
Net increase from
capital share
transactions...... 342,248,216 1,020,746,405
------------ --------------
Net increase in
net assets........ 354,895,622 2,479,891,609
NET ASSETS:
Beginning of period.... 552,869,797 4,713,321,561
------------ --------------
End of period.......... $907,765,419 $7,193,213,170
============ ==============
Accumulated
undistributed net
investment income..... $ 601,032 $ 2,530,584
============ ==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-60
<PAGE>
<TABLE>
<CAPTION>
HARTFORD HARTFORD HARTFORD
HARTFORD HARTFORD CAPITAL MORTGAGE HARTFORD INTERNATIONAL
MONEY MARKET ADVISERS APPRECIATION SECURITIES INDEX OPPORTUNITIES
HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC.
-------------- --------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 36,098,085 $ 238,749,776 $ 30,647,752 $ 20,754,294 $ 17,720,807 $ 17,575,788
Net realized gain...... 11,475 996,514,487 364,010,892 2,198,060 29,925,343 12,666,849
Net unrealized
appreciation
(depreciation) of
investments........... -- 952,207,563 357,874,298 (1,261,828) 316,666,304 109,161,058
------------ --------------- -------------- ------------ -------------- --------------
Net increase in net
assets resulting from
operations............ 36,109,560 2,187,471,826 752,532,942 21,690,526 364,312,454 139,403,695
------------ --------------- -------------- ------------ -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. (36,067,869) (233,135,052) (30,859,661) (20,754,294) (15,000,000) (15,638,936)
Class IB............. (30,216) (1,804,946) (140,339) -- -- (11,063)
In excess of net
investment income
Class IA............. -- -- -- (963,871) -- --
Class IB............. -- -- -- -- -- --
From realized gain on
investments
Class IA............. (11,470) (297,100,001) (320,000,000) -- (29,600,000) (72,215,058)
Class IB............. (5) -- -- -- -- --
From Capital
Class IA............. -- -- -- (481,835) -- --
Class IB............. -- -- -- -- -- --
------------ --------------- -------------- ------------ -------------- --------------
Total
distributions....... (36,109,560) (532,039,999) (351,000,000) (22,200,000) (44,600,000) (87,865,057)
------------ --------------- -------------- ------------ -------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 260,005,789 1,866,824,047 603,278,396 31,642,127 402,949,764 52,208,761
Class IB............. 2,179,043 33,957,359 5,618,272 -- -- 663,583
------------ --------------- -------------- ------------ -------------- --------------
Net increase from
capital share
transactions...... 262,184,832 1,900,781,406 608,896,668 31,642,127 402,949,764 52,872,344
------------ --------------- -------------- ------------ -------------- --------------
Net increase in
net assets........ 262,184,832 3,556,213,233 1,010,429,610 31,132,653 722,662,218 104,410,982
NET ASSETS:
Beginning of period.... 612,480,218 8,283,911,901 4,802,992,002 325,701,680 1,123,455,002 1,092,945,600
------------ --------------- -------------- ------------ -------------- --------------
End of period.......... $874,665,050 $11,840,125,134 $5,813,421,612 $356,834,333 $1,846,117,220 $1,197,356,582
============ =============== ============== ============ ============== ==============
Accumulated
undistributed net
investment income..... $ -- $ 8,440,413 $ 61,286 $ -- $ 3,697,905 $ 958,685
============ =============== ============== ============ ============== ==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-61
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE PERIOD ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
HARTFORD HARTFORD
DIVIDEND AND INTERNATIONAL
GROWTH ADVISERS
HLS FUND, INC. HLS FUND, INC.
-------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 46,444,855 $ 6,916,112
Net realized gain
(loss)................ 112,675,011 3,156,134
Net unrealized
appreciation of
investments........... 219,406,183 19,040,441
-------------- ------------
Net increase in net
assets resulting from
operations............ 378,526,049 29,112,687
-------------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. (47,843,520) (6,916,112)
Class IB............. (256,480) --
In excess of net
investment income
Class IA............. -- (1,129,081)
Class IB............. -- --
From realized gain on
investments
Class IA............. (76,700,000) (5,712,912)
Class IB............. -- --
From Capital
Class IA............. -- (15,954,807)
Class IB............. -- --
-------------- ------------
Total
distributions....... (124,800,000) (29,712,912)
-------------- ------------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 783,146,614 78,871,230
Class IB............. 8,367,912 --
-------------- ------------
Net increase from
capital share
transactions........ 791,514,526 78,871,230
-------------- ------------
Net increase in net
assets.............. 1,045,240,575 78,271,005
NET ASSETS:
Beginning of period.... 1,994,653,222 207,581,524
-------------- ------------
End of period.......... $3,039,893,797 $285,852,529
============== ============
Accumulated
undistributed net
investment income..... $ 2,405,420 $ 763,703
============== ============
</TABLE>
* From inception, May 29, 1998, to December 31, 1998.
** From inception, September 30, 1998, to December 31, 1998.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-62
<PAGE>
<TABLE>
<CAPTION>
HARTFORD HARTFORD
SMALL HARTFORD GROWTH AND HARTFORD HARTFORD
COMPANY MIDCAP INCOME HIGH YIELD GLOBAL LEADERS
HLS FUND, INC. HLS FUND, INC. HLS FUND* HLS FUND** HLS FUND**
-------------- -------------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ (635,225) $ (120,272) $ 95,278 $ 271,464 $ 6,394
Net realized gain
(loss)................ (23,736,323) 3,573,191 (81,434) 3,896 194,164
Net unrealized
appreciation of
investments........... 58,188,250 17,561,240 3,301,259 163,996 870,104
------------ ------------ ----------- ----------- ----------
Net increase in net
assets resulting from
operations............ 33,816,702 21,014,159 3,315,103 439,356 1,070,662
------------ ------------ ----------- ----------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income
Class IA............. -- (1,000) (94,966) (268,149) (6,969)
Class IB............. -- -- (34) (1,851) (31)
In excess of net
investment income
Class IA............. -- -- -- -- --
Class IB............. -- -- -- -- --
From realized gain on
investments
Class IA............. (3,776,000) -- -- -- (144,039)
Class IB............. -- -- -- -- (961)
From Capital
Class IA............. -- -- -- -- --
Class IB............. -- -- -- -- --
------------ ------------ ----------- ----------- ----------
Total
distributions....... (3,776,000) (1,000) (95,000) (270,000) (152,000)
------------ ------------ ----------- ----------- ----------
CAPITAL SHARE
TRANSACTIONS:
Class IA............. 109,974,909 94,891,577 22,093,022 14,314,777 4,850,783
Class IB............. 644,867 -- 10,000 100,000 30,000
------------ ------------ ----------- ----------- ----------
Net increase from
capital share
transactions........ 110,619,776 94,891,577 22,103,022 14,414,777 4,880,783
------------ ------------ ----------- ----------- ----------
Net increase in net
assets.............. 140,660,478 115,904,736 25,323,125 14,584,133 5,799,445
NET ASSETS:
Beginning of period.... 210,769,434 27,588,907 -- -- --
------------ ------------ ----------- ----------- ----------
End of period.......... $351,429,912 $143,493,643 $25,323,125 $14,584,133 $5,799,445
============ ============ =========== =========== ==========
Accumulated
undistributed net
investment income..... $ -- $ -- $ 278 $ -- $ 585
============ ============ =========== =========== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-63
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION:
Hartford Bond HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Money
Market HLS Fund, Inc., Hartford Advisers HLS Fund, Inc., Hartford Capital
Appreciation HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc.,
Hartford Index HLS Fund, Inc., Hartford International Opportunities HLS
Fund, Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford
International Advisers HLS Fund, Inc., Hartford Small Company HLS
Fund, Inc., Hartford MidCap HLS Fund, Inc., and Hartford Series Fund, Inc.
(comprised of Hartford Growth and Income HLS Fund, Hartford High Yield HLS
Fund and Hartford Global Leaders HLS Fund) (each a "Fund" or together 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-end
management investment companies.
The Funds serve as the underlying investment vehicles for certain variable
annuity and variable life insurance separate accounts and group pension
contracts of Hartford Life Insurance Company and Hartford Life and Annuity
Insurance Company (collectively, The Hartford Life Insurance Companies). The
Hartford Life Insurance Companies are affiliates of the Funds. The Funds,
which have different investment objectives and policies, are described
below.
<TABLE>
<S> <C>
Hartford Bond HLS Fund, Inc. Seeks maximum current income consistent with
preservation of capital through investing
primarily in investment grade debt securities.
Hartford Stock HLS Fund, Inc. Seeks long-term capital growth through investment
in a diversified portfolio of equity securities.
Hartford Money Market HLS Fund, Inc. Seeks a high level of current income consistent
with liquidity and preservation of capital through
investment in money-market securities.
Hartford Advisers HLS Fund, Inc. Seeks maximum long-term total rate of return
(capital growth and current income) through
investment in a varying mix of stocks, bonds and
money market instruments.
Hartford Capital Appreciation HLS Fund, Inc. Seeks growth of capital through investment in
equity securities of companies with high growth
potential, including small, medium and large
companies.
Hartford Mortgage Securities HLS Fund, Inc. Seeks a high level of current income by investing
primarily in mortgage-related securities,
including securities issued by the Government
National Mortgage Association.
Hartford Index HLS Fund, Inc. Seeks to approximate the price and yield
performance represented by the Standard & Poor's
500 Composite Stock Price Index through
investments in common stocks.
Hartford International Opportunities HLS Seeks growth of capital through investing
Fund, Inc. primarily in foreign equity securities issues.
Hartford Dividend and Growth HLS Fund, Inc. Seeks a high level of current income consistent
with growth of capital and moderate investment
risk. Primary investments are equity securities
and securities convertible into equity securities
that typically have above average yield.
Hartford International Advisers HLS Fund, Inc. Seeks a long-term total rate of return consistent
with moderate risk. Investments include a mix of
debt, equity and money market instruments
primarily with foreign issuers.
Hartford Small Company HLS Fund, Inc. Seeks growth of capital by investing primarily in
equity securities selected on the basis of
potential for capital appreciation.
Hartford MidCap HLS Fund, Inc. Seeks long-term capital growth through capital
appreciation by investing primarily in equity
securities with market capitalizations within the
range represented by the Standard & Poor's
MidCap 400 Index.
Hartford Growth and Income HLS Fund Seeks growth of capital and current income by
investing primarily in equity securities with
earnings growth potential and steady or rising
dividends.
Hartford High Yield HLS Fund Seeks high current income by investing in high
yield, below investment grade securities. Growth
of capital is a secondary objective.
</TABLE>
MF-64
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Hartford Global Leaders HLS Fund Seeks growth of capital by investing primarily in
equity securities issued by U.S. and non-U.S.
companies.
</TABLE>
Each Fund is divided into Class IA and IB shares. Each class is offered at
net asset value without a sales charge and is subject to the same expenses
except that the Class IB shares are subject to distribution fees charged
pursuant to a Rule 12-b1 plan. Distribution and Service Plans have been
adopted in accordance with rule 12b-1 of the Investment Company Act of 1940,
as amended.
