<PAGE>
ITT Hartford Life Insurance Companies
Separate
Accounts
and
Mutual Funds
--------------
ANNUAL REPORT
DECEMBER 31, 1995
-------------------------------
[LOGO]
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Letter to Contractholders....................................................... 1
Performance Summary of Hartford Mutual Funds.................................... 2
Investment Review............................................................... 3
HARTFORD LIFE INSURANCE COMPANIES SEPARATE ACCOUNT FINANCIAL STATEMENTS AND
FOOTNOTES
Hartford Life Insurance Company DC Variable Account-I......................... 12
Hartford Life Insurance Company Separate Account One.......................... 20
Hartford Life Insurance Company Separate Account Two.......................... 28
Hartford Life Insurance Company Separate Account Variable Life One............ 46
Hartford Life Insurance Company Separate Account Five......................... 54
ITT Hartford Life & Annuity Insurance Company Separate Account One............ 62
ITT Hartford Life & Annuity Insurance Company Separate Account Five........... 70
HARTFORD MUTUAL FUNDS
Statements of Net Assets as of December 31, 1995:
Hartford Bond Fund, Inc..................................................... 78
Hartford Stock Fund, Inc.................................................... 80
HVA Money Market Fund, Inc.................................................. 82
Hartford Advisers Fund, Inc................................................. 83
Hartford U.S. Government Money Market Fund, Inc............................. 86
Hartford Capital Appreciation Fund, Inc..................................... 87
Hartford Mortgage Securities Fund, Inc...................................... 90
Hartford Index Fund, Inc.................................................... 92
Hartford International Opportunities Fund, Inc.............................. 97
Hartford Dividend and Growth Fund, Inc...................................... 100
Hartford International Advisers Fund, Inc................................... 102
Statements of Operations for the Year Ended December 31, 1995:
Hartford Mutual Funds....................................................... 106
Statements of Changes in Net Assets for the Years Ended December 31, 1995 and
December 31, 1994:
Hartford Mutual Funds....................................................... 108
Notes to Financial Statements:
Hartford Mutual Funds....................................................... 112
Hartford Mutual Funds Financial Highlights...................................... 118
Calvert Responsibly Invested Balanced Portfolio Financial Statements and
Footnotes..................................................................... 121
</TABLE>
Contract owners should refer to the prospectus provided to them at the time of
purchase of their contract for a description of investment alternatives
available in the Separate Accounts. This prospectus, along with the financial
information contained in this report, provides them with complete and
up-to-date financial information regarding the Separate Accounts.
This report is prepared for the general information of contract owners and is
not an offer of contracts. It should not be used in connection with any offer,
except in conjunction with the appropriate prospectus which contains all
pertinent information including the applicable sales, administrative and other
charges.
<PAGE>
LETTER TO CONTRACTHOLDERS
Dear Contractholders,
The economy provided the ideal background for the financial markets in 1995.
Despite some early fears about overheating, the rate of economic growth was
cut in half during the year, relieving inflation pressures and opening the
door for the Federal Reserve to reverse course and reduce short-term interest
rates. By year-end, interest rates were back near their 1993 lows and the
financial markets had experienced one of the best years in decades. Bonds, as
measured by The Lehman Government/Corporate Bond Index, had their best year
since 1985. The major stock market indexes made a series of new highs during
the year, as the Dow Jones Industrial Average had its best year since 1975,
and the S&P 500 had its best year since 1958.
With the so called "soft landing" accomplished in 1995, the question is how
much longer the current expansion can be sustained. Although the rate of
growth appears to have fallen back again in the fourth quarter after
rebounding in the third, the slowing was partly the result of temporary
factors that are expected to fade as 1996 progresses. In the meantime, the
Federal Reserve has demonstrated its willingness to act whenever growth
appears to be weakening. The Board lowered short-term interest rates for the
third time since last July on January 31 when it reduced both its Federal
Funds rate and the Discount rate by 25 basis points.
Until there is evidence to the contrary, that indicates that the expansion can
be sustained and the current consensus calls for continued moderate economic
growth and low inflation in 1996--with growth coming in a bit below the
average early in the year and a bit above later on. Over the near term, if the
forecast is wrong it is likely to be because growth is weaker than expected as
high debt levels coupled with tepid job growth and income gains lead to more
severe cuts than currently anticipated in consumer spending. Further out, the
risk appears to shift to more rapid growth than forecast.
Given the outlook, the markets appeared to be reasonably valued at year-end.
Although we do not expect that both stocks and bonds can replicate their 1995
rates of return in 1996, we believe the long-term outlook is positive. Over
the short term, we see a risk that the markets may temporarily over discount
good news. Bonds could correct if the economic growth or inflation statistics
prove stronger than expected. Stocks could be vulnerable to earnings
disappointments.
Lowndes A. Smith Joseph H. Gareau
CHAIRMAN PRESIDENT
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1
<PAGE>
PERFORMANCE SUMMARY OF HARTFORD MUTUAL FUNDS
<TABLE>
<CAPTION>
FUNDS
TOTAL RETURNS FOR THE YEARS ENDED
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock................... 34.10% (1.89)% 14.34% 10.04% 24.58% (3.87)% 26.02% 19.00% 5.41% 12.33% 31.49% 0.57%
Bond.................... 18.49 (3.95) 10.24 5.53 16.43 8.39 12.10 7.60 (0.01) 12.19 20.62 13.21
HVA Money Market........ 5.74 3.95 2.94 3.63 6.01 8.09 9.10 7.40 6.49 6.77 8.53 10.73
U.S. Government Money
Market................. 5.52 3.67 2.68 3.22 5.61 7.52 8.43 6.92 5.75 6.29 8.07 10.24
Advisers................ 28.34 (2.74) 12.25 8.30 20.33 1.26 21.72 14.24 6.08 12.70 26.85 7.39
Capital Appreciation.... 30.25 2.50 20.80 16.98 53.99 (10.90) 24.11 26.37 (4.31) 9.03 36.18 10.90
Mortgage Securities..... 16.17 (1.61) 6.31 4.64 14.71 9.70 13.13 8.38 2.64 11.13 20.61 --
Index................... 36.55 0.94 9.12 6.82 29.53 (3.99) 30.47 16.35 (12.91) -- -- --
International
Opportunities.......... 13.93 (1.94) 33.73 (4.43) 13.00 (11.76) -- -- -- -- -- --
Dividend and Growth..... 36.37 1.96 -- -- -- -- -- -- -- -- -- --
International
Advisers............... 15.84 -- -- -- -- -- -- -- -- -- -- --
MARKET INDEXES
Standard & Poor's 500
Stock Index............ 37.52% 1.31% 10.06% 7.61% 30.39% (3.11)% 31.62% 16.60% 5.49% 18.66% 31.70% 6.26%
Shearson Lehman
Gov't/Corp. Bond
Index.................. 19.24 (3.51) 11.03 7.58 16.13 8.28 14.24 7.58 2.29 15.62 21.30 15.02
90-Day Treasury Bills... 5.80 4.14 3.12 3.70 5.90 7.95 8.67 6.56 5.97 6.41 7.97 10.27
EAFEGDP................. 11.16 7.81 33.56 (9.65) 10.73 -- -- -- -- -- -- --
<FN>
The inception dates of the Funds are as follows: Stock and Bond
Securities--August 31, 1977, HVA Money Market--June 30, 1980, U.S. Government
Money Market and 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, and
International Advisers--March 1, 1995.
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 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.
</TABLE>
2
<PAGE>
INVESTMENT REVIEW - HARTFORD BOND FUND, INC.
DECEMBER 31, 1995
For the year ended December 31, 1995, the Hartford Bond Fund returned 18.5%
(net of mutual fund expenses) versus 19.2% for its benchmark index, the Lehman
Government/ Corporate Bond Index.
We managed the Fund conservatively during the period emphasizing quality.
Throughout the quarter we maintained a well diversified corporate position
comprised of various sectors and issuers within the investment grade corporate
market. Our corporate holdings outperformed duration equivalent treasuries
although relative to the benchmark index, return was slightly lower due to our
preference for high quality and shorter maturities. Performance benefited from
our short duration collateralized mortgage obligation (CMO) position which also
outperformed duration equivalent treasuries and by our reduction in mortgage
pass-throughs which were sold in favor of corporate issues and treasuries.
Relative performance was hindered slightly by our conservative duration
position during the early part of the bond market rally.
Late in the period, we lengthened duration to match that of the market. We also
began purchasing additional corporates as spreads widened relative to
treasuries. We will continue to emphasize quality in the portfolio.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD BOND FUND, INC. BOND LGC
<S> <C> <C>
1/1/86 $10,000 $10,000
1986 $11,219 $11,562
1987 $11,218 $11,827
1988 $12,070 $12,723
1989 $13,531 $14,535
1990 $14,666 $15,739
1991 $17,076 $18,277
1992 $18,020 $19,663
1993 $19,865 $21,831
1994 $19,081 $21,065
1995 $22,609 $25,118
Value on 12/31/95:
Bond $22,609
LGC $25,118
$10,000 Initial Investment Made 01/01/86
Average Annual Total Returns Bond LGC
1 Year 18.49% 19.24%
5 Year 9.06% 9.80%
10 Year 8.51% 9.65%
Past performance is not predictive of future
performance.
Performance is net of mutual fund expenses and does
not
reflect charges and expenses of the insurance
contract.
</TABLE>
3
<PAGE>
INVESTMENT REVIEW - HARTFORD STOCK FUND, INC.
DECEMBER 31, 1995
For the twelve months ending December 31, 1995, the Hartford Stock Fund
returned 34.1% (net of mutual fund expenses). The Fund underperformed its
benchmark as the S&P 500 Index returned 37.5%.
1995 was a remarkable year for the U.S. equity market. However, beneath the
glossy gains on the surface, 1995 was a difficult year for equity managers as
many of the strongest groups during the first half of the year turned very weak
during the second half in response to a slowing economy and unsustainable
valuations. The most consistent positive performance throughout the year was
provided by stocks in the health care and finance sectors; stocks in the
consumer discretionary sector, including auto and retail and the materials
sector such as steel, were consistently poor performers for most of the year.
In 1995 the Fund lagged the S&P 500 Index for two primary reasons. The Fund's
cash position, which averaged about 5%, was a drag in the ebullient market
environment. In addition, our premature exit from some hot technology names
like INTEL and CISCO contributed to the Fund's performance relative to the
market. However, many of the Fund's top ten holdings performed quite well.
MCDONALD'S, PHILIP MORRIS and KIMBERLY CLARK were all up over 50%. We reduced
the Fund's cyclicality during the summer and increased its stable growth
holdings at the right time. The Fund began the year overweighted in health care
and remained that way throughout.
As we look ahead, we believe 1996 will be a less ebullient year with much of
the action taking place outside the U.S. as emerging markets, Europe and Japan
recover from a difficult year in 1995. With that in mind, we have taken a
modest position, about 2.5%, in non-U.S. securities and we continue to look for
ways to participate in non-U.S. markets in high quality, liquid situations. In
sum, we expect that 1996 won't be as good as 1995 in terms of absolute
investment returns, but we expect that it should provide positive returns.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD STOCK FUND, INC. STOCK S&P 500
<S> <C> <C>
1/1/86 $10,000 $10,000
1986 $11,233 $11,866
1987 $11,841 $12,491
1988 $14,090 $14,565
1989 $17,757 $19,170
1990 $17,070 $18,574
1991 $21,265 $24,219
1992 $23,400 $26,062
1993 $26,756 $28,684
1994 $26,250 $29,059
1995 $35,202 $39,963
Value on 12/31/95:
Stock $35,202
S&P 500 $39,963
$10,000 Initial Investment Made 01/01/86
Average Annual Total Returns Stock S&P 500
1 Year 34.10% 37.52%
5 Year 15.59% 16.56%
10 Year 13.42% 14.86%
Past performance is not predictive of future
performance.
Performance is net of mutual fund expenses and does
not
reflect charges and expenses of the insurance
contract.
</TABLE>
4
<PAGE>
INVESTMENT REVIEW - HARTFORD ADVISERS FUND, INC.
DECEMBER 31, 1995
For the twelve months ending December 31, 1995, the Hartford Advisers Fund
returned 28.3% (net of mutual fund expenses). The Fund outperformed its
Composite benchmark, which returned 27.5%. The Composite Index is a combination
of three indices with the following weightings: 55% S&P 500 Index, 35% Lehman
Brothers Government/ Corporate Bond Index (LGC), and 10% 90-day Treasury Bill
Index.
In 1995, the obsession with overly rapid economic growth, accelerating
inflation, and an ever tighter Federal Reserve monetary policy which tormented
the fixed income market during 1994 gave way to an environment of moderate and
slowing economic growth, decelerating inflation, and the prospect of an easier
Federal Reserve monetary policy. As the year ended, the market's psychology
continued to be one characterized by a benign outlook for the economy and
inflation, one which favors both low inflation and further cuts in short-term
interest rates.
As of December 31, 1995, the fixed income portfolio's allocation to government
bonds was nearly equal to that of the Lehman Government/Corporate Bond Index
(76% of assets). With regard to fixed income sector performance in 1995, the
Fund's underweighting in corporate bonds and overweighting in mortgage-backed
securities relative to its benchmark marginally held performance back.
Equities now represent 61% of the Portfolio's assets. We remain comfortable
with this equity commitment and intend to maintain the level as we enter 1996.
We continue to believe that corporate earnings will rise and that equity
valuations are fair. With interest rates at the lower end of our expected
range, we find fixed income somewhat less attractive, another reason to favor
equities.
(Please refer to the Investment Review for the Stock Fund for a review of the
Advisers Fund's equity component and a review of the overall equity market.)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD ADVISERS FUND, INC. ADVISERS S&P 500 LGC
<S> <C> <C> <C>
1/1/86 $10,000 $10,000 $10,000
1986 $11,270 $11,866 $11,562
1987 $11,955 $12,491 $11,827
1988 $13,658 $14,565 $12,723
1989 $16,624 $19,170 $14,535
1990 $16,834 $18,574 $15,739
1991 $20,256 $24,219 $18,277
1992 $21,937 $26,062 $19,663
1993 $24,624 $28,684 $21,831
1994 $23,950 $29,059 $21,065
1995 $30,737 $39,963 $25,118
Value on 12/31/95:
Advisers $30,737
S&P 500 $39,963
LGC $25,118
$10,000 Initial Investment Made 01/01/86
Average Annual Total Returns Advisers S&P 500 LGC
1 Year 28.34% 37.52% 19.24%
5 Year 12.80% 16.56% 9.80%
10 Year 11.85% 14.86% 9.65%
Past performance is not predictive of future
performance.
Performance is net of mutual fund expenses and does
not
reflect charges and expenses of the insurance
contract.
</TABLE>
5
<PAGE>
INVESTMENT REVIEW - HARTFORD CAPITAL APPRECIATION FUND, INC.
DECEMBER 31, 1995
For the twelve months ending December 31, 1995, the Hartford Capital
Appreciation Fund returned 30.3% (net of mutual fund expenses). The Fund lagged
the 40%/60% Composite of the S&P 500 and the Russell 2500 Indices which
returned 34.1%.
The market environment during 1995 was a relatively difficult one for those
Capital Appreciation managers who practice their trade using small
capitalization stocks as an important part of their approach. Small cap stocks
as measured by the Russell 2000 Index lagged the broader market (S&P 500 Index)
during 1995 by over 9%. On average, the small cap sector of the portfolio
represented 50% of assets during 1995; this small cap exposure hurt the Fund's
return relative to its benchmark. The Fund's continued high level of exposure
to small cap companies may result in relatively volatile and sometimes
unfavorable relative performance in specific quarters. However, we believe the
Fund's smaller-cap bias will provide contractholders with overall results
superior to that of the general equity market over the longer term.
The Fund's strategy remains dual-faceted. We maintain an emphasis on smaller
companies with dynamic earnings growth prospects, and couple that with an
opportunistic trading approach to larger cap stocks where we see a catalyst for
outperformance.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD CAPITAL APPRECIATION FUND, INC.
<S> <C> <C> <C>
Capital Appreciation S&P 500 Russell 2500
1/1/86 $10,000 $10,000 $10,000
1986 $10,903 $11,866 $11,198
1987 $10,433 $12,491 $10,674
1988 $13,184 $14,565 $13,100
1989 $16,363 $19,170 $15,645
1990 $14,579 $18,574 $13,317
1991 $22,451 $24,219 $19,538
1992 $26,263 $26,062 $22,699
1993 $31,726 $28,684 $26,454
1994 $32,519 $29,059 $26,171
1995 $42,356 $39,963 $34,467
Value on 12/31/95:
Capital Appreciation $42,356
S&P 500 $39,963
Russell 2500 $34,467
$10,000 Initial Investment Made 01/01/86
Average Annual Total Returns
Capital Apprec. S&P 500 Russell 2500
1 Year 30.25% 37.52% 31.70%
5 Year 23.77% 16.56% 20.95%
10 Year 15.50% 14.86% 13.17%
Past performance is not predictive of future
performance.
Performance is net of mutual fund expenses and does
not
reflect charges and expenses of the insurance
contract.
</TABLE>
6
<PAGE>
INVESTMENT REVIEW - HARTFORD MORTGAGE SECURITIES FUND, INC.
DECEMBER 31, 1995
For the year ended December 31, 1995, the Hartford Mortgage Securities Fund
returned 16.2% (net of mutual fund expenses) versus 16.8% for its benchmark
index, the Lehman Mortgage-Backed Securities Index.
Fund performance benefited during the period because of our positions in
longer-dated Treasuries, which outperformed mortgages. We protected against
prepayment risk during the rally by increasing positions in GNMAs, which are
less sensitive to prepayments than other pass-through securities, and by
reducing high coupon holdings in favor of lower coupons. Relative performance
was hindered by our conservative positioning during the early part of the bond
market rally. Overall, the Fund returned slightly more than the Index, but not
enough to cover expenses.
Although mortgages underperformed other sectors of the bond market in the first
six months of 1995, they provided strong positive total returns. Late in the
period, as interest rates backed up in response to stronger economic data, the
relative attractiveness of mortgages increased, and we reversed some of our
earlier trades, reducing Treasury positions in favor of pass-throughs.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD MORTGAGE SECURITIES FUND, INC.
<S> <C> <C>
Mortgage Securities LEH MBS
1/1/86 $10,000 $10,000
1986 $11,113 $11,343
1987 $11,406 $11,830
1988 $12,362 $12,861
1989 $13,985 $14,835
1990 $15,342 $16,426
1991 $17,599 $19,008
1992 $18,415 $20,333
1993 $19,577 $21,723
1994 $19,262 $21,374
1995 $22,377 $24,964
Value on 12/31/95
Mortgage Securities $22,377
LEH MBS $24,964
$10,000 Initial Investment Made 01/01/86
Average Annual Total Returns
Mortgage Securities LEH MBS
1 Year 16.17% 16.80%
5 Year 7.84% 8.73%
10 Year 8.38% 9.58%
Past performance is not predictive of future
performance.
Performance is net of mutual fund expenses and does
not
reflect charges and expenses of the insurance
contract.
</TABLE>
7
<PAGE>
INVESTMENT REVIEW - HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
DECEMBER 31, 1995
For the twelve months ending December 31, 1995, the Hartford International
Opportunities Fund returned 13.9% (net of mutual fund expenses). The Fund
outperformed its benchmark, the Morgan Stanley Capital International--Europe
Australia Far East--Gross Domestic Product-- Weighted Index (EAFE GDP Net),
which returned 11.2%.
In general, markets throughout the world were up during 1995. In the U.S.,
stocks (S&P 500 Index) returned 37.6% for the year. This is the best total
return in almost forty years. In Japan, (the world's second largest equity
market) total returns were rather modest by contrast at 4.3% (local) or 0.9%
(U.S. dollar) for the full year. The U.K. equity market (the world's third
largest) provided a strong 22.2% return for the year. In many other relatively
mature and developed equity markets there were positive results for the year.
Negative returns were widespread in the emerging markets of Latin America,
Asia, and Europe.
The Fund's largest country weightings are in Japan, Germany, France, and the
U.K. Relative to its benchmark, the Fund's underweighting in Japan and
overweighting in the U.K. contributed to performance while its underweighting
in Germany held performance back. Stock selection in countries such as Spain,
Sweden, and the Netherlands contributed to its outperformance relative to its
benchmark.
Going forward, we remain positive on the Japanese market and believe the recent
set of positive corporate profits is just the beginning of more good news to
come on the earnings front. The Fund continues to focus on Japanese companies
that will benefit from a domestic (Japan) recovery and monetary realignment. In
Europe, the focus is on more economically-sensitive stocks as we believe the
current economic slowdown is largely a mid-cycle inventory correction problem
and not the peak of the region's economic cycle.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
<S> <C> <C>
International Opportunities EAFEGDP
07/02/90 $10,000 $10,000
1990 $8,824 $8,469
1991 $9,971 $9,376
1992 $9,529 $8,471
1993 $12,744 $11,314
1994 $12,496 $12,198
1995 $14,237 $13,559
Value on 12/31/95:
International Opportunities $14,237
EAFEGDP $13,559
$10,000 Initial Investment Made 07/02/90
Average Annual Total Returns
International Opportunities EAFEGDP
1 Year 13.93% 11.16%
5 Year 10.04% 9.87%
SI 07/02/90 6.75% 5.70%
Past performance is not predictive of future
performance.
Performance is net of mutual fund expenses and does
not
reflect charges and expenses of the insurance
contract.
</TABLE>
8
<PAGE>
INVESTMENT REVIEW - HARTFORD DIVIDEND AND GROWTH FUND, INC.
DECEMBER 31, 1995
The Hartford Dividend and Growth Fund's return was 36.4% (net of mutual fund
expenses) for the twelve months ending December 31, 1995, trailing the S&P 500
Index's return of 37.5%.
Factors which led to the unfolding of a favorable environment for the equity
market this year included falling inflation and short-term interest rates,
slowing economic growth with continued corporate earnings increases. The top
three performing sectors for the year were finance, health care and technology.
The Fund's large positions in the finance and health care sectors were
important contributors to its return for the year. Both of these sectors offer
companies with attractive dividend yields and growth opportunities which are
consistent with the Fund's conservative approach. Technology stocks drove the
market for most of the year, making the strong return of the Dividend and
Growth Fund surprising, given its conservative orientation and low exposure to
technology. However, as technology stocks tailed off during the fourth quarter,
the Fund gained ground on the S&P 500 Index.
The past year provided investors with fabulous absolute returns. As we look
ahead, we expect slower earnings growth and a far less ebullient market. While
there is nothing on the economic horizon that raises "red flags", the sheer
strength of the market in 1995 must give one pause. In a more "typical" market
environment (returns closer to the 10% long-term average), we expect that the
Fund's conservative approach and stock selection focus can continue to provide
attractive results to investors.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD DIVIDEND & GROWTH FUND, INC.
<S> <C> <C>
Dividend & Growth S&P 500
03/09/94 $10,000 $10,000
3/31/94 $9,707 $9,554
6/30/94 $9,935 $9,594
9/30/94 $10,419 $10,062
12/31/94 $10,196 $10,060
3/31/95 $11,034 $11,039
6/30/95 $11,831 $12,091
9/30/95 $12,945 $13,051
12/31/95 $13,903 $13,837
Average Annual Total Returns
1 Year 36.37% 37.52%
SI 03/09/94 19.93% 19.61%
$10,000 Initial Investment Made
03/09/94
Value on 12/31/95:
Dividend & Growth $13,903
S&P 500 $13,837
</TABLE>
9
<PAGE>
INVESTMENT REVIEW - HARTFORD INTERNATIONAL ADVISERS FUND, INC.
DECEMBER 31, 1995
The Hartford International Advisers Fund returned 15.8% (net of mutual fund
expenses) for the ten month period ending December 31, 1995. (The Fund began
operations on March 1, 1995.) The Fund outperformed its Composite benchmark,
which returned 13.7%. The Composite Index is a combination of three indices
with the following weightings: 55% Morgan Stanley Capital International--Europe
Australia Far East--Gross Domestic Product--Weighted Index (EAFE GDP Net), 35%
Salomon Brothers non-U.S. World Government Bond Hedged Index, and 10% 90-day
Treasury Bill Index.
In 1995, weaker economic fundamentals emerged in nearly all regions which
spurred central bank rate cuts and supported rising fixed income markets in
every major country, except Japan. International fixed income markets as
measured by the Salomon Brothers non-U.S. World Government Bond Hedged Index
returned 18% for the year. The performance stars were the higher yielding
markets of Europe such as Spain, Sweden and Italy.
Over the year, the fixed income Portfolio's longer aggregate duration and
larger positions in Europe, Canada, and Australasia and smaller allocation to
Japan contributed to the Fund's absolute and relative performance versus its
benchmark. As of December 31, 1995, the Hartford International Advisers Fund
was overweighted in international equities (64%) over fixed income securities
(28%) and cash (8%). Going forward, as we believe equities will outperform
bonds by a small margin, and both will do better than cash, we will trim the
Fund's overweight to stocks by about 5% and increase its allocation to bonds by
about 10%.
(Please refer to the Investment Review for the International Opportunities Fund
for a review of the International Advisers Fund's equity component and a review
of the overall international equity market.)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
<S> <C> <C>
International
Advisers 55/35/10
03/01/95 $10,000 $10,000
3/31/95 $10,296 $10,331
6/30/95 $10,703 $10,649
9/30/95 $11,040 $10,997
12/31/95 $11,584 $11,374
Value on 12/31/95:
International Advisers $11,584
55/35/10 $11,374
$10,000 Initial Investment Made 03/01/95
Average Annual Total Returns
Advisers 55/35/10
SI 03/01/95 15.84% 13.73%
Past performance is not predictive of future
performance.
Performance is net of mutual fund expenses and does
not
reflect charges and expenses of the insurance
contract.
</TABLE>
10
<PAGE>
HARTFORD LIFE INSURANCE COMPANIES
SEPARATE ACCOUNT FINANCIAL
STATEMENTS AND FOOTNOTES
<PAGE>
DC Variable Account-I
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 34,396,849
Cost $ 33,411,142
Market Value......... $35,368,904 -- -- --
Hartford Stock Fund,
Inc.
Shares 99,971,067
Cost $244,757,812
Market Value......... -- $ 352,599,953 -- --
HVA Money Market Fund,
Inc.
Shares 20,729,609
Cost $ 20,729,609
Market Value......... -- -- $20,729,609 --
Hartford Advisers Fund,
Inc.
Shares 239,266,752
Cost $351,170,808
Market Value......... -- -- -- $468,589,578
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 8,528,814
Cost $ 8,528,814
Market Value......... -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 82,124,179
Cost $208,393,013
Market Value......... -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 24,127,558
Cost $ 25,469,811
Market Value......... -- -- -- --
Hartford Index Fund,
Inc.
Shares 22,991,134
Cost $ 32,824,388
Market Value......... -- -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 36,346,995
Cost $ 40,558,142
Market Value......... -- -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 5,870,313
Cost $ 7,103,183
Market Value......... -- -- -- --
Calvert Responsibly
Invested Balanced
Portfolio
Shares 10,203,905
Cost $ 14,838,692
Market Value......... -- -- -- --
Dividends Receivable... -- -- -- --
Due from Hartford Life
Insurance Company..... 38,329 152,605 -- 168,820
Receivable from fund
shares sold........... -- -- 9,821 --
-------------- ------------- ------------ --------------
Total Assets........... 35,407,233 352,752,558 20,739,430 468,758,398
-------------- ------------- ------------ --------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- -- 10,267 --
Payable for fund shares
purchased............. 38,342 152,589 -- 169,053
-------------- ------------- ------------ --------------
Total Liabilities...... 38,342 152,589 10,267 169,053
-------------- ------------- ------------ --------------
Net Assets (variable
annuity contract
liabilities).......... $35,368,891 $ 352,599,969 $20,729,163 $468,589,345
-------------- ------------- ------------ --------------
-------------- ------------- ------------ --------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 8,629,583 39,271,257 7,883,589 128,414,839
Unit Price............. $ 4.098563 $ 8.978576 $ 2.629407 $ 3.649028
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT CAPITAL MORTGAGE INTERNATIONAL
MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ----------------- ----------------------- ----------- ------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 34,396,849
Cost $ 33,411,142
Market Value......... -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 99,971,067
Cost $244,757,812
Market Value......... -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 20,729,609
Cost $ 20,729,609
Market Value......... -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 239,266,752
Cost $351,170,808
Market Value......... -- -- -- -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 8,528,814
Cost $ 8,528,814
Market Value......... $8,528,814 -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 82,124,179
Cost $208,393,013
Market Value......... -- $286,585,461 -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 24,127,558
Cost $ 25,469,811
Market Value......... -- -- $25,846,888 -- --
Hartford Index Fund,
Inc.
Shares 22,991,134
Cost $ 32,824,388
Market Value......... -- -- -- $46,624,181 --
Hartford International
Opportunities Fund,
Inc.
Shares 36,346,995
Cost $ 40,558,142
Market Value......... -- -- -- -- $47,457,907
Hartford Dividend and
Growth Fund, Inc.
Shares 5,870,313
Cost $ 7,103,183
Market Value......... -- -- -- -- --
Calvert Responsibly
Invested Balanced
Portfolio
Shares 10,203,905
Cost $ 14,838,692
Market Value......... -- -- -- -- --
Dividends Receivable... -- -- -- -- --
Due from Hartford Life
Insurance Company..... 198,748 219,295 16,041 49,689 102,519
Receivable from fund
shares sold........... -- -- -- -- --
----------- ----------------- ------------ ----------- ------------------
Total Assets........... 8,727,562 286,804,756 25,862,929 46,673,870 47,560,426
----------- ----------------- ------------ ----------- ------------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- -- -- -- --
Payable for fund shares
purchased............. 196,640 219,445 16,407 50,323 102,555
----------- ----------------- ------------ ----------- ------------------
Total Liabilities...... 196,640 219,445 16,407 50,323 102,555
----------- ----------------- ------------ ----------- ------------------
Net Assets (variable
annuity contract
liabilities).......... $8,530,922 $286,585,311 $25,846,522 $46,623,547 $47,457,871
----------- ----------------- ------------ ----------- ------------------
----------- ----------------- ------------ ----------- ------------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 4,649,736 52,277,892 11,066,833 19,815,691 35,670,594
Unit Price............. $ 1.834711 $ 5.481960 $ 2.335494 $ 2.352860 $ 1.330448
<CAPTION>
CALVERT
DIVIDEND AND RESPONSIBLY INVESTED
GROWTH FUND BALANCED PORTFOLIO
SUB-ACCOUNT SUB-ACCOUNT
------------ --------------------
<S> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Stock Fund,
Inc.
Shares
Cost
Market Value......... -- --
HVA Money Market Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Advisers Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares
Cost
Market Value......... -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Mortgage
Securities Fund, Inc.
Shares
Cost
Market Value......... -- --
Hartford Index Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford International
Opportunities Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Dividend and
Growth Fund, Inc.
Shares
Cost
Market Value......... $7,731,320 --
Calvert Responsibly
Invested Balanced
Portfolio
Shares
Cost
Market Value......... -- $17,377,250
Dividends Receivable... -- --
Due from Hartford Life
Insurance Company..... 10,753 12,969
Receivable from fund
shares sold........... -- --
------------ --------------------
Total Assets........... 7,742,073 17,390,219
------------ --------------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- --
Payable for fund shares
purchased............. 10,747 10,300
------------ --------------------
Total Liabilities...... 10,747 10,300
------------ --------------------
Net Assets (variable
annuity contract
liabilities).......... $7,731,326 $17,379,919
------------ --------------------
------------ --------------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 6,317,047 9,008,691
Unit Price............. $ 1.223883 $ 1.929239
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
<PAGE>
DC VARIABLE ACCOUNT-I
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 2,089,337 $ 6,730,103 $1,185,632 $14,663,204
EXPENSES:
Mortality and expense
undertakings.......... (368,829) (3,462,427) (243,896) (4,641,992)
------------- ------------ ------------ -------------
Net investment income
(loss).............. 1,720,508 3,267,676 941,736 10,021,212
------------- ------------ ------------ -------------
Capital gains income... -- 10,831,040 -- 4,358,491
------------- ------------ ------------ -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (339,180) (54,314) -- 75,118
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 3,665,224 69,832,568 -- 81,907,322
------------- ------------ ------------ -------------
Net gains (losses) on
investments......... 3,326,044 69,778,254 -- 81,982,440
------------- ------------ ------------ -------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 5,046,552 $ 83,876,970 $ 941,736 $96,362,143
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT CAPITAL MORTGAGE INTERNATIONAL
MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ------------------- --------------- ------------ ------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $449,949 $ 2,273,940 $1,586,426 $ 878,552 $ 713,722
EXPENSES:
Mortality and expense
undertakings.......... (96,055) (2,711,596) (278,303) (306,041) (509,735)
-------- ------------------- --------------- ------------ ------------------
Net investment income
(loss).............. 353,894 (437,656) 1,308,123 572,511 203,987
-------- ------------------- --------------- ------------ ------------------
Capital gains income... -- 10,643,508 -- 11,084 398,201
-------- ------------------- --------------- ------------ ------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... -- 7,253 12,159 8,314 (24)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 47,212,298 1,978,276 9,882,350 4,748,990
-------- ------------------- --------------- ------------ ------------------
Net gains (losses) on
investments......... -- 47,219,551 1,990,435 9,890,664 4,748,966
-------- ------------------- --------------- ------------ ------------------
Net increase
(decrease) in net
assets resulting
from operations..... $353,894 $57,425,403 $3,298,558 $ 10,474,259 $5,351,154
-------- ------------------- --------------- ------------ ------------------
-------- ------------------- --------------- ------------ ------------------
<CAPTION>
CALVERT
DIVIDEND AND RESPONSIBLY INVESTED
GROWTH FUND BALANCED PORTFOLIO
SUB-ACCOUNT SUB-ACCOUNT
------------ --------------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends.............. $63,605 $1,045,620
EXPENSES:
Mortality and expense
undertakings.......... (24,549) (166,041)
------------ -----------
Net investment income
(loss).............. 39,056 879,579
------------ -----------
Capital gains income... -- 505,861
------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (1,256) 6,838
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 628,136 2,139,789
------------ -----------
Net gains (losses) on
investments......... 626,880 2,146,627
------------ -----------
Net increase
(decrease) in net
assets resulting
from operations..... 6$65,936 $3,532,067
------------ -----------
------------ -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
15
<PAGE>
DC Variable Account-I
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 1,720,508 $ 3,267,676 $ 941,736 $ 10,021,212
Capital gains income... -- 10,831,040 -- 4,358,491
Net realized gain
(loss) on security
transactions.......... (339,180) (54,314) -- 75,118
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 3,665,224 69,832,568 -- 81,907,322
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from
operations............ 5,046,552 83,876,970 941,736 96,362,143
-------------- ------------- ------------ -------------
UNIT TRANSACTIONS:
Purchases.............. 3,288,728 34,201,304 2,505,970 52,514,435
Net transfers.......... (610,025) (13,265,561) (1,811,345) (26,837,016)
Surrenders............. (4,164,050) (20,089,201) (4,919,611) (17,046,664)
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (1,485,347) 846,542 (4,224,986) 8,630,755
-------------- ------------- ------------ -------------
Total increase
(decrease) in net
assets................ 3,561,205 84,723,512 (3,283,250) 104,992,898
NET ASSETS:
Beginning of period.... 31,807,686 267,876,457 24,012,413 363,596,447
-------------- ------------- ------------ -------------
End of period.......... $ 35,368,891 $ 352,599,969 $ 20,729,163 $468,589,345
-------------- ------------- ------------ -------------
-------------- ------------- ------------ -------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------- ------------ -------------
OPERATIONS:
Net investment income
(loss)................ $ 1,652,986 $ 2,373,994 $ 613,882 $ 7,463,826
Capital gains income... 650,208 15,856,002 -- 10,712,050
Net realized gain
(loss) on security
transactions.......... (140,993) 39,836 -- 28,808
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (4,003,835) (26,606,667) -- (32,581,374)
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from
operations............ (1,841,634) (8,336,835) 613,882 (14,376,690)
-------------- ------------- ------------ -------------
UNIT TRANSACTIONS:
Purchases.............. 3,601,922 35,187,253 2,801,239 57,966,836
Net transfers.......... (6,164,436) (15,185,779) (1,191,454) (28,384,065)
Surrenders............. (1,013,995) (6,193,345) (988,021) (7,931,157)
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (3,576,509) 13,808,129 621,764 21,651,614
-------------- ------------- ------------ -------------
Total increase
(decrease) in net
assets................ (5,418,143) 5,471,294 1,235,646 7,274,924
NET ASSETS:
Beginning of period.... 37,225,829 262,405,163 22,776,767 356,321,523
-------------- ------------- ------------ -------------
End of period.......... $ 31,807,686 $ 267,876,457 $ 24,012,413 $363,596,447
-------------- ------------- ------------ -------------
-------------- ------------- ------------ -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
16
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT CAPITAL MORTGAGE INTERNATIONAL DIVIDEND AND
MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ----------------- ---------------- ------------ ------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 353,894 $ (437,656) $ 1,308,123 $ 572,511 $ 203,987 $ 39,056
Capital gains income... -- 10,643,508 -- 11,084 398,201 --
Net realized gain
(loss) on security
transactions.......... -- 7,253 12,159 8,314 (24) (1,256)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 47,212,298 1,978,276 9,882,350 4,748,990 628,136
----------- ----------------- ---------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 353,894 57,425,403 3,298,558 10,474,259 5,351,154 665,936
----------- ----------------- ---------------- ------------ ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. 1,272,247 45,563,679 2,927,551 6,364,336 10,718,211 558,780
Net transfers.......... (452,592) 1,352,403 (1,600,604) 3,808,836 (12,867,024) 6,590,369
Surrenders............. (1,052,797) (13,938,589) (706,307) (710,423) (952,636) (83,759)
----------- ----------------- ---------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (233,142) 32,977,493 620,640 9,462,749 (3,101,449) 7,065,390
----------- ----------------- ---------------- ------------ ------------------ ------------
Total increase
(decrease) in net
assets................ 120,752 90,402,896 3,919,198 19,937,008 2,249,705 7,731,326
NET ASSETS:
Beginning of period.... 8,410,170 196,182,415 21,927,324 26,686,539 45,208,166 --
----------- ----------------- ---------------- ------------ ------------------ ------------
End of period.......... $8,530,922 $286,585,311 $25,846,522 $ 46,623,547 $47,457,871 $ 7,731,326
----------- ----------------- ---------------- ------------ ------------------ ------------
----------- ----------------- ---------------- ------------ ------------------ ------------
CALVERT
RESPONSIBLY
INVESTED
U.S. GOVERNMENT CAPITAL MORTGAGE INTERNATIONAL BALANCED
MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND PORTFOLIO
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ----------------- ---------------- ------------ ------------------ ------------
OPERATIONS:
Net investment income
(loss)................ $ 196,800 $ (1,425,188) $ 1,223,281 $ 423,644 $ 62,453 $ 224,634
Capital gains income... -- 13,497,320 106,840 -- -- --
Net realized gain
(loss) on security
transactions.......... -- (78,820) (44,959) 1,961 (17,178) 2,432
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- (9,904,942) (1,952,973) (357,829) (1,594,350) (737,526)
----------- ----------------- ---------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 196,800 2,088,370 (667,811) 67,776 (1,549,075) (510,460)
----------- ----------------- ---------------- ------------ ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. 1,166,725 40,896,682 3,455,947 5,768,930 12,504,519 3,457,379
Net transfers.......... (933,407) 3,087,541 (4,681,841) (2,082,307) 10,413,798 (2,115,714)
Surrenders............. (248,081) (3,745,743) (712,860) (477,506) (426,493) (282,097)
----------- ----------------- ---------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (14,763) 40,238,480 (1,938,754) 3,209,117 22,491,824 1,059,568
----------- ----------------- ---------------- ------------ ------------------ ------------
Total increase
(decrease) in net
assets................ 182,037 42,326,850 (2,606,565) 3,276,893 20,942,749 549,108
NET ASSETS:
Beginning of period.... 8,228,133 153,855,565 24,533,889 23,409,646 24,265,417 11,328,048
----------- ----------------- ---------------- ------------ ------------------ ------------
End of period.......... $8,410,170 $196,182,415 $21,927,324 $ 26,686,539 $45,208,166 $11,877,156
----------- ----------------- ---------------- ------------ ------------------ ------------
----------- ----------------- ---------------- ------------ ------------------ ------------
<CAPTION>
CALVERT
RESPONSIBLY INVESTED
BALANCED PORTFOLIO
SUB-ACCOUNT
--------------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 879,579
Capital gains income... 505,861
Net realized gain
(loss) on security
transactions.......... 6,838
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 2,139,789
--------------------
Net increase (decrease)
in net assets
resulting from
operations............ 3,532,067
--------------------
UNIT TRANSACTIONS:
Purchases.............. 3,167,984
Net transfers.......... (811,408)
Surrenders............. (385,880)
--------------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 1,970,696
--------------------
Total increase
(decrease) in net
assets................ 5,502,763
NET ASSETS:
Beginning of period.... 11,877,156
--------------------
End of period.......... $17,379,919
--------------------
--------------------
OPERATIONS:
Net investment income
(loss)................
Capital gains income...
Net realized gain
(loss) on security
transactions..........
Net unrealized
appreciation
(depreciation) of
investments during the
period................
Net increase (decrease)
in net assets
resulting from
operations............
UNIT TRANSACTIONS:
Purchases..............
Net transfers..........
Surrenders.............
Net increase (decrease)
in net assets
resulting from unit
transactions..........
Total increase
(decrease) in net
assets................
NET ASSETS:
Beginning of period....
End of period..........
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
17
<PAGE>
DC VARIABLE ACCOUNT-I
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
DC Variable Account-I (the Account) is a separate investment account with
Hartford Life Insurance Company (the Company) and is registered with the
Securities and Exchange Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940, as amended. Both the Company and the
Account are subject to supervision and regulation by the Department of
Insurance of the State of Connecticut and the SEC. The Account invests
deposits by variable annuity contractholders of the Company in various
mutual funds (the Funds) as directed by the contractholders.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains
income represents dividends from the Funds which are characterized as
capital gains under tax regulations.
b) SECURITY VALUATION--The investment in shares of the Hartford and Calvert
Responsibly Invested Series mutual funds are valued at the closing net
asset value per share as determined by the appropriate Fund as of
December 31, 1995.
c) FEDERAL INCOME TAXES--For Federal income tax purposes, the Account
intends to qualify as a regulated investment company under Subchapter M
of the Internal Revenue Code by distributing substantially all of its
taxable income to variable annuity contract owners and otherwise
complying with the requirements for regulated investment companies.
Accordingly, no provision for Federal income taxes has been made. For
purposes of determining net realized taxable gains to be distributed,
the capital gains and losses of each Sub-Account within the Account are
combined. Distribution of any net realized capital gains so determined
will be made to the contract owners of the Sub-Account having net
realized capital gains. The cumulative realized losses used to offset
realized capital gains in each Sub-Account will be considered in the
determination of future distributions of realized capital gains to each
Sub-Account.
d) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the financial statements and
the reported amounts of income and expenses during the period. Operating
results in the future could vary from the amounts derived from
management's estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
a) MORTALITY AND EXPENSE UNDERTAKINGS--The Company, as issuer of variable
annuity contracts, provides the mortality and expense undertakings and,
with respect to the Account, receives a maximum annual fee of up to
1.25% of the Account's average daily net assets.
b) DEDUCTION OF ANNUAL MAINTENANCE FEE--Annual maintenance fees are
deducted through termination of units of interest from applicable
contract owners' accounts, in accordance with the terms of the
contracts.
4. DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS:
The Board of Directors of the Company declared distributions from net
investment income to contract owners of record on December 31, 1995.
<TABLE>
<CAPTION>
PER UNIT OF
INTEREST
SUB-ACCOUNT ACCOUNT
- ------------------------------------------ ---------------
<S> <C>
Bond Fund $ 0.199373
Stock Fund 0.083208
Money Market Fund 0.119455
Advisers Fund 0.078038
U.S. Government Money Market Fund 0.076111
Mortgage Securities Fund 0.118202
Index Fund 0.028892
International Opportunities Fund 0.005719
Dividend and Growth Fund 0.006183
Calvert Responsibly Invested Balanced
Portfolio Fund 0.097637
</TABLE>
Additionally, distributions from net realized capital gains were declared
by the Board of Directors to contract owners on December 31, 1995.
<TABLE>
<CAPTION>
PER UNIT OF
INTEREST
SUB-ACCOUNT ACCOUNT
- ------------------------------------------ ---------------
<S> <C>
Stock Fund $ 0.274418
Advisers Fund 0.034526
Capital Appreciation Fund 0.203734
Mortgage Securities Fund 0.001099
Index Fund 0.000979
International Opportunities Fund 0.010644
Calvert Responsibly Invested Balanced
Portfolio Fund 0.056912
</TABLE>
18
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO HARTFORD LIFE INSURANCE COMPANY
DC VARIABLE ACCOUNT-I AND TO THE
OWNERS OF UNITS OF INTEREST THEREIN:
We have audited the accompanying statement of assets & liabilities of Hartford
Life Insurance Company DC Variable Account-I (the Account) as of December 31,
1995, and the related statement of operations for the year then ended and
statements of changes in net assets for each of the two years in the period
then ended. These financial statements are the responsibility of the Account's
management. Our responsibility is to express an opinion on these financial
statements 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. 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 referred to above present fairly, in
all material respects, the financial posi-
tion of Hartford Life Insurance Company DC Variable
Account-I as of December 31, 1995, the results of its operations for the year
then ended and the changes in its net assets for each of the two years in the
period then ended in conformity with generally accepted accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
19
<PAGE>
Separate Account One
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
BOND FUND STOCK FUND
SUB-ACCOUNT SUB-ACCOUNT
------------- -----------
<S> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,763,388
Cost $ 1,763,172
Market Value......... $ 1,813,221 --
Hartford Stock Fund,
Inc.
Shares 1,259,184
Cost $ 2,943,139
Market Value......... -- $ 4,441,168
HVA Money Market Fund,
Inc.
Shares 2,963,452
Cost $ 2,963,452
Market Value......... -- --
Hartford Advisers Fund,
Inc.
Shares 8,181,787
Cost $10,530,000
Market Value......... -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 1,949,133
Cost $ 3,748,306
Market Value......... -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 3,269,658
Cost $ 3,536,736
Market Value......... -- --
Hartford Index Fund,
Inc.
Shares 77,390
Cost $ 90,526
Market Value......... -- --
Due from Hartford Life
Insurance Company..... 296,778 617
Receivable from fund
shares sold........... -- --
------------- -----------
Total Assets........... 2,109,999 4,441,785
------------- -----------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- --
Payable for fund shares
purchased............. 296,777 617
------------- -----------
Total Liabilities...... 296,777 617
------------- -----------
Net Assets (variable
life insurance
contract
liabilities).......... $ 1,813,222 $ 4,441,168
------------- -----------
------------- -----------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 876,806 1,371,392
Unit Price............. $ 2.067986 $ 3.238437
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
20
<PAGE>
<TABLE>
<CAPTION>
MONEY CAPITAL MORTGAGE
MARKET FUND ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------- ----------------- --------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,763,388
Cost $ 1,763,172
Market Value......... -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 1,259,184
Cost $ 2,943,139
Market Value......... -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 2,963,452
Cost $ 2,963,452
Market Value......... $2,963,452 -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 8,181,787
Cost $10,530,000
Market Value......... -- $16,023,539 -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 1,949,133
Cost $ 3,748,306
Market Value......... -- -- $6,801,811 -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 3,269,658
Cost $ 3,536,736
Market Value......... -- -- -- $3,502,653 --
Hartford Index Fund,
Inc.
Shares 77,390
Cost $ 90,526
Market Value......... -- -- -- -- $ 156,941
Due from Hartford Life
Insurance Company..... -- 3,792 157,441 487 --
Receivable from fund
shares sold........... 429,565 -- -- -- 24,645
----------- ------------- ----------------- --------------- -----------
Total Assets........... 3,393,017 16,027,331 6,959,252 3,503,140 181,586
----------- ------------- ----------------- --------------- -----------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 432,256 -- -- -- 24,645
Payable for fund shares
purchased............. -- 3,800 157,533 3,515 --
----------- ------------- ----------------- --------------- -----------
Total Liabilities...... 432,256 3,800 157,533 3,515 24,645
----------- ------------- ----------------- --------------- -----------
Net Assets (variable
life insurance
contract
liabilities).......... $2,960,761 $16,023,531 $6,801,719 $3,499,625 $ 156,941
----------- ------------- ----------------- --------------- -----------
----------- ------------- ----------------- --------------- -----------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Units Owned by
Participants.......... 1,808,166 5,695,951 1,762,250 1,707,624 64,493
Unit Price............. $ 1.637439 $ 2.813144 $ 3.859680 $ 2.049412 $ 2.433446
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
21
<PAGE>
SEPARATE ACCOUNT ONE
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
BOND FUND
SUB-ACCOUNT
-------------
<S> <C>
INVESTMENT INCOME:
Dividends.............. $98,407
EXPENSES:
Mortality and expense
undertakings.......... (13,692)
-------------
Net investment income
(loss).............. 84,715
-------------
Capital gains income... --
-------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 4,292
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 154,611
-------------
Net gains (losses) on
investments......... 158,903
-------------
Net increase
(decrease) in net
assets resulting
from operations..... $243,618
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
<TABLE>
<CAPTION>
MONEY CAPITAL MORTGAGE
STOCK FUND MARKET FUND ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ------------- ----------------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 93,564 $167,176 $ 537,579 $ 59,380 $225,242 $ 3,987
EXPENSES:
Mortality and expense
undertakings.......... (37,870) (26,916) (136,004) (56,321) (31,111) (1,664)
----------- ----------- ------------- ----------------- --------------- -----------
Net investment income
(loss).............. 55,694 140,260 401,575 3,059 194,131 2,323
----------- ----------- ------------- ----------------- --------------- -----------
Capital gains income... 153,099 -- 167,329 302,062 -- 72
----------- ----------- ------------- ----------------- --------------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 56,375 -- 254,170 86,124 1,992 34,111
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 921,139 -- 2,787,295 1,196,865 288,183 25,314
----------- ----------- ------------- ----------------- --------------- -----------
Net gains (losses) on
investments......... 977,514 -- 3,041,465 1,282,989 290,175 59,425
----------- ----------- ------------- ----------------- --------------- -----------
Net increase
(decrease) in net
assets resulting
from operations..... $1,186,307 $140,260 $3,610,369 $1,588,110 $484,306 $61,820
----------- ----------- ------------- ----------------- --------------- -----------
----------- ----------- ------------- ----------------- --------------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
<PAGE>
Separate Account One
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
BOND FUND
SUB-ACCOUNT
--------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 84,715
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 4,292
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 154,611
--------------
Net increase (decrease)
in net assets
resulting from
operations............ 243,618
--------------
UNIT TRANSACTIONS:
Net transfers.......... 316,804
Surrenders............. (145,617)
Net loan withdrawals... (70,051)
Cost of insurance and
other fees............ (21,923)
--------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 79,213
--------------
Total increase
(decrease) in net
assets................ 322,831
NET ASSETS:
Beginning of period.... 1,490,391
--------------
End of period.......... $ 1,813,222
--------------
--------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
BOND FUND
SUB-ACCOUNT
--------------
OPERATIONS:
Net investment income
(loss)................ $ 84,424
Capital gains income... 34,954
Net realized gain
(loss) on security
transactions.......... (2,033)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (201,856)
--------------
Net increase (decrease)
in net assets
resulting from
operations............ (84,511)
--------------
UNIT TRANSACTIONS:
Net transfers.......... (219,456)
Surrenders............. (26,377)
Loan withdrawals....... (74,506)
Cost of insurance...... (24,983)
--------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (345,322)
--------------
Total increase
(decrease) in net
assets................ (429,833)
NET ASSETS:
Beginning of period.... 1,920,224
--------------
End of period.......... $ 1,490,391
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
24
<PAGE>
<TABLE>
<CAPTION>
MONEY CAPITAL MORTGAGE
STOCK FUND MARKET FUND ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ------------- ----------------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 55,694 $ 140,260 $ 401,575 $ 3,059 $ 194,131 $ 2,323
Capital gains income... 153,099 -- 167,329 302,062 -- 72
Net realized gain
(loss) on security
transactions.......... 56,375 -- 254,170 86,124 1,992 34,111
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 921,139 -- 2,787,295 1,196,865 288,183 25,314
----------- ----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ 1,186,307 140,260 3,610,369 1,588,110 484,306 61,820
----------- ----------- ------------- ----------------- --------------- -----------
UNIT TRANSACTIONS:
Net transfers.......... (164,722) 403,260 (352,659) 28,785 (64,736) (77,047)
Surrenders............. (201,816) (318,000) (699,062) (127,746) (136,108) (791)
Net loan withdrawals... (70,797) (198,045) (343,038) (231,488) (69,099) --
Cost of insurance and
other fees............ (40,596) (141,010) (187,787) (48,115) (44,918) (2,377)
----------- ----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (477,931) (253,795) (1,582,546) (378,564) (314,861) (80,215)
----------- ----------- ------------- ----------------- --------------- -----------
Total increase
(decrease) in net
assets................ 708,376 (113,535) 2,027,823 1,209,546 169,445 (18,395)
NET ASSETS:
Beginning of period.... 3,732,792 3,074,296 13,995,708 5,592,173 3,330,180 175,336
----------- ----------- ------------- ----------------- --------------- -----------
End of period.......... $ 4,441,168 $2,960,761 $16,023,531 $6,801,719 $3,499,625 $156,941
----------- ----------- ------------- ----------------- --------------- -----------
----------- ----------- ------------- ----------------- --------------- -----------
MONEY CAPITAL MORTGAGE
STOCK FUND MARKET FUND ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ------------- ----------------- --------------- -----------
OPERATIONS:
Net investment income
(loss)................ $ 46,497 $ 90,826 $ 345,822 $ (28,296) $ 206,426 $ 3,204
Capital gains income... 236,643 -- 453,826 485,588 16,717 --
Net realized gain
(loss) on security
transactions.......... (20,713) -- (25,086) 6,972 (7,377) 3,219
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (385,338) -- (1,318,233) (363,873) (310,572) (4,499)
----------- ----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ (122,911) 90,826 (543,671) 100,391 (94,806) 1,924
----------- ----------- ------------- ----------------- --------------- -----------
UNIT TRANSACTIONS:
Net transfers.......... 107,279 264,281 (102,059) 35,545 (55,220) (30,371)
Surrenders............. (86,467) (230,770) (251,306) (22,032) (119,281) (6,692)
Loan withdrawals....... (63,052) (29,062) (125,220) (84,214) (162,353) --
Cost of insurance...... (43,091) (47,718) (208,377) (46,505) (50,108) (3,635)
----------- ----------- ------------- ----------------- --------------- -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (85,331) (43,269) (686,962) (117,206) (386,962) (40,698)
----------- ----------- ------------- ----------------- --------------- -----------
Total increase
(decrease) in net
assets................ (208,242) 47,557 (1,230,633) (16,815) (481,768) (38,774)
NET ASSETS:
Beginning of period.... 3,941,034 3,026,739 15,226,341 5,608,988 3,811,948 214,110
----------- ----------- ------------- ----------------- --------------- -----------
End of period.......... $ 3,732,792 $3,074,296 $13,995,708 $5,592,173 $3,330,180 $175,336
----------- ----------- ------------- ----------------- --------------- -----------
----------- ----------- ------------- ----------------- --------------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
25
<PAGE>
SEPARATE ACCOUNT ONE
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Separate Account One (the Account) is a separate investment account within
Hartford Life Insurance Company (the Company) and is registered with the
Securities and Exchange Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940, as amended. Both the Company and the
Account are subject to supervision and regulation by the Department of
Insurance of the State of Connecticut and the SEC. The Account invests
deposits by variable annuity contractholders of the Company in various
mutual funds (the Funds) as directed by the contractholders.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains income
represents dividends from the Funds which are characterized as capital
gains under tax regulations.
b) SECURITY VALUATION--The investment in shares of the Hartford mutual funds
are valued at the closing net asset value per share as determined by the
appropriate Fund as of December 31, 1995.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
d) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in
the future could vary from the amounts derived from management's
estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
a) MORTALITY AND EXPENSE UNDERTAKINGS--The Company, as issuer of variable
life insurance contracts, provides the mortality and expense undertakings
and, with respect to the Account, receives an annual fee of 0.90% of the
Account's average daily net assets.
b) DEDUCTION OF OTHER FEES--In accordance with the terms of the contracts,
the Company makes deductions for the cost of insurance, administrative
fees, and state premium taxes. These charges are deducted through
termination of units of interest from applicable contract owners'
accounts.
26
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT ONE AND TO THE
OWNERS OF UNITS OF INTEREST THEREIN:
We have audited the accompanying statement of assets & liabilities of Hartford
Life Insurance Company Separate Account One (the Account) as of December 31,
1995, and the related statement of operations for the year then ended and
statements of changes in net assets for each of the two years in the period
then ended. These financial statements are the responsibility of the Account's
management. Our responsibility is to express an opinion on these financial
statements 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. 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 referred to above present fairly, in
all material respects, the financial position of Hartford Life Insurance
Company Separate Account One as of December 31, 1995, the results of its
operations for the year then ended and the changes in its net assets for each
of the two years in the period then ended in conformity with generally accepted
accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
27
<PAGE>
Separate Account Two
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 205,553,955
Cost $ 209,932,335
Market Value......... $ 211,362,910 -- --
Hartford Stock Fund,
Inc.
Shares 273,568,580
Cost $ 749,838,526
Market Value......... -- $ 964,881,850 --
HVA Money Market Fund,
Inc.
Shares 188,634,435
Cost $ 188,634,435
Market Value......... -- -- $188,634,435
Hartford Advisers Fund,
Inc.
Shares 1,203,621,268
Cost $1,966,152,609
Market Value......... -- -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 1,541,454
Cost $ 1,541,454
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 308,044,714
Cost $ 855,351,988
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 206,683,299
Cost $ 222,736,253
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 81,559,076
Cost $ 121,425,129
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 251,443,857
Cost $ 282,513,031
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 87,758,037
Cost $ 98,018,237
Market Value......... -- -- --
Dividends receivable... -- -- --
Due from Hartford Life
Insurance Company..... 14,147,225 3,717,563 28,444
Receivable from fund
shares sold........... 32,125 23,525 26,370,639
--------------- ------------- ------------
Total Assets........... 225,542,260 968,622,938 215,033,518
--------------- ------------- ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 32,227 23,557 26,365,647
Payable for fund shares
purchased............. 14,147,211 3,717,611 28,449
--------------- ------------- ------------
Total Liabilities...... 14,179,438 3,741,168 26,394,096
--------------- ------------- ------------
Net Assets (variable
annuity contract
liabilities).......... $ 211,362,822 $ 964,881,770 $188,639,422
--------------- ------------- ------------
--------------- ------------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
28
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT CAPITAL MORTGAGE
ADVISERS FUND MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND INDEX FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- -------------------- ------------------ --------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 205,553,955
Cost $ 209,932,335
Market Value......... -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 273,568,580
Cost $ 749,838,526
Market Value......... -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 188,634,435
Cost $ 188,634,435
Market Value......... -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 1,203,621,268
Cost $1,966,152,609
Market Value......... $2,357,220,033 -- -- -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares 1,541,454
Cost $ 1,541,454
Market Value......... -- $1,541,454 -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 308,044,714
Cost $ 855,351,988
Market Value......... -- -- $1,074,971,315 -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 206,683,299
Cost $ 222,736,253
Market Value......... -- -- -- $221,411,551 --
Hartford Index Fund,
Inc.
Shares 81,559,076
Cost $ 121,425,129
Market Value......... -- -- -- -- $165,395,281
Hartford International
Opportunities Fund,
Inc.
Shares 251,443,857
Cost $ 282,513,031
Market Value......... -- -- -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 87,758,037
Cost $ 98,018,237
Market Value......... -- -- -- -- --
Dividends receivable... -- -- -- -- --
Due from Hartford Life
Insurance Company..... 2,347,036 71,753 11,230,672 51,950 101,649
Receivable from fund
shares sold........... 4,055 1,399 -- 29,773 324
--------------- ----------- ------------------ --------------- ------------
Total Assets........... 2,359,571,124 1,614,606 1,086,201,987 221,493,274 165,497,254
--------------- ----------- ------------------ --------------- ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 4,060 1,110 -- 31,313 280
Payable for fund shares
purchased............. 2,349,274 71,620 11,230,335 46,223 101,602
--------------- ----------- ------------------ --------------- ------------
Total Liabilities...... 2,353,334 72,730 11,230,335 77,536 101,882
--------------- ----------- ------------------ --------------- ------------
Net Assets (variable
annuity contract
liabilities).......... $2,357,217,790 $1,541,876 $1,074,971,652 $221,415,738 $165,395,372
--------------- ----------- ------------------ --------------- ------------
--------------- ----------- ------------------ --------------- ------------
<CAPTION>
INTERNATIONAL
OPPORTUNITIES DIVIDEND AND
FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT
----------------- -------------
<S> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Stock Fund,
Inc.
Shares
Cost
Market Value......... -- --
HVA Money Market Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Advisers Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford U.S.
Government Money
Market Fund, Inc.
Shares
Cost
Market Value......... -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Mortgage
Securities Fund, Inc.
Shares
Cost
Market Value......... -- --
Hartford Index Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford International
Opportunities Fund,
Inc.
Shares
Cost
Market Value......... $328,307,731 --
Hartford Dividend and
Growth Fund, Inc.
Shares
Cost
Market Value......... -- $115,579,090
Dividends receivable... -- --
Due from Hartford Life
Insurance Company..... 35,397 217,629
Receivable from fund
shares sold........... 75,096 108
----------------- -------------
Total Assets........... 328,418,224 115,796,827
----------------- -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 74,853 104
Payable for fund shares
purchased............. 35,406 217,519
----------------- -------------
Total Liabilities...... 110,259 217,623
----------------- -------------
Net Assets (variable
annuity contract
liabilities).......... $328,307,965 $115,579,204
----------------- -------------
----------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
29
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
CALVERT
RESPONSIBLY SMITH BARNEY
INVESTED DAILY
BALANCED INTERNATIONAL DIVIDEND
PORTFOLIO ADVISERS FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments:
Calvert Responsibly
Invested Balanced
Portfolio
Shares 1,035,297
Cost $1,571,868
Market Value......... $ 1,763,111 -- --
Hartford International
Advisers Fund, Inc.
Shares 6,850,619
Cost $7,419,698
Market Value......... -- $ 7,597,541 --
Smith Barney Daily
Dividend Fund, Inc.
Shares 568,219
Cost $ 568,219
Market Value......... -- -- $ 568,219
Smith Barney
Appreciation Fund,
Inc.
Shares 12,475
Cost $ 85,820
Market Value......... -- -- --
Smith Barney Government
and Agencies Fund
Shares 42,393
Cost $ 42,393
Market Value......... -- -- --
TCI Advantage Fund
Shares 7,580
Cost $ 45,726
Market Value......... -- -- --
TCI Growth Fund
Shares 57,488
Cost $ 686,665
Market Value......... -- -- --
Fidelity VIP Overseas
Fund
Shares 10,961
Cost $ 183,433
Market Value......... -- -- --
Fidelity VIP Asset
Manager
Shares 21,487
Cost $ 320,417
Market Value......... -- -- --
Fidelity VIP II
Contrafund Fund
Shares 144,097
Cost $1,968,435
Market Value......... -- -- --
Fidelity VIP Growth
Fund
Shares 75,494
Cost $2,238,863
Market Value......... -- -- --
Dividends receivable... 31,889 126,971 1,128
Receivable from fund
shares sold........... -- 5 1,398
--------------- ------------- ------------
Total Assets........... 1,795,000 7,724,517 570,745
--------------- ------------- ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- 5 1,398
Payable for fund shares
purchased............. 31,497 126,974 --
--------------- ------------- ------------
Total Liabilities...... 31,497 126,979 1,398
--------------- ------------- ------------
Net Assets (variable
annuity contract
liabilities).......... $ 1,763,503 $ 7,597,538 $ 569,347
--------------- ------------- ------------
--------------- ------------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
30
<PAGE>
<TABLE>
<CAPTION>
SMITH BARNEY SMITH BARNEY FIDELITY VIP
APPRECIATION GOVERNMENT AND TCI TCI OVERSEAS
FUND AGENCIES FUND ADVANTAGE FUND GROWTH FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- -------------------- ------------------ --------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Calvert Responsibly
Invested Balanced
Portfolio
Shares 1,035,297
Cost $1,571,868
Market Value......... -- -- -- -- --
Hartford International
Advisers Fund, Inc.
Shares 6,850,619
Cost $7,419,698
Market Value......... -- -- -- -- --
Smith Barney Daily
Dividend Fund, Inc.
Shares 568,219
Cost $ 568,219
Market Value......... -- -- -- -- --
Smith Barney
Appreciation Fund,
Inc.
Shares 12,475
Cost $ 85,820
Market Value......... $ 148,420 -- -- -- --
Smith Barney Government
and Agencies Fund
Shares 42,393
Cost $ 42,393
Market Value......... -- $ 42,393 -- -- --
TCI Advantage Fund
Shares 7,580
Cost $ 45,726
Market Value......... -- -- $ 46,921 -- --
TCI Growth Fund
Shares 57,488
Cost $ 686,665
Market Value......... -- -- -- $ 693,311 --
Fidelity VIP Overseas
Fund
Shares 10,961
Cost $ 183,433
Market Value......... -- -- -- -- $ 186,893
Fidelity VIP Asset
Manager
Shares 21,487
Cost $ 320,417
Market Value......... -- -- -- -- --
Fidelity VIP II
Contrafund Fund
Shares 144,097
Cost $1,968,435
Market Value......... -- -- -- -- --
Fidelity VIP Growth
Fund
Shares 75,494
Cost $2,238,863
Market Value......... -- -- -- -- --
Dividends receivable... -- 91 5 4,810 20,273
Receivable from fund
shares sold........... 632 85 -- -- --
--------------- ------- ------- --------------- ------------
Total Assets........... 149,052 42,569 46,926 698,121 207,166
--------------- ------- ------- --------------- ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 618 100 -- -- --
Payable for fund shares
purchased............. -- -- 5 4,699 20,273
--------------- ------- ------- --------------- ------------
Total Liabilities...... 618 100 5 4,699 20,273
--------------- ------- ------- --------------- ------------
Net Assets (variable
annuity contract
liabilities).......... $ 148,434 $ 42,469 $ 46,921 $ 693,422 $ 186,893
--------------- ------- ------- --------------- ------------
--------------- ------- ------- --------------- ------------
<CAPTION>
FIDELITY VIP
FIDELITY VIP II II
ASSET MANAGER CONTRAFUND FIDELITY VIP
FUND FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- ------------- -------------
<S> <C> <C> <C>
ASSETS:
Investments:
Calvert Responsibly
Invested Balanced
Portfolio
Shares
Cost
Market Value......... -- -- --
Hartford International
Advisers Fund, Inc.
Shares
Cost
Market Value......... -- -- --
Smith Barney Daily
Dividend Fund, Inc.
Shares
Cost
Market Value......... -- -- --
Smith Barney
Appreciation Fund,
Inc.
Shares
Cost
Market Value......... -- -- --
Smith Barney Government
and Agencies Fund
Shares
Cost
Market Value......... -- -- --
TCI Advantage Fund
Shares
Cost
Market Value......... -- -- --
TCI Growth Fund
Shares
Cost
Market Value......... -- -- --
Fidelity VIP Overseas
Fund
Shares
Cost
Market Value......... -- -- --
Fidelity VIP Asset
Manager
Shares
Cost
Market Value......... $ 339,277 -- --
Fidelity VIP II
Contrafund Fund
Shares
Cost
Market Value......... -- $ 1,985,660 --
Fidelity VIP Growth
Fund
Shares
Cost
Market Value......... -- -- $ 2,204,418
Dividends receivable... 323 5,820 14,634
Receivable from fund
shares sold........... -- -- --
-------- ------------- -------------
Total Assets........... 339,600 1,991,480 2,219,052
-------- ------------- -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- --
Payable for fund shares
purchased............. 322 5,787 14,566
-------- ------------- -------------
Total Liabilities...... 322 5,787 14,566
-------- ------------- -------------
Net Assets (variable
annuity contract
liabilities).......... $ 339,278 $ 1,985,693 $ 2,204,486
-------- ------------- -------------
-------- ------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
31
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
UNITS
OWNED BY UNIT CONTRACT
PARTICIPANTS PRICE LIABILITY
------------ --------- --------------
DEFERRED ANNUITY CONTRACTS IN THE ACCUMULATION
PERIOD:
<S> <C> <C> <C>
INDIVIDUAL SUB-ACCOUNTS:
Bond Fund Qualified 1.00%....................... 330,535 $3.614932 $ 1,194,862
Bond Fund Non-Qualified 1.00%................... 2,376,794 3.559970 8,461,314
Bond Fund 1.25%................................. 99,377,458 1.880012 186,830,814
Bond Fund .25%.................................. 166,334 1.239350 206,147
Stock Fund Qualified 1.00%...................... 939,764 5.545871 5,211,810
Stock Fund Non-Qualified 1.00%.................. 4,081,077 5.303060 21,642,195
Stock Fund 1.25%................................ 285,640,499 2.887494 824,785,225
Stock Fund .25%................................. 1,618,784 1.502213 2,431,758
Money Market Fund Qualified 1.00%............... 1,177,896 2.367583 2,788,767
Money Market Fund Non-Qualified 1.00%........... 10,104,811 2.368697 23,935,237
Money Market Fund 1.25%......................... 102,634,648 1.527530 156,777,504
Money Market Fund .25%.......................... 456,402 1.122937 512,510
Advisers Fund Qualified 1.00%................... 4,044,765 3.760737 15,211,298
Advisers Fund Non-Qualified 1.00%............... 13,795,777 3.760737 51,882,290
Advisers Fund 1.25%............................. 888,803,486 2.523174 2,242,605,847
Advisers Fund .25%.............................. 1,771,831 1.393346 2,468,774
U.S. Government Money Market Fund Qualified
1.00%.......................................... 19,616 1.892119 37,114
U.S. Government Money Market Fund 1.25%......... 47,846 1.468327 70,254
Capital Appreciation Fund Qualified 1.00%....... 891,369 5.633469 5,021,500
Capital Appreciation Fund Non-Qualified 1.00%... 3,858,935 5.630910 21,729,315
Capital Appreciation Fund 1.25%................. 292,670,757 3.364100 984,573,694
Capital Appreciation Fund .25%.................. 3,995,733 1.602738 6,404,113
Mortgage Securities Fund Qualified 1.00%........ 1,001,153 2.398054 2,400,819
Mortgage Securities Fund Non-Qualified 1.00%.... 9,957,413 2.398054 23,878,416
Mortgage Securities Fund 1.25%.................. 101,881,342 1.877823 191,315,127
Mortgage Securities Fund .25%................... 135,236 1.202163 162,576
Index Fund 1.25%................................ 65,954,010 2.359499 155,618,421
Index Fund .25%................................. 353,859 1.497118 529,769
International Opportunities Fund Qualified
1.00%.......................................... 403,256 1.347555 543,410
International Opportunities Fund Non-Qualified
1.00%.......................................... 1,764,588 1.347508 2,377,796
International Opportunities Fund 1.25%.......... 238,085,775 1.329133 316,447,660
International Opportunities Fund .25%........... 1,377,623 1.472543 2,028,610
Dividend and Growth Fund Qualified 1.00%........ 61,189 1.365504 83,554
Dividend and Growth Fund Non-Qualified 1.00%.... 665,428 1.365504 908,645
Dividend and Growth Fund 1.25%.................. 83,505,795 1.359330 113,511,933
Dividend and Growth Fund .25%................... 220,038 1.384195 304,576
International Advisers Fund Qualified 1.00%..... 10,000 1.148740 11,487
International Advisers Fund Non-Qualified
1.00%.......................................... 29,725 1.148740 34,146
International Advisers Fund 1.25%............... 6,577,380 1.146332 7,539,861
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
32
<PAGE>
<TABLE>
<CAPTION>
UNITS
OWNED BY UNIT CONTRACT
PARTICIPANTS PRICE LIABILITY
------------ --------- --------------
INDIVIDUAL SUB-ACCOUNTS -- (CONTINUED)
<S> <C> <C> <C>
International Advisers Fund .25%................ 10,419 $1.155977 $ 12,044
Smith Barney Daily Dividend, Inc. Qualified
1.00%.......................................... 81,953 2.568390 210,487
Smith Barney Daily Dividend, Inc. Non-Qualified
1.00%.......................................... 135,021 2.657806 358,860
Smith Barney Appreciation Fund, Inc. Qualified
1.00%.......................................... 23,659 6.273870 148,434
Smith Barney Government and Agencies, Inc.
Qualified 1.0%................................. 18,334 2.316404 42,469
--------------
Sub-total Individual Sub-Accounts............... 5,383,251,442
--------------
GROUP SUB-ACCOUNTS:
Bond Fund Qualified 1.00% QP.................... 1,430,095 4.233986 6,055,001
Bond Fund 1.25% DCII............................ 1,368,191 4.095031 5,602,785
Bond Fund .15% DCII............................. 282,400 3.858322 1,089,592
Stock Fund Qualified 1.00% QP................... 3,836,835 9.274144 35,583,358
Stock Fund Qualified .825% QP................... 1,348,097 7.448476 10,041,270
Stock Fund Non-Qualified 1.00% NQ............... 88,666 7.276670 645,195
Stock Fund Non-Qualified .825% NQ............... 834,235 7.461553 6,224,688
Stock Fund 1.25% DCII........................... 4,412,560 8.968113 39,572,332
Stock Fund .15% DCII............................ 824,645 6.963929 5,742,769
Money Market Fund Qualified .375% QP............ 2,294 2.953210 6,776
Money Market Fund 1.25% DCII.................... 988,763 2.623540 2,594,060
Money Market Fund .15% DCII..................... 266,532 2.551494 680,054
Advisers Fund 1.25% DCII........................ 9,212,081 3.646658 33,593,308
Advisers Fund .15% DCII......................... 645,782 4.188043 2,704,563
U.S. Government Money Market Fund 1.25% DCII.... 585,783 1.832902 1,073,683
U.S. Government Money Market Fund .15% DCII..... 42,168 2.111581 89,042
Capital Appreciation Fund 1.25% DCII............ 9,081,481 5.477917 49,747,602
Capital Appreciation Fund .15% DCII............. 737,352 6.223880 4,589,189
Mortgage Securities Fund 1.25% DCII............. 1,149,499 2.333132 2,681,933
Mortgage Securities Fund .15% DCII.............. 76,381 2.631908 201,028
Index Fund 1.25% DCII........................... 3,153,427 2.352860 7,419,573
Index Fund .15% DCII............................ 281,881 2.557622 720,946
International Opportunities Fund 1.25% DCII..... 4,520,023 1.329322 6,008,567
International Opportunities Fund .15% DCII...... 328,735 1.411986 464,169
Dividend and Growth Fund 1.25% DCII............. 557,608 1.222612 681,738
Calvert Responsibly Invested Balanced Portfolio
1.25% DCII..................................... 922,893 1.816735 1,676,653
TCI Advantage Fund 1.25% DCII................... 36,249 1.051440 38,113
TCI Growth Fund 1.25% DCII...................... 633,767 1.080853 685,009
Fidelity VIP Overseas Fund 1.25% DCII........... 181,421 1.030158 186,893
Fidelity VIP II Asset Manager Fund 1.25% DCII... 312,179 1.086805 339,278
Fidelity VIP II Contrafund Fund 1.25% DCII...... 1,807,601 1.098524 1,985,693
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
33
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
UNITS
OWNED BY UNIT CONTRACT
PARTICIPANTS PRICE LIABILITY
------------ --------- --------------
GROUP SUB-ACCOUNTS -- (CONTINUED)
<S> <C> <C> <C>
Fidelity VIP Growth Fund 1.25% DCII............. 2,054,903 $1.072793 $ 2,204,486
--------------
Sub-total Group Sub-Accounts.................... 230,929,346
--------------
TOTAL ACCUMULATION PERIOD......................... 5,614,180,788
--------------
ANNUITY CONTRACTS IN THE ANNUITY PERIOD:
INDIVIDUAL SUB-ACCOUNTS:
Bond Fund Non-Qualified 1.00%................... 360 3.559970 1,281
Bond Fund 1.25%................................. 146,793 1.880012 275,972
Stock Fund Non-Qualified 1.00%.................. 6,396 5.303060 33,918
Stock Fund 1.25%................................ 338,160 2.887494 976,434
Money Market Fund Qualified 1.00%............... 15,106 2.367583 35,766
Money Market Fund Non-Qualified 1.00%........... 102,049 2.368697 241,724
Money Market Fund 1.25%......................... 384,819 1.527530 587,823
Advisers Fund Qualified 1.00%................... 4,802 3.760737 18,058
Advisers Fund Non-Qualified 1.00%............... 63,789 3.760737 239,894
Advisers Fund 1.25%............................. 864,266 2.523174 2,180,695
U.S. Government Money Market Fund Qualified
1.00%.......................................... 17,575 1.892119 33,254
Capital Appreciation Fund Non-Qualified 1.00%... 4,341 5.630910 24,443
Capital Appreciation Fund 1.25%................. 102,482 3.364100 344,759
Mortgage Securities Fund Non-Qualified 1.00%.... 102,291 2.398054 245,299
Mortgage Securities Fund 1.25%.................. 89,747 1.877823 168,529
Index Fund 1.25%................................ 65,687 2.359499 154,988
International Opportunities Fund 1.25%.......... 177,975 1.329133 236,552
Dividend and Growth Fund 1.25%.................. 17,276 1.359330 23,484
--------------
Sub-total Individual Sub-Accounts............... 5,822,873
--------------
GROUP SUB-ACCOUNTS:
Bond Fund Qualified 1.00% QP.................... 81,632 4.233986 345,630
Bond Fund 1.25% DCII............................ 303,107 4.095031 1,241,231
Bond Fund 1.00% DCII............................ 12,827 4.217255 54,094
Bond Fund .15% DCII............................. 1,062 3.858322 4,099
Stock Fund Qualified 1.00% QP................... 238,834 9.274144 2,214,981
Stock Fund Qualified .825% QP................... 56,135 7.448476 418,124
Stock Fund Non-Qualified 1.00% NQ............... 632 7.276670 4,596
Stock Fund Non-Qualified .825% NQ............... 58,469 7.461553 436,273
Stock Fund 1.25% DCII........................... 985,111 8.968113 8,834,590
Stock Fund 1.00% DCII........................... 4,395 9.245123 40,630
Stock Fund .15% DCII............................ 5,977 6.963929 41,624
Money Market Fund 1.25% DCII.................... 182,654 2.623540 479,201
Advisers Fund 1.25% DCII........................ 1,704,451 3.646658 6,215,551
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
<PAGE>
<TABLE>
<CAPTION>
UNITS
OWNED BY UNIT CONTRACT
PARTICIPANTS PRICE LIABILITY
------------ --------- --------------
GROUP SUB-ACCOUNTS -- (CONTINUED)
<S> <C> <C> <C>
Advisers Fund .15% DCII......................... 23,283 $4.188043 $ 97,512
U.S. Government Money Market Fund 1.25% DCII.... 130,137 1.832902 238,529
Capital Appreciation Fund 1.25% DCII............ 462,860 5.477917 2,535,508
Capital Appreciation Fund .15% DCII............. 246 6.223880 1,529
Mortgage Securities Fund 1.25% DCII............. 155,161 2.333132 362,011
Index Fund 1.25% DCII........................... 404,476 2.352860 951,675
International Opportunities Fund 1.25% DCII..... 151,356 1.329322 201,201
Dividend and Growth Fund Sub-Account............ 53,389 1.222612 65,274
Calvert Responsibly Invested Balanced Portfolio
1.25% DCII..................................... 47,806 1.816735 86,850
TCI Advantage Fund Sub-Account.................. 8,377 1.051440 8,808
TCI Growth Fund Sub-Account..................... 7,783 1.080853 8,413
--------------
Sub-total Group Sub-Accounts.................... 24,887,934
--------------
TOTAL ANNUITY PERIOD.............................. 30,710,807
--------------
GRAND TOTAL....................................... $5,644,891,595
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
35
<PAGE>
Separate Account Two
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $11,511,264 $ 17,813,206 $12,163,281
EXPENSES:
Mortality and expense
undertakings.......... (2,154,558) (9,711,073) (2,622,588)
-------------- ------------- ------------
Net investment income
(loss).............. 9,356,706 8,102,133 9,540,693
-------------- ------------- ------------
Capital gains income... -- 26,305,598 --
-------------- ------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 117,877 2,168,121 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 18,122,724 184,154,644 --
-------------- ------------- ------------
Net gains (losses) on
investments......... 18,240,601 186,322,765 --
-------------- ------------- ------------
Net increase
(decrease) in net
assets resulting
from operations..... $27,597,307 $ 220,730,496 $ 9,540,693
-------------- ------------- ------------
-------------- ------------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT CAPITAL MORTGAGE
ADVISERS FUND MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- -------------------- ----------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 73,528,138 $72,752 $ 8,061,601 $14,206,415
EXPENSES:
Mortality and expense
undertakings.......... (25,531,142) (15,807) (10,434,564) (2,658,370)
-------------- -------- ----------------- ---------------
Net investment income
(loss).............. 47,996,996 56,945 (2,372,963) 11,548,045
-------------- -------- ----------------- ---------------
Capital gains income... 21,614,744 -- 34,687,769 --
-------------- -------- ----------------- ---------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 1,643,658 -- 2,276,572 (490,628)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 410,209,012 -- 168,562,628 18,815,991
-------------- -------- ----------------- ---------------
Net gains (losses) on
investments......... 411,852,670 -- 170,839,200 18,325,363
-------------- -------- ----------------- ---------------
Net increase
(decrease) in net
assets resulting
from operations..... $481,464,410 $56,945 $203,154,006 $29,873,408
-------------- -------- ----------------- ---------------
-------------- -------- ----------------- ---------------
<CAPTION>
INTERNATIONAL DIVIDEND AND
INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 3,104,555 $ 4,858,678 $ 1,834,675
EXPENSES:
Mortality and expense
undertakings.......... (1,562,001) (3,752,084) (789,977)
------------- ------------------ -------------
Net investment income
(loss).............. 1,542,554 1,106,594 1,044,698
------------- ------------------ -------------
Capital gains income... 38,706 2,695,768 --
------------- ------------------ -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 969,630 (488,089) 4,933
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 34,721,169 32,521,726 18,047,295
------------- ------------------ -------------
Net gains (losses) on
investments......... 35,690,799 32,033,637 18,052,228
------------- ------------------ -------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 37,272,059 $35,835,999 $19,096,926
------------- ------------------ -------------
------------- ------------------ -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
37
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CALVERT
RESPONSIBLY SMITH BARNEY
INVESTED DAILY
BALANCED INTERNATIONAL DIVIDEND
PORTFOLIO ADVISERS FUND FUND
SUB-ACCOUNT SUB-ACCOUNT* SUB-ACCOUNT
--------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 104,255 $ 193,566 $ 32,338
EXPENSES:
Mortality and expense
undertakings.......... (16,809) (29,492) (5,998)
--------------- ------------- ------------
Net investment income
(loss).............. 87,446 164,074 26,340
--------------- ------------- ------------
Capital gains income... 50,438 -- --
--------------- ------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 1,044 6,279 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 184,034 177,844 --
--------------- ------------- ------------
Net gains (losses) on
investments......... 185,078 184,123 --
--------------- ------------- ------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 322,962 $ 348,197 $ 26,340
--------------- ------------- ------------
--------------- ------------- ------------
</TABLE>
* From Inception, March 1, 1995 to December 31, 1995.
** From Inception, July 1, 1995 to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
<PAGE>
<TABLE>
<CAPTION>
SMITH BARNEY
SMITH BARNEY GOVERNMENT AND TCI TCI FIDELITY VIP
APPRECIATION FUND AGENCIES FUND ADVANTAGE FUND GROWTH FUND OVERSEAS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT** SUB-ACCOUNT** SUB-ACCOUNT**
----------------- -------------------- ------------------ --------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 2,392 $ 2,387 $ 757 $ -- $--
EXPENSES:
Mortality and expense
undertakings.......... (1,351) (449) (208) (2,133) (491)
------- ------ ------ ------- ------
Net investment income
(loss).............. 1,041 1,938 549 (2,133) (491)
------- ------ ------ ------- ------
Capital gains income... 11,468 -- -- -- --
------- ------ ------ ------- ------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 148 -- (90) 938 (240)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 20,104 -- 1,195 6,645 3,459
------- ------ ------ ------- ------
Net gains (losses) on
investments......... 20,252 -- 1,105 7,583 3,219
------- ------ ------ ------- ------
Net increase
(decrease) in net
assets resulting
from operations..... $32,761 $ 1,938 $ 1,654 $ 5,450 $2,728
------- ------ ------ ------- ------
------- ------ ------ ------- ------
<CAPTION>
FIDELITY VIP II
ASSET MANAGER FIDELITY VIP II FIDELITY VIP
FUND CONTRAFUND FUND GROWTH FUND
SUB-ACCOUNT** SUB-ACCOUNT** SUB-ACCOUNT**
----------------- ----------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ -- $ 25,425 $ --
EXPENSES:
Mortality and expense
undertakings.......... (1,491) (6,192) (6,603)
------- ------- -------------
Net investment income
(loss).............. (1,491) 19,233 (6,603)
------- ------- -------------
Capital gains income... -- -- --
------- ------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 456 (577) (2,056)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 18,860 17,225 (34,445)
------- ------- -------------
Net gains (losses) on
investments......... 19,316 16,648 (36,501)
------- ------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 17,825 $ 35,881 $ (43,104)
------- ------- -------------
------- ------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
39
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------ -----------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 9,356,706 $ 8,102,133 $9,540,693
Capital gains income... -- 26,305,598 --
Net realized gain
(loss) on security
transactions.......... 117,877 2,168,121 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 18,122,724 184,154,644 --
------------ ------------ -----------
Net increase (decrease)
in net assets
resulting from
operations............ 27,597,307 220,730,496 9,540,693
------------ ------------ -----------
UNIT TRANSACTIONS:
Purchases.............. 18,860,293 101,236,958 48,515,026
Net transfers.......... 17,461,966 34,337,542 (83,703,644)
Surrenders............. (12,010,919) (38,089,217) (27,263,647)
Net annuity
transactions.......... (33,972) 563,526 (138,249 )
------------ ------------ -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 24,277,368 98,048,809 (62,590,514)
------------ ------------ -----------
Total increase
(decrease) in net
assets................ 51,874,675 318,779,305 (53,049,821)
NET ASSETS:
Beginning of period.... 159,488,147 646,102,465 241,689,243
------------ ------------ -----------
End of period.......... $211,362,822 $964,881,770 $188,639,422
------------ ------------ -----------
------------ ------------ -----------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------ -----------
OPERATIONS:
Net investment income
(loss)................ $ 8,147,222 $ 5,872,155 $6,069,008
Capital gains income... 3,020,067 34,722,942 --
Net realized gain
(loss) on security
transactions.......... (421,917) (203,916) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (19,519,205) (59,765,259) --
------------ ------------ -----------
Net increase (decrease)
in net assets
resulting from
operations............ (8,773,833) (19,374,078) 6,069,008
------------ ------------ -----------
UNIT TRANSACTIONS:
Purchases.............. 29,721,918 105,127,448 72,433,601
Net transfers.......... (10,176,062) 20,445,965 10,951,538
Surrenders............. (11,477,200) (25,527,779) (33,930,464)
Net annuity
transactions.......... 284,001 1,000,538 596,459
------------ ------------ -----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 8,352,657 101,046,172 50,051,134
------------ ------------ -----------
Total increase
(decrease) in net
assets................ (421,176) 81,672,094 56,120,142
NET ASSETS:
Beginning of period.... 159,909,323 564,430,371 185,569,101
------------ ------------ -----------
End of period.......... $159,488,147 $646,102,465 $241,689,243
------------ ------------ -----------
------------ ------------ -----------
</TABLE>
* From inception, March 8, 1994, to December 31, 1994.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT CAPITAL MORTGAGE INTERNATIONAL
ADVISERS FUND MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------------- ----------------- --------------- ------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 47,996,996 $ 56,945 $ (2,372,963) $ 11,548,045 $ 1,542,554 $ 1,106,594
Capital gains income... 21,614,744 -- 34,687,769 -- 38,706 2,695,768
Net realized gain
(loss) on security
transactions.......... 1,643,658 -- 2,276,572 (490,628) 969,630 (488,089)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 410,209,012 -- 168,562,628 18,815,991 34,721,169 32,521,726
-------------- ----------- ----------------- --------------- ------------- ------------------
Net increase (decrease)
in net assets
resulting from
operations............ 481,464,410 56,945 203,154,006 29,873,408 37,272,059 35,835,999
-------------- ----------- ----------------- --------------- ------------- ------------------
UNIT TRANSACTIONS:
Purchases.............. 189,985,618 247,760 164,142,420 9,787,879 22,856,837 27,669,493
Net transfers.......... (5,608,414 ) 17,612 104,275,366 (15,085,789) 14,885,934 (24,115,834)
Surrenders............. (110,192,361 ) (76,250) (29,551,158) (16,689,694) (4,088,509) (12,086,298)
Net annuity
transactions.......... 487,625 84,208 482,089 13,331 84,999 124,982
-------------- ----------- ----------------- --------------- ------------- ------------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 74,672,468 273,330 239,348,717 (21,974,273) 33,739,261 (8,407,657)
-------------- ----------- ----------------- --------------- ------------- ------------------
Total increase
(decrease) in net
assets................ 556,136,878 330,275 442,502,723 7,899,135 71,011,320 27,428,342
NET ASSETS:
Beginning of period.... 1,801,080,912 1,211,601 632,468,929 213,516,603 94,384,052 300,879,623
-------------- ----------- ----------------- --------------- ------------- ------------------
End of period.......... $2,357,217,790 $1,541,876 $1,074,971,652 $221,415,738 $ 165,395,372 $328,307,965
-------------- ----------- ----------------- --------------- ------------- ------------------
-------------- ----------- ----------------- --------------- ------------- ------------------
U.S. GOVERNMENT CAPITAL MORTGAGE INTERNATIONAL
ADVISERS FUND MONEY MARKET FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------------- ----------------- --------------- ------------- ------------------
OPERATIONS:
Net investment income
(loss)................ $ 36,400,916 $ 28,918 $ (4,596,707) $ 12,903,970 $ 1,155,546 $ 415,635
Capital gains income... 47,447,226 -- 42,093,901 1,176,728 -- --
Net realized gain
(loss) on security
transactions.......... 414,315 -- 316,913 (2,117,604) 177,595 (38,119)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (154,737,742 ) -- (28,599,970) (19,218,450) (1,319,890) (9,418,006)
-------------- ----------- ----------------- --------------- ------------- ------------------
Net increase (decrease)
in net assets
resulting from
operations............ (70,475,285 ) 28,918 9,214,137 (7,255,356) 13,251 (9,040,490)
-------------- ----------- ----------------- --------------- ------------- ------------------
UNIT TRANSACTIONS:
Purchases.............. 419,190,064 205,153 147,740,784 19,118,960 11,954,835 93,762,262
Net transfers.......... 14,104,761 (151,291) 33,684,129 (49,453,490) (438,563) 55,977,196
Surrenders............. (88,886,489 ) (65,287) (18,517,067) (20,146,010) (3,246,522) (7,306,583)
Net annuity
transactions.......... 2,114,613 (29,641) 396,915 137,102 59,473 (104,557)
-------------- ----------- ----------------- --------------- ------------- ------------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 346,522,949 (41,066) 163,304,761 (50,343,438) 8,329,223 142,328,318
-------------- ----------- ----------------- --------------- ------------- ------------------
Total increase
(decrease) in net
assets................ 276,047,664 (12,148) 172,518,898 (57,598,794) 8,342,474 133,287,828
NET ASSETS:
Beginning of period.... 1,525,033,248 1,223,749 459,950,031 271,115,397 86,041,578 167,591,795
-------------- ----------- ----------------- --------------- ------------- ------------------
End of period.......... $1,801,080,912 $1,211,601 $ 632,468,929 $213,516,603 $ 94,384,052 $300,879,623
-------------- ----------- ----------------- --------------- ------------- ------------------
-------------- ----------- ----------------- --------------- ------------- ------------------
<CAPTION>
DIVIDEND AND
GROWTH FUND
SUB-ACCOUNT
-------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 1,044,698
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 4,933
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 18,047,295
-------------
Net increase (decrease)
in net assets
resulting from
operations............ 19,096,926
-------------
UNIT TRANSACTIONS:
Purchases.............. 37,005,986
Net transfers.......... 31,702,670
Surrenders............. (2,159,189)
Net annuity
transactions.......... 77,507
-------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 66,626,974
-------------
Total increase
(decrease) in net
assets................ 85,723,900
NET ASSETS:
Beginning of period.... 29,855,304
-------------
End of period.......... $115,579,204
-------------
-------------
DIVIDEND AND
GROWTH FUND
SUB-ACCOUNT*
-------------
OPERATIONS:
Net investment income
(loss)................ $ 284,164
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 1,622
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (486,442)
-------------
Net increase (decrease)
in net assets
resulting from
operations............ (200,656)
-------------
UNIT TRANSACTIONS:
Purchases.............. 13,185,613
Net transfers.......... 17,422,326
Surrenders............. (551,979)
Net annuity
transactions.......... --
-------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 30,055,960
-------------
Total increase
(decrease) in net
assets................ 29,855,304
NET ASSETS:
Beginning of period.... --
-------------
End of period.......... $ 29,855,304
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
41
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CALVERT
RESPONSIBLY SMITH BARNEY
INVESTED DAILY
BALANCED INTERNATIONAL DIVIDEND
PORTFOLIO ADVISERS FUND FUND
SUB-ACCOUNT SUB-ACCOUNT* SUB-ACCOUNT
--------------- ------------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 87,446 $ 164,074 $ 26,340
Capital gains income... 50,438 -- --
Net realized gain
(loss) on security
transactions.......... 1,044 6,279 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 184,034 177,844 --
--------------- ------------- ------------
Net increase (decrease)
in net assets
resulting from
operations............ 322,962 348,197 26,340
--------------- ------------- ------------
UNIT TRANSACTIONS:
Purchases.............. 394,157 2,632,312 --
Net transfers.......... 19,199 4,663,681 (10,709)
Surrenders............. (28,010) (46,652) (92,200)
Net annuity
transactions.......... 30,857 -- --
--------------- ------------- ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 416,203 7,249,341 (102,909)
--------------- ------------- ------------
Total increase
(decrease) in net
assets................ 739,165 7,597,538 (76,569)
NET ASSETS:
Beginning of period.... 1,024,338 -- 645,916
--------------- ------------- ------------
End of period.......... $ 1,763,503 $ 7,597,538 $ 569,347
--------------- ------------- ------------
--------------- ------------- ------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1994
CALVERT
RESPONSIBLY
INVESTED SMITH BARNEY SMITH BARNEY
BALANCED DAILY APPRECIATION
PORTFOLIO DIVIDEND FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ------------- ------------
OPERATIONS:
Net investment income
(loss)................ $ 20,465 $ 17,386 $ 743
Capital gains income... -- -- 6,550
Net realized gain
(loss) on security
transactions.......... (180) -- (476)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (59,462) -- (9,210)
--------------- ------------- ------------
Net increase (decrease)
in net assets
resulting from
operations............ (39,177) 17,386 (2,393)
--------------- ------------- ------------
UNIT TRANSACTIONS:
Purchases.............. 376,701 -- 50
Net transfers.......... (75,712) (18,624) 2,681
Surrenders............. (19,945) (84,827) (2,515)
Net annuity
transactions.......... 4,610 -- --
--------------- ------------- ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 285,654 (103,451) 216
--------------- ------------- ------------
Total increase
(decrease) in net
assets................ 246,477 (86,065) (2,177)
NET ASSETS:
Beginning of period.... 777,861 731,981 119,398
--------------- ------------- ------------
End of period.......... $ 1,024,338 $ 645,916 $ 117,221
--------------- ------------- ------------
--------------- ------------- ------------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
** From inception, July 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
<PAGE>
<TABLE>
<CAPTION>
SMITH BARNEY
SMITH BARNEY GOVERNMENT AND TCI TCI FIDELITY VIP
APPRECIATION FUND AGENCIES FUND ADVANTAGE FUND GROWTH FUND OVERSEAS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT** SUB-ACCOUNT** SUB-ACCOUNT**
----------------- -------------------- ------------------ --------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 1,041 $ 1,938 $ 549 $ (2,133) $ (491)
Capital gains income... 11,468 -- -- -- --
Net realized gain
(loss) on security
transactions.......... 148 -- (90) 938 (240)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 20,104 -- 1,195 6,645 3,459
-------- ------- -------- --------------- --------------
Net increase (decrease)
in net assets
resulting from
operations............ 32,761 1,938 1,654 5,450 2,728
-------- ------- -------- --------------- --------------
UNIT TRANSACTIONS:
Purchases.............. 50 -- 15,135 30,024 21,829
Net transfers.......... -- -- 40,646 669,352 172,761
Surrenders............. (1,598) (7,562) (19,236) (20,127) (10,425)
Net annuity
transactions.......... -- -- 8,722 8,723 --
-------- ------- -------- --------------- --------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (1,548) (7,562) 45,267 687,972 184,165
-------- ------- -------- --------------- --------------
Total increase
(decrease) in net
assets................ 31,213 (5,624) 46,921 693,422 186,893
NET ASSETS:
Beginning of period.... 117,221 48,093 -- -- --
-------- ------- -------- --------------- --------------
End of period.......... $ 148,434 $ 42,469 $ 46,921 $ 693,422 $186,893
-------- ------- -------- --------------- --------------
-------- ------- -------- --------------- --------------
SMITH BARNEY
GOVERNMENT AND
AGENCIES FUND
SUB-ACCOUNT
-----------------
OPERATIONS:
Net investment income
(loss)................ $ 1,269
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ --
--------
Net increase (decrease)
in net assets
resulting from
operations............ 1,269
--------
UNIT TRANSACTIONS:
Purchases.............. --
Net transfers.......... --
Surrenders............. (6,354)
Net annuity
transactions.......... --
--------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... (6,354)
--------
Total increase
(decrease) in net
assets................ (5,085)
NET ASSETS:
Beginning of period.... 53,178
--------
End of period.......... $ 48,093
--------
--------
<CAPTION>
FIDELITY VIP
II
FIDELITY VIP II CONTRAFUND FIDELITY VIP
ASSET MANAGER FUND FUND GROWTH FUND
SUB-ACCOUNT** SUB-ACCOUNT** SUB-ACCOUNT**
------------------ -------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ (1,491) $ 19,233 $ (6,603)
Capital gains income... -- -- --
Net realized gain
(loss) on security
transactions.......... 456 (577) (2,056)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 18,860 17,225 (34,445)
-------- -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 17,825 35,881 (43,104)
-------- -------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 32,160 89,641 120,267
Net transfers.......... 300,031 1,871,915 2,148,417
Surrenders............. (10,738) (11,744) (21,094)
Net annuity
transactions.......... -- -- --
-------- -------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 321,453 1,949,812 2,247,590
-------- -------------- -------------
Total increase
(decrease) in net
assets................ 339,278 1,985,693 2,204,486
NET ASSETS:
Beginning of period.... -- -- --
-------- -------------- -------------
End of period.......... $ 339,278 $ 1,985,693 $ 2,204,486
-------- -------------- -------------
-------- -------------- -------------
OPERATIONS:
Net investment income
(loss)................