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 (the day 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
Hartford Money Market HLS Fund, Inc. are valued at amortized cost or
original cost plus accrued interest receivable, both of which
approximate market value. In the remaining Funds, short-term
investments purchased with a maturity of 60 days or less are valued
at amortized cost, which approximates market value. Short-term
investments purchased with a maturity of more than 60 days 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 on which such securities are traded
(domestic or foreign) or on the principal over-the-counter market on
which such securities are traded as of the close of business on the
day the securities are being valued. If no sale occurred on a
particular 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 prevailing exchange rates at the
end of each business day. Options are valued at the last sales price;
if no sale took place on such day, then options are valued at the
mean between the bid and asked prices. Securities for which market
quotations are not readily available and all other assets are valued
in good faith at their fair values under the direction of 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
the 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 in the accompanying
financial statements.
Net realized foreign exchange gains or losses arise from sales of
foreign currencies and the difference between asset and liability
amounts initially stated in foreign currencies and the U.S. dollar
value of the amounts actually received or paid. Net unrealized
foreign exchange gains or losses arise from changes in the value of
other assets and liabilities at the end of the reporting period,
resulting from changes in the exchange rates.
d) REPURCHASE AGREEMENTS-- A repurchase agreement is an agreement by
which the seller of a security agrees to repurchase the security sold
at a mutually agreed upon time and price. At the time the Funds enter
into a repurchase agreement, the value of the underlying collateral
security(ies), including accrued interest, will be equal to or exceed
the value of the repurchase agreement and, in the case of repurchase
agreements exceeding one day, the value of the underlying
security(ies), including accrued interest, is required during the
term of the agreement to be equal to or exceed the value of the
repurchase agreement. Securities which serve to collateralize the
repurchase agreement are held by each Fund's custodian in book entry
or physical form in the custodial account of the Fund. Repurchase
MF-65
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
agreements are valued at cost plus accrued interest receivable. All
repurchase agreements are handled through the Fund's custodian, State
Street Bank.
e) JOINT TRADING ACCOUNT-- Pursuant to an exemptive order issued by the
SEC, the Funds may transfer uninvested cash balances into a joint
trading account managed by The Hartford Investment Management Company
(HIMCO) or Wellington Management Company, LLP (Wellington). These
balances may be invested in one or more repurchase agreements and/or
short-term money market instruments.
f) FUTURES, OPTIONS ON FUTURES AND OPTIONS TRANSACTIONS-- The Funds
enter into futures contracts to retain their cash balance and yet be
exposed to the market, thereby providing the liquidity necessary to
accommodate redemptions while at the same time providing shareholders
with the investment return of a fully invested portfolio. A futures
contract is an agreement between two parties to buy and sell a
security at a set price on a future date. When the Funds enter into
such contracts, they are required to deposit with their custodian an
amount of "initial margin" of cash, commercial paper or U.S. Treasury
bills. Subsequent payments, called maintenance margin, to and from
the broker-dealer, are made on a daily basis as the price of the
underlying debt security fluctuates, making the long and short
positions in the futures contract more or less valuable (i.e.,
"mark-to-market"), which results in an unrealized gain or loss to the
Funds. The market value of a traded futures contract is the last sale
price. In the absence of a last sale price, the last offering price
is used. In the absence of either of these prices, fair value is
determined according to procedures established by the Funds' Board of
Directors. The variation margin on futures contracts is included in
excess of cash, receivables and other assets over liabilities, or
excess of liabilities over cash, receivables and other assets, as
applicable, in each Funds' Statement of Net Assets.
At any time prior to the 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 excess of cash,
receivables and other assets over liabilities or excess of
liabilities over cash, receivables and other assets 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 to buy the call.
The Funds may write covered options. "Covered" means that so long as
the fund is obligated as the writer of an option, it will own either
the underlying securities or currency or an option to purchase or
sell the same underlying securities or currency having an expiration
date of the covered option at an exercise price equal to or less than
the exercise price of the covered option, or will establish or
maintain with its custodian for the term of the option a "segregated
account" consisting of cash or other liquid securities having a value
equal to the fluctuating market value of the option securities or
currencies. The Fund receives a premium from writing a call or put
option, which increases the Fund's return if the option expires
unexercised or is closed out at a net profit. There is a risk of loss
from a change in value of such options which may exceed the related
premiums received
The use of futures contracts involve, to varying degrees, elements of
market and counter party risk which may exceed the amounts recognized
in the Statement of Assets and Liabilities. Change in the value of
the futures contracts may decrease the effectiveness of the Fund's
strategies and potentially result in a loss.
The Fund's option activity was as follows as of December 31, 1999:
MF-66
<PAGE>
- --------------------------------------------------------------------------------
HLS DIVIDEND AND GROWTH FUND
<TABLE>
<CAPTION>
OPTIONS CONTRACTS ACTIVITY
DURING THE PERIOD
--------------------------
NUMBER OF DOLLAR
CALL WRITES CONTRACTS AMOUNTS
- ----------- ----------- -------------
<S> <C> <C>
Beginning of Period..................... 7,650 $ 684,604
During the Period....................... 43,050 4,176,298
Expired during the period............... (37,493) (3,485,967)
Closed during the period................ (12,547) (1,317,610)
Exercised during the period............. (660) (57,325)
-------- -----------
Balance at the end of period............ -- $ --
======== ===========
</TABLE>
g) FORWARD FOREIGN CURRENCY CONTRACTS-- As of December 31, 1999, Hartford
Capital Appreciation HLS Fund, Inc., Hartford International
Opportunities HLS Fund, Inc., Hartford International Advisers HLS
Fund, Inc., and Hartford Global Leaders HLS Fund had entered into
forward foreign currency exchange contracts that obligate the Funds
to repurchase/replace or sell currencies at specified future dates.
The Funds enter into forward foreign currency contracts to hedge
against adverse fluctuations in exchange rates between currencies.
The forward foreign currency contracts' costs are included in excess
of cash, receivables and other assets over liabilities or excess of
liabilities over cash, receivables and other assets, as applicable,
in the Funds' Statement of Net Assets.
Forward foreign currency contracts involve elements of markets risk
in excess of the amount reflected in the Statement of Net Assets. In
addition, risk may arise upon entering into these contracts from the
potential inability of the counter parties to meet the terms of the
contracts and from unanticipated movements in the value of the
foreign currencies relative to the U.S. dollar.
h) INDEXED SECURITIES-- The Funds may invest in indexed securities whose
values are linked to changes in interest rates, indices, or other
underlying instruments. The Funds use these securities to increase or
decrease its exposure to different underlying instruments and to gain
exposure to markets that might be difficult to invest through
conventional securities. Index securities are shown at market value
in the statement of net assets, if applicable. Index securities may
be more volatile than their underlying instruments, but any loss is
limited to the amount of the original investment and there is a limit
to the potential appreciation of the investment.
i) FEDERAL INCOME TAXES-- For federal income tax purposes, the Funds
intend to continue to qualify as regulated investment companies under
Subchapter M of the Internal Revenue Code by distributing
substantially all of their taxable net investment income and net
realized capital gains to their shareholders or otherwise complying
with the requirements of regulated investment companies. Accordingly,
no provision for federal income taxes has been made in the
accompanying financial statements.
j) FUND SHARE VALUATION AND DISTRIBUTIONS TO SHAREHOLDERS-- Orders for
the Funds' shares are executed in accordance with the investment
instructions of the contract holders. Dividend income is accrued as
of the ex-dividend date, except that certain dividends for foreign
securities where the ex-dividend date may have passed, are recorded
as soon as the fund is informed of the ex-dividend data in the
exercise of due diligence. Interest income and expenses are accrued
on a daily basis. The net asset value of each Fund's shares is
determined as of the close of each business day of the New York Stock
Exchange (the Exchange). Orders for the purchase of a Fund's shares
received prior to the close of the Exchange on any day on which the
Fund is open for business are priced at the per-share net asset value
determined as of the close of the Exchange. Orders received after the
close of the Exchange, or on a day on which the Exchange and/or the
Fund is not open for business, are priced at the next determined
per-share net asset value.
Dividends are declared by the Funds' Board of Directors based upon
the investment performance of the respective Funds. The policy of all
funds except the Hartford Money Market HLS Fund, Inc. is to pay
dividends from net investment income and distribute realized capital
gains, if any, at least once each year.
Hartford Money Market HLS Fund, Inc. seeks 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 its investments using the amortized cost method.
Dividends are distributed monthly.
MF-67
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
Distributions from net investment income, realized capital gains and
capital are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting
principles. These differences include the treatment of non-taxable
dividends, expiring capital loss carryforwards, foreign currency
gains and losses, partnerships, losses deferred due to wash sales and
excise tax regulations. Permanent book and tax basis differences
relating to shareholder distributions result in reclassifications to
capital accounts (see Note 7).
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.
l) RESTRICTED SECURITIES-- Each Fund is permitted to invest up to 15% of
its net assets in illiquid securities, except for Money Market HLS
Fund, Inc., which may invest up to 10% in such securities. "Illiquid
Securities" are those that may not be sold or disposed of in the
ordinary course of business, at approximately the price used to
determine a Fund's net asset value per share. Each Fund may also
purchase certain restricted securities, commonly known as Rule 144A
securities, that can be resold to institutions and which may be
determined to be liquid pursuant to policies and guidelines
established by the Funds' Board of Directors. At December 31, 1999,
the Funds did not hold any restricted securities (excluding 144A
issues).
3. EXPENSES:
a) INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS-- HL Investment
Advisors, LLC (HL Advisors) an indirect majority-owned subsidiary of
The Hartford Financial Services Group, Inc. (The Hartford), serves as
investment manager to the Funds pursuant to Investment Management
Agreements approved by each Funds' Board of Directors and
shareholders.
The schedule below reflects the rates of compensation paid to HL
Advisors for services rendered:
HARTFORD INDEX HLS FUND, INC.
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ -----------
<S> <C>
All Assets 0.200%
<CAPTION>
HARTFORD MONEY MARKET HLS FUND, INC.
AND HARTFORD MORTGAGE SECURITIES HLS FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ -----------
<S> <C>
All Assets 0.250%
<CAPTION>
HARTFORD BOND HLS FUND, INC.
AND HARTFORD STOCK HLS FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ -----------
<S> <C>
On first $250 million .325%
On next $250 million .300
On next $500 million .275
Over $1 billion .250
</TABLE>
MF-68
<PAGE>
- --------------------------------------------------------------------------------
HARTFORD ADVISERS HLS FUND, INC.,
HARTFORD CAPITAL APPRECIATION HLS FUND, INC.,
HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC.,
HARTFORD DIVIDEND AND GROWTH HLS FUND, INC.,
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC.,
HARTFORD SMALL COMPANY HLS FUND, INC.,
HARTFORD MIDCAP HLS FUND, INC.,
HARTFORD GROWTH AND INCOME HLS FUND,
HARTFORD HIGH YIELD HLS FUND AND
HARTFORD GLOBAL LEADERS HLS FUND
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS ANNUAL RATE
- ------------------------ -----------
<S> <C>
On first $250 million .575%
On next $250 million .525
On next $500 million .475
Over $1 billion .425
</TABLE>
HL Advisors has agreed to waive its fees for the Hartford High Yield
HLS Fund and Hartford Global Leaders HLS Fund until the net assets of
these Funds, excluding assets contributed by companies affiliated
with HL Advisors, reaches $20 million. The Hartford Growth and Income
HLS Fund reached this level during 1998, and the Hartford High Yield
HLS Fund and Hartford Global Leaders Fund reached this level during
1999. Total fees waived during 1999 amounted to $40,569 and $24,763
on Hartford High Yield HLS Fund and Hartford Global Leaders HLS Fund,
respectively.
Pursuant to investment services agreements between HL Advisors and
HIMCO, HIMCO provides the day-to-day investment management services
to the Hartford Bond HLS Fund, Inc., Hartford Money Market HLS Fund,
Inc., Hartford Mortgage Securities HLS Fund, Inc., Hartford Index HLS
Fund, Inc. and Hartford High Yield HLS Fund. HIMCO is a wholly-owned
subsidiary of The Hartford.
Pursuant to sub-advisory agreements between HL Advisors and
Wellington, Wellington provides the day-to-day investment management
services to the Hartford Stock HLS Fund, Inc., Hartford Advisers HLS
Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford
International Opportunities HLS Fund, Inc., Hartford Dividend and
Growth HLS Fund, Inc., Hartford International Advisers HLS Fund,
Inc., Hartford Small Company HLS Fund, Inc., Hartford MidCap HLS
Fund, Inc., Hartford Growth and Income HLS Fund and Hartford Global
Leaders HLS Fund.
Wellington and HIMCO determine the purchase and sale of portfolio
securities and place such orders for execution in the name of the
respective Fund. In conjunction with their investment activity,
Wellington and HIMCO regularly furnish reports to the Funds' 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 The Hartford Life Insurance Companies (HL) and each
of the Funds, HL provides administrative services to the Funds and
receives monthly compensation at the annual rate of 0.20% 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.
d) EXPENSE OFFSET-- The Funds have entered into certain expense offset
arrangements with the Custodian Bank. The amount of the Funds'
expense reductions is shown on the accompanying Statement of
Operations as Custodian expense fees offset.
MF-69
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
e) DISTRIBUTION PLAN FOR CLASS IB SHARES-- Each Fund has adopted a
Distribution Plan pursuant to Rule 12b-1 under the 1940 Act for the
Class IB shares. Pursuant to the Distribution Plan, each Fund
compensates the Distributor from assets attributable to the Class IB
shares for services rendered and expenses borne in connection with
activities primarily intended to result in the sale of the Class IB
shares.
Although the Distribution Plan provides that each Fund may pay
annually up to 0.25% of the average daily net assets of a Fund
attributable to its Class IB shares for activities primarily intended
to result in the sale of Class IB shares, the Distributor has
voluntarily agreed to waive 0.07% of the fee. This waiver may be
withdrawn at any time after notice to shareholders. Under the terms
of the Distribution Plan and the principal underwriting agreement,
each Fund is authorized to make payments monthly to the Distributor
which may be used to pay or reimburse entities providing distribution
and shareholder servicing with respect to the Class IB shares for
such entities' fees or expenses incurred or paid in that regard.
4. TAX COST AND UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS:
As of December 31, 1999, the aggregate gross unrealized appreciation and
depreciation of all investments, based on cost for federal income tax
purposes, was as follows:
<TABLE>
<CAPTION>
AGGREGATE GROSS AGGREGATE GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
FUND TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
---- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Hartford Bond HLS
Fund, Inc.................... $ 1,026,921,938 $ 2,708,019 $ (37,927,895) $ (35,219,876)
Hartford Stock HLS
Fund, Inc.................... 6,539,399,192 3,277,776,138 (377,925,497) 2,899,850,641
Hartford Advisers HLS
Fund, Inc.................... 11,379,251,004 3,338,811,476 (576,357,490) 2,762,453,986
Hartford Capital Appreciation
HLS Fund, Inc................ 5,643,803,922 2,565,911,788 (415,196,652) 2,150,715,136
Hartford Mortgage Securities
HLS Fund, Inc................ 459,282,357 480,126 (5,414,693) (4,934,567)
Hartford Index HLS
Fund, Inc.................... 1,594,934,751 1,101,696,318 (118,773,193) 982,923,125
Hartford International
Opportunities HLS
Fund, Inc.................... 1,184,557,010 414,232,395 (28,808,555) 385,423,840
Hartford Dividend & Growth HLS
Fund, Inc.................... 2,759,551,402 597,577,246 (169,534,469) 428,042,777
Hartford International
Advisers HLS Fund, Inc....... 343,972,528 61,001,084 (8,602,450) 52,398,634
Hartford Small Company HLS
Fund, Inc.................... 587,856,429 211,932,140 (31,983,345) 179,948,795
Hartford MidCap HLS
Fund, Inc.................... 555,958,867 126,277,605 (23,251,284) 103,026,321
Hartford Growth and Income HLS
Fund......................... 183,961,763 29,400,026 (8,859,144) 20,540,882
Hartford High Yield HLS
Fund......................... 53,489,326 386,657 (1,734,547) (1,347,890)
Hartford Global Leaders HLS
Fund......................... 147,386,147 34,906,710 (724,234) 34,182,476
</TABLE>
5. AFFILIATE HOLDINGS:
a) As of December 31, 1999, HL Investment Advisers, LLC held direct
interests in shares as follows:
<TABLE>
<CAPTION>
PERCENT OF PERCENT OF
FUND CLASS A SHARES CLASS B SHARES
---- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Hartford Mortgage Securities
HLS Fund, Inc................ $ -- $ -- $ 9,030 100.00%
Hartford Index HLS
Fund, Inc.................... -- -- 2,550 100.00%
Hartford International
Advisers HLS Fund, Inc....... -- -- 7,691 100.00%
Hartford MidCap HLS
Fund, Inc.................... -- -- 5,689 32.22%
Hartford Growth and Income HLS
Fund......................... -- -- 10,031 100.00%
Hartford High Yield HLS
Fund......................... 9,900,000 18.86% 101,821 100.00%
Hartford Global Leaders HLS
Fund......................... 2,970,000 3.16% 30,744 85.18%
</TABLE>
MF-70
<PAGE>
b) As of December 31, 1999, certain HL group pension contracts held direct
interests in shares as follows:
<TABLE>
<CAPTION>
PERCENT OF
FUND SHARES TOTAL SHARES
---- ---------- ------------
<S> <C> <C>
Hartford Bond HLS Fund Inc.............. 26,128,558 2.61%
Hartford Stock HLS Fund, Inc............ 38,669,103 2.93%
Hartford Money Market HLS Fund, Inc..... 88,529,586 6.99%
Hartford Advisers HLS Fund, Inc......... 84,361,666 1.76%
Hartford Capital Appreciation HLS
Fund, Inc.............................. 40,721,539 3.11%
Hartford Mortgage Securities HLS
Fund, Inc.............................. 13,734,992 4.20%
Hartford Index HLS Fund, Inc............ 39,331,132 6.38%
Hartford International Opportunities HLS
Fund, Inc.............................. 11,154,029 1.33%
Hartford Dividend and Growth HLS
Fund, Inc.............................. 9,721,776 0.65%
Hartford International Advisers HLS
Fund, Inc.............................. 2,593,521 0.91%
Hartford Small Company HLS
Fund, Inc.............................. 9,038,267 2.58%
Hartford MidCap HLS Fund, Inc........... 698,615 0.21%
Hartford Growth and Income HLS Fund..... 57,055 0.04%
Hartford High Yield Bond HLS Fund....... 55,278 0.11%
Hartford Global Leaders HLS Fund........ 87,143 0.09%
</TABLE>
6. INVESTMENT TRANSACTIONS:
For the year ended December 31, 1999, aggregate purchases and sales of
investment securities (excludes short-term investments) were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES AT COST SALES AT PROCEEDS
---- ----------------- -----------------
<S> <C> <C>
Hartford Bond HLS Fund, Inc............. $1,174,484,784 $1,041,331,670
Hartford Stock HLS Fund, Inc............ 3,717,695,199 3,046,251,256
Hartford Advisers HLS Fund, Inc......... 5,676,157,473 4,855,286,783
Hartford Capital Appreciation HLS
Fund, Inc.............................. 4,117,323,296 4,619,024,673
Hartford Mortgage Securities HLS
Fund, Inc.............................. 1,701,968,117 1,623,962,135
Hartford Index HLS Fund, Inc............ 396,411,270 60,229,318
Hartford International Opportunities HLS
Fund, Inc.............................. 1,623,208,290 1,683,436,929
Hartford Dividend and Growth HLS
Fund, Inc.............................. 1,777,561,452 1,739,561,352
Hartford International Advisers HLS
Fund, Inc.............................. 371,479,939 351,808,001
Hartford Small Company HLS
Fund, Inc.............................. 873,086,693 774,226,433
Hartford MidCap HLS Fund, Inc........... 708,123,290 369,635,354
Hartford Growth and Income HLS Fund..... 197,927,356 45,700,391
Hartford High Yield HLS Fund............ 52,886,966 15,694,363
Hartford Global Leaders HLS Fund........ 236,360,641 112,443,862
</TABLE>
7. RECLASSIFICATION OF CAPITAL ACCOUNTS:
In accordance with AICPA Statement of Position 93-2, DETERMINATION,
DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN,
AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES, the Funds have
recorded several reclassifications in their capital accounts. These
reclassifications had no impact on the net asset value per share of the
Funds and are designed generally to present undistributed income and
realized gains on a tax basis which is considered
MF-71
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
to be more informative to the shareholder. As of December 31, 1999 the Funds
recorded the following reclassifications to increase (decrease) the accounts
listed below.
<TABLE>
<CAPTION>
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTED (DISTRIBUTION
(DISTRIBUTION IN EXCESS OF)
IN EXCESS OF) NET REALIZED
NET INVESTMENT GAIN ON PAID-IN
FUND INCOME INVESTMENTS SURPLUS
---- -------------- ------------- ------------
<S> <C> <C> <C>
Hartford Bond HLS Fund, Inc........ $ 20 $ (20) $ 0
Hartford Stock HLS Fund, Inc....... (1,029,743) 1,029,743 0
Hartford Advisers HLS
Fund, Inc......................... (1,496,292) 1,496,292 0
Hartford Capital Appreciation HLS
Fund, Inc......................... (1,484,459) 1,484,459 0
Hartford Index HLS Fund, Inc....... (8) 345 (337)
Hartford International
Opportunities HLS Fund, Inc....... 5,760,666 (5,760,666) 0
Hartford Dividend and Growth HLS
Fund, Inc......................... (387,444) 387,444 0
Hartford International Advisers HLS
Fund, Inc......................... 1,308,718 (895,707) (413,011)
Hartford Small Company HLS
Fund, Inc......................... 1,976,601 (1,976,601) 0
Hartford MidCap HLS Fund, Inc...... 453,470 (453,470) 0
Hartford High Yield HLS Fund....... 3,292 (3,292) 0
Hartford Global Leaders HLS Fund... (72,755) 72,755 0
</TABLE>
8. CAPITAL LOSS CARRY FORWARD:
At December 31, 1999, (tax year-end) the following Funds had capital loss
carry forwards for U.S. Federal Tax purposes of approximately:
<TABLE>
<CAPTION>
FUND AMOUNT YEAR OF EXPIRATION
---- ----------- ------------------
<S> <C> <C>
Hartford Bond HLS Fund, Inc............. $12,947,626 2007
Hartford Mortgage Securities HLS
Fund, Inc.............................. 7,251,161 2002
Hartford Mortgage Securities HLS
Fund, Inc.............................. 6,080,764 2007
Hartford High Yield HLS Fund............ 145,594 2007
</TABLE>
9. TAX INFORMATION NOTICE (UNAUDITED):
For the year ended December 31, 1999, the following Funds distributed
long-term capital gains dividends as follows:
<TABLE>
<S> <C>
Hartford Bond HLS Fund, Inc....................... $ 1,374,804
Hartford Stock HLS Fund, Inc...................... 587,221,908
Hartford Advisers HLS Fund, Inc................... 968,388,762
Hartford Capital Appreciation HLS Fund, Inc....... 364,336,498
Hartford Index HLS Fund, Inc...................... 27,846,895
Hartford Dividend and Growth HLS Fund, Inc........ 112,543,513
Hartford MidCap HLS Fund, Inc..................... 2,403,476
Hartford Growth and Income HLS Fund............... 624,000
</TABLE>
MF-72
<PAGE>
As of December 31, 1999, certain Funds designated a percent of their
ordinary dividends paid during the year ended December 31, 1999 (including
short-term capital gain distributions) as eligible for the dividends
received deduction for corporate shareholders as follows:
<TABLE>
<CAPTION>
PERCENT OF DIVIDENDS
PAID ELIGIBLE FOR THE
DIVIDENDS RECEIVED
DEDUCTION
-----------------------
<S> <C>
Hartford Stock HLS Fund, Inc...................... 81.68%
Hartford Advisers HLS Fund, Inc................... 24.20%
Hartford Capital Appreciation HLS Fund, Inc....... 95.64%
Hartford Index HLS Fund, Inc...................... 99.54%
Hartford Dividend and Growth HLS Fund, Inc........ 99.28%
Hartford Small Company HLS Fund, Inc.............. 54.98%
Hartford MidCap HLS Fund, Inc..................... 5.45%
Hartford Growth and Income HLS Fund............... 70.11%
Hartford Global Leaders HLS Fund.................. 14.53%
</TABLE>
10. CAPITAL SHARE TRANSACTIONS:
The following information is for the year ended December 31, 1999:
<TABLE>
<CAPTION>
HARTFORD BOND HLS FUND, INC. HARTFORD STOCK HLS FUND, INC.