Capital gains income...
Net realized gain
(loss) on security
transactions..........
Net unrealized
appreciation
(depreciation) of
investments during the
period................
Net increase (decrease)
in net assets
resulting from
operations............
UNIT TRANSACTIONS:
Purchases..............
Net transfers..........
Surrenders.............
Net annuity
transactions..........
Net increase (decrease)
in net assets
resulting from unit
transactions..........
Total increase
(decrease) in net
assets................
NET ASSETS:
Beginning of period....
End of period..........
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
43
<PAGE>
SEPARATE ACCOUNT TWO
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Separate Account Two (the Account) is a separate investment account within
Hartford Life Insurance Company (the Company) and is registered with the
Securities and Exchange Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940, as amended. Both the Company and the
Account are subject to supervision and regulation by the Department of
Insurance of the State of Connecticut and the SEC. The Account invests
deposits by variable annuity contractholders of the Company in various
mutual funds (the Funds) as directed by the contractholders.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains income
represents dividends from the Funds which are characterized as capital
gains under tax regulations.
b) SECURITY VALUATION--The investment in shares of the Hartford, Smith
Barney, TCI, Fidelity and Calvert Responsibily Invested Series mutual
funds are valued at the closing net asset value per share as determined
by the appropriate Fund as of December 31, 1995.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
d) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in
the future could vary from the amounts derived from management's
estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
a) MORTALITY AND EXPENSE UNDERTAKINGS--The Company, as issuer of variable
annuity contracts, provides the mortality and expense undertakings and,
with respect to the Account, receives a maximum annual fee of up to 1.25%
of the Account's average daily net assets.
b) DEDUCTION OF ANNUAL MAINTENANCE FEE--Annual maintenance fees are deducted
through termination of units of interest from applicable contract owners'
accounts, in accordance with the terms of the contracts.
44
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT TWO AND TO THE
OWNERS OF UNITS OF INTEREST THEREIN:
We have audited the accompanying statement of assets & liabilities of Hartford
Life Insurance Company Separate Account Two (the Account) as of December 31,
1995, and the related statement of operations for the year then ended and
statements of changes in net assets for each of the two years in the period
then ended. These financial statements are the responsibility of the Account's
management. Our responsibility is to express an opinion on these financial
statements 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. 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 referred to above present fairly, in
all material respects, the financial position of Hartford Life Insurance
Company Separate Account Two as of December 31, 1995, the results of its
operations for the year then ended and the changes in its net assets for each
of the two years in the period then ended in conformity with generally accepted
accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
45
<PAGE>
Separate Account Variable Life One
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,606,221
Cost $1,561,680
Market Value......... $1,651,616 -- -- --
Hartford Stock Fund,
Inc.
Shares 1,967,237
Cost $5,980,432
Market Value......... -- $6,938,484 -- --
HVA Money Market Fund,
Inc.
Shares 9,602,997
Cost $9,602,997
Market Value......... -- -- $9,602,997 --
Hartford Advisers Fund,
Inc.
Shares 2,369,257
Cost $4,065,702
Market Value......... -- -- -- $4,640,048
Hartford Capital
Appreciation Fund,
Inc.
Shares 2,302,713
Cost $7,054,945
Market Value......... -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 641,321
Cost $ 656,691
Market Value......... -- -- -- --
Hartford Index Fund,
Inc.
Shares 738,584
Cost $1,326,863
Market Value......... -- -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 3,016,436
Cost $3,619,160
Market Value......... -- -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 46,225
Cost $ 55,570
Market Value......... -- -- -- --
Fidelity VIP Equity
Income Fund
Shares 37,136
Cost $ 877,721
Market Value......... -- -- -- --
Fidelity VIP Overseas
Fund
Shares 4,484
Cost $ 74,109
Market Value......... -- -- -- --
Fidelity Asset Manager
Fund
Shares 2,344
Cost $ 34,516
Market Value......... -- -- -- --
Due from Hartford Life
Insurance Company..... 584 46,514 1,235,574 25,477
Receivable from fund
shares sold........... -- -- -- --
------------- ----------- ----------- -------------
Total Assets........... 1,652,200 6,984,998 10,838,571 4,665,525
------------- ----------- ----------- -------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- -- -- --
Payable for fund shares
purchased............. 584 46,515 1,229,222 25,478
------------- ----------- ----------- -------------
Total Liabilities...... 584 46,515 1,229,222 25,478
------------- ----------- ----------- -------------
Net Assets (variable
life contract
liabilities).......... $1,651,616 $6,938,483 $9,609,349 $4,640,047
------------- ----------- ----------- -------------
------------- ----------- ----------- -------------
Units Outstanding........ 1,386,137 4,822,055 8,593,579 3,459,254
Accumulation Unit Value
at end of period....... $ 1.191524 $ 1.438906 $ 1.118201 $ 1.341343
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
<PAGE>
<TABLE>
<CAPTION>
FIDELITY VIP
CAPITAL MORTGAGE INTERNATIONAL DIVIDEND AND EQUITY
APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND INCOME FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACOUNT
----------------- --------------- ----------- ------------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,606,221
Cost $1,561,680
Market Value......... -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 1,967,237
Cost $5,980,432
Market Value......... -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 9,602,997
Cost $9,602,997
Market Value......... -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 2,369,257
Cost $4,065,702
Market Value......... -- -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 2,302,713
Cost $7,054,945
Market Value......... $8,035,685 -- -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 641,321
Cost $ 656,691
Market Value......... -- $ 687,022 -- -- -- --
Hartford Index Fund,
Inc.
Shares 738,584
Cost $1,326,863
Market Value......... -- -- $1,497,790 -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 3,016,436
Cost $3,619,160
Market Value......... -- -- -- $3,938,532 -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 46,225
Cost $ 55,570
Market Value......... -- -- -- -- $ 60,878 --
Fidelity VIP Equity
Income Fund
Shares 37,136
Cost $ 877,721
Market Value......... -- -- -- -- -- $ 715,612
Fidelity VIP Overseas
Fund
Shares 4,484
Cost $ 74,109
Market Value......... -- -- -- -- -- --
Fidelity Asset Manager
Fund
Shares 2,344
Cost $ 34,516
Market Value......... -- -- -- -- -- --
Due from Hartford Life
Insurance Company..... 152,277 1,239 45,827 151,542 -- 10
Receivable from fund
shares sold........... -- -- -- -- 7,874 --
----------------- --------------- ----------- ------------------ ------------ ------------
Total Assets........... 8,187,962 688,261 1,543,617 4,090,074 68,752 715,622
----------------- --------------- ----------- ------------------ ------------ ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... -- -- -- -- 7,874 --
Payable for fund shares
purchased............. 152,276 1,239 45,827 151,543 -- --
----------------- --------------- ----------- ------------------ ------------ ------------
Total Liabilities...... 152,276 1,239 45,827 151,543 7,874 --
----------------- --------------- ----------- ------------------ ------------ ------------
Net Assets (variable
life contract
liabilities).......... $8,035,686 $ 687,022 $1,497,790 $3,938,531 $ 60,878 $ 715,622
----------------- --------------- ----------- ------------------ ------------ ------------
----------------- --------------- ----------- ------------------ ------------ ------------
Units Outstanding........ 5,555,220 583,159 1,043,582 2,972,166 49,377 595,397
Accumulation Unit Value
at end of period....... $ 1.446511 $ 1.178104 $ 1.435240 $ 1.325138 $ 1.232922 $ 1.201923
<CAPTION>
FIDELITY VIP
FIDELITY VIP II
OVERSEAS ASSET
FUND MANAGER FUND
SUB-ACCOUNT SUB-ACCOUNT
------------ ------------
<S> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Stock Fund,
Inc.
Shares
Cost
Market Value......... -- --
HVA Money Market Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Advisers Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Mortgage
Securities Fund, Inc.
Shares
Cost
Market Value......... -- --
Hartford Index Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford International
Opportunities Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Dividend and
Growth Fund, Inc.
Shares
Cost
Market Value......... -- --
Fidelity VIP Equity
Income Fund
Shares
Cost
Market Value......... -- --
Fidelity VIP Overseas
Fund
Shares
Cost
Market Value......... $ 76,459 --
Fidelity Asset Manager
Fund
Shares
Cost
Market Value......... -- $ 37,015
Due from Hartford Life
Insurance Company..... -- --
Receivable from fund
shares sold........... 10,528 11,491
------------ ------------
Total Assets........... 86,987 48,506
------------ ------------
LIABILITIES:
Due to Hartford Life
Insurance Company..... 10,630 11,536
Payable for fund shares
purchased............. -- --
------------ ------------
Total Liabilities...... 10,630 11,536
------------ ------------
Net Assets (variable
life contract
liabilities).......... $ 76,357 $ 36,970
------------ ------------
------------ ------------
Units Outstanding........ 71,025 32,873
Accumulation Unit Value
at end of period....... $ 1.075072 $ 1.124638
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
47
<PAGE>
SEPARATE ACCOUNT VARIABLE LIFE ONE
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $72,383 $ 97,045 $305,022 $121,941
------------- ----------- ----------- -------------
Net investment income
(loss).............. 72,383 97,045 305,022 121,941
------------- ----------- ----------- -------------
Capital gains income... -- 85,946 -- 30,081
------------- ----------- ----------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 7,394 5,809 -- 2,907
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 97,007 1,009,567 -- 667,925
------------- ----------- ----------- -------------
Net gains (losses) on
investments......... 104,401 1,015,376 -- 670,832
------------- ----------- ----------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... $176,784 $1,198,367 $305,022 $822,854
------------- ----------- ----------- -------------
------------- ----------- ----------- -------------
</TABLE>
* From inception, May 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
<PAGE>
<TABLE>
<CAPTION>
FIDELITY VIP
CAPITAL MORTGAGE INTERNATIONAL DIVIDEND AND EQUITY
APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND INCOME FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACOUNT*
----------------- --------------- ----------- ------------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 48,724 $39,041 $16,866 $ 46,972 $ 536 $ 5,067
----------------- ------- ----------- -------- ------ ------------
Net investment income
(loss).............. 48,724 39,041 16,866 46,972 536 5,067
----------------- ------- ----------- -------- ------ ------------
Capital gains income... 159,934 -- 117 19,345 -- --
----------------- ------- ----------- -------- ------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (91) 66 232 1,947 67 (7)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 998,680 47,911 170,588 351,104 5,309 37,890
----------------- ------- ----------- -------- ------ ------------
Net gains (losses) on
investments......... 998,589 47,977 170,820 353,051 5,376 37,883
----------------- ------- ----------- -------- ------ ------------
Net increase
(decrease) in net
assets resulting
from operations..... $1,207,247 $87,018 $187,803 $419,368 $5,912 $ 42,950
----------------- ------- ----------- -------- ------ ------------
----------------- ------- ----------- -------- ------ ------------
<CAPTION>
FIDELITY VIP
FIDELITY VIP II
OVERSEAS ASSET
FUND MANAGER FUND
SUB-ACCOUNT* SUB-ACCOUNT*
------------ ------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ -- $ --
------ ------
Net investment income
(loss).............. -- --
------ ------
Capital gains income... -- --
------ ------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 140 229
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 2,351 2,499
------ ------
Net gains (losses) on
investments......... 2,491 2,728
------ ------
Net increase
(decrease) in net
assets resulting
from operations..... $ 2,491 $ 2,728
------ ------
------ ------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
49
<PAGE>
Separate Account Variable Life One
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 72,383 $ 97,045 $ 305,022 $ 121,941
Capital gains income... -- 85,946 -- 30,081
Net realized gain
(loss) on security
transactions.......... 7,394 5,809 -- 2,907
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 97,007 1,009,567 -- 667,925
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 176,784 1,198,367 305,022 822,854
----------- ----------- -------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 80,111 891,394 30,911,497 599,791
Net transfers.......... 1,202,083 3,494,521 (22,537,618) 1,102,448
Surrenders............. (16,941) (130,094) (212,380) (101,194)
Net loan withdrawals... (73,159) (82,429) (5,589,429) (26,807)
Cost of insurance and
other fees............ (33,808) (192,045) (484,560) (126,639)
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 1,158,286 3,981,347 2,087,510 1,447,599
----------- ----------- -------------- -------------
Total increase
(decrease) in net
assets................ 1,335,070 5,179,714 2,392,532 2,270,453
NET ASSETS:
Beginning of period.... 316,546 1,758,769 7,216,817 2,369,594
----------- ----------- -------------- -------------
End of period.......... $1,651,616 $6,938,483 $ 9,609,349 $4,640,047
----------- ----------- -------------- -------------
----------- ----------- -------------- -------------
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
MONEY
BOND FUND STOCK FUND MARKET FUND ADVISERS FUND
SUB- ACCOUNT SUB- ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -------------- -------------
OPERATIONS:
Net investment income
(loss)................ $ 6,922 $ 20,615 $ 99,860 $ 51,536
Capital gains income... 311 27,224 -- 17,202
Net realized gain
(loss) on security
transactions.......... (195) (175) -- 1,897
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (7,019) (60,514) -- (96,460)
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 19 (12,850) 99,860 (25,825)
----------- ----------- -------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 37,028 290,304 20,258,603 434,023
Net transfers.......... 272,187 1,294,999 (13,565,371) 1,557,649
Surrenders............. (4,429) (35,895) (142,419) (40,579)
Loan withdrawals....... (14) (4,367) (435,997) (26,091)
Cost of insurance...... (5,283) (61,111) (265,027) (51,186)
----------- ----------- -------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 299,489 1,483,930 5,849,789 1,873,816
----------- ----------- -------------- -------------
Total increase
(decrease) in net
assets................ 299,508 1,471,080 5,949,649 1,847,991
NET ASSETS:
Beginning of period.... 17,038 287,689 1,267,168 521,603
----------- ----------- -------------- -------------
End of period.......... $ 316,546 $1,758,769 $ 7,216,817 $2,369,594
----------- ----------- -------------- -------------
----------- ----------- -------------- -------------
</TABLE>
* From inception, May 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
50
<PAGE>
<TABLE>
<CAPTION>
CAPTIAL MORTGAGE INTERNATIONAL DIVIDEND AND
APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- --------------- ----------- ------------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 48,724 $ 39,041 $ 16,866 $ 46,972 $ 536
Capital gains income... 159,934 -- 117 19,345 --
Net realized gain
(loss) on security
transactions.......... (91) 66 232 1,947 67
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 998,680 47,911 170,588 351,014 5,309
----------------- --------------- ----------- ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 1,207,247 87,018 187,803 419,278 5,912
----------------- --------------- ----------- ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. 1,865,000 9,664 258,782 968,432 30,236
Net transfers.......... 2,860,807 112,099 942,414 909,391 37,813
Surrenders............. (209,729) (6,610) (20,596) (161,497) (12,610)
Net loan withdrawals... (53,870) -- (30,128) (39,629) --
Cost of insurance and
other fees............ (276,771) (9,804) (42,284) (150,874) (473)
----------------- --------------- ----------- ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 4,185,437 105,349 1,108,188 1,525,823 54,966
----------------- --------------- ----------- ------------------ ------------
Total increase
(decrease) in net
assets................ 5,392,684 192,367 1,295,991 1,945,101 60,878
NET ASSETS:
Beginning of period.... 2,643,002 494,655 201,799 1,993,340 --
----------------- --------------- ----------- ------------------ ------------
End of period.......... $8,035,686 $ 687,022 $1,497,790 $3,938,441 $ 60,878
----------------- --------------- ----------- ------------------ ------------
----------------- --------------- ----------- ------------------ ------------
CAPITAL MORTGAGE INTERNATIONAL
APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- --------------- ----------- ------------------
OPERATIONS:
Net investment income
(loss)................ $ 6,904 $ 20,821 $ 2,556 $ 17,054
Capital gains income... 73,831 23 -- --
Net realized gain
(loss) on security
transactions.......... 240 (255) 2 (309)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (37,253) (17,533) (324) (49,550)
----------------- --------------- ----------- ------------------
Net increase (decrease)
in net assets
resulting from
operations............ 43,722 3,056 2,234 (32,805)
----------------- --------------- ----------- ------------------
UNIT TRANSACTIONS:
Purchases.............. 701,847 6,854 68,645 487,568
Net transfers.......... 1,548,441 487,586 116,406 1,394,539
Surrenders............. (85,763) (3,931) (6,167) (56,052)
Loan withdrawals....... (2,817) -- -- (5,771)
Cost of insurance...... (109,663) (3,376) (8,623) (65,611)
----------------- --------------- ----------- ------------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 2,052,045 487,133 170,261 1,754,673
----------------- --------------- ----------- ------------------
Total increase
(decrease) in net
assets................ 2,095,767 490,189 172,495 1,721,868
NET ASSETS:
Beginning of period.... 547,235 4,466 29,304 271,472
----------------- --------------- ----------- ------------------
End of period.......... $2,643,002 $ 494,655 $ 201,799 $1,993,340
----------------- --------------- ----------- ------------------
----------------- --------------- ----------- ------------------
<CAPTION>
FIDELITY VIP FIDELITY VIP II
EQUITY FIDELITY VIP ASSET MANAGER
INCOME FUND OVERSEAS FUND FUND
SUB-ACOUNT* SUB-ACCOUNT* SUB-ACCOUNT*
------------ ------------- -----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 5,067 $18,683 $ --
Capital gains income... -- -- --
Net realized gain
(loss) on security
transactions.......... (7) 140 229
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 37,890 2,351 2,499
------------ ------------- --------
Net increase (decrease)
in net assets
resulting from
operations............ 42,950 2,491 2,728
------------ ------------- --------
UNIT TRANSACTIONS:
Purchases.............. 206,082 18,683 12,310
Net transfers.......... 474,024 67,416 34,943
Surrenders............. (7,434) (12,233) (13,011)
Net loan withdrawals... -- -- --
Cost of insurance and
other fees............ -- -- --
------------ ------------- --------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 672,672 73,866 34,242
------------ ------------- --------
Total increase
(decrease) in net
assets................ 715,622 76,357 36,970
NET ASSETS:
Beginning of period.... -- -- --
------------ ------------- --------
End of period.......... $ 715,622 $76,357 $ 36,970
------------ ------------- --------
------------ ------------- --------
OPERATIONS:
Net investment income
(loss)................
Capital gains income...
Net realized gain
(loss) on security
transactions..........
Net unrealized
appreciation
(depreciation) of
investments during the
period................
Net increase (decrease)
in net assets
resulting from
operations............
UNIT TRANSACTIONS:
Purchases..............
Net transfers..........
Surrenders.............
Loan withdrawals.......
Cost of insurance......
Net increase (decrease)
in net assets
resulting from unit
transactions..........
Total increase
(decrease) in net
assets................
NET ASSETS:
Beginning of period....
End of period..........
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
51
<PAGE>
SEPARATE ACCOUNT VARIABLE LIFE ONE
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Separate Account Variable Life One (the Account) is a separate investment
account within Hartford Life Insurance Company (the Company) and is
registered with the Securities and Exchange Commission (SEC) as a unit
investment trust under the Investment Company Act of 1940, as amended. The
Account consists of twenty two sub-accounts. These financial statements
include twelve sub-accounts which invest solely in Hartford and Fidelity
Mutual Funds (the Funds). The other ten sub-accounts, which invest in Putnam
Capital Manager Trust Funds, are presented in separate financial statements.
Both the Company and the Account are subject to supervision and regulation
by the Department of Insurance of the State of Connecticut and the SEC. The
Account invests deposits by variable life contractholders of the Company in
various mutual funds (the Funds) as directed by the contractholders.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains income
represents dividends from the Funds which are characterized as capital
gains under tax regulations.
b) SECURITY VALUATION--The investment in shares of the Hartford and Fidelity
mutual funds are valued at the closing net asset value per share as
determined by the appropriate Fund as of December 31, 1995.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
d) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in
the future could vary from the amounts derived from management's
estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
In accordance with the terms of the contracts, the Company makes deductions
for mortality and expense undertakings, cost of insurance, administrative
fees, and state premium taxes. These charges are deducted through
termination of units of interest from applicable contract owners' accounts.
52
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VARIABLE LIFE ONE AND TO THE
OWNERS OF UNITS OF INTEREST THEREIN:
We have audited the accompanying statement of assets & liabilities of the Bond
Fund Sub-Account, Stock Fund Sub-Account, Money Market Fund Sub-Account,
Advisers Fund Sub-Account, Capital Appreciation Fund Sub-Account, Mortgage
Securities Fund Sub-Account, Index Fund Sub-Account, International
Opportunities Fund Sub-Account, Dividend and Growth Fund Sub-Account, Fidelity
VIP Equity Fund Sub-Account, Fidelity VIP Overseas Fund Sub-Account and
Fidelity VIP II Asset Manager Fund Sub-Account (the Account) (constituting
Hartford Life Insurance Company Separate Account Variable Life One) as of
December 31, 1995, and the related statement of operations for the year then
ended (except for Fidelity VIP Equity Income Fund Sub-Account, Fidelity VIP
Overseas Fund Sub-Account and Fidelity VIP II Asset Manager Fund Sub-Account
which reflect the period from inception, May 1, 1995, to December 31, 1995),
and statements of changes in net assets for each of the two years in the period
then ended (except for Fidelity VIP Equity Income Fund Sub-Account, Fidelity
VIP Overseas Fund Sub-Account and Fidelity VIP II Asset Manager Fund
Sub-Account which reflect the period from inception, May 1, 1995, to December
31, 1995 and Dividend and Growth Fund Sub-Account which reflects the year ended
December 31, 1995). These financial statements are the responsibility of the
Account's management. Our responsibility is to express an opinion on these
financial statements 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. 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 referred to above present fairly, in
all material respects, the financial position of the Bond Fund Sub-Account,
Stock Fund Sub-Account, Money Market Fund Sub-Account, Advisers Fund
Sub-Account, Capital Appreciation Fund Sub-Account, Mortgage Securities Fund
Sub-Account, Index Fund Sub-Account, International Opportunities Fund
Sub-Account, Dividend and Growth Fund Sub-Account, Fidelity VIP Equity Fund
Sub-Account, Fidelity VIP Overseas Fund Sub-Account and Fidelity VIP II Asset
Manager Fund Sub-Account (the Account) (constituting Hartford Life Insurance
Company Separate Account Variable Life One) as of December 31, 1995, the
results of their operations for the year then ended (except for Fidelity VIP
Equity Income Fund Sub-Account, Fidelity VIP Overseas Fund Sub-Account and
Fidelity VIP II Asset Manager Fund Sub-Account which reflect the period from
inception, May 1, 1995, to December 31, 1995) and the changes in their net
assets for each of the two years in the period then ended (except for Fidelity
VIP Equity Income Fund Sub-Account, Fidelity VIP Overseas Fund Sub-Account and
Fidelity VIP II Asset Manager Fund Sub-Account which reflect the period from
inception, May 1, 1995, to December 31, 1995 and Dividend and Growth Fund
Sub-Account which reflects the year ended December 31, 1995) in conformity with
generally accepted accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
53
<PAGE>
Separate Account Five
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,056,132
Cost $ 1,059,586
Market Value......... $1,085,978 -- --
Hartford Stock Fund,
Inc.
Shares 1,315,551
Cost $ 4,326,898
Market Value......... -- $4,639,978 --
HVA Money Market Fund,
Inc.
Shares 11,483,565
Cost $11,483,565
Market Value......... -- -- $11,483,565
Hartford Advisers Fund,
Inc.
Shares 5,117,447
Cost $ 9,555,792
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 3,188,625
Cost $10,733,789
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 545,548
Cost $ 576,355
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 1,080,220
Cost $ 2,056,750
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 1,560,824
Cost $ 1,937,278
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 1,923,340
Cost $ 2,325,004
Market Value......... -- -- --
Hartford International
Advisers Fund, Inc.
Shares 120,031
Cost $ 128,710
Market Value......... -- -- --
Due from Hartford Life
Insurance Company..... 34,950 6,697 --
Receivable from fund
shares sold........... -- -- 463,018
------------- ----------- -----------
Total Assets........... 1,120,928 4,646,675 11,946,583
------------- ----------- -----------
LIABILITIES:
Payable to Hartford
Life Insurance
Company............... -- -- 462,480
Payable for fund shares
purchased............. 34,950 6,698 --
------------- ----------- -----------
Total Liabilities...... 34,950 6,698 462,480
------------- ----------- -----------
Net Assets (variable
life contract
liabilities).......... $1,085,978 $4,639,977 $11,484,103
------------- ----------- -----------
------------- ----------- -----------
Units Outstanding...... 917,233 3,496,490 10,873,798
Accumulation Unit Value
at end of period...... $ 1.183971 $ 1.327038 $ 1.056126
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
<PAGE>
<TABLE>
<CAPTION>
MORTGAGE
CAPITAL SECURITIES INTERNATIONAL DIVIDEND AND
ADVISERS FUND APPRECIATION FUND FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------------- -------------- ----------- ------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 1,056,132
Cost $ 1,059,586
Market Value......... -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 1,315,551
Cost $ 4,326,898
Market Value......... -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 11,483,565
Cost $11,483,565
Market Value......... -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 5,117,447
Cost $ 9,555,792
Market Value......... $10,022,212 -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 3,188,625
Cost $10,733,789
Market Value......... -- $11,127,216 -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 545,548
Cost $ 576,355
Market Value......... -- -- $ 584,424 -- -- --
Hartford Index Fund,
Inc.
Shares 1,080,220
Cost $ 2,056,750
Market Value......... -- -- -- $2,190,601 -- --
Hartford International
Opportunities Fund,
Inc.
Shares 1,560,824
Cost $ 1,937,278
Market Value......... -- -- -- -- $2,037,951 --
Hartford Dividend and
Growth Fund, Inc.
Shares 1,923,340
Cost $ 2,325,004
Market Value......... -- -- -- -- -- $2,533,079
Hartford International
Advisers Fund, Inc.
Shares 120,031
Cost $ 128,710
Market Value......... -- -- -- -- -- --
Due from Hartford Life
Insurance Company..... 950,107 156,385 -- 22,372 19,448 126,904
Receivable from fund
shares sold........... -- -- 11,632 -- -- --
------------- ----------------- -------------- ----------- ------------------ ------------
Total Assets........... 10,972,319 11,283,601 596,056 2,212,973 2,057,399 2,659,983
------------- ----------------- -------------- ----------- ------------------ ------------
LIABILITIES:
Payable to Hartford
Life Insurance
Company............... -- -- 11,632 -- -- --
Payable for fund shares
purchased............. 949,568 156,380 -- 22,371 19,448 126,904
------------- ----------------- -------------- ----------- ------------------ ------------
Total Liabilities...... 949,568 156,380 11,632 22,371 19,448 126,904
------------- ----------------- -------------- ----------- ------------------ ------------
Net Assets (variable
life contract
liabilities).......... $10,022,751 $11,127,221 $ 584,424 $2,190,602 $2,037,951 $2,533,079
------------- ----------------- -------------- ----------- ------------------ ------------
------------- ----------------- -------------- ----------- ------------------ ------------
Units Outstanding...... 7,859,372 8,572,773 502,807 1,610,653 1,755,951 1,867,740
Accumulation Unit Value
at end of period...... $ 1.275261 $ 1.297972 $1.162324 $1.360070 $1.160597 $1.356226
<CAPTION>
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT
-------------
<S> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares
Cost
Market Value......... --
Hartford Stock Fund,
Inc.
Shares
Cost
Market Value......... --
HVA Money Market Fund,
Inc.
Shares
Cost
Market Value......... --
Hartford Advisers Fund,
Inc.
Shares
Cost
Market Value......... --
Hartford Capital
Appreciation Fund,
Inc.
Shares
Cost
Market Value......... --
Hartford Mortgage
Securities Fund, Inc.
Shares
Cost
Market Value......... --
Hartford Index Fund,
Inc.
Shares
Cost
Market Value......... --
Hartford International
Opportunities Fund,
Inc.
Shares
Cost
Market Value......... --
Hartford Dividend and
Growth Fund, Inc.
Shares
Cost
Market Value......... --
Hartford International
Advisers Fund, Inc.
Shares
Cost
Market Value......... $ 133,119
Due from Hartford Life
Insurance Company..... --
Receivable from fund
shares sold........... 11,598
-------------
Total Assets........... 144,717
-------------
LIABILITIES:
Payable to Hartford
Life Insurance
Company............... 11,598
Payable for fund shares
purchased............. --
-------------
Total Liabilities...... 11,598
-------------
Net Assets (variable
life contract
liabilities).......... $ 133,119
-------------
-------------
Units Outstanding...... 114,916
Accumulation Unit Value
at end of period...... $1.158392
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
55
<PAGE>
SEPARATE ACCOUNT FIVE
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FROM INCEPTION JANUARY 10, 1995 TO DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $20,875 $ 32,551 $194,388
------------- ----------- -----------
Net investment income
(loss).............. 20,875 32,551 194,388
------------- ----------- -----------
Capital gains income... -- 403 --
------------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 1,207 9 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 26,392 313,078 --
------------- ----------- -----------
Net gains (losses) on
investments......... 27,599 313,087 --
------------- ----------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ $48,474 $346,041 $194,388
------------- ----------- -----------
------------- ----------- -----------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MORTGAGE INTERNATIONAL DIVIDEND AND
ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------------- ---------------- ----------- ------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 99,305 $ 30,005 $12,566 $ 15,754 $ 8,088 $ 20,358
------------- -------- ------- ----------- -------- -------------
Net investment income
(loss).............. 99,305 30,005 12,566 15,754 8,088 20,358
------------- -------- ------- ----------- -------- -------------
Capital gains income... 120 541 -- 4 92 --
------------- -------- ------- ----------- -------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (866) 997 843 333 (114) (289)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 466,421 393,427 8,070 133,851 100,674 208,074
------------- -------- ------- ----------- -------- -------------
Net gains (losses) on
investments......... 465,555 394,424 8,913 134,184 100,560 207,785
------------- -------- ------- ----------- -------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ $564,980 $424,970 $21,479 $149,942 $108,740 $228,143
------------- -------- ------- ----------- -------- -------------
------------- -------- ------- ----------- -------- -------------
<CAPTION>
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT*
-------------
<S> <C>
INVESTMENT INCOME:
Dividends.............. $3,677
------
Net investment income
(loss).............. 3,677
------
Capital gains income... --
------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 196
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 4,408
------
Net gains (losses) on
investments......... 4,604
------
Net increase (decrease)
in net assets
resulting from
operations............ $8,281
------
------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
57
<PAGE>
Separate Account Five
HARTFORD LIFE INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FROM INCEPTION JANUARY 10, 1995 TO DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 20,875 $ 32,551 $ 194,388
Capital gains income... -- 403 --
Net realized gain
(loss) on security
transactions.......... 1,207 9 --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 26,392 313,078 --
----------- ----------- ------------
Net increase (decrease)
in net assets
resulting from
operations............ 48,474 346,041 194,388
----------- ----------- ------------
UNIT TRANSACTIONS:
Purchases.............. -- -- 46,855,863
Net transfers.......... 1,057,360 4,397,905 (32,905,541)
Surrenders............. (17,899) (36,191) (186,484)
Net loan withdrawal.... (127) (58,548) (2,423,958)
Cost of insurance and
other fees............ (1,830) (9,230) (50,165)
----------- ----------- ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 1,037,504 4,293,936 11,289,715
----------- ----------- ------------
Total increase in net
assets................ 1,085,978 4,639,977 11,484,103
NET ASSETS:
Beginning of period.... -- -- --
----------- ----------- ------------
End of period.......... $ 1,085,978 $ 4,639,977 $ 11,484,103
----------- ----------- ------------
----------- ----------- ------------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
58
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MORTGAGE INTERNATIONAL DIVIDEND AND
ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------------- --------------- ----------- ------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 99,305 $ 30,005 $ 12,566 $ 15,754 $ 8,088 $ 20,358
Capital gains income... 120 541 -- 4 92 --
Net realized gain
(loss) on security
transactions.......... (866) 997 843 333 (114) (289)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 466,421 393,427 8,070 133,851 100,674 208,074
------------- ----------------- --------------- ----------- ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 564,980 424,970 21,479 149,942 108,740 228,143
------------- ----------------- --------------- ----------- ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. -- -- -- -- -- --
Net transfers.......... 9,588,547 10,836,491 579,334 2,068,160 1,981,409 2,362,955
Surrenders............. (46,331) (62,476) (15,266) (23,814) (19,876) (23,348)
Net loan withdrawal.... (67,424) (51,314) -- -- (28,680) (30,134)
Cost of insurance and
other fees............ (17,021) (20,450) (1,123) (3,686) (3,642) (4,537)
------------- ----------------- --------------- ----------- ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 9,457,771 10,702,251 562,945 2,040,660 1,929,211 2,304,936
------------- ----------------- --------------- ----------- ------------------ ------------
Total increase in net
assets................ 10,022,751 11,127,221 584,424 2,190,602 2,037,951 2,533,079
NET ASSETS:
Beginning of period.... -- -- -- -- -- --
------------- ----------------- --------------- ----------- ------------------ ------------
End of period.......... $10,022,751 $11,127,221 $584,424 $ 2,190,602 $2,037,951 $2,533,079
------------- ----------------- --------------- ----------- ------------------ ------------
------------- ----------------- --------------- ----------- ------------------ ------------
<CAPTION>
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT*
-------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 3,677
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 196
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 4,408
-------------
Net increase (decrease)
in net assets
resulting from
operations............ 8,281
-------------
UNIT TRANSACTIONS:
Purchases.............. --
Net transfers.......... 137,448
Surrenders............. (12,345)
Net loan withdrawal.... --
Cost of insurance and
other fees............ (265)
-------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 124,838
-------------
Total increase in net
assets................ 133,119
NET ASSETS:
Beginning of period.... --
-------------
End of period.......... $133,119
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
59
<PAGE>
SEPARATE ACCOUNT FIVE
HARTFORD LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Separate Account Five (the Account) is a separate investment account within
Hartford Life Insurance Company (the Company) and is registered with the
Securities and Exchange Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940, as amended. Both the Company and the
Account are subject to supervision and regulation by the Department of
Insurance of the State of Connecticut and the SEC. The Account invests
deposits by variable life contractholders of the Company in various mutual
funds (the Funds) as directed by the contractholders. The Account commenced
operations on January 10, 1995.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains income
represents dividends from the Funds which are characterized as capital
gains under tax regulations.
b) SECURITY VALUATION--The investment in shares of the Funds are valued at
the closing net asset value per share as determined by the appropriate
Fund as of December 31, 1995.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
d) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in
the future could vary from the amounts derived from management's
estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
In accordance with the terms of the contracts, the Company makes deductions
for mortality and expense undertakings, cost of insurance, administrative
fees, and state premium taxes. These charges are deducted through
termination of units of interest from applicable contract owners' accounts.
60
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FIVE AND TO THE
OWNERS OF UNITS OF INTEREST THEREIN:
We have audited the accompanying statement of assets & liabilities of Hartford
Life Insurance Company Separate Account Five (the Account) as of December 31,
1995, and the related statement of operations and changes in net assets for the
period from inception, January 10, 1995, to December 31, 1995. These financial
statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit 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. 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 audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Hartford Life Insurance
Company Separate Account Five as of December 31, 1995, the results of its
operations and changes in its net assets for the period from inception, January
10, 1995, to December 31, 1995, in conformity with generally accepted
accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
61
<PAGE>
Separate Account One
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 88,407,668
Cost $ 90,192,805
Market Value......... $90,906,069 -- --
Hartford Stock Fund,
Inc.
Shares 152,903,060
Cost $ 469,886,999
Market Value......... -- $539,292,150 --
HVA Money Market Fund,
Inc.
Shares 101,637,848
Cost $ 101,637,848
Market Value......... -- -- $101,637,848
Hartford Advisers Fund,
Inc.
Shares 704,019,007
Cost $1,223,274,343
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 208,844,163
Cost $ 642,358,369
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 54,845,435
Cost $ 59,140,140
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 38,142,927
Cost $ 67,015,988
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 226,741,445
Cost $ 269,091,270
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 104,332,417
Cost $ 119,898,525
Market Value......... -- -- --
Hartford International
Advisers Fund, Inc.
Shares 11,077,866
Cost $ 12,072,713
Market Value......... -- -- --
Due from ITT Hartford
Life and Annuity
Insurance Company..... 335,491 1,581,754 1,811,115
Receivable from fund
shares sold........... -- -- --
------------- ----------- -----------
Total Assets........... 91,241,560 540,873,904 103,448,963
------------- ----------- -----------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... -- -- --
Payable for fund shares
purchased............. 335,395 1,582,285 1,811,999
------------- ----------- -----------
Total Liabilities...... 335,395 1,582,285 1,811,999
------------- ----------- -----------
Net Assets (variable
annuity contract
liabilities).......... $90,906,165 $539,291,619 $101,636,964
------------- ----------- -----------
------------- ----------- -----------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 48,354,034 186,726,520 66,468,408
Unit Price............. $ 1.880012 $ 2.887494 $ 1.527530
ANNUITY CONTRACTS IN THE
ANNUITY PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... -- 41,528 68,396
Unit Price............. -- $ 2.887494 $ 1.527530
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MORTGAGE INTERNATIONAL
ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------- ------------------- ---------------- ------------ --------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 88,407,668
Cost $ 90,192,805
Market Value......... -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 152,903,060
Cost $ 469,886,999
Market Value......... -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 101,637,848
Cost $ 101,637,848
Market Value......... -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 704,019,007
Cost $1,223,274,343
Market Value......... $1,378,778,984 -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 208,844,163
Cost $ 642,358,369
Market Value......... -- $728,795,122 -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 54,845,435
Cost $ 59,140,140
Market Value......... -- -- $58,753,722 -- --
Hartford Index Fund,
Inc.
Shares 38,142,927
Cost $ 67,015,988
Market Value......... -- -- -- $77,350,805 --
Hartford International
Opportunities Fund,
Inc.
Shares 226,741,445
Cost $ 269,091,270
Market Value......... -- -- -- -- $296,054,037
Hartford Dividend and
Growth Fund, Inc.
Shares 104,332,417
Cost $ 119,898,525
Market Value......... -- -- -- -- --
Hartford International
Advisers Fund, Inc.
Shares 11,077,866
Cost $ 12,072,713
Market Value......... -- -- -- -- --
Due from ITT Hartford
Life and Annuity
Insurance Company..... 3,078,430 2,174,683 199,531 353,517 630,190
Receivable from fund
shares sold........... -- -- -- -- --
---------------- ------------------- ---------------- ------------ --------------------
Total Assets........... 1,381,857,414 730,969,805 58,953,253 77,704,322 296,684,227
---------------- ------------------- ---------------- ------------ --------------------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... -- -- -- -- --
Payable for fund shares
purchased............. 3,079,208 2,077,476 199,813 352,232 630,405
---------------- ------------------- ---------------- ------------ --------------------
Total Liabilities...... 3,079,208 2,077,476 199,813 352,232 630,405
---------------- ------------------- ---------------- ------------ --------------------
Net Assets (variable
annuity contract
liabilities).......... $1,378,778,206 $728,892,329 $58,753,440 $77,352,090 $296,053,822
---------------- ------------------- ---------------- ------------ --------------------
---------------- ------------------- ---------------- ------------ --------------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 546,104,730 216,590,707 31,288,061 32,778,613 222,606,104
Unit Price............. $ 2.523174 $ 3.364100 $ 1.877823 $ 2.359499 $ 1.329133
ANNUITY CONTRACTS IN THE
ANNUITY PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 341,217 77,147 -- 4,656 135,955
Unit Price............. $ 2.523174 $ 3.364100 -- $ 2.359499 $ 1.329133
<CAPTION>
DIVIDEND AND INTERNATIONAL
GROWTH FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT
-------------- --------------
<S> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Stock Fund,
Inc.
Shares
Cost
Market Value......... -- --
HVA Money Market Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Advisers Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Mortgage
Securities Fund, Inc.
Shares
Cost
Market Value......... -- --
Hartford Index Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford International
Opportunities Fund,
Inc.
Shares
Cost
Market Value......... -- --
Hartford Dividend and
Growth Fund, Inc.
Shares
Cost
Market Value......... $137,407,880 --
Hartford International
Advisers Fund, Inc.