----------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 277,049,634 $ 292,698,172 235,050,891 $ 1,558,714,874
Shares issued on reinvestment of
distributions.......................... 60,010,055 60,029,553 110,768,543 683,262,216
Shares Redeemed......................... (187,269,736) (197,509,155) (125,298,498) (836,000,490)
------------ -------------- -------------- ---------------
Net Increase............................ 149,789,953 $ 155,218,570 220,520,936 $ 1,405,976,600
============ ============== ============== ===============
<CAPTION>
HARTFORD MONEY MARKET
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IA
Shares sold............................. 3,906,482,986 $ 3,906,482,986
Shares issued on reinvestment of
distributions.......................... 51,555,581 51,555,581
Shares Redeemed......................... (3,573,088,764) (3,573,088,764)
-------------- ---------------
Net Increase............................ 384,949,803 $ 384,949,803
============== ===============
</TABLE>
<TABLE>
<CAPTION>
HARTFORD CAPITAL APPRECIATION
HARTFORD ADVISERS HLS FUND, INC. HLS FUND, INC.
--------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- ---------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 614,913,572 $1,778,189,829 217,404,748 $ 1,126,019,680
Shares issued on reinvestment of
distributions.......................... 460,621,368 1,279,338,852 87,389,279 397,183,670
Shares Redeemed......................... (280,036,788) (814,255,554) (218,690,362) (1,114,144,924)
------------ -------------- -------------- ---------------
Net Increase (Decrease)................. 795,498,152 $2,243,273,127 86,103,665 $ 409,058,426
============ ============== ============== ===============
<CAPTION>
HARTFORD MORTGAGE SECURITIES
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IA
Shares sold............................. 57,420,210 $ 62,723,439
Shares issued on reinvestment of
distributions.......................... 18,281,971 18,999,447
Shares Redeemed......................... (77,858,092) (84,996,322)
-------------- ---------------
Net Increase (Decrease)................. (2,155,911) $ (3,273,436)
============== ===============
</TABLE>
MF-73
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
HARTFORD INTERNATIONAL OPPORTUNITIES
HARTFORD INDEX HLS FUND, INC. HLS FUND, INC.
------------------------------- ------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- ---------------- -----------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 168,042,345 $ 636,888,276 1,187,527,101 $ 1,833,047,660
Shares issued on reinvestment of
distributions.......................... 14,933,404 56,131,418 8,503,477 15,254,141
Shares Redeemed......................... (83,755,947) (317,814,271) (1,239,798,936) (1,919,519,253)
------------ -------------- -------------- ---------------
Net Increase (Decrease)................. 99,219,802 $ 375,205,423 (43,768,358) $ (71,217,452)
============ ============== ============== ===============
<CAPTION>
HARTFORD DIVIDEND AND GROWTH
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IA
Shares sold............................. 180,202,994 $ 388,544,304
Shares issued on reinvestment of
distributions.......................... 83,476,813 172,307,830
Shares Redeemed......................... (173,958,180) (375,387,939)
-------------- ---------------
Net Increase (Decrease)................. 89,721,627 $ 185,464,195
============== ===============
<CAPTION>
HARTFORD INTERNATIONAL ADVISERS HARTFORD SMALL COMPANY
HLS FUND, INC. HLS FUND, INC.
------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 76,211,389 $ 96,821,259 449,380,629 $ 730,073,657
Shares issued on reinvestment of
distributions.......................... 5,069,911 6,999,809 465,522 986,389
Shares Redeemed......................... (45,206,504) (57,914,454) (369,178,185) (587,380,886)
------------ -------------- -------------- ---------------
Net Increase............................ 36,074,796 $ 45,906,614 80,667,966 $ 143,679,160
============ ============== ============== ===============
<CAPTION>
HARTFORD MIDCAP HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IA
Shares sold............................. 332,613,613 $ 574,935,141
Shares issued on reinvestment of
distributions.......................... 14,798,773 27,768,034
Shares Redeemed......................... (119,536,017) (206,745,824)
-------------- ---------------
Net Increase............................ 227,876,369 $ 395,957,351
============== ===============
<CAPTION>
HARTFORD GROWTH AND INCOME
HLS FUND HARTFORD HIGH YIELD HLS FUND
----------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 124,785,805 $ 162,231,545 44,459,567 $ 46,499,472
Shares issued on reinvestment of
distributions.......................... 1,261,977 1,784,141 2,365,811 2,375,999
Shares Redeemed......................... (6,393,685) (8,049,987) (8,593,897) (8,946,525)
------------ -------------- -------------- ---------------
Net Increase............................ 119,654,097 $ 155,965,699 38,231,481 $ 39,928,946
============ ============== ============== ===============
<CAPTION>
HARTFORD GLOBAL LEADERS HLS FUND
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IA
Shares sold............................. 93,678,716 $ 143,929,047
Shares issued on reinvestment of
distributions.......................... 552,543 1,016,174
Shares Redeemed......................... (4,785,794) (6,914,566)
-------------- ---------------
Net Increase............................ 89,445,465 $ 138,030,655
============== ===============
<CAPTION>
HARTFORD BOND HLS FUND, INC. HARTFORD STOCK HLS FUND, INC.
----------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 12,086,492 $ 12,742,994 4,730,353 $ 33,043,242
Shares issued on reinvestment of
distributions.......................... 885,821 884,032 1,162,222 7,106,322
Shares Redeemed......................... (1,947,721) (2,053,252) (114,277) (934,638)
------------ -------------- -------------- ---------------
Net Increase............................ 11,024,592 $ 11,573,774 5,778,298 $ 39,214,926
============ ============== ============== ===============
<CAPTION>
HARTFORD MONEY MARKET
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IB
Shares sold............................. 13,572,465 $ 13,572,465
Shares issued on reinvestment of
distributions.......................... 265,771 265,771
Shares Redeemed......................... (7,213,355) (7,213,355)
-------------- ---------------
Net Increase............................ 6,624,881 $ 6,624,881
============== ===============
</TABLE>
MF-74
<PAGE>
<TABLE>
<CAPTION>
HARTFORD CAPITAL APPRECIATION
HARTFORD ADVISERS HLS FUND, INC. HLS FUND, INC.
--------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- ---------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 31,941,537 $ 94,086,190 2,434,908 $ 12,891,538
Shares issued on reinvestment of
distributions.......................... 4,764,781 13,221,729 492,766 2,214,111
Shares Redeemed......................... (120,576) (352,701) (80,356) (470,429)
------------ -------------- -------------- ---------------
Net Increase............................ 36,585,742 $ 106,955,218 2,847,318 $ 14,635,220
============ ============== ============== ===============
<CAPTION>
HARTFORD MORTGAGE SECURITIES
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IB
Shares sold............................. 9,030 $ 10,000
Shares issued on reinvestment of
distributions.......................... -- --
Shares Redeemed......................... -- --
-------------- ---------------
Net Increase............................ 9,030 $ 10,000
============== ===============
<CAPTION>
HARTFORD INTERNATIONAL OPPORTUNITIES
HARTFORD INDEX HLS FUND, INC. HLS FUND, INC.
------------------------------- ------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- ---------------- -----------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 2,550 $ 10,000 1,364,850 $ 2,144,186
Shares issued on reinvestment of
distributions.......................... -- -- 14,727 26,724
Shares Redeemed......................... -- -- (160,935) (241,499)
------------ -------------- -------------- ---------------
Net Increase............................ 2,550 $ 10,000 1,218,642 $ 1,929,411
============ ============== ============== ===============
<CAPTION>
HARTFORD DIVIDEND AND GROWTH
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IB
Shares sold............................. 3,660,327 $ 7,937,438
Shares issued on reinvestment of
distributions.......................... 515,604 1,060,945
Shares Redeemed......................... (491,624) (1,063,171)
-------------- ---------------
Net Increase............................ 3,684,307 $ 7,935,212
============== ===============
<CAPTION>
HARTFORD INTERNATIONAL ADVISERS HARTFORD SMALL COMPANY
HLS FUND, INC. HLS FUND, INC.
------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 7,691 $ 10,000 4,416,848 $ 7,085,792
Shares issued on reinvestment of
distributions.......................... -- -- 6,427 13,611
Shares Redeemed......................... -- -- (284,642) (465,076)
------------ -------------- -------------- ---------------
Net Increase............................ 7,691 $ 10,000 4,138,633 $ 6,634,327
============ ============== ============== ===============
<CAPTION>
HARTFORD MIDCAP HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IB
Shares sold............................. 17,655 $ 33,761
Shares issued on reinvestment of
distributions.......................... -- --
Shares Redeemed......................... (1) (3)
-------------- ---------------
Net Increase............................ 17,654 $ 33,758
============== ===============
<CAPTION>
HARTFORD GROWTH AND INCOME
HLS FUND HARTFORD HIGH YIELD HLS FUND
----------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- -------------- ---------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. -- $ -- -- $ --
Shares issued on reinvestment of
distributions.......................... 31 35 1,821 1,851
Shares Redeemed......................... -- -- -- --
------------ -------------- -------------- ---------------
Net Increase............................ 31 $ 35 1,821 $ 1,851
============ ============== ============== ===============
<CAPTION>
HARTFORD GLOBAL LEADERS
HLS FUND
--------------------------------
SHARES AMOUNT
-------------- ---------------
<S> <C> <C>
CLASS IB
Shares sold............................. 5,350 $ 10,000
Shares issued on reinvestment of
distributions.......................... 744 992
Shares Redeemed......................... (1) (2)
-------------- ---------------
Net Increase............................ 6,093 $ 10,990
============== ===============
</TABLE>
MF-75
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
The following information is for the period ended December 31, 1998:
<TABLE>
<CAPTION>
HARTFORD BOND HLS FUND, INC. HARTFORD STOCK HLS FUND, INC.
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 334,981,284 $ 366,472,552 226,124,652 $1,307,750,395
Shares issued on reinvestment of
distributions.......................... 39,579,874 42,744,216 40,523,153 227,976,510
Shares Redeemed......................... (66,010,394) (72,380,916) (91,923,857) (524,597,789)
------------ -------------- ------------ --------------
Net Increase............................ 308,550,764 $ 336,835,852 174,723,948 $1,011,129,116
============ ============== ============ ==============
<CAPTION>
HARTFORD MONEY MARKET
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- --------------
<S> <C> <C>
CLASS IA
Shares sold............................. 2,279,384,552 $2,279,385,544
Shares issued on reinvestment of
distributions.......................... 36,079,243 36,079,243
Shares Redeemed......................... (2,055,458,998) (2,055,458,998)
-------------- --------------
Net Increase............................ 260,004,797 $ 260,005,789
============== ==============
<CAPTION>
HARTFORD CAPITAL APPRECIATION
HARTFORD ADVISERS HLS FUND, INC. HLS FUND, INC.
--------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 567,555,489 $1,567,924,884 281,342,857 $1,257,555,081
Shares issued on reinvestment of
distributions.......................... 192,639,731 530,235,045 77,711,309 350,859,661
Shares Redeemed......................... (84,108,984) (231,335,882) (227,943,459) (1,005,136,346)
------------ -------------- ------------ --------------
Net Increase............................ 676,086,236 $1,866,824,047 131,110,707 $ 603,278,396
============ ============== ============ ==============
<CAPTION>
HARTFORD MORTGAGE SECURITIES
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- --------------
<S> <C> <C>
CLASS IA
Shares sold............................. 57,937,610 $ 64,363,026
Shares issued on reinvestment of
distributions.......................... 20,461,506 22,200,000
Shares Redeemed......................... (49,367,564) (54,920,899)
-------------- --------------
Net Increase............................ 29,031,552 $ 31,642,127
============== ==============
<CAPTION>
HARTFORD INTERNATIONAL
HARTFORD INDEX HLS FUND, INC. OPPORTUNITIES HLS FUND, INC.
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 216,433,464 $ 689,009,410 313,574,429 $ 398,422,898
Shares issued on reinvestment of
distributions.......................... 13,976,294 44,600,001 66,706,915 87,853,994
Shares Redeemed......................... (103,754,732) (330,659,647) (341,346,342) (434,068,131)
------------ -------------- ------------ --------------
Net Increase............................ 126,655,026 $ 402,949,764 38,935,002 $ 52,208,761
============ ============== ============ ==============
<CAPTION>
HARTFORD DIVIDEND AND GROWTH
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- --------------
<S> <C> <C>
CLASS IA
Shares sold............................. 372,555,830 $ 763,971,073
Shares issued on reinvestment of
distributions.......................... 60,744,430 124,543,520
Shares Redeemed......................... (51,918,413) (105,367,979)
-------------- --------------
Net Increase............................ 381,381,847 $ 783,146,614
============== ==============
<CAPTION>
HARTFORD INTERNATIONAL ADVISERS HARTFORD SMALL COMPANY
HLS FUND, INC. HLS FUND, INC.
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 56,027,943 $ 63,375,108 221,875,243 $ 257,442,860
Shares issued on reinvestment of
distributions.......................... 27,522,863 29,712,912 2,958,223 3,776,000
Shares Redeemed......................... (12,689,383) (14,216,790) (134,668,328) (151,243,951)
------------ -------------- ------------ --------------
Net Increase............................ 70,861,423 $ 78,871,230 90,165,138 $ 109,974,909
============ ============== ============ ==============
<CAPTION>
HARTFORD MIDCAP HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- --------------
<S> <C> <C>
CLASS IA
Shares sold............................. 79,802,187 $ 100,347,290
Shares issued on reinvestment of
distributions.......................... 747 916
Shares Redeemed......................... (4,365,974) (5,456,629)
-------------- --------------
Net Increase............................ 75,436,960 $ 94,891,577
============== ==============
</TABLE>
MF-76
<PAGE>
<TABLE>
<CAPTION>
HARTFORD GROWTH AND INCOME
HLS FUND HARTFORD HIGH YIELD HLS FUND
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IA
Shares sold............................. 22,409,375 $ 23,210,363 15,548,498 $ 15,659,286
Shares issued on reinvestment of
distributions.......................... 68,752 81,537 78,581 79,897
Shares Redeemed......................... (1,134,968) (1,198,878) (1,383,155) (1,424,406)
------------ -------------- ------------ --------------
Net Increase............................ 21,343,159 $ 22,093,022 14,243,924 $ 14,314,777
============ ============== ============ ==============
<CAPTION>
HARTFORD GLOBAL LEADERS HLS FUND
--------------------------------
SHARES AMOUNT
-------------- --------------
<S> <C> <C>
CLASS IA
Shares sold............................. 5,396,366 $ 5,971,006
Shares issued on reinvestment of
distributions.......................... 39,896 51,273
Shares Redeemed......................... (953,712) (1,171,496)
-------------- --------------
Net Increase............................ 4,482,550 $ 4,850,783
============== ==============
<CAPTION>
HARTFORD BOND HLS FUND, INC. HARTFORD STOCK HLS FUND, INC.
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 5,125,307 $ 5,297,213 8,894,358 $ 9,242,551
Shares issued on reinvestment of
distributions.......................... 253,800 255,767 384,582 423,490
Shares Redeemed......................... (134,784) (140,616) (46,040) (48,752)
------------ -------------- ------------ --------------
Net Increase............................ 5,244,323 $ 5,412,364 9,232,900 $ 9,617,289
============ ============== ============ ==============
<CAPTION>
HARTFORD MONEY MARKET
HLS FUND, INC.
--------------------------------
SHARES AMOUNT
-------------- --------------
<S> <C> <C>
CLASS IB
Shares sold............................. 2,658,059 $ 2,658,060
Shares issued on reinvestment of
distributions.......................... 30,221 30,221
Shares Redeemed......................... (509,238) (509,238)
-------------- --------------
Net Increase............................ 2,179,042 $ 2,179,043
============== ==============
<CAPTION>
HARTFORD CAPITAL APPRECIATION
HARTFORD ADVISERS HLS FUND, INC. HLS FUND, INC.
--------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 31,357,674 $ 32,503,646 5,950,525 $ 5,572,551
Shares issued on reinvestment of
distributions.......................... 1,700,713 1,804,946 141,407 140,339
Shares Redeemed......................... (349,123) (351,233) (104,818) (94,618)
------------ -------------- ------------ --------------
Net Increase............................ 32,709,264 $ 33,957,359 5,987,114 $ 5,618,272
============ ============== ============ ==============
<CAPTION>
HARTFORD INTERNATIONAL OPPORTUNITIES
HLS FUND, INC.
------------------------------------
SHARES AMOUNT
---------------- ----------------
<S> <C> <C>
CLASS IB
Shares sold............................. 680,037 $ 661,681
Shares issued on reinvestment of
distributions.......................... 11,380 11,063
Shares Redeemed......................... (9,688) (9,161)
-------------- --------------
Net Increase............................ 681,729 $ 663,583
============== ==============
<CAPTION>
HARTFORD DIVIDEND AND GROWTH HARTFORD SMALL COMPANY
HLS FUND, INC. HLS FUND, INC.
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 8,473,373 $ 8,276,226 708,407 $ 647,615
Shares issued on reinvestment of
distributions.......................... 255,001 256,481 -- --
Shares Redeemed......................... (177,503) (164,795) (3,241) (2,748)
------------ -------------- ------------ --------------
Net Increase............................ 8,550,871 $ 8,367,912 705,166 $ 644,867
============ ============== ============ ==============
<CAPTION>
HARTFORD GROWTH AND INCOME
HLS FUND
--------------------------------
SHARES AMOUNT
-------------- --------------
<S> <C> <C>
CLASS IB
Shares sold............................. 10,000 $ 10,000
Shares issued on reinvestment of
distributions.......................... -- --
Shares Redeemed......................... -- --
-------------- --------------
Net Increase............................ 10,000 $ 10,000
============== ==============
</TABLE>
MF-77
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
HARTFORD GLOBAL LEADERS
HARTFORD HIGH YIELD HLS FUND HLS FUND
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
CLASS IB
Shares sold............................. 100,000 $ 100,000 30,000 $ 30,000
Shares issued on reinvestment of
distributions.......................... -- -- -- --
Shares Redeemed......................... -- -- -- --
------------ -------------- ------------ --------------
Net Increase............................ 100,000 $ 100,000 30,000 $ 30,000
============ ============== ============ ==============
</TABLE>
11. LINE OF CREDIT:
The funds participate in a $500,000,000 committed revolving line of credit
facility. The facility is to be used for temporary or emergency purposes.
Under the arrangement, the funds are required to own securities having a
market value in excess of 300% of the total bank borrowings. The interest
rate on borrowings varies depending on the nature of the loan. The facility
also requires a fee to be paid based on the amount of the commitment, which
has not been utilized. During the year ended December 31, 1999, the Funds
did not have any borrowings under this facility.