Shares
Cost
Market Value......... -- $12,285,686
Due from ITT Hartford
Life and Annuity
Insurance Company..... 631,307 260,766
Receivable from fund
shares sold........... -- --
-------------- --------------
Total Assets........... 138,039,187 12,546,452
-------------- --------------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... -- --
Payable for fund shares
purchased............. 631,199 260,768
-------------- --------------
Total Liabilities...... 631,199 260,768
-------------- --------------
Net Assets (variable
annuity contract
liabilities).......... $137,407,988 $12,285,684
-------------- --------------
-------------- --------------
DEFERRED ANNUITY
CONTRACTS IN THE
ACCUMULATION PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... 101,085,085 10,717,387
Unit Price............. $ 1.359330 $ 1.146332
ANNUITY CONTRACTS IN THE
ANNUITY PERIOD:
GROUP SUB-ACCOUNTS:
Units Owned by
Participants.......... -- --
Unit Price............. -- --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
63
<PAGE>
SEPARATE ACCOUNT ONE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 4,473,118 $ 8,060,168 $3,174,687
EXPENSES:
Mortality and expense
undertakings.......... (849,673) (4,494,824) (715,552)
-------------- -------------- -------------
Net investment income
(loss).............. 3,623,445 3,565,344 2,459,135
-------------- -------------- -------------
Capital gains income... -- 10,042,632 --
-------------- -------------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (1,975) (399) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 6,900,317 83,219,709 --
-------------- -------------- -------------
Net gains (losses) on
investments......... 6,898,342 83,219,310 --
-------------- -------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 10,521,787 $ 96,827,286 $2,459,135
-------------- -------------- -------------
-------------- -------------- -------------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MORTGAGE INTERNATIONAL
ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- --------------------- ------------------ -------------- ---------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 37,279,743 $ 4,568,672 $3,384,208 $ 994,421 $3,826,860
EXPENSES:
Mortality and expense
undertakings.......... (12,986,784) (5,984,299) (646,041) (492,015) (2,966,452)
--------------- --------------------- ------------------ -------------- ---------------------
Net investment income
(loss).............. 24,292,959 (1,415,627) 2,738,167 502,406 860,408
--------------- --------------------- ------------------ -------------- ---------------------
Capital gains income... 10,002,290 17,026,540 -- 8,809 1,900,624
--------------- --------------------- ------------------ -------------- ---------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (7,267) (36,921) 8,806 (2,982) 18,072
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 206,272,399 92,059,097 4,247,716 10,397,357 26,882,909
--------------- --------------------- ------------------ -------------- ---------------------
Net gains (losses) on
investments......... 206,265,132 92,022,176 4,256,522 10,394,375 26,900,981
--------------- --------------------- ------------------ -------------- ---------------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 240,560,381 $107,633,089 $6,994,689 $ 10,905,590 $29,662,013
--------------- --------------------- ------------------ -------------- ---------------------
--------------- --------------------- ------------------ -------------- ---------------------
<CAPTION>
DIVIDEND AND INTERNATIONAL
GROWTH FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT*
----------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 1,822,404 $276,395
EXPENSES:
Mortality and expense
undertakings.......... (782,804) (34,070)
----------------- ---------------
Net investment income
(loss).............. 1,039,600 242,325
----------------- ---------------
Capital gains income... -- --
----------------- ---------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (3,380) 560
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 17,906,285 212,972
----------------- ---------------
Net gains (losses) on
investments......... 17,902,905 213,532
----------------- ---------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 18,942,505 $455,857
----------------- ---------------
----------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
65
<PAGE>
Separate Account One
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 3,623,445 $ 3,565,344 $ 2,459,135
Capital gains income... -- 10,042,632 --
Net realized gain
(loss) on security
transactions.......... (1,975) (399) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 6,900,317 83,219,709 --
------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 10,521,787 96,827,286 2,459,135
------------- ------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 25,372,374 158,137,004 80,712,314
Net transfers.......... 4,295,703 52,451,790 (20,394,095)
Surrenders............. (3,251,644) (10,089,748) (6,391,220)
Net annuity
transactions.......... -- 21,071 103,096
------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 26,416,433 200,520,117 54,030,095
------------- ------------- -------------
Total increase
(decrease) in net
assets................ 36,938,220 297,347,403 56,489,230
NET ASSETS:
Beginning of period.... 53,967,945 241,944,216 45,147,734
------------- ------------- -------------
End of period.......... $ 90,906,165 $ 539,291,619 $ 101,636,964
------------- ------------- -------------
------------- ------------- -------------
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------- -------------
OPERATIONS:
Net investment income
(loss)................ $ 2,545,533 $ 1,930,589 $ 953,750
Capital gains income... 757,945 8,908,976 --
Net realized gain
(loss) on security
transactions.......... (3,236) (23,731) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (5,831,746) (17,046,792) --
------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ (2,531,504) (6,230,958) 953,750
------------- ------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 21,372,612 89,041,867 40,174,720
Net transfers.......... (2,221,994) 28,767,921 (14,446,701)
Surrenders............. (2,964,388) (5,703,110) (2,731,912)
Net annuity
transactions.......... -- 73,792 --
------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 16,186,230 112,180,470 22,996,107
------------- ------------- -------------
Total increase
(decrease) in net
assets................ 13,654,726 105,949,512 23,949,857
NET ASSETS:
Beginning of period.... 40,313,219 135,994,704 21,197,877
------------- ------------- -------------
End of period.......... $ 53,967,945 $ 241,944,216 $ 45,147,734
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
* From inception, March 1, 1995 to December 31, 1995.
** From inception, March 8, 1994, to December 31, 1994.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL
CAPITAL MORTGAGE OPPORTUNITIES DIVIDEND AND
ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ----------------- --------------- ------------ ----------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 24,292,959 $ (1,415,627) $ 2,738,167 $ 502,406 $ 860,408 $ 1,039,600
Capital gains income... 10,002,290 17,026,540 -- 8,809 1,900,624 --
Net realized gain
(loss) on security
transactions.......... (7,267) (36,921) 8,806 (2,982) 18,072 (3,380)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 206,272,399 92,059,097 4,247,716 10,397,357 26,882,909 17,906,285
--------------- ----------------- --------------- ------------ ----------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 240,560,381 107,633,089 6,994,689 10,905,590 29,662,013 18,942,505
--------------- ----------------- --------------- ------------ ----------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 270,288,399 245,731,245 8,572,589 31,929,411 55,473,427 67,833,419
Net transfers.......... 82,728,374 82,630,293 (2,398,278) 14,672,676 9,777,060 30,210,279
Surrenders............. (40,365,223) (12,124,223) (2,985,486) (1,214,487) (6,662,350) (1,756,293)
Net annuity
transactions.......... 437,471 225,634 -- 9,937 147,629 --
--------------- ----------------- --------------- ------------ ----------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 313,089,021 316,462,949 3,188,825 45,397,537 58,735,766 96,287,405
--------------- ----------------- --------------- ------------ ----------------- -------------
Total increase
(decrease) in net
assets................ 553,649,402 424,096,038 10,183,514 56,303,127 88,397,779 115,229,910
NET ASSETS:
Beginning of period.... 825,128,804 304,796,291 48,569,926 21,048,963 207,656,043 22,178,078
--------------- ----------------- --------------- ------------ ----------------- -------------
End of period.......... $ 1,378,778,206 $728,892,329 $58,753,440 $ 77,352,090 $296,053,822 $137,407,988
--------------- ----------------- --------------- ------------ ----------------- -------------
--------------- ----------------- --------------- ------------ ----------------- -------------
INTERNATIONAL
CAPITAL MORTGAGE OPPORTUNITIES DIVIDEND AND
ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT**
--------------- ----------------- --------------- ------------ ----------------- -------------
OPERATIONS:
Net investment income
(loss)................ $ 15,380,919 $ (1,940,695) $ 2,663,939 $ 228,555 $ 293,757 $ 192,756
Capital gains income... 16,501,543 14,446,172 213,039 -- -- --
Net realized gain
(loss) on security
transactions.......... 23,627 (149,645) (34,292) (7,380) (12,268) (265)
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (59,864,328) (9,016,266) (4,263,500) (259,651) (6,002,430) (396,930)
--------------- ----------------- --------------- ------------ ----------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ (27,958,239) 3,339,566 (1,420,814) (38,476) (5,720,941) (204,439)
--------------- ----------------- --------------- ------------ ----------------- -------------
UNIT TRANSACTIONS:
Purchases.............. 323,714,540 122,054,442 10,417,811 7,532,638 101,186,682 15,598,653
Net transfers.......... 47,515,115 33,168,295 (6,272,107) 1,088,140 35,079,810 6,923,603
Surrenders............. (26,173,012) (5,255,587) (1,961,038) (680,688) (3,519,088) (139,739)
Net annuity
transactions.......... 176,273 23,166 -- -- 23,455 --
--------------- ----------------- --------------- ------------ ----------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 345,232,916 149,990,316 2,184,666 7,940,090 132,770,859 22,382,517
--------------- ----------------- --------------- ------------ ----------------- -------------
Total increase
(decrease) in net
assets................ 317,274,677 153,329,882 763,852 7,901,614 127,049,918 22,178,078
NET ASSETS:
Beginning of period.... 507,854,127 151,466,409 47,806,074 13,147,349 80,606,125 --
--------------- ----------------- --------------- ------------ ----------------- -------------
End of period.......... $ 825,128,804 $304,796,291 $48,569,926 $ 21,048,963 $207,656,043 $ 22,178,078
--------------- ----------------- --------------- ------------ ----------------- -------------
--------------- ----------------- --------------- ------------ ----------------- -------------
<CAPTION>
INTERNATIONAL
ADVISERS FUND
SUB-ACCOUNT*
-------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 242,325
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 560
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 212,972
-------------
Net increase (decrease)
in net assets
resulting from
operations............ 455,857
-------------
UNIT TRANSACTIONS:
Purchases.............. 8,715,018
Net transfers.......... 3,144,229
Surrenders............. (29,420)
Net annuity
transactions.......... --
-------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 11,829,827
-------------
Total increase
(decrease) in net
assets................ 12,285,684
NET ASSETS:
Beginning of period.... --
-------------
End of period.......... $12,285,684
-------------
-------------
OPERATIONS:
Net investment income
(loss)................
Capital gains income...
Net realized gain
(loss) on security
transactions..........
Net unrealized
appreciation
(depreciation) of
investments during the
period................
Net increase (decrease)
in net assets
resulting from
operations............
UNIT TRANSACTIONS:
Purchases..............
Net transfers..........
Surrenders.............
Net annuity
transactions..........
Net increase (decrease)
in net assets
resulting from unit
transactions..........
Total increase
(decrease) in net
assets................
NET ASSETS:
Beginning of period....
End of period..........
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
67
<PAGE>
SEPARATE ACCOUNT ONE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Separate Account One (the Account) is a separate investment account within
ITT Hartford Life & Annuity Insurance Company (the Company) and is
registered with the Securities and Exchange Commission (SEC) as a unit
investment trust under the Investment Company Act of 1940, as amended. Both
the Company and the Account are subject to supervision and regulation by the
Department of Insurance of the State of Connecticut and the SEC. The Account
invests deposits by variable annuity contractholders of the Company in
various mutual funds (the Funds) as directed by the contractholders.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains income
represents dividends from the Funds which are characterized as capital
gains under tax regulations.
b) SECURITY VALUATION--The investment in shares of the Hartford mutual funds
are valued at the closing net asset value per share as determined by the
appropriate Fund as of December 31, 1995.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
d) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in
the future could vary from the amounts derived from management's
estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
a) MORTALITY AND EXPENSE UNDERTAKINGS--The Company, as issuer of variable
annuity contracts, provides the mortality and expense undertakings and,
with respect to the Account, receives a maximum annual fee of 1.25% of
the Account's average daily net assets.
b) DEDUCTION OF ANNUAL MAINTENANCE FEE--Annual maintenance fees are deducted
through termination of units of interest from applicable contract owners'
accounts, in accordance with the terms of the contracts.
68
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT ONE AND TO THE
OWNERS OF UNITS OF INTEREST THEREIN:
We have audited the accompanying statement of assets & liabilities of ITT
Hartford Life & Annuity Insurance Company Separate Account One (the Account) as
of December 31, 1995, and the related statement of operations for the year then
ended and statements of changes in net assets for each of the two years in the
period then ended. These financial statements are the responsibility of the
Account's management. Our responsibility is to express an opinion on these
financial statements 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. 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 referred to above present fairly, in
all material respects, the financial position of ITT Hartford Life & Annuity
Insurance Company Separate Account One as of December 31, 1995, the results of
its operations for the year then ended and the changes in its net assets for
each of the two years in the period then ended, in conformity with generally
accepted accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
69
<PAGE>
Separate Account Five
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 297,873
Cost $ 299,247
Market Value......... $ 306,291 -- --
Hartford Stock Fund,
Inc.
Shares 1,089,818
Cost $3,622,270
Market Value......... -- $3,843,808 --
HVA Money Market Fund,
Inc.
Shares 4,656,679
Cost $4,656,679
Market Value......... -- -- $4,656,679
Hartford Advisers Fund,
Inc.
Shares 2,043,905
Cost $3,812,050
Market Value......... -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 2,152,670
Cost $7,296,846
Market Value......... -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 149,157
Cost $ 156,876
Market Value......... -- -- --
Hartford Index Fund,
Inc.
Shares 317,288
Cost $ 605,533
Market Value......... -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 1,017,908
Cost $1,269,495
Market Value......... -- -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 1,334,838
Cost $1,614,808
Market Value......... -- -- --
Hartford International
Advisers Fund, Inc.
Shares 142,134
Cost $ 152,699
Market Value......... -- -- --
Due from ITT Hartford
Life and Annuity
Insurance Company..... -- 7,510 --
Receivable from fund
shares sold........... 11,802 -- 22,832
------------ ----------- -----------
Total Assets........... 318,093 3,851,318 4,679,511
------------ ----------- -----------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... 11,802 -- 22,642
Payable for fund shares
purchased............. -- 7,507 --
------------ ----------- -----------
Total Liabilities...... 11,802 7,507 22,642
------------ ----------- -----------
Net Assets (variable
life contract
liabilities).......... $ 306,291 $3,843,811 $4,656,869
------------ ----------- -----------
------------ ----------- -----------
Units Outstanding...... 258,698 2,896,535 4,409,389
Accumulation Unit Value
at end of period...... $ 1.183971 $ 1.327038 $ 1.056126
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MORTGAGE INTERNATIONAL DIVIDEND
ADVISERS APPRECIATION SECURITIES OPPORTUNITIES AND INTERNATIONAL
FUND FUND FUND INDEX FUND FUND GROWTH FUND ADVISERS FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------- --------------- -------------- ---------- ---------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Hartford Bond Fund,
Inc.
Shares 297,873
Cost $ 299,247
Market Value......... -- -- -- -- -- -- --
Hartford Stock Fund,
Inc.
Shares 1,089,818
Cost $3,622,270
Market Value......... -- -- -- -- -- -- --
HVA Money Market Fund,
Inc.
Shares 4,656,679
Cost $4,656,679
Market Value......... -- -- -- -- -- -- --
Hartford Advisers Fund,
Inc.
Shares 2,043,905
Cost $3,812,050
Market Value......... $4,002,864 -- -- -- -- -- --
Hartford Capital
Appreciation Fund,
Inc.
Shares 2,152,670
Cost $7,296,846
Market Value......... -- $7,512,087 -- -- -- -- --
Hartford Mortgage
Securities Fund, Inc.
Shares 149,157
Cost $ 156,876
Market Value......... -- -- $ 159,788 -- -- -- --
Hartford Index Fund,
Inc.
Shares 317,288
Cost $ 605,533
Market Value......... -- -- -- $ 643,434 -- -- --
Hartford International
Opportunities Fund,
Inc.
Shares 1,017,908
Cost $1,269,495
Market Value......... -- -- -- -- $1,329,072 -- --
Hartford Dividend and
Growth Fund, Inc.
Shares 1,334,838
Cost $1,614,808
Market Value......... -- -- -- -- -- $1,758,008 --
Hartford International
Advisers Fund, Inc.
Shares 142,134
Cost $ 152,699
Market Value......... -- -- -- -- -- -- $ 17,633
Due from ITT Hartford
Life and Annuity
Insurance Company..... -- 281,988 -- -- 9,735 -- --
Receivable from fund
shares sold........... 257 -- 9,602 6,114 -- 11,040 9,012
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Total Assets........... 4,003,121 7,794,075 169,390 649,548 1,338,807 1,769,048 166,645
---------- --------------- -------------- ---------- ---------------- ----------- -------------
LIABILITIES:
Due to ITT Hartford
Life and Annuity
Insurance Company..... 260 -- 9,602 6,116 -- 11,048 9,012
Payable for fund shares
purchased............. -- 282,417 -- -- 9,736 -- --
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Total Liabilities...... 260 282,417 9,602 6,116 9,736 11,048 9,012
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Net Assets (variable
life contract
liabilities).......... $4,002,861 $7,511,658 $ 159,788 $ 643,432 $1,329,071 $1,758,000 $ 157,633
---------- --------------- -------------- ---------- ---------------- ----------- -------------
---------- --------------- -------------- ---------- ---------------- ----------- -------------
Units Outstanding...... 3,138,857 5,787,226 137,471 473,089 1,145,162 1,296,244 136,077
Accumulation Unit Value
at end of period...... $1.275261 $ 1.297972 $ 1.162324 $1.360070 $ 1.160597 $ 1.356226 $ 1.158392
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
71
<PAGE>
SEPARATE ACCOUNT FIVE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
FROM INCEPTION, JANUARY 10, 1995, TO DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
STOCK MARKET
BOND FUND FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------- --------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 5,592 $ 24,153 $74,755
---------- --------- ---------
Net investment income
(loss).............. 5,592 24,153 74,755
---------- --------- ---------
Capital gains income... -- 403 --
---------- --------- ---------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 275 (94) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 7,044 221,539 --
---------- --------- ---------
Net gains (losses) on
investments......... 7,319 221,445 --
---------- --------- ---------
Net increase (decrease)
in net assets
resulting from
operations............ $12,911 $246,001 $74,755
---------- --------- ---------
---------- --------- ---------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72
<PAGE>
<TABLE>
<CAPTION>
DIVIDEND
CAPITAL MORTGAGE INTERNATIONAL AND INTERNATIONAL
ADVISERS APPRECIATION SECURITIES INDEX OPPORTUNITIES GROWTH ADVISERS
FUND FUND FUND FUND FUND FUND FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT*
--------- -------------- ----------- -------- -------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 40,874 $ 17,693 $4,015 $ 4,467 $ 4,790 $ 13,879 $3,923
--------- -------------- ----------- -------- ------- ---------- ------
Net investment income
(loss).............. 40,874 17,693 4,015 4,467 4,790 13,879 3,923
--------- -------------- ----------- -------- ------- ---------- ------
Capital gains income... 120 541 -- 4 92 -- --
--------- -------------- ----------- -------- ------- ---------- ------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... (649) 1,253 105 (49) 20 425 301
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 190,815 215,241 2,911 37,902 59,577 143,200 4,932
--------- -------------- ----------- -------- ------- ---------- ------
Net gains (losses) on
investments......... 190,166 216,494 3,016 37,853 59,597 143,625 5,233
--------- -------------- ----------- -------- ------- ---------- ------
Net increase (decrease)
in net assets
resulting from
operations............ $231,160 $234,728 $7,031 $42,324 $64,479 $157,504 $9,156
--------- -------------- ----------- -------- ------- ---------- ------
--------- -------------- ----------- -------- ------- ---------- ------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
73
<PAGE>
Separate Account Five
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FROM INCEPTION JANUARY 10, 1995 TO DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY
BOND FUND STOCK FUND MARKET FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 5,592 $ 24,153 $ 74,755
Capital gains income... -- 403 --
Net realized gain
(loss) on security
transactions.......... 275 (94) --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 7,044 221,539 --
------------ ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations............ 12,911 246,001 74,755
------------ ------------- -------------
UNIT TRANSACTIONS:
Purchases.............. -- -- 23,888,562
Net transfers.......... 306,533 3,642,384 (18,864,634)
Surrenders............. (12,757) (33,294) (48,453)
Net loan withdrawals... -- (5,495) (372,799)
Cost of insurance and
other fees............ (396) (5,785) (20,562)
------------ ------------- -------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 293,380 3,597,810 4,582,114
------------ ------------- -------------
Total increase
(decrease) in net
assets................ 306,291 3,843,811 4,656,869
NET ASSETS:
Beginning of period.... -- -- --
------------ ------------- -------------
End of period.......... $ 306,291 $ 3,843,811 $ 4,656,869
------------ ------------- -------------
------------ ------------- -------------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
74
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MORTGAGE INTERNATIONAL DIVIDEND AND
ADVISERS FUND APPRECIATION FUND SECURITIES FUND INDEX FUND OPPORTUNITIES FUND GROWTH FUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ----------------- --------------- ------------ ------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 40,874 $ 17,693 $ 4,015 $ 4,467 $ 4,790 $ 13,879
Capital gains income... 120 541 -- 4 92 --
Net realized gain
(loss) on security
transactions.......... (649) 1,253 105 (49) 20 425
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 190,815 215,241 2,911 37,902 59,577 143,200
------------- ----------------- --------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from
operations............ 231,160 234,728 7,031 42,324 64,479 157,504
------------- ----------------- --------------- ------------ ------------------ ------------
UNIT TRANSACTIONS:
Purchases.............. -- -- -- -- -- --
Net transfers.......... 3,814,765 7,349,141 165,306 617,882 1,282,924 1,624,852
Surrenders............. (36,276) (45,663) (12,284) (15,806) (16,386) (21,482)
Net loan withdrawals... -- (16,773) -- (36) -- (36)
Cost of insurance and
other fees............ (6,788) (9,775) (265) (932) (1,946) (2,838)
------------- ----------------- --------------- ------------ ------------------ ------------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 3,771,701 7,276,930 152,757 601,108 1,264,592 1,600,496
------------- ----------------- --------------- ------------ ------------------ ------------
Total increase
(decrease) in net
assets................ 4,002,861 7,511,658 159,788 643,432 1,329,071 1,758,000
NET ASSETS:
Beginning of period.... -- -- -- -- -- --
------------- ----------------- --------------- ------------ ------------------ ------------
End of period.......... $ 4,002,861 $ 7,511,658 $ 159,788 $ 643,432 $ 1,329,071 $ 1,758,000
------------- ----------------- --------------- ------------ ------------------ ------------
------------- ----------------- --------------- ------------ ------------------ ------------
<CAPTION>
INTERNATIONAL
ADVISERS
FUND
SUB-ACCOUNT*
-----------
<S> <C>
OPERATIONS:
Net investment income
(loss)................ $ 3,923
Capital gains income... --
Net realized gain
(loss) on security
transactions.......... 301
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 4,932
-----------
Net increase (decrease)
in net assets
resulting from
operations............ 9,156
-----------
UNIT TRANSACTIONS:
Purchases.............. --
Net transfers.......... 160,888
Surrenders............. (12,083)
Net loan withdrawals... (34)
Cost of insurance and
other fees............ (294)
-----------
Net increase (decrease)
in net assets
resulting from unit
transactions.......... 148,477
-----------
Total increase
(decrease) in net
assets................ 157,633
NET ASSETS:
Beginning of period.... --
-----------
End of period.......... $157,633
-----------
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
75
<PAGE>
SEPARATE ACCOUNT FIVE
ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Separate Account Five (the Account) is a separate investment account within
ITT Hartford Life & Annuity Insurance Company (the Company) and is
registered with the Securities and Exchange Commission (SEC) as a unit
investment trust under the Investment Company Act of 1940, as amended. Both
the Company and the Account are subject to supervision and regulation by the
Department of Insurance of the State of Connecticut and the SEC. The Account
invests deposits by variable life contractholders of the Company in various
mutual funds (the Funds) as directed by the contractholders. The Account
commenced operations on January 10, 1995.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Cost of investments
sold is determined on the basis of identified cost. Dividend and capital
gains income are accrued as of the ex-dividend date. Capital gains income
represents dividends from the Funds which are characterized as capital
gains under tax regulations.
b) SECURITY VALUATION--The investment in shares of the Hartford mutual funds
are valued at the closing net asset value per share as determined by the
appropriate Fund as of December 31, 1995.
c) FEDERAL INCOME TAXES--The operations of the Account form a part of, and
are taxed with, the total operations of the Company, which is taxed as an
insurance company under the Internal Revenue Code. Under current law, no
federal income taxes are payable with respect to the operations of the
Account.
d) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in
the future could vary from the amounts derived from management's
estimates.
3. ADMINISTRATION OF THE ACCOUNT AND RELATED CHARGES:
In accordance with the terms of the contracts, the Company makes deductions
for mortality and expense undertakings, cost of insurance, administrative
fees, and state premium taxes. These charges are deducted through
termination of units of interest from applicable contract owners' accounts.
76
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO ITT HARTFORD LIFE & ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT FIVE AND TO THE
OWNERS OF UNITS OF INTEREST THEREIN:
We have audited the accompanying statement of assets & liabilities of ITT
Hartford Life & Annuity Insurance Company Separate Account Five (the Account)
as of December 31, 1995, and the related statement of operations and changes in
net assets for the period from inception, January 10, 1995, to December 31,
1995. These financial statements are the responsibility of the Account's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit 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. 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 audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of ITT Hartford Life & Annuity
Insurance Company Separate Account Five as of December 31, 1995, the results of
its operations and changes in net assets for the period from inception, January
10, 1995, to December 31, 1995, in conformity with generally accepted
accounting principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
77
<PAGE>
Hartford Bond Fund, Inc.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
LONG-TERM BONDS -- 92.8%
FEDERAL AGENCIES MORTGAGE
PASS-THROUGHS -- 5.6%
Federal National Mortgage
Association
$ 4,226,243 6.000% due 08/01/08 -
10/01/09.................... $ 4,183,907
5,000,000 6.500% due 11/01/10......... 5,025,000
9,950,000 7.000% due 12/01/25......... 10,037,690
-------------
19,246,597
-------------
FEDERAL AGENCIES -- 3.1%
Federal National Mortgage
Association
1,000,000 5.800% due 12/10/03......... 994,312
604,622 6.000% due 04/01/09......... 598,528
3,000,000 6.480% due 12/01/05......... 3,059,062
5,000,000 8.200% due 03/10/16......... 6,037,110
-------------
10,689,012
-------------
U.S. GOVERNMENT SECURITIES -- 29.4%
U.S. Treasury Bonds
12,400,000 8.125% due 08/15/19 -
08/15/21.................... 15,602,375
7,650,000 8.750% due 05/15/17......... 10,119,512
9,400,000 8.875% due 08/15/17......... 12,593,058
1,000,000 9.000% due 11/15/18......... 1,362,812
U.S. Treasury Notes
5,000,000 6.500% due 04/30/99 -
08/15/05.................... 5,197,185
20,550,000 6.875% due 02/28/97 -
07/31/99.................... 21,011,108
10,200,000 7.500% due 01/31/97 -
11/15/01.................... 10,601,682
8,000,000 8.750% due 10/15/97......... 8,475,000
12,000,000 10.750% due 02/15/03........ 15,660,000
-------------
100,622,732
-------------
BANKS -- 3.1%
Bank of New York
3,000,000 7.625% due 07/15/02......... 3,244,755
Chase Manhattan Corp.
3,000,000 7.750% due 11/01/99......... 3,197,640
Mellon Financial Co.
4,000,000 6.300% due 06/01/00......... 4,069,108
-------------
10,511,503
-------------
BEVERAGES -- 1.2%
Bacardi-Martini Finance
4,000,000 5.750% due 07/23/98......... 4,000,000
-------------
CONGLOMERATE -- 2.1%
Tenneco Inc.
6,850,000 8.000% due 11/15/99......... 7,330,671
-------------
FINANCIAL SERVICES -- 14.1%
Aristar Inc.
3,000,000 6.300% due 07/15/00......... 3,046,122
Associates Corp.
2,500,000 9.700% due 05/01/97......... 2,634,023
Donaldson Lufkin Jenrette
5,000,000 6.875% due 11/01/05......... 5,123,450
Duke Realty Investments
5,000,000 7.250% due 09/22/02......... 5,151,890
ERP Operating
2,500,000 6.625% due 12/22/97......... 2,506,202
Ford Motor Credit Company
3,000,000 7.750% due 11/15/02......... 3,272,955
General Motors Acceptance
Corp.
4,000,000 5.875% due 01/12/99......... 4,013,680
FINANCIAL SERVICES -- (CONTINUED)
Lehman Brothers
$ 3,000,000 10.000% due 05/15/99........ $ 3,350,703
Massachusetts Mutual Life
Insurance Company
5,000,000 7.625% due 11/15/23......... 5,234,750
Salomon Inc.
3,000,000 5.930% due 03/17/97......... 2,991,360
Salomon Inc.
3,000,000 6.940% due 09/15/97......... 3,035,550
Charles Schwab Medium Term
Note
3,000,000 6.630% due 08/04/98......... 3,055,470
Spieker Property Real Estate
Investments
5,000,000 6.650% due 12/15/00......... 4,995,400
-------------
48,411,555
-------------
FOREIGN GOVERNMENTS -- 10.3%
Abbey National First Capital
5,575,000 8.200% due 10/15/04......... 6,322,502
Ahmanson H.F. Co.
5,500,000 6.350% due 09/01/98......... 5,585,525
Banco Central Hispano
5,000,000 7.500% due 06/15/05......... 5,269,245
Bank of Montreal
3,000,000 10.000% due 09/01/98........ 3,319,080
KFW International Finance Inc.
5,000,000 7.000% due 03/01/13......... 5,346,975
Province of Manitoba Debenture
5,000,000 9.625% due 12/01/18......... 6,722,700
Skandinaviska Enskilda Banken
2,500,000 6.875% due 02/15/09......... 2,544,087
-------------
35,110,114
-------------
HEALTH CARE -- 0.8%
Columbia Healthcare
2,500,000 6.730% due 07/15/45......... 2,604,608
-------------
MEDIA -- 1.5%
News America Holdings Inc.
5,000,000 7.500% due 03/01/00......... 5,245,115
-------------
OIL & GAS -- 2.7%
Columbia Gas Systems Inc.
6,000,000 6.390% due 11/28/00......... 6,100,170
Union Oil Co. of California
Medium Term Note
2,500,000 9.375% due 02/15/11......... 3,171,175
-------------
9,271,345
-------------
PAPER CO. -- 0.6%
Georgia-Pacific Corp.
2,000,000 9.850% due 06/15/97......... 2,111,420
-------------
TECHNOLOGY -- 2.2%
ADT Operations
3,290,000 8.250% due 08/01/00......... 3,479,175
Motorola Inc.
3,100,000 8.400% due 08/15/31......... 3,912,922
-------------
7,392,097
-------------
TELECOMMUNICATIONS -- 3.6%
Cox Communications
5,000,000 6.500% due 11/15/02......... 5,089,320
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
78
<PAGE>
HARTFORD BOND FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- -------------
<C> <S> <C>
LONG-TERM BONDS -- (CONTINUED)
Tele-Communications, Inc.
$ 4,500,000 8.650% due 09/15/04......... $ 5,019,782
TELECOMMUNICATIONS -- (CONTINUED)
Time Warner Entertainment
2,000,000 8.375% due 03/15/23......... 2,166,242
-------------
12,275,344
-------------
UTILITIES -- 5.8%
Bell Telephone Co. of
Pennsylvania
3,000,000 8.350% due 12/15/30......... 3,802,584
Chesapeake & Potomac Telephone
1,500,000 8.300% due 08/01/31......... 1,840,581
Commonwealth Edison First
Mortgage
1,450,000 5.250% due 04/01/96......... 1,446,868
Commonwealth Edison
7,000,000 6.375% due 07/15/00......... 7,103,243
GTE Corp.
5,000,000 9.100% due 06/01/03......... 5,789,280
-------------
19,982,556
-------------
ASSET-BACKED BONDS -- 6.7%
Amex 92-1A
2,000,000 6.050% due 06/15/98......... 2,017,480
Discover 93-1
3,000,000 5.300% due 10/16/01......... 2,956,890
Discover 91-E
5,000,000 7.850% due 05/21/99......... 5,138,550
Oakwood 94-A B1
4,631,230 8.400% due 02/15/15......... 4,726,772
SCC 91-3 B
5,615,000 9.250% due 09/07/98......... 6,085,257
SCC 91-6 B
2,000,000 8.350% due 01/07/00......... 2,139,340
-------------
23,064,289
-------------
Total long-term bonds......... $ 317,868,958
-------------
-------------
SHORT-TERMS SECURITIES -- 3.3%
REPURCHASE AGREEMENT
$11,382,000 Interest in $24,574,000 joint
repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $11,389,398;
(Collateralized by
$24,574,000 U.S. Treasury
Note 5.125% due 12/31/98)... $ 11,382,000
-------------
-------------
DIVERSIFICATION OF ASSETS:
Total long-term bonds........................ 92.8 % $317,868,958
Total short-term securities.................. 3.3 11,382,000
------ ------------
Total investment in securities
*(Identified cost $313,830,896)............ 96.1 329,250,958
Excess of cash and receivables over
liabilities................................ 3.9 13,243,989
------ ------------
Net assets (Applicable to $1.02826 per share
based on 333,082,054 shares outstanding)... 100.0% $342,494,947
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 333,082,054
shares............................................. $ 33,308,205
Capital surplus...................................... 304,781,775
Undistributed net realized (loss) on investments..... (11,015,095)
Unrealized appreciation of investments............... 15,420,062
------------
Net assets, applicable to shares outstanding......... $342,494,947
------------
------------
</TABLE>
* Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
79
<PAGE>
HARTFORD STOCK FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS -- 89.5%
COMMUNICATIONS EQUIPMENT -- 2.1%
*60,000 Cisco Systems Inc............. $ 4,477,500
*200,000 DSC Communications............ 7,375,000
285,000 Motorola Inc.................. 16,245,000
*250,000 3Com Corp..................... 11,656,250
---------------
39,753,750
---------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.1%
*100,000 Compaq Computer............... 4,800,000
320,000 International Business Machine
Corp........................ 29,360,000
180,000 Xerox......................... 24,660,000
---------------
58,820,000
---------------
CONSUMER DURABLES -- 0.9%
0.25 Chrysler Corp................. 14
200,000 Ford Motor Corp............... 5,800,000
225,000 General Motors Class E........ 11,700,000
---------------
17,500,014
---------------
CONSUMER NON-DURABLES -- 11.0%
275,000 Anheuser Busch Cos. Inc....... 18,390,625
230,000 Colgate Palmolive Co.......... 16,157,500
150,000 Duracell International Inc.... 7,762,500
350,000 General Mills Company......... 20,212,500
250,000 Kimberly Clark Corp........... 20,687,500
92,200 Estee Lauder Co.-Class A...... 3,215,475
470,000 Pepsico Inc................... 26,261,250
450,000 Philip Morris................. 40,725,000
360,000 Proctor and Gamble............ 29,880,000
707,000 Sara Lee Corp................. 22,535,625
---------------
205,827,975
---------------
CONSUMER SERVICES -- 0.9%
*169,000 Autotote...................... 297,863
*375,000 Circus Circus Enterprises..... 10,453,125
150,000 Service Corp.................. 6,600,000
---------------
17,350,988
---------------
ENERGY AND SERVICES -- 7.0%
375,000 Amoco Corporation............. 26,953,125
536,800 Burlington Resources.......... 21,069,400
500,000 Exxon......................... 40,062,500
79,300 Hong Kong Telecom Ltd.-Sp
ADR......................... 1,407,575
300,000 Schlumberger Ltd.............. 20,775,000
383,664 Total S.A. ADR................ 13,044,576
300,000 Unocal Corp................... 8,737,500
---------------
132,049,676
---------------
FINANCIAL SERVICES -- 14.7%
500,000 Allstate Corp................. 20,562,500
600,000 American Express Co........... 24,825,000
225,000 American International
Group....................... 20,812,500
110,000 Bank of New York Co........... 5,362,500
550,000 Citicorp...................... 36,987,500
82,500 Franklin Resources Inc........ 4,155,938
300,000 Greenpoint Financial Corp..... 8,025,000
250,000 Marsh and McLennan Cos.,
Inc......................... 22,187,500
450,000 Merrill Lynch & Co. Inc....... 22,950,000
250,000 J.P. Morgan................... 20,062,500
260,000 Nationsbank Corp.............. 18,102,500
575,000 Salomon Inc................... 20,412,500
FINANCIAL SERVICES -- (CONTINUED)
400,000 State Street Boston Corp...... $ 18,000,000
525,000 Travelers Group Inc........... 33,009,375
---------------
275,455,313
---------------
FOREIGN STOCKS-JAPAN -- 2.0%
200,000 Eisai Co. Ltd................. 3,499,952
200,000 Fuji Bank Ltd................. 4,408,779
300,000 Matsushita Electric Co........ 4,872,861
300,000 Nomura Securities............. 6,526,153
189,000 Sankyo........................ 4,239,389
200,000 Sanwa Bank Ltd................ 4,060,717
240,000 Takeda Chemical Industries
Ltd......................... 3,944,697
300,000 Toyota Motor Corp............. 6,352,122
---------------
37,904,670
---------------
HEALTH CARE -- 11.8%
825,000 Abbott Laboratories........... 34,443,750
*175,000 Alza Corp. Del................ 4,331,250
190,000 American Home Products
Corp........................ 18,430,000
250,000 Bristol-Myers Squibb
Company..................... 21,468,750
270,000 Johnson & Johnson............. 23,118,750
475,000 Pfizer, Inc................... 29,925,000
400,000 SmithKline Beecham PLC ADR
Unit........................ 22,200,000
775,000 US Healthcare Inc............. 36,037,500
320,000 Warner-Lambert Company........ 31,080,000
---------------
221,035,000
---------------
INDUSTRIAL MATERIALS -- 5.8%
240,000 Air Products & Chemical
Corp........................ 12,660,000
*400,000 Crown Cork & Seal............. 16,700,000
400,000 Dow Chemical.................. 28,150,000
230,000 Dupont EI De Nemours.......... 16,071,250
450,000 International Paper Co........ 17,043,750
700,000 Louisiana Pacific Corp........ 16,975,000
---------------
107,600,000
---------------
MANUFACTURING -- 4.4%
190,000 Boeing Company................ 14,891,250
800,000 General Electric.............. 57,600,000
305,000 Ingersoll-Rand Company........ 10,713,125
---------------
83,204,375
---------------
MEDIA & SERVICES -- 7.6%
220,000 Capital Cities/ABC Inc........ 27,142,500
100,000 Dun & Bradstreet Corp......... 6,475,000
450,000 Gannett Co., Inc.............. 27,618,750
613,750 Gaylord Entertainment Class
A........................... 17,031,562
450,000 Time Warner Inc............... 17,043,750
1,005,000 Viacom Inc-Class B............ 47,611,875
---------------
142,923,437
---------------
REAL ESTATE -- 0.9%
400,000 General Growth Properties..... 8,300,000
350,000 Spieker Properties............ 8,793,750
---------------
17,093,750
---------------
RETAIL -- 7.7%
450,000 Albertson's Inc............... 14,793,750
500,000 Home Depot Inc................ 23,937,500
360,000 May Department Stores Co...... 15,210,000
950,000 McDonalds Corp................ 42,868,750
*325,000 Toys R Us..................... 7,068,750
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
80
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- ---------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- (CONTINUED)
1,820,000 Wal-Mart...................... $ 40,722,500
---------------
144,601,250
---------------
SOFTWARE & SERVICES -- 2.5%
165,000 Computer Sciences Corp........ 11,591,250
235,000 First Data Corp............... 15,715,624
*180,000 Microsoft Corp................ 15,795,000
*109,400 Sybase Inc.................... 3,938,400
---------------
47,040,274
---------------
TRANSPORTATION -- 2.8%
*250,000 AMR........................... 18,562,500
725,000 Southwest Airlines............ 16,856,250
255,000 Union Pacific Corp............ 16,830,000
---------------
52,248,750
---------------
UTILITY -- 4.3%
680,000 AT&T Corp..................... 44,030,000
950,000 MCI Communications............ 24,818,750
52,250 Portugal Telecom S.A. ADR..... 992,750
250,000 Texas Utilities............... 10,281,250
---------------
80,122,750
---------------
Total common stocks........... $ 1,680,531,972
---------------
---------------
PREFERRED STOCKS -- 2.8%
CONSUMER NON-DURABLES -- 1.7%
5,000,000 RJR Nabisco Perferred Equity
Redemptive Cumulative
Stock....................... 31,875,000
---------------
ENERGY -- 0.6%
191,000 Occidental Petroleum 144A..... 10,409,500
---------------
REAL ESTATE -- 0.5%
347,500 Security Pacific Trust........ 8,513,750
---------------
Total preferred stocks........ $ 50,798,250
---------------
---------------
PRINCIPAL
AMOUNT
- -----------
CONVERTIBLE CORPORATE BONDS -- 0.7%
BUSINESS SERVICES -- 0.3%
Empresas ICA Sociedad
$12,150,000 5.000% due 03/15/04......... 6,500,250
---------------
FINANCIAL SERVICES -- 0.2%
MBL International Finance
3,000,000 3.000% due 11/30/02......... 3,525,000
---------------
PRIVATE PLACEMENT -- 0.2%
Autotote Corporation
16,000,000 4.950% due 08/20/01......... 3,765,986
---------------
Total convertible corporate
bonds....................... $ 13,791,236
---------------
---------------
SHORT-TERM SECURITIES -- 6.5%
$87,770,000 Repurchase Agreement dated
12/29/95 with Aubrey Lanston
5.900% due 01/02/96;
maturity amount $87,827,538;
(Collateralized by
$61,260,000 U.S. Treasury
Notes 5.875% to 6.250% due
08/15/98 to 08/31/00 and by
$26,450,000 U.S. Treasury
Bill 4.980% due 05/30/96)... $ 87,770,000
35,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $35,024,111;
(Collateralized by
$40,490,000 Federal National
Mortgage Association 9.000%
due 03/01/25)............... 35,000,000
---------------
Total short-term securities... $ 122,770,000
---------------
---------------
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 89.5% $1,680,531,972
Total preferred stocks....................... 2.8 50,798,250
Total convertible corporate bonds............ 0.7 13,791,236
Total short-term securities.................. 6.5 122,770,000
------ --------------
Total investment in securities
**(Identified cost $1,528,375,612)......... 99.5 1,867,891,458
Excess of cash and receivables over
liabilities................................ 0.5 8,992,156
------ --------------
Net assets (Applicable to $3.52702 per share
based on 532,144,279 shares outstanding)... 100.0% $1,876,883,614
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 532,144,279
shares............................................. $ 53,214,428
Capital surplus...................................... 1,403,332,247
Undistributed net realized gain on investments....... 80,821,093
Unrealized appreciation of investments............... 339,515,846
--------------
Net assets, applicable to shares outstanding......... $1,876,883,614
--------------
--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
81
<PAGE>
HVA Money Market Fund, Inc.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
AMORTIZED AMORTIZED
PRINCIPAL COST AND PRINCIPAL COST AND
Amount VALUE AMOUNT VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER -- 78.6%
Abbey National North America
$ 5,000,000 5.570% due 03/06/96.............. $ 4,950,489
5,000,000 5.715% due 01/02/96.............. 5,000,000
Air Products & Chemicals
5,000,000 5.385% due 06/21/96.............. 4,872,106
American Honda Finance
5,000,000 5.530% due 02/02/96.............. 4,975,760
ANZ (Delaware) Inc.
10,000,000 5.670% due 01/05/96 - 02/13/96... 9,964,563
Aristar Inc
9,500,000 5.750% due 01/08/96 - 01/16/96... 9,485,146
Bass Finance C.I. Ltd.
5,000,000 5.680% due 02/16/96.............. 4,964,500
Bausch & Lomb Inc.
5,000,000 5.700% due 01/26/96.............. 4,981,000
5,000,000 5.710% due 01/19/96.............. 4,986,518
Colgate-Palmolive
5,000,000 5.620% due 03/08/96.............. 4,948,483
Corporate Asset Funding Company
10,000,000 5.650% due 02/16/96 - 02/23/96... 9,923,882
Dean Witter, Discover Card
9,000,000 5.700% due 01/08/96 - 01/31/96... 8,973,242
Eaton Corp.
5,000,000 5.500% due 05/30/96.............. 4,886,181
Electronic Data Systems
10,000,000 5.580% due 03/15/96.............. 9,886,850
Finova Capital
5,000,000 5.800% due 03/07/96.............. 4,947,639
5,000,000 5.940% due 01/26/96.............. 4,980,200
General Motors Acceptance Corp.
5,000,000 5.610% due 03/06/96.............. 4,950,133
5,500,000 5.700% due 02/16/96.............. 5,460,813
General Signal Corp.
5,000,000 5.800% due 02/22/96.............. 4,958,917
Goldman Sachs Group Limited
Partnership
5,000,000 5.540% due 04/04/96.............. 4,928,442
Hanson Finance (UK)
5,000,000 5.640% due 02/28/96.............. 4,955,350
5,000,000 5.650% due 02/21/96.............. 4,960,764
Merrill Lynch & Co.
10,000,000 5.730% due 01/31/96.............. 9,953,842
National Rural Utilities
5,000,000 5.640% due 02/14/96.............. 4,966,317
5,000,000 5.650% due 02/20/96.............. 4,961,549
NYNEX Corp.
5,000,000 5.720% due 02/07/96.............. 4,971,400
5,000,000 5.810% due 02/05/96.............. 4,972,564
Pacific Dunlop Holding
5,000,000 5.680% due 02/29/96.............. 4,954,244
RTZ America Inc.
10,000,000 5.700% due 01/18/96 - 01/23/96... 9,970,708
A H Robins
5,000,000 5.470% due 04/12/96.............. 4,923,268
Sharp Electronics Corp.
5,000,000 5.660% due 01/26/96.............. 4,981,133
5,000,000 5.710% due 02/09/96.............. 4,969,864
Sherwood Medical
5,000,000 5.700% due 02/29/96.............. 4,954,083
Spintab
5,000,000 5.570% due 03/18/96.............. 4,941,206
5,000,000 5.660% due 01/19/96.............. 4,986,636
Svenska Handelsbanken Inc.
5,000,000 5.700% due 02/05/96.............. 4,973,083
5,000,000 5.720% due 01/26/96.............. 4,980,932
Tambrands Inc.
$ 5,000,000 5.590% due 04/26/96.............. $ 4,910,715
5,000,000 5.600% due 04/08/96.............. 4,924,556
Transamerica Finance Co.
5,000,000 5.500% due 04/15/96.............. 4,920,556
5,000,000 5.700% due 01/10/96.............. 4,993,667
Westpac Capital Corp.
5,000,000 5.450% due 05/13/96.............. 4,900,082
5,000,000 5.500% due 05/13/96.............. 4,899,166
Whirlpool Corp.
10,000,000 5.760% due 01/17/96.............. 9,976,000
Zeneca, Inc. D/N
10,000,000 5.720% due 01/11/96.............. 9,985,700
--------------
Total commercial paper............. $ 266,912,249
--------------
--------------
U.S. TREASURY NOTES -- 1.4%
U.S. Treasury Notes
5,000,000 6.250% due 08/31/96.............. 5,010,394
--------------
REPURCHASE AGREEMENT -- 16.3%
55,210,000 Repurchase agreement dated 12/29/95
with Salomon Brothers 5.900% due
01/02/96; maturity amount
$55,246,193; (Collateralized by
$57,575,000 U.S. Treasury Bills
4.930% due 06/06/96)............. 55,210,000
--------------
Total short-term securities........ $ 327,132,643
--------------
--------------
NON-CONVERTIBLE CORPORATE NOTES -- 10.6%
American Honda Finance
$ 5,000,000 5.875% due 03/01/96.............. 5,000,000
Associate Corp. of America
5,500,000 4.940% due 04/02/96.............. 5,486,295
Avery Dennison Medium Term Note
4,000,000 8.400% due 04/15/96.............. 4,028,598
Bell Atlantic
5,000,000 5.500% due 06/13/96.............. 4,988,740
General Electric Capital
5,000,000 5.970% due 08/21/96.............. 4,999,160
Grand Metropolitan Investments
6,000,000 8.125% due 08/15/96.............. 6,074,618
U.S. Leasing International Inc.