12. REVERSE STOCK SPLIT FOR CLASS B:
On September 17, 1999, a reverse stock split was declared for the Class B
shares of certain Funds, using the following reverse split percentages:
<TABLE>
<CAPTION>
REVERSE SPLIT PERCENTAGE
------------------------
<S> <C>
Hartford Bond HLS Fund, Inc....................... 93.065183%
Hartford Stock HLS Fund, Inc...................... 9.265642
Hartford Advisers HLS Fund, Inc................... 29.667722
Hartford Capital Appreciation HLS Fund, Inc....... 15.418052
Hartford International Opportunities HLS
Fund, Inc........................................ 71.625006
Hartford Small Company HLS Fund, Inc.............. 74.613827
Hartford Dividend and Growth HLS Fund, Inc........ 44.378756
</TABLE>
MF-78
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED PER-SHARE DATA (4)
---------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE AT NET GAIN TOTAL FROM FROM NET IN EXCESS OF
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INCOME
--------- ---------- ------------ ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
HARTFORD BOND HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... $1.081 $0.062 $(0.084) $(0.022) $(0.058) $ --
Class 1B............... 1.083(6) 0.061(6) (0.084)(6) (0.023)(6) (0.057)(6) --(6)
For the Year Ended
December 31, 1998
Class 1A............... 1.050 0.053 0.032 0.085 (0.054) --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 1.075(6) 0.023(6) 0.040(6) 0.063(6) (0.055)(6) --(6)
For the Year Ended
December 31,
1997................... 1.000 0.063 0.047 0.110 (0.060) --
1996................... 1.028 0.064 (0.029) 0.035 (0.063) --
1995................... 0.926 0.064 0.102 0.166 (0.064) --
1994................... 1.044 0.060 (0.100) (0.040) (0.060) --
HARTFORD STOCK HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 6.562 0.050 1.143 1.193 (0.049) --
Class 1B............... 11.884(6) 0.021(6) 1.200(6) 1.221(6) (0.056)(6) --(6)
For the Year Ended
December 31, 1998
Class 1A............... 5.123 0.051 1.622 1.673 (0.050) --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 10.793(6) 0.043(6) 1.565(6) 1.608(6) (0.517)(6) --(6)
For the Year Ended
December 31
1997................... 4.143 0.050 1.196 1.246 (0.049) --
1996................... 3.527 0.060 0.763 0.823 (0.059) --
1995................... 2.801 0.070 0.840 0.910 (0.070) --
1994................... 3.099 0.061 (0.111) (0.050) (0.061) --
HARTFORD MONEY MARKET HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 1.000 0.070 0.000 0.070 (0.070) --
Class 1B............... 1.000 0.068 0.000 0.068 (0.068) --
For the Year Ended
December 31, 1998
Class 1A............... 1.000 0.051 0.000 0.051 (0.051) --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 1.000 0.037 0.000 0.037 (0.037) --
For the Year Ended
December 31
1997................... 1.000 0.049 0.000 0.049 (0.049) --
1996................... 1.000 0.050 0.000 0.050 (0.050) --
1995................... 1.000 0.056 0.000 0.056 (0.056) --
1994................... 1.000 0.039 0.000 0.039 (0.039) --
HARTFORD ADVISERS HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 2.985 0.068 0.221 0.289 (0.063) --
Class 1B............... 3.577(6) 0.061(6) 0.221(6) 0.282(6) (0.064)(6) --(6)
For the Year Ended
December 31, 1998
Class 1A............... 2.527 0.061 0.546 0.607 (0.060) --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 3.371(6) 0.034(6) 0.367(6) 0.401(6) (0.195)(6) --(6)
For the Year Ended
December 31
1997................... 2.169 0.056 0.455 0.511 (0.055) --
1996................... 1.958 0.059 0.255 0.314 (0.059) --
1995................... 1.600 0.064 0.377 0.441 (0.064) --
1994................... 1.752 0.054 (0.100) (0.046) (0.054) --
HARTFORD CAPITAL
APPRECIATION HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 4.759 0.023 1.643 1.666 (0.018) --
Class 1B............... 6.437(6) 0.150(6) 1.503(6) 1.653(6) (0.013)(6) --(6)
For the Year Ended
December 31, 1998
Class 1A............... 4.410 0.025 0.525 0.550 (0.026) --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 6.486(6) 0.013(6) 0.094(6) 0.107(6) (0.156)(6) --(6)
For the Year Ended
December 31
1997................... 3.914 0.020 0.794 0.814 (0.022) --
1996................... 3.490 0.022 0.655 0.677 (0.025) --
1995................... 2.860 0.030 0.785 0.815 (0.030) --
1994................... 3.052 0.011 0.070 0.081 (0.011) --
</TABLE>
(1) Annualized.
(2) Not annualized.
(4) Information presented relates to a share of capital stock outstanding for
the indicated period.
(5) Excluding mortgage dollar rolls.
(6) Per share amounts have been restated to reflect a reverse stock split for
Class B shares effective September 17, 1999 (see Note 12).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-80
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
DISTRIBUTIONS NET ASSET
FROM NET REALIZED NET INCREASE VALUE AT
GAINS ON DISTRIBUTIONS TOTAL (DECREASE) IN END
INVESTMENTS FROM CAPITAL DISTRIBUTIONS NET ASSET VALUE OF PERIOD
----------------- ------------- ------------- ----------------- ---------
<S> <C> <C> <C> <C> <C>
HARTFORD BOND HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... $(0.007) $ -- $(0.065) $(0.087) $0.994
Class 1B............... (0.008)(6) --(6) (0.065)(6) (0.088)(6) 0.995(6)
For the Year Ended
December 31, 1998
Class 1A............... -- -- (0.054) 0.031 1.081
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... --(6) --(6) (0.055)(6) 0.008(6) 1.083(6)
For the Year Ended
December 31,
1997................... -- -- (0.060) 0.050 1.050
1996................... -- -- (0.063) (0.028) 1.000
1995................... -- -- (0.064) 0.102 1.028
1994................... (0.018) -- (0.078) (0.118) 0.926
HARTFORD STOCK HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... (0.559) -- (0.608) 0.585 7.147
Class 1B............... (5.898)(6) --(6) (5.954)(6) (4.733)(6) 7.151(6)
For the Year Ended
December 31, 1998
Class 1A............... (0.184) -- (0.234) 1.439 6.562
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... --(6) --(6) (0.517)(6) 1.091(6) 11.884(6)
For the Year Ended
December 31
1997................... (0.217) -- (0.266) 0.980 5.123
1996................... (0.148) -- (0.207) 0.616 4.143
1995................... (0.114) -- (0.184) 0.726 3.527
1994................... (0.187) -- (0.248) (0.298) 2.801
HARTFORD MONEY MARKET HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... -- -- (0.070) -- 1.000
Class 1B............... -- -- (0.068) -- 1.000
For the Year Ended
December 31, 1998
Class 1A............... -- -- (0.051) -- 1.000
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... -- -- (0.037) -- 1.000
For the Year Ended
December 31
1997................... -- -- (0.049) -- 1.000
1996................... -- -- (0.050) -- 1.000
1995................... -- -- (0.056) -- 1.000
1994................... -- -- (0.039) -- 1.000
HARTFORD ADVISERS HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... (0.246) -- (0.309) (0.020) 2.965
Class 1B............... (0.829)(6) --(6) (0.893)(6) (0.611)(6) 2.966(6)
For the Year Ended
December 31, 1998
Class 1A............... (0.089) -- (0.149) 0.458 2.985
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... --(6) --(6) (0.195)(6) 0.206(6) 3.577(6)
For the Year Ended
December 31
1997................... (0.098) -- (0.153) 0.358 2.527
1996................... (0.044) -- (0.103) 0.211 2.169
1995................... (0.019) -- (0.083) 0.358 1.958
1994................... (0.052) -- (0.106) (0.152) 1.600
HARTFORD CAPITAL
APPRECIATION HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... (0.312) -- (0.330) 1.336 6.095
Class 1B............... (1.979)(6) --(6) (1.992)(6) (0.339)(6) 6.098(6)
For the Year Ended
December 31, 1998
Class 1A............... (0.175) -- (0.201) 0.349 4.759
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... --(6) --(6) (0.156)(6) (0.049)(6) 6.437(6)
For the Year Ended
December 31
1997................... (0.296) -- (0.318) 0.496 4.410
1996................... (0.228) -- (0.253) 0.424 3.914
1995................... (0.155) -- (0.185) 0.630 3.490
1994................... (0.262) -- (0.273) (0.192) 2.860
<CAPTION>
RATIOS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER
RETURN (IN THOUSANDS) WAIVERS WAIVERS NET ASSETS RATE
----------- -------------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
HARTFORD BOND HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... (2.02)% $ 978,861 0.52% 0.52% 6.09% 110.7%
Class 1B............... (2.19) 15,818 0.70 0.77 5.91 110.7
For the Year Ended
December 31, 1998
Class 1A............... 8.15 902,480 0.50 -- 5.86 122.3
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 5.89(2) 5,285 0.69(1) -- 5.54(1) 122.3
For the Year Ended
December 31,
1997................... 11.35 552,870 0.51 -- 6.58 112.9(5)
1996................... 3.54 402,548 0.52 -- 6.37 212.0
1995................... 18.49 342,495 0.53 -- 6.51 215.0
1994................... (3.95) 247,458 0.55 -- 6.23 328.8
HARTFORD STOCK HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 19.78 9,400,385 0.48 0.48 0.80 38.5
Class 1B............... 19.57 47,439 0.66 0.73 0.62 38.5
For the Year Ended
December 31, 1998
Class 1A............... 33.47 7,183,046 0.46 -- 0.95 27.1
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 14.91(2) 10,167 0.65(1) -- 0.73(1) 27.1
For the Year Ended
December 31
1997................... 31.38 4,713,322 0.45 -- 1.11 31.6
1996................... 24.33 2,994,209 0.46 -- 1.59 42.3
1995................... 34.10 1,876,884 0.48 -- 2.23 52.9
1994................... (1.89) 1,163,158 0.50 -- 2.17 63.8
HARTFORD MONEY MARKET HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 4.89 1,257,436 0.47 0.47 4.81 --
Class 1B............... 4.71 8,804 0.65 0.72 4.63 --
For the Year Ended
December 31, 1998
Class 1A............... 5.25 872,486 0.45 -- 5.12 --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 3.76(2) 2,179 0.64(1) -- 4.81(1) --
For the Year Ended
December 31
1997................... 5.31 612,480 0.44 -- 5.21 --
1996................... 5.09 542,586 0.44 -- 5.04 --
1995................... 5.74 339,709 0.45 -- 5.57 --
1994................... 3.95 321,465 0.47 -- 3.99 --
HARTFORD ADVISERS HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 10.59 14,082,895 0.65 0.66 2.46 38.4
Class 1B............... 10.39 137,318 0.83 0.91 2.28 38.4
For the Year Ended
December 31, 1998
Class 1A............... 24.66 11,805,411 0.63 -- 2.40 36.7
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 11.96(2) 34,714 0.83(1) -- 2.22(1) 36.7
For the Year Ended
December 31
1997................... 24.51 8,283,912 0.63 -- 2.44 36.1
1996................... 16.62 5,879,529 0.63 -- 2.92 53.8
1995................... 28.34 4,262,769 0.65 -- 3.57 63.5
1994................... (2.74) 3,034,034 0.65 -- 3.34 60.0
HARTFORD CAPITAL
APPRECIATION HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 37.46 7,963,003 0.66 0.66 0.46 66.4
Class 1B............... 37.21 22,993 0.84 0.91 0.28 66.4
For the Year Ended
December 31, 1998
Class 1A............... 15.48 5,807,480 0.64 -- 0.59 51.2
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 1.65(2) 5,942 0.82(1) -- 0.30(1) 51.2
For the Year Ended
December 31
1997................... 22.34 4,802,992 0.64 -- 0.44 57.6
1996................... 20.70 3,386,670 0.65 -- 0.60 85.4
1995................... 30.25 2,157,892 0.68 -- 0.95 78.6
1994................... 2.50 1,158,644 0.72 -- 0.40 73.3
</TABLE>
(1) Annualized.
(2) Not annualized.
(4) Information presented relates to a share of capital stock outstanding for
the indicated period.
(5) Excluding mortgage dollar rolls.
(6) Per share amounts have been restated to reflect a reverse stock split for
Class B shares effective September 17, 1999 (see Note 12).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-81
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
SELECTED PER-SHARE DATA (4)
---------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE AT NET GAIN TOTAL FROM FROM NET IN EXCESS OF
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INCOME
--------- ---------- ------------ ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
HARTFORD MORTGAGE
SECURITIES HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... $1.085 $0.068 $(0.052) $ 0.016 $(0.062) $ --
From inception
November 9, 1999 ,
through December 31,
1999
Class 1B............... 1.107 0.009 (0.016) (0.007) (0.061) --
For the Year Ended
December 31
1998................... 1.084 0.067 0.006 0.073 (0.067) (0.003)
1997................... 1.056 0.071 0.022 0.093 (0.065) --
1996................... 1.071 0.069 (0.018) 0.051 (0.066) --
1995................... 0.984 0.068 0.087 0.155 (0.068) --
1994................... 1.075 0.068 (0.086) (0.018) (0.068) --
HARTFORD INDEX HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 3.570 0.034 0.685 0.719 (0.040) --
From inception
November 9, 1999 ,
through December 31,
1999
Class 1B............... 3.922 0.004 0.298 0.302 (0.032) --
For the Year Ended
December 31
1998................... 2.878 0.032 0.759 0.791 (0.027) --
1997................... 2.382 0.035 0.692 0.727 (0.035) --
1996................... 2.028 0.044 0.393 0.437 (0.044) --
1995................... 1.522 0.044 0.507 0.551 (0.044) --
1994................... 1.546 0.038 (0.024) 0.014 (0.038) --
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 1.355 0.019 0.520 0.539 (0.018) --
Class 1B............... 1.357(6) 0.017(6) 0.519(6) 0.536(6) (0.017)(6) --(6)
For the Year Ended
December 31, 1998
Class 1A............... 1.294 0.021 0.147 0.168 (0.019) --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 1.396(6) 0.004(6) (0.021)(6) (0.017)(6) (0.022)(6) --(6)
For the Year Ended
December 31
1997................... 1.407 0.022 (0.019) 0.003 (0.012) --
1996................... 1.306 0.023 0.140 0.163 (0.025) --
1995................... 1.176 0.020 0.141 0.161 (0.020) --
1994................... 1.215 0.016 (0.039) (0.023) (0.016) --
HARTFORD DIVIDEND AND
GROWTH HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 2.160 0.034 0.075 0.109 (0.035) --
Class 1B............... 2.267(6) 0.024(6) 0.077(6) 0.101(6) (0.034)(6) --(6)
For the Year Ended
December 31, 1998
Class 1A............... 1.952 0.033 0.280 0.313 (0.035) --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 2.253(6) 0.016(6) 0.068(6) 0.084(6) (0.070)(6) --(6)
For the Year Ended
December 31
1997................... 1.547 0.035 0.445 0.480 (0.031) --
1996................... 1.317 0.034 0.258 0.292 (0.034) --
1995................... 0.994 0.033 0.323 0.356 (0.033) --
From inception,
March 8, 1994, through
December 31, 1994..... 1.000 0.024 (0.005) 0.019 (0.024) --
HARTFORD INTERNATIONAL
ADVISERS HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 1.155 0.040 0.227 0.267 (0.025) --
From inception
November 9, 1999,
through December 31,
1999
Class 1B............... 1.300 0.004 0.118 0.122 (0.025) --
For the Year Ended
December 31
1998................... 1.175 0.064 0.082 0.146 (0.039) (0.006)
1997................... 1.167 0.056 0.006 0.062 (0.050) --
1996................... 1.109 0.040 0.093 0.133 (0.051) --
From inception,
March 1, 1995, through
December 31, 1995..... 1.000 0.030 0.126 0.156 (0.030) --
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Management fees were waived until assets (excluding assets contributed by
companies affiliated with The Hartford Investment Management Company)
reached $20 million. The ratio of 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.
(4) Information presented relates to a share of capital stock outstanding for
the indicated period.
(5) Excluding mortgage dollar rolls.
(6) Per share amounts have been restated to reflect a reverse stock split for
Class B shares effective September 17, 1999 (see Note 12).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-82
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
DISTRIBUTIONS NET ASSET
FROM NET REALIZED NET INCREASE VALUE AT
GAINS ON DISTRIBUTIONS TOTAL (DECREASE) IN END
INVESTMENTS FROM CAPITAL DISTRIBUTIONS NET ASSET VALUE OF PERIOD
----------------- ------------- ------------- ----------------- ---------
<S> <C> <C> <C> <C> <C>
HARTFORD MORTGAGE
SECURITIES HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... $ -- $ -- $(0.062) $(0.046) $1.039
From inception
November 9, 1999 ,
through December 31,
1999
Class 1B............... -- -- (0.061) (0.068) 1.039
For the Year Ended
December 31
1998................... -- (0.002) (0.072) 0.001 1.085
1997................... -- -- (0.065) 0.028 1.084
1996................... -- -- (0.066) (0.015) 1.056
1995................... -- -- (0.068) 0.087 1.071
1994................... (0.005) -- (0.073) (0.091) 0.984
HARTFORD INDEX HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... (0.060) -- (0.100) 0.619 4.189
From inception
November 9, 1999 ,
through December 31,
1999
Class 1B............... (0.003) -- (0.035) 0.267 4.189
For the Year Ended
December 31
1998................... (0.072) -- (0.099) 0.692 3.570
1997................... (0.196) -- (0.231) 0.496 2.878
1996................... (0.039) -- (0.083) 0.354 2.382
1995................... (0.001) -- (0.045) 0.506 2.028
1994................... -- -- (0.038) (0.024) 1.522
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... -- -- (0.018) 0.521 1.876
Class 1B............... --(6) --(6) (0.017)(6) 0.519(6) 1.876(6)
For the Year Ended
December 31, 1998
Class 1A............... (0.088) -- (0.107) 0.061 1.355
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... --(6) --(6) (0.022)(6) (0.039)(6) 1.357(6)
For the Year Ended
December 31
1997................... (0.104) -- (0.116) (0.113) 1.294
1996................... (0.037) -- (0.062) 0.101 1.407
1995................... (0.011) -- (0.031) 0.130 1.306
1994................... -- -- (0.016) (0.039) 1.176
HARTFORD DIVIDEND AND
GROWTH HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... (0.085) -- (0.120) (0.011) 2.149
Class 1B............... (0.183)(6) --(6) (0.217)(6) (0.116)(6) 2.151(6)
For the Year Ended
December 31, 1998
Class 1A............... (0.070) -- (0.105) 0.208 2.160
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... --(6) --(6) (0.070)(6) 0.014(6) 2.267(6)
For the Year Ended
December 31
1997................... (0.044) -- (0.075) 0.405 1.952
1996................... (0.028) -- (0.062) 0.230 1.547
1995................... -- -- (0.033) 0.323 1.317
From inception,
March 8, 1994, through
December 31, 1994..... (0.001) -- (0.025) (0.006) 0.994
HARTFORD INTERNATIONAL
ADVISERS HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... -- -- (0.025) 0.242 1.397
From inception
November 9, 1999,
through December 31,
1999
Class 1B............... -- -- (0.025) 0.097 1.397
For the Year Ended
December 31
1998................... (0.032) (0.089) (0.166) (0.020) 1.155
1997................... (0.004) -- (0.054) 0.008 1.175
1996................... (0.024) -- (0.075) 0.058 1.167
From inception,
March 1, 1995, through
December 31, 1995..... (0.017) -- (0.047) 0.109 1.109
<CAPTION>
RATIOS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER
RETURN (IN THOUSANDS) WAIVERS WAIVERS NET ASSETS RATE
----------- -------------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
HARTFORD MORTGAGE
SECURITIES HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 1.52% $ 339,767 0.48% 0.48% 5.98% 472.0%
From inception
November 9, 1999 ,
through December 31,
1999
Class 1B............... (0.60)(2) 9 0.66(1) 0.73(1) 5.80(1) 472.0
For the Year Ended
December 31
1998................... 6.72 356,834 0.46 -- 6.18 207.8
1997................... 9.01 325,702 0.45 -- 6.60 46.5(5)
1996................... 4.99 325,495 0.45 -- 6.67 201.0
1995................... 16.17 327,565 0.47 -- 6.50 489.4
1994................... (1.61) 304,147 0.48 -- 6.65 365.7
HARTFORD INDEX HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 20.49 2,581,436 0.43 0.43 0.95 2.8
From inception
November 9, 1999 ,
through December 31,
1999
Class 1B............... 7.81(2) 11 0.61(1) 0.68(1) 0.77(1) 2.8
For the Year Ended
December 31
1998................... 28.06 1,846,117 0.40 -- 1.21 4.5
1997................... 32.61 1,123,455 0.39 -- 1.52 5.7
1996................... 22.09 621,065 0.39 -- 2.07 19.3
1995................... 36.55 318,253 0.39 -- 2.46 1.5
1994................... 0.94 157,660 0.45 -- 2.50 1.8
HARTFORD INTERNATIONAL
OPPORTUNITIES HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 39.86 1,574,836 0.78 0.78 1.20 133.2
Class 1B............... 39.61 3,203 0.96 1.03 1.02 133.2
For the Year Ended
December 31, 1998
Class 1A............... 13.16 1,196,694 0.77 -- 1.51 157.4
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... (1.13)(2) 663 0.94(1) -- 0.71(1) 157.4
For the Year Ended
December 31
1997................... 0.34 1,092,946 0.77 -- 1.48 72.7
1996................... 12.91 996,543 0.79 -- 1.74 70.0
1995................... 13.93 686,475 0.86 -- 1.60 55.6
1994................... (1.94) 563,765 0.85 -- 1.42 46.4
HARTFORD DIVIDEND AND
GROWTH HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 5.31 3,207,733 0.68 0.68 1.60 55.9
Class 1B............... 5.12 16,087 0.86 0.93 1.42 55.9
For the Year Ended
December 31, 1998
Class 1A............... 16.42 3,031,293 0.66 -- 1.81 48.2
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 3.67(2) 8,600 0.85(1) -- 1.57(1) 48.2
For the Year Ended
December 31
1997................... 31.89 1,994,653 0.68 -- 2.21 34.2
1996................... 22.91 879,980 0.73 -- 2.52 56.9
1995................... 36.37 265,070 0.77 -- 2.91 41.4
From inception,
March 8, 1994, through
December 31, 1994..... 1.60(2) 55,066 0.83(1) 1.64(1) 3.52(1)(3) 27.8
HARTFORD INTERNATIONAL
ADVISERS HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 23.16 396,147 0.85 0.85 2.59 141.5
From inception
November 9, 1999,
through December 31,
1999
Class 1B............... 9.35(2) 11 1.03(1) 1.10(1) 2.42(1) 141.5
For the Year Ended
December 31
1998................... 13.35 285,853 0.86 -- 2.77 161.1
1997................... 5.52 207,582 0.87 -- 3.08 162.5
1996................... 12.25 104,486 0.96 -- 3.24 95.2
From inception,
March 1, 1995, through
December 31, 1995..... 13.24(2) 31,264 0.65(1) 1.23(1) 3.36(1)(3) 47.2
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Management fees were waived until assets (excluding assets contributed by
companies affiliated with The Hartford Investment Management Company)
reached $20 million. The ratio of 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.
(4) Information presented relates to a share of capital stock outstanding for
the indicated period.
(5) Excluding mortgage dollar rolls.