5,500,000 8.750% due 05/01/96.............. 5,549,399
--------------
Total non-convertible corporate
notes............................ $ 36,126,810
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total short-term securities.................. 96.3 % $327,132,643
Total non-convertible corporate notes........ 10.6 36,126,810
------ ------------
Total investment in securities
*(Identified cost $363,259,453)............ 106.9 363,259,453
Excess of liabilities over cash and
receivables................................ (6.9) (23,550,870)
------ ------------
Net assets (Applicable to $1.00 per share
based on 339,708,583 shares outstanding)... 100.0% $339,708,583
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share;
authorized 800,000,000 shares; outstanding
339,708,583 shares......................... $ 33,970,858
Capital surplus.............................. 305,737,725
------------
Net assets, applicable to shares outstanding......... $339,708,583
------------
------------
<FN>
* Aggregate cost for Federal income tax purposes.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
82
<PAGE>
HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- 58.6%
COMMUNICATION EQUIPMENT --
1.1%
*70,000 Cisco Systems Inc............. $ 5,223,750
*200,000 DSC Communications............ 7,375,000
395,000 Motorola Inc.................. 22,515,000
*250,000 3 Com Corp.................... 11,656,250
--------------
46,770,000
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 2.0%
*125,000 Compaq Computer............... 6,000,000
440,000 International Business Machine
Corp........................ 40,370,000
280,000 Xerox......................... 38,360,000
--------------
84,730,000
--------------
CONSUMER DURABLES -- 0.6%
0.25 Chrysler Corp................. 14
500,000 Ford Motor Corp............... 14,500,017
250,000 General Motors Class E........ 13,000,000
--------------
27,500,031
--------------
CONSUMER NON-DURABLES -- 7.3%
405,000 Anheuser Busch Cos. Inc....... 27,084,375
320,000 Colgate Palmolive Co.......... 22,480,000
250,000 Duracell International Inc.... 12,937,500
500,000 General Mills Company......... 28,875,000
400,000 Kimberly Clark Corp........... 33,100,000
109,400 Estee Lauder Co.-Class A...... 3,815,325
710,000 Pepsico Inc................... 39,671,250
650,000 Philip Morris................. 58,825,000
580,000 Proctor and Gamble............ 48,140,000
1,218,000 Sara Lee Corp................. 38,823,750
--------------
313,752,200
--------------
CONSUMER SERVICES -- 0.7%
*253,500 Autotote...................... 446,794
*700,000 Circus Circus Enterprises..... 19,512,500
200,000 Service Corp. International... 8,800,000
--------------
28,759,294
--------------
ENERGY AND SERVICES -- 4.6%
575,000 Amoco Corporation............. 41,328,125
684,200 Burlington Resources.......... 26,854,850
765,000 Exxon......................... 61,295,625
79,400 Hong Kong Telecom Ltd......... 1,409,350
500,000 Schlumberger Ltd.............. 34,625,000
558,664 Total S.A. ADR................ 18,994,576
375,000 Unocal Corp................... 10,921,875
--------------
195,429,401
--------------
FINANCIAL SERVICES -- 9.5%
900,000 Allstate Corp................. 37,012,500
850,000 American Express Co........... 35,168,750
300,000 American International
Group....................... 27,750,000
260,000 Bank of New York Co........... 12,675,000
800,000 Citicorp...................... 53,800,000
67,500 Franklin Resources Inc........ 3,400,313
300,000 Greenpoint Financial.......... 8,025,000
400,000 Marsh and McLennan Cos.,
Inc......................... 35,500,000
600,000 Merrill Lynch & Co. Inc....... 30,600,000
440,000 J.P. Morgan................... 35,310,000
410,000 Nationsbank Corp.............. 28,546,250
775,000 Salomon Inc................... 27,512,500
450,000 State Street Boston Corp...... $ 20,250,000
875,000 Travelers Group Inc........... 55,015,625
--------------
410,565,938
--------------
FOREIGN STOCKS - JAPAN -- 1.3%
300,000 Eisai Co. Ltd................. 5,249,928
300,000 Fuji Bank Ltd................. 6,613,168
450,000 Matsushita Electric Co........ 7,309,291
450,000 Nomura Securities............. 9,789,230
285,000 Sankyo........................ 6,392,729
300,000 Sanwa Bank Ltd................ 6,091,076
280,000 Takeda Chem Inds Ltd.......... 4,602,147
450,000 Toyota Motor Corp............. 9,528,183
--------------
55,575,752
--------------
HEALTH CARE -- 7.6%
1,175,000 Abbott Laboratories........... 49,056,250
*200,000 Alza Corp. Del................ 4,950,000
250,000 American Home Products
Corp........................ 24,250,000
360,000 Bristol-Myers Squibb
Company..................... 30,915,000
440,000 Johnson & Johnson............. 37,675,000
650,000 Pfizer, Inc................... 40,950,000
HEALTH CARE -- (CONTINUED)
625,000 SmithKline Beecham PLC ADR
Unit........................ 34,687,500
1,150,000 US Healthcare Inc............. 53,475,000
480,000 Warner-Lambert Company........ 46,620,000
--------------
322,578,750
--------------
INDUSTRIAL MATERIALS -- 3.8%
360,000 Air Products & Chemical
Corp........................ 18,990,000
*550,000 Crown Cork & Seal............. 22,962,500
590,000 Dow Chemical.................. 41,521,250
400,000 Dupont EI De Nemours.......... 27,950,000
710,000 International Paper Co........ 26,891,250
1,000,000 Louisiana Pacific Corp........ 24,250,000
--------------
162,565,000
--------------
MANUFACTURING -- 2.9%
235,000 Boeing Company................ 18,418,125
1,200,000 General Electric.............. 86,400,000
525,000 Ingersoll-Rand Company........ 18,440,625
--------------
123,258,750
--------------
MEDIA & SERVICES -- 5.0%
340,000 Capital Cities/ABC Inc........ 41,947,500
100,000 Dun & Bradstreet Corp......... 6,475,000
685,000 Gannett Co., Inc.............. 42,041,875
886,750 Gaylord Entertainment Class
A........................... 24,607,312
700,000 Time Warner Inc............... 26,512,500
1,500,000 Viacom Inc.-Class B........... 71,062,500
--------------
212,646,687
--------------
REAL ESTATE -- 0.6%
600,000 General Growth Properties..... 12,450,000
500,000 Spieker Properties............ 12,562,500
--------------
25,012,500
--------------
RETAIL -- 5.2%
1,000,000 Albertson's Inc............... 32,875,000
700,000 Home Depot Inc................ 33,512,500
600,000 May Department Stores Co...... 25,350,000
1,375,000 McDonalds Corp................ 62,046,875
*400,000 Toys R Us..................... 8,700,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
83
<PAGE>
HARTFORD ADVISERS FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET PRINCIPAL MARKET
SHARES VALUE AMOUNT VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
U.S. TREASURY BONDS --
(CONTINUED)
2,600,000 Wal-Mart...................... $ 58,175,000
--------------
220,659,375
--------------
SOFTWARE & SERVICES -- 1.7%
285,000 Computer Sciences Corp........ 20,021,250
385,000 First Data Corp............... 25,746,875
*250,000 Microsoft Corp................ 21,937,500
*109,300 Sybase Inc.................... 3,934,800
--------------
71,640,425
--------------
TRANSPORTATION -- 1.9%
*390,000 AMR........................... 28,957,500
1,000,000 Southwest Airlines............ 23,250,000
445,000 Union Pacific Corp............ 29,370,000
--------------
81,577,500
--------------
UTILITIES -- 2.8%
980,000 AT&T Corp..................... 63,455,000
1,375,000 MCI Communications............ 35,921,875
80,500 Portugal Telecom S.A.......... 1,529,500
400,000 Texas Utilities............... 16,450,000
--------------
117,356,375
--------------
Total common stocks........... $2,500,377,978
--------------
--------------
PREFERRED STOCKS -- 1.9%
CONSUMER NON-DURABLES -- 1.0%
7,000,000 RJR Nabisco Preferred Equity
Redemptive Cumulative
Stock....................... 44,625,000
--------------
ENERGY -- 0.5%
397,200 Occidental Petroleum 144A..... 21,647,400
--------------
REAL ESTATE -- 0.4%
591,900 Security Pacific Trust........ 14,501,550
--------------
Total preferred stocks........ $ 80,773,950
--------------
--------------
PRINCIPAL
AMOUNT
- -----------
U.S. TREASURIES & AGENCIES -- 28.5%
U.S. TREASURY BONDS -- 6.4%
$100,000,000 7.250% due 05/15/16......... 114,187,500
135,000,000 7.500% due 11/15/16......... 158,371,875
--------------
272,559,375
--------------
U.S. TREASURY NOTES -- 19.6%
150,000,000 6.250% due 05/31/00......... 155,109,300
200,000,000 6.375% due 08/15/02......... 210,125,000
100,000,000 6.500% due 08/15/97......... 102,000,000
225,000,000 7.500% due 12/31/99 -
02/15/05.................... 249,632,725
110,000,000 7.750% due 12/31/99......... 119,418,750
--------------
836,285,775
--------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 2.3%
94,549,939 8.000% due 03/15/23 -
04/15/25.................... 98,485,139
--------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 0.1%
572,662 6.000% due 02/01/20......... 565,685
2,445,379 8.750% due 08/25/21......... 2,565,618 U.S.)
TREASURIES &
AGENCIES --
(continued
$ 2,069,997 9.000% due 09/25/00......... $ 2,072,791
--------------
5,204,094
--------------
Total U.S. treasuries &
agencies.................... $1,212,534,383
--------------
--------------
CONVERTIBLE CORPORATE BONDS -- 0.4%
BUSINESS SERVICES -- 0.2%
Empresas ICA Sociedad
15,400,000 5.000% due 03/15/04......... 8,239,000
--------------
FINANCIAL SERVICES -- 0.1%
MBL International Finance
4,500,000 3.000% due 11/30/02......... 5,287,500
--------------
PRIVATE PLACEMENTS -- 0.1%
Autotote Corporation
24,000,000 4.950% due 08/20/01......... 5,648,978
--------------
Total convertible corporate
bonds....................... $ 19,175,478
--------------
--------------
NON-CONVERTIBLE CORPORATE BONDS -- 5.9%
ASSET-BACKED -- 0.1%
Discover Card 92-A
2,083,333 5.500% due 05/16/98......... 2,079,417
General Motors Acceptance
Corp. 92-D Grantor Trust
230,652 5.550% due 05/15/97......... 230,232
--------------
2,309,649
--------------
FEDERAL AGENCIES -- 0.1%
Resolution Trust Corp. 91-6 E
1,307,875 11.626% due 05/25/24........ 1,377,840
--------------
FINANCIAL SERVICES -- 4.3%
Bank of Boston Corp.
10,000,000 6.625% due 02/01/04......... 10,167,920
CIT Group Holdings
15,000,000 6.750% due 04/30/98......... 15,394,365
Chemical Banking Corp.
10,000,000 8.500% due 02/15/02......... 11,212,490
First Interstate Bank
12,000,000 9.000% due 11/15/04......... 13,198,884
First National Bank of Boston
5,000,000 8.000% due 09/15/04......... 5,556,390
Ford Motor Credit Company
10,000,000 5.625% due 12/15/98......... 9,987,440
General Motors Acceptance
Corp.
15,000,000 5.625% due 02/01/99......... 14,958,750
Great Western Financial
10,000,000 8.625% due 12/01/98......... 10,662,730
Home Savings America
15,000,000 6.000% due 11/01/00......... 14,984,550
London Insurance Group
15,000,000 6.875% due 09/15/05......... 15,512,145
Merrill Lynch Mortgage
Investors
251,918 6.850% due 04/15/12......... 251,780
Mount Sinai Med MBIA
20,000,000 6.000% due 07/01/03......... 19,775,000
National Bank of Detroit
5,000,000 8.250% due 11/01/24......... 5,855,075
Society National Bank
15,000,000 6.500% due 04/25/97......... 15,189,150
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
84
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET MARKET
VALUE VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
FINANCIAL SERVICES --
(CONTINUED)
Travelers Group 144A
$10,000,000 6.250% due 12/01/05......... $ 9,981,950
World Savings & Loan
Association
12,000,000 7.625% due 02/18/97......... 12,278,640
--------------
184,967,259
--------------
FOREIGN GOVERNMENT -- THAILAND
-- 0.2%
Thailand Kingdom
10,000,000 5.880% due 09/30/00......... 9,962,100
--------------
INDUSTRIAL -- 0.7%
Hertz Corp.
10,000,000 6.000% due 02/01/01......... 9,992,340
Southern California Gas Co.
10,000,000 5.750% due 11/15/03......... 9,719,930
Zeneca Group PLC
10,000,000 6.300% due 06/15/03......... 10,162,360
--------------
29,874,630
--------------
RETAIL -- 0.2%
JC Penney
9,500,000 6.000% due 05/01/06......... 9,305,136
--------------
UTILITY -- 0.3%
Pacific Gas & Electric
11,000,000 7.875% due 03/01/02......... 11,973,951
--------------
Total non-covertible corporate
bonds....................... $ 249,770,565
--------------
--------------
PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 3.9%
$85,050,000 Repurchase Agreement dated
12/29/95 with Aubrey Lanston
5.875% due 01/02/96;
maturity amount $85,105,519;
(Collateralized by
$89,345,000 U.S. Treasury
Bills 4.990% due
07/25/96)................... 85,050,000
$81,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $81,055,800;
(Collateralized by
$91,092,000 Federal National
Mortgage Association 9.000%
due 03/01/25)............... $ 81,000,000
--------------
Total short-term securities... 166,050,000
--------------
--------------
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 58.6% $2,500,377,978
Total preferred stocks....................... 1.9 80,773,950
Total U.S. treasuries & agencies............. 28.5 1,212,534,383
Total convertible corporate bonds............ 0.4 19,175,478
Total non-convertible corporate bonds........ 5.9 249,770,565
Total short-term securities.................. 3.9 166,050,000
------ --------------
Total investment in securities
**(Identified cost $3,637,244,031)......... 99.2 4,228,682,354
Excess cash and receivables over
liabilities................................ 0.8 34,086,395
------ --------------
Net assets (Applicable to $1.95844 per share
based on 2,176,614,093 shares
outstanding)............................... 100.0% $4,262,768,749
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
3,000,000,000 shares; outstanding 2,176,614,093
shares............................................. 217,661,408
Capital surplus...................................... 3,356,384,899
Undistributed net realized gain on investments....... 97,284,119
Unrealized appreciation of investments............... 591,438,323
--------------
Net assets, applicable to shares outstanding......... $4,262,768,749
--------------
--------------
<FN>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
</TABLE>
85
<PAGE>
Hartford U.S. Government Money Market Fund, Inc.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Amortized Amortized
Principal Cost and Cost and
Amount Value Value
- ----------- ------------- -------------
<C> <S> <C> <C> <C> <C>
U.S. GOVERNMENT & GOVERNMENT AGENCIES --
85.5% DIVERSIFICATION OF ASSETS:
</TABLE>
<TABLE>
<C> <S> <C>
Federal Farm Credit Bank
$ 500,000 5.430% due 03/20/96......... $ 494,118
1,000,000 5.450% due 03/11/96......... 989,554
500,000 5.560% due 02/01/96......... 497,683
500,000 5.570% due 01/09/96......... 499,458
Federal Home Loan Banks
500,000 5.430% due 03/12/96......... 494,721
500,000 5.500% due 02/28/96......... 495,646
1,500,000 5.550% due 02/29/96 -
03/22/96.................... 1,483,195
500,000 5.570% due 01/25/96......... 498,221
235,000 5.600% due 01/02/96......... 235,000
Federal National Mortgage
Association
500,000 5.280% due 04/04/96......... 493,180
450,000 5.580% due 02/09/96......... 447,350
1,000,000 5.670% due 01/19/96......... 997,323
U.S. Treasury Bills
1,000,000 5.250% due 05/02/96......... 982,354
-------------
8,607,803
-------------
REPURCHASE AGREEMENT -- 12.0%
1,208,000 Interest in $24,574,000 joint
repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $1,208,785;
(Collateralized by
$24,574,000 U.S. Treasury
Note 5.125% due 12/31/98) 1,208,000
-------------
Total short-term securities... $ 9,815,803
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
Total investment in short-term securities
*(Identified cost $9,815,803).............. 97.5% $ 9,815,803
Excess of cash and receivables over
liabilities................................ 2.5 254,464
------ ------------
Net assets (Applicable to $1.00 per share
based on 10,070,267 shares outstanding).... 100.0% $ 10,070,267
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Common stock, par value $.10 per share; authorized
100,000,000 shares; outstanding 10,070,267
shares............................................. $ 1,007,027
Capital surplus...................................... 9,063,240
------------
Net assets, applicable to shares outstanding......... $ 10,070,267
------------
------------
<FN>
* Aggregate cost for Federal income tax purposes.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
86
<PAGE>
HARTFORD CAPITAL APPRECIATION FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- 84.6%
</TABLE>
<TABLE>
<C> <S> <C>
BUSINESS SERVICES -- 1.9%
*165,000 Catalytica Inc................ $ 721,875
400,000 Ionics Inc.................... 17,400,000
200,000 Manpower Inc.................. 5,625,000
149,000 Pittston Services Group....... 4,674,875
320,300 Tetra Technologies............ 5,565,213
250,000 WMX Technologies Inc.......... 7,468,750
--------------
41,455,713
--------------
COMMUNICATION EQUIPMENT --
4.4%
465,000 Bay Networks.................. 19,123,125
*150,000 DSC Communications............ 5,531,250
510,000 General Instrument............ 11,921,250
240,000 Globalstar Telecom............ 9,060,000
185,000 Northern Telecom Ltd.......... 7,955,000
*500,000 Oak Industries Inc............ 9,375,000
*280,000 Picturetel Corp............... 12,075,000
*415,000 3 Com Corp.................... 19,349,375
--------------
94,390,000
--------------
COMPUTERS & OFFICE
EQUIPMENT -- 3.6%
250,000 Danka Business Systems PLC.... 9,250,000
*190,000 Digital Equipment Corp........ 12,183,750
480,600 Plaintree Systems Inc......... 2,883,600
645,000 Sensormatic Electronic........ 11,206,875
495,000 Stratus Computer.............. 17,139,375
510,000 Symbol Technologies........... 20,145,000
200,000 3d Systems Corp............... 4,750,000
--------------
77,558,600
--------------
CONSUMER DURABLES -- 1.0%
180,570 Chrysler Corp................. 9,999,064
395,000 International Imaging
Materials................... 9,973,750
230,000 Lojack Corporation............ 2,558,750
--------------
22,531,564
--------------
CONSUMER NON-DURABLES -- 2.4%
290,800 Baesa ADR..................... 5,997,750
215,000 Duracraft Corp................ 5,401,875
570,000 Fort Howard Corp.............. 12,825,000
700,000 Interstate Bakeries........... 15,662,500
300,000 Odwalla Inc................... 4,950,000
280,000 Universal Corp................ 6,825,000
--------------
51,662,125
--------------
ELECTRONICS -- 4.7%
360,000 Augat Inc..................... 6,165,000
*310,000 Cirrus Logic Inc.............. 6,122,500
620,000 Cognex Corp................... 21,545,000
300,000 Credence Systems Corp......... 6,862,500
*400,000 Cyrix Corp.................... 9,200,000
468,750 Molex Inc..................... 14,355,469
555,000 Philips NV ADR................ 19,910,625
220,000 Planar Systems Inc............ 4,207,500
410,000 Silicon Valley Group.......... 10,352,500
115,000 Vishay Intertechnology........ 3,622,500
--------------
102,343,594
--------------
ENERGY & SERVICES -- 6.0%
321,124 Coflexip ADR.................. 6,061,215
799,800 Diamond Offshore.............. 26,993,250
350,000 Ensco International Inc....... 7,262,500
ENERGY & SERVICES --
(CONTINUED)
$ 336,400 Energy Ventures............... $ 8,494,100
300,000 Input Output Inc.............. 17,325,000
300,000 Noble Affiliates Inc.......... 8,962,500
297,000 Pogo Producing Company........ 8,390,250
*586,000 Rowan Cos..................... 5,786,750
250,000 Seagull Energy................ 5,562,500
300,000 USX-Marathon Group............ 5,850,000
*300,000 Varco International........... 3,600,000
300,000 Vastar Resources Inc.......... 9,525,000
720,000 YPF S.A. Sponsored ADR........ 15,570,000
--------------
129,383,065
--------------
FINANCIAL SERVICES -- 11.0%
400,000 Ace Ltd....................... 15,900,000
431,000 Allstate Corp................. 17,724,875
153,400 Ambac Inc..................... 7,190,625
255,000 Charter One Financial......... 7,809,375
150,000 Chubb Corp.................... 14,512,500
700,000 Dime Bancorp Inc.............. 8,137,500
200,000 First Bank System Inc......... 9,925,000
650,000 Greenpoint Financial Corp..... 17,387,500
392,700 Imperial Credit Industries.... 8,541,225
420,000 Legg Mason Inc................ 11,550,000
200,070 Long Island Bancorp........... 5,276,846
442,300 Morgan Stanley Group.......... 35,660,438
600,000 North American Mortgage
Company..................... 12,750,000
700,000 Peoples Bank.................. 13,300,000
60,000 Pioneer Group Inc............. 1,635,000
376,100 Prepaid Legal Services........ 3,902,037
273,400 Prudential Reinsurance
Hldgs....................... 6,390,725
424,400 Transatlantic Holding Inc..... 31,140,350
300,000 Washington Mutual............. 8,662,500
--------------
237,396,496
--------------
FOREIGN SECURITIES -- 1.5%
300,000 Talisman Energy............... 6,073,653
229,050 Transocean As................. 3,955,990
209,902 Hafslund Nyco A-free.......... 5,479,303
409,300 Usinor Sacilor................ 5,349,290
700,000 Eisai Co. Ltd................. 12,249,832
--------------
33,108,068
--------------
HEALTHCARE -- 12.5%
290,000 Alpharma Inc.--Class A........ 7,576,250
*275,000 Apria Healthcare.............. 7,768,750
750,000 Bergen Brunswig Corp. Class
A........................... 18,656,250
600,000 Beverly Enterprises........... 6,375,000
*1,050,000 Biomet........................ 18,768,750
328,100 Datascope..................... 7,874,400
145,000 Genetics Institute............ 7,757,500
*348,750 Grancare Inc.................. 5,056,875
*450,000 Haemonetics................... 7,987,500
119,458 Hafslund Nycomed--Class B
ADR......................... 3,135,772
390,500 Idx Systems Corp.............. 13,569,875
150,000 Immunex....................... 2,475,000
369,700 Isolyser Company Inc.......... 5,175,800
391,700 Kinetic Concepts Inc.......... 4,700,400
350,000 Loewen Group Inc.............. 8,859,375
625,000 Magellan Health Services
Inc......................... 15,000,000
440,000 Medisense..................... 13,915,000
900,000 Perrigo....................... 10,687,500
799,600 Rhone-Poulenc SA.............. 17,091,450
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
87
<PAGE>
HARTFORD CAPITAL APPRECIATION FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
</TABLE>
HEALTHCARE -- (CONTINUED)
511,000 Rhone-Poulenc Rorer........... $ 27,210,750
400,000 Sola International Inc........ 10,100,000
445,000 Value Health Inc.............. 12,237,500
400,000 Vencor Inc.................... 13,000,000
*160,000 Vivus......................... 5,000,000
300,000 Zeneca Group ADR.............. 17,512,500
--------------
267,492,197
--------------
INDUSTRIAL MATERIAL -- 7.7%
423,000 Abitibi Price Inc............. 6,133,500
500,000 Alcan Aluminum Ltd............ 15,562,500
1,400,000 Algoma Steel Inc.............. 5,250,000
305,000 Beazer Homes USA Inc.......... 6,290,625
350,000 British Steel PLC-ADR......... 8,968,750
125,900 Commonwealth Aluminum......... 1,951,450
314,100 Georgia-Pacific Corp.......... 21,555,112
270,000 Morton International.......... 9,686,250
350,000 Nova Corp..................... 2,800,000
280,000 Owens Corning Fiberglass
Corp........................ 12,565,000
125,000 Phelps Dodge Corp............. 7,781,250
975,800 Precision Castparts Corp...... 38,788,050
1,480,000 Repap Enterprises............. 6,567,500
287,500 Southern Energy Homes Inc..... 5,031,250
600,000 Uniroyal Chemical............. 4,950,000
500,000 Wellman Inc................... 11,375,000
--------------
165,256,237
--------------
MANUFACTURING -- 4.1%
265,000 Boeing Company................ 20,769,375
*137,600 MSC Industrial Direct Class
A........................... 3,784,000
400,000 Measurex Corp................. 11,300,000
305,000 Northrop Grumman Corp......... 19,520,000
84,800 SPS Technologies Inc.......... 4,526,200
300,000 Wabash National Corp.......... 6,675,000
302,000 Watkins-Johnson Company....... 13,212,500
200,000 York International Corp....... 9,400,000
--------------
89,187,075
--------------
MEDIA & SERVICES -- 4.5%
75,000 Comcast UK Cable.............. 937,500
150,000 Lodgenet Entertainment
Corp........................ 1,425,000
891,700 Mobil Media Corp.............. 19,840,325
200,000 Rogers Cantel Mobile
Communications.............. 5,300,000
470,000 Royal Caribbean............... 10,340,000
*201,400 SFX Broadcasting Inc Class
A........................... 6,092,350
*1,120,000 Tele-Communications,
Inc.--Class A............... 22,260,000
469,999 Viacom Inc--Class B........... 22,266,203
*292,500 Young Broadcasting............ 8,263,125
--------------
96,724,503
--------------
REAL ESTATE -- 1.3%
300,000 Avalon Properties Inc......... 6,450,000
246,500 Felcor Suite Hotels Inc....... 6,840,375
200,000 Liberty Property Trust........ 4,150,000
130,000 Oasis Residential............. 2,957,500
175,000 Saul Centers Inc.............. 2,384,375
150,000 Starwood Lodging Trust........ 4,462,500
--------------
27,244,750
--------------
RETAIL -- 7.8%
300,000 Bed & Bath Beyond Inc......... 11,643,750
655,000 Cheesecake Factory............ 14,082,500
RETAIL -- (CONTINUED)
336,900 Eckerd Corp................... $ 15,034,163
435,000 Federated Department Store.... 11,962,500
200,000 Fila Holding SPA.............. 9,100,000
355,000 The Gap, Inc.................. 14,910,000
*217,300 Good Guys Inc................. 1,955,700
505,000 Gymboree Corp................. 10,415,625
240,000 Hollywood Entertainment
Corp........................ 2,010,000
671,700 Landry's Seafood
Restaurants................. 11,460,881
345,000 Mercantile Stores, Inc........ 15,956,250
310,000 Petsmart Inc.................. 9,610,000
258,500 Red Lion Hotels Inc........... 4,523,750
470,000 Sotheby's Holdings--Class A... 6,697,500
510,000 Sports and Recreation......... 3,633,750
245,700 The Sports Authority Inc...... 5,006,137
536,400 Starbucks Coffee.............. 11,264,400
384,500 Urban Outfitters Inc.......... 8,939,625
--------------
168,206,531
--------------
SOFTWARE & SERVICES -- 5.0%
*600,000 Acclaim Entertainment Inc..... 7,425,000
*127,500 Avant Corp.................... 2,454,375
*525,000 BMC Software Inc.............. 22,443,750
*473,900 Compuware Corp................ 8,767,150
277,609 First Data Corp............... 18,565,102
*650,000 Intergraph Corp............... 10,237,500
*281,100 Policy Management Systems..... 13,387,388
*155,000 7th Level Inc................. 2,170,000
*466,000 Sybase Inc.................... 16,776,000
*154,400 Synopsis...................... 5,867,200
--------------
108,093,465
--------------
TRANSPORTATION -- 4.8%
*340,000 AMR........................... 25,245,000
1,000,000 America West Airlines......... 17,000,000
300,000 Landstar System Inc........... 8,025,000
*460,000 M.S. Carriers................. 9,200,000
269,000 Qantas Air ADR 144A........... 4,472,125
300,000 Railtex....................... 6,300,000
340,000 Skywest Inc................... 4,377,500
350,000 Swift Transportation.......... 5,337,500
587,700 Transportation-Marine......... 4,407,750
410,000 Werner Enterprises, Inc....... 8,302,500
375,000 Stolt Nielson................. 10,828,125
--------------
103,495,500
--------------
UTILITIES -- 0.4%
700,000 Petersburg Long Distance
Inc......................... 3,325,000
300,000 Portugal Telecom S.A. ADR..... 5,700,000
--------------
9,025,000
--------------
Total common stocks........... $1,824,554,483
--------------
CONVERTIBLE PREFERRED STOCKS -- 2.5%
BUSINESS SERVICES -- 0.3%
215,000 Technip ADS 144A.............. 7,407,911
--------------
CONSUMER DURABLE -- 0.6%
1,364,400 Noble Drilling Corp........... 12,279,600
--------------
CONSUMER NON-DURABLES -- 0.5%
1,750,000 RJR Nabisco Preferred Equity
Redemptive Cumulative
Stock....................... 11,156,250
--------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
88
<PAGE>
<TABLE>
<CAPTION>
MARKET PRINCIPAL MARKET
SHARES VALUE AMOUNT VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
CONVERTIBLE PREFERRED STOCKS -- (CONTINUED)
</TABLE>
FINANCIAL SERVICES -- 0.3%
160,000 Glendale Federal.............. 7,240,000
--------------
MANUFACTURING -- 0.8%
1,100,000 Cooper Industries............. 15,125,000
--------------
Total convertible preferred
stocks...................... $ 53,208,761
--------------
--------------
CONVERTIBLE CORPORATE BONDS -- 0.7%
CONSUMER DURABLES -- 0.3%
3,765,000 Rohr Inc.
7.750% due 05/15/04......... 5,647,500
--------------
PRIVATE PLACEMENT -- 0.4%
8,000,000 Planet Hollywood
10.000% due 08/22/00........ 10,435,920
--------------
Total convertible corporate
bonds....................... $ 16,083,420
--------------
--------------
NON-CONVERTIBLE PREFERRED STOCK -- 0.8%
CONSUMER DURABLES
450,000 Nokia Preferred ADS........... $ 17,493,750
--------------
--------------
WARRANTS --0.1%
*905,200 Nordic American Tanker........ $ 3,168,200
--------------
--------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
SHORT-TERM SECURITIES -- 12.1%
$ 6,960,000 U.S. Treasury Bill
5.390% due 12/12/96......... 6,623,498
40,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96 maturity
amount $40,027,556;
(Collateralized by
$15,239,000 Federal National
Mortgage Association 8.000%
due 06/01/07 and $39,010,000
Federal National Mortgage
Assocaition 9.000% due
04/01/25)................... 40,000,000
$55,065,000 Repurchase Agreement dated
12/29/95 with J.P. Morgan
5.800% due 01/02/96 maturity
amount $55,100,486;
(Collateralized by
$34,327,000 U.S. Treasury
Bond 11.250% due 02/15/15).. $ 55,065,000
160,000,000 Repurchase Agreement dated
12/29/95 with Swiss Bank
Corp 5.850% due 01/02/96
maturity amount
$160,104,000;
(Collateralized by
$114,765,000 U.S. Treasury
Bonds 7.250% to 11.250% due
02/15/15 - 05/15/16)........ 160,000,000
--------------
Total short-term securities... $ 261,688,498
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 84.6% $1,824,554,483
Total convertible preferred stocks........... 2.5 53,208,761
Total convertible corporate bonds............ 0.7 16,083,420
Total non-convertible preferred stock........ 0.8 17,493,750
Total warrants............................... 0.1 3,168,200
Total short-term securities.................. 12.1 261,688,498
------ --------------
Total investment in securities
**(Identified cost $1,910,161,838)......... 100.8% 2,176,197,112
Excess of liabilities over cash and
receivables................................ (0.8) (18,305,409)
------ --------------
Net assets (Applicable to $3.48966 per share
based on 618,366,580 shares outstanding)... 100.0% $2,157,891,703
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
800,000,000 shares; outstanding 618,366,580
shares............................................. $ 61,836,658
Capital surplus...................................... 1,685,944,946
Undistributed net realized gain on investments....... 145,639,842
***Unrealized (loss) on futures contracts............ (1,867,317)
Unrealized appreciation of investments............... 266,035,274
Unrealized appreciation on forward currency
contracts.......................................... 302,300
--------------
Net assets, applicable to shares outstanding......... $2,157,891,703
--------------
--------------
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
*** The Fund has 400 Standard & Poor's 500 March 1996 futures
contracts open at December 29, 1996. These contracts have a value
of $123,690,000.
</TABLE>
FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
UNREALIZED
TOTAL AGGREGATE DELIVERY APPRECIATION/
DESCRIPTION VALUE FACE VALUE DATE (DEPRECIATION)
- ------------------------------ ---------- ---------- --------- -------------
<S> <C> <C> <C> <C>
Dutch Guilders (Sell) $11,697,700 $12,000,000 05/20/96 $ 302,300
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
89
<PAGE>
Hartford Mortgage Securities Fund, Inc.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Principal Market Principal Market
Amount Value Amount Value
- ----------- ------------- ----------- -------------
<C> <S> <C> <C> <C> <C>
LONG-TERM BONDS -- 99.0%
</TABLE>
<TABLE>
<C> <S> <C>
FEDERAL AGENCIES
COLLATERALIZED MORTGAGE
OBLIGATION -- 5.9%
Federal Home Loan Mortgage
Corporation
$ 5,000,000 6.500% due 03/15/23......... $ 5,058,000
1,532,535 8.100% due 12/15/04......... 1,551,600
-------------
6,609,600
-------------
Federal National Mortgage
Association
1,054,049 7.950% due 03/25/20......... 1,066,118
5,577,430 8.500% due 03/25/19 -
06/25/19.................... 5,677,234
3,315,352 8.750% due 02/25/18......... 3,340,615
749,343 9.000% due 01/25/17 -
03/25/19.................... 748,582
669,199 9.250% due 12/25/03......... 672,679
1,194,178 11.000% due 04/01/09........ 1,311,645
-------------
12,816,873
-------------
FEDERAL AGENCIES MORTGAGE
PASS-THROUGHS -- 71.0%
Federal Home Loan Mortgage
Corp.
13,918,718 6.500% due 02/01/09 -
06/01/24.................... 13,851,562
22,903,536 7.000% due 12/01/10 -
12/01/25.................... 23,140,875
19,644,019 7.500% due 01/01/24 -
12/01/25.................... 20,141,394
7,709,781 8.000% due 02/01/13 -
11/01/24.................... 7,986,854
7,783,151 8.500% due 07/01/01 -
05/01/25.................... 8,086,242
7,528,796 9.000% due 10/15/01 -
10/01/06.................... 7,884,848
8,713,412 9.500% due 11/01/08......... 9,256,170
4,275,027 10.000% due 09/01/05 -
11/01/20.................... 4,671,737
-------------
95,019,682
-------------
Federal National Mortgage
Association
1,605,289 6.000% due 08/01/08 -
05/01/09.................... 1,589,289
30,630,746 6.500% due 11/10/10 -
09/01/25.................... 30,616,166
18,127,133 7.000% due 10/01/07 -
08/01/24.................... 18,417,242
10,209,623 7.500% due 11/01/10 -
03/01/24.................... 10,477,080
10,316,989 9.000% due 05/01/21 -
12/01/25.................... 10,855,421
-------------
71,955,198
-------------
Government National Mortgage
Association
2,000,000 6.500% due 12/01/25......... 1,983,750
24,016,001 7.500% due 11/15/09 -
11/01/25.................... 24,694,300
12,188,929 8.000% due 04/15/00 -
12/15/25.................... 12,687,369
12,694,693 8.500% due 05/15/17 -
07/15/25.................... 13,327,382
3,000,000 9.000% due 12/01/25......... 3,177,189
4,874,814 9.500% due 10/15/09 -
11/15/09.................... 5,267,920
2,895,774 10.000% due 11/15/09 -
05/15/13.................... 3,177,546
789,680 11.000% due 02/15/10 -
09/15/10.................... 895,828
96,693 11.250% due 01/15/01........ 104,918
118,453 12.000% due 05/15/15........ 136,589
112,997 12.500% due 06/15/14 -
08/15/15.................... 131,485
43,411 13.000% due 11/15/14........ 50,910
8,765 13.500% due 07/15/14........ 10,341
-------------
65,645,527
-------------
ASSET BACKED -- 1.3%
Corestates 94-A1
4,187,180 6.650% due 05/15/09......... 4,260,330
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 10.3%
CMC 92-D IIL
1,150,825 7.200% due 12/25/08......... 1,154,829
COLLATERALIZED MORTGAGE
OBLIGATIONS -- (CONTINUED)
CWF 93-C A1
$ 3,364,995 6.500% due 01/25/24......... $ 3,357,525
Chase Mortgage 93-C2 2A3
5,720,000 8.250% due 01/25/24......... 5,827,193
CMO 52 Class A
(A) 1,062,308 0.000% due 05/01/17......... 889,396
GECMS 1994-21 A
8,939,573 6.500% due 08/25/09......... 8,962,547
GE Capital Mortgage 1994-26A
9,110,711 7.020% due 07/25/09......... 9,173,347
GE 94-24 Class A1
4,527,179 7.000% due 07/25/24......... 4,565,751
-------------
33,930,588
-------------
CONVENTIONAL MORTGAGE PASS-
THROUGHS -- 0.2%
Ryland Series 82
519,184 10.250% due 03/15/11........ 555,527
-------------
WHOLE LOAN PASS-THROUGHS --
1.9%
HSI 93E Class E
5,523,976 10.000% due 09/25/08........ 6,078,086
-------------
U.S. GOVERNMENT AND FEDERAL
AGENCIES -- 5.8%
U.S. Treasury Notes
8,000,000 7.250% due 05/15/04......... 8,900,000
2,500,000 7.500% due 05/15/02......... 2,773,438
1,600,000 10.750% due 02/15/03........ 2,088,000
-------------
13,761,438
-------------
Federal National Mortgage
Association
3,232,817 6.000% due 12/01/08 -
12/01/09.................... 3,200,431
2,000,000 6.200% due 01/01/06......... 2,006,250
-------------
5,206,681
-------------
FINANCIAL SERVICES -- 2.6%
Capital Holding
Corp./Providian
3,000,000 0.000% due 02/07/97......... 3,392,325
Spieker Prop. Real Estate
Investments
5,000,000 6.650% due 12/15/00......... 4,995,400
-------------
8,387,725
-------------
Total long-term bonds......... $324,227,255
-------------
-------------
SHORT-TERM SECURITIES -- 16.9%
COMMERCIAL PAPER -- 5.2%
Bell Atlantic Financial
Services
3,000,000 5.800% due 01/18/96......... 2,992,267
Colgate-Palmolive Co.
3,000,000 5.800% due 01/18/96......... 2,992,267
GTE North Inc.
3,000,000 5.800% due 01/18/96......... 2,992,267
Sherwood Medical
5,000,000 5.820% due 01/18/96......... 4,987,066
Virginia Electric Power
3,000,000 5.760% due 01/18/96......... 2,992,320
-------------
16,956,187
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
90
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET MARKET
AMOUNT VALUE VALUE
- ----------- ------------- -------------
<C> <S> <C> <C> <C> <C>
SHORT-TERM SECURITIES -- (CONTINUED)
</TABLE>
REPURCHASE AGREEMENTS -- 11.7%
$30,000,000 Repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $30,019,500;
(Collateralized by
$30,000,000 U.S. Treasury
Note 5.125% due 12/31/98)... $ 30,000,000
-------------
8,463,000 Repurchase agreement dated
12/29/95 with Salomon
Brothers 5.900% due
01/02/96; maturity amount
$8,468,548; (Collateralized
by $8,830,000 U.S. Treasury
Bills 4.930% due
06/06/96)................... 8,463,000
-------------
Total short-term securities... $ 55,419,187
-------------
-------------
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total long-term bonds........................ 99.0% $324,227,255
Total short-term securities.................. 16.9 55,419,187
-------- ------------
Total investment in securities
*(Identified cost $373,168,338)............ 115.9 379,646,442
Excess of liabilities over cash and
receivables................................ (15.9) (52,081,129 )
-------- ------------
Net assets (Applicable to $1.07126 per share
based on 305,774,935 shares outstanding)... 100.0% $327,565,313
-------- ------------
-------- ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per
share; authorized 800,000,000 shares;
outstanding 305,774,935 shares......................... $ 30,577,493
Capital surplus........................................ 303,361,724
Undistributed net realized (loss)
on investments........................................ (12,852,008)
Unrealized appreciation of investments................. 6,478,104
--------------
Net assets, applicable to shares outstanding........... $327,565,313
--------------
--------------
</TABLE>
* Aggregate cost for Federal income tax purposes.
(A) Principal Only [cad 228] Securities created by investment bankers by
separating regular bonds into their principal and coupon components and
selling each piece separately. If the underlying bonds are subject to
prepayment, the interest only investor is at risk for faster than
anticipated prepayments and the principal only investor is at risk for
slower than anticipated prepayments.
These instruments are used for a very small percentage of the funds
assets when they are determined they improve the portfolio's return profile.