(6) Per share amounts have been restated to reflect a reverse stock split for
Class B shares effective September 17, 1999 (see Note 12).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-83
<PAGE>
HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
SELECTED PER-SHARE DATA (4)
---------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE AT NET GAIN TOTAL FROM FROM NET IN EXCESS OF
BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INCOME
--------- ---------- ------------ ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
HARTFORD SMALL COMPANY
HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... $1.321 $(0.005) $ 0.875 $ 0.870 $ -- $ --
Class 1B............... 1.323(6) (0.004)(6) 0.871(6) 0.867(6) --(6) --(6)
For the Year Ended
December 31, 1998
Class 1A............... 1.202 (0.002) 0.141 0.139 -- --
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... 1.340(6) (0.002)(6) (0.015)(6) (0.017)(6) --(6) --(6)
For the Year Ended
December 31
1997................... 1.069 0.001 0.195 0.196 (0.001) --
From inception,
August 9, 1996 through
December 31, 1996..... 1.000 0.002 0.069 0.071 (0.002) --
HARTFORD MIDCAP HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 1.439 -- 0.725 0.725 -- --
From inception
November 9, 1999,
through December 31,
1999
Class 1B............... 1.758 -- 0.373 0.373 -- --
For the Year Ended
December 31
1998................... 1.137 (0.001) 0.303 0.302 -- --
From inception,
July 15, 1997 through
December 31, 1997..... 1.000 0.001 0.137 0.138 (0.001) --
HARTFORD GROWTH AND
INCOME HLS FUND
For the Year Ended
December 31, 1999
Class 1A............... 1.186 0.004 0.255 0.259 (0.004) --
Class 1B............... 1.185 0.006 0.250 0.256 (0.002) --
From inception,
May 29, 1998 through
December 31, 1998
Class 1A............... 1.000 0.005 0.185 0.190 (0.004) --
Class 1B............... 1.000 0.009 0.179 0.188 (0.003) --
HARTFORD HIGH YIELD HLS
FUND
For the Year Ended
December 31, 1999
Class 1A............... 1.017 0.060 (0.013) 0.047 (0.059) --
Class 1B............... 1.017 0.085 (0.039) 0.046 (0.058) --
From inception,
September 30, 1998
through December 31,
1998
Class 1A............... 1.000 0.019 0.017 0.036 (0.019) --
Class 1B............... 1.000 0.022 0.014 0.036 (0.019) --
HARTFORD GLOBAL LEADERS
HLS FUND
For the Year Ended
December 31, 1999
Class 1A............... 1.285 0.003 0.642 0.645 (0.003) --
Class 1B............... 1.285 0.007 0.634 0.641 -- --
From inception,
September 30, 1998
through December 31,
1998
Class 1A............... 1.000 0.001 0.318 0.319 (0.002) --
Class 1B............... 1.000 0.002 0.316 0.318 (0.001) --
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Management fees were waived until assets (excluding assets contributed by
companies affiliated with The Hartford Investment Management Company)
reached $20 million. The ratio of 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.
(4) Information presented relates to a share of capital stock outstanding for
the indicated period.
(6) Per share amounts have been restated to reflect a reverse stock split for
Class B shares effective September 17, 1999 (see Note 12).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-84
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
DISTRIBUTIONS NET ASSET
FROM NET REALIZED NET INCREASE VALUE AT
GAINS ON DISTRIBUTIONS TOTAL (DECREASE) IN END
INVESTMENTS FROM CAPITAL DISTRIBUTIONS NET ASSET VALUE OF PERIOD
----------------- ------------- ------------- ----------------- ---------
<S> <C> <C> <C> <C> <C>
HARTFORD SMALL COMPANY
HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... $(0.003) $ -- $(0.003) $0.867 $2.188
Class 1B............... (0.003)(6) --(6) (0.003)(6) 0.864(6) 2.187(6)
For the Year Ended
December 31, 1998
Class 1A............... (0.020) -- (0.020) 0.119 1.321
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... --(6) --(6) 0.000(6) (0.017)(6) 1.323(6)
For the Year Ended
December 31
1997................... (0.062) -- (0.063) 0.133 1.202
From inception,
August 9, 1996 through
December 31, 1996..... -- -- (0.002) 0.069 1.069
HARTFORD MIDCAP HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... (0.111) -- (0.111) 0.614 2.053
From inception
November 9, 1999,
through December 31,
1999
Class 1B............... (0.078) -- (0.078) 0.295 2.053
For the Year Ended
December 31
1998................... -- -- 0.000 0.302 1.439
From inception,
July 15, 1997 through
December 31, 1997..... -- -- (0.001) 0.137 1.137
HARTFORD GROWTH AND
INCOME HLS FUND
For the Year Ended
December 31, 1999
Class 1A............... (0.009) -- (0.013) 0.246 1.432
Class 1B............... (0.009) -- (0.011) 0.245 1.430
From inception,
May 29, 1998 through
December 31, 1998
Class 1A............... -- -- (0.004) 0.186 1.186
Class 1B............... -- -- (0.003) 0.185 1.185
HARTFORD HIGH YIELD HLS
FUND
For the Year Ended
December 31, 1999
Class 1A............... -- -- (0.059) (0.012) 1.005
Class 1B............... -- -- (0.058) (0.012) 1.005
From inception,
September 30, 1998
through December 31,
1998
Class 1A............... -- -- (0.019) 0.017 1.017
Class 1B............... -- -- (0.019) 0.017 1.017
HARTFORD GLOBAL LEADERS
HLS FUND
For the Year Ended
December 31, 1999
Class 1A............... (0.014) -- (0.017) 0.628 1.913
Class 1B............... (0.014) -- (0.014) 0.627 1.912
From inception,
September 30, 1998
through December 31,
1998
Class 1A............... (0.032) -- (0.034) 0.285 1.285
Class 1B............... (0.032) -- (0.033) 0.285 1.285
<CAPTION>
RATIOS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER
RETURN (IN THOUSANDS) WAIVERS WAIVERS NET ASSETS RATE
----------- -------------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
HARTFORD SMALL COMPANY
HLS FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 65.83% $ 757,302 0.78% 0.78% (0.45)% 181.3%
Class 1B............... 65.54 10,200 0.96 1.03 (0.63) 181.3
For the Year Ended
December 31, 1998
Class 1A............... 11.62 350,734 0.77 -- (0.24) 235.7
From inception
April 1, 1998, through
December 31, 1998
Class 1B............... (1.30)(2) 696 0.95(1) -- (0.46)(1) 235.7
For the Year Ended
December 31
1997................... 18.38 210,769 0.77 -- 0.08 222.2
From inception,
August 9, 1996 through
December 31, 1996..... 7.15(2) 42,812 0.72(1) 0.88(1) 0.31(1)(3) 31.8
HARTFORD MIDCAP HLS
FUND, INC.
For the Year Ended
December 31, 1999
Class 1A............... 51.81 672,678 0.79 0.79 (0.15) 120.7
From inception
November 9, 1999,
through December 31,
1999
Class 1B............... 25.99(2) 36 0.97(1) 1.04(1) (0.32)(1) 120.7
For the Year Ended
December 31
1998................... 26.57 143,494 0.79 -- (0.15) 134.1
From inception,
July 15, 1997 through
December 31, 1997..... 13.81(2) 27,589 0.46(1) 0.86(1) 0.45(1)(3) 46.1
HARTFORD GROWTH AND
INCOME HLS FUND
For the Year Ended
December 31, 1999
Class 1A............... 21.82 201,857 0.82 0.82 0.63 53.8
Class 1B............... 21.61 14 1.00 1.07 0.45 53.8
From inception,
May 29, 1998 through
December 31, 1998
Class 1A............... 19.05(2) 25,312 0.28(1) 0.84(1) 1.42(1)(3) 29.6
Class 1B............... 18.82 11 0.44(1) 1.00(1) 1.34(1)(3) 29.6
HARTFORD HIGH YIELD HLS
FUND
For the Year Ended
December 31, 1999
Class 1A............... 4.70 52,731 0.72 0.84 8.36(3) 46.9
Class 1B............... 4.52 102 0.90 1.09 8.18(3) 46.9
From inception,
September 30, 1998
through December 31,
1998
Class 1A............... 3.59(2) 14,482 0.35(1) 0.92(1) 8.04(1)(3) 15.4
Class 1B............... 3.53(2) 102 0.53(1) 1.10(1) 7.77(1)(3) 15.4
HARTFORD GLOBAL LEADERS
HLS FUND
For the Year Ended
December 31, 1999
Class 1A............... 50.37 179,675 0.86 0.91 0.54(3) 207.4
Class 1B............... 50.11 69 1.04 1.16 0.36(3) 207.4
From inception,
September 30, 1998
through December 31,
1998
Class 1A............... 31.88(2) 5,761 0.89(1) 1.46(1) 0.63(1)(3) 47.9
Class 1B............... 31.82(2) 39 0.98(1) 1.55(1) 0.59(1)(3) 47.9
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Management fees were waived until assets (excluding assets contributed by
companies affiliated with The Hartford Investment Management Company)
reached $20 million. The ratio of 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.
(4) Information presented relates to a share of capital stock outstanding for
the indicated period.
(6) Per share amounts have been restated to reflect a reverse stock split for
Class B shares effective September 17, 1999 (see Note 12).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT.
MF-85
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF HARTFORD BOND HLS FUND, INC.,
HARTFORD STOCK HLS FUND, INC.,
HARTFORD MONEY MARKET HLS FUND, INC., HARTFORD ADVISERS HLS FUND, INC., HARTFORD
CAPITAL APPRECIATION HLS FUND, INC.,
HARTFORD MORTGAGE SECURITIES HLS FUND, INC., HARTFORD INDEX HLS FUND, INC.,
HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC., HARTFORD DIVIDEND AND
GROWTH HLS FUND, INC.,
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC., HARTFORD SMALL COMPANY HLS
FUND, INC.,
HARTFORD MIDCAP HLS FUND, INC. AND HARTFORD SERIES FUND, INC.:
- --------------------------------------------------------------------------------
We have audited the accompanying statements of net assets of Hartford Bond HLS
Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Money Market HLS Fund, Inc.,
Hartford Advisers HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc.,
Hartford Mortgage Securities HLS Fund, Inc., Hartford Index HLS Fund, Inc.,
Hartford International Opportunities HLS Fund, Inc., Hartford Dividend and
Growth HLS Fund, Inc., Hartford International Advisers HLS Fund, Inc., Hartford
Small Company HLS Fund, Inc. and Hartford Series Fund, Inc. (consisting of
Hartford Global Leaders HLS Fund, Hartford Growth and Income HLS Fund and
Hartford High Yield HLS Fund) and the statement of assets and liabilities of
Hartford MidCap HLS Fund, Inc. (all Maryland corporations) (the Funds) as of
December 31, 1999, and the related statement of operations, statements of
changes in net assets and financial highlights for the periods then ended. 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, 1999, by correspondence with
the custodian bank. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Hartford Bond HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Money
Market HLS Fund, Inc., Hartford Advisers HLS Fund, Inc., Hartford Capital
Appreciation HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc.,
Hartford Index HLS Fund, Inc., Hartford International Opportunities HLS Fund,
Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford International
Advisers HLS Fund, Inc., Hartford Small Company HLS Fund, Inc., Hartford MidCap
HLS Fund, Inc. and Hartford Series Fund, Inc. (consisting of Hartford Global
Leaders HLS Fund, Hartford Growth and Income HLS Fund and Hartford High Yield
HLS Fund) as of December 31, 1999 and the results of their operations, the
changes in their net assets and the financial highlights for the periods then
ended in conformity with generally accepted accounting principles.
Hartford, Connecticut
February 14, 2000 ARTHUR ANDERSEN LLP
MF-86
<PAGE>
- --------------------------------------------------------------------------------
Hartford Life Insurance Companies
P.O. Box 2999 | BULK RATE |
Hartford, CT 06104-2999 | U.S. POSTAGE |
| PAID |
| PERMIT #20 |
| HOLLISTON, MA |
| 01746 |
Printed in U.S.A. -Registered Trademark- 2000 The Hartford, Hartford, CT 06115