91
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- ------------- ----------- -------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- 96.2%
</TABLE>
<TABLE>
<C> <S> <C>
BUSINESS SERVICES -- 1.2%
7,400 Alco Standard Corp............ $ 337,625
*2,625 Andrew Corp................... 100,406
10,300 Donnelley (RR) & Sons......... 405,562
3,500 E G & G, Inc.................. 84,875
*3,800 Federal Express Corp.......... 280,725
2,500 Fleming Companies, Inc........ 51,562
8,250 Genuine Parts Co.............. 338,250
3,400 Grainger W W Inc.............. 225,250
6,700 Moore Corp Ltd................ 124,787
3,200 National Service Industries
Inc......................... 103,600
3,300 Ogden Corp.................... 70,538
2,800 Pittston Services Group....... 87,850
5,300 Ryder Systems, Inc............ 131,175
3,900 Safety Kleen Corp............. 60,938
4,600 Supervalu, Inc................ 144,900
12,200 Sysco Corp.................... 396,500
32,300 WMX Technologies Inc.......... 964,963
-------------
3,909,506
-------------
COMMUNICATION EQUIPMENT --
2.9%
14,492 AMP Inc....................... 556,130
*4,800 Cabletron Systems............. 388,800
*18,100 Cisco Systems Inc............. 1,350,713
*7,700 DSC Communications............ 283,938
34,100 Hewlett-Packard Co............ 2,855,875
39,400 Motorola Inc.................. 2,245,800
16,900 Northern Telecom Ltd.......... 726,700
2,800 Perkin Elmer.................. 105,700
5,100 Scientific Atlanta, Inc....... 76,500
3,700 Teledyne Inc.................. 94,812
*11,000 3 Com Corp.................... 512,875
-------------
9,197,843
-------------
COMPUTERS & OFFICE EQUIPMENT
-- 2.3%
7,800 Amdahl Corp................... 66,300
8,100 Apple Computer................ 258,188
*17,600 Compaq Computer............... 844,800
*1,700 Cray Research Inc............. 42,075
*2,500 Data General Corp............. 34,375
*9,800 Digital Equipment Corp........ 628,425
2,600 Harris Corp Del............... 142,025
38,000 International Business Machine
Corp........................ 3,486,500
10,100 Pitney Bowes Inc.............. 474,700
*10,600 Silicon Graphics Inc.......... 291,500
*7,800 Tandem Computers.............. 82,875
*11,500 Unisys Corp................... 64,687
7,200 Xerox......................... 986,400
-------------
7,402,850
-------------
CONSUMER DURABLES -- 2.9%
5,700 Black & Decker Corporation.... 200,925
2,000 Briggs & Stratton............. 86,750
6,400 Brunswick..................... 153,600
25,544 Chrysler Corp................. 1,414,499
5,600 Cooper Tire & Rubber
Company..................... 137,900
6,200 Dial Corp Arizona............. 183,675
4,000 Echlin Inc.................... 146,000
3,100 Fleetwood..................... 79,825
71,700 Ford Motor Co. Del............ 2,079,300
49,900 General Motors Corp........... 2,638,462
1,700 The B.F. Goodrich Co.......... 115,813
10,200 Goodyear Tire & Rubber
Company..................... 462,825
7,500 ITT Corporation............... 397,500
CONSUMER DURABLES --
(CONTINUED)
10,600 Masco Corporation............. $ 332,575
7,200 Maytag Corp................... 145,800
2,700 Snap-on-Tools................. 122,175
3,000 Stanley Works................. 154,500
4,900 Whirlpool Corp................ 260,925
-------------
9,113,049
-------------
CONSUMER NON-DURABLES -- 12.8%
1,900 Alberto Culver Co............. 65,312
12,100 American Brands Inc........... 539,963
5,000 American Greetings Corp. Class
A........................... 138,125
17,100 Anheuser Busch Cos. Inc....... 1,143,563
35,356 Archer-Daniels-Midland........ 636,408
4,600 Avon Products................. 346,725
2,000 Ball Corp..................... 55,000
4,600 Brown-Forman.................. 167,900
9,800 CPC International............. 672,525
*11,650 CUC International............. 397,556
16,700 Campbell Soup Co.............. 1,002,000
3,500 Clorox Company................ 250,688
83,800 Coca-Cola Co.................. 6,222,150
9,700 Colgate Palmolive Co.......... 681,425
15,950 Conagra Inc................... 657,938
2,600 Coors (Adolph) Class B........ 57,525
22,800 Eastman Kodak................. 1,527,600
5,100 Fruit Of The Loom Inc......... 124,313
10,600 General Mills Co.............. 612,150
4,000 Giant Food, Inc............... 126,000
29,600 Gillette Co................... 1,542,900
2,600 Great Atlantic & Pacific Tea
Co.......................... 59,800
2,200 Handleman Co.................. 12,650
5,950 Hasbro, Inc................... 184,450
24,400 H.J. Heinz Company............ 808,250
5,200 Hershey Foods Corp............ 338,000
14,600 Kellogg Co.................... 1,127,850
18,586 Kimberly Clark Corp........... 1,537,991
5,000 Liz Claiborne, Inc............ 138,750
10,600 Newell Co..................... 274,275
9,500 Nike, Inc. Class B............ 661,437
52,600 Pepsico Inc................... 2,939,025
56,100 Philip Morris................. 5,077,050
3,000 Polaroid Corp................. 142,125
4,200 Premark International......... 212,625
45,900 Proctor and Gamble............ 3,809,700
9,000 Quaker Oats Co................ 310,500
7,000 Ralston Purina Group.......... 436,625
5,200 Reebok International Ltd...... 146,900
10,500 Rubbermaid, Inc............... 267,750
2,600 Russell Corp.................. 72,150
32,000 Sara Lee Corp................. 1,020,000
24,800 Seagram....................... 858,700
3,300 Stride Rite Corp.............. 24,750
13,000 UST Inc....................... 433,875
10,700 Unilever NV New York Shares... 1,506,025
4,300 V F Corp...................... 226,825
7,000 Whitman Corp.................. 162,750
10,100 Winn Dixie Stores Inc......... 372,437
7,800 Wrigley Wm. Jr. Co............ 409,500
-------------
40,540,531
-------------
CONSUMER SERVICES -- 0.8%
33,000 Airtouch Communications....... 932,250
3,200 Bally Entertainment Corp...... 44,800
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
92
<PAGE>
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- ------------- ----------- -------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
</TABLE>
CONSUMER SERVICES --
(CONTINUED)
7,000 H & R Block, Inc.............. $ 283,500
5,500 De Luxe Corp.................. 159,500
4,900 Harcourt General Inc.......... 205,188
2,000 John H. Harland Co............ 41,750
*6,850 Harrah's Entertainment........ 166,112
3,200 Hilton Hotels Corporation..... 196,800
8,400 Marriott International Inc.... 321,300
6,900 Service Corp International.... 303,600
-------------
2,654,800
-------------
ELECTRONICS -- 1.5%
6,900 Advanced Micro Devices Inc.... 113,850
11,800 Applied Materials............. 464,625
54,900 Intel Corp.................... 3,115,575
13,800 Micron Technology Inc......... 546,825
12,500 Texas Instruments............. 646,875
-------------
4,887,750
-------------
ENERGY AND SERVICES -- 9.1%
6,200 Amerada Hess Corp............. 328,600
33,100 Amoco Corporation............. 2,379,063
4,200 Ashland Inc................... 147,525
10,700 Atlantic Richfield............ 1,185,025
9,400 Baker Hughes, Inc............. 229,125
23,600 Barrick Gold Corp............. 622,450
8,500 Burlington Resources.......... 333,625
43,500 Chevron Corp.................. 2,283,750
7,050 Coastal Corp.................. 262,613
12,200 Dresser Industries............ 297,375
82,900 Exxon......................... 6,642,363
5,500 Fluor Corp.................... 363,000
7,600 Halliburton Co................ 384,750
1,700 Helmerich & Payne Inc......... 50,575
3,500 Kerr McGee Corp............... 222,250
2,200 Louisiana Land & Exploration
Co.......................... 94,325
3,600 Mcdermott International....... 79,200
26,400 Mobil Corp.................... 2,956,800
600 Nacco......................... 33,300
21,200 Occidential Petroleum Corp.... 453,150
6,900 Oryx Energy Company........... 92,288
10,000 Panhandle Eastern Corp........ 278,750
3,100 Pennzoil Co................... 130,975
17,500 Phillips Petroleum............ 597,187
*5,600 Rowan Cos..................... 55,300
35,800 Royal Dutch Petroleum......... 5,052,275
6,012 Santa Fe Energy Resources
Corp........................ 57,865
16,100 Schlumberger Ltd.............. 1,114,925
5,500 Sun Company, Inc.............. 150,562
17,300 Texaco Inc.................... 1,358,050
19,200 USX-Marathon Group............ 374,400
16,400 Unocal Corp................... 477,650
-------------
29,089,091
-------------
FINANCIAL SERVICES -- 12.4%
7,600 Aetna Life & Casualty Co...... 526,300
7,800 H.F. Ahmanson & Company....... 206,700
3,000 Alexander & Alexander......... 57,000
29,940 Allstate Corp................. 1,231,283
32,600 American Express Co........... 1,348,825
13,700 American General Corp......... 477,788
31,730 American International
Group....................... 2,935,025
26,290 Banc One Corp................. 992,448
FINANCIAL SERVICES --
(CONTINUED)
7,500 Bank Of Boston................ $ 346,875
13,300 Bank Of New York Co........... 648,375
25,036 Bank America Corporation...... 1,621,081
5,200 Bankers Trust................. 345,800
6,500 Barnett Banks Inc............. 383,500
3,500 Beneficial Corp............... 163,188
8,400 Boatman Bancshares............ 343,350
4,800 Cigna Corporation............. 495,600
11,700 Chase Manhattan............... 709,313
16,768 Chemical Banking Corp......... 985,120
5,800 Chubb Corp.................... 561,150
28,400 Citicorp...................... 1,909,900
7,700 Comerica Inc.................. 308,963
9,300 Corestates Financial Corp..... 352,238
11,256 Dean Witter Discover & Co..... 529,032
12,100 Federal Home Loan Mortgage
Corporation................. 1,010,350
18,200 Federal National Mortgage
Association................. 2,259,075
8,700 First Bank System Inc......... 431,738
21,212 First Chicago Corp............ 837,874
5,400 First Fidelity Bancorp........ 407,025
5,100 First Interstate Bancorp...... 696,150
11,500 First Union Corporation....... 639,688
16,402 Fleet Financial Group Inc..... 668,393
5,500 General Re Corp............... 852,500
3,900 Golden West Financial......... 215,475
9,100 Great Western Financial
Corp........................ 232,050
6,500 Household International
Inc......................... 384,313
4,800 Jefferson Pilot Corp.......... 223,200
15,801 Keycorp....................... 572,786
6,900 Lincoln National Corp......... 370,875
9,900 MBNA Corp..................... 365,063
4,800 Marsh and McLennan Cos.,
Inc......................... 426,000
9,800 Mellon Bank Corporation....... 526,750
11,800 Merrill Lynch & Co. Inc....... 601,800
12,600 J.P. Morgan................... 1,011,150
5,100 Morgan Stanley Group.......... 411,187
9,800 National City Corp............ 324,625
18,064 Nationsbank Corp.............. 1,257,705
23,600 Norwest Corporation........... 778,800
15,300 PNC Bank Corp................. 493,424
6,400 Providian Corp................ 260,800
1,800 Pulte Corp.................... 60,524
3,700 Republic New York Corp........ 229,862
8,400 Safeco Corp................... 289,800
5,600 St Paul Cos., Inc............. 311,500
7,100 Salomon Inc................... 252,050
7,600 Sun Trust Banks, Inc.......... 520,600
4,800 Torchmark Corp................ 217,200
4,600 Transamerica Corp............. 335,224
21,291 Travelers Group Inc........... 1,338,672
4,800 Unum Corp..................... 264,000
6,650 U.S. Bancorp Oregon........... 223,606
7,500 USF&G Corporation............. 126,562
2,350 US Life Corp.................. 70,206
11,400 Wachovia Corp................. 521,550
3,200 Wells Fargo & Company......... 691,200
-------------
39,190,206
-------------
HEALTHCARE -- 10.5%
53,000 Abbott Laboratories........... 2,212,750
4,300 Allergan Inc.................. 139,750
*5,500 Alza Corp. Del................ 136,125
20,700 American Home Products
Corp........................ 2,007,900
93
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- ------------- ----------- -------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
</TABLE>
HEALTHCARE -- (CONTINUED)
17,700 Amgen......................... $ 1,050,938
3,700 Bard C. R. Inc................ 119,325
3,800 Bausch & Lomb Inc............. 150,575
18,500 Baxter International.......... 774,688
4,400 Becton, Dickinson............. 330,000
6,600 Beverly Enterprises........... 70,125
7,700 Biomet........................ 137,638
10,800 Boston Scientific Corp........ 529,200
33,900 Bristol-Myers Squibb
Company..................... 2,911,162
29,620 Columbia/HCA Healthcare
Corp........................ 1,503,215
2,900 Community Psychiatric
Centers..................... 35,525
10,800 Humana Inc.................... 295,650
43,100 Johnson & Johnson............. 3,690,438
36,800 Lilly Eli & Co................ 2,070,000
5,100 Mallinckrodt Group Inc........ 185,512
4,200 Manor Care Inc................ 147,000
15,400 Medtronic, Inc................ 860,475
82,600 Merck & Co., Inc.............. 5,430,950
3,000 Millipore Corp................ 123,375
33,610 Pharmacia & Upjohn............ 1,302,387
42,200 Pfizer, Inc................... 2,658,600
5,600 Pioneer Hi-Bred
International............... 311,500
4,750 St. Jude Medical Inc.......... 204,250
24,800 Schering-Plough Corp.......... 1,357,800
1,500 Shared Medical Systems
Corp........................ 81,562
13,300 Tenet Healthcare
Corporation................. 275,975
11,600 United Healthcare Corp........ 759,800
10,300 US Healthcare Inc............. 478,950
3,800 United States Surgical........ 81,225
9,000 Warner-Lambert Company........ 874,125
-------------
33,298,490
-------------
INDUSTRIAL MATERIALS -- 6.3%
7,500 Air Products & Chemical
Corp........................ 395,625
15,000 Alcan Aluminum Ltd............ 466,875
11,900 Aluminum Company of America... 629,213
7,100 Armco Inc..................... 41,713
2,500 Armstrong World Industries,
Inc......................... 155,000
2,800 Asarco Corporation............ 89,600
3,600 Avery Dennison
International............... 180,450
3,400 Bemis Co...................... 87,125
7,400 Bethlehem Steel Corp.......... 103,600
3,200 Boise Cascade Corp............ 110,800
1,900 Centex Corp................... 66,025
6,500 Champion International
Corp........................ 273,000
15,400 Corning Inc................... 492,800
2,000 Crane Company................. 73,750
*6,000 Crown Cork & Seal............. 250,500
6,200 Cyprus Amax Minerals.......... 161,975
17,500 Dow Chemical.................. 1,231,563
37,100 Dupont EI De Nemours.......... 2,592,363
5,375 Eastman Chemical Co........... 336,609
8,400 Echo Bay Mines Ltd............ 87,150
4,300 Ecolab Inc.................... 129,000
9,612 Englehard Corp................ 209,061
2,400 FMC Corp...................... 162,300
3,100 Federal Paper Board Inc....... 160,813
13,600 Freeport-McMoran Copper & Gold
Class B..................... 382,500
6,100 Georgia-Pacific Corp.......... 418,613
2,300 Giddings & Lewis.............. 37,950
6,300 Grace (W.R.) Company.......... 372,488
4,300 Great Lakes Chemical.......... 309,600
7,400 Hercules Inc.................. 417,175
INDUSTRIAL MATERIALS --
(CONTINUED)
9,200 Homestake Mining.............. $ 143,750
7,500 ITT Industries................ 180,000
7,900 Inco Co. Ltd.................. 262,675
3,200 Inland Steel Company.......... 80,400
7,400 International Flavors &
Fragrances.................. 355,200
17,800 International Paper Co........ 674,175
5,500 James River Corp.............. 132,688
2,200 Kaufman & Broad Home Corp..... 32,725
7,200 Louisiana Pacific Corp........ 174,600
3,600 Mead Corp..................... 188,100
7,700 Monsanto Co................... 943,250
9,900 Morton International.......... 355,163
4,500 Nalco Chemical Co............. 135,562
6,344 Newmont Mining................ 287,066
5,800 Nucor Corp.................... 331,325
3,400 Owens Corning Fiberglass
Corp........................ 152,575
13,100 PPG Industries, Inc........... 599,325
7,633 Pall Corp..................... 205,136
4,600 Phelps Dodge Corp............. 286,350
16,000 Placer Dome, Inc.............. 386,000
2,000 Potlatch Corp................. 80,000
9,200 Praxair....................... 309,350
4,200 Reynolds Metal Co............. 237,825
4,500 Rohm & Haas Co................ 289,687
8,807 Santa Fe Pacific Gold Corp.... 106,785
5,700 Sherwin Williams.............. 232,275
3,300 Sigma Aldrich Corp............ 163,350
1,300 Springs Industries Inc........ 53,787
6,430 Stone Container Corporation... 92,431
3,700 Temple-Inland Inc............. 163,262
5,460 USX-U.S. Steel Group.......... 167,895
4,700 Union Camp Corp............... 223,837
9,200 Union Carbide Corp............ 345,000
6,850 Westvaco Corp................. 190,087
13,600 Weyerhaeuser Company.......... 588,200
3,700 Willamette Industries......... 208,125
6,800 The Williams Companies........ 298,350
6,075 Worthington Industries........ 126,436
-------------
20,207,983
-------------
MANUFACTURING -- 8.4%
18,900 Allied Signal Inc............. 897,750
22,900 Boeing Company................ 1,794,788
13,300 Caterpillar, Inc.............. 781,375
2,300 Cincinnati Milacron Inc....... 60,375
7,200 Cooper Industries............. 264,600
2,700 Cummins Engine................ 99,900
6,800 Dana Corporation.............. 198,900
17,400 Deere & Company............... 613,350
7,600 Dover Corp.................... 280,250
5,200 Eaton Corp.................... 278,850
15,000 Emerson Electric Co........... 1,226,250
2,700 Foster Wheeler Corp........... 114,750
4,200 General Dynamics.............. 248,325
111,600 General Electric.............. 8,035,200
3,200 General Signal Corp........... 103,600
3,200 Harnischfeger Industries
Inc......................... 106,400
8,500 Honeywell Inc................. 413,313
7,800 Illinois Tool Works........... 460,200
7,100 Ingersoll-Rand Company........ 249,388
2,700 Johnson Controls, Inc......... 185,625
13,401 Lockheed Martin Corp.......... 1,058,679
11,400 Loral Corp.................... 403,275
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
94
<PAGE>
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- ------------- ----------- -------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
</TABLE>
MANUFACTURING -- (CONTINUED)
14,827 Mattel, Inc................... $ 455,930
7,500 McDonnell Douglas Corp........ 690,000
28,100 Minnesota Mining &
Manufacturing Co............ 1,861,625
*8,300 National Semicondutor Corp.... 184,675
*5,030 Navistar International
Corp........................ 52,815
3,300 Northrop Grumman Corp......... 211,200
1,300 Outboard Marine Corp.......... 26,488
2,595 Paccar Inc.................... 109,314
4,950 Parker-Hannifin Corp.......... 169,537
2,900 Raychem Corp.................. 164,937
16,300 Raytheon Co................... 770,175
14,500 Rockwell International
Corp........................ 766,688
4,300 TRW, Inc...................... 333,250
2,200 Tektronix Inc................. 108,075
12,100 Tenneco, Inc.................. 600,462
5,700 Textron, Inc.................. 384,750
1,300 Thomas & Betts Corp........... 95,875
2,100 Timken........................ 80,325
1,900 Trinova Corporation........... 54,387
10,200 Tyco International Ltd........ 363,375
8,200 United Technologies Corp...... 777,975
*2,680 Varity Corp................... 99,495
*3,500 Western Atlas Inc............. 176,750
26,200 Westinghouse Electric
Corporation................. 432,300
-------------
26,845,546
-------------
MEDIA & SERVICES -- 3.1%
10,300 Capital Cities/ABC Inc........ 1,270,763
16,000 Comcast Corp. Class A......... 291,000
34,800 Walt Disney Company........... 2,053,200
6,500 Dow Jones & Co................ 259,188
11,300 Dun & Bradstreet Corp......... 731,675
9,400 Gannett Co., Inc.............. 576,925
5,200 Interpublic Group............. 225,550
*2,550 King World Productions,
Inc......................... 99,131
3,300 Knight Ridder Inc............. 206,250
3,300 McGraw-Hill Companies, Inc.... 287,513
1,800 Meredith Corp................. 75,375
6,500 New York Times Co. Class A.... 192,562
*43,600 Tele-Communications........... 866,550
5,900 Tellabs Inc................... 218,300
25,780 Time Warner Inc............... 976,418
7,500 Times Mirror Co. Class A...... 254,062
4,300 Tribune Company............... 262,837
24,100 Viacom Inc. Class B........... 1,141,737
-------------
9,989,036
-------------
POLLUTION CONTROL -- 0.2%
14,200 Browning Ferris Industries
Inc......................... 418,900
19,700 Laidlaw Inc. Class B.......... 201,925
-------------
620,825
-------------
RETAIL -- 5.2%
16,900 Albertson's Inc............... 555,588
9,900 American Stores Co............ 264,825
1,200 Brown Group Inc............... 17,100
6,600 Charming Shoppes Inc.......... 18,975
6,500 Circuit City Store Inc........ 179,563
10,600 Darden Restaurants............ 125,875
4,800 Dayton Hudson Corporation..... 360,000
7,600 Dillard Department Stores
Class A..................... 216,600
13,500 Federated Department Store.... 371,250
RETAIL -- (CONTINUED)
9,600 The Gap, Inc.................. $ 403,200
31,773 Home Depot Inc................ 1,521,132
2,600 Jostens Inc................... 63,050
30,600 K Mart Corporation............ 221,850
*8,200 Kroger Co..................... 307,500
23,900 The Limited, Inc.............. 415,263
7,900 Loews Corporation............. 619,163
1,400 Longs Drug Store.............. 67,025
10,700 Lowe's Companies.............. 358,450
1,600 Luby's Cafeterias............. 35,600
16,600 May Department Stores Co...... 701,350
46,400 McDonalds Corp................ 2,093,800
7,000 Melville Corporation.......... 215,250
2,500 Mercantile Stores, Inc........ 115,625
5,500 Nordstrom Inc................. 222,750
15,200 J.C. Penney................... 723,900
4,100 Pep Boys-Manny, Moe, Jack..... 105,062
13,034 Price/Costco Inc.............. 198,768
5,600 Rite Aid Corp................. 191,800
*3,600 Ryan's Family Steak House..... 25,200
26,000 Sears Roebuck................. 1,014,000
*2,800 Shoney's Inc.................. 28,700
4,800 TJX Companies................. 90,600
4,449 Tandy Corp.................... 184,633
*18,400 Toys R Us..................... 400,200
153,400 Wal-Mart...................... 3,432,325
16,400 Walgreen Co................... 489,950
6,800 Wendy's International Inc..... 144,500
8,800 F.W. Woolworth Company........ 114,400
-------------
16,614,822
-------------
SOFTWARE & SERVICES -- 2.8%
3,100 Autodesk Incorp............... 106,175
9,600 Automatic Data Processing..... 712,800
*3,000 Ceridian Corporation.......... 123,750
16,000 Computer Associates........... 910,000
3,700 Computer Sciences Corp........ 259,925
14,700 First Data Corp............... 983,063
*3,100 Intergraph Corp............... 48,825
*39,500 Microsoft Corp................ 3,466,125
*24,600 Novell Inc.................... 350,550
*28,950 Oracle Corporation............ 1,226,756
12,800 Sun Microsystems Inc.......... 584,000
-------------
8,771,969
-------------
TECHNOLOGY -- 0.1%
8,600 LSI Logic Corp................ 281,650
-------------
TRANSPORTATION AND SERVICES --
1.4%
*5,100 AMR........................... 378,675
9,474 Burlington Northern Santa
Fe.......................... 738,972
14,000 CSX Corp...................... 638,750
5,200 Consolidated Rail
Corporation................. 364,000
2,900 Consolidated Freightways,
Inc......................... 76,850
3,400 Delta Airlines, Inc........... 251,175
8,700 Norfolk Southern Corp......... 690,563
2,600 Roadway Services.............. 127,075
9,600 Southwest Airlines............ 223,200
13,700 Union Pacific Corp............ 904,200
4,200 USAir Group................... 55,650
1,900 Yellow Corp................... 23,512
-------------
4,472,622
-------------
95
<PAGE>
HARTFORD INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- ------------- ----------- -------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
</TABLE>
UTILITY -- 12.3%
106,271 AT&T Corp..................... $ 6,881,047
12,600 Alltel Corp................... 371,700
12,400 American Electric Power....... 502,200
37,000 Ameritech Corp................ 2,183,000
9,800 Baltimore Gas and Electric.... 279,300
29,200 Bell Atlantic Corp............ 1,952,750
66,300 Bell South Corp............... 2,884,050
10,400 Carolina Power and Lighting... 358,800
12,800 Central & Southwest Corp...... 356,800
10,357 Cinergy Corp.................. 317,183
3,400 The Columbia Gas System,
Inc......................... 149,175
15,700 Consolidated Edison NY........ 502,400
6,200 Consolidated Natural Gas
Co.......................... 281,325
9,800 Detroit Edison Inc............ 338,100
11,600 Dominion Resources, Inc....... 478,500
13,700 Duke Power Co................. 649,038
1,300 Eastern Enterprises........... 45,825
16,800 Enron Corp.................... 640,500
4,600 Enserch Corp.................. 74,750
15,200 Entergy Corp.................. 444,600
12,400 Florida Power & Light Group
Inc......................... 575,050
64,700 GTE Corp...................... 2,846,800
7,800 General Public Utilities...... 265,200
17,500 Houston Industries Inc........ 424,375
45,100 MCI Communications............ 1,178,238
9,600 Niagara Mohawk Power Corp..... 92,400
3,400 Nicor, Inc.................... 93,500
8,300 Noram Energy.................. 73,663
4,500 Northern States Power
Company..................... 221,063
28,500 Nynex Corporation............. 1,539,000
10,200 Ohio Edison Co................ 239,700
1,800 Oneok Inc..................... 41,175
14,800 Peco Energy Company........... 445,850
10,600 PP&L Resources................ 265,000
5,600 Pacific Enterprises........... 158,200
28,400 Pacific Gas & Electric
Company..................... 805,850
28,600 Pacific Telesis Group......... 961,675
19,000 Pacificorp.................... 403,750
2,300 Peoples Energy Corp........... 73,025
16,300 Public Service Enterprises.... 499,187
40,700 SBC Communications Inc........ 2,340,250
29,800 SCE Corp...................... 528,950
5,800 Sonat, Inc.................... 206,625
44,500 The Southern Co............... 1,095,812
23,300 Sprint Corp................... 929,087
15,100 Texas Utilities............... 620,987
14,300 Unicom Corp................... 468,325
UTILITY -- (CONTINUED)
6,800 Union Electric Co............. 283,900
31,400 U.S. West Communications
Group....................... $ 1,122,550
31,500 U.S. West Media Group......... 598,500
-------------
39,088,730
-------------
Total common stocks........... $ 306,177,299
-------------
-------------
PRINCIPAL
AMOUNT
- -----------
SHORT-TERM SECURITIES -- 3.7%
U.S. TREASURY BILLS
$ 200,000 5.290% Due 1/4/96............. 199,941
450,000 5.300% Due 4/4/96............. 443,839
REPURCHASE AGREEMENT
11,049,000 Interest in $24,574,000 joint
repurchase agreement dated
12/29/95 with Fleet Bank
5.850% due 01/02/96;
maturity amount $11,056,182;
(Collateralized by
$24,574,000 U.S. Treasury
Note 5.125% due 12/31/98)... 11,049,000
-------------
Total short-term securities... $ 11,692,780
-------------
-------------
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 96.2 % $306,177,299
Total short-term securities.................. 3.7 11,692,780
------ ------------
Total investment in securities
**(Identified cost $245,919,800)........... 99.9% 317,870,079
Excess of cash and receivables over
liabilities................................ 0.1 382,813
------ ------------
Net assets (Applicable to $2.02792 per share
based on 156,935,726 shares outstanding)... 100.0% $318,252,892
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
400,000,000 shares; outstanding 156,935,726
shares............................................. $ 15,693,572
Capital surplus......................................
224,105,944
Undistributed net realized gain on investments.......
6,511,336
***Unrealized (loss) on futures contract.............
(8,239)
Unrealized appreciation of investments...............
71,950,279
------------
Net assets, applicable to shares outstanding.........
$318,252,892
------------
------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
*** The Fund has 36 Standard & Poor's 500, March 1996 futures contracts open at
December 31, 1995. These contracts have a value of $11,132,100.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
96
<PAGE>
Hartford International Opportunities Fund, Inc.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Market Market
Shares Value Shares Value
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- 94.1%
</TABLE>
<TABLE>
<C> <S> <C>
ARGENTINA -- 0.6%
81,000 Baesa ADR..................... $ 1,670,625
50,000 Telefonica de Argentina-ADR... 1,362,500
55,000 YPF S.A. Sponsored ADR........ 1,189,375
--------------
4,222,500
--------------
AUSTRALIA -- 5.2%
318,076 Advance Bk Australia.......... 2,546,880
1,044,035 Amcor Ltd..................... 7,367,104
1,325,000 Australia & New Zealand
Banking..................... 6,210,169
714,413 Broken Hill Proprietary....... 10,082,331
397,621 National Australia Bank....... 3,573,657
105,300 Qantas Air ADR 144A........... 1,750,613
930,000 Westpac Banking Corp.......... 4,117,062
--------------
35,647,816
--------------
AUSTRIAN -- 0.7%
33,400 EVN........................... 4,576,474
--------------
BELGIUM -- 0.3%
50,000 Delhaize Le Lion.............. 2,066,046
--------------
BRAZIL -- 0.5%
195,000 Electrobras On ADR............ 2,656,875
130,000 Usiminas Siderurg Minas-ADR... 1,056,640
--------------
3,713,515
--------------
CANADA -- 1.8%
*75,000 Canadian Pacific Foreign...... 1,359,375
622,000 Canadian Pacific Ltd.......... 11,273,750
--------------
12,633,125
--------------
CHILE -- 0.3%
27,500 Compania de Telefon Chile..... 2,279,063
--------------
DENMARK -- 1.9%
378,000 Tele Danmark.................. 10,442,250
47,000 UniDanmark A Registered....... 2,324,055
--------------
12,766,305
--------------
FINLAND -- 0.8%
76,000 Metsa-serla Oy B.............. 2,336,262
*1,220,000 Unitas Bank Ltd............... 3,078,617
--------------
5,414,879
--------------
FRANCE -- 7.7%
13,100 Canal Plus SA................. 2,451,943
23,000 Euro RSCG Worldwide........... 1,875,790
20,335 Groupe Danone................. 3,350,055
111,000 National Bank of Paris 144A... 4,999,368
13,000 Peugeot SA.................... 1,712,270
132,650 Renault....................... 3,813,491
395,000 Rhone-Poulenc................. 8,448,293
*55,365 Saint Gobain.................. 6,118,303
45,107 Societe Generale.............. 5,564,168
50,000 Societe Nationale Elf
Acquitaine.................. 3,678,180
47,700 Technip....................... 3,277,515
108,296 Total SA...................... 7,297,604
--------------
52,586,980
--------------
GERMANY -- 4.9%
22,700 Bayer AG...................... 6,011,238
1,050 Beiersdorf.................... 719,228
6,100 Daimler-Benz AG............... 3,071,210
GERMANY -- (CONTINUED)
14,500 Degussa....................... $ 4,870,306
98,000 Deutsche Bank AG.............. 4,641,029
8,500 Karstadt AG................... 3,475,661
16,549 Mannesmann AG................. 5,253,559
123,000 Veba AG....................... 5,251,878
--------------
33,294,109
--------------
HONG KONG -- 4.3%
2,116,217 Hong Kong
Telecommunications.......... 3,776,760
1,440,000 Hutchison Whampoa Ltd......... 8,771,290
1,008,000 Sun Hung Kai.................. 8,245,199
1,135,000 Swire Pacific Ltd............. 8,806,984
--------------
29,600,233
--------------
INDIA -- 0.5%
200,000 India Tobacco Co. ADS......... 1,427,600
225,000 Indo Gulf GDR................. 326,318
154,000 Reliance Industries GDS....... 1,813,104
--------------
3,567,022
--------------
INDONESIA -- 0.5%
480,000 Jaya Real Property-Foreign.... 1,301,268
*549,000 Jaya Real Property............ 1,488,325
*189,000 Semen Gresik.................. 528,903
--------------
3,318,496
--------------
ITALY -- 2.0%
2,780,000 Banca Comml Italiana.......... 5,936,504
2,000,000 Stet.......................... 5,656,693
1,530,000 Telecom Italia SPA............ 2,380,535
--------------
13,973,732
--------------
JAPAN -- 25.9%
169,000 Canon Sales................... 4,493,377
782,000 Chichibu Oneda Cement C....... 4,165,929
351,000 Chugai Pharmaceutical......... 3,356,270
391,000 Dai Nippon Printing........... 6,615,585
2,000 Home Wide Corp................ 23,591
97,000 Ito-Yokado Ltd................ 5,964,614
500,000 Kajima Corp................... 4,930,871
1,200,000 Kawasaki Heavy Inds........... 5,510,974
1,195,000 Kawasaki Steel Corp........... 4,159,335
550,000 Keio Teito Electric Rai....... 3,195,881
32,000 Kyocera Corp.................. 2,373,006
9,000 Kyoritsu Air Technology....... 97,457
59,000 Mabuchi Motor................. 3,662,187
239,000 Matsushita Electric Co........ 3,882,046
513,000 Minebea Co., Ltd.............. 4,295,253
208,000 Mitsubishi Bank Ltd........... 4,886,783
615,000 Mitsubishi Corp............... 7,551,484
499,000 Mitsui Petrochemical.......... 4,076,719
97,000 Murata Manufacturing Co....... 3,563,763
69,000 Nihon Jumbo Co., Ltd.......... 2,408,295
433,000 Nippon Express................ 4,161,288
570 Nippon Telegraph &
Telephone................... 4,601,663
*1,965,000 NKK Corporation............... 5,281,543
350,000 Nomura Securities............. 7,613,845
75,000 Orix Corp..................... 3,081,794
25,000 Riso Kagaku................... 2,105,289
525,000 Sakura Bank................... 6,649,425
224,000 Sankyo........................ 5,024,461
98,000 Sanwa Bank Ltd................ 1,989,752
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
97
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
</TABLE>
JAPAN -- (CONTINUED)
37,000 Sanyo Shinpan Financial Co.... $ 3,040,704
85,000 Secom......................... 5,900,609
31,000 Sekisui Chemical Co........... 455,574
83,000 Seven Eleven.................. 5,842,019
117,000 Shimamura Co. Ltd............. 4,513,487
10,000 Shohkoh Fund.................. 1,875,665
312,000 Showa Corporation............. 2,386,078
82,000 Sony Corp..................... 4,907,473
460,000 Sumitomo Marsh & Fire......... 3,771,440
851,000 Sumitomo Realty............... 6,006,284
334,000 Sumitomo Trust & Banking...... 4,714,686
353,000 Toda Construction Co.......... 3,054,578
126,000 Tohoku Electric Power......... 3,033,356
606,000 Tokio Marine & Fire
Insurance................... 7,909,697
24,000 Tsutsumi Jewelry.............. 1,199,651
--------------
178,333,781
--------------
MALAYSIA -- 1.6%
750,000 Resort World.................. 4,016,222
2,617,400 Sime Darby Berhad............. 6,956,511
--------------
10,972,733
--------------
MEXICO -- 1.1%
385,000 Cemex SA A.................... 1,270,825
536,000 Femsa SA B.................... 1,239,870
*285,000 Grupo Carso SA Ser A1......... 1,522,222
154,000 Kimberly Clark A.............. 2,331,514
164,900 Transportation-Maritima....... 1,236,750
--------------
7,601,181
--------------
NETHERLANDS -- 4.5%
380,000 Elesevier..................... 5,055,642
173,515 International Nederlanden
CVA......................... 11,564,071
47,000 Unilever CVA.................. 6,589,058
146,000 Vendex International.......... 4,329,624
22,400 Verenigd Bezit................ 3,067,902
--------------
30,606,297
--------------
NEW ZEALAND -- 1.6%
557,383 Air New Zealand B............. 1,894,993
6,077,000 Brierley Investments.......... 4,807,565
1,916,000 Carter Holt................... 4,133,900
--------------
10,836,458
--------------
NORWAY -- 4.0%
1,315,800 Christiana Bank Og............ 3,071,584
165,801 Hafslund Nyco A-Free.......... 4,328,086
154,000 Kvaerner...................... 5,441,009
141,000 Orkla AS A.................... 7,005,521
560,000 Saga Petro A Free............. 7,463,722
--------------
27,309,922
--------------
PHILIPPINES -- 0.9%
419,000 Philippine National Bank...... 4,641,329
*1,340,000 Pilipino Telephone............ 1,356,379
--------------
5,997,708
--------------
PORTUGAL -- 0.5%
*181,800 Portugal Telecom S.A. ADR..... 3,454,200
--------------
SINGAPORE -- 3.5%
512,875 Devel Bank of Singapore....... $ 6,382,380
1,000,000 Keppel Corp................... 8,909,001
325,000 Ocbc Foreign.................. 4,067,383
515,000 United O/S Bank Foreign....... 4,952,273
--------------
24,311,037
--------------
SPAIN -- 4.5%
27,500 Acerinox SA................... 2,773,280
245,000 Banco Bilbao Vizcaya.......... 8,799,622
94,000 Empresa Nac de Electricidad... 5,307,635
600,000 Iberdrola SA.................. 5,473,823
160,000 Repsol........................ 5,260,000
30,000 Repsol SA..................... 980,110
175,000 Telefonica de Espana.......... 2,416,372
--------------
31,010,842
--------------
SWEDEN -- 1.9%
125,000 Astra A Free A Shares......... 4,979,855
256,500 Avesta Sheffield.............. 2,255,818
*246,800 BT Industries 144A............ 2,708,500
258,000 Stora Koppabergs.............. 3,025,347
--------------
12,969,520
--------------
SWITZERLAND -- 3.0%
9,200 Ciba Geigy AG................. 8,096,766
7,850 Nestle SA..................... 8,685,164
7,100 Sulzer AG-Part Cert........... 3,786,092
--------------
20,568,022
--------------
THAI BAT -- 0.7%
3,270,000 Bangkok Metro Bank............ 3,050,615
150,000 Bangkok Bank.................. 1,822,152
--------------
4,872,767
--------------
UNITED KINGDOM -- 8.4%
252,000 Associated British Food....... 1,442,793
506,000 Bass.......................... 5,644,903
5,152,000 Bet PLC....................... 10,152,118
621,000 Body Shop International....... 1,464,577
1,650,000 British Steel PLC............. 4,166,602
782,000 British Telecom Co. PLC....... 4,295,237
897,000 Northern Foods PLC............ 2,379,938
516,234 Powergen PLC.................. 4,265,235
1,000,000 Rank Organization............. 7,230,411
780,000 Royal Insurance Holding....... 4,623,119
853,000 Tomkins PLC................... 3,732,288
2,270,000 Vodafone Group PLC............ 8,118,464
--------------
57,515,685
--------------
Total common stocks........... $ 646,020,448
--------------
--------------
NON-CONVERTIBLE PREFERRED
STOCKS -- 0.7%
118,000 Nokia Preferred ADR........... 4,587,250
--------------
--------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
98
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET MARKET
AMOUNT VALUE VALUE
- ----------- -------------- --------------
<C> <S> <C> <C> <C> <C>
</TABLE>
SHORT-TERM SECURITIES -- 4.9%
$23,735,000 Repurchase Agreement dated
12/29/95 with Swiss Bank
Corp. 5.850% due 01/02/96;
maturity amount $23,750,428;
(Collateralized by
$15,450,000 U.S. Treasury
Bond 10.625% due 08/15/15).. $ 23,735,000
10,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $10,006,889;
(Collateralized by
$11,568,000 Federal National
Mortgage Association 9.000%
due 03/01/25)............... 10,000,000
--------------
Total short-term securities... 33,735,000
--------------
--------------
<TABLE>
<S> <C> <C>
DIVERSIFICATION OF ASSETS:
Total common stocks.......................... 94.1 % $ 646,020,448
Total non-convertible preferred stocks....... 0.7 4,587,250
Total short term securities.................. 4.9 33,735,000
------ --------------
Total investment in securities
**(Identified cost $620,491,037)........... 99.7% 684,342,698
Excess of cash and receivables over
liabilities................................ 0.3 2,132,507
------ --------------
Net Assets (Applicable to $1.30569 per share
based on 525,757,191 shares outstanding)... 100.0% $ 686,475,205
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY
Capital stock, par value $.10 per share authorized
1,500,000,000 shares, outstanding 525,757,191
shares............................................. $ 52,575,719
Capital surplus...................................... 549,706,663
Undistributed net realized gain on investments....... 20,401,743
Unrealized appreciation of investments............... 63,851,658
Unrealized (depreciation) on forward currency
contracts.......................................... (58,771)
Unrealized (depreciation) on translation on other
assets and liabilities in foreign currencies....... (1,807)
--------------
Net assets, applicable to shares outstanding......... $ 686,475,205
--------------
--------------
</TABLE>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
TOTAL AGGREGATE DELIVERY UNREALIZED
DESCRIPTION VALUE FACE VALUE DATE APPREC./(DEPREC.)
- ------------------------------ ---------- ---------- --------- -----------------
<S> <C> <C> <C> <C>
Swiss Franc (Sell) $7,540,586 $7,500,000 03/27/96 $ (40,586)
French Frank (Sell) 12,503,298 12,500,000 05/10/96 (3,298)
Dutch Guilder (Sell) 5,014,887 5,000,000 03/27/96 (14,887)
--------
$ (58,771)
--------
--------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
99
<PAGE>
HARTFORD DIVIDEND AND GROWTH FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
SHARES MARKET VALUE SHARES VALUE
- ----------- -------------- ----------- --------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- 95.5%
</TABLE>
<TABLE>
<C> <S> <C>
COMPUTER & OFFICE EQUIPMENT --
1.5%
28,400 Xerox......................... $ 3,890,800
--------------
CONSUMER DURABLES -- 1.5%
136,200 Ford Motor Co................. 3,949,800
--------------
CONSUMER NON-DURABLES -- 9.7%
37,400 Avon Products................. 2,819,025
26,700 Colgate Palmolive Co.......... 1,875,675
29,100 Eastman Kodak................. 1,949,700
129,150 Flowers Industries, Inc....... 1,565,944
114,500 Interstate Bakeries........... 2,561,937
42,700 Kimberly Clark Corp........... 3,533,425
94,900 Philip Morris................. 8,588,450
88,800 RJR Nabisco Holdings.......... 2,741,700
4,270 Schweitzer Mauduit
International............... 98,744
4,000 Universal Corp................ 97,500
--------------
25,832,100
--------------
ENERGY AND SERVICES -- 12.0%
89,400 Amoco Corporation............. 6,425,625
73,400 Exxon......................... 5,881,175
78,400 Pennzoil Co................... 3,312,400
92,100 Phillips Petroleum............ 3,142,912
82,300 Texaco Inc.................... 6,460,550
188,300 USX-Marathon Group............ 3,671,850
102,800 Unocal Corp................... 2,994,050
--------------
31,888,562
--------------
FINANCIAL SERVICES -- 15.7%
93,600 Allstate Corp................. 3,849,300
77,200 American Express Co........... 3,194,150
70,000 Citicorp...................... 4,707,500
191,200 First Bank System Inc......... 9,488,300
143,700 First Union Corporation....... 7,993,313
125,600 Nationsbank Corp.............. 8,744,900
39,500 Patriot American
Hospitality................. 1,017,125
76,000 Safeco Corp................... 2,622,000
--------------
41,616,588
--------------
HEALTH CARE -- 16.7%
71,100 American Home Products
Corp........................ 6,896,700
81,100 C R Bard Inc.................. 2,615,475
94,500 Baxter International.......... 3,957,187
70,500 Bristol-Myers Squibb
Company..................... 6,054,188
137,600 Merck & Co., Inc.............. 9,047,200
124,000 Pfizer, Inc................... 7,812,000
84,300 Warner-Lambert Company........ 8,187,638
--------------
44,570,388
--------------
INDUSTRIAL MATERIALS -- 6.6%
55,400 Albemarle Corp................ 1,073,375
34,000 Dow Chemical.................. 2,392,750
37,400 Dupont EI De Nemours.......... 2,613,325
97,400 International Paper Co........ 3,689,025
63,200 Nalco Chemical Co............. 1,903,900
36,400 PPG Industries, Inc........... 1,665,300
57,900 Weyerhaeuser Company.......... 2,504,175
INDUSTRIAL MATERIALS --
(CONTINUED)
52,000 Witco Chemical Corp........... $ 1,521,000
--------------
17,362,850
--------------
MANUFACTURING -- 8.3%
16,000 Cooper Industries............. 588,000
7,200 Eaton Corp.................... 386,100
87,630 General Electric.............. 6,309,360
53,200 Minnesota Mining &
Manufacturing Co............ 3,524,500
78,500 Northrop Grumman Corp......... 5,024,000
29,800 Sundstrand Corp............... 2,097,175
22,600 TRW, Inc...................... 1,751,500
46,400 Tenneco, Inc.................. 2,302,600
--------------
21,983,235
--------------
MEDIA & SERVICES -- 1.5%
19,700 Dun & Bradstreet Corp......... 1,275,575
43,500 Gannett Co., Inc.............. 2,669,813
--------------
3,945,388
--------------
REAL ESTATE -- 0.1%
9,600 Starwood Lodging Trust........ 285,600
--------------
RETAIL -- 3.3%
92,500 May Department Stores Co...... 3,908,125
102,400 Mercantile Stores, Inc........ 4,736,000
--------------
8,644,125
--------------
UTILITY -- 18.6%
50,800 AT&T Corp..................... 3,289,300
24,800 Bell Atlantic Corp............ 1,658,500
63,000 Bell South Corp............... 2,740,500
29,100 CMS Energy Corp............... 869,362
64,700 Carolina Power And Lighting... 2,232,150
51,900 Cincinnati Bell Inc........... 1,803,525
61,500 Cinergy Corp.................. 1,883,438
23,400 Comsat Corp................... 435,825
71,300 DPL Inc....................... 1,764,675
54,250 DQE Inc....................... 1,668,188
31,100 Equitable Resources........... 971,875
54,000 Florida Power & Light Group
Inc......................... 2,504,250
47,500 Frontier Corp................. 1,425,000
39,700 GTE Corp...................... 1,746,800
43,000 N E Electric System........... 1,703,875
53,600 NYNEX Corporation............. 2,894,400
30,800 Pacific Gas & Electric
Company..................... 873,950
118,800 Pinnacle West Cap............. 3,415,500
45,600 Public Service Co. Of
Colorado.................... 1,613,100
14,400 Questar Corp.................. 482,400
69,300 SBC Communications Inc........ 3,984,750
32,600 Sierra Pacific Res............ 762,025
35,000 Sprint Corp................... 1,395,625
114,900 Texas Utilities............... 4,725,262
24,500 Union Electric Co............. 1,022,875
89,900 Westcoast Energy Inc.......... 1,314,787
--------------
49,181,937
--------------
Total common stocks........... $ 253,151,373
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
100
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET MARKET
AMOUNT VALUE VALUE
- ----------- -------------- --------------
<C> <S> <C> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS -- 0.8% DIVERSIFICATION OF ASSETS:
</TABLE>
<TABLE>
<C> <S> <C>
TRANSPORTATION
AMR Corp.
$ 2,090,000 6.125% due 11/01/24......... $ 2,163,150
--------------
--------------
SHORT-TERM SECURITIES -- 6.8%
13,055,000 Repurchase Agreement dated
12/29/95 with Aubrey Lanston
5.900% due 01/02/96;
maturity amount $13,063,558;
(Collateralized by
$13,055,000 U.S. Treasury
Note 5.125% due 12/31/98)... 13,055,000
5,000,000 Repurchase Agreement dated
12/29/95 with Morgan Stanley
6.200% due 01/02/96;
maturity amount $5,003,444;
(Collateralized by
$5,784,000 Federal National
Mortgage Association 9.000%
due 03/1/25)................ 5,000,000
--------------
Total short-term securities... $ 18,055,000
--------------
--------------
Total common stocks 95.5% $253,151,373
Total convertible corporate bonds............ 0.8 2,163,150
Total short-term securities.................. 6.8 18,055,000
------ ------------
Total investment in securities
**(Identified cost $243,108,084)........... 103.1% 273,369,523
Excess of liabilities over cash and
receivables................................ (3.1) (8,299,056)
------ ------------
Net assets (Applicable to $1.31702 per share
based on 201,265,170 shares outstanding)... 100.0% $265,070,467
------ ------------
------ ------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share; authorized
750,000,000 shares; outstanding 201,265,170
shares............................................. $ 20,126,517
Capital surplus...................................... 208,122,925
Undistributed net realized gain on investments....... 6,559,586
Unrealized appreciation of investments............... 30,261,439
------------
Net assets, applicable to shares outstanding......... $265,070,467
------------
------------
<FN>
* Non-income producing during period.
** Aggregate cost for Federal income tax purposes.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
101
<PAGE>
Hartford International Advisers Fund, Inc.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- -------------- -------------- -------------- ------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- 63.3%
ARGENTINA -- 0.6%
4,750 Baesa ADR............................... $ 97,969
2,000 Telefonica De Argentina-ADR............. 54,500
2,000 YPF S.A. Sponsored ADR.................. 43,250
--------------
195,719
--------------
AUSTRALIA -- 3.3%
7,422 Advance BK Australia.................... 59,427
28,750 Amcor Ltd............................... 202,871
39,608 Australia & New Zealand Banking......... 185,639
20,549 Broken Hill Proprietary................. 290,005
5,369 National Australia Bank................. 48,257
4,500 Qantas Air ADR 144A..................... 74,813
36,000 Westpac Banking Corp.................... 159,370
--------------
1,020,382
--------------
AUSTRIAN -- 0.6%
1,400 EVN..................................... 191,828
--------------
BELGIUM -- 0.3%
2,250 Delhaize Le Lion........................ 92,972
--------------
BRAZIL -- 0.4%
7,250 Electrobras On ADR...................... 98,781
4,000 Usiminas Siderurg Minas-ADR............. 32,512
--------------
131,293
--------------
CANADA -- 1.0%
17,500 Canadian Pacific Ltd.................... 317,188
--------------
CHILE -- 0.3%
1,000 Compania de Telefon Chile-ADR........... 82,875
--------------
DENMARK -- 1.3%
8,000 Tele Danmark............................ 221,000
3,500 UniDanmark A Registered................. 173,068
--------------
394,068
--------------
FINLAND -- 0.7%
*3,000 Metsa-Serla Oy B........................ 92,221
55,000 Unitas Bank Ltd......................... 138,790
--------------
231,011
--------------
FRANCE -- 5.3%
3,500 Bank National Paris 144A................ 157,638
1,000 Canal Plus SA........................... 187,171
450 Euro RSCG Worldwide..................... 33,030
403 Groupe Danone........................... 66,392
700 Peugeot SA.............................. 92,199
3,600 Renault................................. 103,495
13,000 Rhone-Poulenc........................... 278,045
*1,482 Saint Gobain............................ 163,774
1,337 Societe Generale........................ 164,868
1,700 Societe Nationale Elf Acquitaine........ 125,058
1,000 Technip................................. 68,711
3,293 Total SA................................ 221,901
--------------
1,662,282
--------------
GERMANY -- 3.8%
700 Bayer AG................................ 185,369
150 Beiersdorf.............................. 102,747
245 Daimler-Benz AG Dem..................... 123,352
580 Degussa................................. 194,812
3,250 Deutsche Bank AG Dem.................... 153,912
280 Karstadt AG............................. 114,492
450 Mannesmann AG........................... 142,855
4,000 Veba.................................... 170,792
--------------
1,188,331
--------------
HONG KONG -- 2.7%
6,000 China Light Power....................... $ 27,624
HONG KONG -- (CONTINUED)
56,759 Hong Kong Telecommunica................. 101,297
40,000 Hutchison Whampoa Ltd................... 243,647
28,000 Sun Hung Kai............................ 229,033
31,000 Swire Pacific Ltd....................... 240,543
--------------
842,144
--------------
INDIA -- 0.1%
10,000 Indo Gulf GDR........................... 14,503
2,000 Reliance Inds GDS....................... 23,547
--------------
38,050
--------------
INDONESIA -- 0.4%
19,000 Jaya Real Property...................... 51,509
10,000 Jaya Real Property-Foreign.............. 27,110
12,000 Semen Gresik............................ 33,581
--------------
112,200
--------------
ITALY -- 1.5%
100,000 Banca Comml Italiana.................... 213,543
58,500 Stet.................................... 165,458
62,000 Telecom Italia SPA...................... 96,466
--------------
475,467
--------------
JAPAN -- 17.3%
7,000 Canon Sales............................. 186,116
15,000 Chichibu Oneda Cement................... 79,909
24,000 Chugai Pharmaceutical................... 229,489
11,000 Dai Nippon Printing..................... 186,116
10 East Japan Railway...................... 48,535
6,000 Home Wide Corp.......................... 70,773
3,000 Ito-Yokado Ltd.......................... 184,473
11,000 Kajima Corp............................. 108,479
34,000 Kawasaki Heavy Industries............... 156,144
33,000 Kawasaki Steel Corp..................... 114,860
27,000 Keio Teito Electric Rai................. 156,889
2,000 Kyoritsu Air Tech....................... 21,657
2,000 Mabuchi Motor........................... 124,142
9,000 Matsushita Electric Co.................. 146,186
10,000 Minebea Co., Ltd........................ 83,728
6,000 Mitsubishi Bank Ltd..................... 140,965
18,000 Mitsubishi Corp......................... 221,019
3,000 Mitsui Petrochemical.................... 24,509
2,000 Murata Manufacturing Co................. 73,480
3,000 Nihon Jumbo Co., Ltd.................... 104,709
12,000 Nippon Express.......................... 115,324
20 Nippon Telegraph & Telephone............ 161,462
*59,000 NKK Corporation......................... 158,581
10,000 Nomura Securities....................... 217,538
2,000 Orix Corp............................... 82,181
700 Riso Kagaku............................. 58,948
15,000 Sakura Bank............................. 189,984
8,000 Sankyo.................................. 179,445
7,000 Sanwa Bank Ltd.......................... 142,125
2,000 Sanyo Shinpan Financial Co.............. 164,362
3,000 Secom................................... 208,257
2,000 Seven Eleven............................ 140,772
3,000 Shimamura Co. Ltd....................... 115,730
100 Shohkoh Fund............................ 18,757
4,000 Showa Corporation....................... 30,591
2,000 Sony Corp............................... 119,694
17,000 Sumitomo Marsh & Fire................... 139,379
22,000 Sumitomo Realty......................... 155,274
11,000 Sumitomo Trust & Banking................ 155,274
11,000 Toda Construction Co.................... 95,185
4,000 Tohoku Electric Power................... 96,297
17,000 Tokio Marine & Fire Insurance........... 221,889
100 Tsutsumi Jewelry........................ 4,999
--------------
5,434,226
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
102
<PAGE>
<TABLE>
<CAPTION>
MARKET MARKET
SHARES VALUE SHARES VALUE
- -------------- -------------- -------------- ------------
<C> <S> <C> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
MALAYSIA -- 1.0%
21,000 Resort World............................ $ 112,454
74,000 Sime Darby Berhad....................... 196,677
--------------
309,131
--------------
MEXICO -- 0.6%
3,000 Cemex SA................................ 42,911
20,000 Femsa SA................................ 46,263
*9,000 Grupo Carso SA.......................... 48,070
7,650 Transportation-Maritima................. 57,377
--------------
194,621
--------------
NETHERLANDS -- 2.7%
7,500 Elesevier............................... 99,782
5,325 International Nederlanden............... 354,890
3,000 Vendex International.................... 88,965
1,350 Unilever................................ 189,260
700 Verenigd Bezit.......................... 95,872
--------------
828,769
--------------
NEW ZEALAND -- 1.2%
31,000 Air New Zealand Class B................. 105,394
268,000 Brierley Investments.................... 212,017
28,000 Carter Holt............................. 60,411
--------------
377,822
--------------
NORWAY -- 2.5%
33,200 Christiana Bank......................... 77,501
5,344 Hafslund Nyco........................... 139,500
4,500 Kvaerner................................ 158,991
3,650 Orkla A/S A............................. 181,349
17,500 Saga Petro.............................. 233,241
--------------
790,582
--------------
PHILIPPINES -- 0.7%
12,000 Philippine National..................... 132,926
*80,000 Pilipino Telephone...................... 80,978
--------------
213,904
--------------
PORTUGAL -- 0.2%
*3,000 Portugal Telecom S.A. ADR............... 57,000
--------------
SINGAPORE -- 2.4%
8,000 Development Bank of Singapore........... 99,555
34,000 Keppel Corp............................. 302,906
14,000 OCBC Foreign............................ 175,210
19,000 United Overseas Bank.................... 182,705
--------------
760,376
--------------
SPAIN -- 3.5%
7,850 Repsol.................................. 258,069
3,150 Empresa Nacional De..................... 180,338
1,750 Acerinox SA............................. 176,481
6,100 Banco Bilbao Vizcaya.................... 219,093
1,000 Empresa Nac de Elec..................... 56,464
10,000 Iberdrola SA............................ 91,230
8,000 Telefonica de Espana.................... 110,464
--------------
1,092,139
--------------
SWEDEN -- 1.1%
2,500 Astra A Free............................ 99,597
7,700 Avesta Sheffield........................ 67,719
*8,000 BT Industries 144A...................... 87,796
*7,000 Stora Koppabergs A...................... 82,083
--------------
337,195
--------------
SWITZERLAND -- 1.9%
195 Ciba Geigy AG........................... 171,616
225 Nestle SA............................... 248,938
315 Sulzer AG-Part - CERT................... 167,975
--------------
588,529
--------------
THAI-BAT -- 0.6%
75,000 Bangkok Metro Bank...................... $ 69,968
THAI-BAT -- (CONTINUED)
3,000 Bangkok Bank............................ 36,443
5,000 Siam Commerical......................... 65,899
--------------
172,310
--------------
UNITED KINGDOM -- 5.3%
18,000 Bass.................................... 200,807
14,400 Body Shop International................. 33,961
153,000 Bet PLC................................. 301,490
11,000 British Telecom Co. PLC................. 60,419
70,000 British Steel PLC....................... 176,765
4,000 Associated Brit Food.................... 22,901
24,000 Northern Foods PLC...................... 63,677
12,147 Powergen PLC............................ 100,358
80,000 Vodafone Group PLC...................... 286,113
25,000 Rank Organization....................... 180,760
25,500 Royal Insurance Holding................. 151,141
20,000 Tomkins PLC............................. 87,510
--------------
1,665,902
--------------
Total Common Stocks..................... $ 19,798,316
--------------
--------------
NON-CONVERTIBLE PREFERRED STOCK -- 0.5%
CONSUMER DURABLES
4,000 Nokia PFD ADS........................... 155,500
--------------
--------------
PRINCIPAl
AMOUNT
- --------------
FOREIGN GOVERNMENT BONDS -- 27.7%
AUSTRALIA -- 1.1%
$ 415,000 Australian Commonwealth
9.750% due 03/15/02................... 337,345
-------------
AUSTRIA -- 0.5%
Austria Republic
1,500,000 6.875% due 06/20/05................... 152,849
-------------
BELGIUM -- 1.3%
Belgium Government
5,000,000 7.000% due 05/15/06................... 171,617
3,500,000 7.250% due 04/29/04................... 123,949
3,050,000 9.000% due 06/27/01................... 118,746
-------------
414,312
-------------
CANADA -- 2.1%
Canada Government
340,000 6.500% due 06/01/04................... 240,783
100,000 8.000% due 06/01/23................... 76,805
225,000 9.000% due 12/01/04................... 185,780
200,000 9.750% due 06/01/01................... 166,825
-------------
670,193
-------------
DENMARK -- 1.2%
910,000 8.000% due 06/15/03 - 03/15/06........ 173,087
1,015,000 9.000% due 11/15/98................... 198,806
-------------
371,893
-------------
FINLAND -- 0.9%
Finnish Government
1,000,000 10.000% due 09/15/01.................. 266,493
-------------
FRANCE -- 2.6%
France O.A.T.
926,000 5.500% due 04/25/04................... 176,493
2,166,000 8.500% due 11/25/02................... 494,489
626,000 9.500% due 01/25/01................... 147,227
-------------
818,209
-------------
GERMANY -- 3.1%
German Government
325,000 6.250% DUE 01/04/24................... 210,527
</TABLE>
103
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET PRINCIPAL MARKET
AMOUNT VALUE AMOUNT VALUE
- -------------- -------------- -------------- ------------
<C> <S> <C> <C> <C> <C>
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
300,000 7.500% due 11/11/04.................. 229,777
German Federal Unity
675,000 8.500% due 02/20/01.................. $ 538,263
-----------
978,567
-----------
ITALY -- 2.8%
425,000,000 9.000% due 10/01/03.................... 246,299
1,055,000,000 8.500% due 01/01/99 - 08/01/99......... 635,049
------------
881,348
------------
JAPAN -- 5.9%
European Investment Bank
4,000,000 6.625% due 03/15/00................... 46,166
Japan 145 Government National
146,000,000 5.500% due 03/20/02................... 1,652,822
Japan - 20
12,000,000 5.600% due 09/20/12................... 143,610
------------
1,842,598
------------
NETHERLANDS -- 0.8%
Netherlands Government
100,000 5.750% due 01/15/04................... 61,797
80,000 7.000% due 06/15/05................... 53,192
175,000 9.000% due 05/15/00................... 125,802
------------
240,791
------------
NEW ZEALAND -- 0.6%
New Zealand Government
265,000 8.000% due 07/15/98................... 174,151
------------
SPAIN -- 1.2%
Spanish Government
13,700,000 10.000% due 02/28/05.................. 114,177
28,500,000 12.250% due 03/25/00.................. 256,074
------------
370,251
------------
SWEDEN -- 1.1%
Swedish Government
2,200,000 10.250% due 05/05/00................... 354,997
------------
UNITED KINGDOM -- 2.5%
United Kingdom Treasury Gilt
180,000 7.000% due 11/06/01.................... 279,635
305,000 8.000% due 06/10/03.................... 494,679
------------
774,314
------------
Total foreign government bonds......... $8,648,311
------------
------------
SHORT-TERM SECURITIES -- 9.7%
$ 2,030,000 Repurchase Agreement dated 12/29/95 with Swiss
Bank Corp. 5.850% due 01/02/96; maturity
$2,031,320; (Collateralized by $1,755,000 US
Treasury Bond 7.500% due 11/15/16).......... $2,030,000
1,000,000 Repurchase Agreement dated 12/29/95 with
Morgan Stanley 6.200% due 01/02/96; maturity
$1,000,689; (Collateralized by $1,125,000 Federal
National Mortgage Association 9.000% due
03/01/25).................................. 1,000,000
------------
Total short-term securities................ $3,030,000
------------
------------
DIVERSIFICATION OF ASSETS:
Total Common Stocks.......................... 63.3 % $ 19,798,316
Total Non-Convertible Preferred Stock........ 0.5 155,500
Total Foreign Government Bonds............... 27.7 8,648,311
Total Short Term Securities.................. 9.7 3,030,000
------ --------------
Total investment in securities
**(Identified cost $30,132,432)............ 101.2% 31,632,127
Excess of liabilities over cash and
receivables................................ (1.2) (367,962 )
------ --------------
Net Assets (Applicable to $1.10903 per share
based on 28,190,650 shares outstanding).... 100.0% $ 31,264,165
------ --------------
------ --------------
SUMMARY OF SHAREHOLDERS' EQUITY:
Capital stock, par value $.10 per share authorized
750,000,000 shares, 28,190,650 outstanding
shares............................................. $ 2,819,065
Capital surplus...................................... 26,945,184
Undistributed net realized (loss) on investments..... (3,983 )
Unrealized appreciation of investments............... 1,499,263
Unrealized appreciation on forward currency
contracts.......................................... 5,374
Unrealized depreciation on translation on other
assets and liabilities in foreign currencies....... (738 )
--------------
Net assets, applicable to shares outstanding......... $ 31,264,165
--------------
--------------
</TABLE>
* Non-income producing during period.
**Aggregate cost for Federal income tax purposes.
FORWARD CURRENCY CONTRACTS -- NOTE 2 -- OUTSTANDING AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
UNREALIZED
AGGREGATE DELIVERY APPRECIATION/
TOTAL VALUE FACE VALUE DATE (DEPRECIATION)
----------- ----------- --------- -------------
<S> <C> <C> <C> <C>
German Deutschemarks (Buy) $ 116,580 $ 115,807 01/08/96 773
Austrian Schilling (Sell) 152,506 152,778 01/10/96 272
Australian Dollars (Sell) 333,572 334,459 01/10/96 887
Belgian Francs (Sell) 413,893 417,579 01/10/96 3,686
Canadian Dollars (Sell) 662,563 662,787 01/10/96 224
German Deutschemarks (Sell) 977,927 974,489 03/19/96 (3,438)
Danish Krone (Sell) 368,858 366,995 01/10/96 (1,862)
Spanish Pesetas (Sell) 362,957 358,014 01/10/96 (4,944)
Finnish Markkas (Sell) 265,983 264,642 01/17/96 (1,341)
French Francs (Sell) 817,572 807,349 01/10/96 (10,223)
British Pounds (Sell) 767,500 756,360 01/10/96 (11,140)
Italian Lira (Sell) 867,129 857,241 01/10/96 (9,888)
Japanese Yen (Sell) 1,872,364 1,911,948 01/10/96 39,583
Dutch Guilders (Sell) 241,652 240,450 03/19/96 (1,201)
Swedish Kronas (Sell) 351,622 355,607 01/10/96 3,985
-------------
5,374
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
104
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS,
STATEMENT OF CHANGES IN NET ASSETS,
NOTES TO FINANCIAL STATEMENTS
AND FINANCIAL HIGHLIGHTS
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
HARTFORD HARTFORD HVA HARTFORD
BOND STOCK MONEY MARKET ADVISERS
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
-------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ -- $ 34,303,856 $ -- $ 52,931,923
Interest............... 19,767,803 5,642,049 18,669,552 97,454,258
Less: Foreign tax
withheld.............. -- (36,960) -- (42,320)
-------------- ------------- ------------ -------------
Total income......... 19,767,803 39,908,945 18,669,552 150,343,861
-------------- ------------- ------------ -------------
EXPENSES:
Investment advisory
services.............. 906,000 4,134,925 762,534 16,044,763
Administrative
services.............. 491,868 2,586,517 542,895 6,244,398
Accounting services.... 26,732 124,381 34,341 325,104
Custodian fees......... 11,621 20,897 4,563 14,335
Board of directors..... 2,648 12,370 3,423 32,334
Other.................. 37,458 143,590 35,764 374,525
-------------- ------------- ------------ -------------
Total expenses....... 1,476,327 7,022,680 1,383,520 23,035,459
-------------- ------------- ------------ -------------
Net investment
income................ 18,291,476 32,886,265 17,286,032 127,308,402
-------------- ------------- ------------ -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 6,010,729 80,821,093 -- 97,284,118
Net realized gain
(loss) on futures
contracts............. -- -- -- --
Net realized gain
(loss) on options
contracts............. -- -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 22,790,429 308,861,831 -- 649,451,880
-------------- ------------- ------------ -------------
Net gain (loss) on
investments........... 28,801,158 389,682,924 -- 746,735,998
-------------- ------------- ------------ -------------
Net increase (decrease)
in net assets
resulting from
operations............ $ 47,092,634 $ 422,569,189 $17,286,032 $874,044,400
-------------- ------------- ------------ -------------
-------------- ------------- ------------ -------------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
106
<PAGE>
<TABLE>
<CAPTION>
HARTFORD
U.S. HARTFORD HARTFORD HARTFORD HARTFORD
GOVERNMENT CAPITAL MORTGAGE HARTFORD INTERNATIONAL DIVIDEND
MONEY MARKET APPRECIATION SECURITIES INDEX OPPORTUNITIES AND GROWTH
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
------------ ------------- ------------- ----------- ------------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ -- $ 15,430,064 $ -- $ 6,340,261 $13,859,003 $4,362,923
Interest............... 577,594 11,141,268 22,005,900 59,787 3,048,459 494,730
Less: Foreign tax
withheld.............. -- (387,564) -- (31,097) (2,185,709) (6,663)
------------ ------------- ------------- ----------- ------------------ -----------
Total income......... 577,594 26,183,768 22,005,900 6,368,951 14,721,753 4,850,990
------------ ------------- ------------- ----------- ------------------ -----------
EXPENSES:
Investment advisory
services.............. 24,282 7,715,873 790,058 447,326 3,213,660 757,373
Administrative
services.............. 16,998 2,814,856 553,041 391,411 1,045,064 230,541
Accounting services.... 1,036 123,003 33,072 16,914 59,753 5,583
Custodian fees......... 10,947 60,354 23,581 (8,132) 727,012 13,009
Board of directors..... 104 12,272 3,264 1,679 5,977 566
Other.................. 1,591 145,960 68,954 21,863 85,826 11,107
------------ ------------- ------------- ----------- ------------------ -----------
Total expenses....... 54,958 10,872,318 1,471,970 871,061 5,137,292 1,018,179
------------ ------------- ------------- ----------- ------------------ -----------
Net investment
income................ 522,636 15,311,450 20,533,930 5,497,890 9,584,461 3,832,811
------------ ------------- ------------- ----------- ------------------ -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... -- 127,384,090 5,901,957 461,701 21,336,447 6,559,586
Net realized gain
(loss) on futures
contracts............. -- 18,046,253 39,780 6,181,218 -- --
Net realized gain
(loss) on options
contracts............. -- -- 30,406 -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 236,498,480 20,383,033 55,250,626 48,716,467 31,161,907
------------ ------------- ------------- ----------- ------------------ -----------
Net gain (loss) on
investments........... -- 381,928,823 26,355,176 61,893,545 70,052,914 37,721,493
------------ ------------- ------------- ----------- ------------------ -----------
Net increase (decrease)
in net assets
resulting from
operations............ $522,636 $397,240,273 $ 46,889,106 $67,391,435 $79,637,375 $41,554,304
------------ ------------- ------------- ----------- ------------------ -----------
------------ ------------- ------------- ----------- ------------------ -----------
<CAPTION>
HARTFORD
INTERNATIONAL
ADVISERS
FUND, INC.*
-------------
<S> <C>
INVESTMENT INCOME:
Dividends.............. $ 227,008
Interest............... 372,698
Less: Foreign tax
withheld.............. (30,384)
-------------
Total income......... 569,322
-------------
EXPENSES:
Investment advisory
services.............. --
Administrative
services.............. 24,683
Accounting services.... 809
Custodian fees......... 55,080
Board of directors..... 100
Other.................. 14,872
-------------
Total expenses....... 95,544
-------------
Net investment
income................ 473,778
-------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on security
transactions.......... 473,990
Net realized gain
(loss) on futures
contracts............. --
Net realized gain
(loss) on options
contracts............. --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 1,503,899
-------------
Net gain (loss) on
investments........... 1,977,889
-------------
Net increase (decrease)
in net assets
resulting from
operations............ $2,451,667
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
107
<PAGE>
HARTFORD MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
HVA
HARTFORD HARTFORD MONEY HARTFORD
BOND STOCK MARKET ADVISERS
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
-------------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 18,291,476 $ 32,886,265 $17,286,032 $127,308,402
Net realized gain
(loss) on security
transactions.......... 6,010,729 80,821,093 -- 97,284,118
Net realized gain
(loss) on futures
contracts............. -- -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 22,790,429 308,861,831 -- 649,451,880
-------------- ------------- ----------- -------------
Net increase
(decrease) in net
assets resulting
from operations..... 47,092,634 422,569,189 17,286,032 874,044,400
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (18,291,476) (32,886,265) (17,286,032) (127,308,402)
Net realized gain on
security
transactions.......... -- (47,489,646) -- (36,509,652)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 227,913,447 668,241,451 1,501,677,031 462,346,769
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 18,291,476 80,375,915 17,286,033 163,818,063
Cost of Fund shares
redeemed.............. (179,969,221) (377,085,012) (1,500,719,153) (107,656,490)
-------------- ------------- ----------- -------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 66,235,702 371,532,354 18,243,911 518,508,342
-------------- ------------- ----------- -------------
Total increase
(decrease) in net
assets.............. 95,036,860 713,725,632 18,243,911 1,228,734,688
NET ASSETS:
Beginning of period.... 247,458,087 1,163,157,982 321,464,672 3,034,034,061
-------------- ------------- ----------- -------------
End of period.......... $342,494,947 $1,876,883,614 $339,708,583 4$,262,768,749
-------------- ------------- ----------- -------------
-------------- ------------- ----------- -------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 230,010,396 209,187,665 1,501,677,031 249,891,294
Shares issued upon
reinvestment of
dividends and capital
gains................. 18,548,321 27,804,998 17,286,033 93,801,847
Shares redeemed........ (182,704,340) (120,045,047) (1,500,719,153) (62,784,455)
-------------- ------------- ----------- -------------
Net increase (decrease)
in shares
outstanding........... 65,854,377 116,947,616 18,243,911 280,908,686
-------------- ------------- ----------- -------------
-------------- ------------- ----------- -------------
</TABLE>
* From inception, March 1, 1995, to December 31, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
108
<PAGE>
<TABLE>
<CAPTION>
HARTFORD U.S. HARTFORD HARTFORD HARTFORD HARTFORD
GOVERNMENT CAPITAL MORTGAGE HARTFORD INTERNATIONAL DIVIDEND
MONEY MARKET APPRECIATION SECURITIES INDEX OPPORTUNITIES AND GROWTH
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
-------------------- ------------- ------------- ----------- ------------------ -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $522,636 $ 15,311,450 $ 20,533,930 $ 5,497,890 $ 9,584,461 $3,832,811
Net realized gain
(loss) on security
transactions.......... -- 127,384,090 5,901,957 461,701 21,336,447 6,559,586
Net realized gain
(loss) on futures
contracts............. -- 18,046,253 70,186 6,181,218 -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ -- 236,498,480 20,383,033 55,250,626 48,716,467 31,161,907
----------- ------------- ------------- ----------- ------------------ -----------
Net increase
(decrease) in net
assets resulting
from operations..... 522,636 397,240,273 46,889,106 67,391,435 79,637,375 41,554,304
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (522,636) (15,311,450) (20,533,930) (5,497,890) (9,584,461) (3,832,811)
Net realized gain on
security
transactions.......... -- (63,784,485) -- (65,176) (5,087,710) --
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 3,856,273 1,268,592,773 26,917,379 473,229,846 97,286,805 174,323,932
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 522,636 79,095,935 20,533,929 5,563,067 14,672,173 3,757,111
Cost of Fund shares
redeemed.............. (3,927,941) (666,584,981) (50,387,738) (380,028,762) (54,214,080) (5,797,586)
----------- ------------- ------------- ----------- ------------------ -----------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 450,968 681,103,727 (2,936,430) 98,764,151 57,744,898 172,283,457
----------- ------------- ------------- ----------- ------------------ -----------
Total increase
(decrease) in net
assets.............. 450,968 999,248,065 23,418,746 160,592,520 122,710,102 210,004,950
NET ASSETS:
Beginning of period.... 9,619,299 1,158,643,638 304,146,567 157,660,372 563,765,103 55,065,517
----------- ------------- ------------- ----------- ------------------ -----------
End of period.......... 10,$070,267 $2,157,891,703 $327,565,313 $318,252,892 $686,475,205 $265,070,467
----------- ------------- ------------- ----------- ------------------ -----------
----------- ------------- ------------- ----------- ------------------ -----------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 3,856,273 393,716,534 25,766,526 251,812,101 70,597,149 147,459,686
Shares issued upon
reinvestment of
dividends and capital
gains................. 522,636 28,381,165 19,717,253 3,055,911 12,477,963 3,182,667
Shares redeemed........ (3,927,941) (208,868,838) (48,682,017) (201,506,805) (45,827,064) (4,769,969)
----------- ------------- ------------- ----------- ------------------ -----------
Net increase (decrease)
in shares
outstanding........... 450,968 213,228,861 (3,198,238) 53,361,207 46,248,048 145,872,384
----------- ------------- ------------- ----------- ------------------ -----------
----------- ------------- ------------- ----------- ------------------ -----------
<CAPTION>
HARTFORD
INTERNATIONAL
ADVISERS
FUND, INC.*
-------------
<S> <C>
OPERATIONS:
Net investment
income................ $473,778
Net realized gain
(loss) on security
transactions.......... 473,990
Net realized gain
(loss) on futures
contracts............. --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ 1,503,899
-------------
Net increase
(decrease) in net
assets resulting
from operations..... 2,451,667
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (473,778)
Net realized gain on
security
transactions.......... (477,974)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 30,838,557
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 478,342
Cost of Fund shares
redeemed.............. (1,552,649)
-------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 29,764,250
-------------
Total increase
(decrease) in net
assets.............. 31,264,165
NET ASSETS:
Beginning of period.... --
-------------
End of period.......... 31,$264,165
-------------
-------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 29,196,317
Shares issued upon
reinvestment of
dividends and capital
gains................. 434,386
Shares redeemed........ (1,440,053)
-------------
Net increase (decrease)
in shares
outstanding........... 28,190,650
-------------
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
109
<PAGE>
Hartford Mutual Funds
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
HARTFORD HARTFORD HVA
BOND STOCK MONEY MARKET
FUND, INC. FUND, INC. FUND, INC.
---------------- --------------- ---------------
<S> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 15,499,377 $ 23,456,619 $ 11,242,769
Net realized gain
(loss) on security
transactions.......... (15,502,624) 47,489,646 --
Net realized gain
(loss) on futures
contracts............. (1,484,713) -- --
Net realized gain
(loss) on options
contracts............. -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (8,713,699) (91,880,275) --
---------------- --------------- ---------------
Net increase (decrease)
in net assets
resulting from
operations............ (10,201,659) (20,934,010) 11,242,769
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (15,499,377) (23,456,619) (11,242,769)
Net realized gain on
security
transactions.......... (4,467,655) (59,838,405) --
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 321,606,810 491,044,914 1,169,307,801
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 19,967,032 83,295,024 11,242,769
Cost of Fund shares
redeemed.............. (303,548,769) (275,377,788) (1,093,173,662)
---------------- --------------- ---------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 38,025,073 298,962,150 87,376,908
---------------- --------------- ---------------
Total increase
(decrease) in net
assets.............. 7,856,382 194,733,116 87,376,908
NET ASSETS:
Beginning of period.... 239,601,705 968,424,866 234,087,764
---------------- --------------- ---------------
End of period.......... $ 247,458,087 $ 1,163,157,982 $ 321,464,672
---------------- --------------- ---------------
---------------- --------------- ---------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 324,129,384 170,123,593 1,169,307,801
Shares issued upon
reinvestment of
dividends and capital
gains................. 20,471,697 28,261,576 11,242,769
Shares redeemed........ (306,837,163) (95,662,565) (1,093,173,662)
---------------- --------------- ---------------
Net increase (decrease)
in shares
outstanding........... 37,763,918 102,722,604 87,376,908
---------------- --------------- ---------------
---------------- --------------- ---------------
</TABLE>
* From inception, March 8, 1994, to December 31, 1994.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
110
<PAGE>
<TABLE>
<CAPTION>
HARTFORD
U.S. HARTFORD HARTFORD
HARTFORD GOVERNMENT CAPITAL MORTGAGE
ADVISERS MONEY MARKET APPRECIATION SECURITIES
FUND, INC. FUND, INC. FUND, INC. FUND, INC.
---------------- ------------ --------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 95,563,451 $ 343,046 $ 3,956,139 $ 22,008,530
Net realized gain
(loss) on security
transactions.......... 36,509,652 -- 65,960,774 (18,809,782)
Net realized gain
(loss) on futures
contracts............. -- -- (2,071,865) (40,932)
Net realized gain
(loss) on options
contracts............. -- -- -- 26,563
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (211,113,159) -- (40,815,773) (9,086,028)
---------------- ------------ --------------- --------------
Net increase (decrease)
in net assets
resulting from
operations............ (79,040,056) 343,046 27,029,275 (5,901,649)
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (95,563,451) (343,046) (3,956,139) (22,008,530)
Net realized gain on
security
transactions.......... (75,830,481) -- (71,271,919) (1,593,324)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 753,833,772 3,263,991 882,948,421 19,488,680
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 171,393,932 343,046 75,228,058 23,601,854
Cost of Fund shares
redeemed.............. (67,309,913) (3,437,141) (530,237,732) (74,638,761)
---------------- ------------ --------------- --------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 857,917,791 169,896 427,938,747 (31,548,227)
---------------- ------------ --------------- --------------
Total increase
(decrease) in net
assets.............. 607,483,803 169,896 379,739,964 (61,051,730)
NET ASSETS:
Beginning of period.... 2,426,550,258 9,449,403 778,903,674 365,198,297
---------------- ------------ --------------- --------------
End of period.......... $ 3,034,034,061 $ 9,619,299 $ 1,158,643,638 $ 304,146,567
---------------- ------------ --------------- --------------
---------------- ------------ --------------- --------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 449,571,900 3,263,991 310,435,654 18,922,336
Shares issued upon
reinvestment of
dividends and capital
gains................. 102,233,951 343,046 25,754,762 23,146,211
Shares redeemed........ (41,310,436) (3,437,141) (186,291,460) (72,966,325)
---------------- ------------ --------------- --------------
Net increase (decrease)
in shares
outstanding........... 510,495,415 169,896 149,898,956 (30,897,778)
---------------- ------------ --------------- --------------
---------------- ------------ --------------- --------------
<CAPTION>
HARTFORD
HARTFORD INTERNATIONAL HARTFORD
INDEX OPPORTUNITIES DIVIDEND AND GROWTH
FUND, INC. FUND, INC. FUND, INC.*
------------- ------------- -------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment
income................ $ 3,760,674 $ 6,563,325 $ 709,451
Net realized gain
(loss) on security
transactions.......... 303,039 8,495,707 68,307
Net realized gain
(loss) on futures
contracts............. 60,051 -- --
Net realized gain
(loss) on options
contracts............. -- -- --
Net unrealized
appreciation
(depreciation) of
investments during the
period................ (2,407,858) (25,853,182) (900,465)
------------- ------------- -------------------
Net increase (decrease)
in net assets
resulting from
operations............ 1,715,906 (10,794,150) (122,707)
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (3,760,674) (6,563,325) (709,451)
Net realized gain on
security
transactions.......... -- -- (68,307)
CAPITAL SHARE
TRANSACTIONS:
Proceeds from Fund
shares sold........... 94,987,497 311,466,613 55,786,553
Net asset value of Fund
shares issued upon
reinvestment of
dividends and capital
gains................. 3,638,667 6,509,276 701,056
Cost of Fund shares
redeemed.............. (79,317,298) (18,461,122) (521,627)
------------- ------------- -------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 19,308,866 299,514,767 55,965,982
------------- ------------- -------------------
Total increase
(decrease) in net
assets.............. 17,264,098 282,157,292 55,065,517
NET ASSETS:
Beginning of period.... 140,396,274 281,607,811 --
------------- ------------- -------------------
End of period.......... $ 157,660,372 $563,765,103 $ 55,065,517
------------- ------------- -------------------
------------- ------------- -------------------
CHANGE IN CAPITAL SHARES
OUTSTANDING:
Shares sold............ 61,853,526 257,732,430 55,208,333
Shares issued upon
reinvestment of
dividends and capital
gains................. 2,385,383 5,455,472 696,988
Shares redeemed........ (51,476,702) (15,397,114) (512,536)
------------- ------------- -------------------
Net increase (decrease)
in shares
outstanding........... 12,762,207 247,790,788 55,392,785
------------- ------------- -------------------
------------- ------------- -------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
111
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION:
Hartford Bond Fund, Inc., Hartford Stock Fund, Inc., HVA Money Market Fund,
Inc., Hartford Advisers Fund, Inc., Hartford U.S. Government Money Market
Fund, Inc., Hartford Capital Appreciation Fund, Inc. (formerly Hartford
Aggressive Growth Fund, Inc.), Hartford Mortgage Securities Fund, Inc.,
Hartford Index Fund, Inc., Hartford International Opportunities Fund, Inc.,
Hartford Dividend and Growth Fund, Inc., and Hartford International Advisers
Fund, Inc. (the Funds) are organized under the laws of the State of Maryland
and are registered with the Securities and Exchange Commission (SEC) under
the Investment Company Act of 1940, as amended, as diversified open-ended
management investment companies.
Fund shares are made available to serve as the underlying investment media
of the variable annuity, variable life insurance and group pension contracts
issued by the affiliated life insurance company Separate Accounts of the ITT
Hartford Life Insurance Companies (Hartford Life Insurance Company and ITT
Hartford Life and Annuity Insurance Company). The Fund's objectives are as
follows:
<TABLE>
<S> <C>
Hartford Bond Fund, Inc. Seeks a high level of current income while preserving capital through
investing in high-grade government and corporate bonds and other debt
securities.
Hartford Stock Fund, Inc. Seeks long-term capital growth through a diversified portfolio of equity
securities.
HVA Money Market Fund, Inc. Seeks a high level of current income consistent with liquidity and the
need for preservation of capital through high-quality money-market
securities.
Hartford Advisers Fund, Inc. Seeks a high, long-term total rate of return (capital growth and current
income) through a varying mix of stocks, bonds and money market
instruments.
Hartford U.S. Government Seeks a high level of current income consistent with preservation of
Money Market Fund, Inc. capital through short-term securities issued or guaranteed by the U.S.
Government and its Agencies.
Hartford Capital Appreciation Seeks growth of capital through investment in equity securities of
Fund, Inc. companies with high growth potential, including small emerging
companies.
Hartford Mortgage Securities Seeks a high level of current income by investing primarily in
Fund, Inc. mortgage-backed securities, including securities issued by Government
National Mortgage Association.
Hartford Index Fund, Inc. Seeks to approximate the price and yield performance represented by the
Standard & Poor's 500 Composite Stock Price Index through investment in
common stocks.
Hartford International Seeks a long-term total return consistent with that of international
Opportunities Fund, Inc. equity markets through investment primarily in foreign equity securities
issues.
Hartford Dividend and Growth Seeks a high level of current income consistent with growth of capital
Fund, Inc. and moderate investment risk. Primary investments are equity securities
and securities covertible into equity securities that typically have
above average yield.
Hartford International Seeks a long-term total rate of return consistent with moderate risk.
Advisers Fund, Inc. Investments include a mix of debt, equity and money market instruments
primarily with foreign issuers.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies of the Funds,
which are in accordance with generally accepted accounting principles in the
investment company industry:
a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and
losses are determined on the basis of identified cost.
b) SECURITY VALUATION--Debt securities (other than short-term obligations)
are valued on the basis of valuations furnished by an unaffiliated pricing
service which determines valuations for normal institutional size trading
units of debt securities. Mortgage securities are valued at the bid price.
Short-term securities held in HVA Money Market Fund, Inc. and Hartford
U.S. Government Money Market Fund, Inc. are valued at amortized cost or
original cost plus accrued
112
<PAGE>
interest receivable, both of which approximate market value. In Hartford
Advisers Fund, Inc., Hartford Capital Appreciation Fund, Inc., Hartford
Index Fund, Inc., Hartford Stock Fund, Inc., Hartford Bond Fund, Inc.,
Hartford Mortgage Securities Fund, Inc., Hartford International
Opportunities Fund, Inc., Hartford Dividend and Growth Fund, Inc., and
Hartford International Advisers Fund, Inc., short-term investments with a
maturity of 60 days or less when purchased are valued at amortized cost,
which approximates market value. Short-term investments with a maturity of
more than 60 days when purchased are valued based on market quotations
until the remaining days to maturity become less than 61 days. From such
time until maturity, the investments are valued at amortized cost.
Equity securities are valued at the last sales price reported on principal
securities exchanges (domestic or foreign). If no sale took place on such
day and in the case of certain equity securities traded over-the-counter,
then such securities are valued at the mean between the bid and asked
prices. Securities quoted in foreign currencies are translated into U.S.
dollars at the exchange rate at the end of the reporting period. Options
are valued at the last sales price; if no sale took place on such day,
then options are valued at the mean between the bid and asked prices.
Securities for which market quotations are not readily available and all
other assets are valued in good faith at fair value by a person designated
by the Funds' Board of Directors.
c) FOREIGN CURRENCY TRANSACTIONS--The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially expressed
in foreign currencies are converted into U.S. dollars at prevailing
exchange rates. Purchases and sales of investment securities, dividend and
interest income, and certain expenses are translated at the rates of
exchange prevailing on the respective dates of such transactions.
The Funds do not isolate that portion of the results of operations
resulting from changes in the foreign exchange rates on investments from
the fluctuations arising from changes in the market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales of foreign currencies, and the difference
between asset and liability amounts initially stated in foreign currencies
and the U.S. dollar value of the amounts actually received or paid. Net
unrealized foreign exchange gains or losses arise from changes in the
value of portfolio securities and other assets and liabilities at the end
of the reporting period, resulting from changes in the exchange rates.
d) REPURCHASE TRANSACTIONS--A repurchase agreement is an agreement by which
the seller of a security agrees to repurchase the security sold at a
mutually agreed upon time and price. At the time the Funds enter into a
repurchase agreement, the value of the underlying collateral
security(ies), including accrued interest, will be equal to or exceed the
value of the repurchase agreement and, in the case of repurchase
agreements exceeding one day, the value of the underlying security(ies),
including accrued interest, is required during the term of the agreement
to be equal to or exceed the value of the repurchase agreement. Securities
which serve to collateralize the repurchase agreement are held by each
Fund's custodian in book entry or physical form in the custodial account
of the Fund. Repurchase agreements are valued at cost plus accrued
interest receivable.
e) JOINT TRADING ACCOUNT--Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Funds may transfer uninvested cash
balances into a joint trading account managed by Hartford Investment
Management Company (HIMCO). These balances may be invested in one or more
repurchase agreements and/or short-term money market instruments.
f) FUTURES, OPTIONS ON FUTURES AND OPTIONS ACCOUNTING PRINCIPLES--The Funds
enter into futures contracts to retain their cash balance and yet be
exposed to the market thereby providing the liquidity necessary to
accommodate redemptions while at the same time providing shareholders the
investment return of a fully invested portfolio. A futures contract is an
agreement between two parties to buy and sell a security for a set price
on a future date. When the funds enter into such contracts, they are
required to deposit with their custodian an amount of "initial margin" of
cash or U.S. Treasury bills. Subsequent payments, called maintenance
margin, to and from the broker, are made on a daily basis as the price of
the underlying debt security fluctuates, making the long and short
positions in the futures contract more or less valuable
113
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995
(i.e., mark-to-market), which results in an unrealized gain or loss to the
Funds. The market value of a traded futures contract is the last sale
price or, in the absence of a last sale price, the last offering price or,
in the absence of either of these prices, fair value is determined
according to procedures established by the Funds' Board of Directors.
At any time prior to expiration of the futures contract, the Funds may
close the position by taking an opposite position which would operate to
terminate the position in the futures contract. A final determination of
maintenance margin is then made, additional cash is required to be paid by
or released to the Funds and the Funds realize a gain or loss.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's Statement of Net Assets as an investment and
subsequently "marked to market" to reflect the current market value of the
option purchased as of the end of the reporting period. If an option which
the Fund has purchased expires on its stipulated expiration date, the Fund
realizes a loss in the amount of the cost of the option. If the Fund
enters into a closing transaction, it realizes a gain or loss, depending
on whether the proceeds from the sale are greater or less than the cost of
the option. If the Fund exercises a put option, it realizes a gain or loss
from the sale of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. If the Fund exercises a
call option, the cost of the security which the Fund purchases upon
exercise will be increased by the premium originally paid. The Funds had
no options contracts outstanding at December 31, 1995.
g) FEDERAL INCOME TAXES--For Federal income tax purposes, the Funds intend
to continue to qualify as regulated investment companies under Subchapter
M of the Internal Revenue Code by distributing substantially all of their
taxable income to their shareholders or otherwise complying with the
requirements for regulated investment companies. Accordingly, no provision
for Federal income taxes has been made.
h) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTIONS TO SHAREHOLDERS--Orders
for the Fund's shares are executed in accordance with the investment
instructions of the contract owners. Dividend income is accrued as of the
ex-dividend date. Interest income and expenses are accrued on a daily
basis. The net asset value of the Fund's shares is determined as of the
close of each business day of the New York Stock Exchange (the Exchange).
Orders for the purchase of the Funds' shares received prior to the close
of the Exchange on any day on which the fund is open for business are
priced at the per-share net asset value determined as of the close of the
Exchange. Orders received after the close of the Exchange, or on a day on
which the Exchange and/or the Fund is not open for business, are priced at
the per-share net asset value next determined.
Dividends are declared by the Funds' Board of Directors based upon the
investment performance of the respective Funds. The policy with respect to
Hartford Bond Fund, Inc., Hartford Stock Fund, Inc., Hartford Advisers
Fund, Inc., Hartford Capital Appreciation Fund, Inc., Hartford Mortgage
Securities Fund, Inc., Hartford Index Fund, Inc., Hartford International
Opportunities Fund, Inc., Hartford Dividend and Growth Fund, Inc., and
Hartford International Advisers Fund, Inc. is to distribute dividends from
net investment income monthly and distribute realized capital gains, if
any, annually.
HVA Money Market Fund, Inc. and Hartford U.S. Government Money Market
Fund, Inc. seek to maintain a stable net asset value per share of $1.00 by
declaring a daily dividend from net investment income, including net
short-term capital gains and losses, and by valuing their investments
using the amortized cost method. Dividends are distributed monthly.
i) RESTRICTED SECURITIES--The following securities are restricted for sale
to qualified institutional investors.
<TABLE>
<CAPTION>
% OF
PAR ACQUISITION MARKET NET ASSETS
FUND SECURITY VALUE DATE COST VALUE OF FUND
- ----------------------- ------------------------------ ------------- ---------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Stock Autotote Corp.
4.950% due 8/20/01.......... $ 16,000,000 8/13/93 $ 16,000,000 $ 3,765,986 0.2%
Advisers Autotote Corp.
4.950% due 8/20/01.......... $ 24,000,000 8/13/93 $ 24,000,000 $ 5,648,978 0.1%
Capital Appreciation Planet Hollywood
10.000% due 8/22/00......... $ 8,000,000 8/22/95 $ 8,000,000 $ 10,435,920 0.5%
</TABLE>
114
<PAGE>
j) FOREIGN CURRENCY CONTRACTS--As of December 31, 1995, Hartford
International Opportunities Fund, Inc., Hartford Capital Appreciation
Fund, Inc. and Hartford International Advisers Fund, Inc. have entered
into forward foreign currency exchange contracts that obligate the Funds
to repurchase currencies at specified future dates. The Funds enter into
forward foreign currency contracts to manage currency exchange rate risk.
Forward contracts involve elements of market risk in excess of the amount
reflected in the Statement of Net Assets. The Fund bears the risk of an
unfavorable change in the foreign exchange rate underlying the forward
contract.
k) USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the financial statements and the reported
amounts of income and expenses during the period. Operating results in the
future could vary from the amounts derived from management's estimates.
3. EXPENSES:
a) INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS--HIMCO, a wholly-owned
subsidiary of Hartford Life Insurance Company (HL) provides investment
management and supervision for Hartford Stock Fund, Inc., Hartford
Advisers Fund, Inc., Hartford Capital Appreciation Fund, Inc., Hartford
International Opportunities Fund, Inc., Hartford Dividend and Growth Fund,
Inc., and Hartford International Advisers, Fund, Inc., pursuant to an
Investment Management Agreement, which was approved by each Fund's Board
of Directors and shareholders.
HIMCO also serves as investment adviser to Hartford Bond Fund, Inc., HVA
Money Market Fund, Inc., Hartford U.S. Government Money Market Fund, Inc.,
Hartford Mortgage Securities Fund, Inc., and Hartford Index Fund, Inc.
pursuant to an Agreement, which was approved by the Fund's Board of
Directors and shareholders. The annual fees paid to HIMCO are .25% of the
average daily net assets for HVA Money Market Fund, Inc., Hartford U.S.
Government Money Market Fund, Inc. and Hartford Mortgage Securities Fund,
Inc., and .20% of the average daily net assets for Hartford Index Fund,
Inc.
The schedule below reflects the rates of compensation paid to HIMCO for
services rendered:
<TABLE>
<CAPTION>
HARTFORD BOND FUND, INC.
AND HARTFORD STOCK FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------------------ ------------
<S> <C>
On first $250 million .325%
On next $250 million .300
On next $500 million .275
Over $1 billion .250
<CAPTION>
HARTFORD ADVISERS FUND, INC.,
HARTFORD CAPITAL APPRECIATION FUND, INC.,
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.,
HARTFORD DIVIDEND AND GROWTH FUND, INC.
AND HARTFORD INTERNATIONAL ADVISERS FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL FEE
- ------------------------------------ ------------
<S> <C>
On first $250 million .575%
On next $250 million .525
On next $500 million .475
Over $1 billion .425
</TABLE>
For Hartford International Advisers Fund, Inc., HIMCO has agreed to waive
the Fund's fees until the Fund's assets (excluding assets contributed by
companies affiliated with HIMCO) reach $20 million.
Wellington Management Company (Wellington), under a Sub-Investment
Advisory Agreement with HIMCO, furnishes an investment program to HIMCO,
for utilization by HIMCO in rendering services to Hartford Stock Fund,
Inc., Hartford Advisers Fund, Inc., Hartford Capital Appreciation Fund,
Inc., Hartford International Opportunities
115
<PAGE>
HARTFORD MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995
Fund, Inc., Hartford Dividend and Growth Fund, Inc. and Hartford
International Advisers Fund, Inc. Wellington determines the purchase and
sale of portfolio securities and places such orders for execution, in the
name of the respective Fund. In conjunction with such activities,
Wellington regularly furnishes reports to the Fund's Board of Directors
concerning economic forecasts, investment strategy, portfolio activity and
performance of the Funds.
b) ADMINISTRATIVE SERVICES AGREEMENT--Under the Administrative Services
Agreement between HL and each of the Funds, HL provides administrative
services to the Funds and receives monthly compensation at the annual rate
of .175% of each Fund's average daily net assets. The Funds assume and pay
certain other expenses (including, but not limited to, shareholder
accounting, state taxes and directors' fees). Directors' fees represent
remuneration paid or accrued to directors not affiliated with HL or any
other related company.
c) OPERATING EXPENSES--Allocable expenses of the Funds are charged to each
fund based on the ratio of the net assets of each Fund to the combined net
assets of the Funds. Nonallocable expenses are charged to each fund based
on specific identification.
4. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:
The aggregate gross unrealized appreciation on all investments where there
was an excess of value over tax cost, the aggregate gross unrealized
depreciation of investments where there was an excess of tax cost over value
and the net unrealized appreciation (depreciation) of investments as of
December 31, 1995, were as follows:
<TABLE>
<CAPTION>
AGGREGATE GROSS AGGREGATE GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
--------------- --------------- --------------
<S> <C> <C> <C>
Hartford Bond Fund, Inc. $ 15,437,349 $ (17,287) $ 15,420,062
Hartford Stock Fund, Inc. 368,585,087 (29,069,241) 339,515,846
Hartford Advisers Fund, Inc. 637,232,582 (45,794,259) 591,438,323
Hartford Capital Appreciation Fund, Inc. 341,163,936 (75,128,662) 226,035,274
Hartford Mortgage Securities Fund, Inc. 7,095,079 (616,975) 6,478,104
Hartford Index Fund, Inc. 74,889,886 (2,949,607) 71,950,279
Hartford International Opportunities Fund, Inc. 78,460,910 (14,609,252) 63,851,658
Hartford Dividend and Growth Fund, Inc. 31,270,627 (1,009,188) 30,261,439
Hartford International Advisers Fund, Inc. 1,861,476 (362,213) 1,449,263
</TABLE>
5. EQUITY OF AFFILIATES:
a) HARTFORD DIVIDEND AND GROWTH FUND, INC.--Hartford Accident & Indemnity
Insurance Company, an affiliate of the Funds, redeemed ownership of
3,000,000 shares of Hartford Dividend and Growth Fund, Inc. on October 20,
1995, realizing a gain of $749,520.
b) HARTFORD INTERNATIONAL ADVISERS FUND, INC.--HL has ownership of
10,000,000 shares of Hartford International Advisers Fund, Inc.,
representing 35.5% of the total outstanding shares of the Fund as of
December 31, 1995.
c) As of December 31, 1995, certain HL group pension contracts held direct
interest in shares as follows:
<TABLE>
<CAPTION>
PERCENT OF
TOTAL
SHARES SHARES
------------ -----------
<S> <C> <C>
Hartford Stock Fund, Inc.......................................................................... 70,084 0.01%
Hartford Advisers Fund, Inc....................................................................... 11,995,216 0.55
Hartford Capital Appreciation Fund, Inc........................................................... 9,760,293 1.58
Hartford Mortgage Securities Fund, Inc............................................................ 15,512,929 5.07
Hartford Index Fund, Inc.......................................................................... 12,029,208 7.67
Hartford International Opportunities Fund, Inc.................................................... 5,629,699 1.07
</TABLE>
116
<PAGE>
6. CAPITAL GAINS DISTRIBUTION:
The Board of Directors declared a distribution from capital gains as follows
in the respective Funds:
<TABLE>
<CAPTION>
RECORD DATE PAYABLE DATE PER SHARE AMOUNT
----------------------- ----------------------- -----------------
<S> <C> <C> <C>
Hartford International Advisers Fund, Inc. December 28, 1995 December 31, 1995 $ 0.017363
Hartford Stock Fund, Inc. January 30, 1996 January 31, 1996 0.147531
Hartford Advisers Fund, Inc. January 30, 1996 January 31, 1996 0.043900
Hartford Capital Appreciation Fund, Inc. January 30, 1996 January 31, 1996 0.227840
Hartford Index Fund, Inc. January 30, 1996 January 31, 1996 0.038716
Hartford International Opportunities Fund, Inc. January 30, 1996 January 31, 1996 0.037233
Hartford Dividend and Growth Fund, Inc. January 30, 1996 January 31, 1996 0.028296
</TABLE>
7. INVESTMENT TRANSACTIONS:
For the year ended Decemebr 31, 1995, investment transactions (excluding
short-term investments) were as follows:
<TABLE>
<CAPTION>
PURCHASES AT SALES AT
COST PROCEEDS
---------------- ----------------
<S> <C> <C>
Hartford Bond Fund, Inc................................................................. $ 641,603,789 $ 574,279,913
Hartford Stock Fund, Inc................................................................ 1,001,207,257 741,738,505
Hartford Advisers Fund, Inc............................................................. 2,513,812,815 2,175,113,143
Hartford Capital Appreciation Fund, Inc................................................. 1,582,122,689 1,135,013,592
Hartford Mortgage Securities Fund, Inc.................................................. 1,501,622,577 1,492,472,675
Hartford Index Fund, Inc................................................................ 107,541,576 2,961,201
Hartford International Opportunities Fund, Inc.......................................... 375,268,287 306,915,718
Hartford Dividend and Growth Fund, Inc.................................................. 217,546,619 52,955,393
Hartford International Advisers Fund, Inc............................................... 34,393,152 7,684,577
</TABLE>
117
<PAGE>
HARTFORD MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
NET REALIZED
AND
NET ASSET UNREALIZED
VALUE AT NET GAINS OR TOTAL FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS
----------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
HARTFORD BOND FUND, INC.
For the Year Ended
December 31, 1995..... $ 0.926 $ 0.064 $ 0.102 0.166
1994................... 1.044 0.060 (0.100) (0.040)
1993................... 1.024 0.062 0.039 0.101
1992................... 1.061 0.074 (0.019) 0.055
1991................... 0.979 0.072 0.082 0.154
1990................... 0.976 0.075 0.003 0.078
HARTFORD STOCK FUND, INC.
For the Year Ended
December 31, 1995..... 2.801 0.070 0.840 0.910
1994................... 3.099 0.061 (0.111) (0.050)
1993................... 2.965 0.053 0.339 0.392
1992................... 2.927 0.051 0.219 0.270
1991................... 2.452 0.059 0.532 0.591
1990................... 2.775 0.070 (0.179) (0.109)
HVA MONEY MARKET FUND,
INC.
For the Year Ended
December 31, 1995..... 1.000 0.056 -- 0.056
1994................... 1.000 0.039 -- 0.039
1993................... 1.000 0.029 -- 0.029
1992................... 1.000 0.036 -- 0.036
1991................... 1.000 0.059 -- 0.059
1990................... 1.000 0.078 -- 0.078
HARTFORD ADVISERS FUND,
INC.
For the Year Ended
December 31, 1995...... 1.600 0.064 0.377 0.441
1994................... 1.752 0.054 (0.100) (0.046)
1993................... 1.676 0.050 0.145 0.195
1992................... 1.649 0.059 0.070 0.129
1991................... 1.436 0.063 0.223 0.286
1990................... 1.543 0.074 (0.059) 0.015
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Year Ended
December 31, 1995..... 1.000 0.054 -- 0.054
1994................... 1.000 0.036 -- 0.036
1993................... 1.000 0.027 -- 0.027
1992................... 1.000 0.032 -- 0.032
1991................... 1.000 0.055 -- 0.055
1990................... 1.000 0.073 -- 0.073
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Year Ended
December 31, 1995..... 2.860 0.030 0.785 0.815
1994................... 3.052 0.011 0.070 0.081
1993................... 2.634 0.003 0.526 0.529
1992................... 2.607 0.008 0.388 0.396
1991................... 1.709 0.021 0.898 0.919
1990................... 2.020 0.029 (0.246) (0.217)
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Year Ended
December 31, 1995..... 0.984 0.068 0.087 0.155
1994................... 1.075 0.068 (0.086) (0.018)
1993................... 1.079 0.071 (0.004) 0.067
1992................... 1.115 0.086 (0.036) 0.050
1991................... 1.054 0.088 0.061 0.149
1990................... 1.045 0.087 0.009 0.096
HARTFORD INDEX FUND, INC.
For the Year Ended
December 31, 1995..... 1.522 0.044 0.507 0.551
1994................... 1.546 0.038 (0.024) 0.014
1993................... 1.450 0.035 0.096 0.131
1992................... 1.390 0.033 0.060 0.093
1991................... 1.134 0.036 0.294 0.330
1990................... 1.220 0.037 (0.086) (0.049)
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Year Ended
December 31, 1995..... 1.176 0.020 0.141 0.161
1994................... 1.215 0.016 (0.039) (0.023)
1993................... 0.917 0.009 0.298 0.307
1992................... 0.973 0.013 (0.056) (0.043)
1991................... 0.871 0.011 0.102 0.113
1990(1)................ 1.000 0.015 (0.129) (0.114)
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Year Ended
December 31, 1995..... 1.000 0.033 0.317 0.350
From inception, March
8, 1994, through
December 31, 1994..... 1.000 0.024 (0.005) 0.019
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
From inception, March
1, 1995, through
December 31, 1995..... 1.000 0.030 0.126 0.156
</TABLE>
(1) From Effective Date (July 2, 1990) to December 31, 1990.
(2) Management fees have been waived until assets (excluding assets contributed
by companies affiliated with HIMCO) reach $20 million. The ratio of
operating expenses to average net assets would have been higher if
management fees were not waived. The ratio of net investment income to
average net assets would have been lower if management fees were not
waived.
(3) Annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
118
<PAGE>
<TABLE>
<CAPTION>
NET ASSETS RATIO OF
DIVIDENDS NET INCREASE NET ASSET AT END OF OPERATING
FROM NET DISTRIBUTIONS (DECREASE) VALUE AT PERIOD EXPENSES
INVESTMENT FROM REALIZED IN END TOTAL (IN TO AVERAGE
INCOME CAPITAL GAINS NET ASSETS OF PERIOD RETURN THOUSANDS) NET ASSETS
---------- ------------- ------------ ----------- --------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
HARTFORD BOND FUND, INC.
For the Year Ended
December 31, 1995..... $ (0.064) $ -- 0.102 $ 1.028 18.49% $ 342,495 0.53 %
1994................... (0.060) (0.018) (0.118) 0.926 (3.95) 247,458 0.55
1993................... (0.062) (0.019) 0.020 1.044 10.24 239,602 0.57
1992................... (0.074) (0.018) (0.037) 1.024 5.53 128,538 0.64
1991................... (0.072) -- 0.082 1.061 16.43 97,377 0.66
1990................... (0.075) -- 0.003 0.979 8.39 70,915 0.67
HARTFORD STOCK FUND, INC.
For the Year Ended
December 31, 1995..... (0.070) (0.114) 0.726 3.527 34.10 1,876,884 0.48
1994................... (0.061) (0.187) (0.298) 2.801 (1.89) 1,163,158 0.50
1993................... (0.053) (0.205) 0.134 3.099 14.34 968,425 0.53
1992................... (0.051) (0.181) 0.038 2.965 10.04 569,903 0.57
1991................... (0.059) (0.057) 0.475 2.927 24.58 406,489 0.60
1990................... (0.070) (0.144) (0.323) 2.452 (3.87) 257,553 0.66
HVA MONEY MARKET FUND,
INC.
For the Year Ended
December 31, 1995..... (0.056) -- -- 1.000 5.74 339,709 0.45
1994................... (0.039) -- -- 1.000 3.95 321,465 0.47
1993................... (0.029) -- -- 1.000 2.94 234,088 0.48
1992................... (0.036) -- -- 1.000 3.63 190,246 0.53
1991................... (0.059) -- -- 1.000 6.01 177,483 0.54
1990................... (0.078) -- -- 1.000 8.09 194,462 0.57
HARTFORD ADVISERS FUND,
INC.
For the Year Ended
December 31, 1995...... (0.064) (0.019) 0.358 1.958 28.34 4,262,769 0.65
1994................... (0.054) (0.052) (0.152) 1.600 (2.74) 3,034,034 0.65
1993................... (0.050) (0.069) 0.076 1.752 12.25 2,426,550 0.69
1992................... (0.059) (0.043) 0.027 1.676 8.30 985,747 0.78
1991................... (0.063) (0.010) 0.213 1.649 20.33 631,424 0.81
1990................... (0.074) (0.048) (0.107) 1.436 1.26 416,839 0.89
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Year Ended
December 31, 1995..... (0.054) -- -- 1.000 5.52 10,070 0.57
1994................... (0.036) -- -- 1.000 3.67 9,619 0.58
1993................... (0.027) -- -- 1.000 2.68 9,449 0.58
1992................... (0.032) -- -- 1.000 3.22 10,525 0.75
1991................... (0.055) -- -- 1.000 5.61 11,257 0.73
1990................... (0.073) -- -- 1.000 7.52 10,496 0.73
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Year Ended
December 31, 1995..... (0.030) (0.155) 0.630 3.490 30.25 2,157,892 0.68
1994................... (0.011) (0.262) (0.192) 2.860 2.50 1,158,644 0.72
1993................... (0.003) (0.108) 0.418 3.052 20.80 778,904 0.76
1992................... (0.008) (0.361) 0.027 2.634 16.98 300,373 0.87
1991................... (0.021) -- 0.898 2.607 53.99 158,046 0.92
1990................... (0.029) (0.065) (0.311) 1.709 (10.90) 56,032 0.96
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Year Ended
December 31, 1995..... (0.068) -- 0.087 1.071 16.17 327,565 0.47
1994................... (0.068) (0.005) (0.091) 0.984 (1.61) 304,147 0.48
1993................... (0.071) -- (0.004) 1.075 6.31 365,198 0.49
1992................... (0.086) -- (0.036) 1.079 4.64 258,711 0.56
1991................... (0.088) -- 0.061 1.115 14.71 162,484 0.58
1990................... (0.087) -- 0.009 1.054 9.70 105,620 0.58
HARTFORD INDEX FUND, INC.
For the Year Ended
December 31, 1995..... (0.044) (0.001) 0.506 2.028 36.55 318,253 0.39
1994................... (0.038) -- (0.024) 1.522 0.94 157,660 0.45
1993................... (0.035) -- 0.096 1.546 9.12 140,396 0.49
1992................... (0.033) -- 0.060 1.450 6.82 82,335 0.60
1991................... (0.036) (0.038) 0.256 1.390 29.53 47,770 0.67
1990................... (0.037) -- (0.086) 1.134 (3.99) 26,641 0.91
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Year Ended
December 31, 1995..... (0.020) (0.011) 0.130 1.306 13.93 686,475 0.86
1994................... (0.016) -- (0.039) 1.176 (1.94) 563,765 0.85
1993................... (0.009) -- 0.298 1.215 33.73 281,608 1.00
1992................... (0.013) -- (0.056) 0.917 (4.43) 47,560 1.23
1991................... (0.011) -- 0.102 0.973 13.00 22,854 1.24
1990(1)................ (0.015) -- (0.129) 0.871 (11.76) 9,352 1.04 (3)
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Year Ended
December 31, 1995..... (0.033) -- 0.317 1.317 36.37 265,070 0.77
From inception, March
8, 1994, through
December 31, 1994..... (0.024) (0.001) (0.006) 0.994 1.96 55,066 0.83 (3)
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
From inception, March
1, 1995, through
December 31, 1995..... (0.030) (0.017) 0.109 0.109 15.84 31,264 0.65 (2)(3)
<CAPTION>
RATIO OF
NET
INVESTMENT
INCOME PORTFOLIO
TO AVERAGE TURNOVER
NET ASSETS RATE
----------------- ------------
<S> <C> <C>
HARTFORD BOND FUND, INC.
For the Year Ended
December 31, 1995..... 6.51 % 215.0 %
1994................... 6.23 328.8
1993................... 5.93 494.3
1992................... 7.21 434.1
1991................... 7.29 337.0
1990................... 7.82 161.6
HARTFORD STOCK FUND, INC.
For the Year Ended
December 31, 1995..... 2.23 52.9
1994................... 2.17 63.8
1993................... 1.86 69.0
1992................... 1.90 69.8
1991................... 2.14 24.3
1990................... 2.76 20.2
HVA MONEY MARKET FUND,
INC.
For the Year Ended
December 31, 1995..... 5.57 --
1994................... 3.99 --
1993................... 2.91 --
1992................... 3.60 --
1991................... 5.88 --
1990................... 7.80 --
HARTFORD ADVISERS FUND,
INC.
For the Year Ended
December 31, 1995...... 3.57 63.5
1994................... 3.34 60.0
1993................... 3.07 55.3
1992................... 3.55 72.8
1991................... 4.13 42.1
1990................... 4.65 35.7
HARTFORD U.S. GOVERNMENT
MONEY MARKET FUND, INC.
For the Year Ended
December 31, 1995..... 5.38 --
1994................... 3.63 --
1993................... 2.65 --
1992................... 3.19 --
1991................... 5.48 --
1990................... 7.29 --
HARTFORD CAPITAL
APPRECIATION FUND, INC.
For the Year Ended
December 31, 1995..... 0.95 78.6
1994................... 0.40 73.3
1993................... 0.12 91.4
1992................... 0.36 100.3
1991................... 0.92 107.2
1990................... 1.58 51.8
HARTFORD MORTGAGE
SECURITIES FUND, INC.
For the Year Ended
December 31, 1995..... 6.50 489.4
1994................... 6.65 365.7
1993................... 6.49 183.4
1992................... 7.96 277.2
1991................... 8.25 152.2
1990................... 8.42 85.6
HARTFORD INDEX FUND, INC.
For the Year Ended
December 31, 1995..... 2.46 1.5
1994................... 2.50 1.8
1993................... 2.36 0.8
1992................... 2.48 1.2
1991................... 2.89 6.7
1990................... 3.27 25.5
HARTFORD INTERNATIONAL
OPPORTUNITIES FUND,
INC.
For the Year Ended
December 31, 1995..... 1.60 55.6
1994................... 1.42 46.4
1993................... 0.84 31.8
1992................... 1.40 25.1
1991................... 1.17 24.7
1990(1)................ 2.65 (3) 3.0
HARTFORD DIVIDEND AND
GROWTH FUND, INC.
For the Year Ended
December 31, 1995..... 2.91 41.4
From inception, March
8, 1994, through
December 31, 1994..... 3.52 27.8
HARTFORD INTERNATIONAL
ADVISERS FUND, INC.
From inception, March
1, 1995, through
December 31, 1995..... 3.36 (2,3) 47.2
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
119
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF:
HARTFORD BOND FUND, INC., HARTFORD STOCK FUND, INC., HVA MONEY MARKET FUND,
INC.,
HARTFORD ADVISERS FUND, INC., HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.,
HARTFORD CAPITAL APPRECIATION FUND, INC. (FORMERLY HARTFORD AGGRESSIVE GROWTH
FUND, INC.),
HARTFORD MORTGAGE SECURITIES FUND, INC., HARTFORD INDEX FUND, INC.,
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC., HARTFORD DIVIDEND AND GROWTH
FUND, INC.,
AND HARTFORD INTERNATIONAL ADVISERS FUND, INC.
We have audited the accompanying statements of net assets of Hartford Bond
Fund, Inc., Hartford Stock Fund, Inc., HVA Money Market Fund, Inc., Hartford
Advisers Fund, Inc., Hartford U.S. Government Money Market Fund, Inc., Hartford
Capital Appreciation Fund, Inc. (formerly Hartford Aggressive Growth Fund,
Inc.), Hartford Mortgage Securities Fund, Inc., Hartford Index Fund, Inc.,
Hartford International Opportunities Fund, Inc., Hartford Dividend and Growth
Fund, Inc., and Hartford International Advisers Fund, Inc. (all Maryland
corporations) (the Funds) as of December 31, 1995, and the related statements
of operations for the year then ended (except for Hartford International
Advisers Fund Inc., which reflects the period since inception, March 1, 1995,
to December 31, 1995), the statements of changes in net assets for each of the
two years in the period then ended (except for Hartford Dividend and Growth
Fund, Inc., which reflects the year then ended and the period since inception,
March 8, 1994, to December 31, 1994 and Hartford International Advisers Fund,
Inc., which reflects the period since inception, March 1, 1995, to December 31,
1995) and the financial highlights for each of the five years in the period
then ended (except for Hartford Dividend and Growth Fund, Inc., which reflects
the year then ended and from the period since inception, March 8, 1994, to
December 31, 1994, and Hartford International Advisers Fund, Inc., which
reflects the period since inception, March 1, 1995, to December 31, 1995).
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1995,
by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Hartford Bond Fund, Inc., Hartford Stock Fund, Inc., HVA Money Market Fund,
Inc., Hartford Advisers Fund, Inc., Hartford U.S. Government Money Market Fund,
Inc., Hartford Capital Appreciation Fund, Inc. (formerly Hartford Aggressive
Growth Fund, Inc.), Hartford Mortgage Securities Fund, Inc., Hartford Index
Fund, Inc., Hartford International Opportunities Fund, Inc., Hartford Dividend
and Growth Fund, Inc., and Hartford International Advisers Fund, Inc., as of
December 31, 1995, the results of their operations for the year then ended
(except for Hartford International Advisers Fund Inc., which reflects the
period since inception March 1, 1995, to December 31, 1995), the changes in
their net assets for each of the two years in the period then ended (except for
Hartford Dividend and Growth Fund, Inc., which reflects the year then ended and
the period since inception, March 8, 1994, to December 31, 1994, and Hartford
International Advisers Fund, Inc., which reflects the period since inception,
March 1, 1995, to December 31, 1995) and the financial highlights for each of
the five years in the period then ended (except for Hartford Dividend and
Growth Fund, Inc., which reflects the year then ended and the period since
inception, March 8, 1994, to December 31, 1994, and Hartford International
Advisers Fund, Inc., which reflects the period since inception, March 1, 1995,
to December 31, 1995), in conformity with generally accepted accounting
principles.
Hartford, Connecticut
February 19, 1996 Arthur Andersen LLP
120
<PAGE>
INVESTMENT REVIEW - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
DECEMBER 31, 1995
In seeking to provide investors with consistently competitive returns, the
Board of Directors selected different investment managers. In February, NCM
Capital assumed responsibility for managing the equity portion of the Portfolio
and Calvert Asset Management Company, Inc. assumed responsibility for managing
the Portfolio's fixed-income assets. U.S. Trust Company of Boston was the
previous investment manager.
The 12-month period ended December 31, 1995 proved to be an excellent one for
most investors as a cooling economy, tame inflation and falling interest rates
worked together to push stock and bond prices higher. Gross Domestic Product
(GDP) slowed to 2% annualized, based on estimates of fourth quarter data. To
stimulate the economy, the Federal Reserve lowered interest rates twice in the
second half of 1995, reducing its target for the federal funds rate to 5.5% by
year end.
The stock market, as measured by the Standard & Poor's
500-Registered Trademark- Index, had its best year since 1975, rising 34% for
the year. Stocks from the technology and financial sectors were among the
leading issues. Investors sought the safety of large-capitalization stocks
which outperformed small-capitalization stocks by a significant margin.
As yields fell, bonds moved ahead, with the Lehman Aggregate Bond Index
advancing 18.47%. Money market investors paid a high price for security as the
average money market fund returned just over 5% for the entire year.
For the 12-month period ended December 31, 1995, the Balanced Portfolio's total
return of 29.87% was significantly ahead of the Lipper Balanced Funds Average
total return of 25.16%.
The Portfolio's above-average gain was due to its substantial equity
investments in the financial, technology and consumer-staple sectors.
Particularly, our financial service holdings benefited from declining interest
rates and from merger and acquisition activity in the banking area. The
fixed-income portion is continuing to make a significant contribution to the
Portfolio's performance. Near the end of the year, we added callable agency
securities to the Portfolio as they became undervalued by the rest of the
market. Currently, the average maturity of the Portfolio's bond portion is
approximately 7.9 years.
Nineteen ninety-six marks the sixth year of the economic expansion. With a
sluggish economy at hand, we would not be surprised to see the Federal Reserve
cut short-term rates another 50 basis points, possibly as early as the first
quarter. Our forecast for the year calls for continued slow economic growth,
low inflation and low interest rates. Stocks and bonds should continue to move
higher in 1996, albeit at a slower rate than in 1995.
As of this writing, a shareholder meeting was pending to merge the CRI Bond
Portfolio into the CRI Balanced Portfolio. Assuming the merger was approved, we
welcome all CRI Bond Portfolio shareholders.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
<S> <C> <C>
CRI Managed Growth
09/01/86 $10,000
1986 $9,682
1987 $10,674
1988 $12,134
1989 $14,648
1990 $15,260
1991 $18,536
1992 $20,850
1993 $23,222
1994 $22,502
1995 $29,204
Value on 12/31/95:
CRI Managed Growth $29,204
S&P 500 $35,513
90-Day T-Bill $16,681
Lehman Aggregate Bond $22,242
$10,000 Initial Investment Made 09/01/86
Average Annual Total Returns
CRI Managed
Growth
1 Year 29.78%
5 Year 11.16%
Incept. 10.15%
Past performance is not predictive of future performance.
Performance is net of mutual fund expenses and does not reflect charges and expenses of the insurance
contract.
<CAPTION>
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
<S> <C>
S&P 500 90-Day T-Bill
09/01/86 $10,000 $10,000
1986 $9,667 $10,181
1987 $10,175 $10,782
1988 $12,877 $11,521
1989 $16,950 $12,492
1990 $16,423 $13,459
1991 $21,415 $14,196
1992 $23,045 $14,690
1993 $25,363 $15,137
1994 $25,822 $15,789
1995 $35,513 $16,681
Value on 12/31/95:
CRI Managed Growth $29,204
S&P 500 $35,513
90-Day T-Bill $16,681
Lehman Aggregate Bond $22,242
$10,000 Initial Investment Made 09/01/86
Average Annual Total Returns
Lehman
S&P 500 Aggregate Bond
1 Year 37.52% 18.47%
5 Year 16.56% 9.48%
Incept. 20.38% 11.31%
Past performance is not predictive of future performance.
Performance is net of mutual fund expenses and does not reflect charges and expenses of the insurance
contract.
<CAPTION>
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
Lehman Aggregate Bond
09/01/86 $10,000
1986 $10,223
1987 $10,505
1988 $11,334
1989 $12,981
1990 $14,144
1991 $16,407
1992 $17,621
1993 $19,339
1994 $18,774
1995 $22,242
Value on 12/31/95:
CRI Managed Growth $29,204
S&P 500 $35,513
90-Day T-Bill $16,681
Lehman Aggregate Bond $22,242
$10,000 Initial Investment Made 09/01/86
Average Annual Total Returns
90-Day T-Bill
1 Year 5.64%
5 Year 4.39%
Incept. 6.78%
Past performance is not predictive of future performance.
Performance is net of mutual fund expenses and does not reflect charges and expenses of the insurance
contract.
</TABLE>
121
<PAGE>
Acacia Capital Corporation
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Principal Principal
Amount Value Amount Value
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
</TABLE>
<TABLE>
<S> <C> <C>
CORPORATE DEBT -- (8.2%)
BellSouth Savings, 9.19%,
07/01/03.................... $ 395,312 $ 445,374
CIT Group Holdings, Inc.,
5.82%, 05/11/98............. 3,000,000 2,994,132
First Union Corp., 7.50%,
04/15/35 (Tender 07/01/05 @
100)........................ 2,000,000 2,215,020
Puget Power Consv., 6.45%,
04/11/05.................... 1,904,373 1,989,544
United Dominion Reality Trust,
Inc., 8.50%, 09/15/24....... 1,200,000 1,351,200
-----------
Total Corporate Debt (Cost
$8,687,485)................. 8,995,270
-----------
MORTGAGE BACKED SECURITIES --
(7.8%)
Advanta Corp., 5.50%,
03/25/10.................... 2,294,773 2,209,436
Federal Home Loan Mortgage
Corp., 6.00%, 12/15/19...... 1,000,000 999,470
Federal Home Loan Mortgage
Corp., 6.50%, 08/15/21...... 1,000,000 1,020,350
Federal Home Loan Mortgage
Corp., 7.00%, 09/01/25...... 976,288 985,133
Federal National Mortgage
Assn., 6.50%, 12/25/23...... 1,000,000 993,090
Federal National Mortgage
Assn., 7.00%, 08/01/25...... 990,110 998,149
Government National Mortgage
Assn., 6.50%, 12/15/23...... 1,447,099 1,435,797
-----------
Total Mortgage Backed
Securities (Cost
$8,343,292)................. 8,641,425
-----------
MUNICIPAL OBLIGATIONS --
(6.7%)
Gardena, California
Certificates of
Participation VRDN, 6.15%,
07/01/25, LOC: Sumitomo
Trust & Banking Ltd.**...... 1,500,000 1,500,000
Illinois Housing Development
Authority VRDN, 6.027%,
06/01/22, AMBAC Insured
(Tender 01/02/96 @ 100)**... 1,600,000 1,600,000
Illinois Housing Development
Authority, 8.35%,
08/01/26.................... 1,170,000 1,247,922
Long Beach, California Pension
Obligation, 7.14%, 09/01/10,
FSA Insured................. 1,000,000 1,043,420
Sacramento County, California
Pension Funding, 5.98%,
08/15/14, MBIA Insured
(Tender 02/15/96 @ 100)..... 2,000,000 2,000,000
-----------
Total Municipal Obligations
(Cost $7,277,136)........... 7,391,342
-----------
REPURCHASE AGREEMENTS, FOR DEPOSIT AT COST,
COLLATERALIZED BY SECURITIES ISSUED OR GUARANTEED
BY THE U.S. GOVERNMENT -- (2.7%)
Donaldson, Lufkin, Jenerette:
5.85%, dated 12/29/95, due
01/02/96 ($3,055,934,
Resolution Funding Corp.,
Zero Coupon, 01/15/30)...... 3,000,000 3,000,000
-----------
Total Repurchase Agreements
(Cost $3,000,000)........... 3,000,000
-----------
U.S. GOVERNMENT AGENCIES AND
INSTRUMENTALITIES -- (10.6%)
Federal Home Loan Bank, 6.83%,
11/09/00.................... 1,000,000 1,001,300
U.S. GOVERNMENT AGENCIES AND
INSTRUMENTALITIES --
(CONTINUED)
Federal Home Loan Mortgage
Corp., 5.47%, 01/05/96...... $3,000,000 $ 2,998,177
Federal National Mortgage
Assn., 5.49%, 10/02/03...... 1,000,000 994,600
Federal National Mortgage
Assn., 6.85%, 09/12/05...... 2,500,000 2,573,300
Resolution Funding Corp.,
8.625%, 01/15/21............ 1,000,000 1,309,140
Small Business Administration,
8.05%, 06/01/12............. 869,101 925,854
U.S. Department of Veteran
Affairs, 8.00%, 07/15/18.... 1,000,000 1,067,830
WNH Ltd Partnership, 9.40%,
10/01/99.................... 705,000 764,509
-----------
Total U.S. Government Agencies
and Instrumentalities (Cost
$11,303,794)................ 11,634,710
-----------
U.S. TREASURY -- (4.5%)
U.S. Treasury Bonds, 6.875%,
08/15/25.................... 3,500,000 3,949,750
U.S. Treasury Notes, 5.875%,
11/15/05.................... 1,000,000 1,022,650
-----------
Total U.S. Treasury (Cost
$4,935,525)................. 4,972,400
-----------
OTHER DEBT -- (0.9%)
Chickasaw Nation, Oklahoma,
10.00%, 08/01/03............ 1,000,000 1,000,000
-----------
Total Other Debt (Cost
$1,000,000)................. 1,000,000
-----------
<CAPTION>
SHARES
----------
EQUITY SECURITIES -- (57.8%)
<S> <C> <C>
BEVERAGE, HOTEL AND LEISURE --
(1.9%)
Delta Corp.................... 550,000 920,719
Regal Cinemas, Inc.*.......... 39,683 1,180,554
-----------
2,101,273..
-----------
BIOTECHNOLOGY -- (1.1%)
Amgen, Inc.*.................. 21,160 1,256,375
-----------
1,256,375..
-----------
BUSINESS EQUIPMENT AND
SERVICES -- (2.3%)
Hewlett Packard Co............ 16,000 340,000
Xerox Corp.................... 8,850 1,212,450
-----------
2,552,450..
-----------
COMMUNICATIONS -- (2.8%)
Ameritech Corp................ 22,360 1,319,240
DSC Communications Corp.*..... 47,860 1,764,838
-----------
3,084,078..
-----------
COMPUTERS -- (6.0%)
3Com Corp.*................... 26,300 1,226,238
BMC Software, Inc.*........... 23,470 1,003,343
Computer Associates
International, Inc.......... 21,950 1,248,406
Oracle Systems Corp.*......... 23,405 991,787
Seagate Technology*........... 17,700 840,750
Sun Microsystems, Inc.*....... 28,820 1,314,913
-----------
6,625,437..
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
122
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE SHARES VALUE
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
EQUITY SECURITIES -- (CONTINUED)
CONSUMER PRODUCTS -- (1.3%)
Gillette Co................... 26,700 $ 1,391,738
-----------
1,391,738..
-----------
DELIVERY -- (0.6%)
Federal Express Corp.*........ 9,300 687,038
-----------
687,038....
-----------
ELECTRONICS -- (5.5%)
Arrow Electronics, Inc.*...... 22,090 952,631
E M C Corp.*.................. 73,350 1,127,756
Linear Technology Corp........ 17,900 702,575
Micron Technology, Inc........ 19,600 776,634
Philips Electronics N.V....... 28,100 1,008,088
Teradyne, Inc. (rights)*...... 58,280 1,457,000
-----------
6,024,684..
-----------
ENTERTAINMENT -- (1.2%)
Walt Disney Co................ 21,905 1,292,395
-----------
1,292,395..
-----------
FINANCIAL SERVICES -- (9.8%)
Advanta Corp., Class A........ 15,100 577,575
Bank New York, Inc............ 25,800 1,257,750
Bank of Boston Corp.
(rights).................... 32,915 1,522,319
Baybanks, Inc. (rights)....... 15,845 1,556,771
Federal National Mortgage
Assn........................ 12,200 1,514,325
Green Tree Finl Corp.......... 37,830 997,766
Umbono Investment Corp.,
Ltd.*....................... 1,156,540 3,331,140
-----------
10,757,646..
-----------
FOOD SERVICES -- (2.5%)
Kellogg Co.................... 17,150 1,324,837
Sysco Corp. (rights).......... 44,300 1,439,750
-----------
2,764,587..
-----------
HEALTH CARE -- (2.6%)
Healthcare Compare Corp....... 33,650 1,463,775
Johnson & Johnson............. 16,700 1,429,937
-----------
2,893,712..
-----------
INDUSTRIAL PRODUCTS -- (2.8%)
Applied Materials, Inc.*...... 19,700 775,687
Briggs & Stratton Corp........ 15,600 676,650
Sigma Aldrich Corp............ 23,325 1,154,587
Wellman, Inc.................. 20,200 459,550
-----------
3,066,474..
-----------
INSURANCE -- (3.1%)
AFLAC, Inc.................... 17,900 776,413
Allstate Corp................. 31,550 1,297,494
American International Group,
Inc......................... 14,650 1,355,125
-----------
3,429,032..
-----------
MACHINERY -- (1.3%)
AGCO Corp..................... 26,920 1,372,920
-----------
1,372,920..
-----------
MANUFACTURING -- (1.0%)
Dover Corp.................... 31,400 $ 1,157,875
-----------
1,157,875..
-----------
MEDIA AND PUBLISHING -- (1.0%)
Scholastic Corp.*............. 13,665 1,062,454
-----------
1,062,454..
-----------
MEDICAL -- (3.4%)
Becton Dickinson & Co......... 22,700 1,702,500
Boston Scientific Corp.*...... 15,085 739,165
Medtronic, Inc................ 24,100 1,346,587
-----------
3,788,252..
-----------
MERCHANDISING -- (0.9%)
Albertson's, Inc.............. 28,980 952,717
-----------
952,717....
-----------
OIL & GAS -- (0.7%)
Smith International, Inc.
(rights)*................... 33,135 778,673
-----------
778,673....
-----------
PAPER AND PACKAGING -- (0.9%)
Chesapeake Corp. (rights)..... 33,410 989,771
-----------
989,771....
-----------
PHARMACEUTICAL -- (1.4%)
Merck & Co., Inc.............. 24,000 1,578,000
-----------
1,578,000..
-----------
RETAIL -- (1.0%)
Consolidated Stores Corp.*.... 49,550 1,077,713
-----------
1,077,713..
-----------
TELECOMMUNICATIONS -- (2.7%)
Century Tel Enterprises, Inc.
(rights).................... 52,045 1,652,429
Ericsson L M Tel, Co., Class
B, ADR...................... 69,305 1,351,447
-----------
3,003,876..
-----------
Total Equity Securities (Cost
$53,795,240)................ 63,689,170
-----------
Total Investments (99.2%)
(Cost $98,342,472).......... $109,324,317
-----------
-----------
</TABLE>
Notes to Portfolio of Investments:
* Non-income producing.
** Optional tender features give these securities a shorter effective maturity
date.
Percentages shown represent the percentage of the investments to net assets.
Explanation of Guarantees:
AMBAC: American Municipal Bond Assurance Corporation
SA: Financial Security Advisor
MBIA: Municipal Bond Insurance Association
LOC: Letter of Credit
Abbreviations:
VRDN: Variable Rate Demand Notes
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE>
ACACIA CAPITAL CORPORATION
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value, see accompanying
portfolio...................................................... $109,324,317
Cash............................................................. 529,881
Receivable for securities sold................................... 1,118,254
Interest and dividends receivable................................ 619,319
Other assets..................................................... 1,146
------------
Total assets..................................................... 111,592,917
------------
LIABILITIES:
Payable for securities purchased................................. 1,285,855
Payable to Calvert Asset Management Company, Inc................. 65,553
Accrued expenses and other liabilities........................... 4,296
------------
Total liabilities................................................ 1,355,704
------------
NET ASSETS......................................................... $110,237,213
------------
------------
NET ASSETS CONSIST OF:
Par value and paid-in capital applicable to 64,728,020 shares of
common stock outstanding; $1 par value, 70,000,000 shares
authorized..................................................... $ 98,074,699
Undistributed net investment income (loss)....................... 270,941
Accumulated net realized gains (losses) on investments and
foreign currencies............................................. 909,752
Net unrealized appreciation (depreciation) on investments and
assets and liabilities in foreign currencies................... 10,981,821
------------
NET ASSETS......................................................... $110,237,213
------------
------------
NET ASSET VALUE, per share......................................... $1.703
-----
-----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
124
<PAGE>
ACACIA CAPITAL CORPORATION
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income.................................................. $ 2,666,330
Dividend income (net of foreign taxes of $14,460)................ 724,043
-----------
Total investment income...................................... 3,390,373
-----------
Expenses
Investment advisory fee........................................ 610,216
Directors' fees and expenses................................... 11,987
Custodian fees................................................. 24,129
Registration fees.............................................. 6,340
Reports to shareholders........................................ 44,249
Professional fees.............................................. 25,803
Miscellaneous.................................................. 3,565
-----------
Total expenses............................................... 726,289
Fees paid indirectly......................................... (24,129)
-----------
Net expenses................................................... 702,160
-----------
Net investment income.......................................... 2,688,213
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Securities....................................................... 9,151,962
Foreign currencies............................................... (20,556)
-----------
9,131,406
-----------
Change in unrealized appreciation or depreciation on:
Securities....................................................... 10,212,497
Assets and liabilities in foreign currencies..................... (24)
-----------
10,212,473
-----------
Net realized and unrealized gain (loss) on investments........... 19,343,879
-----------
Increase (decrease) in net assets resulting from operations...... $22,032,092
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE>
ACACIA CAPITAL CORPORATION
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
-----------------------------------
1995 1994
-------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations
Net investment income.......................................... $ 2,688,213 $ 2,063,409
Net realized gain (loss) on investments........................ 9,131,406 (604,541)
Change in unrealized appreciation or depreciation.............. 10,212,473 (3,394,657)
-------------- -----------------
Increase (decrease) in net assets resulting from operations.... 22,032,092 (1,935,789)
Distributions to shareholders from:
Net investment income.......................................... (2,379,651) (2,067,159)
Net realized gain on investments............................... (7,467,802) --
-------------- -----------------
Total distributions.......................................... (9,847,453) (2,067,159)
-------------- -----------------
Capital share transactions
Shares sold.................................................... 27,827,859 21,821,042
Reinvestment of distributions.................................. 9,847,448 2,067,159
Shares redeemed................................................ (6,215,413) (7,292,332)
-------------- -----------------
Total capital share transactions............................. 31,459,894 16,595,869
-------------- -----------------
Total increase (decrease) in net assets...................... 43,644,533 12,592,921
NET ASSETS:
Beginning of year................................................ 66,592,680 53,999,759
-------------- -----------------
End of year (including undistributed net investment income (loss)
of $270,941 and $(22), respectively.)........................... $ 110,237,213 $ 66,592,680
-------------- -----------------
-------------- -----------------
CAPITAL SHARE ACTIVITY:
Shares sold...................................................... 16,449,557 14,565,450
Reinvestment of distributions.................................... 5,782,412 1,425,675
Shares redeemed.................................................. (3,747,516) (4,889,932)
-------------- -----------------
Total capital share activity................................. 18,484,453 11,101,193
-------------- -----------------
-------------- -----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<PAGE>
ACACIA CAPITAL CORPORATION
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE A -- SIGNIFICANT ACCOUNTING POLICIES
GENERAL: The Balanced Portfolio (the "Portfolio"), a series of Acacia Capital
Corporation's Calvert Responsibly Invested (CRI) Portfolios, is registered
under the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The Balanced Portfolio was formerly known as
Calvert Responsibly Invested Managed Growth Portfolio/ Socially Responsible
Series. The operations of each series are accounted for separately. The shares
of the Portfolio are sold to affiliated and unaffiliated insurance companies
for allocation to certain of their variable separate accounts.
SECURITY VALUATION: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Unlisted securities and
listed securities for which the last sale price is not available are valued at
the most recent bid price or based on a yield equivalent obtained from the
securities' market maker. Short-term securities maturing within 60 days are
valued at amortized cost which approximates market. Foreign security prices,
furnished by quotation services in the security's local currency, are
translated using the current U.S. dollar exchange rate. Municipal securities
are valued utilizing the average of bid prices or at bid prices based on a
matrix system (which considers such factors as security prices, yields,
maturities and ratings) furnished by dealers through an independent pricing
service. Other securities and assets for which market quotations are not
available or deemed inappropriate are valued in good faith under the direction
of the Board of Directors.
REPURCHASE AGREEMENTS: The Portfolio may enter into repurchase agreements with
recognized financial institutions or registered broker/dealers and, in all
instances, holds underlying securities with a value exceeding the total
repurchase price, including accrued interest.
SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date or,
in the case of dividends on certain foreign securities, as soon as the
Portfolio is informed of the ex-dividend date. Interest income, accretion of
discount and amortization of premium are recorded on an accrual basis.
FOREIGN CURRENCY TRANSACTIONS: The Portfolio's accounting records are
maintained in U. S. dollars. For purposes of valuation of investments, assets
and liabilities on each date of net asset value determination, the current
exchange rate is applied to foreign currencies for translation to U. S.
dollars. Security transactions, income and expenses are converted at the
prevailing rate of exchange on the date of the event. The changes in foreign
exchange rates on securities are included in the net realized and unrealized
gain or loss on securities.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income are
paid annually. Distributions from net realized capital gains, if any, are paid
at least annually. Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles,
accordingly, periodic reclassifications are made within the Portfolio's capital
accounts to reflect income and gains available for distribution under income
tax regulations.
EXPENSE OFFSET ARRANGEMENTS: The Portfolio has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Portfolio's cash on deposit with the bank. Such deposit
arrangement is an alternative to overnight investments.
FEDERAL INCOME TAXES: No provision for federal income or excise tax is required
since the Portfolio intends to continue to qualify as a regulated investment
company under the Internal Revenue Code and to distribute substantially all of
its earnings.
NOTE B -- RELATED PARTY TRANSACTIONS
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory
services and pays the salaries and fees of officers and affiliated Directors of
the Portfolio. For its services, the Advisor receives a monthly fee based on an
annual rate of .70% of the Portfolio's average daily net assets.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the
Portfolio.
127
<PAGE>
ACACIA CAPITAL CORPORATION
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 1995
Each Director who is not affiliated with the Advisor receives a fee of $500 for
each Board meeting attended plus an annual fee of $2,000 for Directors not
serving on other Calvert Fund Boards. Director's fees are allocated to each of
the portfolios served.
NOTE C -- INVESTMENT ACTIVITY
During the year, purchases and sales of investments, other than short-term
securities, were $151,831,684 and $125,197,142, respectively.
The cost of investments owned at December 31, 1995 for federal income tax
purposes was $98,398,834. Net unrealized appreciation aggregated $10,925,483,
of which $12,196,885 related to appreciated securities and $1,271,402 related
to depreciated securities.
NOTE D -- SUBSEQUENT EVENT
The shareholders of CRI Bond Portfolio have been asked to vote (under the
instructions of the contract holders) on February 16, 1996 on a merger into the
Portfolio effected by a tax-free exchange of net assets of CRI Bond,
approximately $3.6 million, for shares of the Portfolio.
128
<PAGE>
ACACIA CAPITAL CORPORATION
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
1995 1994 1993 1992 1991
------------------ ------------ ------------ ------------ ------------
Net asset value, beginning.............. $1.440 $1.537 $1.465 $1.403 $1.249
<S> <C> <C> <C> <C> <C>
--------- ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................. .050 .046 .045 .044 .050
Net realized and unrealized gain
(loss)............................... .380 (.097) .072 .062 .154
--------- ------ ------ ------ ------
Total from investment
operations....................... .430 (.051) .117 .106 .204
--------- ------ ------ ------ ------
DISTRIBUTIONS FROM:
Net investment income................. (.040) (.046) (.045) (.044) (.050)
Net realized gains.................... (.127) -- -- -- --
--------- ------ ------ ------ ------
Total distributions............... (.167) (.046) (.045) (.044) (.050)
--------- ------ ------ ------ ------
Total increase (decrease) in net asset
value................................ .263 (.097) .072 .062 .154
--------- ------ ------ ------ ------
Net asset value, ending................. $1.703 $1.440 $1.537 $1.465 $1.403
--------- ------ ------ ------ ------
--------- ------ ------ ------ ------
Total return............................ 29.87% (3.30)% 8.00% 7.61% 16.40%
--------- ------ ------ ------ ------
--------- ------ ------ ------ ------
Ratios to average net assets:
Net investment income................... 3.08% 3.39% 3.69% 4.05% 4.49%
--------- ------ ------ ------ ------
--------- ------ ------ ------ ------
Total expenses+......................... .83% -- -- -- --
--------- ------ ------ ------ ------
--------- ------ ------ ------ ------
Net expenses............................ .81% .80% .81% .85% .85%
--------- ------ ------ ------ ------
--------- ------ ------ ------ ------
Portfolio turnover...................... 163% 43% 14% 15% 12%
--------- ------ ------ ------ ------
--------- ------ ------ ------ ------
Net assets, ending (in thousands)....... $ 110,237 $ 66,593 $ 54,000 $ 28,471 $ 14,946
-------- ------------ ------------ ------------ ------------
-------- ------------ ------------ ------------ ------------
Number of shares outstanding, ending (in
thousands)............................. 64,728 46,244 35,142 19,433 10,656
-------- ------------ ------------ ------------ ------------
-------- ------------ ------------ ------------ ------------
<FN>
+ Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
</TABLE>
129
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS OF ACACIA CAPITAL CORPORATION AND SHAREHOLDERS
OF THE CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO:
We have audited the accompanying statement of assets and liabilities of Calvert
Responsibly Invested Balanced Portfolio (one of the portfolios comprising the
Acacia Capital Corporation), including the portfolio of investments, as of
December 31, 1995, and the related statement of operations for the year then
ended, and statement of changes in net assets and financial highlights for each
of the two years then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for each of the preceding years
were audited by other auditors whose report dated January 31, 1994 expressed an
unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. 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
Calvert Responsibly Invested Balanced Portfolio as of December 31, 1995, the
results of its operations for the year then ended, and the changes in its net
assets and financial highlights for each of the two years in the period then
ended, in conformity with generally accepted accounting principles.
Baltimore, Maryland
January 26, 1996 Coopers & Lybrand L.L.P.
130
<PAGE>
DIRECTORS OF THE FUNDS:
JOSEPH A. BIERNAT - Director
JOSEPH H. GAREAU - Director/President
GOVERNOR WILLIAM A. O'NEILL - Director
MILLARD H. PRYOR, JR. - Director
LOWNDES A. SMITH - Director/Chairman
JOHN K. SPRINGER - Director
WINIFRED E. COLEMAN - Director
CUSTODIAN:
Chase Manahattan Bank
Brooklyn, NY 11245
INVESTMENT ADVISER FOR THE MUTUAL FUNDS:
The Hartford Investment Management Company (HIMCO)
Hartford Plaza
Hartford, CT 06115
SUB-ADVISER FOR THE HARTFORD STOCK FUND, INC., HARTFORD ADVISERS FUND, INC.,
HARTFORD CAPITAL APPRECIATION FUND, INC., HARTFORD INTERNATIONAL
OPPORTUNITIES
FUND, INC., HARTFORD DIVIDEND & GROWTH FUND, INC., HARTFORD INTERNATIONAL
ADVISERS FUND INC.:
Wellington Management Company
75 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER FOR THE SEPARATE ACCOUNTS:
Hartford Equity Sales Company, Inc. (HESCO)
Hartford Plaza
Hartford, CT 06115
Hartford Securities Distribution Company, Inc. (HSD)
Hartford Plaza
Hartford, CT 06115
INDEPENDENT PUBLIC ACCOUNTANTS:
Arthur Andersen LLP
One Financial Plaza
Hartford, CT 06103
<PAGE>
- --------------------------------------------------------------------------------
HARTFORD LIFE INSURANCE COMPANIES
BULK RATE
P.O. BOX 2999
U.S. POSTAGE
HARTFORD, CT 06104-2999
PAID
PERMIT NO. 54201
BOSTON, MA
HV-1892-19 Printed in U.S.A.
